Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 20, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Registrant Name | 'LINCOLN NATIONAL CORP | ' | ' |
Entity Central Index Key | '0000059558 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 263,700,332 | ' |
Entity Public Float | ' | ' | $9.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale securities, at fair value: | ' | ' |
Fixed maturity securities (amortized cost: 2013 - $76,353; 2012 - $72,718) | $80,078 | $82,036 |
VIEs' fixed maturity securities (amortized cost: 2013 - $682; 2012 - $677) | 697 | 708 |
Equity securities (cost: 2013 - $182; 2012 - $137) | 201 | 157 |
Trading Securities | 2,282 | 2,554 |
Mortgage loans on real estate | 7,210 | 7,029 |
Real estate | 47 | 65 |
Policy loans | 2,677 | 2,766 |
Derivative investments | 881 | 2,652 |
Other investments | 1,218 | 1,098 |
Total investments | 95,291 | 99,065 |
Cash and invested cash | 2,364 | 4,230 |
Deferred acquisition costs and value of business acquired | 8,886 | 6,667 |
Premiums and fees receivable | 420 | 380 |
Accrued investment income | 1,029 | 1,015 |
Reinsurance recoverables | 6,041 | 6,449 |
Funds withheld reinsurance assets | 776 | 837 |
Goodwill | 2,273 | 2,273 |
Other assets | 2,730 | 2,580 |
Separate account assets | 117,135 | 95,373 |
Total assets | 236,945 | 218,869 |
Liabilities | ' | ' |
Future contract benefits | 17,251 | 19,780 |
Other contract holder funds | 74,548 | 72,218 |
Short-term debt | 501 | 200 |
Long-term debt | 5,320 | 5,439 |
Reinsurance related embedded derivatives | 108 | 215 |
Funds withheld reinsurance liabilities | 867 | 940 |
Deferred gain on business sold through reinsurance | 245 | 319 |
Payables for collateral on investments | 3,238 | 4,181 |
Variable interest entities' liabilities | 27 | 128 |
Other liabilities | 4,253 | 5,103 |
Separate account liabilities | 117,135 | 95,373 |
Total liabilities | 223,493 | 203,896 |
Contingencies and Commitments | ' | ' |
Stockholders Equity | ' | ' |
Preferred stock - 10,000,000 shares authorized; Series A - 9,532 shares issued and outstanding as of December 31, 2012 | 0 | 0 |
Common stock - 800,000,000 shares authorized; 262,896,701 and 271,402,586 shares issued and outstanding as of December 31, 2013, and December 31, 2012, respectively | 6,876 | 7,121 |
Retained earnings | 5,013 | 4,044 |
Accumulated other comprehensive income (loss) | 1,563 | 3,808 |
Total stockholders' equity | 13,452 | 14,973 |
Total liabilities and stockholders' equity | $236,945 | $218,869 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | Series A Preferred Stock [Member] | ||
Available-for-sale securities, at fair value: | ' | ' | ' |
Fixed maturity securities (amortized cost) | $76,353 | $72,718 | ' |
Variable interest entities' fixed maturity securities (amortized cost) | 682 | 677 | ' |
Equity securities (cost) | $182 | $137 | ' |
Stockholders Equity | ' | ' | ' |
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 | ' |
Series A preferred stock - shares issued (in shares) | ' | ' | 9,532 |
Series A preferred stock - shares outstanding (in shares) | ' | ' | 9,532 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 | ' |
Common stock - shares issued (in shares) | 262,896,701 | 271,402,586 | ' |
Common stock - shares outstanding (in shares) | 262,896,701 | 271,402,586 | ' |
Consolidated_Statements_Of_Com
Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Insurance premiums | $2,687 | $2,462 | $2,294 |
Fee income | 4,069 | 3,736 | 3,437 |
Net investment income | 4,754 | 4,698 | 4,652 |
Realized gain (loss): | ' | ' | ' |
Total other-than-temporary impairment losses on securities | -80 | -259 | -169 |
Net portion of OTTI recognized in OCI, pre-tax | 10 | 106 | 45 |
Net other-than-temporary impairment losses on securities recognized in earnings | -70 | -153 | -124 |
Realized gain (loss), excluding other-than-temporary impairment losses on securities | -65 | 227 | -170 |
Total realized gain (loss) | -135 | 74 | -294 |
Amortization of deferred gain on business sold through reinsurance | 74 | 74 | 75 |
Other revenues | 520 | 491 | 477 |
Total revenues | 11,969 | 11,535 | 10,641 |
Expenses | ' | ' | ' |
Interest credited | 2,510 | 2,470 | 2,488 |
Benefits | 3,862 | 3,541 | 3,345 |
Commissions and other expenses | 3,701 | 3,683 | 3,264 |
Interest and debt expense | 265 | 273 | 294 |
Impairment of intangibles | ' | ' | 747 |
Total expenses | 10,338 | 9,967 | 10,138 |
Income (loss) from continuing operations before taxes | 1,631 | 1,568 | 503 |
Federal income tax expense (benefit) | 387 | 282 | 274 |
Income (loss) from continuing operations | 1,244 | 1,286 | 229 |
Income (loss) from discontinued operations, net of federal income taxes | ' | 27 | -8 |
Net income (loss) | 1,244 | 1,313 | 221 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Unrealized gain (loss) on available-for-sale securities | -2,457 | 1,119 | 1,771 |
Unrealized other-than-temporary impairment on available-for-sale securities | 29 | 2 | 25 |
Unrealized gain (loss) on derivative instruments | 93 | 44 | 130 |
Foreign currency translation adjustment | -1 | -5 | ' |
Funded status of employee benefit plans | 91 | -32 | -97 |
Total other comprehensive income (loss), net of tax | -2,245 | 1,128 | 1,829 |
Comprehensive income (loss) | ($1,001) | $2,441 | $2,050 |
Earnings (Loss) Per Common Share - Basic | ' | ' | ' |
Income (loss) from continuing operations (in dollars per share) | $4.68 | $4.58 | $0.75 |
Income (loss) from discontinued operations (in dollars per share) | ' | $0.10 | ($0.03) |
Net income (loss) (in dollars per share) | $4.68 | $4.68 | $0.72 |
Earnings (Loss) Per Common Share - Diluted | ' | ' | ' |
Income (loss) from continuing operations (in dollars per share) | $4.52 | $4.47 | $0.72 |
Income (loss) from discontinued operations (in dollars per share) | ' | $0.09 | ($0.03) |
Net income (loss) (in dollars per share) | $4.52 | $4.56 | $0.69 |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Common Stock | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Millions | ||||
Balance as of beginning-of-year at Dec. 31, 2010 | $8,124 | $2,711 | $851 | ' |
Stock compensation/issued for benefit plans | 17 | ' | ' | ' |
Effect of amendment to deferred compensation plans | -6 | ' | ' | ' |
Retirement of common stock/cancellation of shares | -545 | -30 | ' | ' |
Net income (loss) | ' | 221 | ' | 221 |
Dividends declared: Common (2013 - $0.520; 2012 - $0.360; 2011 - $0.230) | ' | -71 | ' | ' |
Other comprehensive income (loss), net of tax | ' | ' | 1,829 | 1,829 |
Balance as of end-of-year at Dec. 31, 2011 | 7,590 | 2,831 | 2,680 | 13,101 |
Stock compensation/issued for benefit plans | 23 | ' | ' | ' |
Retirement of common stock/cancellation of shares | -492 | ' | ' | ' |
Net income (loss) | ' | 1,313 | ' | 1,313 |
Dividends declared: Common (2013 - $0.520; 2012 - $0.360; 2011 - $0.230) | ' | -100 | ' | ' |
Other comprehensive income (loss), net of tax | ' | ' | 1,128 | 1,128 |
Balance as of end-of-year at Dec. 31, 2012 | 7,121 | 4,044 | 3,808 | 14,973 |
Stock compensation/issued for benefit plans | 69 | ' | ' | ' |
Retirement of common stock/cancellation of shares | -314 | -136 | ' | ' |
Net income (loss) | ' | 1,244 | ' | 1,244 |
Dividends declared: Common (2013 - $0.520; 2012 - $0.360; 2011 - $0.230) | ' | -139 | ' | ' |
Other comprehensive income (loss), net of tax | ' | ' | -2,245 | -2,245 |
Balance as of end-of-year at Dec. 31, 2013 | $6,876 | $5,013 | $1,563 | $13,452 |
Consolidated_Statements_Of_Sto1
Consolidated Statements Of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Common dividends declared per share | $0.52 | $0.36 | $0.23 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | $1,244 | $1,313 | $221 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Deferred acquisition costs, value of business acquired, deferred sales inducements and deferred front-end loads deferrals and interest, net of amortization | -529 | -219 | -152 |
Trading securities purchases, sales and maturities, net | 151 | 222 | 88 |
Change in premiums and fees receivable | -40 | 28 | -73 |
Change in accrued investment income | -14 | -34 | -48 |
Change in future contract benefits and other contract holder funds | -634 | -131 | 125 |
Change in reinsurance related assets and liabilities | 300 | 9 | -66 |
Change in federal income tax accruals | 377 | 192 | 318 |
Realized (gain) loss | 135 | -74 | 294 |
(Gain) loss on early extinguishment of debt | ' | 5 | 8 |
(Income) Loss attributable to equity method investments | -86 | -125 | -90 |
Amortization of deferred gain on business sold through reinsurance | -74 | -74 | -75 |
Impairment of intangibles | ' | ' | 747 |
(Gain) loss on disposal of discontinued operations | ' | 1 | 3 |
Other | -31 | 156 | -24 |
Net cash provided by (used in) operating activities | 799 | 1,269 | 1,276 |
Cash Flows from Investing Activities | ' | ' | ' |
Purchases of available-for-sale securities | -10,880 | -11,161 | -10,702 |
Sales of available-for-sale securities | 975 | 1,134 | 1,497 |
Maturities of available-for-sale securities | 6,171 | 5,974 | 5,324 |
Purchases of other investments | -2,543 | -2,345 | -3,282 |
Sales or maturities of other investments | 2,610 | 2,276 | 3,094 |
Increase (decrease) in payables for collateral on investments | -943 | 448 | 2,074 |
Other | -100 | -183 | -130 |
Net cash provided by (used in) investing activities | -4,710 | -3,857 | -2,125 |
Cash Flows from Financing Activities | ' | ' | ' |
Payment of long-term debt, including current maturities | ' | -320 | -525 |
Issuance of long-term debt, net of issuance costs | 393 | 300 | 298 |
Increase (decrease) in commercial paper, net | ' | ' | -100 |
Deposits of fixed account values, including the fixed portion of variable | 10,492 | 10,694 | 10,953 |
Withdrawals of fixed account values, including the fixed portion of variable | -5,296 | -5,691 | -5,050 |
Transfers to and from separate accounts, net | -3,001 | -2,091 | -2,325 |
Common stock issued for benefit plans and excess tax benefits | 35 | -1 | 3 |
Repurchase of common stock | -450 | -492 | -575 |
Dividends paid to common and preferred stockholders | -128 | -91 | -61 |
Net cash provided by (used in) financing activities | 2,045 | 2,308 | 2,618 |
Net increase (decrease) in cash and invested cash, including discontinued operations | -1,866 | -280 | 1,769 |
Cash and invested cash as of beginning-of-year | 4,230 | 4,510 | 2,741 |
Cash and invested cash as of end-of-year | $2,364 | $4,230 | $4,510 |
Nature_Of_Operations_And_Basis
Nature Of Operations And Basis Of Presentation | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Nature Of Operations And Basis Of Presentation [Abstract] | ' | |||
Nature Of Operations And Basis Of Presentation | ' | |||
1. Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies | ||||
Nature of Operations | ||||
Lincoln National Corporation and its majority-owned subsidiaries (“LNC” or the “Company,” which also may be referred to as “we,” “our” or “us”) operate multiple insurance businesses through four business segments. See Note 22 for additional details. The collective group of businesses uses “Lincoln Financial Group” as its marketing identity. Through our business segments, we sell a wide range of wealth protection, accumulation and retirement income products and solutions. These products include fixed and indexed annuities, variable annuities, universal life insurance (“UL”), variable universal life insurance (“VUL”), linked-benefit UL, indexed UL, term life insurance, employer-sponsored retirement plans and services, and group life, disability and dental. | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements are prepared in accordance with United States of America generally accepted accounting principles (“GAAP”). Certain GAAP policies, which significantly affect the determination of financial condition, results of operations and cash flows, are summarized below. | ||||
Summary of Significant Accounting Policies | ||||
Principles of Consolidation | ||||
The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. Entities in which we do not have a controlling financial interest and do not exercise significant management influence over the operating and financing decisions are reported using the equity method. All material inter-company accounts and transactions have been eliminated in consolidation. | ||||
Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. | ||||
Accounting Estimates and Assumptions | ||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, asset valuation allowances, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”), pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. | ||||
Business Combinations | ||||
We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. | ||||
Fair Value Measurement | ||||
Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk, which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), | ||||
we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: | ||||
· | Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; | |||
· | Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and | |||
· | Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. | |||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. | ||||
When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. | ||||
Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs | ||||
Securities classified as available-for-sale (“AFS”) consist of fixed maturity and equity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI, future contract benefits, other contract holder funds and deferred income taxes. | ||||
We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. | ||||
The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. | ||||
The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: | ||||
· | Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance EngineTM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. | |||
· | Mortgage- and asset-backed securities – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). | |||
· | State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. | |||
· | Hybrid and redeemable preferred and equity securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred and equity securities. | |||
In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. | ||||
AFS Securities – Evaluation for Recovery of Amortized Cost | ||||
We regularly review our AFS securities for declines in fair value that we determine to be other-than-temporary. For an equity security, if we do not have the ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, we conclude that an other-than-temporary impairment (“OTTI”) has occurred and the amortized cost of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). When assessing our ability and intent to hold the equity security to recovery, we consider, among other things, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, a fundamental analysis of the liquidity, and business prospects and overall financial condition of the issuer. | ||||
For our fixed maturity AFS securities (also referred to as “debt securities”), we generally consider the following to determine whether our unrealized losses are other-than-temporarily impaired: | ||||
· | The estimated range and average period until recovery; | |||
· | The estimated range and average holding period to maturity; | |||
· | Remaining payment terms of the security; | |||
· | Current delinquencies and nonperforming assets of underlying collateral; | |||
· | Expected future default rates; | |||
· | Collateral value by vintage, geographic region, industry concentration or property type; | |||
· | Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and | |||
· | Contractual and regulatory cash obligations. | |||
For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. | ||||
When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, which we use to determine the amount of a credit loss. | ||||
Our conclusion that it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis, the estimated future cash flows are equal to or greater than the amortized cost basis of the debt securities, or we have the ability to hold the equity AFS securities for a period of time sufficient for recovery is based upon our asset-liability management process. Management considers the following as part of the evaluation: | ||||
· | The current economic environment and market conditions; | |||
· | Our business strategy and current business plans; | |||
· | The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; | |||
· | Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; | |||
· | The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; | |||
· | The capital risk limits approved by management; and | |||
· | Our current financial condition and liquidity demands. | |||
To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: | ||||
· | Historical and implied volatility of the security; | |||
· | Length of time and extent to which the fair value has been less than amortized cost; | |||
· | Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; | |||
· | Failure, if any, of the issuer of the security to make scheduled payments; and | |||
· | Recoveries or additional declines in fair value subsequent to the balance sheet date. | |||
In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. | ||||
To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: | ||||
· | Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; | |||
· | Fundamentals of the industry in which the issuer operates; | |||
· | Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; | |||
· | Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); | |||
· | Expectations regarding defaults and recovery rates; | |||
· | Changes to the rating of the security by a rating agency; and | |||
· | Additional market information (e.g., if there has been a replacement of the corporate debt security). | |||
Each quarter we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: | ||||
· | Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; | |||
· | Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; | |||
· | Susceptibility to fair value fluctuations for changes in the interest rate environment; | |||
· | Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; | |||
· | Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; | |||
· | Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and | |||
· | Susceptibility to variability of prepayments. | |||
When evaluating MBS and mortgage-related asset-backed securities (“ABS”), we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include type of underlying collateral (e.g., prime, Alt-A or subprime), geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. | ||||
Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. | ||||
We further monitor the cash flows of all of our AFS securities backed by pools on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. | ||||
Trading Securities | ||||
Trading securities consist of fixed maturity and equity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements, are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. | ||||
Alternative Investments | ||||
Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our venture capital, real estate and oil and gas portfolios are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. | ||||
Payables for Collateral on Investments | ||||
When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. | ||||
Mortgage Loans on Real Estate | ||||
Mortgage loans on real estate are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. | ||||
Our commercial loan portfolio is comprised of long-term loans secured by existing commercial real estate. As such, it does not exhibit risk characteristics unique to mezzanine, construction, residential, agricultural, land or other types of real estate loans. We believe all of the loans in our portfolio share three primary risks: borrower creditworthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods for monitoring and assessing credit risk are consistent for our entire portfolio. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses of each specific loan. Our periodic evaluation of the adequacy of the allowance for losses is based on our past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase loss reserves for a specific loan based upon this analysis. Our process for determining past due or delinquency status begins when a payment date is missed, at which time the borrower is contacted. After the grace period expiration that may last up to 10 days, we send a default notice. The default notice generally provides a short time period to cure the default. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectibility of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for losses, and subsequent recoveries, if any, are credited to the allowance for losses. All mortgage loans that are impaired have an established allowance for credit losses. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
We measure and assess the credit quality of our mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. | ||||
Policy Loans | ||||
Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. | ||||
Real Estate | ||||
Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances for losses are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. | ||||
Derivative Instruments | ||||
We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. We categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. | ||||
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated OCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. | ||||
We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value recognized in net income during the period of change. | ||||
We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. | ||||
Cash and Invested Cash | ||||
Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less. | ||||
DAC, VOBA, DSI and DFEL | ||||
Acquisition costs directly related to successful contract acquisitions or renewals of UL insurance, VUL insurance, traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. | ||||
Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. | ||||
Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 13 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated favorable lapse experience. | ||||
Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that ranges from 7 to 77 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities. | ||||
We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. | ||||
The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as AFS and certain derivatives and embedded derivatives. Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). | ||||
During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. These assumptions include investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. | ||||
DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. | ||||
Reinsurance | ||||
Our insurance companies enter into reinsurance agreements with other companies in the normal course of business. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to other insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, because there is a right of offset. All other reinsurance agreements are reported on a gross basis on our Consolidated Balance Sheets as an asset for amounts recoverable from reinsurers or as a component of other liabilities for amounts, such as premiums, owed to the reinsurers, with the exception of Modco agreements for which the right of offset also exists. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. | ||||
Goodwill | ||||
We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of value impairment, with consideration given to financial performance and other relevant factors. We perform a two-step test in our evaluation of the carrying value of goodwill for each of our reporting units, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. The results of one test on one reporting unit cannot subsidize the results of another reporting unit. In Step 1 of the evaluation, the fair value of each reporting unit is determined and compared to the carrying value of the reporting unit. If the fair value is greater than the carrying value, then the carrying value of the reporting unit is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined for the reporting unit. The reporting unit’s fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the reporting unit were acquired in a business combination as of the date of the impairment test. If the implied fair value of the reporting unit’s goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Other Assets and Other Liabilities | ||||
Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issue costs and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds and other accrued expenses. | ||||
The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Federal Communications Commission (“FCC”) licenses acquired through business combinations are not amortized. | ||||
Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | ||||
Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. | ||||
Separate Account Assets and Liabilities | ||||
We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. | ||||
We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80 minus any payments or withdrawals following the contract anniversary (“anniversary contract value”). | ||||
As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each guaranteed living benefit (“GLB”) feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 43 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include assumptions for the capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, benefit utilization, mortality, etc.), risk margins, administrative expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. | ||||
Future Contract Benefits and Other Contract Holder Funds | ||||
Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well the carrying value of DFEL discussed above. | ||||
The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that accrue to the benefit of the contract holders, excluding surrender charges. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25% to 7.75% depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.50% to 13.50%. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. | ||||
The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported as benefit ratio unlocking. | ||||
With respect to our future contract benefits and other contract holder funds, we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. | ||||
The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2013 and 2012, participating policies comprised approximately 1% of the face amount of insurance in force, and dividend expenses were $62 million, $71 million and $79 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. | ||||
Future contract benefits on our Consolidated Balance Sheets include GLB features and remaining guaranteed interest and similar contracts that are carried at fair value, which represents approximate exit value including an estimate for our non-performance risk (“NPR”). Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, we assign benefits to the embedded derivative or insurance based on the life-contingent nature of the benefits. We classify these items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” | ||||
The fair value of our indexed annuity contracts is based on their approximate surrender values. | ||||
Borrowed Funds | ||||
LNC’s short-term borrowings are defined as borrowings with contractual or expected maturities of one year or less. Long-term borrowings have contractual or expected maturities greater than one year. | ||||
Deferred Gain on Business Sold Through Reinsurance | ||||
Our reinsurance operations were acquired by Swiss Re Life & Health America, Inc. (“Swiss Re”) in December 2001 through a series of indemnity reinsurance transactions. We are recognizing the gain related to these transactions at the rate that earnings on the reinsured business are expected to emerge, over a period of 15 years from the date of sale. | ||||
Commitments and Contingencies | ||||
Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. | ||||
Fee Income | ||||
Fee income for investment and interest-sensitive life insurance contracts consist of asset-based fees, cost of insurance charges, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. | ||||
In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. | ||||
For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. | ||||
Insurance Premiums | ||||
Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group non-medical insurance products consist primarily of term life, disability and dental. | ||||
Net Investment Income | ||||
Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. | ||||
For CLOs and MBS, included in the trading and AFS fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Realized Gain (Loss) | ||||
Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for other-than-temporary impairments of investments, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. | ||||
Other Revenues | ||||
Other revenues consists primarily of fees attributable to broker-dealer services recorded as earned at the time of sale, changes in the market value of our seed capital investments and communications sales recognized as earned, net of agency and representative commissions. | ||||
Interest Credited | ||||
Interest credited includes interest credited to contract holder account balances. Interest crediting rates associated with funds invested in the general account of LNC’s insurance subsidiaries during 2011 through 2013 ranged from 1% to 10%. | ||||
Benefits | ||||
Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits, and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. | ||||
Pension and Other Postretirement Benefit Plans | ||||
Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. | ||||
Stock-Based Compensation | ||||
In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date our stock awards are approved, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholders’ equity. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Interest and Debt Expense | ||||
Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts, and costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. | ||||
Income Taxes | ||||
We file a U.S. consolidated income tax return that includes all of our eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside of the U.S. are taxed, and income tax expense is recorded based on applicable foreign statutes. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. | ||||
Discontinued Operations | ||||
The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in income (loss) from discontinued operations, net of federal income taxes, for all periods presented if the operations and cash flows of the component have been or will be eliminated from our ongoing operations as a result of the disposal transaction and we will not have any significant continuing involvement in the operations. | ||||
Foreign Currency Translation | ||||
The balance sheet accounts and income statement items of foreign subsidiaries, reported in functional currencies other than the U.S. dollar are translated at the current and average exchange rates for the year, respectively. Resulting translation adjustments and other translation adjustments for foreign currency transactions that affect cash flows are reported in accumulated OCI, a component of stockholders’ equity. | ||||
Earnings Per Share | ||||
Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of dilutive convertible preferred securities, nonvested stock, stock options, performance share units and warrants outstanding during the year. | ||||
Our deferred compensation plans allow participants the option to diversify from LNC stock to other investment alternatives. When calculating our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude these shares from our calculation, unless the effect of settlement in shares would be more dilutive to our diluted EPS calculation. | ||||
For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares because using diluted shares would be anti-dilutive to the calculation. | ||||
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Standards [Abstract] | ' |
New Accounting Standards | ' |
2. New Accounting Standards | |
Adoption of New Accounting Standards | |
Balance Sheet Topic | |
In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”) to address certain comparability issues between financial statements prepared in accordance with GAAP and those prepared in accordance with International Financial Reporting Standards (“IFRS”). In January 2013, the FASB issued ASU No. 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities” (“ASU 2013-01”), to provide information regarding the scope of the disclosures required by ASU 2011-11 to the financial instruments and derivatives reported in an entity’s financial statements. ASU 2011-11 requires an entity to provide enhanced disclosures about certain financial instruments and derivative instruments, as defined in ASU 2013-01, to enable users to understand the effects of offsetting in the financial statements as well as the effects of master netting arrangements on an entity’s financial condition. We adopted the disclosure requirements of ASU 2011-11, after considering the scope clarification in ASU 2013-01, as of January 1, 2013, and have included the required disclosures for all comparative periods in Note 6. | |
Comprehensive Income Topic | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”), which requires enhanced reporting of such amounts either on the face of the financial statements or in the notes to the financial statements. Under ASU 2013-02, the type of reclassification out of AOCI, as defined under current GAAP, will dictate whether the disclosure must provide the effect of the reclassification on the respective financial statement line items or whether cross-referencing to other disclosures that provide additional detail about the reclassification will be required. We adopted the disclosure requirements in ASU 2013-02 as of January 1, 2013, and have included the required disclosure in Note 14. | |
Derivatives and Hedging Topic | |
In July 2013, the FASB issued ASU No. 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes” (“ASU 2013-10”), which permits the Fed Funds Effective Swap Rate to be used as a benchmark interest rate for hedge accounting purposes under the FASB ASC in addition to interest rates on direct Treasury obligations of the U.S. government and the LIBOR swap rate. We adopted the amendments in ASU 2013-10 prospectively for qualifying new or designated hedging relationships entered into, on, or after July 17, 2013. The adoption of ASU 2013-10 did not have an effect on our consolidated financial condition and results of operation. | |
Future Adoption of New Accounting Standards | |
Financial Services – Investment Companies Topic | |
In June 2013, the FASB issued ASU No. 2013-08, “Amendments to the Scope, Measurement, and Disclosure Requirements” (“ASU 2013-08”), which provides comprehensive accounting guidance for assessing whether an entity is an investment company. ASU 2013-08 requires an assessment of all the characteristics of an investment company through the use of a new two-tiered approach, which considers the entity’s purpose and design to determine whether it is an investment company. As a result of applying the new criteria in ASU 2013-08, an entity once considered an investment company may no longer meet the new criteria to be classified as such, and conversely, an entity not classified as an investment company under current GAAP may satisfy the criteria to be classified as such upon the adoption of ASU 2013-08. If an entity is no longer classified as an investment company, it must discontinue the application of investment company accounting guidance and present the change in status through a cumulative effect adjustment to the beginning balance of retained earnings in the period of adoption. If an entity becomes classified as an investment company, ASU 2013-08 should be applied prospectively with the effect of adoption recognized as an adjustment to opening net assets for the period of adoption. The amendments in ASU 2013-08 are effective for interim and annual reporting periods in fiscal years beginning after December 15, 2013, with early application prohibited. We will adopt the requirements in ASU 2013-08 effective January 1, 2014, and are currently evaluating the impact of adoption on our consolidated financial condition and results of operations. | |
Income Taxes Topic | |
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” (“ASU 2013-11”) in order to explicitly define the financial statement presentation requirements in GAAP. ASU 2013-11 provides guidance on the presentation of unrecognized tax benefits when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The amendments in the ASU are effective prospectively for interim and annual reporting periods in fiscal years beginning after December 15, 2013, with early application permitted. We will adopt the requirements of ASU 2013-11 effective January 1, 2014, and will include the new disclosure requirements in the notes to our consolidated financial statements. | |
Investments – Equity Method and Joint Ventures | |
In January 2014, the FASB issued ASU No. 2014-01, “Accounting for Investments in Qualified Affordable Housing Projects” (“ASU 2014-01”) in response to stakeholders’ feedback that the presence of certain conditions in order to apply the effective yield method to investments in qualified affordable housing projects may be overly restrictive and could result in certain investments being accounted for under a method of accounting that may not fairly represent the economics of the investments. ASU 2014-01 allows entities to make an accounting policy election to account for investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The conditions in ASU 2014-01 have been modified from the current GAAP requirements allowing for the application of the effective yield method, to enable more entities to make use of the proportional amortization method. The decision to apply the proportional amortization method should be applied consistently to all investments in qualified affordable housing projects rather than on an individual investment basis. The amendments in this ASU are to be applied retrospectively for interim and annual reporting periods beginning after December 15, 2014; however, a reporting entity that uses the effective yield method to account for investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. We will adopt the requirements of ASU 2014-01 effective January 1, 2015, and are currently evaluating the impact of adoption on our consolidated financial condition and results of operations. | |
Other Expenses Topic | |
In July 2011, the FASB issued ASU No. 2011-06, “Fees Paid to the Federal Government by Health Insurers” (“ASU 2011-06”) in order to address the question of how health insurers should recognize and classify fees mandated by the Patient Protection and Affordable Care Act as amended by the Health Care and Education Reconciliation Act. The annual fee is imposed on health insurers for each calendar year beginning on or after January 1, 2014, and is payable no later than September 30 of the applicable year. If a fee payment is required in the applicable year, ASU 2011-06 requires the health insurer to record the liability in full with a corresponding deferred cost that is amortized to expense using a straight-line method of allocation over the applicable year. The ASU indicates that the annual fee does not meet the definition of an acquisition cost in accordance with Topic 944 of the FASB ASC. The amendments in ASU 2011-06 are effective for calendar years beginning after December 31, 2013, when the fee initially becomes effective. We will adopt the requirements of ASU 2011-06 effective January 1, 2014. The amendments will not have a material effect on our consolidated financial condition and results of operations. | |
Dispositions
Dispositions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Dispositions [Abstract] | ' | ||||||||
Dispositions | ' | ||||||||
3. Dispositions | |||||||||
Newton County Loan & Savings, FSB (“NCLS”) | |||||||||
On November 30, 2011, we completed the liquidation of NCLS, a federally regulated savings bank located in Indiana, which did not have a material effect on our consolidated financial condition or results of operations. | |||||||||
Discontinued Investment Management Operations | |||||||||
On January 4, 2010, we closed on the stock sale of our subsidiary Delaware Management Holdings, Inc. (“Delaware”), which provided investment products and services to individuals and institutions, to Macquarie Bank Limited. | |||||||||
In addition, certain of our subsidiaries, including The Lincoln National Life Insurance Company (“LNL”), our primary insurance subsidiary, entered into investment advisory agreements with Delaware, pursuant to which Delaware will continue to manage the majority of the general account insurance assets of the subsidiaries. The investment advisory agreements have 10-year terms, and we may terminate them without cause, subject to a purchase price adjustment of up to $50 million, the amount of which is dependent on the timing of any termination and which agreements are terminated. The amount of the potential adjustment will decline on a pro rata basis over the 10-year term of the advisory agreements. | |||||||||
We reclassified the results of operations of Delaware into income (loss) from discontinued operations, net of federal income taxes, for all periods presented on our Consolidated Statements of Comprehensive Income (Loss), and selected amounts (in millions) were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Disposal | |||||||||
Gain (loss) on disposal, before federal income taxes | $ | - | $ | -1 | $ | -3 | |||
Federal income tax expense (benefit) | - | -28 | 5 | ||||||
Gain (loss) on disposal | - | 27 | -8 | ||||||
Income (loss) from discontinued operations | $ | - | $ | 27 | $ | -8 | |||
The income from discontinued operations for the year ended December 31, 2012, related to the release of reserves associated with prior tax years that were closed out during the year and a purchase price adjustment associated with the termination of a portion of the investment advisory agreement with Delaware. The loss from discontinued operations for the year ended December 31, 2011, related to an unfavorable tax return true-up from the prior year. | |||||||||
Variable_Interest_Entities_VIE
Variable Interest Entities ("VIE's") | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||||||||||||||
Variable Interest Entities ("VIE's") | ' | |||||||||||||||||||||
4. Variable Interest Entities | ||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||
Credit-Linked Notes (“CLNs”) | ||||||||||||||||||||||
We have invested in the Class 1 notes of two CLN structures, which represent special purpose trusts combining asset-backed securities with credit default swaps to produce multi-class structured securities. The CLN structures also include subordinated Class 2 notes, which are held by third parties, and, together with the Class 1 notes, represent 100% of the outstanding notes of the CLN structures. The entities that issued the CLNs are financed by the note holders, and, as such, the note holders participate in the expected losses and residual returns of the entities. | ||||||||||||||||||||||
Because the note holders do not have voting rights or similar rights, we determined the entities issuing the CLNs are VIEs, and as a note holder, our interest represented a variable interest. We have the power to direct the most significant activity affecting the performance of both CLN structures, as we have the ability to actively manage the reference portfolios underlying the credit default swaps. In addition, we receive returns from the CLN structures and may absorb losses that could potentially be significant to the CLN structures. As such, we concluded that we are the primary beneficiary of the VIEs associated with the CLNs. We reflect the assets and liabilities on our Consolidated Balance Sheets and recognize the results of operations of these VIEs on our Consolidated Statements of Comprehensive Income (Loss). | ||||||||||||||||||||||
As a result of consolidating the CLNs, we also consolidate the derivative instruments in the CLN structures. The credit default swaps create variability in the CLN structures and expose the note holders to the credit risk of the referenced portfolio. The contingent forward contracts transfer a portion of the loss in the underlying fixed maturity corporate asset-backed credit card loan securities back to the counterparty after credit losses reach our attachment point. | ||||||||||||||||||||||
The following summarizes information regarding the CLN structures (dollars in millions) as of December 31, 2013: | ||||||||||||||||||||||
Amount and Date of Issuance | ||||||||||||||||||||||
$400 | $200 | |||||||||||||||||||||
December | April | |||||||||||||||||||||
2006 | 2007 | |||||||||||||||||||||
Original attachment point (subordination) | 5.50% | 2.05% | ||||||||||||||||||||
Current attachment point (subordination) | 4.17% | 1.48% | ||||||||||||||||||||
Maturity | 12/20/16 | 3/20/17 | ||||||||||||||||||||
Current rating of tranche | BB+ | Ba2 | ||||||||||||||||||||
Current rating of underlying collateral pool | Aa1-B1 | Aaa-Caa2 | ||||||||||||||||||||
Number of defaults in underlying collateral pool | 2 | 2 | ||||||||||||||||||||
Number of entities | 124 | 99 | ||||||||||||||||||||
Number of countries | 20 | 21 | ||||||||||||||||||||
There has been no event of default on the CLNs themselves. Based upon our analysis, the remaining subordination as represented by the attachment point should be sufficient to absorb future credit losses, subject to changing market conditions. Similar to other debt market instruments, our maximum principal loss is limited to our original investment. | ||||||||||||||||||||||
The following summarizes the exposure of the CLN structures’ underlying reference portfolios by industry and rating as of December 31, 2013: | ||||||||||||||||||||||
AAA | AA | A | BBB | BB | B | CCC | Total | |||||||||||||||
Industry | ||||||||||||||||||||||
Financial intermediaries | 0.0% | 2.1% | 6.7% | 1.7% | 0.0% | 0.0% | 0.0% | 10.5% | ||||||||||||||
Telecommunications | 0.0% | 0.0% | 4.0% | 5.5% | 1.5% | 0.0% | 0.0% | 11.0% | ||||||||||||||
Oil and gas | 0.3% | 2.1% | 1.0% | 4.6% | 0.0% | 0.0% | 0.0% | 8.0% | ||||||||||||||
Utilities | 0.0% | 0.0% | 2.6% | 1.9% | 0.0% | 0.0% | 0.0% | 4.5% | ||||||||||||||
Chemicals and plastics | 0.0% | 0.0% | 2.3% | 1.2% | 0.3% | 0.0% | 0.0% | 3.8% | ||||||||||||||
Drugs | 0.3% | 2.2% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 3.7% | ||||||||||||||
Retailers (except food | ||||||||||||||||||||||
and drug) | 0.0% | 0.0% | 2.1% | 0.9% | 0.5% | 0.0% | 0.0% | 3.5% | ||||||||||||||
Industrial equipment | 0.0% | 0.0% | 2.6% | 0.7% | 0.0% | 0.0% | 0.0% | 3.3% | ||||||||||||||
Sovereign | 0.0% | 0.7% | 1.2% | 1.3% | 0.0% | 0.0% | 0.0% | 3.2% | ||||||||||||||
Conglomerates | 0.0% | 2.3% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% | 3.2% | ||||||||||||||
Forest products | 0.0% | 0.0% | 0.0% | 1.6% | 1.4% | 0.0% | 0.0% | 3.0% | ||||||||||||||
Other | 0.0% | 4.1% | 15.5% | 17.1% | 4.6% | 0.7% | 0.3% | 42.3% | ||||||||||||||
Total | 0.6% | 13.5% | 40.1% | 36.5% | 8.3% | 0.7% | 0.3% | 100.0% | ||||||||||||||
Statutory Trust Note | ||||||||||||||||||||||
In August 2011, we purchased a $100 million note issued by a statutory trust (“Issuer”) in a private placement offering. The proceeds were used by the Issuer to purchase U.S. Treasury securities to be held as collateral assets supporting an excess mortality swap. Our maximum exposure to loss is limited to our original investment in the notes. We have concluded that the Issuer of the note is a VIE as the entity does not have sufficient equity to support its activities without additional financial support, and as a note holder, our interest represents a variable interest. In our evaluation of the primary beneficiary, we concluded that our economic interest was greater than our stated power. As a result, we concluded that we are the primary beneficiary of the VIE and consolidated all of the assets and liabilities of the Issuer on our Consolidated Balance Sheets as of August 1, 2011. | ||||||||||||||||||||||
On December 16, 2013, the excess mortality swap underlying this VIE was terminated as a result of a cancellation event under the associated swap agreement. Subsequently, the U.S. government bonds were redeemed on January 6, 2014. The combination of these two events, under the direction of LNC and its counterparty, has provided for the dissolution of this VIE effective January 6, 2014. | ||||||||||||||||||||||
Lincoln Financial Limited Liability Company I | ||||||||||||||||||||||
In July 2013, we formed a new limited liability company, Lincoln Financial Limited Liability Company I (“LFLLCI”), and we became the sole equity owner of LFLLCI through our capital contribution. The activities of LFLLCI relate solely to our reinsurance subsidiary, the Lincoln Reinsurance Company of Vermont V (“LRCVV”), and primarily are to acquire, hold and issue notes as well as pay and collect interest on the notes. We concluded that LFLLCI is a VIE and that LNC is the primary beneficiary as we have the power to direct the most significant activities affecting the performance of LFLLCI. We do not expect the financial results of LFLLCI to have a material effect on our consolidated results of operations or financial condition. | ||||||||||||||||||||||
Asset and liability information (dollars in millions) for the consolidated VIEs included on our Consolidated Balance Sheets was as follows: | ||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||
Number | Number | |||||||||||||||||||||
of | Notional | Carrying | of | Notional | Carrying | |||||||||||||||||
Instruments | Amounts | Value | Instruments | Amounts | Value | |||||||||||||||||
Assets | ||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||
Asset-backed credit card loans | N/A | $ | - | $ | 595 | N/A | $ | - | $ | 598 | ||||||||||||
U.S. government bonds | N/A | - | 102 | N/A | - | 110 | ||||||||||||||||
Excess mortality swap | - | - | - | 1 | 100 | - | ||||||||||||||||
Total return swap | 1 | 361 | - | - | - | - | ||||||||||||||||
Total assets (1) | 1 | $ | 361 | $ | 697 | 1 | $ | 100 | $ | 708 | ||||||||||||
Liabilities | ||||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||
Credit default swaps | 2 | $ | 600 | $ | 27 | 2 | $ | 600 | $ | 128 | ||||||||||||
Contingent forwards | 2 | - | - | 2 | - | - | ||||||||||||||||
Total liabilities (2) | 4 | $ | 600 | $ | 27 | 4 | $ | 600 | $ | 128 | ||||||||||||
-1 | Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. | |||||||||||||||||||||
-2 | Reported in variable interest entities’ liabilities on our Consolidated Balance Sheets. | |||||||||||||||||||||
For details related to the fixed maturity AFS securities for these VIEs, see Note 5. | ||||||||||||||||||||||
As described more fully in Note 1, we regularly review our investment holdings for OTTI. Based upon this review, we believe that the AFS fixed maturity securities were not other-than-temporarily impaired as of December 31, 2013. | ||||||||||||||||||||||
The gains (losses) for the consolidated VIEs (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss) were as follows: | ||||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||||||
Credit default swaps | $ | 101 | $ | 166 | ||||||||||||||||||
Contingent forwards | - | -3 | ||||||||||||||||||||
Total non-qualifying hedges (1) | $ | 101 | $ | 163 | ||||||||||||||||||
-1 | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||
Effective December 31, 2010, we issued a $500 million long-term senior note in exchange for a corporate bond AFS security of like principal and duration from a non-affiliated VIE whose primary activities are to acquire, hold and issue notes and loans, as well as pay and collect interest on the notes and loans. We have concluded that we are not the primary beneficiary of this VIE because we do not have power over the activities that most significantly affect its economic performance. In addition, the terms of the senior note provide us with a set-off right to the corporate bond AFS security we purchased from the VIE; therefore, neither appears on our Consolidated Balance Sheets. We assigned the corporate bond AFS security to one of our subsidiaries and issued a guarantee to our subsidiary for the timely payment of the corporate bond’s principal. | ||||||||||||||||||||||
Through our investment activities, we make passive investments in structured securities issued by VIEs for which we are not the manager. These structured securities include our RMBS, CMBS, CLOs and CDOs. We have not provided financial or other support with respect to these VIEs other than our original investment. We have determined that we are not the primary beneficiary of these VIEs due to the relative size of our investment in comparison to the principal amount of the structured securities issued by the VIEs and the level of credit subordination that reduces our obligation to absorb losses or right to receive benefits. Our maximum exposure to loss on these structured securities is limited to the amortized cost for these investments. We recognize our variable interest in these VIEs at fair value on our Consolidated Balance Sheets. For information about these structured securities, see Note 5. | ||||||||||||||||||||||
We invest in certain LPs that operate qualified affordable housing projects that we concluded are VIEs. We receive returns from the LPs in the form of income tax credits that are guaranteed by creditworthy third parties, and our exposure to loss is limited to the capital we invest in the LPs. We are not the primary beneficiary of these VIEs as we do not have the power to direct the most significant activities of the LPs. Our maximum exposure to loss was $77 million and $92 million as of December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||
Investments
Investments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||
Investments | ' | ||||||||||||||||||
5. Investments | |||||||||||||||||||
AFS Securities | |||||||||||||||||||
Pursuant to the Fair Value Measurements and Disclosures Topic of the FASB ASC, we have categorized AFS securities into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3), as described in Note 1, which also includes additional disclosures regarding our fair value measurements. | |||||||||||||||||||
The amortized cost, gross unrealized gains, losses and OTTI and fair value of AFS securities (in millions) were as follows: | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | OTTI | Value | |||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 65,808 | $ | 4,374 | $ | 1,157 | $ | 90 | $ | 68,935 | |||||||||
U.S. government bonds | 355 | 26 | 14 | - | 367 | ||||||||||||||
Foreign government bonds | 505 | 45 | 1 | - | 549 | ||||||||||||||
RMBS | 4,135 | 256 | 10 | 31 | 4,350 | ||||||||||||||
CMBS | 713 | 36 | 4 | 17 | 728 | ||||||||||||||
CLOs | 232 | - | 1 | 6 | 225 | ||||||||||||||
State and municipal bonds | 3,638 | 308 | 27 | - | 3,919 | ||||||||||||||
Hybrid and redeemable preferred securities | 967 | 89 | 51 | - | 1,005 | ||||||||||||||
VIEs' fixed maturity securities | 682 | 15 | - | - | 697 | ||||||||||||||
Total fixed maturity securities | 77,035 | 5,149 | 1,265 | 144 | 80,775 | ||||||||||||||
Equity securities | 182 | 19 | - | - | 201 | ||||||||||||||
Total AFS securities | $ | 77,217 | $ | 5,168 | $ | 1,265 | $ | 144 | $ | 80,976 | |||||||||
As of December 31, 2012 | |||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | OTTI | Value | |||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 60,124 | $ | 8,219 | $ | 219 | $ | 108 | $ | 68,016 | |||||||||
U.S. government bonds | 383 | 59 | - | - | 442 | ||||||||||||||
Foreign government bonds | 562 | 92 | - | - | 654 | ||||||||||||||
RMBS | 5,763 | 471 | 3 | 60 | 6,171 | ||||||||||||||
CMBS | 970 | 68 | 16 | 19 | 1,003 | ||||||||||||||
CLOs | 189 | 2 | 3 | 8 | 180 | ||||||||||||||
State and municipal bonds | 3,546 | 814 | 7 | - | 4,353 | ||||||||||||||
Hybrid and redeemable preferred securities | 1,181 | 106 | 70 | - | 1,217 | ||||||||||||||
VIEs' fixed maturity securities | 677 | 31 | - | - | 708 | ||||||||||||||
Total fixed maturity securities | 73,395 | 9,862 | 318 | 195 | 82,744 | ||||||||||||||
Equity securities | 137 | 22 | 2 | - | 157 | ||||||||||||||
Total AFS securities | $ | 73,532 | $ | 9,884 | $ | 320 | $ | 195 | $ | 82,901 | |||||||||
The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2013, were as follows: | |||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
Cost | Value | ||||||||||||||||||
Due in one year or less | $ | 2,599 | $ | 2,670 | |||||||||||||||
Due after one year through five years | 14,301 | 15,461 | |||||||||||||||||
Due after five years through ten years | 24,680 | 25,621 | |||||||||||||||||
Due after ten years | 30,375 | 31,720 | |||||||||||||||||
Subtotal | 71,955 | 75,472 | |||||||||||||||||
MBS | 4,848 | 5,078 | |||||||||||||||||
CLOs | 232 | 225 | |||||||||||||||||
Total fixed maturity AFS securities | $ | 77,035 | $ | 80,775 | |||||||||||||||
Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. | |||||||||||||||||||
The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
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 | $ | 16,918 | $ | 1,018 | $ | 1,258 | $ | 229 | $ | 18,176 | $ | 1,247 | |||||||
U.S. government bonds | 163 | 14 | - | - | 163 | 14 | |||||||||||||
Foreign government bonds | 69 | 1 | - | - | 69 | 1 | |||||||||||||
RMBS | 488 | 17 | 267 | 24 | 755 | 41 | |||||||||||||
CMBS | 109 | 7 | 43 | 14 | 152 | 21 | |||||||||||||
CLOs | 136 | 2 | 50 | 5 | 186 | 7 | |||||||||||||
State and municipal bonds | 377 | 20 | 24 | 7 | 401 | 27 | |||||||||||||
Hybrid and redeemable | |||||||||||||||||||
preferred securities | 62 | 6 | 197 | 45 | 259 | 51 | |||||||||||||
Total fixed maturity securities | 18,322 | 1,085 | 1,839 | 324 | 20,161 | 1,409 | |||||||||||||
Equity securities | - | - | - | - | - | - | |||||||||||||
Total AFS securities | $ | 18,322 | $ | 1,085 | $ | 1,839 | $ | 324 | $ | 20,161 | $ | 1,409 | |||||||
Total number of AFS securities in an unrealized loss position | 1,484 | ||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||
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 | $ | 2,853 | $ | 145 | $ | 934 | $ | 182 | $ | 3,787 | $ | 327 | |||||||
RMBS | 272 | 39 | 199 | 24 | 471 | 63 | |||||||||||||
CMBS | 66 | 16 | 113 | 19 | 179 | 35 | |||||||||||||
CLOs | 10 | 8 | 53 | 3 | 63 | 11 | |||||||||||||
State and municipal bonds | 64 | 1 | 24 | 6 | 88 | 7 | |||||||||||||
Hybrid and redeemable | |||||||||||||||||||
preferred securities | 71 | 3 | 293 | 67 | 364 | 70 | |||||||||||||
Total fixed maturity securities | 3,336 | 212 | 1,616 | 301 | 4,952 | 513 | |||||||||||||
Equity securities | 7 | 2 | - | - | 7 | 2 | |||||||||||||
Total AFS securities | $ | 3,343 | $ | 214 | $ | 1,616 | $ | 301 | $ | 4,959 | $ | 515 | |||||||
Total number of AFS securities in an unrealized loss position | 626 | ||||||||||||||||||
For information regarding our investments in VIEs, see Note 4. | |||||||||||||||||||
We perform detailed analysis on the AFS securities backed by pools of residential and commercial mortgages that are most at risk of impairment based on factors discussed in Note 1. Selected information for these securities in a gross unrealized loss position (in millions) was as follows: | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Amortized | Fair | Unrealized | |||||||||||||||||
Cost | Value | Loss | |||||||||||||||||
Total | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,261 | $ | 1,146 | $ | 115 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 193 | 169 | 24 | ||||||||||||||||
Total | $ | 1,454 | $ | 1,315 | $ | 139 | |||||||||||||
Subject to Detailed Analysis | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 933 | $ | 833 | $ | 100 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 29 | 24 | 5 | ||||||||||||||||
Total | $ | 962 | $ | 857 | $ | 105 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||||
Amortized | Fair | Unrealized | |||||||||||||||||
Cost | Value | Loss | |||||||||||||||||
Total | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,181 | $ | 980 | $ | 201 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 236 | 192 | 44 | ||||||||||||||||
Total | $ | 1,417 | $ | 1,172 | $ | 245 | |||||||||||||
Subject to Detailed Analysis | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,173 | $ | 972 | $ | 201 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 56 | 40 | 16 | ||||||||||||||||
Total | $ | 1,229 | $ | 1,012 | $ | 217 | |||||||||||||
For the years ended December 31, 2013 and 2012, we recorded OTTI for AFS securities backed by pools of residential and commercial mortgages of $21 million and $103 million, pre-tax, respectively, and before associated amortization expense for DAC, VOBA, DSI and DFEL, of which $ (46) million and $ (45) million, respectively, was recognized in OCI and $67 million and $148 million, respectively, was recognized in net income (loss). | |||||||||||||||||||
The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Number | |||||||||||||||||||
Fair | Gross Unrealized | of | |||||||||||||||||
Value | Losses | OTTI | Securities (1) | ||||||||||||||||
Less than six months | $ | 1 | $ | 1 | $ | - | 4 | ||||||||||||
Six months or greater, but less than nine months | 7 | 3 | - | 1 | |||||||||||||||
Nine months or greater, but less than twelve months | 59 | 19 | - | 4 | |||||||||||||||
Twelve months or greater | 349 | 92 | 81 | 92 | |||||||||||||||
Total | $ | 416 | $ | 115 | $ | 81 | 101 | ||||||||||||
As of December 31, 2012 | |||||||||||||||||||
Number | |||||||||||||||||||
Fair | Gross Unrealized | of | |||||||||||||||||
Value | Losses | OTTI | Securities (1) | ||||||||||||||||
Less than six months | $ | 34 | $ | 9 | $ | 1 | 14 | ||||||||||||
Nine months or greater, but less than twelve months | 15 | 10 | - | 3 | |||||||||||||||
Twelve months or greater | 395 | 179 | 128 | 131 | |||||||||||||||
Total | $ | 444 | $ | 198 | $ | 129 | 148 | ||||||||||||
-1 | We may reflect a security in more than one aging category based on various purchase dates. | ||||||||||||||||||
We regularly review our investment holdings for OTTI. Our gross unrealized losses, including the portion of OTTI recognized in OCI, on AFS securities increased $894 million for the year ended December 31, 2013. As discussed further below, we believe the unrealized loss position as of December 31, 2013, did not represent OTTI as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; (iii) the estimated future cash flows were equal to or greater than the amortized cost basis of the debt securities; and (iv) we had the ability and intent to hold the equity AFS securities for a period of time sufficient for recovery. | |||||||||||||||||||
Based upon this evaluation as of December 31, 2013, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums and fees and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our temporarily-impaired securities. | |||||||||||||||||||
As of December 31, 2013, the unrealized losses associated with our corporate bond securities were attributable primarily to securities that were backed by commercial loans and individual issuer companies. For our corporate bond securities with commercial loans as the underlying collateral, we evaluated the projected credit losses in the underlying collateral and concluded that we had sufficient subordination or other credit enhancement when compared with our estimate of credit losses for the individual security and we expected to recover the entire amortized cost for each security. For individual issuers, we performed detailed analysis of the financial performance of the issuer and determined that we expected to recover the entire amortized cost for each security. | |||||||||||||||||||
As of December 31, 2013, the unrealized losses associated with our MBS and CLOs were attributable primarily to collateral losses and credit spreads. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts, sector credit ratings and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost basis of each temporarily impaired security. | |||||||||||||||||||
As of December 31, 2013, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of specific issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the issuer based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each security. | |||||||||||||||||||
Changes in the amount of credit loss of OTTI recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Balance as of beginning-of-year | $ | 424 | $ | 390 | $ | 319 | |||||||||||||
Increases attributable to: | |||||||||||||||||||
Credit losses on securities for which an OTTI was not previously recognized | 39 | 108 | 55 | ||||||||||||||||
Credit losses on securities for which an OTTI was previously recognized | 43 | 62 | 71 | ||||||||||||||||
Decreases attributable to: | |||||||||||||||||||
Securities sold | -102 | -136 | -55 | ||||||||||||||||
Balance as of end-of-year | $ | 404 | $ | 424 | $ | 390 | |||||||||||||
During 2013, 2012 and 2011, we recorded credit losses on securities for which an OTTI was not previously recognized as we determined the cash flows expected to be collected would not be sufficient to recover the entire amortized cost basis of the debt security. The credit losses we recorded on securities for which an OTTI was not previously recognized were attributable primarily to one or a combination of the following reasons: | |||||||||||||||||||
· | Failure of the issuer of the security to make scheduled payments; | ||||||||||||||||||
· | Deterioration of creditworthiness of the issuer; | ||||||||||||||||||
· | Deterioration of conditions specifically related to the security; | ||||||||||||||||||
· | Deterioration of fundamentals of the industry in which the issuer operates; and | ||||||||||||||||||
· | Deterioration of the rating of the security by a rating agency. | ||||||||||||||||||
We recognize the OTTI attributed to the noncredit portion as a separate component in OCI referred to as unrealized OTTI on AFS securities. | |||||||||||||||||||
Details of the amount of credit loss of OTTI recognized in net income (loss) for which a portion related to other factors was recognized in OCI (in millions), were as follows: | |||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Gross Unrealized | OTTI in | ||||||||||||||||||
Amortized | Losses and | Fair | Credit | ||||||||||||||||
Cost | Gains | OTTI | Value | Losses | |||||||||||||||
Corporate bonds | $ | 265 | $ | 18 | $ | 49 | $ | 234 | $ | 133 | |||||||||
RMBS | 550 | 18 | 18 | 550 | 184 | ||||||||||||||
CMBS | 35 | 4 | 12 | 27 | 87 | ||||||||||||||
Total | $ | 850 | $ | 40 | $ | 79 | $ | 811 | $ | 404 | |||||||||
As of December 31, 2012 | |||||||||||||||||||
Gross Unrealized | OTTI in | ||||||||||||||||||
Amortized | Losses and | Fair | Credit | ||||||||||||||||
Cost | Gains | OTTI | Value | Losses | |||||||||||||||
Corporate bonds | $ | 299 | $ | 4 | $ | 98 | $ | 205 | $ | 104 | |||||||||
RMBS | 636 | 22 | 40 | 618 | 227 | ||||||||||||||
CMBS | 41 | 1 | 16 | 26 | 93 | ||||||||||||||
Total | $ | 976 | $ | 27 | $ | 154 | $ | 849 | $ | 424 | |||||||||
Trading Securities | |||||||||||||||||||
Trading securities at fair value (in millions) consisted of the following: | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 1,771 | $ | 1,929 | |||||||||||||||
U.S. government bonds | 272 | 310 | |||||||||||||||||
Foreign government bonds | 24 | 31 | |||||||||||||||||
RMBS | 155 | 192 | |||||||||||||||||
CMBS | 7 | 17 | |||||||||||||||||
CLOs | 2 | 4 | |||||||||||||||||
State and municipal bonds | 21 | 27 | |||||||||||||||||
Hybrid and redeemable preferred securities | 30 | 42 | |||||||||||||||||
Total fixed maturity securities | 2,282 | 2,552 | |||||||||||||||||
Equity Securities | - | 2 | |||||||||||||||||
Total trading securities | $ | 2,282 | $ | 2,554 | |||||||||||||||
The portion of the market adjustment for gains (losses) that relate to trading securities still held as of December 31, 2013, 2012 and 2011, was $(172) million, $53 million and $118 million, respectively. | |||||||||||||||||||
Mortgage Loans on Real Estate | |||||||||||||||||||
Mortgage loans on real estate principally involve commercial real estate. The commercial loans are geographically diversified throughout the U.S. with the largest concentrations in California and Texas, which accounted for 32% of mortgage loans on real estate as of December 31, 2013 and 2012. | |||||||||||||||||||
The following provides the current and past due composition of our mortgage loans on real estate (in millions): | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Current | $ | 7,200 | $ | 7,011 | |||||||||||||||
60 to 90 days past due | 4 | 8 | |||||||||||||||||
Greater than 90 days past due | 3 | 24 | |||||||||||||||||
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | |||||||||||||||||
Unamortized premium (discount) | 6 | 7 | |||||||||||||||||
Total carrying value | $ | 7,210 | $ | 7,029 | |||||||||||||||
The number of impaired mortgage loans on real estate, each of which had an associated specific valuation allowance, and the carrying value of impaired mortgage loans on real estate (dollars in millions) were as follows: | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Number of impaired mortgage loans on real estate | 3 | 10 | |||||||||||||||||
Principal balance of impaired mortgage loans on real estate | $ | 27 | $ | 75 | |||||||||||||||
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | |||||||||||||||||
Carrying value of impaired mortgage loans on real estate | $ | 24 | $ | 54 | |||||||||||||||
The changes in the valuation allowance associated with impaired mortgage loans on real estate (in millions) were as follows: | |||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Balance as of beginning-of-year | $ | 21 | $ | 31 | |||||||||||||||
Additions | 3 | 14 | |||||||||||||||||
Charge-offs, net of recoveries | -21 | -24 | |||||||||||||||||
Balance as of end-of-year | $ | 3 | $ | 21 | |||||||||||||||
The average carrying value on the impaired mortgage loans on real estate (in millions) was as follows: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Average carrying value for impaired mortgage loans on real estate | $ | 34 | $ | 51 | $ | 57 | |||||||||||||
Interest income recognized on impaired mortgage loans on real estate | 2 | 1 | 2 | ||||||||||||||||
Interest income collected on impaired mortgage loans on real estate | 2 | 1 | 2 | ||||||||||||||||
As described in Note 1, we use the loan-to-value and debt-service coverage ratios as credit quality indicators for our mortgage loans, which were as follows (dollars in millions): | |||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||
Debt- | Debt- | ||||||||||||||||||
Service | Service | ||||||||||||||||||
Principal | % of | Coverage | Principal | % of | Coverage | ||||||||||||||
Amount | Total | Ratio | Amount | Total | Ratio | ||||||||||||||
Less than 65% | $ | 6,026 | 83.6% | 1.78 | $ | 5,677 | 80.6% | 1.68 | |||||||||||
65% to 74% | 744 | 10.3% | 1.42 | 897 | 12.7% | 1.39 | |||||||||||||
75% to 100% | 402 | 5.6% | 0.83 | 386 | 5.5% | 0.84 | |||||||||||||
Greater than 100% | 35 | 0.5% | 0.78 | 83 | 1.2% | 0.66 | |||||||||||||
Total mortgage loans on real estate | $ | 7,207 | 100.0% | $ | 7,043 | 100.0% | |||||||||||||
Alternative Investments | |||||||||||||||||||
As of December 31, 2013 and 2012, alternative investments included investments in 121 and 98 different partnerships, respectively, and the portfolio represented approximately 1% of our overall invested assets. | |||||||||||||||||||
Net Investment Income | |||||||||||||||||||
The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Fixed maturity AFS securities | $ | 3,976 | $ | 3,910 | $ | 3,842 | |||||||||||||
Equity AFS securities | 6 | 6 | 5 | ||||||||||||||||
Trading securities | 137 | 147 | 154 | ||||||||||||||||
Mortgage loans on real estate | 388 | 397 | 408 | ||||||||||||||||
Real estate | 13 | 16 | 22 | ||||||||||||||||
Standby real estate equity commitments | - | - | 1 | ||||||||||||||||
Policy loans | 155 | 163 | 165 | ||||||||||||||||
Invested cash | 3 | 4 | 4 | ||||||||||||||||
Commercial mortgage loan prepayment and bond make-whole premiums | 117 | 48 | 82 | ||||||||||||||||
Alternative investments | 86 | 125 | 90 | ||||||||||||||||
Consent fees | 4 | 4 | 3 | ||||||||||||||||
Other investments | -9 | -19 | -13 | ||||||||||||||||
Investment income | 4,876 | 4,801 | 4,763 | ||||||||||||||||
Investment expense | -122 | -103 | -111 | ||||||||||||||||
Net investment income | $ | 4,754 | $ | 4,698 | $ | 4,652 | |||||||||||||
Realized Gain (Loss) Related to Certain Investments | |||||||||||||||||||
The detail of the realized gain (loss) related to certain investments (in millions) was as follows: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||
Gross gains | $ | 21 | $ | 16 | $ | 86 | |||||||||||||
Gross losses | -94 | -202 | -227 | ||||||||||||||||
Equity AFS securities: | |||||||||||||||||||
Gross gains | 8 | 1 | 12 | ||||||||||||||||
Gross losses | -2 | -9 | - | ||||||||||||||||
Gain (loss) on other investments | -3 | 2 | -9 | ||||||||||||||||
Associated amortization of DAC, VOBA, DSI and DFEL | |||||||||||||||||||
and changes in other contract holder funds | -28 | 2 | -10 | ||||||||||||||||
Total realized gain (loss) related to certain investments | $ | -98 | $ | -190 | $ | -148 | |||||||||||||
Details underlying write-downs taken as a result of OTTI (in millions) that were recognized in net income (loss) and included in realized gain (loss) on AFS securities above, and the portion of OTTI recognized in OCI (in millions) were as follows: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
OTTI Recognized in Net Income (Loss) | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | -35 | $ | -65 | $ | -14 | |||||||||||||
RMBS | -31 | -53 | -79 | ||||||||||||||||
CMBS | -15 | -55 | -57 | ||||||||||||||||
CRE CDOs | -1 | -2 | -1 | ||||||||||||||||
Hybrid and redeemable preferred securities | - | - | -2 | ||||||||||||||||
Total fixed maturity securities | -82 | -175 | -153 | ||||||||||||||||
Equity securities | -1 | -8 | - | ||||||||||||||||
Gross OTTI recognized in net income (loss) | -83 | -183 | -153 | ||||||||||||||||
Associated amortization of DAC, VOBA, DSI, and DFEL | 13 | 30 | 29 | ||||||||||||||||
Net OTTI recognized in net income (loss), pre-tax | $ | -70 | $ | -153 | $ | -124 | |||||||||||||
Portion of OTTI Recognized in OCI | |||||||||||||||||||
Gross OTTI recognized in OCI | $ | 11 | $ | 121 | $ | 58 | |||||||||||||
Change in DAC, VOBA, DSI and DFEL | -1 | -15 | -13 | ||||||||||||||||
Net portion of OTTI recognized in OCI, pre-tax | $ | 10 | $ | 106 | $ | 45 | |||||||||||||
Determination of Credit Losses on Corporate Bonds and CLOs | |||||||||||||||||||
As of December 31, 2013 and 2012, we reviewed our corporate bond and CLO portfolios for potential shortfall in contractual principal and interest based on numerous subjective and objective inputs. The factors used to determine the amount of credit loss for each individual security, include, but are not limited to, near term risk, substantial discrepancy between book and market value, sector or company-specific volatility, negative operating trends and trading levels wider than peers. | |||||||||||||||||||
Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by Standard & Poor’s (“S&P”) Rating Services or Baa3 or higher by Moody’s Investors Service (“Moody’s”), are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2013 and 2012, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2013 and 2012, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.0 billion, and a fair value of $2.9 billion. As of December 31, 2013 and 2012, 94% and 93%, respectively, of the fair value of our CLO portfolio was rated investment grade. As of December 31, 2013 and 2012, the portion of our CLO portfolio rated below investment grade had an amortized cost of $16 million and $21 million, respectively, and fair value of $13 million. Based upon the analysis discussed above, we believed as of December 31, 2013 and 2012, that we would recover the amortized cost of each investment grade corporate bond and CLO security. | |||||||||||||||||||
Determination of Credit Losses on MBS | |||||||||||||||||||
As of December 31, 2013 and 2012, default rates were projected by considering underlying MBS loan performance and collateral type. Projected default rates on existing delinquencies vary between 10% to 100% depending on loan type and severity of delinquency status. In addition, we estimate the potential contributions of currently performing loans that may become delinquent in the future based on the change in delinquencies and loan liquidations experienced in the recent history. Finally, we develop a default rate timing curve by aggregating the defaults for all loans in the pool (delinquent loans, foreclosure and real estate owned and new delinquencies from currently performing loans) and the associated loan-level loss severities. | |||||||||||||||||||
We use certain available loan characteristics such as lien status, loan sizes and occupancy to estimate the loss severity of loans. Second lien loans are assigned 100% severity, if defaulted. For first lien loans, we assume a minimum of 30% severity with higher severity assumed for investor properties and further adjusted by housing price assumptions. With the default rate timing curve and loan-level severity, we derive the future expected credit losses. | |||||||||||||||||||
Payables for Collateral on Investments | |||||||||||||||||||
The carrying value of the payables for collateral on investments (in millions) included on our Consolidated Balance Sheets and the fair value of the related investments or collateral consisted of the following: | |||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||
Collateral payable held for derivative investments (1) | $ | 638 | $ | 638 | $ | 2,567 | $ | 2,567 | |||||||||||
Securities pledged under securities lending agreements (2) | 184 | 178 | 197 | 189 | |||||||||||||||
Securities pledged under repurchase agreements (3) | 530 | 553 | 280 | 294 | |||||||||||||||
Securities pledged for Term Asset-Backed Securities | |||||||||||||||||||
Loan Facility ("TALF") (4) | 36 | 49 | 37 | 52 | |||||||||||||||
Investments pledged for Federal Home Loan Bank of | |||||||||||||||||||
Indianapolis ("FHLBI") (5) | 1,850 | 3,127 | 1,100 | 1,936 | |||||||||||||||
Total payables for collateral on investments | $ | 3,238 | $ | 4,545 | $ | 4,181 | $ | 5,038 | |||||||||||
(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 6 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 securities for TALF are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount that has typically averaged 90% of the fair value of the TALF securities. The cash received in these transactions is invested in fixed maturity AFS securities. | |||||||||||||||||||
(5) 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. | |||||||||||||||||||
For information related to balance sheet offsetting of our securities lending and repurchase agreements, see Note 6. | |||||||||||||||||||
Increase (decrease) in payables for collateral on investments (in millions) included on the Consolidated Statements of Cash Flows consisted of the following: | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Collateral payable held for derivative investments | $ | -1,929 | $ | -413 | $ | 2,180 | |||||||||||||
Securities pledged under securities lending agreements | -13 | -3 | 1 | ||||||||||||||||
Securities pledged under repurchase agreements | 250 | - | - | ||||||||||||||||
Securities pledged for TALF | -1 | -136 | -107 | ||||||||||||||||
Investments pledged for FHLBI | 750 | 1,000 | - | ||||||||||||||||
Total increase (decrease) in payables for collateral on investments | $ | -943 | $ | 448 | $ | 2,074 | |||||||||||||
Investment Commitments | |||||||||||||||||||
As of December 31, 2013, our investment commitments were $868 million, which included $411 million of LPs, $372 million of private placement securities and $85 million of mortgage loans on real estate. | |||||||||||||||||||
Concentrations of Financial Instruments | |||||||||||||||||||
As of December 31, 2013 and 2012, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation with a fair value of $2.6 billion and $3.8 billion, respectively, or 3% and 4% of our invested assets portfolio, respectively, and our investments in securities issued by Fannie Mae with a fair value of $1.7 billion and $2.2 billion, respectively, or 2% of our invested assets portfolio. These investments are included in corporate bonds in the tables above. | |||||||||||||||||||
As of December 31, 2013 and 2012, our most significant investments in one industry were our investment securities in the electric industry with a fair value of $8.7 billion, or 9% of our invested assets portfolio, and our investment securities in the banking industry with a fair value of $5.0 billion, or 5% of our invested assets portfolio. We utilized the industry classifications to obtain the concentration of financial instruments amount; as such, this amount will not agree to the AFS securities table above. | |||||||||||||||||||
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
6. Derivative Instruments | ||||||||||||||||||
We maintain an overall risk management strategy that incorporates the use of derivative instruments to minimize significant unplanned fluctuations in earnings that are caused by interest rate risk, foreign currency exchange risk, equity market risk, default risk, basis risk and credit risk. We assess these risks by continually identifying and monitoring changes in our exposures that may adversely affect expected future cash flows and by evaluating hedging opportunities. | ||||||||||||||||||
Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies. | ||||||||||||||||||
See Note 1 for a detailed discussion of the accounting treatment for derivative instruments. See Note 21 for additional disclosures related to the fair value of our derivative instruments and Note 4 for derivative instruments related to our consolidated VIEs. | ||||||||||||||||||
Interest Rate Contracts | ||||||||||||||||||
We use derivative instruments as part of our interest rate risk management strategy. These instruments are economic hedges unless otherwise noted and include: | ||||||||||||||||||
Consumer Price Index Swaps | ||||||||||||||||||
We use consumer price index swaps to hedge the liability exposure on certain options in fixed annuity products. Consumer price index swaps are contracts entered into at no cost and whose payoff is the difference between the consumer price index inflation rate and the fixed-rate determined as of inception. | ||||||||||||||||||
Forward-Starting Interest Rate Swaps | ||||||||||||||||||
We use forward-starting interest rate swaps designated and qualifying as cash flow hedges to hedge our exposure to interest rate fluctuations related to the forecasted purchase of certain assets and liabilities. | ||||||||||||||||||
Interest Rate Cap Agreements | ||||||||||||||||||
We use interest rate cap agreements to provide a level of protection from the effect of rising interest rates to economically hedge certain life insurance products and annuity contracts. Interest rate cap agreements entitle us to receive quarterly payments from the counterparties on specified future reset dates, contingent on future interest rates. For each cap, the amount of such quarterly payments, if any, is determined by the excess of a market interest rate over a specified cap rate, multiplied by the notional amount divided by four. | ||||||||||||||||||
Interest Rate Cap Corridors | ||||||||||||||||||
We use interest rate cap corridors to provide a level of protection from the effect of rising interest rates for certain life insurance products and annuity contracts. Interest rate cap corridors involve purchasing an interest rate cap at a specific cap rate and selling an interest rate cap with a higher cap rate. For each corridor, the amount of quarterly payments, if any, is determined by the rate at which the underlying index rate resets above the original capped rate. The corridor limits the benefit the purchaser can receive as the related interest rate index rises above the higher capped rate. There is no additional liability to us other than the purchase price associated with the interest rate cap corridor. | ||||||||||||||||||
Interest Rate Futures | ||||||||||||||||||
We use interest rate futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. | ||||||||||||||||||
Interest Rate Swap Agreements | ||||||||||||||||||
We use interest rate swap agreements to hedge the liability exposure on certain options in variable annuity products. | ||||||||||||||||||
We also use interest rate swap agreements designated and qualifying as cash flow hedges. These instruments either hedge the interest rate risk of floating-rate bond coupon payments by replicating a fixed-rate bond, or hedge our exposure to fixed-rate bond coupon payments and the change in the underlying asset values as interest rates fluctuate. | ||||||||||||||||||
Finally, we use interest rate swap agreements designated and qualifying as fair value hedges to hedge against changes in the value of anticipated transactions and commitments as interest rates fluctuate. | ||||||||||||||||||
Treasury and Reverse Treasury Locks | ||||||||||||||||||
We use treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to our issuance of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. In addition, we use reverse treasury locks designated and qualifying as cash flow hedges to hedge the interest rate exposure related to the purchase of fixed-rate securities or the anticipated future cash flows of floating-rate fixed maturity securities due to changes in interest rates. These derivatives are primarily structured to hedge interest rate risk inherent in the assumptions used to price certain liabilities. | ||||||||||||||||||
Foreign Currency Contracts | ||||||||||||||||||
We use derivative instruments as part of our foreign currency risk management strategy. These instruments are economic hedges unless otherwise noted and include: | ||||||||||||||||||
Currency Futures | ||||||||||||||||||
We use currency futures to hedge foreign exchange risk associated with certain options in variable annuity products. Currency futures exchange one currency for another at a specified date in the future at a specified exchange rate. | ||||||||||||||||||
Foreign Currency Swaps | ||||||||||||||||||
We use foreign currency swaps designated and qualifying as cash flow hedges, which are traded over-the-counter, to hedge some of the foreign exchange risk of investments in fixed maturity securities denominated in foreign currencies. A foreign currency swap is a contractual agreement to exchange the currencies of two different countries at a specified rate of exchange in the future. | ||||||||||||||||||
Equity Market Contracts | ||||||||||||||||||
We use derivative instruments as part of our equity market risk management strategy that are economic hedges and include: | ||||||||||||||||||
Call Options Based on the S&P 500 Index® (“S&P 500”) | ||||||||||||||||||
We use indexed annuity contracts to permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. | ||||||||||||||||||
Equity Futures | ||||||||||||||||||
We use equity futures contracts to hedge the liability exposure on certain options in variable annuity products. These futures contracts require payment between our counterparty and us on a daily basis for changes in the futures index price. | ||||||||||||||||||
Put Options | ||||||||||||||||||
We use put options to hedge the liability exposure on certain options in variable annuity products. Put options are contracts that require counterparties to pay us at a specified future date the amount, if any, by which a specified equity index is less than the strike rate stated in the agreement, applied to a notional amount. | ||||||||||||||||||
Total Return Swaps | ||||||||||||||||||
We use total return swaps to hedge a portion of the liability related to our deferred compensation plans. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. | ||||||||||||||||||
In addition, we use total return swaps to hedge the liability exposure on certain options in variable annuity products. We receive the total return on a portfolio of indexes and pay a floating-rate of interest. | ||||||||||||||||||
Variance Swaps | ||||||||||||||||||
We use variance swaps to hedge the liability exposure on certain options in variable annuity products. Variance swaps are contracts entered into at no cost and whose payoff is the difference between the realized variance rate of an underlying index and the fixed variance rate determined as of inception. | ||||||||||||||||||
Credit Contracts | ||||||||||||||||||
We use derivative instruments as part of our credit risk management strategy that are economic hedges and include: | ||||||||||||||||||
Credit Default Swaps – Buying Protection | ||||||||||||||||||
We buy credit default swaps to hedge against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows us to put the bond back to the counterparty at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. | ||||||||||||||||||
Credit Default Swaps – Selling Protection | ||||||||||||||||||
We sell credit default swaps to offer credit protection to contract holders and investors. The credit default swaps hedge the contract holders and investors against a drop in bond prices due to credit concerns of certain bond issuers. A credit default swap allows the investor to put the bond back to us at par upon a default event by the bond issuer. A default event is defined as bankruptcy, failure to pay, obligation acceleration or restructuring. | ||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||
We have embedded derivatives that include: | ||||||||||||||||||
GLB Reserves Embedded Derivatives | ||||||||||||||||||
We use a hedging strategy designed to mitigate the risk and income statement volatility caused by changes in the equity markets, interest rates and volatility associated with GLBs offered in our variable annuity products, including products with GWB and GIB features. The hedging strategy is designed such that changes in the value of the hedge contracts due to changes in equity markets, interest rates and implied volatilities move in the opposite direction of changes in embedded derivative GLB reserves caused by those same factors. We rebalance our hedge positions based upon changes in these factors as needed. While we actively manage our hedge positions, these hedge positions may not be totally effective in offsetting changes in the embedded derivative reserve due to, among other things, differences in timing between when a market exposure changes and corresponding changes to the hedge positions, extreme swings in the equity markets and interest rates, market volatility, contract holder behavior, divergence between the performance of the underlying funds and the hedging indices, divergence between the actual and expected performance of the hedge instruments and our ability to purchase hedging instruments at prices consistent with our desired risk and return trade-off. | ||||||||||||||||||
Certain features of these guarantees have elements of both insurance benefits accounted for under the Financial Services – Insurance – Claim Costs and Liabilities for Future Policy Benefits Subtopic of the FASB ASC (“benefit reserves”) and embedded derivatives accounted for under the Derivatives and Hedging and the Fair Value Measurements and Disclosures Topics of the FASB ASC (“embedded derivative reserves”). We calculate the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each GLB feature. | ||||||||||||||||||
Indexed Annuity Contracts Embedded Derivatives | ||||||||||||||||||
We distribute indexed annuity contracts that permit the holder to elect an interest rate return or an equity market component, where interest credited to the contracts is linked to the performance of the S&P 500. Contract holders may elect to rebalance index options at renewal dates, either annually or biannually. As of each renewal date, we have the opportunity to re-price the indexed component by establishing participation rates, caps, spreads and specified rates, subject to contractual guarantees. We purchase S&P 500 call options that are highly correlated to the portfolio allocation decisions of our contract holders, such that we are economically hedged with respect to equity returns for the current reset period. | ||||||||||||||||||
Reinsurance Related Embedded Derivatives | ||||||||||||||||||
We have certain modified coinsurance arrangements and coinsurance with funds withheld reinsurance arrangements with embedded derivatives related to the withheld assets of the related funds. These derivatives are considered total return swaps with contractual returns that are attributable to various assets and liabilities associated with these reinsurance arrangements. | ||||||||||||||||||
We have derivative instruments with off-balance-sheet risks whose notional or contract amounts exceed the related credit exposure. Outstanding derivative instruments with off-balance-sheet risks (in millions) were as follows: | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||||||
Amounts | Asset | Liability | Amounts | Asset | Liability | |||||||||||||
Qualifying Hedges | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | $ | 4,339 | $ | 562 | $ | 148 | $ | 3,214 | $ | 462 | $ | 224 | ||||||
Foreign currency contracts (1) | 615 | 32 | 46 | 420 | 39 | 26 | ||||||||||||
Total cash flow hedges | 4,954 | 594 | 194 | 3,634 | 501 | 250 | ||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (1) | 875 | 92 | 33 | 875 | 269 | - | ||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||
Interest rate contracts (1) | 45,620 | 215 | 744 | 36,539 | 1,042 | 475 | ||||||||||||
Foreign currency contracts (1) | 102 | - | - | 48 | - | - | ||||||||||||
Equity market contracts (1) | 19,917 | 957 | 193 | 19,857 | 1,734 | 170 | ||||||||||||
Equity collar (1) | - | - | - | 9 | 1 | - | ||||||||||||
Credit contracts (2) | 126 | - | 2 | 148 | - | 11 | ||||||||||||
Embedded derivatives: | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts (3) | - | - | 1,048 | - | - | 732 | ||||||||||||
GLB (3) | - | 1,244 | - | - | - | 909 | ||||||||||||
Reinsurance related (4) | - | - | 108 | - | - | 215 | ||||||||||||
Total derivative instruments | $ | 71,594 | $ | 3,102 | $ | 2,322 | $ | 61,110 | $ | 3,547 | $ | 2,762 | ||||||
-1 | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | |||||||||||||||||
-2 | Reported in other liabilities on our Consolidated Balance Sheets. | |||||||||||||||||
-3 | Reported in future contract benefits on our Consolidated Balance Sheets. | |||||||||||||||||
-4 | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | |||||||||||||||||
The maturity of the notional amounts of derivative instruments (in millions) was as follows: | ||||||||||||||||||
Remaining Life as of December 31, 2013 | ||||||||||||||||||
Less Than | 1 – 5 | 6 – 10 | 11 – 30 | Over 30 | ||||||||||||||
1 Year | Years | Years | Years | Years | Total | |||||||||||||
Interest rate contracts (1) | $ | 5,343 | $ | 23,374 | $ | 10,697 | $ | 10,207 | $ | 1,213 | $ | 50,834 | ||||||
Foreign currency contracts (2) | 175 | 110 | 305 | 127 | - | 717 | ||||||||||||
Equity market contracts | 10,977 | 3,573 | 5,344 | 21 | 2 | 19,917 | ||||||||||||
Credit contracts | - | 126 | - | - | - | 126 | ||||||||||||
Total derivative instruments | ||||||||||||||||||
with notional amounts | $ | 16,495 | $ | 27,183 | $ | 16,346 | $ | 10,355 | $ | 1,215 | $ | 71,594 | ||||||
-1 | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | |||||||||||||||||
-2 | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2028. | |||||||||||||||||
The change in our unrealized gain (loss) on derivative instruments in accumulated OCI (in millions) was as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Unrealized Gain (Loss) on Derivative Instruments | ||||||||||||||||||
Balance as of beginning-of-year | $ | 163 | $ | 119 | $ | -11 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Unrealized holding gains (losses) arising during the year: | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts | 163 | 73 | 177 | |||||||||||||||
Foreign currency contracts | -24 | -22 | 3 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts | 4 | 4 | 4 | |||||||||||||||
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 | |||||||||||||||
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | - | |||||||||||||||
Income tax benefit (expense) | -45 | -21 | -67 | |||||||||||||||
Less: | ||||||||||||||||||
Reclassification adjustment for gains (losses) included in net income (loss): | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | -21 | -21 | -15 | |||||||||||||||
Interest rate contracts (2) | -1 | -1 | -1 | |||||||||||||||
Foreign currency contracts (1) | 3 | 3 | 2 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (2) | 4 | 4 | 4 | |||||||||||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 | |||||||||||||||
Income tax benefit (expense) | 5 | 4 | 3 | |||||||||||||||
Balance as of end-of-year | $ | 256 | $ | 163 | $ | 119 | ||||||||||||
-1 | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
The gains (losses) on derivative instruments (in millions) recorded within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) were as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Qualifying Hedges | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | $ | -21 | $ | -21 | $ | -15 | ||||||||||||
Foreign currency contracts (1) | 3 | 3 | 2 | |||||||||||||||
Total cash flow hedges | -18 | -18 | -13 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (2) | 36 | 36 | 50 | |||||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||
Interest rate contracts (3) | -989 | 35 | 1,100 | |||||||||||||||
Foreign currency contracts (3) | -4 | -8 | -12 | |||||||||||||||
Equity market contracts (3) | -1,306 | -1,377 | 316 | |||||||||||||||
Equity market contracts (4) | 38 | 18 | 21 | |||||||||||||||
Credit contracts (3) | 9 | 2 | -7 | |||||||||||||||
Embedded derivatives: | ||||||||||||||||||
Indexed annuity and universal life contracts (3) | -356 | -136 | 5 | |||||||||||||||
GLB reserves (3) | 2,153 | 1,308 | -1,809 | |||||||||||||||
Reinsurance related (3) | 107 | -47 | -66 | |||||||||||||||
Total derivative instruments | $ | -330 | $ | -187 | $ | -415 | ||||||||||||
-1 | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-3 | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-4 | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
Gains (losses) (in millions) on derivative instruments designated and qualifying as cash flow hedges were as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Gain (loss) recognized as a component of OCI with | ||||||||||||||||||
the offset to net investment income | $ | -19 | $ | -19 | $ | -13 | ||||||||||||
As of December 31, 2013, $24 million of the deferred net losses on derivative instruments in accumulated OCI were expected to be reclassified to earnings during the next 12 months. This reclassification would be due primarily to interest rate variances related to our interest rate swap agreements. | ||||||||||||||||||
For the years ended December 31, 2013 and 2012, there were no material reclassifications to earnings due to hedged firm commitments no longer deemed probable or due to hedged forecasted transactions that had not occurred by the end of the originally specified time period. | ||||||||||||||||||
Gains (losses) (in millions) on derivative instruments designated and qualifying as fair value hedges were as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Gain (loss) recognized as a component of OCI with | ||||||||||||||||||
the offset to interest expense | $ | 4 | $ | 4 | $ | 4 | ||||||||||||
Information related to our open credit default swap liabilities for which we are the seller (dollars in millions) was as follows: | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Credit | ||||||||||||||||||
Reason | Nature | Rating of | Number | Maximum | ||||||||||||||
for | of | Underlying | of | Fair | Potential | |||||||||||||
Maturity | Entering | Recourse | Obligation (1) | Instruments | Value (2) | Payout | ||||||||||||
12/20/2016 (3) | -4 | -5 | BBB- | 3 | $ | -1 | $ | 68 | ||||||||||
3/20/2017 (3) | -4 | -5 | BBB- | 3 | -1 | 58 | ||||||||||||
6 | $ | -2 | $ | 126 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||
Credit | ||||||||||||||||||
Reason | Nature | Rating of | Number | Maximum | ||||||||||||||
for | of | Underlying | of | Fair | Potential | |||||||||||||
Maturity | Entering | Recourse | Obligation (1) | Instruments | Value (2) | Payout | ||||||||||||
12/20/2016 (3) | -4 | -5 | BBB- | 3 | $ | -4 | $ | 68 | ||||||||||
3/20/2017 (3) | -4 | -5 | BBB- | 4 | -7 | 80 | ||||||||||||
7 | $ | -11 | $ | 148 | ||||||||||||||
-1 | Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. | |||||||||||||||||
-2 | Broker quotes are used to determine the market value of our credit default swaps. | |||||||||||||||||
-3 | These credit default swaps were sold to a counterparty of the consolidated VIEs discussed in Note 4. | |||||||||||||||||
-4 | Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. | |||||||||||||||||
-5 | Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. | |||||||||||||||||
Details underlying the associated collateral of our open credit default swaps for which we are the seller if credit risk-related contingent features were triggered (in millions) were as follows: | ||||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Maximum potential payout | $ | 126 | $ | 148 | ||||||||||||||
Less: Counterparty thresholds | - | - | ||||||||||||||||
Maximum collateral potentially required to post | $ | 126 | $ | 148 | ||||||||||||||
Certain of our credit default swap agreements contain contractual provisions that allow for the netting of collateral with our counterparties related to all of our collateralized financing transactions that we have outstanding. If these netting agreements were not in place, we would have been required to post $2 million as of December 31, 2013, after considering the fair values of the associated investments counterparties’ credit ratings as compared to ours and specified thresholds that once exceeded result in the payment of cash. | ||||||||||||||||||
Credit Risk | ||||||||||||||||||
We are exposed to credit loss in the event of non-performance by our counterparties on various derivative contracts and reflect assumptions regarding the credit or NPR. The NPR is based upon assumptions for each counterparty’s credit spread over the estimated weighted average life of the counterparty exposure less collateral held. As of December 31, 2013, the NPR adjustment was $2 million. The credit risk associated with such agreements is minimized by purchasing such agreements from financial institutions with long-standing, superior performance records. Additionally, we maintain a policy of requiring all derivative contracts to be governed by an International Swaps and Derivatives Association (“ISDA”) Master Agreement. We are required to maintain minimum ratings as a matter of routine practice in negotiating ISDA agreements. Under some ISDA agreements, our insurance subsidiaries have agreed to maintain certain financial strength or claims-paying ratings. A downgrade below these levels could result in termination of derivative contracts, at which time any amounts payable by us would be dependent on the market value of the underlying derivative contracts. In certain transactions, we and the counterparty have entered into a credit support annex requiring either party to post collateral when net exposures exceed pre-determined thresholds. These thresholds vary by counterparty and credit rating. The amount of such exposure is essentially the net replacement cost or market value less collateral held for such agreements with each counterparty if the net market value is in our favor. As of December 31, 2013, our exposure was $69 million. | ||||||||||||||||||
The amounts recognized (in millions) by S&P credit rating of counterparty, for which we had the right to reclaim cash collateral or were obligated to return cash collateral, were as follows: | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Collateral | Collateral | Collateral | Collateral | |||||||||||||||
Posted by | Posted by | Posted by | Posted by | |||||||||||||||
S&P | Counter- | LNC | Counter- | LNC | ||||||||||||||
Credit | Party | (Held by | Party | (Held by | ||||||||||||||
Rating of | (Held by | Counter- | (Held by | Counter- | ||||||||||||||
Counterparty | LNC) | Party) | LNC) | Party) | ||||||||||||||
AA | $ | - | $ | - | $ | 41 | $ | - | ||||||||||
AA- | 34 | -10 | 58 | - | ||||||||||||||
A+ | 19 | - | 605 | - | ||||||||||||||
A | 339 | -183 | 770 | -68 | ||||||||||||||
A- | 468 | -123 | 1,214 | - | ||||||||||||||
BBB+ | 79 | - | - | - | ||||||||||||||
BBB | - | - | 4 | - | ||||||||||||||
$ | 939 | $ | -316 | $ | 2,692 | $ | -68 | |||||||||||
Balance Sheet Offsetting | ||||||||||||||||||
Information related to our derivative instruments, securities lending transactions and repurchase agreements and the effects of offsetting on our Consolidated Balance Sheets (in millions) were as follows: | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Securities | ||||||||||||||||||
Embedded | Lending and | |||||||||||||||||
Derivative | Derivative | Repurchase | ||||||||||||||||
Instruments | Instruments | Agreements | Total | |||||||||||||||
Financial Assets | ||||||||||||||||||
Gross amount of recognized assets | $ | 1,805 | $ | 1,244 | $ | - | $ | 3,049 | ||||||||||
Gross amounts offset | -924 | - | - | -924 | ||||||||||||||
Net amount of assets | 881 | 1,244 | - | 2,125 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | -623 | - | - | -623 | ||||||||||||||
Net amount | $ | 258 | $ | 1,244 | $ | - | $ | 1,502 | ||||||||||
Financial Liabilities | ||||||||||||||||||
Gross amount of recognized liabilities | $ | 242 | $ | 1,156 | $ | 2,600 | $ | 3,998 | ||||||||||
Gross amounts offset | -55 | - | - | -55 | ||||||||||||||
Net amount of liabilities | 187 | 1,156 | 2,600 | 3,943 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | - | - | -2,600 | -2,600 | ||||||||||||||
Net amount | $ | 187 | $ | 1,156 | $ | - | $ | 1,343 | ||||||||||
As of December 31, 2012 | ||||||||||||||||||
Securities | ||||||||||||||||||
Embedded | Lending and | |||||||||||||||||
Derivative | Derivative | Repurchase | ||||||||||||||||
Instruments | Instruments | Agreements | Total | |||||||||||||||
Financial Assets | ||||||||||||||||||
Gross amount of recognized assets | $ | 3,547 | $ | - | $ | - | $ | 3,547 | ||||||||||
Gross amounts offset | -895 | - | - | -895 | ||||||||||||||
Net amount of assets | 2,652 | - | - | 2,652 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | -2,624 | - | - | -2,624 | ||||||||||||||
Net amount | $ | 28 | $ | - | $ | - | $ | 28 | ||||||||||
Financial Liabilities | ||||||||||||||||||
Gross amount of recognized liabilities | $ | 11 | $ | 1,856 | $ | 1,614 | $ | 3,481 | ||||||||||
Gross amounts offset | - | - | - | - | ||||||||||||||
Net amount of liabilities | 11 | 1,856 | 1,614 | 3,481 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | - | - | -1,614 | -1,614 | ||||||||||||||
Net amount | $ | 11 | $ | 1,856 | $ | - | $ | 1,867 | ||||||||||
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Federal Income Taxes [Abstract] | ' | |||||||||
Federal Income Taxes | ' | |||||||||
7. Federal Income Taxes | ||||||||||
The federal income tax expense (benefit) on continuing operations (in millions) was as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Current | $ | 169 | $ | 23 | $ | 13 | ||||
Deferred | 218 | 259 | 261 | |||||||
Federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
A reconciliation of the effective tax rate differences (in millions) was as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Tax rate times pre-tax income | $ | 571 | $ | 549 | $ | 176 | ||||
Effect of: | ||||||||||
Tax-preferred investment income | -160 | -141 | -144 | |||||||
Tax credits | -35 | -34 | -34 | |||||||
Goodwill | - | -2 | 260 | |||||||
Change in uncertain tax positions | 7 | -94 | 8 | |||||||
Other items | 4 | 4 | 8 | |||||||
Federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
Effective tax rate | 24% | 18% | 55% | |||||||
The effective tax rate is the ratio of tax expense over pre-tax income (loss). The tax-preferred investment income relates primarily to separate account dividends-received deductions. The separate account dividends-received deduction benefit was $145 million, $128 million and $135 million for the years ended December 31, 2013, 2012 and 2011. | ||||||||||
The federal income tax asset (liability) (in millions) was as follows: | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Current | $ | -186 | $ | -27 | ||||||
Deferred | -1,966 | -2,982 | ||||||||
Total federal income tax asset (liability) | $ | -2,152 | $ | -3,009 | ||||||
Significant components of our deferred tax assets and liabilities (in millions) were as follows: | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Deferred Tax Assets | ||||||||||
Future contract benefits and other contract holder funds | $ | 1,225 | $ | 1,189 | ||||||
Deferred gain on business sold through reinsurance | 87 | 96 | ||||||||
Reinsurance related embedded derivative asset | 36 | 75 | ||||||||
Investments | 85 | 311 | ||||||||
Compensation and benefit plans | 319 | 293 | ||||||||
Net operating loss | 27 | 26 | ||||||||
Net capital loss | - | 32 | ||||||||
Tax credits | 201 | 222 | ||||||||
VIE | 4 | 35 | ||||||||
Other | 79 | 41 | ||||||||
Total deferred tax assets | 2,063 | 2,320 | ||||||||
Deferred Tax Liabilities | ||||||||||
DAC | 1,914 | 1,332 | ||||||||
VOBA | 409 | 246 | ||||||||
Net unrealized gain on AFS securities | 1,319 | 3,283 | ||||||||
Net unrealized gain on trading securities | 89 | 150 | ||||||||
Intangibles | 146 | 157 | ||||||||
Other | 152 | 134 | ||||||||
Total deferred tax liabilities | 4,029 | 5,302 | ||||||||
Net deferred tax asset (liability) | $ | -1,966 | $ | -2,982 | ||||||
As of December 31, 2013, the Company had $78 million of net operating loss carryforwards that begin to expire in 2031. In addition, the Company had $119 million of alternative minimum tax credits that are not subject to expiration and $82 million of general business credits that begin to expire in 2030. | ||||||||||
Although realization is not assured, management believes that it is more likely than not that the Company will realize the benefits of its deferred tax assets, and, accordingly, no valuation allowance has been recorded. | ||||||||||
As of December 31, 2013 and 2012, $74 million and $69 million, respectively, of our unrecognized tax benefits presented below, if recognized, would have affected our income tax expense and our effective tax rate. The Company is not aware of any events for which it is likely that unrecognized tax benefits will significantly increase or decrease within the next year. A reconciliation of the unrecognized tax benefits (in millions) was as follows: | ||||||||||
For the Years Ended | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Balance as of beginning-of-year | $ | 77 | $ | 211 | ||||||
Decreases for prior year tax positions | - | -49 | ||||||||
Increases for current year tax positions | 5 | 5 | ||||||||
Decreases for settlements with taxing authorities | - | -2 | ||||||||
Decreases for lapse of statute of limitations | - | -88 | ||||||||
Balance as of end-of-year | $ | 82 | $ | 77 | ||||||
We recognize interest and penalties accrued, if any, related to unrecognized tax benefits as a component of tax expense. For the years ended December 31, 2013, 2012 and 2011, we recognized interest and penalty expense (benefit) related to uncertain tax positions of $2 million, $(61) million and $6 million, respectively. We had accrued interest and penalty expense related to the unrecognized tax benefits of $13 million and $11 million as of December 31, 2013 and 2012, respectively. | ||||||||||
The Company is subject to examination by U.S. federal, state, local and non-U.S. income authorities. The Company is currently under examination by the Internal Revenue Service (“IRS”) for tax years 2009 through 2011. The IRS concluded its examination of tax years 2007 and 2008 on January 18, 2013. The Company has protested the final assessment, which is being combined with tax years 2005 and 2006 in IRS Appeals. The IRS also completed its examination of tax years 2005 and 2006, and 2006 of the former Jefferson-Pilot Corporation (“JP”) and its subsidiaries during 2010. The Company believes a portion of the 2005 through 2008 assessments is inconsistent with current laws and is using the established IRS Appeals process to attempt to settle the remaining issues. The IRS also concluded its examination of non-consolidated returns for JP Life Insurance Company and JP Financial Insurance Company for the tax years ended April 1, 2007, and July 1, 2007, respectively, with agreement on all adjustments on January 18, 2013. The Company does not expect any adjustments that might result from those audits would be material to its consolidated results of operations or its financial condition. | ||||||||||
DAC_VOBA_DSI_and_DFEL
DAC, VOBA, DSI and DFEL | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
DAC, VOBA, DSI and DFEL | ' | |||||||||
8. DAC, VOBA, DSI and DFEL | ||||||||||
Changes in DAC (in millions) were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 5,943 | $ | 5,721 | $ | 6,036 | ||||
Deferrals | 1,564 | 1,294 | 1,375 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -816 | -785 | -687 | |||||||
Unlocking | 42 | -71 | -130 | |||||||
Adjustment related to realized (gains) losses | -8 | -70 | -18 | |||||||
Adjustment related to unrealized (gains) losses | 970 | -146 | -855 | |||||||
Balance as of end-of-year | $ | 7,695 | $ | 5,943 | $ | 5,721 | ||||
Changes in VOBA (in millions) were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 724 | $ | 1,055 | $ | 1,378 | ||||
Business acquired (sold) through reinsurance | 4 | 2 | 12 | |||||||
Deferrals | 13 | 12 | 20 | |||||||
Amortization: | ||||||||||
Amortization, excluding unlocking | -179 | -225 | -279 | |||||||
Unlocking | -52 | -23 | 174 | |||||||
Accretion of interest (1) | 68 | 73 | 78 | |||||||
Adjustment related to realized (gains) losses | -1 | 9 | -6 | |||||||
Adjustment related to unrealized (gains) losses | 614 | -179 | -322 | |||||||
Balance as of end-of-year | $ | 1,191 | $ | 724 | $ | 1,055 | ||||
-1 | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%. | |||||||||
Estimated future amortization of VOBA, net of interest (in millions), as of December 31, 2013, was as follows: | ||||||||||
2014 | $ | 85 | ||||||||
2015 | 78 | |||||||||
2016 | 71 | |||||||||
2017 | 68 | |||||||||
2018 | 68 | |||||||||
Changes in DSI (in millions) were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 253 | $ | 271 | $ | 286 | ||||
Deferrals | 10 | 39 | 39 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -43 | -46 | -38 | |||||||
Unlocking | 8 | 14 | -2 | |||||||
Adjustment related to realized (gains) losses | -1 | -8 | -1 | |||||||
Adjustment related to unrealized (gains) losses | 40 | -17 | -13 | |||||||
Balance as of end-of-year | $ | 267 | $ | 253 | $ | 271 | ||||
Changes in DFEL (in millions) were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 1,373 | $ | 1,369 | $ | 1,502 | ||||
Deferrals | 320 | 349 | 544 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -216 | -216 | -166 | |||||||
Unlocking | -14 | -69 | 31 | |||||||
Adjustment related to realized (gains) losses | -2 | -18 | -9 | |||||||
Adjustment related to unrealized (gains) losses | 477 | -42 | -533 | |||||||
Balance as of end-of-year | $ | 1,938 | $ | 1,373 | $ | 1,369 | ||||
Reinsurance
Reinsurance | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Reinsurance | ' | |||||||||
9. Reinsurance | ||||||||||
The following summarizes reinsurance amounts (in millions) recorded on our Consolidated Statements of Comprehensive Income (Loss), excluding amounts attributable to the indemnity reinsurance transaction with Swiss Re: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Direct insurance premiums and fee income | $ | 8,023 | $ | 7,379 | $ | 6,997 | ||||
Reinsurance assumed | 8 | 9 | 10 | |||||||
Reinsurance ceded | -1,275 | -1,190 | -1,276 | |||||||
Total insurance premiums and fee income | $ | 6,756 | $ | 6,198 | $ | 5,731 | ||||
Direct insurance benefits | $ | 5,487 | $ | 5,095 | $ | 4,897 | ||||
Reinsurance recoveries netted against benefits | -1,625 | -1,554 | -1,552 | |||||||
Total benefits | $ | 3,862 | $ | 3,541 | $ | 3,345 | ||||
Our insurance companies cede insurance to other companies. The portion of our life insurance and annuity risks exceeding each of our insurance companies’ retention limit is reinsured with other insurers. We seek reinsurance coverage to limit our exposure to mortality losses and to enhance our capital management. | ||||||||||
Under our reinsurance program, we reinsure 26% to 33% of the mortality risk on newly issued non-term life insurance contracts and 23% to 27% of total mortality risk including term insurance contracts. Our policy for this program is to retain no more than $20 million on a single insured life issued on fixed, VUL and term life insurance contracts. Portions of our deferred annuity business have been reinsured on a Modco basis with other companies to limit our exposure to interest rate risks. As of December 31, 2013, the reserves associated with these reinsurance arrangements totaled $742 million. | ||||||||||
Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers. The amounts recoverable from reinsurers were $6.0 billion and $6.4 billion as of December 31, 2013 and 2012, respectively. We focus on obtaining reinsurance from a diverse group of reinsurers, and we monitor concentration as well as financial strength ratings of our reinsurers. Our reinsurance operations were acquired by Swiss Re in December 2001 through a series of indemnity reinsurance transactions. As such, Swiss Re reinsured certain of our liabilities and obligations under the indemnity reinsurance agreements and thereby represents our largest reinsurance exposure. As we are not relieved of our liability to the ceding companies for this business, the liabilities and obligations associated with the reinsured policies remain on our Consolidated Balance Sheets with a corresponding reinsurance receivable from Swiss Re, which totaled $2.6 billion and $2.8 billion as of December 31, 2013 and 2012, respectively. Swiss Re has funded a trust, with a balance of $2.2 billion as of December 31, 2013, to support this business. In addition to various remedies that we would have in the event of a default by Swiss Re, we continue to hold assets in support of certain of the transferred reserves. These assets consist of those reported as trading securities and certain mortgage loans. Our liabilities for funds withheld and embedded derivatives as of December 31, 2013, included $867 million and $92 million, respectively, related to the business sold to Swiss Re. | ||||||||||
We recorded the gain related to the indemnity reinsurance transactions with Swiss Re as a deferred gain on business sold through reinsurance on our Consolidated Balance Sheets. The deferred gain is being amortized into income at the rate that earnings on the reinsured business are expected to emerge, over a period of 15 years from the date of sale. During 2013, 2012 and 2011, we amortized $48 million, $48 million and $49 million, after-tax, respectively, of deferred gain on business sold through reinsurance. | ||||||||||
Goodwill_and_Specifically_Iden
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||||
Goodwill and Specifically Identifiable Intangible Assets | ' | ||||||||||||||||
10. Goodwill and Specifically Identifiable Intangible Assets | |||||||||||||||||
The changes in the carrying amount of goodwill (in millions) by reportable segment were as follows: | |||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Acquisition | Cumulative | ||||||||||||||||
Balance | Impairment | ||||||||||||||||
as of | as of | Balance | |||||||||||||||
Beginning- | Beginning- | as of End- | |||||||||||||||
of-Year | of-Year | Impairment | of-Year | ||||||||||||||
Annuities | $ | 1,040 | $ | -600 | $ | - | $ | 440 | |||||||||
Retirement Plan Services | 20 | - | - | 20 | |||||||||||||
Life Insurance | 2,188 | -649 | - | 1,539 | |||||||||||||
Group Protection | 274 | - | - | 274 | |||||||||||||
Other Operations – Media | 341 | -341 | - | - | |||||||||||||
Total goodwill | $ | 3,863 | $ | -1,590 | $ | - | $ | 2,273 | |||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Acquisition | Cumulative | ||||||||||||||||
Balance | Impairment | ||||||||||||||||
as of | as of | Balance | |||||||||||||||
Beginning- | Beginning- | as of End- | |||||||||||||||
of-Year | of-Year | Impairment | of-Year | ||||||||||||||
Annuities | $ | 1,040 | $ | -600 | $ | - | $ | 440 | |||||||||
Retirement Plan Services | 20 | - | - | 20 | |||||||||||||
Life Insurance | 2,188 | -649 | - | 1,539 | |||||||||||||
Group Protection | 274 | - | - | 274 | |||||||||||||
Other Operations – Media | 341 | -341 | - | - | |||||||||||||
Total goodwill | $ | 3,863 | $ | -1,590 | $ | - | $ | 2,273 | |||||||||
We perform a Step 1 goodwill impairment analysis on all of our reporting units at least annually on October 1. To determine the implied fair value for our reporting units, we utilize primarily a discounted cash flow valuation technique (“income approach”), although limited available market data is also considered. In determining the estimated fair value, we consider discounted cash flow calculations, the level of our own share price and assumptions that market participants would make in valuing the reporting unit. This analysis requires us to make judgments about revenues, earnings projections, capital market assumptions and discount rates. | |||||||||||||||||
As of October 1, 2013, our Annuities and Retirement Plan Services reporting units passed the Step 1 analysis. Given the Step 1 results, we performed a Step 2 analysis for our Life Insurance and Group Protection reporting units. Based upon our Step 2 analysis for Life Insurance and Group Protection, we determined that there was no impairment due to the implied fair value of goodwill being in excess of the carrying value of goodwill. | |||||||||||||||||
As of October 1, 2012, our Annuities, Retirement Plan Services and Group Protection reporting units passed the Step 1 analysis, and although the carrying value of the net assets for Group Protection was within the estimated fair value range, we deemed it prudent to validate the carrying value of goodwill through a Step 2 analysis. Given the Step 1 results, we also performed a Step 2 analysis for our Life Insurance reporting unit. Based upon our Step 2 analysis for Life Insurance and Group Protection, we determined that there was no impairment due to the implied fair value of goodwill being in excess of the carrying value of goodwill. | |||||||||||||||||
As of October 1, 2011, our Annuities, Retirement Plan Services and Group Protection reporting units passed the Step 1 analysis, and although the carrying value of the net assets for Group Protection was within the estimated fair value range, we deemed it prudent to validate the carrying value of goodwill through a Step 2 analysis. Given the Step 1 results, we also performed a Step 2 analysis for our Life Insurance and Media reporting units. Based upon our Step 2 analysis for Life Insurance, we recorded a goodwill impairment that was attributable primarily to marketplace dynamics and lower expectations associated with product changes that we have implemented or will implement shortly that we believe will have an unfavorable effect on our sales levels for a period of time. Based upon our Step 2 analysis for Group Protection, we determined that there was no impairment due to the implied fair value of goodwill being in excess of the carrying value of goodwill. Based upon our Step 2 analysis for Media, we recorded a goodwill impairment that was primarily a result of the deterioration in operating environment and outlook for the business. | |||||||||||||||||
The gross carrying amounts and accumulated amortization (in millions) for each major specifically identifiable intangible asset class by reportable segment were as follows: | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Gross | Gross | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Life Insurance: | |||||||||||||||||
Sales force | $ | 100 | $ | 31 | $ | 100 | $ | 27 | |||||||||
Retirement Plan Services: | |||||||||||||||||
Mutual fund contract rights (1) | 5 | - | 5 | - | |||||||||||||
Other Operations: | |||||||||||||||||
FCC licenses (1) | 131 | - | 129 | - | |||||||||||||
Other | 4 | 3 | 4 | 3 | |||||||||||||
Total | $ | 240 | $ | 34 | $ | 238 | $ | 30 | |||||||||
-1 | No amortization recorded as the intangible asset has indefinite life. | ||||||||||||||||
Future estimated amortization of specifically identifiable intangible assets (in millions) as of December 31, 2013, was as follows: | |||||||||||||||||
2014 | $ | 4 | |||||||||||||||
2015 | 4 | ||||||||||||||||
2016 | 4 | ||||||||||||||||
2017 | 4 | ||||||||||||||||
2018 | 4 | ||||||||||||||||
Thereafter | 50 | ||||||||||||||||
Guaranteed_Benefit_Features
Guaranteed Benefit Features | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Guaranteed Benefit Features [Abstract] | ' | |||||||||
Guaranteed Benefit Features | ' | |||||||||
11. Guaranteed Benefit Features | ||||||||||
Information on the GDB features outstanding (dollars in millions) was as follows (our variable contracts with guarantees may offer more than one type of guarantee in each contract; therefore, the amounts listed are not mutually exclusive): | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Return of Net Deposits | ||||||||||
Total account value | $ | 79,391 | $ | 63,478 | ||||||
Net amount at risk (1) | 141 | 392 | ||||||||
Average attained age of contract holders | 61 years | 60 years | ||||||||
Minimum Return | ||||||||||
Total account value | $ | 151 | $ | 149 | ||||||
Net amount at risk (1) | 27 | 37 | ||||||||
Average attained age of contract holders | 73 years | 73 years | ||||||||
Guaranteed minimum return | 5% | 5% | ||||||||
Anniversary Contract Value | ||||||||||
Total account value | $ | 25,958 | $ | 23,019 | ||||||
Net amount at risk (1) | 570 | 1,133 | ||||||||
Average attained age of contract holders | 68 years | 67 years | ||||||||
(1) Represents the amount of death benefit in excess of the account balance. The decrease in net amount at risk when comparing | ||||||||||
December 31, 2013, to December 31, 2012, was attributable primarily to the increase in the equity markets during 2013. | ||||||||||
The determination of GDB liabilities is based on models that involve a range of scenarios and assumptions, including those regarding expected market rates of return and volatility, contract surrender rates and mortality experience. The following summarizes the balances of and changes in the liabilities for GDBs (in millions), which were recorded in future contract benefits on our Consolidated Balance Sheets: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 104 | $ | 84 | $ | 44 | ||||
Changes in reserves | -10 | 64 | 93 | |||||||
Benefits paid | -21 | -44 | -53 | |||||||
Balance as of end-of-year | $ | 73 | $ | 104 | $ | 84 | ||||
Variable Annuity Contracts | ||||||||||
Account balances of variable annuity contracts with guarantees (in millions) were invested in separate account investment options as follows: | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Asset Type | ||||||||||
Domestic equity | $ | 47,042 | $ | 37,899 | ||||||
International equity | 18,341 | 14,850 | ||||||||
Bonds | 24,547 | 21,174 | ||||||||
Money market | 10,926 | 7,747 | ||||||||
Total | $ | 100,856 | $ | 81,670 | ||||||
Percent of total variable annuity | ||||||||||
separate account values | 98% | 98% | ||||||||
Secondary Guarantee Products | ||||||||||
Future contract benefits also includes reserves for our secondary guarantee products sold through our Life Insurance segment. These UL and VUL products with secondary guarantees represented 28% of total life insurance in-force reserves as of December 31, 2013, and 35% of total sales for the year ended December 31, 2013. | ||||||||||
ShortTerm_and_LongTerm_Debt
Short-Term and Long-Term Debt | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Short-Term and Long-Term Debt | ' | ||||||||
12. Short-Term and Long-Term Debt | |||||||||
Details underlying short-term and long-term debt (in millions) were as follows: | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Short-Term Debt | |||||||||
Current maturities of long-term debt | $ | 500 | $ | 200 | |||||
Unamortized premiums (discounts) | 1 | - | |||||||
Total short-term debt | $ | 501 | $ | 200 | |||||
Long-Term Debt, Excluding Current Portion | |||||||||
Senior notes: | |||||||||
4.75% notes, due 2014 | $ | - | $ | 300 | |||||
4.75% notes, due 2014 | - | 200 | |||||||
4.30% notes, due 2015 (1) | 250 | 250 | |||||||
LIBOR + 3 bps notes, due 2017 (2) | 250 | 250 | |||||||
7.00% notes, due 2018 | 200 | 200 | |||||||
LIBOR + 110 bps loan, due 2018 | 250 | - | |||||||
8.75% notes, due 2019 (1) | 487 | 487 | |||||||
6.25% notes, due 2020 (1) | 300 | 300 | |||||||
4.85% notes, due 2021 (1) | 300 | 300 | |||||||
4.20% notes, due 2022 (1) | 300 | 300 | |||||||
4.00% notes, due 2023 (1) | 350 | - | |||||||
6.15% notes, due 2036 (1) | 498 | 498 | |||||||
6.30% notes, due 2037 (1)(2) | 375 | 375 | |||||||
7.00% notes, due 2040 (1)(2) | 500 | 500 | |||||||
Total senior notes | 4,060 | 3,960 | |||||||
Capital securities: | |||||||||
7.00%, due 2066 | 722 | 722 | |||||||
6.05%, due 2067 | 491 | 491 | |||||||
Total capital securities | 1,213 | 1,213 | |||||||
Unamortized premiums (discounts) | -12 | -3 | |||||||
Fair value hedge – interest rate swap agreements | 59 | 269 | |||||||
Total unamortized premiums (discounts) and fair value | |||||||||
hedge – interest rate swap agreements | 47 | 266 | |||||||
Total long-term debt | $ | 5,320 | $ | 5,439 | |||||
-1 | We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. | ||||||||
-2 | Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. | ||||||||
Details underlying the recognition of a gain (loss) on the extinguishment of debt (in millions) reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss) were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Principal balance outstanding prior to payoff (1) | $ | - | $ | 15 | $ | 275 | |||
Unamortized debt issuance costs and discounts prior to payoff | - | - | -8 | ||||||
Amount paid to retire | - | -20 | -275 | ||||||
Gain (loss) on extinguishment of debt, pre-tax | $ | - | $ | -5 | $ | -8 | |||
-1 | During the fourth quarter of 2012, we repurchased $13 million of our 8.75% senior notes due 2019 and $2 million of our 6.15% senior notes due 2036. During the third quarter of 2011, we repurchased all of our 6.75% capital securities due 2066. | ||||||||
Future principal payments due on long-term debt (in millions) as of December 31, 2013, were as follows: | |||||||||
2014 | $ | 500 | |||||||
2015 | 250 | ||||||||
2016 | - | ||||||||
2017 | 250 | ||||||||
2018 | 450 | ||||||||
Thereafter | 4,323 | ||||||||
Total | $ | 5,773 | |||||||
For our long-term debt outstanding, unsecured senior debt, which consists of senior notes, fixed-rate notes and other notes with varying interest rates, ranks highest in priority, followed by capital securities. | |||||||||
Credit Facilities and Letters of Credit (“LOCs”) | |||||||||
Credit facilities, which allow for borrowing or issuances of LOCs, and LOCs (in millions) were as follows: | |||||||||
As of December 31, 2013 | |||||||||
Expiration | Maximum | LOCs | |||||||
Date | Available | Issued | |||||||
Credit Facilities | |||||||||
Five-year revolving credit facility | May-18 | $ | 2,500 | $ | 866 | ||||
LOC facility | Mar-23 | 156 | 156 | ||||||
LOC facility | Mar-23 | 883 | 848 | ||||||
LOC facility | Aug-31 | 805 | 791 | ||||||
LOC facility | Oct-31 | 996 | 996 | ||||||
Total | $ | 5,340 | $ | 3,657 | |||||
Effective as of May 29, 2013, we entered into a credit agreement with a syndicate of banks. This agreement (the “credit facility”) allows for the issuance of LOCs of up to $2.5 billion and borrowing of up to $2.5 billion, $1.75 billion of which is available only to reimburse the banks for drawn LOCs. The credit facility is unsecured and has a commitment termination date of May 29, 2018. The LOCs support inter-company reinsurance transactions and specific treaties associated with our business sold through reinsurance. LOCs are used primarily to satisfy the U.S. regulatory requirements of our domestic insurance companies for which reserve credit is provided by our affiliated reinsurance companies and our domestic clients of the business sold through reinsurance. | |||||||||
The credit facility contains or includes: | |||||||||
· | Customary terms and conditions, including covenants restricting our ability to incur liens, merge or consolidate with another entity where we are not the surviving entity and dispose of all or substantially all of our assets; | ||||||||
· | Financial covenants including maintenance of a minimum consolidated net worth (as defined in the facility) equal to the sum of $9.4 billion plus 50% of the aggregate net proceeds of equity issuances received by us in accordance with the terms of the credit facility; and a debt-to-capital ratio as defined in accordance with the credit facility not to exceed 0.35 to 1.00; and | ||||||||
· | Customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. | ||||||||
Upon an event of default, the credit facility provides that, among other things, the commitments may be terminated and the loans then outstanding may be declared due and payable. As of December 31, 2013, we were in compliance with all such covenants. | |||||||||
This credit facility replaced our previous four-year credit facility dated as of June 10, 2011, that was scheduled to expire on June 10, 2015. | |||||||||
On December 23, 2013, we entered into a credit facility agreement with a third-party lender. Under the agreement, the lender issued an irrevocable LOC effective December 23, 2013, with a maximum scheduled LOC amount of up to approximately $156 million. The LOC supports certain fees owed to another third-party lender and is automatically renewable until March 31, 2023. On October 30, 2012, one of our wholly-owned subsidiaries amended and restated the credit facility agreement entered into on November 1, 2011, with a third-party lender. Under the amended and restated agreement, the lender issued an irrevocable LOC effective October 30, 2012, with a maximum scheduled LOC amount of up to approximately $1.0 billion. The LOC supports an inter-company reinsurance agreement and expires October 1, 2031. On August 20, 2012, one of our wholly-owned subsidiaries amended the credit facility agreement entered into on August 26, 2011, with a third-party lender. Under the amended agreement, the lender issued an irrevocable LOC effective August 20, 2012, with a maximum scheduled LOC amount of up to approximately $863 million. The LOC supports an inter-company reinsurance agreement and expires August 26, 2031. On April 28, 2011, certain of our wholly-owned subsidiaries amended and restated the reimbursement agreement entered into on December 31, 2009, with a third-party lender. Under the amended agreement, the lender issued an irrevocable LOC effective April 1, 2011, with a maximum scheduled LOC amount of up to approximately $925 million. The LOC supports an inter-company reinsurance agreement and expires March 31, 2023. | |||||||||
These agreements each contain customary terms and conditions, including early termination fees, covenants restricting the ability of the subsidiaries to incur liens, merge or consolidate with another entity and dispose of all or substantially all of their assets. Upon an event of early termination, the agreements require the immediate payment of all or a portion of the present value of the future LOC fees that would have otherwise been paid. Further, the agreements contain customary events of default, subject to certain materiality thresholds and grace periods for certain of those events of default. The events of default include payment defaults, covenant defaults, material inaccuracies in representations and warranties, bankruptcy and liquidation proceedings and other customary defaults. Upon an event of default, the agreements provide that, among other things, obligations to issue, amend or increase the amount of any LOC shall be terminated and any obligations shall become immediately due and payable. As of December 31, 2013, we were in compliance with all such covenants. | |||||||||
Effective October 1, 2013, one of our wholly-owned subsidiaries entered into a third-party financing arrangement that supports an inter-company reinsurance agreement. The arrangement provides for a maximum scheduled financing capacity of up to $700 million and expires on October 1, 2028. | |||||||||
Shelf Registration | |||||||||
We currently have an effective shelf registration statement, which allows us to issue, in unlimited amounts, securities, including debt securities, preferred stock, common stock, warrants, stock purchase contracts, stock purchase units and trust preferred securities of our affiliated trusts. | |||||||||
Certain Debt Covenants on Capital Securities | |||||||||
Our $1.2 billion in principal amount of capital securities outstanding contain certain covenants that require us to make interest payments in accordance with an alternative coupon satisfaction mechanism (“ACSM”) if we determine that one of the following trigger events exists as of the 30th day prior to an interest payment date (“determination date”): | |||||||||
· | LNL’s risk-based capital ratio is less than 175% (based on the most recent annual financial statement filed with the State of Indiana); or | ||||||||
· | (i) The sum of our consolidated net income for the four trailing fiscal quarters ending on the quarter that is two quarters prior to the most recently completed quarter prior to the determination date is zero or negative; and (ii) our consolidated stockholders’ equity (excluding accumulated other comprehensive income and any increase in stockholders’ equity resulting from the issuance of preferred stock during a quarter), or “adjusted stockholders’ equity,” as of (x) the most recently completed quarter and (y) the end of the quarter that is two quarters before the most recently completed quarter, has declined by 10% or more as compared to the quarter that is 10 fiscal quarters prior to the last completed quarter, or the “benchmark quarter.” | ||||||||
The ACSM would generally require us to use commercially reasonable efforts to satisfy our obligation to pay interest in full on the capital securities with the net proceeds from sales of our common stock and warrants to purchase our common stock with an exercise price greater than the market price. We would have to utilize the ACSM until the trigger events no longer existed. Our failure to pay interest pursuant to the ACSM will not result in an event of default with respect to the capital securities nor will a nonpayment of interest unless it lasts for 10 consecutive years, although such breaches may result in monetary damages to the holders of the capital securities. | |||||||||
Contingencies_and_Commitments
Contingencies and Commitments | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Contingencies and Commitments [Abstract] | ' | |||
Contingencies and Commitments | ' | |||
13. Contingencies and Commitments | ||||
Contingencies | ||||
Regulatory and Litigation Matters | ||||
Regulatory bodies, such as state insurance departments, the Securities and Exchange Commission, Financial Industry Regulatory Authority and other regulatory bodies regularly make inquiries and conduct examinations or investigations concerning our compliance with, among other things, insurance laws, securities laws, laws governing the activities of broker-dealers, registered investment advisors and unclaimed property laws. | ||||
LNC and its subsidiaries are involved in various pending or threatened legal or regulatory proceedings, including purported class actions, arising from the conduct of business both in the ordinary course and otherwise. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experiences of LNC in litigating or resolving through settlement numerous claims over an extended period of time, demonstrates to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. | ||||
Due to the unpredictable nature of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time is normally difficult to ascertain. Uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. | ||||
We establish liabilities for litigation and regulatory loss contingencies when information related to the loss contingencies shows both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some matters could require us to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2013. While the potential future charges could be material in the particular quarterly or annual periods in which they are recorded, based on information currently known by management, management does not believe any such charges are likely to have a material adverse effect on LNC’s financial condition. | ||||
For some matters, the Company is able to estimate a reasonably possible range of loss. For such matters in which a loss is probable, an accrual has been made. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. Accordingly, the estimate contained in this paragraph reflects two types of matters. For some matters included within this estimate, an accrual has been made, but there is a reasonable possibility that an exposure exists in excess of the amount accrued. In these cases, the estimate reflects the reasonably possible range of loss in excess of the accrued amount. For other matters included within this estimation, no accrual has been made because a loss, while potentially estimable, is believed to be reasonably possible but not probable. In these cases, the estimate reflects the reasonably possible loss or range of loss. As of December 31, 2013, we estimate the aggregate range of reasonably possible losses, including amounts in excess of amounts accrued for these matters as of such date, to be up to approximately $220 million. | ||||
For other matters, we are not currently able to estimate the reasonably possible loss or range of loss. We are often unable to estimate the possible loss or range of loss until developments in such matters have provided sufficient information to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, we review relevant information with respect to litigation contingencies and update our accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | ||||
On June 13, 2009, a single named plaintiff filed a putative national class action in the Circuit Court of Allen County, Indiana, captioned Peter S. Bezich v. LNL, No. 02C01-0906-PL73, asserting he was charged a cost-of-insurance fee that exceeded the applicable mortality charge, and that this fee breached the terms of the insurance contract. We dispute the allegations and are vigorously defending this matter. Plaintiffs have filed a motion for class certification. We expect a hearing on class certification in the first half of 2014. | ||||
On July 23, 2012, LNL was added as a noteholder defendant to a putative class action adversary proceeding (“adversary proceeding”) captioned Lehman Brothers Special Financing, Inc. v. Bank of America, N.A. et al., Adv. Pro. No. 10-03547 (JMP) and instituted under In re Lehman Brothers Holdings Inc. in the United States Bankruptcy Court in the Southern District of New York. Plaintiff Lehman Brothers Special Financing Inc. seeks to (i) overturn the application of certain priority of payment provisions in 47 collateralized debt obligation transactions on the basis such provisions are unenforceable under the Bankruptcy Code; and (ii) recover funds paid out to noteholders in accordance with the note agreements. The adversary proceeding is stayed through May 20, 2014, and LNL’s response is currently due by the middle of 2014. | ||||
During 2013, we entered into a Global Resolution Agreement with multiple states’ treasury and controller offices for compliance with laws and regulations concerning the identification, reporting and escheatment of unclaimed contract benefits or abandoned funds. Under the terms of the Global Resolution Agreement, a third-party auditor acting on behalf of the signatory states will compare expanded matching criteria to the Social Security Death Master File (“SSDMF”) to identify deceased insureds and contract holders where a valid claim has not been made. In addition, we entered into a Regulatory Settlement Agreement with the insurance regulators of seven states to settle regulatory inquiries and examinations with respect to our processes for identifying and paying claims and benefits in the future. As part of the settlement, we have agreed to reimburse the participating states $12.6 million for the costs of such examinations. The Regulatory Settlement Agreement applies prospectively and requires us to adopt and implement additional procedures comparing our records to the SSDMF to identify unclaimed death benefits, and prescribes procedures for identifying and locating beneficiaries once deaths are identified. Other jurisdictions that are not signatories to the Regulatory Settlement Agreement are considering proposals that would apply prospectively and require life insurance companies to take additional steps to identify unreported deceased policy and contract holders. These prospective changes and any escheatable property identified as a result of the audits and inquiries could result in: (1) additional payments of previously unclaimed death benefits; (2) the payment of abandoned funds to U.S. jurisdictions; and (3) changes in the Company’s practices and procedures for the identification of escheatable funds and beneficiaries, which would impact claim payments and reserves, among other consequences. | ||||
Commitments | ||||
Leases | ||||
Certain subsidiaries of ours lease their home office properties. In 2006, we exercised the right and option to extend the Fort Wayne lease for two extended terms such that the lease shall expire in 2019. We retain our right and option to exercise the remaining four extended terms of five years each in accordance with the lease agreement. These agreements also provide us with the right of first refusal to purchase the properties at a price defined in the agreements and the option to purchase the leased properties at fair market value on the last day of any renewal period. In 2012, we exercised the right and option to extend the Hartford lease for one extended term such that the lease shall expire in 2018. During 2007, we moved our corporate headquarters to Radnor, Pennsylvania from Philadelphia, Pennsylvania and entered into a new 13-year lease for office space. | ||||
Total rental expense on operating leases for the years ended December 31, 2013, 2012 and 2011, was $44 million, $43 million and $42 million, respectively. Future minimum rental commitments (in millions) as of December 31, 2013, were as follows: | ||||
2014 | $ | 42 | ||
2015 | 38 | |||
2016 | 34 | |||
2017 | 28 | |||
2018 | 20 | |||
Thereafter | 32 | |||
Total | $ | 194 | ||
Football Stadium Naming Rights Commitment | ||||
In 2002, we entered into an agreement with the Philadelphia Eagles to name the Eagles’ new stadium Lincoln Financial Field. In exchange for the naming rights, we agreed to pay $140 million over a 20-year period through annual payments to the Philadelphia Eagles, which average approximately $7 million per year. The total amount includes a maximum annual increase related to the Consumer Price Index. This future commitment has not been recorded as a liability on our Consolidated Balance Sheets as it is being accounted for in a manner consistent with the accounting for operating leases under the Leases Topic of the FASB ASC. | ||||
Vulnerability from Concentrations | ||||
As of December 31, 2013, we did not have a concentration of: business transactions with a particular customer or lender; sources of supply of labor or services used in the business; or a market or geographic area in which business is conducted that makes us vulnerable to an event that is at least reasonably possible to occur in the near term and which could cause a severe impact to our financial condition. | ||||
Although we do not have any significant concentration of customers, our American Legacy Variable Annuity (“ALVA”) product offered in our Annuities segment is significant to this segment. The ALVA product accounted for 17%, 19% and 22% of Annuities’ variable annuity product deposits in 2013, 2012 and 2011, respectively, and represented approximately 47%, 50% and 54% of the segment’s total variable annuity product account values as of December 31, 2013, 2012 and 2011, respectively. In addition, fund choices for certain of our other variable annuity products offered in our Annuities segment include American Fund Insurance SeriesSM (“AFIS”) funds. For the Annuities segment, AFIS funds accounted for 19%, 21% and 27% of variable annuity product deposits in 2013, 2012 and 2011, respectively, and represented 54%, 58% and 62% of the segment’s total variable annuity product account values as of December 31, 2013, 2012 and 2011, respectively. | ||||
Other Contingency Matters | ||||
State guaranty funds assess insurance companies to cover losses to contract holders of insolvent or rehabilitated companies. Mandatory assessments may be partially recovered through a reduction in future premium taxes in some states. We have accrued for expected assessments and the related reductions in future state premium taxes, which net to assessments (recoveries) of $(6) million and $34 million as of December 31, 2013 and 2012, respectively. | ||||
Shares_and_Stockholders_Equity
Shares and Stockholders' Equity | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Shares and Stockholders' Equity [Abstract] | ' | ||||||||
Shares and Stockholders' Equity | ' | ||||||||
14. Shares and Stockholders’ Equity | |||||||||
Common and Preferred Shares | |||||||||
The changes in our preferred and common stock (number of shares) were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Series A Preferred Stock | |||||||||
Balance as of beginning-of-year | 9,532 | 10,072 | 10,914 | ||||||
Conversion of convertible preferred stock (1) | -5,818 | -540 | -842 | ||||||
Redemption of convertible preferred stock | -3,714 | - | - | ||||||
Balance as of end-of-year | - | 9,532 | 10,072 | ||||||
Common Stock | |||||||||
Balance as of beginning-of-year | 271,402,586 | 291,319,222 | 315,718,554 | ||||||
Conversion of convertible preferred stock (1) | 93,088 | 8,640 | 13,472 | ||||||
Stock issued for exercise of warrants | 1,981,856 | - | - | ||||||
Stock compensation/issued for benefit plans | 1,399,995 | 542,125 | 248,553 | ||||||
Retirement/cancellation of shares | -11,980,824 | -20,467,401 | -24,661,357 | ||||||
Balance as of end-of-year | 262,896,701 | 271,402,586 | 291,319,222 | ||||||
Common Stock as of End-of-Year | |||||||||
Assuming conversion of preferred stock | 262,896,701 | 271,555,098 | 291,480,374 | ||||||
Diluted basis | 272,196,891 | 279,087,588 | 298,225,244 | ||||||
(1) Represents the conversion of Series A preferred stock into common stock. | |||||||||
Our common and Series A preferred stocks are without par value. | |||||||||
Average Shares | |||||||||
A reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share was as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average shares, as used in basic calculation | 265,631,377 | 280,648,391 | 307,216,181 | ||||||
Shares to cover exercise of outstanding warrants | 9,884,307 | 10,150,212 | 10,150,292 | ||||||
Shares to cover conversion of preferred stock | 74,582 | 153,749 | 173,289 | ||||||
Shares to cover non-vested stock | 1,491,483 | 1,153,178 | 813,905 | ||||||
Average stock options outstanding during the year | 2,873,295 | 570,180 | 636,989 | ||||||
Assumed acquisition of shares with assumed | |||||||||
proceeds from exercising outstanding warrants | -2,630,939 | -4,685,901 | -4,658,020 | ||||||
Assumed acquisition of shares with assumed | |||||||||
proceeds and benefits from exercising stock | |||||||||
options (at average market price for the year) | -2,036,098 | -394,241 | -427,425 | ||||||
Shares repurchaseable from measured but | |||||||||
unrecognized stock option expense | -139,131 | -4,723 | -65,882 | ||||||
Average deferred compensation shares | - | - | 1,110,722 | ||||||
Weighted-average shares, as used in diluted calculation | 275,148,876 | 287,590,845 | 314,950,051 | ||||||
In the event the average market price of LNC common stock exceeds the issue price of stock options and the options have a dilutive effect to our EPS, such options will be shown in the table above. | |||||||||
The income used in the calculation of our diluted EPS is our net income (loss) reduced by preferred stock dividends. | |||||||||
We have participants in our deferred compensation plans who selected LNC stock as the measure for the investment return attributable to their deferral amounts. For the year ended December 31, 2011, the effect of settling this obligation in LNC stock (“equity classification”) was more dilutive than the scenario of settling it in cash (“liability classification”). Therefore, for our EPS calculation for this period, we added these shares to the denominator and adjusted the numerator to present net income as if the shares had been accounted for under equity classification by removing the mark-to-market adjustment included in net income attributable to these deferred units of LNC stock. The amount of this adjustment was $5 million for the year ended December 31, 2011. | |||||||||
As of December 31, 2013, we had 7,711,505 outstanding warrants. The warrants, each representing the right to purchase one share of our common stock, no par value per share, had an exercise price of $10.58 as of December 31, 2013, subject to adjustment. The warrants expire on July 10, 2019, and are listed on the New York Stock Exchange under the symbol “LNC WS.” | |||||||||
Accumulated OCI (“AOCI”) | |||||||||
The following summarizes the components and changes in accumulated OCI (in millions): | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Unrealized Gain (Loss) on AFS Securities | |||||||||
Balance as of beginning-of-year | $ | 4,066 | $ | 2,947 | $ | 1,176 | |||
Unrealized holding gains (losses) arising during the year | -5,728 | 2,691 | 3,414 | ||||||
Change in foreign currency exchange rate adjustment | 19 | 14 | -5 | ||||||
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,834 | -1,233 | -797 | ||||||
Income tax benefit (expense) | 1,356 | -480 | -932 | ||||||
Less: | |||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | -67 | -194 | -129 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | -29 | -2 | -11 | ||||||
Income tax benefit (expense) | 34 | 69 | 49 | ||||||
Balance as of end-of-year | $ | 1,609 | $ | 4,066 | $ | 2,947 | |||
Unrealized OTTI on AFS Securities | |||||||||
Balance as of beginning-of-year | $ | -107 | $ | -109 | $ | -134 | |||
(Increases) attributable to: | |||||||||
Gross OTTI recognized in OCI during the year | -11 | -121 | -58 | ||||||
Change in DAC, VOBA, DSI and DFEL | 1 | 15 | 13 | ||||||
Income tax benefit (expense) | 4 | 36 | 16 | ||||||
Decreases attributable to: | |||||||||
Sales, maturities or other settlements of AFS securities | 62 | 129 | 103 | ||||||
Change in DAC, VOBA, DSI and DFEL | -8 | -18 | -20 | ||||||
Income tax benefit (expense) | -19 | -39 | -29 | ||||||
Balance as of end-of-year | $ | -78 | $ | -107 | $ | -109 | |||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||
Balance as of beginning-of-year | $ | 163 | $ | 119 | $ | -11 | |||
Unrealized holding gains (losses) arising during the year | 143 | 55 | 184 | ||||||
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 | ||||||
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | - | ||||||
Income tax benefit (expense) | -45 | -21 | -67 | ||||||
Less: | |||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | -15 | -15 | -10 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 | ||||||
Income tax benefit (expense) | 5 | 4 | 3 | ||||||
Balance as of end-of-year | $ | 256 | $ | 163 | $ | 119 | |||
Foreign Currency Translation Adjustment | |||||||||
Balance as of beginning-of-year | $ | -4 | $ | 1 | $ | 1 | |||
Foreign currency translation adjustment arising during the year | -1 | -5 | - | ||||||
Income tax benefit (expense) | - | - | - | ||||||
Balance as of end-of-year | $ | -5 | $ | -4 | $ | 1 | |||
Funded Status of Employee Benefit Plans | |||||||||
Balance as of beginning-of-year | $ | -310 | $ | -278 | $ | -181 | |||
Adjustment arising during the year | 140 | 2 | -149 | ||||||
Income tax benefit (expense) | -49 | -34 | 52 | ||||||
Balance as of end-of-year | $ | -219 | $ | -310 | $ | -278 | |||
The following summarizes the reclassifications out of AOCI (in millions) for the year ended December 31, 2013, and the associated line item in the Consolidated Statements of Comprehensive Income (Loss): | |||||||||
Unrealized Gain (Loss) on AFS Securities | |||||||||
Gross reclassification | $ | -67 | Total realized gain (loss) | ||||||
Change in DAC, VOBA, DSI, and DFEL | -29 | Total realized gain (loss) | |||||||
Reclassification before income tax benefit (expense) | -96 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | 34 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | -62 | Net income (loss) | ||||||
Unrealized OTTI on AFS Securities | |||||||||
Gross reclassification | $ | 62 | Total realized gain (loss) | ||||||
Change in DAC, VOBA, DSI, and DFEL | -8 | Total realized gain (loss) | |||||||
Reclassification before income tax benefit (expense) | 54 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | -19 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | 35 | Net income (loss) | ||||||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||
Gross reclassifications: | |||||||||
Interest rate contracts | $ | -21 | Net investment income | ||||||
Interest rate contracts | 3 | Interest and debt expense | |||||||
Foreign currency contracts | 3 | Net investment income | |||||||
Total gross reclassifications | -15 | ||||||||
Change in DAC, VOBA, DSI, and DFEL | 1 | Commissions and other expenses | |||||||
Reclassifications before income tax benefit (expense) | -14 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | 5 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | -9 | Net income (loss) | ||||||
Realized_Gain_Loss
Realized (Gain) Loss | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Realized (Gain) Loss [Abstract] | ' | ||||||||
Realized (Gain) Loss | ' | ||||||||
15. Realized Gain (Loss) | |||||||||
Details underlying realized gain (loss) (in millions) reported on our Consolidated Statements of Comprehensive Income (Loss) were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Total realized gain (loss) related to certain investments (1) | $ | -98 | $ | -190 | $ | -148 | |||
Realized gain (loss) on the mark-to-market on certain instruments (2) | 48 | 133 | -82 | ||||||
Indexed annuity and universal life net derivatives results: (3) | |||||||||
Gross gain (loss) | -39 | 16 | 2 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 9 | -5 | -2 | ||||||
Variable annuity net derivatives results: (4) | |||||||||
Gross gain (loss) | -60 | 164 | -60 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 5 | -44 | -4 | ||||||
Total realized gain (loss) | $ | -135 | $ | 74 | $ | -294 | |||
-1 | See “Realized Gain (Loss) Related to Certain Investments” section in Note 5. | ||||||||
-2 | Represents changes in the fair values of certain derivative investments (not including those associated with our variable annuity net derivatives results), reinsurance related embedded derivatives and trading securities. | ||||||||
-3 | Represents the net difference between the change in the fair value of the S&P 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and universal life products along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | ||||||||
-4 | Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GDB riders, including the cost of purchasing the hedging instruments. | ||||||||
Commissions_and_Other_Expenses
Commissions and Other Expenses | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Commissions and Other Expenses | ' | ||||||||
16. Commissions and Other Expenses | |||||||||
Details underlying commissions and other expenses (in millions) were as follows: | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Commissions | $ | 1,962 | $ | 1,660 | $ | 1,672 | |||
General and administrative expenses | 1,630 | 1,564 | 1,423 | ||||||
Expenses associated with reserve financing and unrelated LOCs | 64 | 56 | 47 | ||||||
DAC and VOBA deferrals and interest, net of amortization | -640 | -275 | -551 | ||||||
Broker-dealer expenses | 387 | 348 | 353 | ||||||
Specifically identifiable intangible asset amortization | 4 | 4 | 4 | ||||||
Media expenses | 62 | 67 | 69 | ||||||
Taxes, licenses and fees | 232 | 239 | 247 | ||||||
Restructuring charges | - | 20 | - | ||||||
Total | $ | 3,701 | $ | 3,683 | $ | 3,264 | |||
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||
Pension, Postretirement Health Care and Life Insurance Benefit Plans | ' | |||||||||||||||||
17. Pension, Postretirement Health Care and Life Insurance Benefit Plans | ||||||||||||||||||
We maintain U.S. qualified funded defined benefit pension plans in which many of our U.S. employees and agents are participants, and we retained the Lincoln UK pension plan after the sale of this business. We also maintain non-qualified, unfunded defined benefit pension plans for certain employees and agents. In addition, for certain former employees we have supplemental retirement plans that provide defined benefit pension benefits in excess of limits imposed by federal tax law. All of our defined benefit pension plans are frozen, including the defined benefit pension plan that was retained after the sale of Lincoln UK, and there are no new participants and no future accruals of benefits from the date of the freeze. | ||||||||||||||||||
The eligibility requirements for each plan are described in each plan document and vary for each plan based on completion of a specified period of continuous service and date of hire, subject to age limitations. The frozen pension plan benefits are calculated either on a traditional final pay or cash balance formula. Those formulas are based upon years of credited service and eligible earnings as defined in each plan document. The traditional formula provides benefits stated in terms of a single life annuity payable at age 65. The cash balance formula provides benefits stated as a lump sum hypothetical account balance. That account balance equals the sum of the employee’s accumulated annual benefit credits plus interest credits. Benefit credits, which are based on years of service and base salary plus bonus, ceased as of the date the plan was frozen. Interest credits continue until the participant’s benefit is paid. | ||||||||||||||||||
We also sponsor a voluntary employees’ beneficiary association (“VEBA”) trust that provides postretirement medical, dental and life insurance benefits to retired full-time U.S. employees and agents who, depending on the plan, have worked for us for at least 10 years and attained age 55 (age 60 for agents). VEBAs are a special type of tax-exempt trust used to provide benefits that are subject to preferential tax treatment under the Internal Revenue Code. Medical and dental benefits are available to spouses and other eligible dependents of retired employees and agents. Retirees may be required to contribute toward the cost of these benefits. Eligibility and the amount of required contribution for these benefits varies based upon a variety of factors including years of service and year of retirement. | ||||||||||||||||||
Obligations, Funded Status and Assumptions | ||||||||||||||||||
Information (in millions) with respect to our benefit plans’ assets and obligations was as follows: | ||||||||||||||||||
As of or For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. | Non-U.S. | Other | ||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement Benefits | ||||||||||||||||
Change in Plan Assets | ||||||||||||||||||
Fair value as of beginning-of-year | $ | 1,043 | $ | 956 | $ | 371 | $ | 350 | $ | 42 | $ | 39 | ||||||
Actual return on plan assets | 67 | 123 | 18 | 28 | 3 | 3 | ||||||||||||
Company and participant contributions | 6 | 32 | 6 | 7 | 13 | 15 | ||||||||||||
Benefits paid | -69 | -68 | -16 | -14 | -16 | -17 | ||||||||||||
Medicare Part D subsidy | - | - | - | - | 3 | 2 | ||||||||||||
Fair value as of end-of-year | 1,047 | 1,043 | 379 | 371 | 45 | 42 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||||
Balance as of beginning-of-year | 1,284 | 1,238 | 364 | 311 | 139 | 161 | ||||||||||||
Service cost (1) | 5 | 5 | - | - | 3 | 4 | ||||||||||||
Interest cost | 51 | 53 | 16 | 15 | 5 | 7 | ||||||||||||
Company and participant contributions | - | - | - | - | 4 | 6 | ||||||||||||
Amendments | - | - | - | - | -29 | - | ||||||||||||
Actuarial (gains) losses | -93 | 61 | 9 | 52 | -7 | -24 | ||||||||||||
Administrative expenses paid | -6 | -5 | - | - | - | - | ||||||||||||
Benefits paid | -69 | -68 | -16 | -14 | -16 | -17 | ||||||||||||
Medicare Part D subsidy | - | - | - | - | 3 | 2 | ||||||||||||
Balance as of end-of-year | 1,172 | 1,284 | 373 | 364 | 102 | 139 | ||||||||||||
Funded status of the plans | $ | -125 | $ | -241 | $ | 6 | $ | 7 | $ | -57 | $ | -97 | ||||||
Amounts Recognized on the | ||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||
Other assets | $ | 14 | $ | 21 | $ | 6 | $ | 7 | $ | - | $ | - | ||||||
Other liabilities | -139 | -262 | - | - | -57 | -97 | ||||||||||||
Net amount recognized | $ | -125 | $ | -241 | $ | 6 | $ | 7 | $ | -57 | $ | -97 | ||||||
Amounts Recognized in | ||||||||||||||||||
Accumulated OCI, Net of Tax | ||||||||||||||||||
Net (gain) loss | $ | 157 | $ | 229 | $ | 107 | $ | 95 | $ | -15 | $ | -11 | ||||||
Prior service credit | - | - | - | - | -18 | -3 | ||||||||||||
Net amount recognized | $ | 157 | $ | 229 | $ | 107 | $ | 95 | $ | -33 | $ | -14 | ||||||
Rate of Increase in Compensation | ||||||||||||||||||
Retiree Life Insurance Plan | N/A | N/A | N/A | N/A | 4.00% | 4.00% | ||||||||||||
All other plans | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||
Weighted-Average Assumptions | ||||||||||||||||||
Benefit obligations: | ||||||||||||||||||
Weighted-average discount rate | 4.70% | 4.16% | 4.45% | 4.40% | 4.50% | 4.03% | ||||||||||||
Expected return on plan assets | 7.82% | 7.79% | 5.50% | 5.30% | 6.50% | 6.50% | ||||||||||||
Net periodic benefit cost: | ||||||||||||||||||
Weighted-average discount rate | 4.16% | 4.45% | 4.40% | 5.00% | 4.03% | 4.25% | ||||||||||||
Expected return on plan assets | 7.82% | 7.79% | 5.50% | 5.30% | 6.50% | 6.50% | ||||||||||||
-1 | Amounts for our U.S. pension plans represent general and administrative expenses. | |||||||||||||||||
Consistent with our benefit plans’ year end, we use December 31 as the measurement date. | ||||||||||||||||||
The discount rate was determined based on a corporate yield curve as of December 31, 2013, and projected benefit obligation cash flows for the U.S. pension plans. We reevaluate this assumption each plan year. For 2014, our discount rate will be 4.70% for the U.S. pension plans, and 4.45% for the non-U.S. plan. | ||||||||||||||||||
The expected return on plan assets was determined based on historical and expected future returns of the various asset categories, using the plans’ target plan allocation. We reevaluate this assumption each plan year. For 2014, our expected return on plan assets is 7.82% for the U.S. plans and 5.50% for the non-U.S. plan. | ||||||||||||||||||
The calculation of the accumulated other postretirement benefit obligation assumes a weighted-average annual rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) as follows: | ||||||||||||||||||
As of or For the | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Pre-65 health care cost trend rate | 7.50% | 8.00% | 8.50% | |||||||||||||||
Post-65 health care cost trend rate | 7.50% | 8.00% | 8.50% | |||||||||||||||
Ultimate trend rate | 4.50% | 4.50% | 4.50% | |||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2020 | 2021 | |||||||||||||||
We expect the health care cost trend rate for 2014 to be 7.50% for both the pre-65 and the post-65 population. A one-percentage point increase in assumed health care cost trend rates would have increased the accumulated postretirement benefit obligation by $4 million and total service and interest cost components by less than $1 million. A one-percentage point decrease in assumed health care cost trend rates would have decreased the accumulated postretirement benefit obligation by $4 million and total service and interest cost components by less than $1 million. | ||||||||||||||||||
Information for our pension plans with an accumulated benefit obligation in excess of plan assets (in millions) was as follows: | ||||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
U.S. Plan | ||||||||||||||||||
Accumulated benefit obligation | $ | 1,059 | $ | 1,160 | ||||||||||||||
Projected benefit obligation | 1,059 | 1,160 | ||||||||||||||||
Fair value of plan assets | 920 | 898 | ||||||||||||||||
Components of Net Periodic Benefit Cost | ||||||||||||||||||
The components of net periodic benefit cost for our pension plans’ and other postretirement plans’ expense (recovery) (in millions) were as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
U.S. Plans | ||||||||||||||||||
Service cost (1) | $ | 5 | $ | 5 | $ | 3 | $ | 3 | $ | 4 | $ | 4 | ||||||
Interest cost | 51 | 53 | 58 | 5 | 7 | 7 | ||||||||||||
Expected return on plan assets | -78 | -72 | -71 | -3 | -3 | -2 | ||||||||||||
Amortization of prior service cost | - | - | - | -1 | -1 | -1 | ||||||||||||
Recognized net actuarial loss (gain) | 24 | 26 | 13 | -1 | 1 | 1 | ||||||||||||
Recognized actuarial gain due | ||||||||||||||||||
to curtailments | - | - | - | -5 | - | - | ||||||||||||
Net periodic benefit expense (recovery) | $ | 2 | $ | 12 | $ | 3 | $ | -2 | $ | 8 | $ | 9 | ||||||
Non-U.S. Plans | ||||||||||||||||||
Interest cost | $ | 16 | $ | 15 | $ | 15 | ||||||||||||
Expected return on plan assets | -19 | -17 | -16 | |||||||||||||||
Recognized net actuarial loss (gain) | 2 | 1 | - | |||||||||||||||
Net periodic benefit expense (recovery) | $ | -1 | $ | -1 | $ | -1 | ||||||||||||
-1 | Amounts for our pension plans represent general and administrative expenses. | |||||||||||||||||
We expect our 2014 U.S. pension plans’ expense to be approximately $1 million. In addition, we expect our non-U.S. pension plan income for 2014 to be approximately $4 million when assuming an average exchange rate of 1.66 pounds sterling to U.S. dollars. | ||||||||||||||||||
For 2014, the estimated amount of amortization from accumulated OCI into net periodic benefit expense related to net actuarial loss or gain is expected to be a $17 million loss for our pension plans and a $2 million gain for our other postretirement plans. | ||||||||||||||||||
Plan Assets | ||||||||||||||||||
Our pension plans’ asset target allocations by asset category based on estimated fair values were as follows: | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. Plan – Employees | U.S. Plan – Agents | Non-U.S. Plan | ||||||||||||||||
Asset Class | ||||||||||||||||||
Fixed maturity securities | 50% | 50% | 100% | 80% | 39% | 39% | ||||||||||||
Common stock: | ||||||||||||||||||
Domestic equity | 35% | 35% | 0% | 14% | 0% | 0% | ||||||||||||
International equity | 15% | 15% | 0% | 6% | 0% | 0% | ||||||||||||
Equity securities | 0% | 0% | 0% | 0% | 58% | 59% | ||||||||||||
Cash and invested cash | 0% | 0% | 0% | 0% | 3% | 2% | ||||||||||||
The investment objectives for the assets related to our pension plans are to: | ||||||||||||||||||
· | Maintain sufficient liquidity to pay obligations of the plans as they come due; | |||||||||||||||||
· | Minimize the effect of a single investment loss and large losses to the plans through prudent risk/reward diversification consistent with sound fiduciary standards; | |||||||||||||||||
· | Maintain an appropriate asset allocation policy; | |||||||||||||||||
· | Earn a return commensurate with the level of risk assumed through the asset allocation policy; and | |||||||||||||||||
· | Control costs of administering and managing the plans' investment operations. | |||||||||||||||||
Investments can be made in various asset classes and styles, including, but not limited to: domestic and international equity, fixed-income securities, derivatives and other asset classes the investment managers deem prudent. Our plans follow a strategic asset allocation policy that strives to systemically increase the percentage of assets in liability-matching fixed-income investments as funding levels increase. | ||||||||||||||||||
We currently target asset weightings as follows: for the U.S. Plan – Employees, domestic equity allocations (35%) are split into large cap (25%), small cap (5%) and hedge funds (5%). Fixed maturity securities represent core fixed-income investments. The performance of the pension trust assets is monitored on a quarterly basis relative to the plans’ objectives. | ||||||||||||||||||
Our U.S. pension plans’ assets have been combined into a master retirement trust where a variety of qualified managers, including manager of managers, are expected to have returns that exceed the median of similar funds over three-year periods, above an appropriate index over five-year periods and meet real return standards over ten-year periods. Managers are monitored for adherence to approved investment policy guidelines and managers not meeting these criteria are subject to additional due diligence review, corrective action or possible termination. | ||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||
See “Fair Value Measurement” in Note 1 for discussion of how we categorize our pension plans’ assets into the three-level fair value hierarchy. See “Financial Instruments Carried at Fair Value” in Note 21 for a summary of our fair value measurements of our pension plans’ assets by the three-level fair value hierarchy. | ||||||||||||||||||
The following summarizes our fair value measurements of benefit plans’ assets (in millions) on a recurring basis by asset category: | ||||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. | Non-U.S. | Other | ||||||||||||||||
Pension Plans | Pension Plans | Postretirement Benefits | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||
Corporate bonds | $ | 374 | $ | 343 | $ | 40 | $ | 35 | $ | - | $ | - | ||||||
U.S. government bonds | 133 | 145 | 4 | 4 | - | - | ||||||||||||
Foreign government bonds | - | 15 | 174 | 179 | - | - | ||||||||||||
RMBS | - | 1 | - | - | - | - | ||||||||||||
CMBS | - | 3 | - | - | - | - | ||||||||||||
CDOs | - | 1 | 4 | 4 | - | - | ||||||||||||
State and municipal bonds | 37 | 42 | - | - | - | - | ||||||||||||
Common and preferred stock | 463 | 475 | 83 | 96 | - | - | ||||||||||||
Cash and invested cash | 40 | 18 | 74 | 53 | - | - | ||||||||||||
Other investments | - | - | - | - | 45 | 42 | ||||||||||||
Total | $ | 1,047 | $ | 1,043 | $ | 379 | $ | 371 | $ | 45 | $ | 42 | ||||||
Valuation Methodologies and Associated Inputs for Pension Plans’ Assets | ||||||||||||||||||
The fair value measurements of our pension plans’ assets are based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the security, and the valuation methodology is consistently applied to measure the security’s fair value. The fair value measurement is based on a market approach, which utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach include third-party pricing services, independent broker quotations or pricing matrices. Both observable and unobservable inputs are used in the valuation methodologies. Observable inputs include benchmark yields, reported trades, broker quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For broker-quoted only securities, quotes from market makers or broker dealers are obtained from sources recognized to be market participants. In order to validate the pricing information and broker quotes, procedures are employed, where possible, that include comparisons with similar observable positions, comparisons with subsequent sales, discussions with brokers and observations of general market movements for those security classes. For those securities trading in less liquid or illiquid markets with limited or no pricing information, unobservable inputs are used in order to measure the fair value of these securities. In cases where this information is not available, such as for privately placed securities, fair value is estimated using an internal pricing matrix. This matrix relies on judgment concerning the discount rate used in calculating expected future cash flows, credit quality, industry sector performance and expected maturity. | ||||||||||||||||||
Prices received from third parties are not adjusted; however, the third-party pricing services’ valuation methodologies and related inputs are evaluated and additional evaluation is performed to determine the appropriate level within the fair value hierarchy. | ||||||||||||||||||
The observable and unobservable inputs to the valuation methodologies are based on general standard inputs. The standard inputs used in order of priority are benchmark yields, reported trades, broker quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all securities on any given day. | ||||||||||||||||||
Cash and invested cash is carried at cost, which approximates fair value. This category includes highly liquid debt instruments purchased with a maturity of three months or less. Due to the nature of these assets, we believe these assets should be classified as Level 2. | ||||||||||||||||||
Plan Cash Flows | ||||||||||||||||||
It is our practice to make contributions to the qualified pension plans to comply with minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended and with guidance issued there under. In accordance with such practice, no contributions were required for the years ended December 31, 2013 or 2012 however, we elected to contribute $25 million on December 20, 2012. Based on our calculations, we do not expect to be required to make any contributions to our qualified pension plans in 2014 under applicable pension law. | ||||||||||||||||||
For our nonqualified pension plans, we fund the benefits as they become due to retirees. The amount expected to be contributed to the nonqualified pension plans during 2014 is approximately $10 million. | ||||||||||||||||||
We expect the following benefit payments (in millions): | ||||||||||||||||||
Pension Plans | ||||||||||||||||||
Qualified | Nonqualified | Qualified | ||||||||||||||||
U.S. | U.S. | Non-U.S. | U.S. | |||||||||||||||
Defined | Defined | Defined | Other | |||||||||||||||
Benefit | Benefit | Benefit | Post- | |||||||||||||||
Pension | Pension | Pension | retirement | |||||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||||
2014 | $ | 73 | $ | 10 | $ | 14 | $ | 9 | ||||||||||
2015 | 73 | 10 | 14 | 9 | ||||||||||||||
2016 | 74 | 10 | 15 | 9 | ||||||||||||||
2017 | 71 | 10 | 16 | 9 | ||||||||||||||
2018 | 71 | 9 | 17 | 8 | ||||||||||||||
Following five years thereafter | 343 | 44 | 94 | 35 | ||||||||||||||
Defined_Contribution_and_Defer
Defined Contribution and Deferred Compensation Plans | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Defined Contribution and Deferred Compensation Plans | ' | |||||||||
18. Defined Contribution and Deferred Compensation Plans | ||||||||||
Defined Contribution Plans | ||||||||||
We sponsor defined contribution plans, which include 401(k) and money purchase plans, for eligible employees and agents. We make contributions and matching contributions to each of the active plans in accordance with the plan documents and various limitations under Section 401(a) of the Internal Revenue Code of 1986, as amended. For the years ended December 31, 2013, 2012 and 2011, expenses for these plans were $72 million, $70 million and $67 million, respectively. | ||||||||||
Deferred Compensation Plans | ||||||||||
We sponsor six separate non-qualified, unfunded, deferred compensation plans for employees, agents and non-employee directors. | ||||||||||
The results for certain investment options within the plans are hedged by total return swaps. Participants’ account values change due primarily to investment earnings driven by market fluctuations. Our expenses increase or decrease in direct proportion to the change in market value of the participants’ investment options. Participants are able to select our stock as an investment option; however, it is not hedged by the total return swaps and is a primary source of expense volatility related to these plans. For further discussion of total return swaps related to our deferred compensation plans, see Note 6. | ||||||||||
Information (in millions) with respect to these plans was as follows: | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Total liabilities (1) | $ | 468 | $ | 386 | ||||||
Investments held to fund liabilities (2) | 153 | 135 | ||||||||
-1 | Reported in other liabilities on our Consolidated Balance Sheets. | |||||||||
-2 | Reported in other assets on our Consolidated Balance Sheets. | |||||||||
Deferred Compensation Plan for Employees | ||||||||||
Participants may elect to defer a portion of their compensation as defined by the plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of the plan, we agree to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. We make matching contributions based upon amounts placed into the plan by individuals after participants have exceeded applicable limits of the Internal Revenue Code applicable to 401(k) plans. The amount of our contribution is calculated in accordance with the plan document. Expenses (income) (in millions) for this plan were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 9 | $ | 7 | $ | 6 | ||||
Increase (decrease) in measurement of | ||||||||||
liabilities, net of total return swap | 14 | 7 | 1 | |||||||
Total plan expenses (income) | $ | 23 | $ | 14 | $ | 7 | ||||
Deferred Compensation Plans for Agents | ||||||||||
We sponsor three deferred compensation plans for certain eligible agents. Participants may elect to defer a portion of their compensation as defined by the respective plan. Participants may select from prescribed “phantom” investment options that are used as measures for calculating the returns that are notionally credited to their accounts. Under the terms of these plans, we agree to pay out amounts based upon the aggregate performance of the investment measures selected by the participants. We make matching contributions based upon amounts placed into the plans by individuals after participants have exceeded applicable limits of the Internal Revenue Code applicable to 401(k) plans. The amounts of our contributions are calculated in accordance with the plans’ documents. Expenses (income) (in millions) for these plans were as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 1 | $ | 1 | $ | 1 | ||||
Increase (decrease) in measurement of | ||||||||||
liabilities, net of total return swap | 4 | 2 | - | |||||||
Total plan expenses (income) | $ | 5 | $ | 3 | $ | 1 | ||||
Deferred Compensation Plan for Non-Employee Directors | ||||||||||
Non-employee directors may defer a portion of their annual cash retainers. They also receive a portion of their retainer in the form of deferred stock units, which we credit quarterly in arrears to their accounts. The prescribed “phantom” investment options are identical to those offered in the employees’ deferred compensation plan. For the years ended December 31, 2013, 2012 and 2011, expenses (income) for this plan were $8 million, $2 million and less than ($1) million, respectively. | ||||||||||
Deferred Compensation Plan for Former JP Agents | ||||||||||
Eligible former agents of JP may participate in this deferred compensation plan. Participants may elect to defer commissions and bonuses and specify where this deferred compensation will be invested in selected notional mutual funds. Participants may not receive the returns on these funds until attaining a specified age or in the event of a significant lifestyle change. The funded amount is rebalanced to match the funds that have been elected under the deferred compensation plan. The plan obligation increases with contributions, deferrals and investment gains, and decreases with withdrawals and investment losses. The plan assets increase with investment gains and decrease with investment losses and payouts of benefits. For the years ended December 31, 2013, 2012 and 2011, expenses (income) for this plan were $2 million, $3 million and $4 million, respectively. | ||||||||||
StockBased_Incentive_Compensat
Stock-Based Incentive Compensation Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Stock-Based Incentive Compensation Plans [Abstract] | ' | ||||||||||||||
Stock based incentive compensation plans | ' | ||||||||||||||
19. Stock-Based Incentive Compensation Plans | |||||||||||||||
LNC Stock-Based Incentive Plans | |||||||||||||||
We sponsor two stock-based incentive plans for our employees and directors and for the employees and agents of our subsidiaries that provide for the issuance of stock options, performance shares (performance-vested shares as opposed to service-vested shares), stock appreciation rights (“SARs”) and restricted stock units (“RSUs”). We issue new shares to satisfy option exercises. | |||||||||||||||
Total compensation expense (in millions) by award type for all of our stock-based incentive plans was as follows: | |||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Stock options | $ | 9 | $ | 8 | $ | 8 | |||||||||
Performance shares | 10 | 5 | 2 | ||||||||||||
SARs | 5 | 1 | - | ||||||||||||
RSUs and nonvested stock | 16 | 17 | 12 | ||||||||||||
Total | $ | 40 | $ | 31 | $ | 22 | |||||||||
Recognized tax benefit | $ | 14 | $ | 11 | $ | 8 | |||||||||
Total unrecognized compensation expense (in millions) and expected weighted-average life (in years) by award type for all of our stock-based incentive plans was as follows: | |||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted- | Weighted- | Weighted- | |||||||||||||
Average | Average | Average | |||||||||||||
Expense | Period | Expense | Period | Expense | Period | ||||||||||
Stock options | $ | 9 | 1.9 | $ | 6 | 1.8 | $ | 6 | 1.7 | ||||||
Performance shares | 9 | 1.5 | 9 | 1.6 | 4 | 2.0 | |||||||||
SARs | 3 | 3.4 | 1 | 3.3 | 1 | 3.4 | |||||||||
RSUs and nonvested stock | 18 | 1.2 | 20 | 1.3 | 17 | 1.7 | |||||||||
Total unrecognized stock-based | |||||||||||||||
incentive compensation expense | $ | 39 | $ | 36 | $ | 28 | |||||||||
In the first quarter of 2013, a performance period from 2013-2015 was approved for certain of our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 29%, LNC stock options representing approximately 35% and LNC performance shares representing approximately 36% of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date, based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three-year period, based solely on a service condition. Depending on the performance results for this period, the ultimate payout of performance shares could range from zero to 200% of the target award. Under the 2013-2015 plan, a total of 583,404 LNC RSUs, 1,011,365 LNC stock options and 260,114 LNC performance shares were granted. | |||||||||||||||
In the first quarter of 2012, a performance period from 2012-2014 was approved for certain of our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 29%, LNC stock options representing approximately 35% and LNC performance shares representing approximately 36% of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date, based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three-year period, based solely on a service condition. Depending on the performance results for this period, the ultimate payout of performance shares could range from zero to 200% of the target award. Under the 2012-2014 plan, a total of 766,217 LNC RSUs, 903,502 LNC stock options and 306,456 LNC performance shares were granted. | |||||||||||||||
In the first quarter of 2011, a performance period from 2011-2013 was approved for certain of our executive officers by the Compensation Committee. The award for executive officers participating in this performance period consisted of LNC RSUs representing approximately 34%, LNC stock options representing approximately 33% and LNC performance shares representing approximately 33% of the total award. LNC RSUs granted for this period cliff-vest on the third anniversary of the grant date, based solely on a service condition. LNC stock options granted for this performance period have a maximum contractual term of ten years and vest ratably over the three-year period, based solely on a service condition. Under the 2011-2013 plan, a total of 221,813 LNC RSUs, 459,093 LNC stock options and 215,137 LNC performance shares were granted. | |||||||||||||||
The option price assumptions used for our stock option awards were as follows: | |||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per option granted | $ | 7.39 | $ | 8.35 | $ | 13.88 | |||||||||
Assumptions: | |||||||||||||||
Dividend yield | 2.4% | 1.9% | 1.2% | ||||||||||||
Expected volatility | 34.1% | 42.0% | 48.5% | ||||||||||||
Risk-free interest rate | 0.6-0.9% | 0.9-1.2% | 1.4-2.9% | ||||||||||||
Expected life (in years) | 5.6 | 5.8 | 6.7 | ||||||||||||
The fair value of options is determined using a Black-Scholes options valuation model with the assumptions disclosed in the table above. The dividend yield is based on the expected dividend rate during the expected life of the option. Expected volatility is based on the implied volatility of exchange-traded securities and the historical volatility of the LNC stock price. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life of the options granted represents the weighted-average period of time from the grant date to the date of exercise, expiration or cancellation based upon historical behavior. | |||||||||||||||
Information with respect to our incentive plans involving stock options with performance conditions (aggregate intrinsic value shown in millions) was as follows: | |||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 1,267,595 | $ | 45.29 | ||||||||||||
Granted – original | 82,317 | 33.44 | |||||||||||||
Exercised (includes shares tendered) | -65,521 | 25.11 | |||||||||||||
Forfeited or expired | -107,417 | 44.17 | |||||||||||||
Outstanding as of December 31, 2013 | 1,176,974 | $ | 45.84 | 3.64 | $ | 8 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 1,120,709 | $ | 46.61 | 3.65 | $ | 7 | |||||||||
Exercisable as of December 31, 2013 | 1,064,562 | $ | 47.46 | 3.66 | $ | 5 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
The total fair value of options vested during the years ended December 31, 2013, 2012 and 2011, was $1 million, $1 million and $2 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011, was $1 million, zero and zero, respectively. | |||||||||||||||
Information with respect to our incentive plans involving stock options with service conditions (aggregate intrinsic value shown in millions) was as follows: | |||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 5,515,761 | $ | 41.20 | ||||||||||||
Granted – original | 1,070,085 | 29.54 | |||||||||||||
Exercised (includes shares tendered) | -1,003,571 | 41.99 | |||||||||||||
Forfeited or expired | -653,922 | 43.83 | |||||||||||||
Outstanding as of December 31, 2013 | 4,928,353 | $ | 38.18 | 5.28 | $ | 74 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 4,641,843 | $ | 38.82 | 5.08 | $ | 67 | |||||||||
Exercisable as of December 31, 2013 | 3,245,712 | $ | 43.41 | 3.50 | $ | 35 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
The total fair value of options vested during the years ended December 31, 2013, 2012 and 2011, was $6 million, $4 million and $7 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011, was $6 million, zero and zero, respectively. | |||||||||||||||
Information with respect to our performance shares was as follows: | |||||||||||||||
Weighted- | |||||||||||||||
Average | |||||||||||||||
Grant-Date | |||||||||||||||
Shares | Fair Value | ||||||||||||||
Nonvested as of December 31, 2012 | 479,498 | $ | 32.48 | ||||||||||||
Granted | 260,114 | 33.60 | |||||||||||||
Forfeited | -28,920 | 32.51 | |||||||||||||
Nonvested as of December 31, 2013 | 710,692 | $ | 32.74 | ||||||||||||
SARs | |||||||||||||||
Under our incentive compensation plan, we issue SARs to certain planners and advisors who have full-time contracts with us. The SARs under this plan are rights on our stock that are cash settled and become exercisable in increments of 25% over the four-year period following the SARs grant date. SARs are granted with an exercise price equal to the fair market value of our stock at the date of grant and, unless cancelled earlier due to certain terminations of employment, expire five years from the date of grant. Generally, such SARs are transferable only upon death. | |||||||||||||||
We recognize compensation expense for SARs based on the fair value method using the Black-Scholes option-pricing model. Compensation expense and the related liability are recognized on a straight-line basis over the vesting period of the SARs. The SARs liability is marked-to-market through net income, which causes volatility in net income (loss) as a result of changes in the market value of our stock and reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). The SARs liability as of December 31, 2013 and 2012, was $5 million and $1 million, respectively, and reported within other liabilities on our Consolidated Balance Sheets. | |||||||||||||||
The option price assumptions used for our SARs were as follows: | |||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per SAR granted | $ | 7.47 | $ | 8.91 | $ | 9.41 | |||||||||
Assumptions: | |||||||||||||||
Dividend yield | 2.2% | 1.4% | 1.9% | ||||||||||||
Expected volatility | 30.5% | 40.7% | 39.1% | ||||||||||||
Risk-free interest rate | 1.0% | 1.3% | 2.2% | ||||||||||||
Expected life (in years) | 5.0 | 5.0 | 5.0 | ||||||||||||
The assumptions above are the same as those discussed for options above, except the dividend yield is based on the current dividend rate at the date of grant, expected volatility is based on the implied volatility of exchange-traded securities and the expected life represents the contractual term. | |||||||||||||||
Information with respect to our SARs plan (aggregate intrinsic value shown in millions) was as follows: | |||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 569,681 | $ | 35.01 | ||||||||||||
Granted – original | 112,990 | 33.44 | |||||||||||||
Exercised (includes shares tendered) | -97,722 | 23.08 | |||||||||||||
Forfeited or expired | -230,906 | 48.39 | |||||||||||||
Outstanding as of December 31, 2013 | 354,043 | $ | 29.00 | 2.73 | $ | 8 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 335,586 | $ | 28.89 | 2.67 | $ | 8 | |||||||||
Exercisable as of December 31, 2013 | 185,822 | $ | 27.09 | 1.99 | $ | 5 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
The payment for SARs exercised during the years ended December 31, 2013, 2012 and 2011, was $1 million, zero and zero, respectively. | |||||||||||||||
RSUs | |||||||||||||||
We award RSUs under the incentive compensation plan, generally subject to a three-year vesting period. Information with respect to our restricted stock units was as follows: | |||||||||||||||
Weighted- | |||||||||||||||
Average | |||||||||||||||
Grant-Date | |||||||||||||||
Shares | Fair Value | ||||||||||||||
Outstanding as of December 31, 2012 | 1,716,407 | $ | 26.49 | ||||||||||||
Granted | 583,404 | 30.53 | |||||||||||||
Vested | -588,217 | 25.26 | |||||||||||||
Forfeited | -81,187 | 27.08 | |||||||||||||
Outstanding as of December 31, 2013 | 1,630,407 | $ | 28.24 | ||||||||||||
Statutory_Information_and_Rest
Statutory Information and Restrictions | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Statutory Information and Restrictions | ' | |||||||||
20. Statutory Information and Restrictions | ||||||||||
The Company’s domestic life insurance subsidiaries prepare financial statements in accordance with statutory accounting principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile, which may vary materially from GAAP. | ||||||||||
Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. Permitted SAP encompasses all accounting practices not so prescribed. The principal differences between statutory financial statements and financial statements prepared in accordance with GAAP are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, contract holder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. | ||||||||||
Our insurance subsidiaries are subject to the applicable laws and regulations of their respective states. Changes in these laws and regulations could change capital levels or capital requirements for our insurance subsidiaries. | ||||||||||
Statutory capital and surplus, net gain (loss) from operations, after-tax, net income (loss) and dividends to the LNC holding company amounts (in millions) below consist of all or a combination of the following entities: LNL, First Penn-Pacific Life Insurance Company (“FPP”), Lincoln Reinsurance Company of South Carolina, Lincoln Reinsurance Company of South Carolina II, Lincoln Life & Annuity Company of New York (“LLANY”), Lincoln Reinsurance Company of Vermont I, Lincoln Reinsurance Company of Vermont II, | ||||||||||
Lincoln Reinsurance Company of Vermont III, Lincoln Reinsurance Company of Vermont IV and Lincoln Reinsurance Company of Vermont V. | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
U.S. capital and surplus | $ | 7,484 | $ | 6,715 | ||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
U.S. net gain (loss) from operations, after-tax | $ | 494 | $ | 736 | $ | 323 | ||||
U.S. net income (loss) | 561 | 681 | 135 | |||||||
U.S. dividends to LNC holding company | 725 | 635 | 818 | |||||||
The decrease in statutory net income (loss) when comparing 2013 to 2012 was due primarily to the effects of reserve financing transactions in 2013. | ||||||||||
The increase in statutory net income (loss) when comparing 2012 to 2011 was due primarily to a decrease in realized losses in invested assets, an increase in favorable tax items over prior year and favorable reserve development in variable annuities due to improvements in the equity market and less volatility in the forward interest rates. | ||||||||||
The states of domicile of the Company’s insurance subsidiaries have adopted certain prescribed accounting practices that differ from those found in NAIC SAP. These prescribed practices are the use of continuous Commissioners Annuity Reserve Valuation Method (“CARVM”) in the calculation of reserves as prescribed by the state of New York, the calculation of reserves on universal life policies based on the Indiana universal life method as prescribed by the state of Indiana for policies issued before January 1, 2006, and the use of a more conservative valuation interest rate on certain annuities prescribed by the states of Indiana and New York. The Vermont insurance subsidiaries also have an accounting practice permitted by the state of Vermont that differs from that found in NAIC SAP. Specifically, the permitted practice involves accounting for the lesser of the face amount of all amounts outstanding under an LOC and the value of the Valuation of Life Insurance Policies Model Regulation (“XXX”) additional statutory reserves as an admitted asset and a form of surplus as of December 31, 2013 and 2012. | ||||||||||
The favorable (unfavorable) effects on statutory surplus compared to NAIC statutory surplus from the use of these prescribed and permitted practices (in millions) were as follows: | ||||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Calculation of reserves using the Indiana universal life method | $ | 219 | $ | 249 | ||||||
Calculation of reserves using continuous CARVM | -2 | -2 | ||||||||
Conservative valuation rate on certain annuities | -30 | -26 | ||||||||
Lesser of LOC and XXX additional reserve as surplus | 2,635 | 2,483 | ||||||||
During the third quarter of 2013, the New York Department of Financial Services (“NYDFS”) announced that it would not recognize the NAIC revisions to AG38 in applying the New York law governing the reserves to be held for UL and VUL products containing secondary guarantees. The change, effective December 31, 2013, impacts our New York-domiciled insurance subsidiary, LLANY, notwithstanding that LLANY discontinued the sale of these products in early 2013. We expect to phase in the increase in reserves over five years beginning with 2013. As such, we increased reserves by $90 million as of December 31, 2013. The additional increase in reserves over the next four years is subject to on-going discussions with the NYDFS. However, we do not expect the amount for each of the remaining years to exceed $90 million per year. | ||||||||||
The NAIC has adopted Risk-Based Capital (“RBC”) requirements for life insurance companies to evaluate the adequacy of statutory capital and surplus in relation to investment and insurance risks. The requirements provide a means of measuring the minimum amount of statutory surplus appropriate for an insurance company to support its overall business operations based on its size and risk profile. Under RBC requirements, regulatory compliance is determined by the ratio of a company’s total adjusted capital, as defined by the NAIC, to its company action level of RBC (known as the “RBC ratio”), also as defined by the NAIC. The company action level may be triggered if the RBC ratio is between 75% and 100%, which would require the insurer to submit a plan to the regulator detailing corrective action it proposes to undertake. As of December 31, 2013, the combined RBC ratio of LNL, LLANY and FPP was approximately five times the aforementioned company action level. | ||||||||||
Our insurance subsidiaries are subject to certain insurance department regulatory restrictions as to the transfer of funds and payment of dividends to the holding company. Under Indiana laws and regulations, our Indiana insurance subsidiaries, including our primary insurance subsidiary, LNL, may pay dividends to LNC without prior approval of the Indiana Insurance Commissioner (the “Commissioner”), only from unassigned surplus and must receive prior approval of the Commissioner to pay a dividend if such dividend, along with all other dividends paid within the preceding 12 consecutive months, would exceed the statutory limitation. The current statutory limitation is the greater of 10% of the insurer’s contract holders’ surplus, as shown on its last annual statement on file with the Commissioner or the insurer’s statutory net gain from operations for the previous 12 months, but in no event to exceed statutory unassigned surplus. Indiana law gives the Commissioner broad discretion to disapprove requests for dividends in excess of these limits. LNL’s subsidiary, LLANY, a New York domiciled insurance company, has similar restrictions, except that in New York it is the lesser of 10% of surplus to contract holders as of the immediately preceding calendar year or net gain from operations for the immediately preceding calendar year, not including realized capital gains. We expect our domestic insurance subsidiaries could pay dividends of approximately $750 million in 2014 without prior approval from the respective state commissioner. | ||||||||||
All payments of principal and interest on surplus notes between LNC and our insurance subsidiaries must be approved by the respective Commissioner of Insurance. | ||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | |||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||
21. Fair Value of Financial Instruments | ||||||||||||||||||
The carrying values and estimated fair values of our financial instruments (in millions) were as follows: | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Assets | ||||||||||||||||||
AFS securities: | ||||||||||||||||||
Fixed maturity securities | $ | 80,078 | $ | 80,078 | $ | 82,036 | $ | 82,036 | ||||||||||
VIEs' fixed maturity securities | 697 | 697 | 708 | 708 | ||||||||||||||
Equity securities | 201 | 201 | 157 | 157 | ||||||||||||||
Trading securities | 2,282 | 2,282 | 2,554 | 2,554 | ||||||||||||||
Mortgage loans on real estate | 7,210 | 7,386 | 7,029 | 7,704 | ||||||||||||||
Derivative investments (1) | 881 | 881 | 2,652 | 2,652 | ||||||||||||||
Other investments | 1,218 | 1,218 | 1,098 | 1,098 | ||||||||||||||
Cash and invested cash | 2,364 | 2,364 | 4,230 | 4,230 | ||||||||||||||
Separate account assets | 117,135 | 117,135 | 95,373 | 95,373 | ||||||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | -1,048 | -1,048 | -732 | -732 | ||||||||||||||
GLB reserves embedded derivatives | 1,244 | 1,244 | -909 | -909 | ||||||||||||||
Other contract holder funds: | ||||||||||||||||||
Remaining guaranteed interest and similar contracts | -809 | -809 | -867 | -867 | ||||||||||||||
Account values of certain investment contracts | -29,078 | -30,574 | -28,540 | -32,688 | ||||||||||||||
Short-term debt (2) | -501 | -500 | -200 | -204 | ||||||||||||||
Long-term debt | -5,320 | -5,762 | -5,439 | -5,824 | ||||||||||||||
Reinsurance related embedded derivatives | -108 | -108 | -215 | -215 | ||||||||||||||
VIEs' liabilities – derivative instruments | -27 | -27 | -128 | -128 | ||||||||||||||
Other liabilities: | ||||||||||||||||||
Credit default swaps | -2 | -2 | -11 | -11 | ||||||||||||||
Derivative liabilities (1) | -187 | -187 | - | - | ||||||||||||||
Benefit Plans' Assets (3) | 1,471 | 1,471 | 1,456 | 1,456 | ||||||||||||||
-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. | |||||||||||||||||
-2 | The difference between the carrying value and fair value of short-term debt as of December 31, 2013 and 2012, related to current maturities of long-term debt. | |||||||||||||||||
-3 | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for additional detail. | |||||||||||||||||
Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value | ||||||||||||||||||
The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on our Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments. | ||||||||||||||||||
Mortgage Loans on Real Estate | ||||||||||||||||||
The fair value of mortgage loans on real estate is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 2 within the fair value hierarchy. | ||||||||||||||||||
Other Investments | ||||||||||||||||||
The carrying value of our assets classified as other investments approximates fair value. Other investments include LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. The inputs used to measure the fair value of our other investments are classified as Level 3 within the fair value hierarchy. | ||||||||||||||||||
Other Contract Holder Funds | ||||||||||||||||||
Other contract holder funds include remaining guaranteed interest and similar contracts and account values of certain investment contracts. The fair value for the remaining guaranteed interest and similar contracts is estimated using discounted cash flow calculations as of the balance sheet date. These calculations are based on interest rates currently offered on similar contracts with maturities that are consistent with those remaining for the contracts being valued. As of December 31, 2013 and 2012, the remaining guaranteed interest and similar contracts carrying value approximated fair value. The fair value of the account values of certain investment contracts is based on their approximate surrender value as of the balance sheet date. The inputs used to measure the fair value of our other contract holder funds are classified as Level 3 within the fair value hierarchy. | ||||||||||||||||||
Short-Term and Long-Term Debt | ||||||||||||||||||
The fair value of long-term debt is based on quoted market prices. For short-term debt, excluding current maturities of long-term debt, the carrying value approximates fair value. The inputs used to measure the fair value of our short-term and long-term debt are classified as Level 2 within the fair value hierarchy. | ||||||||||||||||||
Financial Instruments Carried at Fair Value | ||||||||||||||||||
We did not have any assets or liabilities measured at fair value on a nonrecurring basis as of December 31, 2013 or 2012, and we noted no changes in our valuation methodologies between these periods. | ||||||||||||||||||
The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels described above: | ||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
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 | $ | 60 | $ | 67,164 | $ | 1,711 | $ | 68,935 | ||||||||||
U.S. government bonds | 346 | 21 | - | 367 | ||||||||||||||
Foreign government bonds | - | 470 | 79 | 549 | ||||||||||||||
RMBS | - | 4,349 | 1 | 4,350 | ||||||||||||||
CMBS | - | 708 | 20 | 728 | ||||||||||||||
CLOs | - | 46 | 179 | 225 | ||||||||||||||
State and municipal bonds | - | 3,891 | 28 | 3,919 | ||||||||||||||
Hybrid and redeemable preferred securities | 40 | 899 | 66 | 1,005 | ||||||||||||||
VIEs' fixed maturity securities | 102 | 595 | - | 697 | ||||||||||||||
Equity AFS securities | 3 | 37 | 161 | 201 | ||||||||||||||
Trading securities | - | 2,230 | 52 | 2,282 | ||||||||||||||
Derivative investments (1) | - | 340 | 1,518 | 1,858 | ||||||||||||||
Cash and invested cash | - | 2,364 | - | 2,364 | ||||||||||||||
Separate account assets | 1,767 | 115,368 | - | 117,135 | ||||||||||||||
Total assets | $ | 2,318 | $ | 198,482 | $ | 5,059 | $ | 205,859 | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | $ | - | $ | - | $ | -1,048 | $ | -1,048 | ||||||||||
GLB reserves embedded derivatives | - | - | 1,244 | 1,244 | ||||||||||||||
Long-term debt | - | -1,203 | - | -1,203 | ||||||||||||||
Reinsurance related embedded derivatives | - | -108 | - | -108 | ||||||||||||||
VIEs' liabilities – derivative instruments | - | - | -27 | -27 | ||||||||||||||
Other liabilities: | ||||||||||||||||||
Credit default swaps | - | - | -2 | -2 | ||||||||||||||
Derivative liabilities (1) | - | -912 | -252 | -1,164 | ||||||||||||||
Total liabilities | $ | - | $ | -2,223 | $ | -85 | $ | -2,308 | ||||||||||
Benefit Plans' Assets | $ | 114 | $ | 1,357 | $ | - | $ | 1,471 | ||||||||||
-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. | |||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||
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 | $ | 65 | $ | 66,446 | $ | 1,505 | $ | 68,016 | ||||||||||
U.S. government bonds | 411 | 30 | 1 | 442 | ||||||||||||||
Foreign government bonds | - | 608 | 46 | 654 | ||||||||||||||
RMBS | - | 6,168 | 3 | 6,171 | ||||||||||||||
CMBS | - | 976 | 27 | 1,003 | ||||||||||||||
CLOs | - | 26 | 154 | 180 | ||||||||||||||
State and municipal bonds | - | 4,321 | 32 | 4,353 | ||||||||||||||
Hybrid and redeemable preferred securities | 30 | 1,069 | 118 | 1,217 | ||||||||||||||
VIEs' fixed maturity securities | 110 | 598 | - | 708 | ||||||||||||||
Equity AFS securities | 44 | 26 | 87 | 157 | ||||||||||||||
Trading securities | 2 | 2,496 | 56 | 2,554 | ||||||||||||||
Derivative investments | - | 626 | 2,026 | 2,652 | ||||||||||||||
Cash and invested cash | - | 4,230 | - | 4,230 | ||||||||||||||
Separate account assets | 1,519 | 93,854 | - | 95,373 | ||||||||||||||
Total assets | $ | 2,181 | $ | 181,474 | $ | 4,055 | $ | 187,710 | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | $ | - | $ | - | $ | -732 | $ | -732 | ||||||||||
GLB reserves embedded derivatives | - | - | -909 | -909 | ||||||||||||||
Long-term debt | - | -1,203 | - | -1,203 | ||||||||||||||
Reinsurance related embedded derivatives | - | -215 | - | -215 | ||||||||||||||
VIEs' liabilities – derivative instruments | - | - | -128 | -128 | ||||||||||||||
Other liabilities – credit default swaps | - | - | -11 | -11 | ||||||||||||||
Total liabilities | $ | - | $ | -1,418 | $ | -1,780 | $ | -3,198 | ||||||||||
Benefit Plans' Assets | $ | 116 | $ | 1,340 | $ | - | $ | 1,456 | ||||||||||
The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. This summary excludes any effect of amortization of DAC, VOBA, DSI and DFEL. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. | ||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,505 | $ | -18 | $ | -1 | $ | 345 | $ | -120 | $ | 1,711 | ||||||
U.S. government bonds | 1 | - | - | -1 | - | - | ||||||||||||
Foreign government bonds | 46 | - | - | 33 | - | 79 | ||||||||||||
RMBS | 3 | - | - | -2 | - | 1 | ||||||||||||
CMBS | 27 | 1 | 6 | -6 | -8 | 20 | ||||||||||||
CLOs | 154 | -1 | 4 | 50 | -28 | 179 | ||||||||||||
State and municipal bonds | 32 | - | -4 | - | - | 28 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 118 | - | 13 | -35 | -30 | 66 | ||||||||||||
Equity AFS securities | 87 | -1 | 2 | 73 | - | 161 | ||||||||||||
Trading securities | 56 | 3 | -7 | -6 | 6 | 52 | ||||||||||||
Derivative investments | 2,026 | -681 | 96 | -175 | - | 1,266 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -732 | -356 | - | 40 | - | -1,048 | ||||||||||||
GLB reserves embedded derivatives | -909 | 2,153 | - | - | - | 1,244 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -128 | 101 | - | - | - | -27 | ||||||||||||
Other liabilities – credit default swaps (6) | -11 | 9 | - | - | - | -2 | ||||||||||||
Total, net | $ | 2,275 | $ | 1,210 | $ | 109 | $ | 316 | $ | -180 | $ | 3,730 | ||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,888 | $ | -27 | $ | 34 | $ | 266 | $ | -656 | $ | 1,505 | ||||||
U.S. government bonds | 1 | - | - | - | - | 1 | ||||||||||||
Foreign government bonds | 97 | - | - | -5 | -46 | 46 | ||||||||||||
RMBS | 158 | -3 | 3 | -8 | -147 | 3 | ||||||||||||
CMBS | 34 | -11 | 18 | -12 | -2 | 27 | ||||||||||||
CLOs | 102 | -2 | 8 | 61 | -15 | 154 | ||||||||||||
State and municipal bonds | - | - | - | 32 | - | 32 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 100 | -1 | 24 | - | -5 | 118 | ||||||||||||
Equity AFS securities | 56 | -8 | 13 | 26 | - | 87 | ||||||||||||
Trading securities | 68 | 3 | 4 | -2 | -17 | 56 | ||||||||||||
Derivative investments | 2,470 | -790 | 158 | 188 | - | 2,026 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -399 | -136 | - | -197 | - | -732 | ||||||||||||
GLB reserves embedded derivatives | -2,217 | 1,308 | - | - | - | -909 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -291 | 163 | - | - | - | -128 | ||||||||||||
Other liabilities – credit default swaps (6) | -16 | 5 | - | - | - | -11 | ||||||||||||
Total, net | $ | 2,051 | $ | 501 | $ | 262 | $ | 349 | $ | -888 | $ | 2,275 | ||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,816 | $ | 2 | $ | 42 | $ | -138 | $ | 166 | $ | 1,888 | ||||||
U.S. government bonds | 2 | - | - | -1 | - | 1 | ||||||||||||
Foreign government bonds | 113 | - | 4 | -3 | -17 | 97 | ||||||||||||
RMBS | 119 | -3 | 7 | 35 | - | 158 | ||||||||||||
CMBS | 109 | -62 | 62 | -78 | 3 | 34 | ||||||||||||
CLOs | 172 | 19 | -17 | -72 | - | 102 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 119 | -1 | -6 | -9 | -3 | 100 | ||||||||||||
Equity AFS securities | 92 | 8 | -12 | 1 | -33 | 56 | ||||||||||||
Trading securities | 76 | 1 | 3 | -8 | -4 | 68 | ||||||||||||
Derivative investments | 1,495 | 495 | 363 | 117 | - | 2,470 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -497 | 5 | - | 93 | - | -399 | ||||||||||||
GLB reserves embedded derivatives | -408 | -1,809 | - | - | - | -2,217 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -209 | -82 | - | - | - | -291 | ||||||||||||
Other liabilities – credit default swaps (6) | -16 | -7 | - | 7 | - | -16 | ||||||||||||
Total, net | $ | 2,983 | $ | -1,434 | $ | 446 | $ | -56 | $ | 112 | $ | 2,051 | ||||||
Benefit plans' assets (7) | $ | 40 | $ | 2 | $ | -3 | $ | -39 | $ | - | $ | - | ||||||
-1 | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | |||||||||||||||||
-2 | Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. | |||||||||||||||||
-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 | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-5 | 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). | |||||||||||||||||
-6 | Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-7 | The expected return on plan assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, (in millions) as reported above: | ||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 563 | $ | -51 | $ | -47 | $ | -50 | $ | -70 | $ | 345 | ||||||
U.S. government bonds | - | - | - | -1 | - | -1 | ||||||||||||
Foreign government bonds | 50 | - | -17 | - | - | 33 | ||||||||||||
RMBS | - | - | - | -2 | - | -2 | ||||||||||||
CMBS | - | - | - | -4 | -2 | -6 | ||||||||||||
CLOs | 74 | - | - | -24 | - | 50 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | - | -35 | - | - | - | -35 | ||||||||||||
Equity AFS securities | 78 | -5 | - | - | - | 73 | ||||||||||||
Trading securities | - | -3 | -1 | -2 | - | -6 | ||||||||||||
Derivative investments | 152 | -23 | -304 | - | - | -175 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -68 | - | - | 108 | - | 40 | ||||||||||||
Total, net | $ | 849 | $ | -117 | $ | -369 | $ | 25 | $ | -72 | $ | 316 | ||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 364 | $ | -30 | $ | -6 | $ | -55 | $ | -7 | $ | 266 | ||||||
Foreign government bonds | - | - | -5 | - | - | -5 | ||||||||||||
RMBS | - | - | -7 | -1 | - | -8 | ||||||||||||
CMBS | - | - | - | -12 | - | -12 | ||||||||||||
CLOs | 72 | - | - | -11 | - | 61 | ||||||||||||
State and municipal bonds | 32 | - | - | - | - | 32 | ||||||||||||
Equity AFS securities | 26 | - | - | - | - | 26 | ||||||||||||
Trading securities | - | - | - | -2 | - | -2 | ||||||||||||
Derivative investments | 454 | -28 | -238 | - | - | 188 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -99 | - | - | -98 | - | -197 | ||||||||||||
Total, net | $ | 849 | $ | -58 | $ | -256 | $ | -179 | $ | -7 | $ | 349 | ||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 237 | $ | -216 | $ | -16 | $ | -54 | $ | -89 | $ | -138 | ||||||
U.S. government bonds | - | - | - | -1 | - | -1 | ||||||||||||
Foreign government bonds | - | -2 | - | - | -1 | -3 | ||||||||||||
RMBS | 51 | -1 | - | -15 | - | 35 | ||||||||||||
CMBS | - | -53 | - | -24 | -1 | -78 | ||||||||||||
CLOs | - | -33 | - | -39 | - | -72 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 9 | -18 | - | - | - | -9 | ||||||||||||
Equity AFS securities | 19 | -18 | - | - | - | 1 | ||||||||||||
Trading securities | - | -3 | - | -5 | - | -8 | ||||||||||||
Derivative investments | 396 | -2 | -277 | - | - | 117 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -59 | - | - | 152 | - | 93 | ||||||||||||
Other liabilities – credit default swaps | - | 7 | - | - | - | 7 | ||||||||||||
Total, net | $ | 653 | $ | -339 | $ | -293 | $ | 14 | $ | -91 | $ | -56 | ||||||
Benefit plans' assets | $ | - | $ | -22 | $ | -17 | $ | - | $ | - | $ | -39 | ||||||
The following summarizes changes in unrealized gains (losses) included in net income, excluding any effect of amortization of DAC, VOBA, DSI and DFEL and changes in future contract benefits, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions): | ||||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Investments: (1) | ||||||||||||||||||
Derivative investments | $ | -752 | $ | 823 | $ | 472 | ||||||||||||
Future contract benefits: (1) | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | -44 | -10 | -1 | |||||||||||||||
GLB reserves embedded derivatives | 2,444 | 1,472 | -1,615 | |||||||||||||||
VIEs' liabilities – derivative instruments (1) | 101 | 163 | -82 | |||||||||||||||
Other liabilities – credit default swaps (2) | 9 | 6 | -8 | |||||||||||||||
Total, net | $ | 1,758 | $ | 2,454 | $ | -1,234 | ||||||||||||
-1 | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
The following provides the components of the transfers in and out of Level 3 (in millions) as reported above: | ||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 373 | $ | -493 | $ | -120 | ||||||||||||
CMBS | - | -8 | -8 | |||||||||||||||
CLOs | - | -28 | -28 | |||||||||||||||
Hybrid and redeemable preferred securities | 20 | -50 | -30 | |||||||||||||||
Trading securities | 8 | -2 | 6 | |||||||||||||||
Total, net | $ | 401 | $ | -581 | $ | -180 | ||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 35 | $ | -691 | $ | -656 | ||||||||||||
Foreign government bonds | - | -46 | -46 | |||||||||||||||
RMBS | - | -147 | -147 | |||||||||||||||
CMBS | 5 | -7 | -2 | |||||||||||||||
CLOs | 6 | -21 | -15 | |||||||||||||||
Hybrid and redeemable preferred securities | 35 | -40 | -5 | |||||||||||||||
Trading securities | 2 | -19 | -17 | |||||||||||||||
Total, net | $ | 83 | $ | -971 | $ | -888 | ||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 249 | $ | -83 | $ | 166 | ||||||||||||
Foreign government bonds | - | -17 | -17 | |||||||||||||||
CMBS | 4 | -1 | 3 | |||||||||||||||
Hybrid and redeemable preferred securities | 18 | -21 | -3 | |||||||||||||||
Equity AFS securities | 2 | -35 | -33 | |||||||||||||||
Trading securities | 1 | -5 | -4 | |||||||||||||||
Total, net | $ | 274 | $ | -162 | $ | 112 | ||||||||||||
Transfers in and out of Level 3 are generally the result of observable market information on a security no longer being available or becoming available to our pricing vendors. For the years ended December 31, 2013, 2012 and 2011, our corporate bonds and RMBS transfers in and out were attributable primarily to the securities’ observable market information no longer being available or becoming available. Transfers in and out of Levels 1 and 2 are generally the result of a change in the type of input used to measure the fair value of an asset or liability at the end of the reporting period. When quoted prices in active markets become available, transfers from Level 2 to Level 1 will result. When quoted prices in active markets become unavailable, but we are able to employ a valuation methodology using significant observable inputs, transfers from Level 1 to Level 2 will result. For the years ended December 31, 2013, 2012 and 2011, the transfers between Levels 1 and 2 of the fair value hierarchy were less than $1 million for our financial instruments carried at fair value. | ||||||||||||||||||
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2013: | ||||||||||||||||||
Fair | Valuation | Significant | Assumption or | |||||||||||||||
Value | Technique | Unobservable Inputs | Input Ranges | |||||||||||||||
Assets | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS and trading | ||||||||||||||||||
securities: | ||||||||||||||||||
Corporate bonds | $ | 1,082 | Discounted cash flow | Liquidity/duration adjustment (1) | 0.8 | % | - | 10.6 | % | |||||||||
Foreign government bonds | 79 | Discounted cash flow | Liquidity/duration adjustment (1) | 2.3 | % | - | 3.9 | % | ||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 20 | Discounted cash flow | Liquidity/duration adjustment (1) | 2.4 | % | |||||||||||||
Equity AFS and trading | ||||||||||||||||||
securities | 28 | Discounted cash flow | Liquidity/duration adjustment (1) | 4.3 | % | - | 5.9 | % | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -1,048 | Discounted cash flow | Lapse rate (2) | 1 | % | - | 15 | % | ||||||||||
Mortality rate (3) | -8 | |||||||||||||||||
GLB reserves embedded | ||||||||||||||||||
derivatives | 1,244 | Discounted cash flow | Long-term lapse rate (2) | 1 | % | - | 27 | % | ||||||||||
Utilization of guaranteed withdrawal (4) | 90 | % | - | 100 | % | |||||||||||||
Claims utilization factor (5) | 60 | % | - | 100 | % | |||||||||||||
Premiums utilization factor (5) | 77 | % | - | 132 | % | |||||||||||||
NPR (6) | 0 | % | - | 0.53 | % | |||||||||||||
Mortality rate (3) | -9 | |||||||||||||||||
Volatility (7) | 1 | % | - | 28 | % | |||||||||||||
-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 universal life contracts represents the lapse rates during the surrender charge period. | |||||||||||||||||
-3 | 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. | |||||||||||||||||
-4 | The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. | |||||||||||||||||
-5 | 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. | |||||||||||||||||
-6 | The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. | |||||||||||||||||
-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 | Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input. | |||||||||||||||||
-9 | The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. | |||||||||||||||||
From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the broker quotes received may result in a significantly higher or lower fair value measurement. | ||||||||||||||||||
Changes in any of the significant inputs presented in the table above may result in a significant change in the fair value measurement of the asset or liability as follows: | ||||||||||||||||||
· | Investments – An increase in the liquidity/duration adjustment input would result in a decrease in the fair value measurement. | |||||||||||||||||
· | Indexed annuity and universal life contracts – An increase in the lapse rate or mortality rate inputs would result in a decrease in the fair value measurement. | |||||||||||||||||
· | GLB reserves embedded derivatives – Assuming our GLB reserves embedded derivatives are in a liability position: an increase in our lapse rate, NPR or mortality rate inputs would result in a decrease in the fair value measurement; and an increase in the utilization of guarantee withdrawal or volatility inputs would result in an increase in the fair value measurement. | |||||||||||||||||
For each category discussed above, the unobservable inputs are not inter-related; therefore, a directional change in one input will not affect the other inputs. | ||||||||||||||||||
As part of our on-going valuation process, we assess the reasonableness of our valuation techniques or models and make adjustments as necessary. For more information, see “Summary of Significant Accounting Policies” above. | ||||||||||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Information [Abstract] | ' | |||||||||
Segment Information | ' | |||||||||
22. Segment Information | ||||||||||
We provide products and services and report results through our Annuities, Retirement Plan Services, Life Insurance and Group Protection segments. We also have Other Operations, which includes the financial data for operations that are not directly related to the business segments. Our reporting segments reflect the manner by which our chief operating decision makers view and manage the business. The following is a brief description of these segments and Other Operations. | ||||||||||
The Annuities segment provides tax-deferred investment growth and lifetime income opportunities for its clients by offering fixed (including indexed) and variable annuities. | ||||||||||
The Retirement Plan Services segment provides employer-sponsored defined benefit and individual retirement accounts, as well as individual and group variable annuities, group fixed annuities and mutual-fund based programs in the retirement plan marketplace. | ||||||||||
The Life Insurance segment focuses in the creation and protection of wealth through life insurance products, including term insurance, a linked-benefit product (which is a UL policy linked with riders that provide for long-term care costs), indexed UL and both single and survivorship versions of UL and VUL, including corporate-owned UL and VUL insurance and bank-owned UL and VUL insurance products. | ||||||||||
The Group Protection segment offers principally group non-medical insurance products, including term life, universal life, disability, dental, vision, accident and critical illness insurance to the employer market place through various forms of contributory and non-contributory plans. Its products are marketed primarily through a national distribution system of regional group offices. These offices develop business through employee benefit brokers, third-party administrators and other employee benefit firms. | ||||||||||
Other Operations includes investments related to the excess capital in our insurance subsidiaries; investments in media properties and other corporate investments; benefit plan net liability; the unamortized deferred gain on indemnity reinsurance related to the sale of reinsurance; the results of certain disability income business; our run-off Institutional Pension business, the majority of which was sold on a group annuity basis; and debt costs. | ||||||||||
Segment operating revenues and income (loss) from operations are internal measures used by our management and Board of Directors to evaluate and assess the results of our segments. Income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable: | ||||||||||
· | Realized gains and losses associated with the following (“excluded realized gain (loss)”): | |||||||||
§ | Sales or disposals of securities; | |||||||||
§ | Impairments of securities; | |||||||||
§ | Changes in the fair value of derivatives, embedded derivatives within certain reinsurance arrangements and trading securities; | |||||||||
§ | Changes in the fair value of the derivatives we own to hedge our GDB riders within our variable annuities; | |||||||||
§ | Changes in the fair value of the embedded derivatives of our GLB riders accounted for at fair value, net of the change in the fair value of the derivatives we own to hedge them; and | |||||||||
§ | Changes in the fair value of the embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products accounted for at fair value; | |||||||||
· | Changes in reserves resulting from benefit ratio unlocking on our GDB and GLB riders; | |||||||||
· | Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance; | |||||||||
· | Gains (losses) on early extinguishment of debt; | |||||||||
· | Losses from the impairment of intangible assets; | |||||||||
· | Income (loss) from discontinued operations; and | |||||||||
· | Income (loss) from the initial adoption of new accounting standards. | |||||||||
Operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable: | ||||||||||
· | Excluded realized gain (loss); | |||||||||
· | Revenue adjustments from the initial adoption of new accounting standards; | |||||||||
· | Amortization of DFEL arising from changes in GDB and GLB benefit ratio unlocking; and | |||||||||
· | Amortization of deferred gains arising from reserve changes on business sold through reinsurance. | |||||||||
We use our prevailing corporate federal income tax rate of 35% while taking into account any permanent differences for events recognized differently in our financial statements and federal income tax returns when reconciling our non-GAAP measures to the most comparable GAAP measure. Operating revenues and income (loss) from operations do not replace revenues and net income as the GAAP measures of our consolidated results of operations. | ||||||||||
Segment information (in millions) was as follows: | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
Operating revenues: | ||||||||||
Annuities | $ | 3,321 | $ | 2,975 | $ | 2,871 | ||||
Retirement Plan Services | 1,071 | 1,024 | 1,017 | |||||||
Life Insurance | 5,170 | 5,056 | 4,740 | |||||||
Group Protection | 2,260 | 2,091 | 1,938 | |||||||
Other Operations | 417 | 423 | 461 | |||||||
Excluded realized gain (loss), pre-tax | -274 | -39 | -388 | |||||||
Amortization of deferred gain arising from reserve changes on business | ||||||||||
sold through reinsurance, pre-tax | 3 | 4 | 2 | |||||||
Amortization of DFEL associated with benefit ratio unlocking, pre-tax | 1 | 1 | - | |||||||
Total revenues | $ | 11,969 | $ | 11,535 | $ | 10,641 | ||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net Income (Loss) | ||||||||||
Income (loss) from operations: | ||||||||||
Annuities | $ | 750 | $ | 595 | $ | 573 | ||||
Retirement Plan Services | 141 | 130 | 163 | |||||||
Life Insurance | 544 | 574 | 559 | |||||||
Group Protection | 71 | 72 | 97 | |||||||
Other Operations | -122 | -87 | -146 | |||||||
Excluded realized gain (loss), after-tax | -178 | -25 | -252 | |||||||
Gain (loss) on early extinguishment of debt, after-tax | - | -3 | -5 | |||||||
Income (loss) from reserve changes (net of related | ||||||||||
amortization) on business sold through reinsurance, after-tax | 2 | 3 | 2 | |||||||
Impairment of intangibles, after-tax | - | 2 | -747 | |||||||
Benefit ratio unlocking, after-tax | 36 | 25 | -15 | |||||||
Income (loss) from continuing operations, after-tax | 1,244 | 1,286 | 229 | |||||||
Income (loss) from discontinued operations, after-tax | - | 27 | -8 | |||||||
Net income (loss) | $ | 1,244 | $ | 1,313 | $ | 221 | ||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net Investment Income | ||||||||||
Annuities | $ | 1,044 | $ | 1,082 | $ | 1,106 | ||||
Retirement Plan Services | 827 | 799 | 792 | |||||||
Life Insurance | 2,452 | 2,396 | 2,294 | |||||||
Group Protection | 165 | 162 | 152 | |||||||
Other Operations | 266 | 259 | 308 | |||||||
Total net investment income | $ | 4,754 | $ | 4,698 | $ | 4,652 | ||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Amortization of DAC and VOBA, Net of Interest | ||||||||||
Annuities | $ | 383 | $ | 321 | $ | 351 | ||||
Retirement Plan Services | 48 | 42 | 33 | |||||||
Life Insurance | 447 | 614 | 423 | |||||||
Group Protection | 53 | 49 | 39 | |||||||
Total amortization of DAC and VOBA, net of interest | $ | 931 | $ | 1,026 | $ | 846 | ||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Federal Income Tax Expense (Benefit) | ||||||||||
Annuities | $ | 177 | $ | 121 | $ | 104 | ||||
Retirement Plan Services | 49 | 38 | 63 | |||||||
Life Insurance | 268 | 264 | 276 | |||||||
Group Protection | 38 | 39 | 52 | |||||||
Other Operations | -71 | -177 | -77 | |||||||
Excluded realized gain (loss) | -95 | -14 | -136 | |||||||
Gain (loss) on early extinguishment of debt | - | -2 | -3 | |||||||
Reserve changes (net of related amortization) | ||||||||||
on business sold through reinsurance | 1 | 1 | 1 | |||||||
Impairment of intangibles | - | -2 | - | |||||||
Benefit ratio unlocking | 20 | 14 | -6 | |||||||
Total federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Assets | ||||||||||
Annuities | $ | 120,267 | $ | 106,906 | ||||||
Retirement Plan Services | 32,369 | 30,651 | ||||||||
Life Insurance | 65,639 | 64,115 | ||||||||
Group Protection | 3,865 | 3,733 | ||||||||
Other Operations | 14,805 | 13,464 | ||||||||
Total assets | $ | 236,945 | $ | 218,869 | ||||||
Supplemental_Disclosures_of_Ca
Supplemental Disclosures of Cash Flow | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Cash Flow, Supplemental Disclosures | ' | |||||||||
23. Supplemental Disclosures of Cash Flow Data | ||||||||||
The following summarizes our supplemental cash flow data (in millions): | ||||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Interest paid | $ | 260 | $ | 270 | $ | 287 | ||||
Income taxes paid (received) | 10 | 124 | -36 | |||||||
Significant non-cash investing and financing transactions: | ||||||||||
Value of stock received from stock options exercised | ||||||||||
through stock swap transactions | $ | 5 | $ | - | $ | - | ||||
Business dispositions: | ||||||||||
Liabilities disposed | $ | - | $ | - | $ | -3 | ||||
Cash received (paid) | - | -1 | - | |||||||
Gain (loss) on dispositions | $ | - | $ | -1 | $ | -3 | ||||
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||
Quarterly Results of Operations (Unaudited) | ' | ||||||||||||||
24. Quarterly Results of Operations (Unaudited) | |||||||||||||||
The unaudited quarterly results of operations (in millions, except per share data) were as follows: | |||||||||||||||
For the Three Months Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||
2013 | |||||||||||||||
Total revenues | $ | 2,839 | $ | 2,999 | $ | 3,009 | $ | 3,122 | |||||||
Total expenses | 2,534 | 2,581 | 2,567 | 2,656 | |||||||||||
Net income (loss) | 239 | 317 | 337 | 351 | |||||||||||
Earnings (loss) per common share – basic: | |||||||||||||||
Net income (loss) | 0.89 | 1.19 | 1.28 | 1.34 | |||||||||||
Earnings (loss) per common share – diluted: | |||||||||||||||
Net income (loss) | 0.86 | 1.15 | 1.23 | 1.29 | |||||||||||
2012 | |||||||||||||||
Total revenues | $ | 2,710 | $ | 2,898 | $ | 2,954 | $ | 2,973 | |||||||
Total expenses | 2,402 | 2,456 | 2,536 | 2,573 | |||||||||||
Income (loss) from continuing operations | 244 | 322 | 400 | 320 | |||||||||||
Income (loss) from discontinued operations, | |||||||||||||||
net of federal income taxes | -1 | - | 28 | - | |||||||||||
Net income (loss) | 243 | 322 | 428 | 320 | |||||||||||
Earnings (loss) per common share – basic: | |||||||||||||||
Income (loss) from continuing operations | 0.84 | 1.14 | 1.44 | 1.17 | |||||||||||
Income (loss) from discontinued operations | - | - | 0.10 | - | |||||||||||
Net income (loss) | 0.84 | 1.14 | 1.54 | 1.17 | |||||||||||
Earnings (loss) per common share – diluted: | |||||||||||||||
Income (loss) from continuing operations | 0.82 | 1.09 | 1.41 | 1.14 | |||||||||||
Income (loss) from discontinued operations | - | - | 0.10 | - | |||||||||||
Net income (loss) | 0.82 | 1.09 | 1.51 | 1.14 | |||||||||||
SCHEDULE_I_CONSOLIDATED_SUMMAR
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS, OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule To Financial Statements [Abstract] | ' | ||||||||||
Summary of Investments - Other than Investments in Related Parties Supplemental Schedule | ' | ||||||||||
LINCOLN NATIONAL CORPORATION | |||||||||||
SCHEDULE I – CONSOLIDATED SUMMARY OF INVESTMENTS – OTHER THAN | |||||||||||
INVESTMENTS IN RELATED PARTIES | |||||||||||
(in millions) | |||||||||||
Column A | Column B | Column C | Column D | ||||||||
As of December 31, 2013 | |||||||||||
Fair | Carrying | ||||||||||
Type of Investment | Cost | Value | Value | ||||||||
Available-For-Sale Fixed Maturity Securities (1) | |||||||||||
Bonds: | |||||||||||
U.S. government and government agencies and authorities | $ | 355 | $ | 367 | $ | 367 | |||||
States, municipalities and political subdivisions | 3,638 | 3,919 | 3,919 | ||||||||
Mortgage-backed securities | 4,848 | 5,078 | 5,078 | ||||||||
Foreign governments | 505 | 549 | 549 | ||||||||
Public utilities | 12,997 | 13,653 | 13,653 | ||||||||
All other corporate bonds | 53,043 | 55,507 | 55,507 | ||||||||
Hybrid and redeemable preferred securities | 967 | 1,005 | 1,005 | ||||||||
Variable interest entities | 682 | 697 | 697 | ||||||||
Total available-for-sale fixed maturity securities | 77,035 | 80,775 | 80,775 | ||||||||
Available-For-Sale Equity Securities (1) | |||||||||||
Common stocks: | |||||||||||
Banks, trusts and insurance companies | 157 | 164 | 164 | ||||||||
Industrial, miscellaneous and all other | 2 | 4 | 4 | ||||||||
Nonredeemable preferred securities | 23 | 33 | 33 | ||||||||
Total available-for-sale equity securities | 182 | 201 | 201 | ||||||||
Trading securities | 2,027 | 2,282 | 2,282 | ||||||||
Mortgage loans on real estate | 7,210 | 7,386 | 7,210 | ||||||||
Real estate | 47 | N/A | 47 | ||||||||
Policy loans | 2,677 | N/A | 2,677 | ||||||||
Derivative investments (2) | 1,708 | 881 | 881 | ||||||||
Other investments | 1,218 | 1,218 | 1,218 | ||||||||
Total investments | $ | 92,104 | $ | 95,291 | |||||||
-1 | Investments deemed to have declines in value that are other-than-temporary are written down or reserved for to reduce the carrying value to their estimated realizable value. | ||||||||||
-2 | Derivative investment assets were offset by $187 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets. | ||||||||||
SCHEDULE_II_CONDENSED_FINANCIA
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule To Financial Statements [Abstract] | ' | ||||||||
Condensed financial information of registrant | ' | ||||||||
LINCOLN NATIONAL CORPORATION | |||||||||
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||
BALANCE SHEETS | |||||||||
(Parent Company Only) (in millions, except share data) | |||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
ASSETS | |||||||||
Investments in subsidiaries (1) | $ | 15,782 | $ | 17,557 | |||||
Derivative investments | 264 | 389 | |||||||
Other investments | 55 | 30 | |||||||
Cash and invested cash | 1,558 | 844 | |||||||
Loans and accrued interest to subsidiaries (1) | 2,995 | 2,585 | |||||||
Other assets | 54 | 27 | |||||||
Total assets | $ | 20,708 | $ | 21,432 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
Liabilities | |||||||||
Common and preferred dividends payable | $ | 42 | $ | 33 | |||||
Short-term debt | 501 | 200 | |||||||
Long-term debt | 5,571 | 5,689 | |||||||
Loans from subsidiaries (1) | 460 | 55 | |||||||
Payables for collateral on investments | 374 | 59 | |||||||
Other liabilities | 308 | 423 | |||||||
Total liabilities | 7,256 | 6,459 | |||||||
Contingencies and Commitments | |||||||||
Stockholders' Equity | |||||||||
Preferred stock – 10,000,000 shares authorized; Series A | - | - | |||||||
Common stock – 800,000,000 shares authorized | 6,876 | 7,121 | |||||||
Retained earnings | 5,013 | 4,044 | |||||||
Accumulated other comprehensive income (loss) | 1,563 | 3,808 | |||||||
Total stockholders' equity | 13,452 | 14,973 | |||||||
Total liabilities and stockholders' equity | $ | 20,708 | $ | 21,432 | |||||
-1 | Eliminated in consolidation. | ||||||||
LINCOLN NATIONAL CORPORATION | |||||||||
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) | |||||||||
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||||||||
(Parent Company Only) (in millions) | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Revenues | |||||||||
Dividends from subsidiaries (1) | $ | 725 | $ | 635 | $ | 875 | |||
Interest from subsidiaries (1) | 128 | 128 | 125 | ||||||
Net investment income | - | 1 | 2 | ||||||
Realized gain (loss) | -9 | -6 | -3 | ||||||
Other revenues | 5 | 25 | 25 | ||||||
Total revenues | 849 | 783 | 1,024 | ||||||
Expenses | |||||||||
Operating and administrative | 46 | 10 | 27 | ||||||
Interest – subsidiaries (1) | 5 | 5 | 5 | ||||||
Interest – other | 282 | 291 | 310 | ||||||
Total expenses | 333 | 306 | 342 | ||||||
Income (loss) before federal income taxes, equity in income (loss) of | |||||||||
subsidiaries, less dividends | 516 | 477 | 682 | ||||||
Federal income tax expense (benefit) | -73 | -85 | -68 | ||||||
Income (loss) before equity in income (loss) of subsidiaries, less dividends | 589 | 562 | 750 | ||||||
Equity in income (loss) of subsidiaries, less dividends | 655 | 751 | -529 | ||||||
Net income (loss) | 1,244 | 1,313 | 221 | ||||||
Other comprehensive income (loss), net of tax: | |||||||||
Unrealized gain (loss) on available-for-sale securities | -2,457 | 1,119 | 1,771 | ||||||
Unrealized other-than-temporary impairment on available-for-sale securities | 29 | 2 | 25 | ||||||
Unrealized gain (loss) on derivatives instruments | 93 | 44 | 130 | ||||||
Foreign currency translation adjustment | -1 | -5 | - | ||||||
Funded status of employee benefit plans | 91 | -32 | -97 | ||||||
Total other comprehensive income (loss), net of tax | -2,245 | 1,128 | 1,829 | ||||||
Comprehensive income (loss) | $ | -1,001 | $ | 2,441 | $ | 2,050 | |||
-1 | Eliminated in consolidation. | ||||||||
LINCOLN NATIONAL CORPORATION | |||||||||
SCHEDULE II – CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Continued) | |||||||||
STATEMENTS OF CASH FLOWS | |||||||||
(Parent Company Only) (in millions) | |||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Cash Flows from Operating Activities | |||||||||
Net income (loss) | $ | 1,244 | $ | 1,313 | $ | 221 | |||
Adjustments to reconcile net income (loss) to net cash provided by | |||||||||
operating activities: | |||||||||
Equity in (income) loss of subsidiaries greater than distributions (1) | -655 | -751 | 529 | ||||||
Realized (gain) loss | 9 | 6 | 3 | ||||||
Change in legal accruals | - | - | -70 | ||||||
Change in federal income tax accruals | 63 | 170 | 32 | ||||||
(Gain) loss on early extinguishment of debt | - | 5 | 8 | ||||||
Other | -10 | -13 | -21 | ||||||
Net cash provided by (used in) operating activities | 651 | 730 | 702 | ||||||
Cash Flows from Investing Activities | |||||||||
Sales or maturities of investments | - | - | 105 | ||||||
Investment acquisition | -25 | - | - | ||||||
Capital contribution to subsidiaries (1) | -75 | - | -17 | ||||||
Increase (decrease) in payables for collateral on investments | 315 | 73 | - | ||||||
Net cash provided by (used in) investing activities | 215 | 73 | 88 | ||||||
Cash Flows from Financing Activities | |||||||||
Payment of long-term debt, including current maturities | - | -320 | -525 | ||||||
Issuance of long-term debt, net of issuance costs | 400 | 300 | 300 | ||||||
Increase (decrease) in commercial paper, net | - | - | -100 | ||||||
Increase (decrease) in loans from subsidiaries, net (1) | 405 | -3 | 58 | ||||||
Increase (decrease) in loans to subsidiaries, net (1) | -410 | 20 | 154 | ||||||
Common stock issued for benefit plans and excess tax benefits | 32 | 5 | 1 | ||||||
Repurchase of common stock | -450 | -493 | -576 | ||||||
Dividends paid to common and preferred stockholders | -129 | -90 | -62 | ||||||
Net cash provided by (used in) financing activities | -152 | -581 | -750 | ||||||
Net increase (decrease) in cash and invested cash | 714 | 222 | 40 | ||||||
Cash and invested cash as of beginning-of-year | 844 | 622 | 582 | ||||||
Cash and invested cash as of end-of-year | $ | 1,558 | $ | 844 | $ | 622 | |||
-1 | Eliminated in consolidation. | ||||||||
SCHEDULE_III_CONSOLIDATED_SUPP
SCHEDULE III - CONSOLIDATED SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Schedule To Financial Statements [Abstract] | ' | ||||||||||||||||||
Supplementary Insurance Information | ' | ||||||||||||||||||
LINCOLN NATIONAL CORPORATION | |||||||||||||||||||
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | ||||||||||||||
Other | |||||||||||||||||||
Future | Contract | ||||||||||||||||||
DAC and | Contract | Unearned | Holder | Insurance | |||||||||||||||
Segment | VOBA | Benefits | Premiums (1) | Funds | Premiums | ||||||||||||||
As of or For the Year Ended December 31, 2013 | |||||||||||||||||||
Annuities | $ | 2,770 | $ | 138 | $ | - | $ | 21,269 | $ | 116 | |||||||||
Retirement Plan Services | 173 | - | - | 15,310 | - | ||||||||||||||
Life Insurance | 5,713 | 9,058 | - | 36,997 | 486 | ||||||||||||||
Group Protection | 230 | 2,033 | - | 200 | 2,084 | ||||||||||||||
Other Operations | - | 6,022 | - | 772 | 1 | ||||||||||||||
Total | $ | 8,886 | $ | 17,251 | $ | - | $ | 74,548 | $ | 2,687 | |||||||||
As of or For the Year Ended December 31, 2012 | |||||||||||||||||||
Annuities | $ | 2,092 | $ | 2,339 | $ | - | $ | 21,108 | $ | 98 | |||||||||
Retirement Plan Services | 102 | 3 | - | 14,712 | - | ||||||||||||||
Life Insurance | 4,281 | 9,177 | - | 35,365 | 441 | ||||||||||||||
Group Protection | 192 | 1,882 | - | 223 | 1,919 | ||||||||||||||
Other Operations | - | 6,379 | - | 810 | 4 | ||||||||||||||
Total | $ | 6,667 | $ | 19,780 | $ | - | $ | 72,218 | $ | 2,462 | |||||||||
As of or For the Year Ended December 31, 2011 | |||||||||||||||||||
Annuities | $ | 1,912 | $ | 3,642 | $ | - | $ | 20,701 | $ | 74 | |||||||||
Retirement Plan Services | 183 | 7 | - | 13,624 | - | ||||||||||||||
Life Insurance | 4,516 | 7,984 | - | 34,066 | 441 | ||||||||||||||
Group Protection | 165 | 1,742 | - | 236 | 1,778 | ||||||||||||||
Other Operations | - | 6,438 | - | 839 | 1 | ||||||||||||||
Total | $ | 6,776 | $ | 19,813 | $ | - | $ | 69,466 | $ | 2,294 | |||||||||
-1 | Unearned premiums are included in Column E, other contract holder funds. | ||||||||||||||||||
LINCOLN NATIONAL CORPORATION | |||||||||||||||||||
SCHEDULE III – CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Continued) | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Asd | |||||||||||||||||||
Column A | Column G | Column H | Column I | Column J | Column K | ||||||||||||||
Benefits | Amortization | ||||||||||||||||||
Net | and | of DAC | Other | ||||||||||||||||
Investment | Interest | and | Operating | Premiums | |||||||||||||||
Segment | Income | Credited | VOBA | Expenses (2) | Written | ||||||||||||||
As of or For the Year Ended December 31, 2013 | |||||||||||||||||||
Annuities | $ | 1,044 | $ | 835 | $ | 390 | $ | 1,113 | $ | - | |||||||||
Retirement Plan Services | 827 | 470 | 48 | 363 | - | ||||||||||||||
Life Insurance | 2,452 | 3,283 | 447 | 628 | - | ||||||||||||||
Group Protection | 165 | 1,562 | 53 | 537 | - | ||||||||||||||
Other Operations | 266 | 222 | - | 387 | - | ||||||||||||||
Total | $ | 4,754 | $ | 6,372 | $ | 938 | $ | 3,028 | $ | - | |||||||||
As of or For the Year Ended December 31, 2012 | |||||||||||||||||||
Annuities | $ | 1,082 | $ | 868 | $ | 325 | $ | 1,018 | $ | - | |||||||||
Retirement Plan Services | 799 | 451 | 42 | 363 | - | ||||||||||||||
Life Insurance | 2,396 | 2,982 | 614 | 619 | - | ||||||||||||||
Group Protection | 162 | 1,447 | 48 | 485 | - | ||||||||||||||
Other Operations | 259 | 260 | - | 432 | - | ||||||||||||||
Total | $ | 4,698 | $ | 6,008 | $ | 1,029 | $ | 2,917 | $ | - | |||||||||
As of or For the Year Ended December 31, 2011 | |||||||||||||||||||
Annuities | $ | 1,106 | $ | 933 | $ | 351 | $ | 933 | $ | - | |||||||||
Retirement Plan Services | 792 | 439 | 33 | 319 | - | ||||||||||||||
Life Insurance | 2,294 | 2,904 | 423 | 578 | - | ||||||||||||||
Group Protection | 152 | 1,317 | 39 | 433 | - | ||||||||||||||
Other Operations | 308 | 240 | - | 453 | - | ||||||||||||||
Total | $ | 4,652 | $ | 5,833 | $ | 846 | $ | 2,716 | $ | - | |||||||||
-2 | Excludes impairment of intangibles of $747 million for the year ended December 31, 2011. The allocation of expenses between investments and other operations is based on a number of assumptions and estimates. Results would change if different methods were applied. | ||||||||||||||||||
SCHEDULE_IV_CONSOLIDATED_REINS
SCHEDULE IV - CONSOLIDATED REINSURANCE | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Schedule To Financial Statements [Abstract] | ' | |||||||||||||||||
Reinsurance Supplemental Schedule | ' | |||||||||||||||||
LINCOLN NATIONAL CORPORATION | ||||||||||||||||||
SCHEDULE IV – CONSOLIDATED REINSURANCE | ||||||||||||||||||
(in millions) | ||||||||||||||||||
Adsfas | ||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | |||||||||||||
Ceded | Assumed | Percentage | ||||||||||||||||
to | from | of Amount | ||||||||||||||||
Gross | Other | Other | Net | Assumed | ||||||||||||||
Description | Amount | Companies | Companies | Amount | to Net | |||||||||||||
As of or For the Year Ended December 31, 2013 | ||||||||||||||||||
Individual life insurance in force (1) | $ | 990,600 | $ | 313,200 | $ | 1,700 | $ | 679,100 | 0.3% | |||||||||
Premiums: | ||||||||||||||||||
Life insurance and annuities (2) | 6,644 | 1,247 | 8 | 5,405 | 0.1% | |||||||||||||
Accident and health insurance | 1,379 | 28 | - | 1,351 | 0.0% | |||||||||||||
Total premiums | $ | 8,023 | $ | 1,275 | $ | 8 | $ | 6,756 | ||||||||||
As of or For the Year Ended December 31, 2012 | ||||||||||||||||||
Individual life insurance in force (1) | $ | 929,100 | $ | 323,300 | $ | 2,000 | $ | 607,800 | 0.3% | |||||||||
Premiums: | ||||||||||||||||||
Life insurance and annuities (2) | 6,113 | 1,164 | 9 | 4,958 | 0.2% | |||||||||||||
Accident and health insurance | 1,266 | 26 | - | 1,240 | 0.0% | |||||||||||||
Total premiums | $ | 7,379 | $ | 1,190 | $ | 9 | $ | 6,198 | ||||||||||
As of or For the Year Ended December 31, 2011 | ||||||||||||||||||
Individual life insurance in force (1) | $ | 881,100 | $ | 331,700 | $ | 2,800 | $ | 552,200 | 0.5% | |||||||||
Premiums: | ||||||||||||||||||
Life insurance and annuities (2) | 5,811 | 1,252 | 10 | 4,569 | 0.2% | |||||||||||||
Accident and health insurance | 1,186 | 24 | - | 1,162 | 0.0% | |||||||||||||
Total premiums | $ | 6,997 | $ | 1,276 | $ | 10 | $ | 5,731 | ||||||||||
-1 | Includes Group Protection segment and Other Operations in-force amounts. | |||||||||||||||||
-2 | Includes insurance fees on universal life and other interest-sensitive products. | |||||||||||||||||
SCHEDULE_V_CONSOLIDATED_VALUAT
SCHEDULE V - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule To Financial Statements [Abstract] | ' | ||||||||||||||||||||
Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
LINCOLN NATIONAL CORPORATION | |||||||||||||||||||||
SCHEDULE V – CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
ads | |||||||||||||||||||||
Column C | |||||||||||||||||||||
Column A | Column B | Additions | Column D | Column E | |||||||||||||||||
Charged | |||||||||||||||||||||
Balance at | Charged to | to Other | Balance | ||||||||||||||||||
Beginning- | Costs | Accounts - | Deductions - | at End- | |||||||||||||||||
Description | of-Year | Expenses (1) | Describe | Describe (2) | of-Year | ||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Reserve for mortgage loans on real estate | $ | 21 | $ | 3 | $ | - | $ | -21 | $ | 3 | |||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Reserve for mortgage loans on real estate | $ | 31 | $ | 14 | $ | - | $ | -24 | $ | 21 | |||||||||||
For the Year Ended December 31, 2011 | |||||||||||||||||||||
Deducted from asset accounts: | |||||||||||||||||||||
Reserve for mortgage loans on real estate | $ | 13 | $ | 24 | $ | - | $ | -6 | $ | 31 | |||||||||||
-1 | Excludes charges for the direct write-off assets. | ||||||||||||||||||||
-2 | Deductions reflect sales, foreclosures of the underlying holdings or change in reserves. | ||||||||||||||||||||
Nature_of_Operations_Basis_of_
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes to Financial Statements [Abstract] | ' | |||
Principles Of Consolidation, Policy | ' | |||
Principles of Consolidation | ||||
The accompanying consolidated financial statements include the accounts of LNC and all other entities in which we have a controlling financial interest and any variable interest entities (“VIEs”) in which we are the primary beneficiary. Entities in which we do not have a controlling financial interest and do not exercise significant management influence over the operating and financing decisions are reported using the equity method. All material inter-company accounts and transactions have been eliminated in consolidation. | ||||
Our involvement with VIEs is primarily to invest in assets that allow us to gain exposure to a broadly diversified portfolio of asset classes. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support or where investors lack certain characteristics of a controlling financial interest. We assess our contractual, ownership or other interests in a VIE to determine if our interest participates in the variability the VIE was designed to absorb and pass onto variable interest holders. We perform an ongoing qualitative assessment of our variable interests in VIEs to determine whether we have a controlling financial interest and would therefore be considered the primary beneficiary of the VIE. If we determine we are the primary beneficiary of a VIE, we consolidate the assets and liabilities of the VIE in our consolidated financial statements. | ||||
Accounting Estimates and Assumptions, Policy | ' | |||
Accounting Estimates and Assumptions | ||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses for the reporting period. Those estimates are inherently subject to change and actual results could differ from those estimates. Included among the material (or potentially material) reported amounts and disclosures that require extensive use of estimates are: fair value of certain invested assets and derivatives, asset valuation allowances, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred sales inducements (“DSI”), goodwill, future contract benefits, other contract holder funds including deferred front-end loads (“DFEL”), pension plans, stock-based incentive compensation, income taxes and the potential effects of resolving litigated matters. | ||||
Business Combinations, Policy | ' | |||
Business Combinations | ||||
We use the acquisition method of accounting for all business combination transactions, and accordingly, recognize the fair values of assets acquired, liabilities assumed and any noncontrolling interests in our consolidated financial statements. The allocation of fair values may be subject to adjustment after the initial allocation for up to a one-year period as more information becomes available relative to the fair values as of the acquisition date. The consolidated financial statements include the results of operations of any acquired company since the acquisition date. | ||||
Fair Value Measurement, Policy | ' | |||
Fair Value Measurement | ||||
Our measurement of fair value is based on assumptions used by market participants in pricing the asset or liability, which may include inherent risk, restrictions on the sale or use of an asset or non-performance risk, which would include our own credit risk. Our estimate of an exchange price is the price in an orderly transaction between market participants to sell the asset or transfer the liability (“exit price”) in the principal market, or the most advantageous market in the absence of a principal market, for that asset or liability, as opposed to the price that would be paid to acquire the asset or receive a liability (“entry price”). Pursuant to the Fair Value Measurements and Disclosures Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards CodificationTM (“ASC”), | ||||
we categorize our financial instruments carried at fair value into a three-level fair value hierarchy, based on the priority of inputs to the respective valuation technique. The three-level hierarchy for fair value measurement is defined as follows: | ||||
· | Level 1 – inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date, except for large holdings subject to “blockage discounts” that are excluded; | |||
· | Level 2 – inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and | |||
· | Level 3 – inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability, and we make estimates and assumptions related to the pricing of the asset or liability, including assumptions regarding risk. | |||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. | ||||
When a determination is made to classify an asset or liability within Level 3 of the fair value hierarchy, the determination is based upon the significance of the unobservable inputs to the overall fair value measurement. Because certain securities trade in less liquid or illiquid markets with limited or no pricing information, the determination of fair value for these securities is inherently more difficult. However, Level 3 fair value investments may include, in addition to the unobservable or Level 3 inputs, observable components, which are components that are actively quoted or can be validated to market-based sources. | ||||
Available-For-Sale Securities - Fair Value Methodologies and Associated inputs, Policy | ' | |||
Available-For-Sale Securities – Fair Valuation Methodologies and Associated Inputs | ||||
Securities classified as available-for-sale (“AFS”) consist of fixed maturity and equity securities and are stated at fair value with unrealized gains and losses included within accumulated other comprehensive income (loss) (“AOCI”), net of associated DAC, VOBA, DSI, future contract benefits, other contract holder funds and deferred income taxes. | ||||
We measure the fair value of our securities classified as AFS based on assumptions used by market participants in pricing the security. The most appropriate valuation methodology is selected based on the specific characteristics of the fixed maturity or equity security, and we consistently apply the valuation methodology to measure the security’s fair value. Our fair value measurement is based on a market approach that utilizes prices and other relevant information generated by market transactions involving identical or comparable securities. Sources of inputs to the market approach primarily include third-party pricing services, independent broker quotations or pricing matrices. We do not adjust prices received from third parties; however, we do analyze the third-party pricing services’ valuation methodologies and related inputs and perform additional evaluation to determine the appropriate level within the fair value hierarchy. | ||||
The observable and unobservable inputs to our valuation methodologies are based on a set of standard inputs that we generally use to evaluate all of our AFS securities. Observable inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. In addition, market indicators, industry and economic events are monitored, and further market data is acquired if certain triggers are met. For certain security types, additional inputs may be used, or some of the inputs described above may not be applicable. For private placement securities, we use pricing matrices that utilize observable pricing inputs of similar public securities and Treasury yields as inputs to the fair value measurement. Depending on the type of security or the daily market activity, standard inputs may be prioritized differently or may not be available for all AFS securities on any given day. For broker-quoted only securities, non-binding quotes from market makers or broker-dealers are obtained from sources recognized as market participants. For securities trading in less liquid or illiquid markets with limited or no pricing information, we use unobservable inputs to measure fair value. | ||||
The following summarizes our fair valuation methodologies and associated inputs, which are particular to the specified security type and are in addition to the defined standard inputs to our valuation methodologies for all of our AFS securities discussed above: | ||||
· | Corporate bonds and U.S. government bonds – We also use Trade Reporting and Compliance EngineTM reported tables for our corporate bonds and vendor trading platform data for our U.S. government bonds. | |||
· | Mortgage- and asset-backed securities – We also utilize additional inputs, which include new issues data, monthly payment information and monthly collateral performance, including prepayments, severity, delinquencies, step-down features and over collateralization features for each of our mortgage-backed securities (“MBS”), which include collateralized mortgage obligations and mortgage pass through securities backed by residential mortgages (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLOs”) and collateralized debt obligations (“CDOs”). | |||
· | State and municipal bonds – We also use additional inputs that include information from the Municipal Securities Rule Making Board, as well as material event notices, new issue data, issuer financial statements and Municipal Market Data benchmark yields for our state and municipal bonds. | |||
· | Hybrid and redeemable preferred and equity securities – We also utilize additional inputs of exchange prices (underlying and common stock of the same issuer) for our hybrid and redeemable preferred and equity securities. | |||
In order to validate the pricing information and broker-dealer quotes, we employ, where possible, procedures that include comparisons with similar observable positions, comparisons with subsequent sales and observations of general market movements for those security classes. We have policies and procedures in place to review the process that is utilized by our third-party pricing service and the output that is provided to us by the pricing service. On a periodic basis, we test the pricing for a sample of securities to evaluate the inputs and assumptions used by the pricing service, and we perform a comparison of the pricing service output to an alternative pricing source. We also evaluate prices provided by our primary pricing service to ensure that they are not stale or unreasonable by reviewing the prices for unusual changes from period to period based on certain parameters or for lack of change from one period to the next. | ||||
AFS - Evaluation for Recovery of Amortized Cost, Policy | ' | |||
AFS Securities – Evaluation for Recovery of Amortized Cost | ||||
We regularly review our AFS securities for declines in fair value that we determine to be other-than-temporary. For an equity security, if we do not have the ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, we conclude that an other-than-temporary impairment (“OTTI”) has occurred and the amortized cost of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). When assessing our ability and intent to hold the equity security to recovery, we consider, among other things, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, a fundamental analysis of the liquidity, and business prospects and overall financial condition of the issuer. | ||||
For our fixed maturity AFS securities (also referred to as “debt securities”), we generally consider the following to determine whether our unrealized losses are other-than-temporarily impaired: | ||||
· | The estimated range and average period until recovery; | |||
· | The estimated range and average holding period to maturity; | |||
· | Remaining payment terms of the security; | |||
· | Current delinquencies and nonperforming assets of underlying collateral; | |||
· | Expected future default rates; | |||
· | Collateral value by vintage, geographic region, industry concentration or property type; | |||
· | Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and | |||
· | Contractual and regulatory cash obligations. | |||
For a debt security, if we intend to sell a security, or it is more likely than not we will be required to sell a debt security before recovery of its amortized cost basis and the fair value of the debt security is below amortized cost, we conclude that an OTTI has occurred and the amortized cost is written down to current fair value, with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). If we do not intend to sell a debt security, or it is not more likely than not we will be required to sell a debt security before recovery of its amortized cost basis but the present value of the cash flows expected to be collected is less than the amortized cost of the debt security (referred to as the credit loss), we conclude that an OTTI has occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge to realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss), as this amount is deemed the credit portion of the OTTI. The remainder of the decline to fair value is recorded in other comprehensive income (“OCI”) to unrealized OTTI on AFS securities on our Consolidated Statements of Stockholders’ Equity, as this amount is considered a noncredit (i.e., recoverable) impairment. | ||||
When assessing our intent to sell a debt security, or if it is more likely than not we will be required to sell a debt security before recovery of its cost basis, we evaluate facts and circumstances such as, but not limited to, decisions to reposition our security portfolio, sales of securities to meet cash flow needs and sales of securities to capitalize on favorable pricing. In order to determine the amount of the credit loss for a debt security, we calculate the recovery value by performing a discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover. The discount rate is the effective interest rate implicit in the underlying debt security. The effective interest rate is the original yield, or the coupon if the debt security was previously impaired. See the discussion below for additional information on the methodology and significant inputs, by security type, which we use to determine the amount of a credit loss. | ||||
Our conclusion that it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis, the estimated future cash flows are equal to or greater than the amortized cost basis of the debt securities, or we have the ability to hold the equity AFS securities for a period of time sufficient for recovery is based upon our asset-liability management process. Management considers the following as part of the evaluation: | ||||
· | The current economic environment and market conditions; | |||
· | Our business strategy and current business plans; | |||
· | The nature and type of security, including expected maturities and exposure to general credit, liquidity, market and interest rate risk; | |||
· | Our analysis of data from financial models and other internal and industry sources to evaluate the current effectiveness of our hedging and overall risk management strategies; | |||
· | The current and expected timing of contractual maturities of our assets and liabilities, expectations of prepayments on investments and expectations for surrenders and withdrawals of life insurance policies and annuity contracts; | |||
· | The capital risk limits approved by management; and | |||
· | Our current financial condition and liquidity demands. | |||
To determine the recovery period of a debt security, we consider the facts and circumstances surrounding the underlying issuer including, but not limited to, the following: | ||||
· | Historical and implied volatility of the security; | |||
· | Length of time and extent to which the fair value has been less than amortized cost; | |||
· | Adverse conditions specifically related to the security or to specific conditions in an industry or geographic area; | |||
· | Failure, if any, of the issuer of the security to make scheduled payments; and | |||
· | Recoveries or additional declines in fair value subsequent to the balance sheet date. | |||
In periods subsequent to the recognition of an OTTI, the AFS security is accounted for as if it had been purchased on the measurement date of the OTTI. Therefore, for the fixed maturity AFS security, the original discount or reduced premium is reflected in net investment income over the contractual term of the investment in a manner that produces a constant effective yield. | ||||
To determine recovery value of a corporate bond, CLO or CDO, we perform additional analysis related to the underlying issuer including, but not limited to, the following: | ||||
· | Fundamentals of the issuer to determine what we would recover if they were to file bankruptcy versus the price at which the market is trading; | |||
· | Fundamentals of the industry in which the issuer operates; | |||
· | Earnings multiples for the given industry or sector of an industry that the underlying issuer operates within, divided by the outstanding debt to determine an expected recovery value of the security in the case of a liquidation; | |||
· | Expected cash flows of the issuer (e.g., whether the issuer has cash flows in excess of what is required to fund its operations); | |||
· | Expectations regarding defaults and recovery rates; | |||
· | Changes to the rating of the security by a rating agency; and | |||
· | Additional market information (e.g., if there has been a replacement of the corporate debt security). | |||
Each quarter we review the cash flows for the MBS to determine whether or not they are sufficient to provide for the recovery of our amortized cost. We revise our cash flow projections only for those securities that are at most risk for impairment based on current credit enhancement and trends in the underlying collateral performance. To determine recovery value of a MBS, we perform additional analysis related to the underlying issuer including, but not limited to, the following: | ||||
· | Discounted cash flow analysis based on the current cash flows and future cash flows we expect to recover; | |||
· | Level of creditworthiness of the home equity loans or residential mortgages that back an RMBS or commercial mortgages that back a CMBS; | |||
· | Susceptibility to fair value fluctuations for changes in the interest rate environment; | |||
· | Susceptibility to reinvestment risks, in cases where market yields are lower than the securities’ book yield earned; | |||
· | Susceptibility to reinvestment risks, in cases where market yields are higher than the book yields earned on a security; | |||
· | Expectations of sale of such a security where market yields are higher than the book yields earned on a security; and | |||
· | Susceptibility to variability of prepayments. | |||
When evaluating MBS and mortgage-related asset-backed securities (“ABS”), we consider a number of pool-specific factors as well as market level factors when determining whether or not the impairment on the security is temporary or other-than-temporary. The most important factor is the performance of the underlying collateral in the security and the trends of that performance in the prior periods. We use this information about the collateral to forecast the timing and rate of mortgage loan defaults, including making projections for loans that are already delinquent and for those loans that are currently performing but may become delinquent in the future. Other factors used in this analysis include type of underlying collateral (e.g., prime, Alt-A or subprime), geographic distribution of underlying loans and timing of liquidations by state. Once default rates and timing assumptions are determined, we then make assumptions regarding the severity of a default if it were to occur. Factors that impact the severity assumption include expectations for future home price appreciation or depreciation, loan size, first lien versus second lien, existence of loan level private mortgage insurance, type of occupancy and geographic distribution of loans. Once default and severity assumptions are determined for the security in question, cash flows for the underlying collateral are projected including expected defaults and prepayments. These cash flows on the collateral are then translated to cash flows on our tranche based on the cash flow waterfall of the entire capital security structure. If this analysis indicates the entire principal on a particular security will not be returned, the security is reviewed for OTTI by comparing the expected cash flows to amortized cost. To the extent that the security has already been impaired or was purchased at a discount, such that the amortized cost of the security is less than or equal to the present value of cash flows expected to be collected, no impairment is required. | ||||
Otherwise, if the amortized cost of the security is greater than the present value of the cash flows expected to be collected, and the security was not purchased at a discount greater than the expected principal loss, then impairment is recognized. | ||||
We further monitor the cash flows of all of our AFS securities backed by pools on an ongoing basis. We also perform detailed analysis on all of our subprime, Alt-A, non-agency residential MBS and on a significant percentage of our AFS securities backed by pools of commercial mortgages. The detailed analysis includes revising projected cash flows by updating the cash flows for actual cash received and applying assumptions with respect to expected defaults, foreclosures and recoveries in the future. These revised projected cash flows are then compared to the amount of credit enhancement (subordination) in the structure to determine whether the amortized cost of the security is recoverable. If it is not recoverable, we record an impairment of the security. | ||||
Trading Securities, Policy | ' | |||
Trading Securities | ||||
Trading securities consist of fixed maturity and equity securities in designated portfolios, some of which support modified coinsurance (“Modco”) and coinsurance with funds withheld (“CFW”) reinsurance arrangements. Investment results for the portfolios that support Modco and CFW reinsurance arrangements, including gains and losses from sales, are passed directly to the reinsurers pursuant to contractual terms of the reinsurance arrangements. Trading securities are carried at fair value and changes in fair value and changes in the fair value of embedded derivative liabilities associated with the underlying reinsurance arrangements, are recorded in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) as they occur. | ||||
Alternative Investments, Policy | ' | |||
Alternative Investments | ||||
Alternative investments, which consist primarily of investments in limited partnerships (“LPs”), are included in other investments on our Consolidated Balance Sheets. We account for our investments in LPs using the equity method to determine the carrying value. Recognition of alternative investment income is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships’ general partners. As a result, our venture capital, real estate and oil and gas portfolios are generally on a three-month delay and our hedge funds are on a one-month delay. In addition, the impact of audit adjustments related to completion of calendar-year financial statement audits of the investees are typically received during the second quarter of each calendar year. Accordingly, our investment income from alternative investments for any calendar-year period may not include the complete impact of the change in the underlying net assets for the partnership for that calendar-year period. | ||||
Payables for Collateral on Investments, Policy | ' | |||
Payables for Collateral on Investments | ||||
When we enter into collateralized financing transactions on our investments, a liability is recorded equal to the cash collateral received. This liability is included within payables for collateral on investments on our Consolidated Balance Sheets. Income and expenses associated with these transactions are recorded as investment income and investment expenses within net investment income on our Consolidated Statements of Comprehensive Income (Loss). Changes in payables for collateral on investments are reflected within cash flows from investing activities on our Consolidated Statements of Cash Flows. | ||||
Mortgage Loans on Real Estate, Policy | ' | |||
Mortgage Loans on Real Estate | ||||
Mortgage loans on real estate are carried at unpaid principal balances adjusted for amortization of premiums and accretion of discounts and are net of valuation allowances. Interest income is accrued on the principal balance of the loan based on the loan’s contractual interest rate. Premiums and discounts are amortized using the effective yield method over the life of the loan. Interest income and amortization of premiums and discounts are reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss) along with mortgage loan fees, which are recorded as they are incurred. | ||||
Our commercial loan portfolio is comprised of long-term loans secured by existing commercial real estate. As such, it does not exhibit risk characteristics unique to mezzanine, construction, residential, agricultural, land or other types of real estate loans. We believe all of the loans in our portfolio share three primary risks: borrower creditworthiness; sustainability of the cash flow of the property; and market risk; therefore, our methods for monitoring and assessing credit risk are consistent for our entire portfolio. Loans are considered impaired when it is probable that, based upon current information and events, we will be unable to collect all amounts due under the contractual terms of the loan agreement. When we determine that a loan is impaired, a valuation allowance is established for the excess carrying value of the loan over its estimated value. The loan’s estimated value is based on: the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the loan’s collateral. Valuation allowances are maintained at a level we believe is adequate to absorb estimated probable credit losses of each specific loan. Our periodic evaluation of the adequacy of the allowance for losses is based on our past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. Trends in market vacancy and rental rates are incorporated into the analysis that we perform for monitored loans and may contribute to the establishment of (or an increase or decrease in) an allowance for credit losses. In addition, we review each loan individually in our commercial mortgage loan portfolio on an annual basis to identify emerging risks. We focus on properties that experienced a reduction in debt-service coverage or that have significant exposure to tenants with deteriorating credit profiles. Where warranted, we establish or increase loss reserves for a specific loan based upon this analysis. Our process for determining past due or delinquency status begins when a payment date is missed, at which time the borrower is contacted. After the grace period expiration that may last up to 10 days, we send a default notice. The default notice generally provides a short time period to cure the default. Our policy is to report loans that are 60 or more days past due, which equates to two or more payments missed, as delinquent. We do not accrue interest on loans 90 days past due, and any interest received on these loans is either applied to the principal or recorded in net investment income on our Consolidated Statements of Comprehensive Income (Loss) when received, depending on the assessment of the collectibility of the loan. We resume accruing interest once a loan complies with all of its original terms or restructured terms. Mortgage loans deemed uncollectible are charged against the allowance for losses, and subsequent recoveries, if any, are credited to the allowance for losses. All mortgage loans that are impaired have an established allowance for credit losses. Changes in valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
We measure and assess the credit quality of our mortgage loans by using loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value at origination of the underlying property collateralizing the loan and is commonly expressed as a percentage. Loan-to-value ratios greater than 100% indicate that the principal amount is greater than the collateral value. Therefore, all else being equal, a lower loan-to-value ratio generally indicates a higher quality loan. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios of less than 1.0 indicate that property operations do not generate enough income to cover its current debt payments. Therefore, all else being equal, a higher debt-service coverage ratio generally indicates a higher quality loan. | ||||
Policy Loans, Policy | ' | |||
Policy Loans | ||||
Policy loans represent loans we issue to contract holders that use the cash surrender value of their life insurance policy as collateral. Policy loans are carried at unpaid principal balances. | ||||
Real Estate, Policy | ' | |||
Real Estate | ||||
Real estate includes both real estate held for the production of income and real estate held-for-sale. Real estate held for the production of income is carried at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset. We periodically review properties held for the production of income for impairment. Properties whose carrying values are greater than their projected undiscounted cash flows are written down to estimated fair value, with impairment losses reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). The estimated fair value of real estate is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks. Real estate classified as held-for-sale is stated at the lower of depreciated cost or fair value less expected disposition costs at the time classified as held-for-sale. Real estate is not depreciated while it is classified as held-for-sale. Also, valuation allowances for losses are established, as appropriate, for real estate held-for-sale and any changes to the valuation allowances are reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). Real estate acquired through foreclosure proceedings is recorded at fair value at the settlement date. | ||||
Derivative Instruments, Policy | ' | |||
Derivative Instruments | ||||
We hedge certain portions of our exposure to interest rate risk, foreign currency exchange risk, equity market risk and credit risk by entering into derivative transactions. All of our derivative instruments are recognized as either assets or liabilities on our Consolidated Balance Sheets at estimated fair value. We categorized derivatives into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique as discussed above in “Fair Value Measurement.” The accounting for changes in the estimated fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship, and further, on the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, we designate the hedging instrument based upon the exposure being hedged: as a cash flow hedge or a fair value hedge. | ||||
For derivative instruments that are designated and qualify as a cash flow hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated OCI and reclassified into net income in the same period or periods during which the hedged transaction affects net income. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of designated future cash flows of the hedged item (hedge ineffectiveness), if any, is recognized in net income during the period of change. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in net income during the period of change in estimated fair values. For derivative instruments not designated as hedging instruments, but that are economic hedges, the gain or loss is recognized in net income. | ||||
We purchase and issue financial instruments and products that contain embedded derivative instruments. When it is determined that the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value recognized in net income during the period of change. | ||||
We employ several different methods for determining the fair value of our derivative instruments. The fair value of our derivative contracts are measured based on current settlement values, which are based on quoted market prices, industry standard models that are commercially available and broker quotes. These techniques project cash flows of the derivatives using current and implied future market conditions. We calculate the present value of the cash flows to measure the current fair market value of the derivative. | ||||
Cash and Invested Cash, Policy | ' | |||
Cash and Invested Cash | ||||
Cash and invested cash is carried at cost and includes all highly liquid debt instruments purchased with an original maturity of three months or less. | ||||
DAC, VOBA, DSI and DFEL | ' | |||
DAC, VOBA, DSI and DFEL | ||||
Acquisition costs directly related to successful contract acquisitions or renewals of UL insurance, VUL insurance, traditional life insurance, annuities and other investment contracts have been deferred (i.e., DAC) to the extent recoverable. VOBA is an intangible asset that reflects the estimated fair value of in-force contracts in a life insurance company acquisition and represents the portion of the purchase price that is allocated to the value of the right to receive future cash flows from the business in force at the acquisition date. Bonus credits and excess interest for dollar cost averaging contracts are considered DSI. Contract sales charges that are collected in the early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets. | ||||
Both DAC and VOBA amortization, excluding amounts reported in realized gain (loss), is reported within commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). DSI amortization, excluding amounts reported in realized gain (loss), is reported in interest credited on our Consolidated Statements of Comprehensive Income (Loss). The amortization of DFEL, excluding amounts reported in realized gain (loss), is reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). The methodology for determining the amortization of DAC, VOBA, DSI and DFEL varies by product type. For all insurance contracts, amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. | ||||
Acquisition costs for UL and VUL insurance and investment-type products, which include fixed and variable deferred annuities, are generally amortized over the lives of the policies in relation to the incidence of estimated gross profits (“EGPs”) from surrender charges, investment, mortality net of reinsurance ceded and expense margins and actual realized gain (loss) on investments. Contract lives for UL and VUL policies are estimated to be 40 years based on the expected lives of the contracts. Contract lives for fixed and variable deferred annuities are generally between 13 and 30 years, while some of our fixed multi-year guarantee products have amortization periods equal to the guarantee period. The front-end load annuity product has an assumed life of 25 years. Longer lives are assigned to those blocks that have demonstrated favorable lapse experience. | ||||
Acquisition costs for all traditional contracts, including traditional life insurance contracts, such as individual whole life, group business and term life insurance, are amortized over the expected premium-paying period that ranges from 7 to 77 years. Acquisition costs are either amortized on a straight-line basis or as a level percent of premium of the related policies depending on the block of business. There is currently no DAC, VOBA, DSI or DFEL balance or related amortization for fixed and variable payout annuities. | ||||
We account for modifications of insurance contracts that result in a substantially unchanged contract as a continuation of the replaced contract. We account for modifications of insurance contracts that result in a substantially changed contract as an extinguishment of the replaced contract. | ||||
The carrying amounts of DAC, VOBA, DSI and DFEL are adjusted for the effects of realized and unrealized gains and losses on securities classified as AFS and certain derivatives and embedded derivatives. Amortization expense of DAC, VOBA, DSI and DFEL reflects an assumption for an expected level of credit-related investment losses. When actual credit-related investment losses are realized, we recognize a true-up to our DAC, VOBA, DSI and DFEL amortization within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) reflecting the incremental effect of actual versus expected credit-related investment losses. These actual to expected amortization adjustments can create volatility from period to period in realized gain (loss). | ||||
During the third quarter of each year, we conduct our annual comprehensive review of the assumptions and the projection models used for our estimates of future gross profits underlying the amortization of DAC, VOBA, DSI and DFEL and the calculations of the embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. These assumptions include investment margins, mortality, retention, rider utilization and maintenance expenses (costs associated with maintaining records relating to insurance and individual and group annuity contracts, and with the processing of premium collections, deposits, withdrawals and commissions). Based on our review, the cumulative balances of DAC, VOBA, DSI and DFEL included on our Consolidated Balance Sheets are adjusted with an offsetting benefit or charge to revenue or amortization expense to reflect such change related to our expectations of future EGPs (“unlocking”). We may have unlocking in other quarters as we become aware of information that warrants updating assumptions outside of our annual comprehensive review. We may also identify and implement actuarial modeling refinements that result in increases or decreases to the carrying values of DAC, VOBA, DSI, DFEL, embedded derivatives and reserves for life insurance and annuity products with living benefit and death benefit guarantees. | ||||
DAC, VOBA, DSI and DFEL are reviewed to ensure that the unamortized portion does not exceed the expected recoverable amounts. | ||||
Reinsurance, Policy | ' | |||
Reinsurance | ||||
Our insurance companies enter into reinsurance agreements with other companies in the normal course of business. Assets and liabilities and premiums and benefits from certain reinsurance contracts that grant statutory surplus relief to other insurance companies are netted on our Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss), respectively, because there is a right of offset. All other reinsurance agreements are reported on a gross basis on our Consolidated Balance Sheets as an asset for amounts recoverable from reinsurers or as a component of other liabilities for amounts, such as premiums, owed to the reinsurers, with the exception of Modco agreements for which the right of offset also exists. Reinsurance premiums and benefits paid or provided are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums, benefits and DAC are reported net of insurance ceded. | ||||
Goodwill, Policy | ' | |||
Goodwill | ||||
We recognize the excess of the purchase price, plus the fair value of any noncontrolling interest in the acquiree, over the fair value of identifiable net assets acquired as goodwill. Goodwill is not amortized, but is reviewed at least annually for indications of value impairment, with consideration given to financial performance and other relevant factors. We perform a two-step test in our evaluation of the carrying value of goodwill for each of our reporting units, if qualitative factors determine it is necessary to complete the two-step goodwill impairment test. The results of one test on one reporting unit cannot subsidize the results of another reporting unit. In Step 1 of the evaluation, the fair value of each reporting unit is determined and compared to the carrying value of the reporting unit. If the fair value is greater than the carrying value, then the carrying value of the reporting unit is deemed to be recoverable, and Step 2 is not required. If the fair value estimate is less than the carrying value, it is an indicator that impairment may exist, and Step 2 is required. In Step 2, the implied fair value of goodwill is determined for the reporting unit. The reporting unit’s fair value as determined in Step 1 is assigned to all of its net assets (recognized and unrecognized) as if the reporting unit were acquired in a business combination as of the date of the impairment test. If the implied fair value of the reporting unit’s goodwill is lower than its carrying amount, goodwill is impaired and written down to its fair value; and a charge is reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Other Assets and Other Liabilities, Policy | ' | |||
Other Assets and Other Liabilities | ||||
Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issue costs and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds and other accrued expenses. | ||||
The carrying values of specifically identifiable intangible assets are reviewed at least annually for indicators of impairment in value that are other-than-temporary, including unexpected or adverse changes in the following: the economic or competitive environments in which the company operates; profitability analyses; cash flow analyses; and the fair value of the relevant business operation. If there was an indication of impairment, then the discounted cash flow method would be used to measure the impairment, and the carrying value would be adjusted as necessary and reported in impairment of intangibles on our Consolidated Statements of Comprehensive Income (Loss). Sales force intangibles are attributable to the value of the new business distribution system acquired through business combinations. These assets are amortized on a straight-line basis over their useful life of 25 years. Federal Communications Commission (“FCC”) licenses acquired through business combinations are not amortized. | ||||
Property and equipment owned for company use is carried at cost less allowances for depreciation. Provisions for depreciation of investment real estate and property and equipment owned for company use are computed principally on the straight-line method over the estimated useful lives of the assets, which include buildings, computer hardware and software and other property and equipment. We periodically review the carrying value of our long-lived assets, including property and equipment, for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. For long-lived assets to be held and used, impairments are recognized when the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | ||||
Long-lived assets to be disposed of by abandonment or in an exchange for a similar productive long-lived asset are classified as held-for-use until they are disposed. Long-lived assets to be sold are classified as held-for-sale and are no longer depreciated. Certain criteria have to be met in order for the long-lived asset to be classified as held-for-sale, including that a sale is probable and expected to occur within one year. Long-lived assets classified as held-for-sale are recorded at the lower of their carrying amount or fair value less cost to sell. | ||||
Separate Account Assets and Liabilities, Policy | ' | |||
Separate Account Assets and Liabilities | ||||
We maintain separate account assets, which are reported at fair value. The related liabilities are reported at an amount equivalent to the separate account assets. Investment risks associated with market value changes are borne by the contract holders, except to the extent of minimum guarantees made by the Company with respect to certain accounts. | ||||
We issue variable annuity contracts through our separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities). We also issue variable annuity and life contracts through separate accounts that include various types of guaranteed death benefit (“GDB”), guaranteed withdrawal benefit (“GWB”) and guaranteed income benefit (“GIB”) features. The GDB features include those where we contractually guarantee to the contract holder either: return of no less than total deposits made to the contract less any partial withdrawals (“return of net deposits”); total deposits made to the contract less any partial withdrawals plus a minimum return (“minimum return”); or the highest contract value on any contract anniversary date through age 80 minus any payments or withdrawals following the contract anniversary (“anniversary contract value”). | ||||
As discussed in Note 6, certain features of these guarantees are accounted for as embedded derivative reserves, whereas other guarantees are accounted for as benefit reserves. Other guarantees contain characteristics of both and are accounted for under an approach that calculates the value of the embedded derivative reserve and the benefit reserve based on the specific characteristics of each guaranteed living benefit (“GLB”) feature. We use derivative instruments to hedge our exposure to the risks and earnings volatility that result from the embedded derivatives for living benefits in certain of our variable annuity products. The change in fair value of these instruments tends to move in the opposite direction of the change in the value of the associated reserves. The net impact of these changes is reported as a component of realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
The “market consistent scenarios” used in the determination of the fair value of the GLB liability are similar to those used by an investment bank to value derivatives for which the pricing is not transparent and the aftermarket is nonexistent or illiquid. We use risk-neutral Monte Carlo simulations in our calculation to value the entire block of guarantees, which involve 100 unique scenarios per policy or approximately 43 million scenarios. The market consistent scenario assumptions, as of each valuation date, are those we view to be appropriate for a hypothetical market participant. The market consistent inputs include assumptions for the capital markets (e.g., implied volatilities, correlation among indices, risk-free swap curve, etc.), policyholder behavior (e.g., policy lapse, benefit utilization, mortality, etc.), risk margins, administrative expenses and a margin for profit. We believe these assumptions are consistent with those that would be used by a market participant; however, as the related markets develop we will continue to reassess our assumptions. It is possible that different valuation techniques and assumptions could produce a materially different estimate of fair value. | ||||
Future Contract Benefits and Other Contract Holder Funds, Policy | ' | |||
Future Contract Benefits and Other Contract Holder Funds | ||||
Future contract benefits represent liability reserves that we have established and carry based on estimates of how much we will need to pay for future benefits and claims. Other contract holder funds represent liabilities for fixed account values, including the fixed portion of variable, dividends payable, premium deposit funds, undistributed earnings on participating business and other contract holder funds as well the carrying value of DFEL discussed above. | ||||
The liabilities for future contract benefits and claim reserves for UL and VUL insurance policies consist of contract account balances that accrue to the benefit of the contract holders, excluding surrender charges. The liabilities for future insurance contract benefits and claim reserves for traditional life policies are computed using assumptions for investment yields, mortality and withdrawals based principally on generally accepted actuarial methods and assumptions at the time of contract issue. Investment yield assumptions for traditional direct individual life reserves for all contracts range from 2.25% to 7.75% depending on the time of contract issue. The investment yield assumptions for immediate and deferred paid-up annuities range from 1.50% to 13.50%. These investment yield assumptions are intended to represent an estimation of the interest rate experience for the period that these contract benefits are payable. | ||||
The liabilities for future claim reserves for variable annuity products containing GDB features are calculated by estimating the present value of total expected benefit payments over the life of the contract from inception divided by the present value of total expected assessments over the life of the contract (“benefit ratio”) multiplied by the cumulative assessments recorded from the contract inception through the balance sheet date less the cumulative GDB payments plus interest on the liability. The change in the liability for a period is the benefit ratio multiplied by the assessments recorded for the period less GDB claims paid in the period plus interest. As experience or assumption changes result in a change in expected benefit payments or assessments, the benefit ratio is unlocked, that is, recalculated using the updated expected benefit payments and assessments over the life of the contract since inception. The revised benefit ratio is then applied to the liability calculation described above, with the resulting change in liability reported as benefit ratio unlocking. | ||||
With respect to our future contract benefits and other contract holder funds, we continually review overall reserve position, reserving techniques and reinsurance arrangements. As experience develops and new information becomes known, liabilities are adjusted as deemed necessary. The effects of changes in estimates are included in the operating results for the period in which such changes occur. | ||||
The business written or assumed by us includes participating life insurance contracts, under which the contract holder is entitled to share in the earnings of such contracts via receipt of dividends. The dividend scale for participating policies is reviewed annually and may be adjusted to reflect recent experience and future expectations. As of December 31, 2013 and 2012, participating policies comprised approximately 1% of the face amount of insurance in force, and dividend expenses were $62 million, $71 million and $79 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Liabilities for the secondary guarantees on UL-type products are calculated by multiplying the benefit ratio by the cumulative assessments recorded from contract inception through the balance sheet date less the cumulative secondary guarantee benefit payments plus interest. If experience or assumption changes result in a new benefit ratio, the reserves are adjusted to reflect the changes in a manner similar to the unlocking of DAC, VOBA, DFEL and DSI. The accounting for secondary guarantee benefits impacts, and is impacted by, EGPs used to calculate amortization of DAC, VOBA, DFEL and DSI. | ||||
Future contract benefits on our Consolidated Balance Sheets include GLB features and remaining guaranteed interest and similar contracts that are carried at fair value, which represents approximate exit value including an estimate for our non-performance risk (“NPR”). Certain of these features have elements of both insurance benefits and embedded derivatives. Through our hybrid accounting approach, we assign benefits to the embedded derivative or insurance based on the life-contingent nature of the benefits. We classify these items in Level 3 within the hierarchy levels described above in “Fair Value Measurement.” | ||||
The fair value of our indexed annuity contracts is based on their approximate surrender values. | ||||
Borrowed Funds, Policy | ' | |||
Borrowed Funds | ||||
LNC’s short-term borrowings are defined as borrowings with contractual or expected maturities of one year or less. Long-term borrowings have contractual or expected maturities greater than one year. | ||||
Deferred Gain on Business Sold Through Reinsurance, Policy | ' | |||
Deferred Gain on Business Sold Through Reinsurance | ||||
Our reinsurance operations were acquired by Swiss Re Life & Health America, Inc. (“Swiss Re”) in December 2001 through a series of indemnity reinsurance transactions. We are recognizing the gain related to these transactions at the rate that earnings on the reinsured business are expected to emerge, over a period of 15 years from the date of sale. | ||||
Commitments and Contingencies, Policy | ' | |||
Commitments and Contingencies | ||||
Contingencies arising from environmental remediation costs, regulatory judgments, claims, assessments, guarantees, litigation, recourse reserves, fines, penalties and other sources are recorded when deemed probable and reasonably estimable. | ||||
Fee Income, Policy | ' | |||
Fee Income | ||||
Fee income for investment and interest-sensitive life insurance contracts consist of asset-based fees, cost of insurance charges, percent of premium charges, contract administration charges and surrender charges that are assessed against contract holder account balances. Investment products consist primarily of individual and group variable and fixed deferred annuities. Interest-sensitive life insurance products include UL insurance, VUL insurance and other interest-sensitive life insurance policies. These products include life insurance sold to individuals, corporate-owned life insurance and bank-owned life insurance. | ||||
In bifurcating the embedded derivative of our GLB features on our variable annuity products, we attribute to the embedded derivative the portion of total fees collected from the contract holder that relate to the GLB riders (the “attributed fees”), which are not reported within fee income on our Consolidated Statements of Comprehensive Income (Loss). These attributed fees represent the present value of future claims expected to be paid for the GLB at the inception of the contract plus a margin that a theoretical market participant would include for risk/profit and are reported within realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | ||||
The timing of revenue recognition as it relates to fees assessed on investment contracts is determined based on the nature of such fees. Asset-based fees, cost of insurance and contract administration charges are assessed on a daily or monthly basis and recognized as revenue when assessed and earned. Percent of premium charges are assessed at the time of premium payment and recognized as revenue when assessed and earned. Certain amounts assessed that represent compensation for services to be provided in future periods are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are recognized upon surrender of a contract by the contract holder in accordance with contractual terms. | ||||
For investment and interest-sensitive life insurance contracts, the amounts collected from contract holders are considered deposits and are not included in revenue. | ||||
Insurance Premiums, Policy | ' | |||
Insurance Premiums | ||||
Our insurance premiums for traditional life insurance and group insurance products are recognized as revenue when due from the contract holder. Our traditional life insurance products include those products with fixed and guaranteed premiums and benefits and consist primarily of whole life insurance, limited-payment life insurance, term life insurance and certain annuities with life contingencies. Our group non-medical insurance products consist primarily of term life, disability and dental. | ||||
Net Investment Income, Policy | ' | |||
Net Investment Income | ||||
Dividends and interest income, recorded in net investment income, are recognized when earned. Amortization of premiums and accretion of discounts on investments in debt securities are reflected in net investment income over the contractual terms of the investments in a manner that produces a constant effective yield. | ||||
For CLOs and MBS, included in the trading and AFS fixed maturity securities portfolios, we recognize income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from originally anticipated prepayments, the retrospective effective yield is recalculated to reflect actual payments to date and a catch up adjustment is recorded in the current period. In addition, the new effective yield, which reflects anticipated future payments, is used prospectively. Any adjustments resulting from changes in effective yield are reflected in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Realized Gain (Loss), Policy | ' | |||
Realized Gain (Loss) | ||||
Realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss) includes realized gains and losses from the sale of investments, write-downs for other-than-temporary impairments of investments, certain derivative and embedded derivative gains and losses, gains and losses on the sale of subsidiaries and businesses and net gains and losses on reinsurance embedded derivatives and trading securities. Realized gains and losses on the sale of investments are determined using the specific identification method. Realized gain (loss) is recognized in net income, net of associated amortization of DAC, VOBA, DSI and DFEL. Realized gain (loss) is also net of allocations of investment gains and losses to certain contract holders and certain funds withheld on reinsurance arrangements for which we have a contractual obligation. | ||||
Other Revenues, Policy | ' | |||
Other Revenues | ||||
Other revenues consists primarily of fees attributable to broker-dealer services recorded as earned at the time of sale, changes in the market value of our seed capital investments and communications sales recognized as earned, net of agency and representative commissions. | ||||
Interest Credited, Policy | ' | |||
Interest Credited | ||||
Interest credited includes interest credited to contract holder account balances. Interest crediting rates associated with funds invested in the general account of LNC’s insurance subsidiaries during 2011 through 2013 ranged from 1% to 10%. | ||||
Benefits, Policy | ' | |||
Benefits | ||||
Benefits for UL and other interest-sensitive life insurance products include benefit claims incurred during the period in excess of contract account balances. Benefits also include the change in reserves for life insurance products with secondary guarantee benefits, annuity products with guaranteed death and living benefits, and certain annuities with life contingencies. For traditional life, group health and disability income products, benefits are recognized when incurred in a manner consistent with the related premium recognition policies. | ||||
Pensions and Other Post Retirement Benefit Plans, Policy | ' | |||
Pension and Other Postretirement Benefit Plans | ||||
Pursuant to the accounting rules for our obligations to employees and agents under our various pension and other postretirement benefit plans, we are required to make a number of assumptions to estimate related liabilities and expenses. We use assumptions for the weighted-average discount rate and expected return on plan assets to estimate pension expense. The discount rate assumptions are determined using an analysis of current market information and the projected benefit flows associated with these plans. The expected long-term rate of return on plan assets is based on historical and projected future rates of return on the funds invested in the plan. The calculation of our accumulated postretirement benefit obligation also uses an assumption of weighted-average annual rate of increase in the per capita cost of covered benefits, which reflects a health care cost trend rate. | ||||
Stock-Based Compensation, Policy | ' | |||
Stock-Based Compensation | ||||
In general, we expense the fair value of stock awards included in our incentive compensation plans. As of the date our stock awards are approved, the fair value of stock options is determined using a Black-Scholes options valuation methodology, and the fair value of other stock awards is based upon the market value of the stock. The fair value of the awards is expensed over the performance or service period, which generally corresponds to the vesting period, and is recognized as an increase to common stock in stockholders’ equity. We classify certain stock awards as liabilities. For these awards, the settlement value is classified as a liability on our Consolidated Balance Sheets, and the liability is marked-to-market through net income at the end of each reporting period. Stock-based compensation expense is reflected in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | ||||
Interest and Debt Expenses, Policy | ' | |||
Interest and Debt Expense | ||||
Interest expense on our short-term and long-term debt is recognized as due and any associated premiums, discounts, and costs are amortized (accreted) over the term of the related borrowing utilizing the effective interest method. In addition, gains or losses related to certain derivative instruments associated with debt are recognized in interest and debt expense during the period of the change. | ||||
Income Taxes, Policy | ' | |||
Income Taxes | ||||
We file a U.S. consolidated income tax return that includes all of our eligible subsidiaries. Ineligible subsidiaries file separate individual corporate tax returns. Subsidiaries operating outside of the U.S. are taxed, and income tax expense is recorded based on applicable foreign statutes. Deferred income taxes are recognized, based on enacted rates, when assets and liabilities have different values for financial statement and tax reporting purposes. A valuation allowance is recorded to the extent required. Considerable judgment and the use of estimates are required in determining whether a valuation allowance is necessary and, if so, the amount of such valuation allowance. In evaluating the need for a valuation allowance, we consider many factors, including: the nature and character of the deferred tax assets and liabilities; taxable income in prior carryback years; future reversals of temporary differences; the length of time carryovers can be utilized; and any tax planning strategies we would employ to avoid a tax benefit from expiring unused. | ||||
Discontinued Operations, Policy | ' | |||
Discontinued Operations | ||||
The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in income (loss) from discontinued operations, net of federal income taxes, for all periods presented if the operations and cash flows of the component have been or will be eliminated from our ongoing operations as a result of the disposal transaction and we will not have any significant continuing involvement in the operations. | ||||
Foreign Currency Translation, Policy | ' | |||
Foreign Currency Translation | ||||
The balance sheet accounts and income statement items of foreign subsidiaries, reported in functional currencies other than the U.S. dollar are translated at the current and average exchange rates for the year, respectively. Resulting translation adjustments and other translation adjustments for foreign currency transactions that affect cash flows are reported in accumulated OCI, a component of stockholders’ equity. | ||||
Earnings Per Share, Policy | ' | |||
Earnings Per Share | ||||
Basic earnings per share (“EPS”) is computed by dividing earnings available to common shareholders by the average common shares outstanding. Diluted EPS is computed assuming the conversion or exercise of dilutive convertible preferred securities, nonvested stock, stock options, performance share units and warrants outstanding during the year. | ||||
Our deferred compensation plans allow participants the option to diversify from LNC stock to other investment alternatives. When calculating our weighted-average dilutive shares, we presume the investment option will be settled in cash and exclude these shares from our calculation, unless the effect of settlement in shares would be more dilutive to our diluted EPS calculation. | ||||
For any period where a loss from continuing operations is experienced, shares used in the diluted EPS calculation represent basic shares because using diluted shares would be anti-dilutive to the calculation. | ||||
Dispositions_Tables
Dispositions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Dispositions [Abstract] | ' | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Disposal | |||||||||
Gain (loss) on disposal, before federal income taxes | $ | - | $ | -1 | $ | -3 | |||
Federal income tax expense (benefit) | - | -28 | 5 | ||||||
Gain (loss) on disposal | - | 27 | -8 | ||||||
Income (loss) from discontinued operations | $ | - | $ | 27 | $ | -8 | |||
Variable_Interest_Entities_VIE1
Variable Interest Entities ("VIE's") (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Variable Interest Entities [Abstract] | ' | |||||||||||||||||||||
CLN Structures Summary Information | ' | |||||||||||||||||||||
Amount and Date of Issuance | ||||||||||||||||||||||
$400 | $200 | |||||||||||||||||||||
December | April | |||||||||||||||||||||
2006 | 2007 | |||||||||||||||||||||
Original attachment point (subordination) | 5.50% | 2.05% | ||||||||||||||||||||
Current attachment point (subordination) | 4.17% | 1.48% | ||||||||||||||||||||
Maturity | 12/20/16 | 3/20/17 | ||||||||||||||||||||
Current rating of tranche | BB+ | Ba2 | ||||||||||||||||||||
Current rating of underlying collateral pool | Aa1-B1 | Aaa-Caa2 | ||||||||||||||||||||
Number of defaults in underlying collateral pool | 2 | 2 | ||||||||||||||||||||
Number of entities | 124 | 99 | ||||||||||||||||||||
Number of countries | 20 | 21 | ||||||||||||||||||||
CLN Structures' Underlying Collateral By Industry And Rating | ' | |||||||||||||||||||||
AAA | AA | A | BBB | BB | B | CCC | Total | |||||||||||||||
Industry | ||||||||||||||||||||||
Financial intermediaries | 0.0% | 2.1% | 6.7% | 1.7% | 0.0% | 0.0% | 0.0% | 10.5% | ||||||||||||||
Telecommunications | 0.0% | 0.0% | 4.0% | 5.5% | 1.5% | 0.0% | 0.0% | 11.0% | ||||||||||||||
Oil and gas | 0.3% | 2.1% | 1.0% | 4.6% | 0.0% | 0.0% | 0.0% | 8.0% | ||||||||||||||
Utilities | 0.0% | 0.0% | 2.6% | 1.9% | 0.0% | 0.0% | 0.0% | 4.5% | ||||||||||||||
Chemicals and plastics | 0.0% | 0.0% | 2.3% | 1.2% | 0.3% | 0.0% | 0.0% | 3.8% | ||||||||||||||
Drugs | 0.3% | 2.2% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 3.7% | ||||||||||||||
Retailers (except food | ||||||||||||||||||||||
and drug) | 0.0% | 0.0% | 2.1% | 0.9% | 0.5% | 0.0% | 0.0% | 3.5% | ||||||||||||||
Industrial equipment | 0.0% | 0.0% | 2.6% | 0.7% | 0.0% | 0.0% | 0.0% | 3.3% | ||||||||||||||
Sovereign | 0.0% | 0.7% | 1.2% | 1.3% | 0.0% | 0.0% | 0.0% | 3.2% | ||||||||||||||
Conglomerates | 0.0% | 2.3% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% | 3.2% | ||||||||||||||
Forest products | 0.0% | 0.0% | 0.0% | 1.6% | 1.4% | 0.0% | 0.0% | 3.0% | ||||||||||||||
Other | 0.0% | 4.1% | 15.5% | 17.1% | 4.6% | 0.7% | 0.3% | 42.3% | ||||||||||||||
Total | 0.6% | 13.5% | 40.1% | 36.5% | 8.3% | 0.7% | 0.3% | 100.0% | ||||||||||||||
Consolidated Variable Interest Entity Asset and Liability information | ' | |||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||
Number | Number | |||||||||||||||||||||
of | Notional | Carrying | of | Notional | Carrying | |||||||||||||||||
Instruments | Amounts | Value | Instruments | Amounts | Value | |||||||||||||||||
Assets | ||||||||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||||||
Asset-backed credit card loans | N/A | $ | - | $ | 595 | N/A | $ | - | $ | 598 | ||||||||||||
U.S. government bonds | N/A | - | 102 | N/A | - | 110 | ||||||||||||||||
Excess mortality swap | - | - | - | 1 | 100 | - | ||||||||||||||||
Total return swap | 1 | 361 | - | - | - | - | ||||||||||||||||
Total assets (1) | 1 | $ | 361 | $ | 697 | 1 | $ | 100 | $ | 708 | ||||||||||||
Liabilities | ||||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||
Credit default swaps | 2 | $ | 600 | $ | 27 | 2 | $ | 600 | $ | 128 | ||||||||||||
Contingent forwards | 2 | - | - | 2 | - | - | ||||||||||||||||
Total liabilities (2) | 4 | $ | 600 | $ | 27 | 4 | $ | 600 | $ | 128 | ||||||||||||
-1 | Reported in variable interest entities’ fixed maturity securities on our Consolidated Balance Sheets. | |||||||||||||||||||||
-2 | Reported in variable interest entities’ liabilities on our Consolidated Balance Sheets. | |||||||||||||||||||||
Consolidated Variable Interest Entity Settlement Payments and Mark-to-Market Adjustments | ' | |||||||||||||||||||||
For the Years Ended | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||||||
Credit default swaps | $ | 101 | $ | 166 | ||||||||||||||||||
Contingent forwards | - | -3 | ||||||||||||||||||||
Total non-qualifying hedges (1) | $ | 101 | $ | 163 | ||||||||||||||||||
-1 | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Investments [Abstract] | ' | ||||||||||||||||||
Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value | ' | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | OTTI | Value | |||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 65,808 | $ | 4,374 | $ | 1,157 | $ | 90 | $ | 68,935 | |||||||||
U.S. government bonds | 355 | 26 | 14 | - | 367 | ||||||||||||||
Foreign government bonds | 505 | 45 | 1 | - | 549 | ||||||||||||||
RMBS | 4,135 | 256 | 10 | 31 | 4,350 | ||||||||||||||
CMBS | 713 | 36 | 4 | 17 | 728 | ||||||||||||||
CLOs | 232 | - | 1 | 6 | 225 | ||||||||||||||
State and municipal bonds | 3,638 | 308 | 27 | - | 3,919 | ||||||||||||||
Hybrid and redeemable preferred securities | 967 | 89 | 51 | - | 1,005 | ||||||||||||||
VIEs' fixed maturity securities | 682 | 15 | - | - | 697 | ||||||||||||||
Total fixed maturity securities | 77,035 | 5,149 | 1,265 | 144 | 80,775 | ||||||||||||||
Equity securities | 182 | 19 | - | - | 201 | ||||||||||||||
Total AFS securities | $ | 77,217 | $ | 5,168 | $ | 1,265 | $ | 144 | $ | 80,976 | |||||||||
As of December 31, 2012 | |||||||||||||||||||
Amortized | Gross Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | OTTI | Value | |||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 60,124 | $ | 8,219 | $ | 219 | $ | 108 | $ | 68,016 | |||||||||
U.S. government bonds | 383 | 59 | - | - | 442 | ||||||||||||||
Foreign government bonds | 562 | 92 | - | - | 654 | ||||||||||||||
RMBS | 5,763 | 471 | 3 | 60 | 6,171 | ||||||||||||||
CMBS | 970 | 68 | 16 | 19 | 1,003 | ||||||||||||||
CLOs | 189 | 2 | 3 | 8 | 180 | ||||||||||||||
State and municipal bonds | 3,546 | 814 | 7 | - | 4,353 | ||||||||||||||
Hybrid and redeemable preferred securities | 1,181 | 106 | 70 | - | 1,217 | ||||||||||||||
VIEs' fixed maturity securities | 677 | 31 | - | - | 708 | ||||||||||||||
Total fixed maturity securities | 73,395 | 9,862 | 318 | 195 | 82,744 | ||||||||||||||
Equity securities | 137 | 22 | 2 | - | 157 | ||||||||||||||
Total AFS securities | $ | 73,532 | $ | 9,884 | $ | 320 | $ | 195 | $ | 82,901 | |||||||||
Available-For-Sale Securities By Contractual Maturities | ' | ||||||||||||||||||
Amortized | Fair | ||||||||||||||||||
Cost | Value | ||||||||||||||||||
Due in one year or less | $ | 2,599 | $ | 2,670 | |||||||||||||||
Due after one year through five years | 14,301 | 15,461 | |||||||||||||||||
Due after five years through ten years | 24,680 | 25,621 | |||||||||||||||||
Due after ten years | 30,375 | 31,720 | |||||||||||||||||
Subtotal | 71,955 | 75,472 | |||||||||||||||||
MBS | 4,848 | 5,078 | |||||||||||||||||
CLOs | 232 | 225 | |||||||||||||||||
Total fixed maturity AFS securities | $ | 77,035 | $ | 80,775 | |||||||||||||||
Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position | ' | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
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 | $ | 16,918 | $ | 1,018 | $ | 1,258 | $ | 229 | $ | 18,176 | $ | 1,247 | |||||||
U.S. government bonds | 163 | 14 | - | - | 163 | 14 | |||||||||||||
Foreign government bonds | 69 | 1 | - | - | 69 | 1 | |||||||||||||
RMBS | 488 | 17 | 267 | 24 | 755 | 41 | |||||||||||||
CMBS | 109 | 7 | 43 | 14 | 152 | 21 | |||||||||||||
CLOs | 136 | 2 | 50 | 5 | 186 | 7 | |||||||||||||
State and municipal bonds | 377 | 20 | 24 | 7 | 401 | 27 | |||||||||||||
Hybrid and redeemable | |||||||||||||||||||
preferred securities | 62 | 6 | 197 | 45 | 259 | 51 | |||||||||||||
Total fixed maturity securities | 18,322 | 1,085 | 1,839 | 324 | 20,161 | 1,409 | |||||||||||||
Equity securities | - | - | - | - | - | - | |||||||||||||
Total AFS securities | $ | 18,322 | $ | 1,085 | $ | 1,839 | $ | 324 | $ | 20,161 | $ | 1,409 | |||||||
Total number of AFS securities in an unrealized loss position | 1,484 | ||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||
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 | $ | 2,853 | $ | 145 | $ | 934 | $ | 182 | $ | 3,787 | $ | 327 | |||||||
RMBS | 272 | 39 | 199 | 24 | 471 | 63 | |||||||||||||
CMBS | 66 | 16 | 113 | 19 | 179 | 35 | |||||||||||||
CLOs | 10 | 8 | 53 | 3 | 63 | 11 | |||||||||||||
State and municipal bonds | 64 | 1 | 24 | 6 | 88 | 7 | |||||||||||||
Hybrid and redeemable | |||||||||||||||||||
preferred securities | 71 | 3 | 293 | 67 | 364 | 70 | |||||||||||||
Total fixed maturity securities | 3,336 | 212 | 1,616 | 301 | 4,952 | 513 | |||||||||||||
Equity securities | 7 | 2 | - | - | 7 | 2 | |||||||||||||
Total AFS securities | $ | 3,343 | $ | 214 | $ | 1,616 | $ | 301 | $ | 4,959 | $ | 515 | |||||||
Total number of AFS securities in an unrealized loss position | 626 | ||||||||||||||||||
Select Information For Securities In A Gross Unrealized Loss Position | ' | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Amortized | Fair | Unrealized | |||||||||||||||||
Cost | Value | Loss | |||||||||||||||||
Total | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,261 | $ | 1,146 | $ | 115 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 193 | 169 | 24 | ||||||||||||||||
Total | $ | 1,454 | $ | 1,315 | $ | 139 | |||||||||||||
Subject to Detailed Analysis | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 933 | $ | 833 | $ | 100 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 29 | 24 | 5 | ||||||||||||||||
Total | $ | 962 | $ | 857 | $ | 105 | |||||||||||||
As of December 31, 2012 | |||||||||||||||||||
Amortized | Fair | Unrealized | |||||||||||||||||
Cost | Value | Loss | |||||||||||||||||
Total | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,181 | $ | 980 | $ | 201 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 236 | 192 | 44 | ||||||||||||||||
Total | $ | 1,417 | $ | 1,172 | $ | 245 | |||||||||||||
Subject to Detailed Analysis | |||||||||||||||||||
AFS securities backed by pools of residential mortgages | $ | 1,173 | $ | 972 | $ | 201 | |||||||||||||
AFS securities backed by pools of commercial mortgages | 56 | 40 | 16 | ||||||||||||||||
Total | $ | 1,229 | $ | 1,012 | $ | 217 | |||||||||||||
Schedule Of Available-For-Sale Securites Whose Value Is Below Amortized Cost | ' | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Number | |||||||||||||||||||
Fair | Gross Unrealized | of | |||||||||||||||||
Value | Losses | OTTI | Securities (1) | ||||||||||||||||
Less than six months | $ | 1 | $ | 1 | $ | - | 4 | ||||||||||||
Six months or greater, but less than nine months | 7 | 3 | - | 1 | |||||||||||||||
Nine months or greater, but less than twelve months | 59 | 19 | - | 4 | |||||||||||||||
Twelve months or greater | 349 | 92 | 81 | 92 | |||||||||||||||
Total | $ | 416 | $ | 115 | $ | 81 | 101 | ||||||||||||
As of December 31, 2012 | |||||||||||||||||||
Number | |||||||||||||||||||
Fair | Gross Unrealized | of | |||||||||||||||||
Value | Losses | OTTI | Securities (1) | ||||||||||||||||
Less than six months | $ | 34 | $ | 9 | $ | 1 | 14 | ||||||||||||
Nine months or greater, but less than twelve months | 15 | 10 | - | 3 | |||||||||||||||
Twelve months or greater | 395 | 179 | 128 | 131 | |||||||||||||||
Total | $ | 444 | $ | 198 | $ | 129 | 148 | ||||||||||||
-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 Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Balance as of beginning-of-year | $ | 424 | $ | 390 | $ | 319 | |||||||||||||
Increases attributable to: | |||||||||||||||||||
Credit losses on securities for which an OTTI was not previously recognized | 39 | 108 | 55 | ||||||||||||||||
Credit losses on securities for which an OTTI was previously recognized | 43 | 62 | 71 | ||||||||||||||||
Decreases attributable to: | |||||||||||||||||||
Securities sold | -102 | -136 | -55 | ||||||||||||||||
Balance as of end-of-year | $ | 404 | $ | 424 | $ | 390 | |||||||||||||
Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss) | ' | ||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||
Gross Unrealized | OTTI in | ||||||||||||||||||
Amortized | Losses and | Fair | Credit | ||||||||||||||||
Cost | Gains | OTTI | Value | Losses | |||||||||||||||
Corporate bonds | $ | 265 | $ | 18 | $ | 49 | $ | 234 | $ | 133 | |||||||||
RMBS | 550 | 18 | 18 | 550 | 184 | ||||||||||||||
CMBS | 35 | 4 | 12 | 27 | 87 | ||||||||||||||
Total | $ | 850 | $ | 40 | $ | 79 | $ | 811 | $ | 404 | |||||||||
As of December 31, 2012 | |||||||||||||||||||
Gross Unrealized | OTTI in | ||||||||||||||||||
Amortized | Losses and | Fair | Credit | ||||||||||||||||
Cost | Gains | OTTI | Value | Losses | |||||||||||||||
Corporate bonds | $ | 299 | $ | 4 | $ | 98 | $ | 205 | $ | 104 | |||||||||
RMBS | 636 | 22 | 40 | 618 | 227 | ||||||||||||||
CMBS | 41 | 1 | 16 | 26 | 93 | ||||||||||||||
Total | $ | 976 | $ | 27 | $ | 154 | $ | 849 | $ | 424 | |||||||||
Trading Securities (and Certain Trading Assets) [Table Text Block] | ' | ||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | 1,771 | $ | 1,929 | |||||||||||||||
U.S. government bonds | 272 | 310 | |||||||||||||||||
Foreign government bonds | 24 | 31 | |||||||||||||||||
RMBS | 155 | 192 | |||||||||||||||||
CMBS | 7 | 17 | |||||||||||||||||
CLOs | 2 | 4 | |||||||||||||||||
State and municipal bonds | 21 | 27 | |||||||||||||||||
Hybrid and redeemable preferred securities | 30 | 42 | |||||||||||||||||
Total fixed maturity securities | 2,282 | 2,552 | |||||||||||||||||
Equity Securities | - | 2 | |||||||||||||||||
Total trading securities | $ | 2,282 | $ | 2,554 | |||||||||||||||
Composition Of Current And Past Due Mortgage Loans On Real Estate | ' | ||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Current | $ | 7,200 | $ | 7,011 | |||||||||||||||
60 to 90 days past due | 4 | 8 | |||||||||||||||||
Greater than 90 days past due | 3 | 24 | |||||||||||||||||
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | |||||||||||||||||
Unamortized premium (discount) | 6 | 7 | |||||||||||||||||
Total carrying value | $ | 7,210 | $ | 7,029 | |||||||||||||||
Schedule Of Impaired Mortgage Loans | ' | ||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Number of impaired mortgage loans on real estate | 3 | 10 | |||||||||||||||||
Principal balance of impaired mortgage loans on real estate | $ | 27 | $ | 75 | |||||||||||||||
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | |||||||||||||||||
Carrying value of impaired mortgage loans on real estate | $ | 24 | $ | 54 | |||||||||||||||
Schedule of changes in the valuation allowance associated with impaired mortgage loans on real estate | ' | ||||||||||||||||||
As of December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Balance as of beginning-of-year | $ | 21 | $ | 31 | |||||||||||||||
Additions | 3 | 14 | |||||||||||||||||
Charge-offs, net of recoveries | -21 | -24 | |||||||||||||||||
Balance as of end-of-year | $ | 3 | $ | 21 | |||||||||||||||
Schedule Of Average Carrying Value Of Impaired Mortgage Loans | ' | ||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Average carrying value for impaired mortgage loans on real estate | $ | 34 | $ | 51 | $ | 57 | |||||||||||||
Interest income recognized on impaired mortgage loans on real estate | 2 | 1 | 2 | ||||||||||||||||
Interest income collected on impaired mortgage loans on real estate | 2 | 1 | 2 | ||||||||||||||||
Credit Quality Indicators For Mortgage Loans | ' | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||
Debt- | Debt- | ||||||||||||||||||
Service | Service | ||||||||||||||||||
Principal | % of | Coverage | Principal | % of | Coverage | ||||||||||||||
Amount | Total | Ratio | Amount | Total | Ratio | ||||||||||||||
Less than 65% | $ | 6,026 | 83.6% | 1.78 | $ | 5,677 | 80.6% | 1.68 | |||||||||||
65% to 74% | 744 | 10.3% | 1.42 | 897 | 12.7% | 1.39 | |||||||||||||
75% to 100% | 402 | 5.6% | 0.83 | 386 | 5.5% | 0.84 | |||||||||||||
Greater than 100% | 35 | 0.5% | 0.78 | 83 | 1.2% | 0.66 | |||||||||||||
Total mortgage loans on real estate | $ | 7,207 | 100.0% | $ | 7,043 | 100.0% | |||||||||||||
Investment Income [Table Text Block] | ' | ||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Fixed maturity AFS securities | $ | 3,976 | $ | 3,910 | $ | 3,842 | |||||||||||||
Equity AFS securities | 6 | 6 | 5 | ||||||||||||||||
Trading securities | 137 | 147 | 154 | ||||||||||||||||
Mortgage loans on real estate | 388 | 397 | 408 | ||||||||||||||||
Real estate | 13 | 16 | 22 | ||||||||||||||||
Standby real estate equity commitments | - | - | 1 | ||||||||||||||||
Policy loans | 155 | 163 | 165 | ||||||||||||||||
Invested cash | 3 | 4 | 4 | ||||||||||||||||
Commercial mortgage loan prepayment and bond make-whole premiums | 117 | 48 | 82 | ||||||||||||||||
Alternative investments | 86 | 125 | 90 | ||||||||||||||||
Consent fees | 4 | 4 | 3 | ||||||||||||||||
Other investments | -9 | -19 | -13 | ||||||||||||||||
Investment income | 4,876 | 4,801 | 4,763 | ||||||||||||||||
Investment expense | -122 | -103 | -111 | ||||||||||||||||
Net investment income | $ | 4,754 | $ | 4,698 | $ | 4,652 | |||||||||||||
Realized Gain (Loss) Related To Certain Investments | ' | ||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Fixed maturity AFS securities: | |||||||||||||||||||
Gross gains | $ | 21 | $ | 16 | $ | 86 | |||||||||||||
Gross losses | -94 | -202 | -227 | ||||||||||||||||
Equity AFS securities: | |||||||||||||||||||
Gross gains | 8 | 1 | 12 | ||||||||||||||||
Gross losses | -2 | -9 | - | ||||||||||||||||
Gain (loss) on other investments | -3 | 2 | -9 | ||||||||||||||||
Associated amortization of DAC, VOBA, DSI and DFEL | |||||||||||||||||||
and changes in other contract holder funds | -28 | 2 | -10 | ||||||||||||||||
Total realized gain (loss) related to certain investments | $ | -98 | $ | -190 | $ | -148 | |||||||||||||
OTTI Recognized In Net Income (Loss) And OCI | ' | ||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
OTTI Recognized in Net Income (Loss) | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||
Corporate bonds | $ | -35 | $ | -65 | $ | -14 | |||||||||||||
RMBS | -31 | -53 | -79 | ||||||||||||||||
CMBS | -15 | -55 | -57 | ||||||||||||||||
CRE CDOs | -1 | -2 | -1 | ||||||||||||||||
Hybrid and redeemable preferred securities | - | - | -2 | ||||||||||||||||
Total fixed maturity securities | -82 | -175 | -153 | ||||||||||||||||
Equity securities | -1 | -8 | - | ||||||||||||||||
Gross OTTI recognized in net income (loss) | -83 | -183 | -153 | ||||||||||||||||
Associated amortization of DAC, VOBA, DSI, and DFEL | 13 | 30 | 29 | ||||||||||||||||
Net OTTI recognized in net income (loss), pre-tax | $ | -70 | $ | -153 | $ | -124 | |||||||||||||
Portion of OTTI Recognized in OCI | |||||||||||||||||||
Gross OTTI recognized in OCI | $ | 11 | $ | 121 | $ | 58 | |||||||||||||
Change in DAC, VOBA, DSI and DFEL | -1 | -15 | -13 | ||||||||||||||||
Net portion of OTTI recognized in OCI, pre-tax | $ | 10 | $ | 106 | $ | 45 | |||||||||||||
Payables For Collateral On Investments | ' | ||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||
Collateral payable held for derivative investments (1) | $ | 638 | $ | 638 | $ | 2,567 | $ | 2,567 | |||||||||||
Securities pledged under securities lending agreements (2) | 184 | 178 | 197 | 189 | |||||||||||||||
Securities pledged under repurchase agreements (3) | 530 | 553 | 280 | 294 | |||||||||||||||
Securities pledged for Term Asset-Backed Securities | |||||||||||||||||||
Loan Facility ("TALF") (4) | 36 | 49 | 37 | 52 | |||||||||||||||
Investments pledged for Federal Home Loan Bank of | |||||||||||||||||||
Indianapolis ("FHLBI") (5) | 1,850 | 3,127 | 1,100 | 1,936 | |||||||||||||||
Total payables for collateral on investments | $ | 3,238 | $ | 4,545 | $ | 4,181 | $ | 5,038 | |||||||||||
(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 6 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 securities for TALF are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount that has typically averaged 90% of the fair value of the TALF securities. The cash received in these transactions is invested in fixed maturity AFS securities. | |||||||||||||||||||
(5) 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 Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Collateral payable held for derivative investments | $ | -1,929 | $ | -413 | $ | 2,180 | |||||||||||||
Securities pledged under securities lending agreements | -13 | -3 | 1 | ||||||||||||||||
Securities pledged under repurchase agreements | 250 | - | - | ||||||||||||||||
Securities pledged for TALF | -1 | -136 | -107 | ||||||||||||||||
Investments pledged for FHLBI | 750 | 1,000 | - | ||||||||||||||||
Total increase (decrease) in payables for collateral on investments | $ | -943 | $ | 448 | $ | 2,074 | |||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Derivative Instruments [Abstract] | ' | |||||||||||||||||
Outstanding Derivative Instruments With Off-Balance-Sheet Risks | ' | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Notional | Fair Value | Notional | Fair Value | |||||||||||||||
Amounts | Asset | Liability | Amounts | Asset | Liability | |||||||||||||
Qualifying Hedges | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | $ | 4,339 | $ | 562 | $ | 148 | $ | 3,214 | $ | 462 | $ | 224 | ||||||
Foreign currency contracts (1) | 615 | 32 | 46 | 420 | 39 | 26 | ||||||||||||
Total cash flow hedges | 4,954 | 594 | 194 | 3,634 | 501 | 250 | ||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (1) | 875 | 92 | 33 | 875 | 269 | - | ||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||
Interest rate contracts (1) | 45,620 | 215 | 744 | 36,539 | 1,042 | 475 | ||||||||||||
Foreign currency contracts (1) | 102 | - | - | 48 | - | - | ||||||||||||
Equity market contracts (1) | 19,917 | 957 | 193 | 19,857 | 1,734 | 170 | ||||||||||||
Equity collar (1) | - | - | - | 9 | 1 | - | ||||||||||||
Credit contracts (2) | 126 | - | 2 | 148 | - | 11 | ||||||||||||
Embedded derivatives: | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts (3) | - | - | 1,048 | - | - | 732 | ||||||||||||
GLB (3) | - | 1,244 | - | - | - | 909 | ||||||||||||
Reinsurance related (4) | - | - | 108 | - | - | 215 | ||||||||||||
Total derivative instruments | $ | 71,594 | $ | 3,102 | $ | 2,322 | $ | 61,110 | $ | 3,547 | $ | 2,762 | ||||||
-1 | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | |||||||||||||||||
-2 | Reported in other liabilities on our Consolidated Balance Sheets. | |||||||||||||||||
-3 | Reported in future contract benefits on our Consolidated Balance Sheets. | |||||||||||||||||
-4 | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. | |||||||||||||||||
Maturity Of The Notional Amounts Of Derivative Financial Instruments | ' | |||||||||||||||||
Remaining Life as of December 31, 2013 | ||||||||||||||||||
Less Than | 1 – 5 | 6 – 10 | 11 – 30 | Over 30 | ||||||||||||||
1 Year | Years | Years | Years | Years | Total | |||||||||||||
Interest rate contracts (1) | $ | 5,343 | $ | 23,374 | $ | 10,697 | $ | 10,207 | $ | 1,213 | $ | 50,834 | ||||||
Foreign currency contracts (2) | 175 | 110 | 305 | 127 | - | 717 | ||||||||||||
Equity market contracts | 10,977 | 3,573 | 5,344 | 21 | 2 | 19,917 | ||||||||||||
Credit contracts | - | 126 | - | - | - | 126 | ||||||||||||
Total derivative instruments | ||||||||||||||||||
with notional amounts | $ | 16,495 | $ | 27,183 | $ | 16,346 | $ | 10,355 | $ | 1,215 | $ | 71,594 | ||||||
-1 | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | |||||||||||||||||
-2 | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2028. | |||||||||||||||||
Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Unrealized Gain (Loss) on Derivative Instruments | ||||||||||||||||||
Balance as of beginning-of-year | $ | 163 | $ | 119 | $ | -11 | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||
Unrealized holding gains (losses) arising during the year: | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts | 163 | 73 | 177 | |||||||||||||||
Foreign currency contracts | -24 | -22 | 3 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts | 4 | 4 | 4 | |||||||||||||||
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 | |||||||||||||||
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | - | |||||||||||||||
Income tax benefit (expense) | -45 | -21 | -67 | |||||||||||||||
Less: | ||||||||||||||||||
Reclassification adjustment for gains (losses) included in net income (loss): | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | -21 | -21 | -15 | |||||||||||||||
Interest rate contracts (2) | -1 | -1 | -1 | |||||||||||||||
Foreign currency contracts (1) | 3 | 3 | 2 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (2) | 4 | 4 | 4 | |||||||||||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 | |||||||||||||||
Income tax benefit (expense) | 5 | 4 | 3 | |||||||||||||||
Balance as of end-of-year | $ | 256 | $ | 163 | $ | 119 | ||||||||||||
-1 | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Qualifying Hedges | ||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||
Interest rate contracts (1) | $ | -21 | $ | -21 | $ | -15 | ||||||||||||
Foreign currency contracts (1) | 3 | 3 | 2 | |||||||||||||||
Total cash flow hedges | -18 | -18 | -13 | |||||||||||||||
Fair value hedges: | ||||||||||||||||||
Interest rate contracts (2) | 36 | 36 | 50 | |||||||||||||||
Non-Qualifying Hedges | ||||||||||||||||||
Interest rate contracts (3) | -989 | 35 | 1,100 | |||||||||||||||
Foreign currency contracts (3) | -4 | -8 | -12 | |||||||||||||||
Equity market contracts (3) | -1,306 | -1,377 | 316 | |||||||||||||||
Equity market contracts (4) | 38 | 18 | 21 | |||||||||||||||
Credit contracts (3) | 9 | 2 | -7 | |||||||||||||||
Embedded derivatives: | ||||||||||||||||||
Indexed annuity and universal life contracts (3) | -356 | -136 | 5 | |||||||||||||||
GLB reserves (3) | 2,153 | 1,308 | -1,809 | |||||||||||||||
Reinsurance related (3) | 107 | -47 | -66 | |||||||||||||||
Total derivative instruments | $ | -330 | $ | -187 | $ | -415 | ||||||||||||
-1 | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-3 | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-4 | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
Gains (Losses) On Derivative Instruments Designated As Cash Flow Hedges | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Gain (loss) recognized as a component of OCI with | ||||||||||||||||||
the offset to net investment income | $ | -19 | $ | -19 | $ | -13 | ||||||||||||
Gains (Losses) On Derivative Instruments Designated As Fair Value Hedges | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Gain (loss) recognized as a component of OCI with | ||||||||||||||||||
the offset to interest expense | $ | 4 | $ | 4 | $ | 4 | ||||||||||||
Open Credit Default Swap Liabilities | ' | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Credit | ||||||||||||||||||
Reason | Nature | Rating of | Number | Maximum | ||||||||||||||
for | of | Underlying | of | Fair | Potential | |||||||||||||
Maturity | Entering | Recourse | Obligation (1) | Instruments | Value (2) | Payout | ||||||||||||
12/20/2016 (3) | -4 | -5 | BBB- | 3 | $ | -1 | $ | 68 | ||||||||||
3/20/2017 (3) | -4 | -5 | BBB- | 3 | -1 | 58 | ||||||||||||
6 | $ | -2 | $ | 126 | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||
Credit | ||||||||||||||||||
Reason | Nature | Rating of | Number | Maximum | ||||||||||||||
for | of | Underlying | of | Fair | Potential | |||||||||||||
Maturity | Entering | Recourse | Obligation (1) | Instruments | Value (2) | Payout | ||||||||||||
12/20/2016 (3) | -4 | -5 | BBB- | 3 | $ | -4 | $ | 68 | ||||||||||
3/20/2017 (3) | -4 | -5 | BBB- | 4 | -7 | 80 | ||||||||||||
7 | $ | -11 | $ | 148 | ||||||||||||||
-1 | Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. | |||||||||||||||||
-2 | Broker quotes are used to determine the market value of our credit default swaps. | |||||||||||||||||
-3 | These credit default swaps were sold to a counterparty of the consolidated VIEs discussed in Note 4. | |||||||||||||||||
-4 | Credit default swaps were entered into in order to generate income by providing default protection in return for a quarterly payment. | |||||||||||||||||
-5 | Sellers do not have the right to demand indemnification or compensation from third parties in case of a loss (payment) on the contract. | |||||||||||||||||
Collateral Support Agreements | ' | |||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Maximum potential payout | $ | 126 | $ | 148 | ||||||||||||||
Less: Counterparty thresholds | - | - | ||||||||||||||||
Maximum collateral potentially required to post | $ | 126 | $ | 148 | ||||||||||||||
Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash | ' | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Collateral | Collateral | Collateral | Collateral | |||||||||||||||
Posted by | Posted by | Posted by | Posted by | |||||||||||||||
S&P | Counter- | LNC | Counter- | LNC | ||||||||||||||
Credit | Party | (Held by | Party | (Held by | ||||||||||||||
Rating of | (Held by | Counter- | (Held by | Counter- | ||||||||||||||
Counterparty | LNC) | Party) | LNC) | Party) | ||||||||||||||
AA | $ | - | $ | - | $ | 41 | $ | - | ||||||||||
AA- | 34 | -10 | 58 | - | ||||||||||||||
A+ | 19 | - | 605 | - | ||||||||||||||
A | 339 | -183 | 770 | -68 | ||||||||||||||
A- | 468 | -123 | 1,214 | - | ||||||||||||||
BBB+ | 79 | - | - | - | ||||||||||||||
BBB | - | - | 4 | - | ||||||||||||||
$ | 939 | $ | -316 | $ | 2,692 | $ | -68 | |||||||||||
Schedule Of Offsetting Assets And Liabilities | ' | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
Securities | ||||||||||||||||||
Embedded | Lending and | |||||||||||||||||
Derivative | Derivative | Repurchase | ||||||||||||||||
Instruments | Instruments | Agreements | Total | |||||||||||||||
Financial Assets | ||||||||||||||||||
Gross amount of recognized assets | $ | 1,805 | $ | 1,244 | $ | - | $ | 3,049 | ||||||||||
Gross amounts offset | -924 | - | - | -924 | ||||||||||||||
Net amount of assets | 881 | 1,244 | - | 2,125 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | -623 | - | - | -623 | ||||||||||||||
Net amount | $ | 258 | $ | 1,244 | $ | - | $ | 1,502 | ||||||||||
Financial Liabilities | ||||||||||||||||||
Gross amount of recognized liabilities | $ | 242 | $ | 1,156 | $ | 2,600 | $ | 3,998 | ||||||||||
Gross amounts offset | -55 | - | - | -55 | ||||||||||||||
Net amount of liabilities | 187 | 1,156 | 2,600 | 3,943 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | - | - | -2,600 | -2,600 | ||||||||||||||
Net amount | $ | 187 | $ | 1,156 | $ | - | $ | 1,343 | ||||||||||
As of December 31, 2012 | ||||||||||||||||||
Securities | ||||||||||||||||||
Embedded | Lending and | |||||||||||||||||
Derivative | Derivative | Repurchase | ||||||||||||||||
Instruments | Instruments | Agreements | Total | |||||||||||||||
Financial Assets | ||||||||||||||||||
Gross amount of recognized assets | $ | 3,547 | $ | - | $ | - | $ | 3,547 | ||||||||||
Gross amounts offset | -895 | - | - | -895 | ||||||||||||||
Net amount of assets | 2,652 | - | - | 2,652 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | -2,624 | - | - | -2,624 | ||||||||||||||
Net amount | $ | 28 | $ | - | $ | - | $ | 28 | ||||||||||
Financial Liabilities | ||||||||||||||||||
Gross amount of recognized liabilities | $ | 11 | $ | 1,856 | $ | 1,614 | $ | 3,481 | ||||||||||
Gross amounts offset | - | - | - | - | ||||||||||||||
Net amount of liabilities | 11 | 1,856 | 1,614 | 3,481 | ||||||||||||||
Gross amounts not offset: | ||||||||||||||||||
Cash collateral received | - | - | -1,614 | -1,614 | ||||||||||||||
Net amount | $ | 11 | $ | 1,856 | $ | - | $ | 1,867 | ||||||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Income tax expense (benefit), continuing operations | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Current | $ | 169 | $ | 23 | $ | 13 | ||||
Deferred | 218 | 259 | 261 | |||||||
Federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
Reconciliation of effective tax rate differences | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Tax rate times pre-tax income | $ | 571 | $ | 549 | $ | 176 | ||||
Effect of: | ||||||||||
Tax-preferred investment income | -160 | -141 | -144 | |||||||
Tax credits | -35 | -34 | -34 | |||||||
Goodwill | - | -2 | 260 | |||||||
Change in uncertain tax positions | 7 | -94 | 8 | |||||||
Other items | 4 | 4 | 8 | |||||||
Federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
Effective tax rate | 24% | 18% | 55% | |||||||
Federal income tax asset (liability) | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Current | $ | -186 | $ | -27 | ||||||
Deferred | -1,966 | -2,982 | ||||||||
Total federal income tax asset (liability) | $ | -2,152 | $ | -3,009 | ||||||
Significant components of deferred tax assets and liabilities | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Deferred Tax Assets | ||||||||||
Future contract benefits and other contract holder funds | $ | 1,225 | $ | 1,189 | ||||||
Deferred gain on business sold through reinsurance | 87 | 96 | ||||||||
Reinsurance related embedded derivative asset | 36 | 75 | ||||||||
Investments | 85 | 311 | ||||||||
Compensation and benefit plans | 319 | 293 | ||||||||
Net operating loss | 27 | 26 | ||||||||
Net capital loss | - | 32 | ||||||||
Tax credits | 201 | 222 | ||||||||
VIE | 4 | 35 | ||||||||
Other | 79 | 41 | ||||||||
Total deferred tax assets | 2,063 | 2,320 | ||||||||
Deferred Tax Liabilities | ||||||||||
DAC | 1,914 | 1,332 | ||||||||
VOBA | 409 | 246 | ||||||||
Net unrealized gain on AFS securities | 1,319 | 3,283 | ||||||||
Net unrealized gain on trading securities | 89 | 150 | ||||||||
Intangibles | 146 | 157 | ||||||||
Other | 152 | 134 | ||||||||
Total deferred tax liabilities | 4,029 | 5,302 | ||||||||
Net deferred tax asset (liability) | $ | -1,966 | $ | -2,982 | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||
For the Years Ended | ||||||||||
December 31, | ||||||||||
2013 | 2012 | |||||||||
Balance as of beginning-of-year | $ | 77 | $ | 211 | ||||||
Decreases for prior year tax positions | - | -49 | ||||||||
Increases for current year tax positions | 5 | 5 | ||||||||
Decreases for settlements with taxing authorities | - | -2 | ||||||||
Decreases for lapse of statute of limitations | - | -88 | ||||||||
Balance as of end-of-year | $ | 82 | $ | 77 | ||||||
DAC_VOBA_DSI_and_DFEL_Tables
DAC, VOBA, DSI and DFEL (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
DAC | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 5,943 | $ | 5,721 | $ | 6,036 | ||||
Deferrals | 1,564 | 1,294 | 1,375 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -816 | -785 | -687 | |||||||
Unlocking | 42 | -71 | -130 | |||||||
Adjustment related to realized (gains) losses | -8 | -70 | -18 | |||||||
Adjustment related to unrealized (gains) losses | 970 | -146 | -855 | |||||||
Balance as of end-of-year | $ | 7,695 | $ | 5,943 | $ | 5,721 | ||||
VOBA | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 724 | $ | 1,055 | $ | 1,378 | ||||
Business acquired (sold) through reinsurance | 4 | 2 | 12 | |||||||
Deferrals | 13 | 12 | 20 | |||||||
Amortization: | ||||||||||
Amortization, excluding unlocking | -179 | -225 | -279 | |||||||
Unlocking | -52 | -23 | 174 | |||||||
Accretion of interest (1) | 68 | 73 | 78 | |||||||
Adjustment related to realized (gains) losses | -1 | 9 | -6 | |||||||
Adjustment related to unrealized (gains) losses | 614 | -179 | -322 | |||||||
Balance as of end-of-year | $ | 1,191 | $ | 724 | $ | 1,055 | ||||
-1 | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%. | |||||||||
Estimated Future Amortization Of VOBA | ' | |||||||||
2014 | $ | 85 | ||||||||
2015 | 78 | |||||||||
2016 | 71 | |||||||||
2017 | 68 | |||||||||
2018 | 68 | |||||||||
DSI | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 253 | $ | 271 | $ | 286 | ||||
Deferrals | 10 | 39 | 39 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -43 | -46 | -38 | |||||||
Unlocking | 8 | 14 | -2 | |||||||
Adjustment related to realized (gains) losses | -1 | -8 | -1 | |||||||
Adjustment related to unrealized (gains) losses | 40 | -17 | -13 | |||||||
Balance as of end-of-year | $ | 267 | $ | 253 | $ | 271 | ||||
DFEL | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 1,373 | $ | 1,369 | $ | 1,502 | ||||
Deferrals | 320 | 349 | 544 | |||||||
Amortization, net of interest: | ||||||||||
Amortization, excluding unlocking, net of interest | -216 | -216 | -166 | |||||||
Unlocking | -14 | -69 | 31 | |||||||
Adjustment related to realized (gains) losses | -2 | -18 | -9 | |||||||
Adjustment related to unrealized (gains) losses | 477 | -42 | -533 | |||||||
Balance as of end-of-year | $ | 1,938 | $ | 1,373 | $ | 1,369 | ||||
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Reinsurance amounts recorded on Consolidated Statements of Income (Loss) | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Direct insurance premiums and fee income | $ | 8,023 | $ | 7,379 | $ | 6,997 | ||||
Reinsurance assumed | 8 | 9 | 10 | |||||||
Reinsurance ceded | -1,275 | -1,190 | -1,276 | |||||||
Total insurance premiums and fee income | $ | 6,756 | $ | 6,198 | $ | 5,731 | ||||
Direct insurance benefits | $ | 5,487 | $ | 5,095 | $ | 4,897 | ||||
Reinsurance recoveries netted against benefits | -1,625 | -1,554 | -1,552 | |||||||
Total benefits | $ | 3,862 | $ | 3,541 | $ | 3,345 | ||||
Goodwill_and_Specifically_Iden1
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||||
Changes in the carrying amount of goodwill, by reportable segment | ' | ||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Acquisition | Cumulative | ||||||||||||||||
Balance | Impairment | ||||||||||||||||
as of | as of | Balance | |||||||||||||||
Beginning- | Beginning- | as of End- | |||||||||||||||
of-Year | of-Year | Impairment | of-Year | ||||||||||||||
Annuities | $ | 1,040 | $ | -600 | $ | - | $ | 440 | |||||||||
Retirement Plan Services | 20 | - | - | 20 | |||||||||||||
Life Insurance | 2,188 | -649 | - | 1,539 | |||||||||||||
Group Protection | 274 | - | - | 274 | |||||||||||||
Other Operations – Media | 341 | -341 | - | - | |||||||||||||
Total goodwill | $ | 3,863 | $ | -1,590 | $ | - | $ | 2,273 | |||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Acquisition | Cumulative | ||||||||||||||||
Balance | Impairment | ||||||||||||||||
as of | as of | Balance | |||||||||||||||
Beginning- | Beginning- | as of End- | |||||||||||||||
of-Year | of-Year | Impairment | of-Year | ||||||||||||||
Annuities | $ | 1,040 | $ | -600 | $ | - | $ | 440 | |||||||||
Retirement Plan Services | 20 | - | - | 20 | |||||||||||||
Life Insurance | 2,188 | -649 | - | 1,539 | |||||||||||||
Group Protection | 274 | - | - | 274 | |||||||||||||
Other Operations – Media | 341 | -341 | - | - | |||||||||||||
Total goodwill | $ | 3,863 | $ | -1,590 | $ | - | $ | 2,273 | |||||||||
Gross carrying amounts and accumulated amortization for each major specifically identifiable intangible asset class, by reportable segment | ' | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||
Gross | Gross | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Life Insurance: | |||||||||||||||||
Sales force | $ | 100 | $ | 31 | $ | 100 | $ | 27 | |||||||||
Retirement Plan Services: | |||||||||||||||||
Mutual fund contract rights (1) | 5 | - | 5 | - | |||||||||||||
Other Operations: | |||||||||||||||||
FCC licenses (1) | 131 | - | 129 | - | |||||||||||||
Other | 4 | 3 | 4 | 3 | |||||||||||||
Total | $ | 240 | $ | 34 | $ | 238 | $ | 30 | |||||||||
Future estimated amortization of specifically identifiable intangible assets | ' | ||||||||||||||||
2014 | $ | 4 | |||||||||||||||
2015 | 4 | ||||||||||||||||
2016 | 4 | ||||||||||||||||
2017 | 4 | ||||||||||||||||
2018 | 4 | ||||||||||||||||
Thereafter | 50 | ||||||||||||||||
Guaranteed_Benefit_Features_Ta
Guaranteed Benefit Features (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Guaranteed Benefit Features [Abstract] | ' | |||||||||
Information On Guaranteed Death Benefit Features | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Return of Net Deposits | ||||||||||
Total account value | $ | 79,391 | $ | 63,478 | ||||||
Net amount at risk (1) | 141 | 392 | ||||||||
Average attained age of contract holders | 61 years | 60 years | ||||||||
Minimum Return | ||||||||||
Total account value | $ | 151 | $ | 149 | ||||||
Net amount at risk (1) | 27 | 37 | ||||||||
Average attained age of contract holders | 73 years | 73 years | ||||||||
Guaranteed minimum return | 5% | 5% | ||||||||
Anniversary Contract Value | ||||||||||
Total account value | $ | 25,958 | $ | 23,019 | ||||||
Net amount at risk (1) | 570 | 1,133 | ||||||||
Average attained age of contract holders | 68 years | 67 years | ||||||||
(1) Represents the amount of death benefit in excess of the account balance. The decrease in net amount at risk when comparing | ||||||||||
December 31, 2013, to December 31, 2012, was attributable primarily to the increase in the equity markets during 2013. | ||||||||||
Summary Of Guaranteed Death Benefit Liabilities | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance as of beginning-of-year | $ | 104 | $ | 84 | $ | 44 | ||||
Changes in reserves | -10 | 64 | 93 | |||||||
Benefits paid | -21 | -44 | -53 | |||||||
Balance as of end-of-year | $ | 73 | $ | 104 | $ | 84 | ||||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Asset Type | ||||||||||
Domestic equity | $ | 47,042 | $ | 37,899 | ||||||
International equity | 18,341 | 14,850 | ||||||||
Bonds | 24,547 | 21,174 | ||||||||
Money market | 10,926 | 7,747 | ||||||||
Total | $ | 100,856 | $ | 81,670 | ||||||
Percent of total variable annuity | ||||||||||
separate account values | 98% | 98% | ||||||||
ShortTerm_and_LongTerm_Debt_Ta
Short-Term and Long-Term Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Schedule of debt | ' | ||||||||
As of December 31, | |||||||||
2013 | 2012 | ||||||||
Short-Term Debt | |||||||||
Current maturities of long-term debt | $ | 500 | $ | 200 | |||||
Unamortized premiums (discounts) | 1 | - | |||||||
Total short-term debt | $ | 501 | $ | 200 | |||||
Long-Term Debt, Excluding Current Portion | |||||||||
Senior notes: | |||||||||
4.75% notes, due 2014 | $ | - | $ | 300 | |||||
4.75% notes, due 2014 | - | 200 | |||||||
4.30% notes, due 2015 (1) | 250 | 250 | |||||||
LIBOR + 3 bps notes, due 2017 (2) | 250 | 250 | |||||||
7.00% notes, due 2018 | 200 | 200 | |||||||
LIBOR + 110 bps loan, due 2018 | 250 | - | |||||||
8.75% notes, due 2019 (1) | 487 | 487 | |||||||
6.25% notes, due 2020 (1) | 300 | 300 | |||||||
4.85% notes, due 2021 (1) | 300 | 300 | |||||||
4.20% notes, due 2022 (1) | 300 | 300 | |||||||
4.00% notes, due 2023 (1) | 350 | - | |||||||
6.15% notes, due 2036 (1) | 498 | 498 | |||||||
6.30% notes, due 2037 (1)(2) | 375 | 375 | |||||||
7.00% notes, due 2040 (1)(2) | 500 | 500 | |||||||
Total senior notes | 4,060 | 3,960 | |||||||
Capital securities: | |||||||||
7.00%, due 2066 | 722 | 722 | |||||||
6.05%, due 2067 | 491 | 491 | |||||||
Total capital securities | 1,213 | 1,213 | |||||||
Unamortized premiums (discounts) | -12 | -3 | |||||||
Fair value hedge – interest rate swap agreements | 59 | 269 | |||||||
Total unamortized premiums (discounts) and fair value | |||||||||
hedge – interest rate swap agreements | 47 | 266 | |||||||
Total long-term debt | $ | 5,320 | $ | 5,439 | |||||
-1 | We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. | ||||||||
-2 | Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. | ||||||||
Details underlying the recognition of gain on extinguishment of debt | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Principal balance outstanding prior to payoff (1) | $ | - | $ | 15 | $ | 275 | |||
Unamortized debt issuance costs and discounts prior to payoff | - | - | -8 | ||||||
Amount paid to retire | - | -20 | -275 | ||||||
Gain (loss) on extinguishment of debt, pre-tax | $ | - | $ | -5 | $ | -8 | |||
-1 | During the fourth quarter of 2012, we repurchased $13 million of our 8.75% senior notes due 2019 and $2 million of our 6.15% senior notes due 2036. During the third quarter of 2011, we repurchased all of our 6.75% capital securities due 2066. | ||||||||
Future principal payments due on long-term debt | ' | ||||||||
2014 | $ | 500 | |||||||
2015 | 250 | ||||||||
2016 | - | ||||||||
2017 | 250 | ||||||||
2018 | 450 | ||||||||
Thereafter | 4,323 | ||||||||
Total | $ | 5,773 | |||||||
Credit facilities and letters of credit | ' | ||||||||
As of December 31, 2013 | |||||||||
Expiration | Maximum | LOCs | |||||||
Date | Available | Issued | |||||||
Credit Facilities | |||||||||
Five-year revolving credit facility | May-18 | $ | 2,500 | $ | 866 | ||||
LOC facility | Mar-23 | 156 | 156 | ||||||
LOC facility | Mar-23 | 883 | 848 | ||||||
LOC facility | Aug-31 | 805 | 791 | ||||||
LOC facility | Oct-31 | 996 | 996 | ||||||
Total | $ | 5,340 | $ | 3,657 | |||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes to Financial Statements [Abstract] | ' | |||
Future minimum rental commitments | ' | |||
2014 | $ | 42 | ||
2015 | 38 | |||
2016 | 34 | |||
2017 | 28 | |||
2018 | 20 | |||
Thereafter | 32 | |||
Total | $ | 194 | ||
Shares_and_Stockholders_Equity1
Shares and Stockholders' Equity (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Shares and Stockholders' Equity [Abstract] | ' | ||||||||
Changes In Preferred And Common stock (Number Of Shares) | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Series A Preferred Stock | |||||||||
Balance as of beginning-of-year | 9,532 | 10,072 | 10,914 | ||||||
Conversion of convertible preferred stock (1) | -5,818 | -540 | -842 | ||||||
Redemption of convertible preferred stock | -3,714 | - | - | ||||||
Balance as of end-of-year | - | 9,532 | 10,072 | ||||||
Common Stock | |||||||||
Balance as of beginning-of-year | 271,402,586 | 291,319,222 | 315,718,554 | ||||||
Conversion of convertible preferred stock (1) | 93,088 | 8,640 | 13,472 | ||||||
Stock issued for exercise of warrants | 1,981,856 | - | - | ||||||
Stock compensation/issued for benefit plans | 1,399,995 | 542,125 | 248,553 | ||||||
Retirement/cancellation of shares | -11,980,824 | -20,467,401 | -24,661,357 | ||||||
Balance as of end-of-year | 262,896,701 | 271,402,586 | 291,319,222 | ||||||
Common Stock as of End-of-Year | |||||||||
Assuming conversion of preferred stock | 262,896,701 | 271,555,098 | 291,480,374 | ||||||
Diluted basis | 272,196,891 | 279,087,588 | 298,225,244 | ||||||
(1) Represents the conversion of Series A preferred stock into common stock. | |||||||||
Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Weighted-average shares, as used in basic calculation | 265,631,377 | 280,648,391 | 307,216,181 | ||||||
Shares to cover exercise of outstanding warrants | 9,884,307 | 10,150,212 | 10,150,292 | ||||||
Shares to cover conversion of preferred stock | 74,582 | 153,749 | 173,289 | ||||||
Shares to cover non-vested stock | 1,491,483 | 1,153,178 | 813,905 | ||||||
Average stock options outstanding during the year | 2,873,295 | 570,180 | 636,989 | ||||||
Assumed acquisition of shares with assumed | |||||||||
proceeds from exercising outstanding warrants | -2,630,939 | -4,685,901 | -4,658,020 | ||||||
Assumed acquisition of shares with assumed | |||||||||
proceeds and benefits from exercising stock | |||||||||
options (at average market price for the year) | -2,036,098 | -394,241 | -427,425 | ||||||
Shares repurchaseable from measured but | |||||||||
unrecognized stock option expense | -139,131 | -4,723 | -65,882 | ||||||
Average deferred compensation shares | - | - | 1,110,722 | ||||||
Weighted-average shares, as used in diluted calculation | 275,148,876 | 287,590,845 | 314,950,051 | ||||||
Components And Changes In Accumulated OCI | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Unrealized Gain (Loss) on AFS Securities | |||||||||
Balance as of beginning-of-year | $ | 4,066 | $ | 2,947 | $ | 1,176 | |||
Unrealized holding gains (losses) arising during the year | -5,728 | 2,691 | 3,414 | ||||||
Change in foreign currency exchange rate adjustment | 19 | 14 | -5 | ||||||
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,834 | -1,233 | -797 | ||||||
Income tax benefit (expense) | 1,356 | -480 | -932 | ||||||
Less: | |||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | -67 | -194 | -129 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | -29 | -2 | -11 | ||||||
Income tax benefit (expense) | 34 | 69 | 49 | ||||||
Balance as of end-of-year | $ | 1,609 | $ | 4,066 | $ | 2,947 | |||
Unrealized OTTI on AFS Securities | |||||||||
Balance as of beginning-of-year | $ | -107 | $ | -109 | $ | -134 | |||
(Increases) attributable to: | |||||||||
Gross OTTI recognized in OCI during the year | -11 | -121 | -58 | ||||||
Change in DAC, VOBA, DSI and DFEL | 1 | 15 | 13 | ||||||
Income tax benefit (expense) | 4 | 36 | 16 | ||||||
Decreases attributable to: | |||||||||
Sales, maturities or other settlements of AFS securities | 62 | 129 | 103 | ||||||
Change in DAC, VOBA, DSI and DFEL | -8 | -18 | -20 | ||||||
Income tax benefit (expense) | -19 | -39 | -29 | ||||||
Balance as of end-of-year | $ | -78 | $ | -107 | $ | -109 | |||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||
Balance as of beginning-of-year | $ | 163 | $ | 119 | $ | -11 | |||
Unrealized holding gains (losses) arising during the year | 143 | 55 | 184 | ||||||
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 | ||||||
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | - | ||||||
Income tax benefit (expense) | -45 | -21 | -67 | ||||||
Less: | |||||||||
Reclassification adjustment for gains (losses) included in net income (loss) | -15 | -15 | -10 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 | ||||||
Income tax benefit (expense) | 5 | 4 | 3 | ||||||
Balance as of end-of-year | $ | 256 | $ | 163 | $ | 119 | |||
Foreign Currency Translation Adjustment | |||||||||
Balance as of beginning-of-year | $ | -4 | $ | 1 | $ | 1 | |||
Foreign currency translation adjustment arising during the year | -1 | -5 | - | ||||||
Income tax benefit (expense) | - | - | - | ||||||
Balance as of end-of-year | $ | -5 | $ | -4 | $ | 1 | |||
Funded Status of Employee Benefit Plans | |||||||||
Balance as of beginning-of-year | $ | -310 | $ | -278 | $ | -181 | |||
Adjustment arising during the year | 140 | 2 | -149 | ||||||
Income tax benefit (expense) | -49 | -34 | 52 | ||||||
Balance as of end-of-year | $ | -219 | $ | -310 | $ | -278 | |||
Schedule of Reclassifications Out Of AOCI | ' | ||||||||
Unrealized Gain (Loss) on AFS Securities | |||||||||
Gross reclassification | $ | -67 | Total realized gain (loss) | ||||||
Change in DAC, VOBA, DSI, and DFEL | -29 | Total realized gain (loss) | |||||||
Reclassification before income tax benefit (expense) | -96 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | 34 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | -62 | Net income (loss) | ||||||
Unrealized OTTI on AFS Securities | |||||||||
Gross reclassification | $ | 62 | Total realized gain (loss) | ||||||
Change in DAC, VOBA, DSI, and DFEL | -8 | Total realized gain (loss) | |||||||
Reclassification before income tax benefit (expense) | 54 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | -19 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | 35 | Net income (loss) | ||||||
Unrealized Gain (Loss) on Derivative Instruments | |||||||||
Gross reclassifications: | |||||||||
Interest rate contracts | $ | -21 | Net investment income | ||||||
Interest rate contracts | 3 | Interest and debt expense | |||||||
Foreign currency contracts | 3 | Net investment income | |||||||
Total gross reclassifications | -15 | ||||||||
Change in DAC, VOBA, DSI, and DFEL | 1 | Commissions and other expenses | |||||||
Reclassifications before income tax benefit (expense) | -14 | Income (loss) from continuing operations before taxes | |||||||
Income tax benefit (expense) | 5 | Federal income tax expense (benefit) | |||||||
Reclassification, net of income tax | $ | -9 | Net income (loss) | ||||||
Realized_Gain_Loss_Tables
Realized Gain (Loss) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Realized (Gain) Loss [Abstract] | ' | ||||||||
Details underlying realized (gain) loss | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Total realized gain (loss) related to certain investments (1) | $ | -98 | $ | -190 | $ | -148 | |||
Realized gain (loss) on the mark-to-market on certain instruments (2) | 48 | 133 | -82 | ||||||
Indexed annuity and universal life net derivatives results: (3) | |||||||||
Gross gain (loss) | -39 | 16 | 2 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 9 | -5 | -2 | ||||||
Variable annuity net derivatives results: (4) | |||||||||
Gross gain (loss) | -60 | 164 | -60 | ||||||
Associated amortization of DAC, VOBA, DSI and DFEL | 5 | -44 | -4 | ||||||
Total realized gain (loss) | $ | -135 | $ | 74 | $ | -294 | |||
-1 | See “Realized Gain (Loss) Related to Certain Investments” section in Note 5. | ||||||||
-2 | Represents changes in the fair values of certain derivative investments (not including those associated with our variable annuity net derivatives results), reinsurance related embedded derivatives and trading securities. | ||||||||
-3 | Represents the net difference between the change in the fair value of the S&P 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and universal life products along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | ||||||||
-4 | Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GDB riders, including the cost of purchasing the hedging instruments. | ||||||||
Commissions_and_Other_Expenses1
Commissions and Other Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||
Details underlying commissions and other expenses | ' | ||||||||
For the Years Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
Commissions | $ | 1,962 | $ | 1,660 | $ | 1,672 | |||
General and administrative expenses | 1,630 | 1,564 | 1,423 | ||||||
Expenses associated with reserve financing and unrelated LOCs | 64 | 56 | 47 | ||||||
DAC and VOBA deferrals and interest, net of amortization | -640 | -275 | -551 | ||||||
Broker-dealer expenses | 387 | 348 | 353 | ||||||
Specifically identifiable intangible asset amortization | 4 | 4 | 4 | ||||||
Media expenses | 62 | 67 | 69 | ||||||
Taxes, licenses and fees | 232 | 239 | 247 | ||||||
Restructuring charges | - | 20 | - | ||||||
Total | $ | 3,701 | $ | 3,683 | $ | 3,264 | |||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||||||||||
Obligations, funded status and assumptions | ' | |||||||||||||||||
As of or For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. | Non-U.S. | Other | ||||||||||||||||
Pension Benefits | Pension Benefits | Postretirement Benefits | ||||||||||||||||
Change in Plan Assets | ||||||||||||||||||
Fair value as of beginning-of-year | $ | 1,043 | $ | 956 | $ | 371 | $ | 350 | $ | 42 | $ | 39 | ||||||
Actual return on plan assets | 67 | 123 | 18 | 28 | 3 | 3 | ||||||||||||
Company and participant contributions | 6 | 32 | 6 | 7 | 13 | 15 | ||||||||||||
Benefits paid | -69 | -68 | -16 | -14 | -16 | -17 | ||||||||||||
Medicare Part D subsidy | - | - | - | - | 3 | 2 | ||||||||||||
Fair value as of end-of-year | 1,047 | 1,043 | 379 | 371 | 45 | 42 | ||||||||||||
Change in Benefit Obligation | ||||||||||||||||||
Balance as of beginning-of-year | 1,284 | 1,238 | 364 | 311 | 139 | 161 | ||||||||||||
Service cost (1) | 5 | 5 | - | - | 3 | 4 | ||||||||||||
Interest cost | 51 | 53 | 16 | 15 | 5 | 7 | ||||||||||||
Company and participant contributions | - | - | - | - | 4 | 6 | ||||||||||||
Amendments | - | - | - | - | -29 | - | ||||||||||||
Actuarial (gains) losses | -93 | 61 | 9 | 52 | -7 | -24 | ||||||||||||
Administrative expenses paid | -6 | -5 | - | - | - | - | ||||||||||||
Benefits paid | -69 | -68 | -16 | -14 | -16 | -17 | ||||||||||||
Medicare Part D subsidy | - | - | - | - | 3 | 2 | ||||||||||||
Balance as of end-of-year | 1,172 | 1,284 | 373 | 364 | 102 | 139 | ||||||||||||
Funded status of the plans | $ | -125 | $ | -241 | $ | 6 | $ | 7 | $ | -57 | $ | -97 | ||||||
Amounts Recognized on the | ||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||
Other assets | $ | 14 | $ | 21 | $ | 6 | $ | 7 | $ | - | $ | - | ||||||
Other liabilities | -139 | -262 | - | - | -57 | -97 | ||||||||||||
Net amount recognized | $ | -125 | $ | -241 | $ | 6 | $ | 7 | $ | -57 | $ | -97 | ||||||
Amounts Recognized in | ||||||||||||||||||
Accumulated OCI, Net of Tax | ||||||||||||||||||
Net (gain) loss | $ | 157 | $ | 229 | $ | 107 | $ | 95 | $ | -15 | $ | -11 | ||||||
Prior service credit | - | - | - | - | -18 | -3 | ||||||||||||
Net amount recognized | $ | 157 | $ | 229 | $ | 107 | $ | 95 | $ | -33 | $ | -14 | ||||||
Rate of Increase in Compensation | ||||||||||||||||||
Retiree Life Insurance Plan | N/A | N/A | N/A | N/A | 4.00% | 4.00% | ||||||||||||
All other plans | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||
Weighted-Average Assumptions | ||||||||||||||||||
Benefit obligations: | ||||||||||||||||||
Weighted-average discount rate | 4.70% | 4.16% | 4.45% | 4.40% | 4.50% | 4.03% | ||||||||||||
Expected return on plan assets | 7.82% | 7.79% | 5.50% | 5.30% | 6.50% | 6.50% | ||||||||||||
Net periodic benefit cost: | ||||||||||||||||||
Weighted-average discount rate | 4.16% | 4.45% | 4.40% | 5.00% | 4.03% | 4.25% | ||||||||||||
Expected return on plan assets | 7.82% | 7.79% | 5.50% | 5.30% | 6.50% | 6.50% | ||||||||||||
-1 | Amounts for our U.S. pension plans represent general and administrative expenses. | |||||||||||||||||
Health care cost trend rate | ' | |||||||||||||||||
As of or For the | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Pre-65 health care cost trend rate | 7.50% | 8.00% | 8.50% | |||||||||||||||
Post-65 health care cost trend rate | 7.50% | 8.00% | 8.50% | |||||||||||||||
Ultimate trend rate | 4.50% | 4.50% | 4.50% | |||||||||||||||
Year that the rate reaches the ultimate trend rate | 2020 | 2020 | 2021 | |||||||||||||||
Pension plans with an accumulated benefit obligation in excess of plan assets | ' | |||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
U.S. Plan | ||||||||||||||||||
Accumulated benefit obligation | $ | 1,059 | $ | 1,160 | ||||||||||||||
Projected benefit obligation | 1,059 | 1,160 | ||||||||||||||||
Fair value of plan assets | 920 | 898 | ||||||||||||||||
Components of net periodic benefit cost | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||
Pension Benefits | Other Postretirement Benefits | |||||||||||||||||
U.S. Plans | ||||||||||||||||||
Service cost (1) | $ | 5 | $ | 5 | $ | 3 | $ | 3 | $ | 4 | $ | 4 | ||||||
Interest cost | 51 | 53 | 58 | 5 | 7 | 7 | ||||||||||||
Expected return on plan assets | -78 | -72 | -71 | -3 | -3 | -2 | ||||||||||||
Amortization of prior service cost | - | - | - | -1 | -1 | -1 | ||||||||||||
Recognized net actuarial loss (gain) | 24 | 26 | 13 | -1 | 1 | 1 | ||||||||||||
Recognized actuarial gain due | ||||||||||||||||||
to curtailments | - | - | - | -5 | - | - | ||||||||||||
Net periodic benefit expense (recovery) | $ | 2 | $ | 12 | $ | 3 | $ | -2 | $ | 8 | $ | 9 | ||||||
Non-U.S. Plans | ||||||||||||||||||
Interest cost | $ | 16 | $ | 15 | $ | 15 | ||||||||||||
Expected return on plan assets | -19 | -17 | -16 | |||||||||||||||
Recognized net actuarial loss (gain) | 2 | 1 | - | |||||||||||||||
Net periodic benefit expense (recovery) | $ | -1 | $ | -1 | $ | -1 | ||||||||||||
Pension plan asset target allocations by asset category | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. Plan – Employees | U.S. Plan – Agents | Non-U.S. Plan | ||||||||||||||||
Asset Class | ||||||||||||||||||
Fixed maturity securities | 50% | 50% | 100% | 80% | 39% | 39% | ||||||||||||
Common stock: | ||||||||||||||||||
Domestic equity | 35% | 35% | 0% | 14% | 0% | 0% | ||||||||||||
International equity | 15% | 15% | 0% | 6% | 0% | 0% | ||||||||||||
Equity securities | 0% | 0% | 0% | 0% | 58% | 59% | ||||||||||||
Cash and invested cash | 0% | 0% | 0% | 0% | 3% | 2% | ||||||||||||
Fair value measurements of pension plan assets on a recurring basis | ' | |||||||||||||||||
As of December 31, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||
U.S. | Non-U.S. | Other | ||||||||||||||||
Pension Plans | Pension Plans | Postretirement Benefits | ||||||||||||||||
Fixed maturity securities: | ||||||||||||||||||
Corporate bonds | $ | 374 | $ | 343 | $ | 40 | $ | 35 | $ | - | $ | - | ||||||
U.S. government bonds | 133 | 145 | 4 | 4 | - | - | ||||||||||||
Foreign government bonds | - | 15 | 174 | 179 | - | - | ||||||||||||
RMBS | - | 1 | - | - | - | - | ||||||||||||
CMBS | - | 3 | - | - | - | - | ||||||||||||
CDOs | - | 1 | 4 | 4 | - | - | ||||||||||||
State and municipal bonds | 37 | 42 | - | - | - | - | ||||||||||||
Common and preferred stock | 463 | 475 | 83 | 96 | - | - | ||||||||||||
Cash and invested cash | 40 | 18 | 74 | 53 | - | - | ||||||||||||
Other investments | - | - | - | - | 45 | 42 | ||||||||||||
Total | $ | 1,047 | $ | 1,043 | $ | 379 | $ | 371 | $ | 45 | $ | 42 | ||||||
Estimated future benefit payments | ' | |||||||||||||||||
Pension Plans | ||||||||||||||||||
Qualified | Nonqualified | Qualified | ||||||||||||||||
U.S. | U.S. | Non-U.S. | U.S. | |||||||||||||||
Defined | Defined | Defined | Other | |||||||||||||||
Benefit | Benefit | Benefit | Post- | |||||||||||||||
Pension | Pension | Pension | retirement | |||||||||||||||
Plans | Plans | Plans | Plans | |||||||||||||||
2014 | $ | 73 | $ | 10 | $ | 14 | $ | 9 | ||||||||||
2015 | 73 | 10 | 14 | 9 | ||||||||||||||
2016 | 74 | 10 | 15 | 9 | ||||||||||||||
2017 | 71 | 10 | 16 | 9 | ||||||||||||||
2018 | 71 | 9 | 17 | 8 | ||||||||||||||
Following five years thereafter | 343 | 44 | 94 | 35 | ||||||||||||||
Defined_Contribution_and_Defer1
Defined Contribution and Deferred Compensation Plans (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Deferred compensation plans liabilities and investments | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Total liabilities (1) | $ | 468 | $ | 386 | ||||||
Investments held to fund liabilities (2) | 153 | 135 | ||||||||
-1 | Reported in other liabilities on our Consolidated Balance Sheets. | |||||||||
-2 | Reported in other assets on our Consolidated Balance Sheets. | |||||||||
Employees [Member] | ' | |||||||||
Expenses for deferred compensation plans | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 9 | $ | 7 | $ | 6 | ||||
Increase (decrease) in measurement of | ||||||||||
liabilities, net of total return swap | 14 | 7 | 1 | |||||||
Total plan expenses (income) | $ | 23 | $ | 14 | $ | 7 | ||||
Agents [Member] | ' | |||||||||
Expenses for deferred compensation plans | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Employer matching contributions | $ | 1 | $ | 1 | $ | 1 | ||||
Increase (decrease) in measurement of | ||||||||||
liabilities, net of total return swap | 4 | 2 | - | |||||||
Total plan expenses (income) | $ | 5 | $ | 3 | $ | 1 | ||||
StockBased_Incentive_Compensat1
Stock-Based Incentive Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||
Total compensation expense for all stock-based incentive compensation plans | ' | ||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Stock options | $ | 9 | $ | 8 | $ | 8 | |||||||||
Performance shares | 10 | 5 | 2 | ||||||||||||
SARs | 5 | 1 | - | ||||||||||||
RSUs and nonvested stock | 16 | 17 | 12 | ||||||||||||
Total | $ | 40 | $ | 31 | $ | 22 | |||||||||
Recognized tax benefit | $ | 14 | $ | 11 | $ | 8 | |||||||||
Total unrecognized compensation expense for all stock-based incentive compensation plans | ' | ||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted- | Weighted- | Weighted- | |||||||||||||
Average | Average | Average | |||||||||||||
Expense | Period | Expense | Period | Expense | Period | ||||||||||
Stock options | $ | 9 | 1.9 | $ | 6 | 1.8 | $ | 6 | 1.7 | ||||||
Performance shares | 9 | 1.5 | 9 | 1.6 | 4 | 2.0 | |||||||||
SARs | 3 | 3.4 | 1 | 3.3 | 1 | 3.4 | |||||||||
RSUs and nonvested stock | 18 | 1.2 | 20 | 1.3 | 17 | 1.7 | |||||||||
Total unrecognized stock-based | |||||||||||||||
incentive compensation expense | $ | 39 | $ | 36 | $ | 28 | |||||||||
Option price assumptions used for stock option incentive plans | ' | ||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per option granted | $ | 7.39 | $ | 8.35 | $ | 13.88 | |||||||||
Assumptions: | |||||||||||||||
Dividend yield | 2.4% | 1.9% | 1.2% | ||||||||||||
Expected volatility | 34.1% | 42.0% | 48.5% | ||||||||||||
Risk-free interest rate | 0.6-0.9% | 0.9-1.2% | 1.4-2.9% | ||||||||||||
Expected life (in years) | 5.6 | 5.8 | 6.7 | ||||||||||||
Summary of activity for stock options with performance conditions | ' | ||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 1,267,595 | $ | 45.29 | ||||||||||||
Granted – original | 82,317 | 33.44 | |||||||||||||
Exercised (includes shares tendered) | -65,521 | 25.11 | |||||||||||||
Forfeited or expired | -107,417 | 44.17 | |||||||||||||
Outstanding as of December 31, 2013 | 1,176,974 | $ | 45.84 | 3.64 | $ | 8 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 1,120,709 | $ | 46.61 | 3.65 | $ | 7 | |||||||||
Exercisable as of December 31, 2013 | 1,064,562 | $ | 47.46 | 3.66 | $ | 5 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
Summary of activity for stock options with service conditions | ' | ||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 5,515,761 | $ | 41.20 | ||||||||||||
Granted – original | 1,070,085 | 29.54 | |||||||||||||
Exercised (includes shares tendered) | -1,003,571 | 41.99 | |||||||||||||
Forfeited or expired | -653,922 | 43.83 | |||||||||||||
Outstanding as of December 31, 2013 | 4,928,353 | $ | 38.18 | 5.28 | $ | 74 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 4,641,843 | $ | 38.82 | 5.08 | $ | 67 | |||||||||
Exercisable as of December 31, 2013 | 3,245,712 | $ | 43.41 | 3.50 | $ | 35 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
Summary of activity for performance shares | ' | ||||||||||||||
Weighted- | |||||||||||||||
Average | |||||||||||||||
Grant-Date | |||||||||||||||
Shares | Fair Value | ||||||||||||||
Nonvested as of December 31, 2012 | 479,498 | $ | 32.48 | ||||||||||||
Granted | 260,114 | 33.60 | |||||||||||||
Forfeited | -28,920 | 32.51 | |||||||||||||
Nonvested as of December 31, 2013 | 710,692 | $ | 32.74 | ||||||||||||
Option price assumptions used for stock appreciation rights plan | ' | ||||||||||||||
For the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | |||||||||||||
Weighted-average fair value per SAR granted | $ | 7.47 | $ | 8.91 | $ | 9.41 | |||||||||
Assumptions: | |||||||||||||||
Dividend yield | 2.2% | 1.4% | 1.9% | ||||||||||||
Expected volatility | 30.5% | 40.7% | 39.1% | ||||||||||||
Risk-free interest rate | 1.0% | 1.3% | 2.2% | ||||||||||||
Expected life (in years) | 5.0 | 5.0 | 5.0 | ||||||||||||
Summary of activity for stock appreciation rights plan | ' | ||||||||||||||
Weighted- | |||||||||||||||
Weighted- | Average | ||||||||||||||
Average | Remaining | Aggregate | |||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||
Shares | Price | Term | Value | ||||||||||||
Outstanding as of December 31, 2012 | 569,681 | $ | 35.01 | ||||||||||||
Granted – original | 112,990 | 33.44 | |||||||||||||
Exercised (includes shares tendered) | -97,722 | 23.08 | |||||||||||||
Forfeited or expired | -230,906 | 48.39 | |||||||||||||
Outstanding as of December 31, 2013 | 354,043 | $ | 29.00 | 2.73 | $ | 8 | |||||||||
Vested or expected to vest as of December 31, 2013 (1) | 335,586 | $ | 28.89 | 2.67 | $ | 8 | |||||||||
Exercisable as of December 31, 2013 | 185,822 | $ | 27.09 | 1.99 | $ | 5 | |||||||||
-1 | Includes estimated forfeitures. | ||||||||||||||
Summary of activity for restricted stock units | ' | ||||||||||||||
Weighted- | |||||||||||||||
Average | |||||||||||||||
Grant-Date | |||||||||||||||
Shares | Fair Value | ||||||||||||||
Outstanding as of December 31, 2012 | 1,716,407 | $ | 26.49 | ||||||||||||
Granted | 583,404 | 30.53 | |||||||||||||
Vested | -588,217 | 25.26 | |||||||||||||
Forfeited | -81,187 | 27.08 | |||||||||||||
Outstanding as of December 31, 2013 | 1,630,407 | $ | 28.24 | ||||||||||||
Statutory_Information_and_Rest1
Statutory Information and Restrictions (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Statutory information | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
U.S. capital and surplus | $ | 7,484 | $ | 6,715 | ||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
U.S. net gain (loss) from operations, after-tax | $ | 494 | $ | 736 | $ | 323 | ||||
U.S. net income (loss) | 561 | 681 | 135 | |||||||
U.S. dividends to LNC holding company | 725 | 635 | 818 | |||||||
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Calculation of reserves using the Indiana universal life method | $ | 219 | $ | 249 | ||||||
Calculation of reserves using continuous CARVM | -2 | -2 | ||||||||
Conservative valuation rate on certain annuities | -30 | -26 | ||||||||
Lesser of LOC and XXX additional reserve as surplus | 2,635 | 2,483 | ||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Of Financial Instruments [Abstract] | ' | |||||||||||||||||
Carrying And Estimated Fair Values Of Financial Instruments | ' | |||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||||
Value | Value | Value | Value | |||||||||||||||
Assets | ||||||||||||||||||
AFS securities: | ||||||||||||||||||
Fixed maturity securities | $ | 80,078 | $ | 80,078 | $ | 82,036 | $ | 82,036 | ||||||||||
VIEs' fixed maturity securities | 697 | 697 | 708 | 708 | ||||||||||||||
Equity securities | 201 | 201 | 157 | 157 | ||||||||||||||
Trading securities | 2,282 | 2,282 | 2,554 | 2,554 | ||||||||||||||
Mortgage loans on real estate | 7,210 | 7,386 | 7,029 | 7,704 | ||||||||||||||
Derivative investments (1) | 881 | 881 | 2,652 | 2,652 | ||||||||||||||
Other investments | 1,218 | 1,218 | 1,098 | 1,098 | ||||||||||||||
Cash and invested cash | 2,364 | 2,364 | 4,230 | 4,230 | ||||||||||||||
Separate account assets | 117,135 | 117,135 | 95,373 | 95,373 | ||||||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | -1,048 | -1,048 | -732 | -732 | ||||||||||||||
GLB reserves embedded derivatives | 1,244 | 1,244 | -909 | -909 | ||||||||||||||
Other contract holder funds: | ||||||||||||||||||
Remaining guaranteed interest and similar contracts | -809 | -809 | -867 | -867 | ||||||||||||||
Account values of certain investment contracts | -29,078 | -30,574 | -28,540 | -32,688 | ||||||||||||||
Short-term debt (2) | -501 | -500 | -200 | -204 | ||||||||||||||
Long-term debt | -5,320 | -5,762 | -5,439 | -5,824 | ||||||||||||||
Reinsurance related embedded derivatives | -108 | -108 | -215 | -215 | ||||||||||||||
VIEs' liabilities – derivative instruments | -27 | -27 | -128 | -128 | ||||||||||||||
Other liabilities: | ||||||||||||||||||
Credit default swaps | -2 | -2 | -11 | -11 | ||||||||||||||
Derivative liabilities (1) | -187 | -187 | - | - | ||||||||||||||
Benefit Plans' Assets (3) | 1,471 | 1,471 | 1,456 | 1,456 | ||||||||||||||
-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. | |||||||||||||||||
-2 | The difference between the carrying value and fair value of short-term debt as of December 31, 2013 and 2012, related to current maturities of long-term debt. | |||||||||||||||||
-3 | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for additional detail. | |||||||||||||||||
Fair Value Of Assets And Liabilities On A Recurring Basis | ' | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||
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 | $ | 60 | $ | 67,164 | $ | 1,711 | $ | 68,935 | ||||||||||
U.S. government bonds | 346 | 21 | - | 367 | ||||||||||||||
Foreign government bonds | - | 470 | 79 | 549 | ||||||||||||||
RMBS | - | 4,349 | 1 | 4,350 | ||||||||||||||
CMBS | - | 708 | 20 | 728 | ||||||||||||||
CLOs | - | 46 | 179 | 225 | ||||||||||||||
State and municipal bonds | - | 3,891 | 28 | 3,919 | ||||||||||||||
Hybrid and redeemable preferred securities | 40 | 899 | 66 | 1,005 | ||||||||||||||
VIEs' fixed maturity securities | 102 | 595 | - | 697 | ||||||||||||||
Equity AFS securities | 3 | 37 | 161 | 201 | ||||||||||||||
Trading securities | - | 2,230 | 52 | 2,282 | ||||||||||||||
Derivative investments (1) | - | 340 | 1,518 | 1,858 | ||||||||||||||
Cash and invested cash | - | 2,364 | - | 2,364 | ||||||||||||||
Separate account assets | 1,767 | 115,368 | - | 117,135 | ||||||||||||||
Total assets | $ | 2,318 | $ | 198,482 | $ | 5,059 | $ | 205,859 | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | $ | - | $ | - | $ | -1,048 | $ | -1,048 | ||||||||||
GLB reserves embedded derivatives | - | - | 1,244 | 1,244 | ||||||||||||||
Long-term debt | - | -1,203 | - | -1,203 | ||||||||||||||
Reinsurance related embedded derivatives | - | -108 | - | -108 | ||||||||||||||
VIEs' liabilities – derivative instruments | - | - | -27 | -27 | ||||||||||||||
Other liabilities: | ||||||||||||||||||
Credit default swaps | - | - | -2 | -2 | ||||||||||||||
Derivative liabilities (1) | - | -912 | -252 | -1,164 | ||||||||||||||
Total liabilities | $ | - | $ | -2,223 | $ | -85 | $ | -2,308 | ||||||||||
Benefit Plans' Assets | $ | 114 | $ | 1,357 | $ | - | $ | 1,471 | ||||||||||
-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. | |||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||
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 | $ | 65 | $ | 66,446 | $ | 1,505 | $ | 68,016 | ||||||||||
U.S. government bonds | 411 | 30 | 1 | 442 | ||||||||||||||
Foreign government bonds | - | 608 | 46 | 654 | ||||||||||||||
RMBS | - | 6,168 | 3 | 6,171 | ||||||||||||||
CMBS | - | 976 | 27 | 1,003 | ||||||||||||||
CLOs | - | 26 | 154 | 180 | ||||||||||||||
State and municipal bonds | - | 4,321 | 32 | 4,353 | ||||||||||||||
Hybrid and redeemable preferred securities | 30 | 1,069 | 118 | 1,217 | ||||||||||||||
VIEs' fixed maturity securities | 110 | 598 | - | 708 | ||||||||||||||
Equity AFS securities | 44 | 26 | 87 | 157 | ||||||||||||||
Trading securities | 2 | 2,496 | 56 | 2,554 | ||||||||||||||
Derivative investments | - | 626 | 2,026 | 2,652 | ||||||||||||||
Cash and invested cash | - | 4,230 | - | 4,230 | ||||||||||||||
Separate account assets | 1,519 | 93,854 | - | 95,373 | ||||||||||||||
Total assets | $ | 2,181 | $ | 181,474 | $ | 4,055 | $ | 187,710 | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | $ | - | $ | - | $ | -732 | $ | -732 | ||||||||||
GLB reserves embedded derivatives | - | - | -909 | -909 | ||||||||||||||
Long-term debt | - | -1,203 | - | -1,203 | ||||||||||||||
Reinsurance related embedded derivatives | - | -215 | - | -215 | ||||||||||||||
VIEs' liabilities – derivative instruments | - | - | -128 | -128 | ||||||||||||||
Other liabilities – credit default swaps | - | - | -11 | -11 | ||||||||||||||
Total liabilities | $ | - | $ | -1,418 | $ | -1,780 | $ | -3,198 | ||||||||||
Benefit Plans' Assets | $ | 116 | $ | 1,340 | $ | - | $ | 1,456 | ||||||||||
Fair Value Measured On A Recurring Basis Reconciliation | ' | |||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,505 | $ | -18 | $ | -1 | $ | 345 | $ | -120 | $ | 1,711 | ||||||
U.S. government bonds | 1 | - | - | -1 | - | - | ||||||||||||
Foreign government bonds | 46 | - | - | 33 | - | 79 | ||||||||||||
RMBS | 3 | - | - | -2 | - | 1 | ||||||||||||
CMBS | 27 | 1 | 6 | -6 | -8 | 20 | ||||||||||||
CLOs | 154 | -1 | 4 | 50 | -28 | 179 | ||||||||||||
State and municipal bonds | 32 | - | -4 | - | - | 28 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 118 | - | 13 | -35 | -30 | 66 | ||||||||||||
Equity AFS securities | 87 | -1 | 2 | 73 | - | 161 | ||||||||||||
Trading securities | 56 | 3 | -7 | -6 | 6 | 52 | ||||||||||||
Derivative investments | 2,026 | -681 | 96 | -175 | - | 1,266 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -732 | -356 | - | 40 | - | -1,048 | ||||||||||||
GLB reserves embedded derivatives | -909 | 2,153 | - | - | - | 1,244 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -128 | 101 | - | - | - | -27 | ||||||||||||
Other liabilities – credit default swaps (6) | -11 | 9 | - | - | - | -2 | ||||||||||||
Total, net | $ | 2,275 | $ | 1,210 | $ | 109 | $ | 316 | $ | -180 | $ | 3,730 | ||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,888 | $ | -27 | $ | 34 | $ | 266 | $ | -656 | $ | 1,505 | ||||||
U.S. government bonds | 1 | - | - | - | - | 1 | ||||||||||||
Foreign government bonds | 97 | - | - | -5 | -46 | 46 | ||||||||||||
RMBS | 158 | -3 | 3 | -8 | -147 | 3 | ||||||||||||
CMBS | 34 | -11 | 18 | -12 | -2 | 27 | ||||||||||||
CLOs | 102 | -2 | 8 | 61 | -15 | 154 | ||||||||||||
State and municipal bonds | - | - | - | 32 | - | 32 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 100 | -1 | 24 | - | -5 | 118 | ||||||||||||
Equity AFS securities | 56 | -8 | 13 | 26 | - | 87 | ||||||||||||
Trading securities | 68 | 3 | 4 | -2 | -17 | 56 | ||||||||||||
Derivative investments | 2,470 | -790 | 158 | 188 | - | 2,026 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -399 | -136 | - | -197 | - | -732 | ||||||||||||
GLB reserves embedded derivatives | -2,217 | 1,308 | - | - | - | -909 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -291 | 163 | - | - | - | -128 | ||||||||||||
Other liabilities – credit default swaps (6) | -16 | 5 | - | - | - | -11 | ||||||||||||
Total, net | $ | 2,051 | $ | 501 | $ | 262 | $ | 349 | $ | -888 | $ | 2,275 | ||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Purchases, | ||||||||||||||||||
Gains | Issuances, | Transfers | ||||||||||||||||
Items | (Losses) | Sales, | In 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 | $ | 1,816 | $ | 2 | $ | 42 | $ | -138 | $ | 166 | $ | 1,888 | ||||||
U.S. government bonds | 2 | - | - | -1 | - | 1 | ||||||||||||
Foreign government bonds | 113 | - | 4 | -3 | -17 | 97 | ||||||||||||
RMBS | 119 | -3 | 7 | 35 | - | 158 | ||||||||||||
CMBS | 109 | -62 | 62 | -78 | 3 | 34 | ||||||||||||
CLOs | 172 | 19 | -17 | -72 | - | 102 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 119 | -1 | -6 | -9 | -3 | 100 | ||||||||||||
Equity AFS securities | 92 | 8 | -12 | 1 | -33 | 56 | ||||||||||||
Trading securities | 76 | 1 | 3 | -8 | -4 | 68 | ||||||||||||
Derivative investments | 1,495 | 495 | 363 | 117 | - | 2,470 | ||||||||||||
Future contract benefits: (4) | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -497 | 5 | - | 93 | - | -399 | ||||||||||||
GLB reserves embedded derivatives | -408 | -1,809 | - | - | - | -2,217 | ||||||||||||
VIEs' liabilities – derivative instruments (5) | -209 | -82 | - | - | - | -291 | ||||||||||||
Other liabilities – credit default swaps (6) | -16 | -7 | - | 7 | - | -16 | ||||||||||||
Total, net | $ | 2,983 | $ | -1,434 | $ | 446 | $ | -56 | $ | 112 | $ | 2,051 | ||||||
Benefit plans' assets (7) | $ | 40 | $ | 2 | $ | -3 | $ | -39 | $ | - | $ | - | ||||||
-1 | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | |||||||||||||||||
-2 | Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. | |||||||||||||||||
-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 | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-5 | 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). | |||||||||||||||||
-6 | Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-7 | The expected return on plan assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
Schedule Of Investment Holdings Movements | ' | |||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 563 | $ | -51 | $ | -47 | $ | -50 | $ | -70 | $ | 345 | ||||||
U.S. government bonds | - | - | - | -1 | - | -1 | ||||||||||||
Foreign government bonds | 50 | - | -17 | - | - | 33 | ||||||||||||
RMBS | - | - | - | -2 | - | -2 | ||||||||||||
CMBS | - | - | - | -4 | -2 | -6 | ||||||||||||
CLOs | 74 | - | - | -24 | - | 50 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | - | -35 | - | - | - | -35 | ||||||||||||
Equity AFS securities | 78 | -5 | - | - | - | 73 | ||||||||||||
Trading securities | - | -3 | -1 | -2 | - | -6 | ||||||||||||
Derivative investments | 152 | -23 | -304 | - | - | -175 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -68 | - | - | 108 | - | 40 | ||||||||||||
Total, net | $ | 849 | $ | -117 | $ | -369 | $ | 25 | $ | -72 | $ | 316 | ||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 364 | $ | -30 | $ | -6 | $ | -55 | $ | -7 | $ | 266 | ||||||
Foreign government bonds | - | - | -5 | - | - | -5 | ||||||||||||
RMBS | - | - | -7 | -1 | - | -8 | ||||||||||||
CMBS | - | - | - | -12 | - | -12 | ||||||||||||
CLOs | 72 | - | - | -11 | - | 61 | ||||||||||||
State and municipal bonds | 32 | - | - | - | - | 32 | ||||||||||||
Equity AFS securities | 26 | - | - | - | - | 26 | ||||||||||||
Trading securities | - | - | - | -2 | - | -2 | ||||||||||||
Derivative investments | 454 | -28 | -238 | - | - | 188 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -99 | - | - | -98 | - | -197 | ||||||||||||
Total, net | $ | 849 | $ | -58 | $ | -256 | $ | -179 | $ | -7 | $ | 349 | ||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Issuances | Sales | Maturities | Settlements | Calls | Total | |||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 237 | $ | -216 | $ | -16 | $ | -54 | $ | -89 | $ | -138 | ||||||
U.S. government bonds | - | - | - | -1 | - | -1 | ||||||||||||
Foreign government bonds | - | -2 | - | - | -1 | -3 | ||||||||||||
RMBS | 51 | -1 | - | -15 | - | 35 | ||||||||||||
CMBS | - | -53 | - | -24 | -1 | -78 | ||||||||||||
CLOs | - | -33 | - | -39 | - | -72 | ||||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 9 | -18 | - | - | - | -9 | ||||||||||||
Equity AFS securities | 19 | -18 | - | - | - | 1 | ||||||||||||
Trading securities | - | -3 | - | -5 | - | -8 | ||||||||||||
Derivative investments | 396 | -2 | -277 | - | - | 117 | ||||||||||||
Future contract benefits – indexed annuity | ||||||||||||||||||
and universal life contracts embedded | ||||||||||||||||||
derivatives | -59 | - | - | 152 | - | 93 | ||||||||||||
Other liabilities – credit default swaps | - | 7 | - | - | - | 7 | ||||||||||||
Total, net | $ | 653 | $ | -339 | $ | -293 | $ | 14 | $ | -91 | $ | -56 | ||||||
Benefit plans' assets | $ | - | $ | -22 | $ | -17 | $ | - | $ | - | $ | -39 | ||||||
Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held | ' | |||||||||||||||||
For the Years Ended December 31, | ||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||
Investments: (1) | ||||||||||||||||||
Derivative investments | $ | -752 | $ | 823 | $ | 472 | ||||||||||||
Future contract benefits: (1) | ||||||||||||||||||
Indexed annuity and universal life contracts | ||||||||||||||||||
embedded derivatives | -44 | -10 | -1 | |||||||||||||||
GLB reserves embedded derivatives | 2,444 | 1,472 | -1,615 | |||||||||||||||
VIEs' liabilities – derivative instruments (1) | 101 | 163 | -82 | |||||||||||||||
Other liabilities – credit default swaps (2) | 9 | 6 | -8 | |||||||||||||||
Total, net | $ | 1,758 | $ | 2,454 | $ | -1,234 | ||||||||||||
-1 | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
-2 | Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||||||||||||||
Components Of The Transfers In And Out Of Level 3 | ' | |||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 373 | $ | -493 | $ | -120 | ||||||||||||
CMBS | - | -8 | -8 | |||||||||||||||
CLOs | - | -28 | -28 | |||||||||||||||
Hybrid and redeemable preferred securities | 20 | -50 | -30 | |||||||||||||||
Trading securities | 8 | -2 | 6 | |||||||||||||||
Total, net | $ | 401 | $ | -581 | $ | -180 | ||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 35 | $ | -691 | $ | -656 | ||||||||||||
Foreign government bonds | - | -46 | -46 | |||||||||||||||
RMBS | - | -147 | -147 | |||||||||||||||
CMBS | 5 | -7 | -2 | |||||||||||||||
CLOs | 6 | -21 | -15 | |||||||||||||||
Hybrid and redeemable preferred securities | 35 | -40 | -5 | |||||||||||||||
Trading securities | 2 | -19 | -17 | |||||||||||||||
Total, net | $ | 83 | $ | -971 | $ | -888 | ||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Transfers | Transfers | |||||||||||||||||
In to | Out of | |||||||||||||||||
Level 3 | Level 3 | Total | ||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity AFS securities: | ||||||||||||||||||
Corporate bonds | $ | 249 | $ | -83 | $ | 166 | ||||||||||||
Foreign government bonds | - | -17 | -17 | |||||||||||||||
CMBS | 4 | -1 | 3 | |||||||||||||||
Hybrid and redeemable preferred securities | 18 | -21 | -3 | |||||||||||||||
Equity AFS securities | 2 | -35 | -33 | |||||||||||||||
Trading securities | 1 | -5 | -4 | |||||||||||||||
Total, net | $ | 274 | $ | -162 | $ | 112 | ||||||||||||
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 | $ | 1,082 | Discounted cash flow | Liquidity/duration adjustment (1) | 0.8 | % | - | 10.6 | % | |||||||||
Foreign government bonds | 79 | Discounted cash flow | Liquidity/duration adjustment (1) | 2.3 | % | - | 3.9 | % | ||||||||||
Hybrid and redeemable | ||||||||||||||||||
preferred securities | 20 | Discounted cash flow | Liquidity/duration adjustment (1) | 2.4 | % | |||||||||||||
Equity AFS and trading | ||||||||||||||||||
securities | 28 | Discounted cash flow | Liquidity/duration adjustment (1) | 4.3 | % | - | 5.9 | % | ||||||||||
Liabilities | ||||||||||||||||||
Future contract benefits: | ||||||||||||||||||
Indexed annuity and universal life | ||||||||||||||||||
contracts embedded derivatives | -1,048 | Discounted cash flow | Lapse rate (2) | 1 | % | - | 15 | % | ||||||||||
Mortality rate (3) | -8 | |||||||||||||||||
GLB reserves embedded | ||||||||||||||||||
derivatives | 1,244 | Discounted cash flow | Long-term lapse rate (2) | 1 | % | - | 27 | % | ||||||||||
Utilization of guaranteed withdrawal (4) | 90 | % | - | 100 | % | |||||||||||||
Claims utilization factor (5) | 60 | % | - | 100 | % | |||||||||||||
Premiums utilization factor (5) | 77 | % | - | 132 | % | |||||||||||||
NPR (6) | 0 | % | - | 0.53 | % | |||||||||||||
Mortality rate (3) | -9 | |||||||||||||||||
Volatility (7) | 1 | % | - | 28 | % | |||||||||||||
-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 universal life contracts represents the lapse rates during the surrender charge period. | |||||||||||||||||
-3 | 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. | |||||||||||||||||
-4 | The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature. | |||||||||||||||||
-5 | 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. | |||||||||||||||||
-6 | The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. | |||||||||||||||||
-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 | Based on the “Annuity 2000 Mortality Table” developed by the Society of Actuaries Committee on Life Insurance Research that was adopted by the National Association of Insurance Commissioners in 1996 for our mortality input. | |||||||||||||||||
-9 | The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors. | |||||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Reconciliation Of Revenue From Segments To Consolidated | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
Operating revenues: | ||||||||||
Annuities | $ | 3,321 | $ | 2,975 | $ | 2,871 | ||||
Retirement Plan Services | 1,071 | 1,024 | 1,017 | |||||||
Life Insurance | 5,170 | 5,056 | 4,740 | |||||||
Group Protection | 2,260 | 2,091 | 1,938 | |||||||
Other Operations | 417 | 423 | 461 | |||||||
Excluded realized gain (loss), pre-tax | -274 | -39 | -388 | |||||||
Amortization of deferred gain arising from reserve changes on business | ||||||||||
sold through reinsurance, pre-tax | 3 | 4 | 2 | |||||||
Amortization of DFEL associated with benefit ratio unlocking, pre-tax | 1 | 1 | - | |||||||
Total revenues | $ | 11,969 | $ | 11,535 | $ | 10,641 | ||||
Reconciliation Of Income (Loss) From Operations By Segments To Consolidated Net Income (Loss) | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net Income (Loss) | ||||||||||
Income (loss) from operations: | ||||||||||
Annuities | $ | 750 | $ | 595 | $ | 573 | ||||
Retirement Plan Services | 141 | 130 | 163 | |||||||
Life Insurance | 544 | 574 | 559 | |||||||
Group Protection | 71 | 72 | 97 | |||||||
Other Operations | -122 | -87 | -146 | |||||||
Excluded realized gain (loss), after-tax | -178 | -25 | -252 | |||||||
Gain (loss) on early extinguishment of debt, after-tax | - | -3 | -5 | |||||||
Income (loss) from reserve changes (net of related | ||||||||||
amortization) on business sold through reinsurance, after-tax | 2 | 3 | 2 | |||||||
Impairment of intangibles, after-tax | - | 2 | -747 | |||||||
Benefit ratio unlocking, after-tax | 36 | 25 | -15 | |||||||
Income (loss) from continuing operations, after-tax | 1,244 | 1,286 | 229 | |||||||
Income (loss) from discontinued operations, after-tax | - | 27 | -8 | |||||||
Net income (loss) | $ | 1,244 | $ | 1,313 | $ | 221 | ||||
Reconciliation of Net Investment Income From Segments to Consolidated | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net Investment Income | ||||||||||
Annuities | $ | 1,044 | $ | 1,082 | $ | 1,106 | ||||
Retirement Plan Services | 827 | 799 | 792 | |||||||
Life Insurance | 2,452 | 2,396 | 2,294 | |||||||
Group Protection | 165 | 162 | 152 | |||||||
Other Operations | 266 | 259 | 308 | |||||||
Total net investment income | $ | 4,754 | $ | 4,698 | $ | 4,652 | ||||
Reconciliation of DAC VOBA Amortization From Segments to Consolidated | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Amortization of DAC and VOBA, Net of Interest | ||||||||||
Annuities | $ | 383 | $ | 321 | $ | 351 | ||||
Retirement Plan Services | 48 | 42 | 33 | |||||||
Life Insurance | 447 | 614 | 423 | |||||||
Group Protection | 53 | 49 | 39 | |||||||
Total amortization of DAC and VOBA, net of interest | $ | 931 | $ | 1,026 | $ | 846 | ||||
Reconciliation of federal income tax expense (benefit) from segments to consolidated | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Federal Income Tax Expense (Benefit) | ||||||||||
Annuities | $ | 177 | $ | 121 | $ | 104 | ||||
Retirement Plan Services | 49 | 38 | 63 | |||||||
Life Insurance | 268 | 264 | 276 | |||||||
Group Protection | 38 | 39 | 52 | |||||||
Other Operations | -71 | -177 | -77 | |||||||
Excluded realized gain (loss) | -95 | -14 | -136 | |||||||
Gain (loss) on early extinguishment of debt | - | -2 | -3 | |||||||
Reserve changes (net of related amortization) | ||||||||||
on business sold through reinsurance | 1 | 1 | 1 | |||||||
Impairment of intangibles | - | -2 | - | |||||||
Benefit ratio unlocking | 20 | 14 | -6 | |||||||
Total federal income tax expense (benefit) | $ | 387 | $ | 282 | $ | 274 | ||||
Reconciliation of assets from segments to consolidated | ' | |||||||||
As of December 31, | ||||||||||
2013 | 2012 | |||||||||
Assets | ||||||||||
Annuities | $ | 120,267 | $ | 106,906 | ||||||
Retirement Plan Services | 32,369 | 30,651 | ||||||||
Life Insurance | 65,639 | 64,115 | ||||||||
Group Protection | 3,865 | 3,733 | ||||||||
Other Operations | 14,805 | 13,464 | ||||||||
Total assets | $ | 236,945 | $ | 218,869 | ||||||
Supplemental_Disclosures_of_Ca1
Supplemental Disclosures of Cash Flow (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Notes to Financial Statements [Abstract] | ' | |||||||||
Summary of supplemental cash flow data | ' | |||||||||
For the Years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Interest paid | $ | 260 | $ | 270 | $ | 287 | ||||
Income taxes paid (received) | 10 | 124 | -36 | |||||||
Significant non-cash investing and financing transactions: | ||||||||||
Value of stock received from stock options exercised | ||||||||||
through stock swap transactions | $ | 5 | $ | - | $ | - | ||||
Business dispositions: | ||||||||||
Liabilities disposed | $ | - | $ | - | $ | -3 | ||||
Cash received (paid) | - | -1 | - | |||||||
Gain (loss) on dispositions | $ | - | $ | -1 | $ | -3 | ||||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Notes to Financial Statements [Abstract] | ' | ||||||||||||||
Unaudited quarterly results of operations | ' | ||||||||||||||
For the Three Months Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||
2013 | |||||||||||||||
Total revenues | $ | 2,839 | $ | 2,999 | $ | 3,009 | $ | 3,122 | |||||||
Total expenses | 2,534 | 2,581 | 2,567 | 2,656 | |||||||||||
Net income (loss) | 239 | 317 | 337 | 351 | |||||||||||
Earnings (loss) per common share – basic: | |||||||||||||||
Net income (loss) | 0.89 | 1.19 | 1.28 | 1.34 | |||||||||||
Earnings (loss) per common share – diluted: | |||||||||||||||
Net income (loss) | 0.86 | 1.15 | 1.23 | 1.29 | |||||||||||
2012 | |||||||||||||||
Total revenues | $ | 2,710 | $ | 2,898 | $ | 2,954 | $ | 2,973 | |||||||
Total expenses | 2,402 | 2,456 | 2,536 | 2,573 | |||||||||||
Income (loss) from continuing operations | 244 | 322 | 400 | 320 | |||||||||||
Income (loss) from discontinued operations, | |||||||||||||||
net of federal income taxes | -1 | - | 28 | - | |||||||||||
Net income (loss) | 243 | 322 | 428 | 320 | |||||||||||
Earnings (loss) per common share – basic: | |||||||||||||||
Income (loss) from continuing operations | 0.84 | 1.14 | 1.44 | 1.17 | |||||||||||
Income (loss) from discontinued operations | - | - | 0.10 | - | |||||||||||
Net income (loss) | 0.84 | 1.14 | 1.54 | 1.17 | |||||||||||
Earnings (loss) per common share – diluted: | |||||||||||||||
Income (loss) from continuing operations | 0.82 | 1.09 | 1.41 | 1.14 | |||||||||||
Income (loss) from discontinued operations | - | - | 0.10 | - | |||||||||||
Net income (loss) | 0.82 | 1.09 | 1.51 | 1.14 | |||||||||||
Nature_of_Operations_Basis_of_1
Nature of Operations, Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | |||
Schedule To Financial Statements [Abstract] | ' | ' | ' |
Grace Period Expiration (In Days) | '10 days | ' | ' |
Loans Reported As Delinquent In Days | '60 days | ' | ' |
Period In Which Loans No Longer Accrue Interest In Days | '90 days | ' | ' |
Estimated Contract Life UL Policies (In Years) | '40 years | ' | ' |
Estimated Contract Life VUL Policies (In Years) | '40 years | ' | ' |
Estimated Contract Life Fixed Deferred Annuities (In Years) | '13 years | ' | ' |
Estimated Contract Life Variable Deferred Annuities (In Years) | '30 years | ' | ' |
Front End Load Annuity Products Assumed Life (In Years) | '25 years | ' | ' |
Useful life of sales force intangible assets (in years) | '25 years | ' | ' |
Number Of Scenarios Used Per Policy To Value A Block Of Guarantees | 100 | ' | ' |
Total Scenarios To Value GLB liability | 43,000,000 | ' | ' |
Investment yield assumptions for traditional direct individual life reserves, low end | 2.25% | ' | ' |
Investment yield assumptions for traditional direct individual life reserves, high end | 7.75% | ' | ' |
Investment yield assumptions for immediate and deferred paid-up annuities, low end | 1.50% | ' | ' |
Investment yield assumptions for immediate and deferred paid-up annuities, high end | 13.50% | ' | ' |
Traditional Contract Acquisition Cost Amortization Period Low End (in years) | '7 years | ' | ' |
Traditional Contract Acquisition Cost Amortization Period High End (in years) | '77 years | ' | ' |
Interest crediting rate, low end | 1.00% | 1.00% | 1.00% |
Interest crediting rate, high end | 10.00% | 10.00% | 10.00% |
Participating policies as a percentage of the face amount of insurance in force | 1.00% | 1.00% | ' |
Dividend expenses | $62 | $71 | $79 |
No. of years in which deferred gain from reinsurance transaction is recognized as income | '15 years | ' | ' |
Dispositions_Narrative_Details
Dispositions (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Notes to Financial Statements [Abstract] | ' |
Purchase price adjustment | $50 |
Dispositions_Details
Dispositions (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ' | ' | ' | ' | ' |
Gain (loss) on disposal, before federal income taxes | ' | ' | ' | ($1) | ($3) |
Federal income tax expense (benefit) | ' | ' | ' | -28 | 5 |
Gain (loss) on disposal | ' | ' | ' | 27 | -8 |
Income (loss) from discontinued operations | $28 | ($1) | ' | $27 | ($8) |
Variable_Interest_Entities_VIE2
Variable Interest Entities ("VIE's") (Narrative) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Variable Interest Entities [Abstract] | ' | ' | ' | ' |
Note Issued By A Statutory Trust In A Private Placement Offering | ' | ' | $100 | ' |
Long Term Senior Note Issued In Exchange For Corporate Bond AFS Security | ' | ' | ' | 500 |
Maximum exposure to loss related to unconsolidated VIE's | $77 | $92 | ' | ' |
Variable_Interest_Entities_VIE3
Variable Interest Entities ("VIE's") (CLN Structures Summary Information ) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
item | |
Credit Linked Note Structure December 2006 [Member] | ' |
Credit Linked Notes Structures Summary Information [Line Items] | ' |
Amount of Issuance | $400 |
Date of Issuance | 'December 2006 |
Original attachment point (subordination) | 5.50% |
Current attachment point (subordination) | 4.17% |
Maturity | 20-Dec-16 |
Current rating of tranche | 'BB+ |
Current rating of underlying collateral pool, high end of range | 'Aa1 |
Current rating of underlying collateral pool, low end of range | 'B1 |
Number of defaults in underlying collateral pool | 2 |
Number of entities | 124 |
Number of countries | 20 |
Credit Linked Note Structure April 2007 [Member] | ' |
Credit Linked Notes Structures Summary Information [Line Items] | ' |
Amount of Issuance | $200 |
Date of Issuance | 'April 2007 |
Original attachment point (subordination) | 2.05% |
Current attachment point (subordination) | 1.48% |
Maturity | 20-Mar-17 |
Current rating of tranche | 'Ba2 |
Current rating of underlying collateral pool, high end of range | 'Aaa |
Current rating of underlying collateral pool, low end of range | 'Caa2 |
Number of defaults in underlying collateral pool | 2 |
Number of entities | 99 |
Number of countries | 21 |
Variable_Interest_Entities_VIE4
Variable Interest Entities ("VIE's") (CLN Structures' Underlying Collateral By Industry And Rating) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 100.00% |
AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.60% |
AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 13.50% |
A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 40.10% |
BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 36.50% |
BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 8.30% |
B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.70% |
CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.30% |
Financial Intermediaries [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 10.50% |
Financial Intermediaries [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.10% |
Financial Intermediaries [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 6.70% |
Financial Intermediaries [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.70% |
Financial Intermediaries [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Financial Intermediaries [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 11.00% |
Telecommunications [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 4.00% |
Telecommunications [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 5.50% |
Telecommunications [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.50% |
Telecommunications [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Telecommunications [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Oil And Gas [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 8.00% |
Oil And Gas [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.30% |
Oil And Gas [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.10% |
Oil And Gas [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.00% |
Oil And Gas [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 4.60% |
Oil And Gas [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Oil And Gas [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Oil And Gas [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 4.50% |
Utilities [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.60% |
Utilities [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.90% |
Utilities [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Utilities [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.80% |
Chemicals And Plastics [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.30% |
Chemicals And Plastics [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.20% |
Chemicals And Plastics [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.30% |
Chemicals And Plastics [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Chemicals And Plastics [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.70% |
Drugs [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.30% |
Drugs [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.20% |
Drugs [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.20% |
Drugs [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Drugs [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.50% |
Retailers (Except Food And Drug) [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.10% |
Retailers (Except Food And Drug) [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.90% |
Retailers (Except Food And Drug) [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.50% |
Retailers (Except Food And Drug) [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Retailers (Except Food And Drug) [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.30% |
Industrial Equipment [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.60% |
Industrial Equipment [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.70% |
Industrial Equipment [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Industrial Equipment [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.20% |
Sovereign [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.70% |
Sovereign [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.20% |
Sovereign [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.30% |
Sovereign [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Sovereign [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.20% |
Conglomerates [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 2.30% |
Conglomerates [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.90% |
Conglomerates [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Conglomerates [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 3.00% |
Forest Products [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.60% |
Forest Products [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 1.40% |
Forest Products [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Forest Products [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Other [Member] | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 42.30% |
Other [Member] | AAA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.00% |
Other [Member] | AA | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 4.10% |
Other [Member] | A | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 15.50% |
Other [Member] | BBB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 17.10% |
Other [Member] | BB | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 4.60% |
Other [Member] | B | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.70% |
Other [Member] | CCC | ' |
Credit Linked Notes By Industry And Ratings [Line Items] | ' |
Credit linked note by industry percentage | 0.30% |
Variable_Interest_Entities_VIE5
Variable Interest Entities ("VIE's") (Consolidated Variable Interest Entity Asset and Liability Information) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | item | item | ||
Assets | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | 1 | [1] | 1 | [1] |
Notional Amounts | $361 | [1] | $100 | [1] |
Carrying Value | 697 | [1] | 708 | [1] |
Assets | Fixed maturity corporate asset-backed credit card loan securities | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | ' | ' | ||
Notional Amounts | ' | ' | ||
Carrying Value | 595 | 598 | ||
Assets | U.S. government bonds [Member] | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | ' | ' | ||
Notional Amounts | ' | ' | ||
Carrying Value | 102 | 110 | ||
Assets | Excess mortality swap [Member] | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | ' | 1 | ||
Notional Amounts | ' | 100 | ||
Carrying Value | ' | ' | ||
Assets | Total Return Swap [Member] | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | 1 | ' | ||
Notional Amounts | 361 | ' | ||
Liabilities | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | 4 | [2] | 4 | [2] |
Notional Amounts | 600 | [2] | 600 | [2] |
Carrying Value | 27 | [2] | 128 | [2] |
Liabilities | Credit default swaps [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | 2 | 2 | ||
Notional Amounts | 600 | 600 | ||
Carrying Value | 27 | 128 | ||
Liabilities | Contingent forwards | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Disclosure Of Variable Interest Entities Assets And Liabilities [Line Items] | ' | ' | ||
Number of Instruments | 2 | 2 | ||
Notional Amounts | ' | ' | ||
Carrying Value | ' | ' | ||
[1] | Reported in variable interest entitiesb fixed maturity securities on our Consolidated Balance Sheets. | |||
[2] | Reported in variable interest entitiesb liabilities on our Consolidated Balance Sheets. |
Variable_Interest_Entities_VIE6
Variable Interest Entities ("VIE's") (Consolidated Variable Interest Entity Settlement Payments and Mark-to-Market Adjustments) (Details) (Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | ' | ' | ||
Gains (losses) for consolidated variable interest entities | $101 | [1] | $163 | [1] |
Credit default swaps [Member] | ' | ' | ||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | ' | ' | ||
Gains (losses) for consolidated variable interest entities | 101 | 166 | ||
Contingent forwards | ' | ' | ||
Consolidated Variable Interest Entity Settlement Payments And Mark To Market Adjustments [Line Items] | ' | ' | ||
Gains (losses) for consolidated variable interest entities | ' | ($3) | ||
[1] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | ||
Total OTTI for AFS securities backed by pools of residential and commercial mortgages | $21 | $103 | ' |
OTTI for AFS securities backed by pools of residential and commercial mortgages recognized in OCI | -46 | -45 | ' |
OTTI for AFS securities backed by pools of residential and commercial mortgages recognized in net income (loss) | 67 | 148 | ' |
Increase in gross AFS securities unrealized losses | 894 | ' | ' |
Trading Securities, Unrealized Holding Loss | -172 | 53 | 118 |
Number of partnerships in alternative investment portfolio | 121 | 98 | ' |
Investment commitments | 868 | ' | ' |
Investment commitments for limited partnerships | 411 | ' | ' |
Investment commitments for private placements | 372 | ' | ' |
Investment commitments for mortgage loans on real estate | 85 | ' | ' |
Mortgage loans on real estate [Member] | ' | ' | ' |
Largest mortgage loan concentration in geographic region | 32.00% | 32.00% | ' |
Federal Home Loan Mortgage Corporation | ' | ' | ' |
Fair value | 2,600 | 3,800 | ' |
Concentration risk, percentage | 3.00% | 4.00% | ' |
Fannie Mae | ' | ' | ' |
Fair value | 1,700 | 2,200 | ' |
Concentration risk, percentage | 2.00% | 2.00% | ' |
Electric Industry [Member] | ' | ' | ' |
Fair value | 8,700 | 8,700 | ' |
Concentration risk, percentage | 9.00% | 9.00% | ' |
Banking Industry [Member] | ' | ' | ' |
Fair value | 5,000 | 5,000 | ' |
Concentration risk, percentage | 5.00% | 5.00% | ' |
Corporate bonds [Member] | ' | ' | ' |
Percentage of fair value rated as investment grade | 96.00% | 96.00% | ' |
Amortized cost of portfolio rated below investment grade | 3,000 | 3,000 | ' |
Fair value of portfolio rated below investment grade | 2,900 | 2,900 | ' |
CLOs [Member] | ' | ' | ' |
Percentage of fair value rated as investment grade | 94.00% | 93.00% | ' |
Amortized cost of portfolio rated below investment grade | 16 | 21 | ' |
Fair value of portfolio rated below investment grade | $13 | ' | ' |
Mortgage-backed securities [Member] | ' | ' | ' |
Projected default rate on existing delinquencies on MBS (low end of range) | 10.00% | 10.00% | ' |
Projected default rate on existing delinquencies on MBS (high end of range) | 100.00% | 100.00% | ' |
Severity of second lien loans | 100.00% | ' | ' |
Severity of first lien loans | 30.00% | ' | ' |
Investments_Reconciliation_Of_
Investments (Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | $77,217 | $73,532 |
Gross Unrealized Gains | 5,168 | 9,884 |
Gross Unrealized Losses | 1,265 | 320 |
Gross Unrealized OTTI | 144 | 195 |
Fair Value | 80,976 | 82,901 |
Equity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 182 | 137 |
Gross Unrealized Gains | 19 | 22 |
Gross Unrealized Losses | ' | 2 |
Fair Value | 201 | 157 |
Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 77,035 | 73,395 |
Gross Unrealized Gains | 5,149 | 9,862 |
Gross Unrealized Losses | 1,265 | 318 |
Gross Unrealized OTTI | 144 | 195 |
Fair Value | 80,775 | 82,744 |
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 65,808 | 60,124 |
Gross Unrealized Gains | 4,374 | 8,219 |
Gross Unrealized Losses | 1,157 | 219 |
Gross Unrealized OTTI | 90 | 108 |
Fair Value | 68,935 | 68,016 |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 355 | 383 |
Gross Unrealized Gains | 26 | 59 |
Gross Unrealized Losses | 14 | ' |
Fair Value | 367 | 442 |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 505 | 562 |
Gross Unrealized Gains | 45 | 92 |
Gross Unrealized Losses | 1 | ' |
Fair Value | 549 | 654 |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 4,135 | 5,763 |
Gross Unrealized Gains | 256 | 471 |
Gross Unrealized Losses | 10 | 3 |
Gross Unrealized OTTI | 31 | 60 |
Fair Value | 4,350 | 6,171 |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 713 | 970 |
Gross Unrealized Gains | 36 | 68 |
Gross Unrealized Losses | 4 | 16 |
Gross Unrealized OTTI | 17 | 19 |
Fair Value | 728 | 1,003 |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 232 | 189 |
Gross Unrealized Gains | ' | 2 |
Gross Unrealized Losses | 1 | 3 |
Gross Unrealized OTTI | 6 | 8 |
Fair Value | 225 | 180 |
State, municipalities and political subdivisions [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 3,638 | 3,546 |
Gross Unrealized Gains | 308 | 814 |
Gross Unrealized Losses | 27 | 7 |
Fair Value | 3,919 | 4,353 |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 967 | 1,181 |
Gross Unrealized Gains | 89 | 106 |
Gross Unrealized Losses | 51 | 70 |
Fair Value | 1,005 | 1,217 |
VIEs' fixed maturity securities [Member] | Fixed maturity securities [Member] | ' | ' |
Amortized cost, gross unrealized gains, losses, OTTI and fair value of AFS securities | ' | ' |
Amortized cost | 682 | 677 |
Gross Unrealized Gains | 15 | 31 |
Fair Value | $697 | $708 |
Investments_AvailableForSale_S
Investments (Available-For-Sale Securities By Contractual Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Due in one year or less | $2,599 | ' |
Due after one year through five years | 14,301 | ' |
Due after five years through ten years | 24,680 | ' |
Due after ten years | 30,375 | ' |
Amortized cost | 77,217 | 73,532 |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Due in one year or less | 2,670 | ' |
Due after one year through five years | 15,461 | ' |
Due after five years through ten years | 25,621 | ' |
Due after ten years | 31,720 | ' |
Fair Value | 80,976 | 82,901 |
Fixed Maturity AFS Securities Excluding MBS and CDOs [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Amortized cost | 71,955 | ' |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Fair Value | 75,472 | ' |
Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Amortized cost | 77,035 | 73,395 |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Fair Value | 80,775 | 82,744 |
Equity securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Amortized cost | 182 | 137 |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Fair Value | 201 | 157 |
Mortgage-backed securities [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Amortized cost | 4,848 | ' |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Fair Value | 5,078 | ' |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost | ' | ' |
Amortized cost | 232 | 189 |
Available-for-sale Securities, Debt Maturities, Fair Value | ' | ' |
Fair Value | $225 | $180 |
Investments_Fair_Value_And_Gro
Investments (Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | security | security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | $18,322 | $3,343 |
Greater Than Twelve Months | 1,839 | 1,616 |
Continuous Unrealized Loss Position, Total | 20,161 | 4,959 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 1,085 | 214 |
Greater Than Twelve Months | 324 | 301 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1,409 | 515 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1,484 | 626 |
Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 18,322 | 3,336 |
Greater Than Twelve Months | 1,839 | 1,616 |
Continuous Unrealized Loss Position, Total | 20,161 | 4,952 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 1,085 | 212 |
Greater Than Twelve Months | 324 | 301 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1,409 | 513 |
Equity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | ' | 7 |
Continuous Unrealized Loss Position, Total | ' | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | ' | 2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | ' | 2 |
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 16,918 | 2,853 |
Greater Than Twelve Months | 1,258 | 934 |
Continuous Unrealized Loss Position, Total | 18,176 | 3,787 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 1,018 | 145 |
Greater Than Twelve Months | 229 | 182 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1,247 | 327 |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 163 | ' |
Continuous Unrealized Loss Position, Total | 163 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 14 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 14 | ' |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 69 | ' |
Continuous Unrealized Loss Position, Total | 69 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 1 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 1 | ' |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 488 | 272 |
Greater Than Twelve Months | 267 | 199 |
Continuous Unrealized Loss Position, Total | 755 | 471 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 17 | 39 |
Greater Than Twelve Months | 24 | 24 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 41 | 63 |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 109 | 66 |
Greater Than Twelve Months | 43 | 113 |
Continuous Unrealized Loss Position, Total | 152 | 179 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 7 | 16 |
Greater Than Twelve Months | 14 | 19 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 21 | 35 |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 136 | 10 |
Greater Than Twelve Months | 50 | 53 |
Continuous Unrealized Loss Position, Total | 186 | 63 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 2 | 8 |
Greater Than Twelve Months | 5 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 7 | 11 |
State, municipalities and political subdivisions [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 377 | 64 |
Greater Than Twelve Months | 24 | 24 |
Continuous Unrealized Loss Position, Total | 401 | 88 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 20 | 1 |
Greater Than Twelve Months | 7 | 6 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | 27 | 7 |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | ' | ' |
Less Than or Equal to Twelve Months | 62 | 71 |
Greater Than Twelve Months | 197 | 293 |
Continuous Unrealized Loss Position, Total | 259 | 364 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Gross Unrealized Losses and OTTI | ' | ' |
Less Than or Equal to Twelve Months | 6 | 3 |
Greater Than Twelve Months | 45 | 67 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Losses | $51 | $70 |
Investments_Select_Information
Investments (Select Information For Securities In A Gross Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | $77,217 | $73,532 |
Fair Value | 80,976 | 82,901 |
Gross Unrealized Losses | 1,265 | 320 |
Total AFS securities backed by pools of residential mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 1,261 | 1,181 |
Fair Value | 1,146 | 980 |
Gross Unrealized Losses | 115 | 201 |
Total AFS securities backed by pools of commercial mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 193 | 236 |
Fair Value | 169 | 192 |
Gross Unrealized Losses | 24 | 44 |
Total AFS securities backed by pools of residential and commercial mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 1,454 | 1,417 |
Fair Value | 1,315 | 1,172 |
Gross Unrealized Losses | 139 | 245 |
AFS securities subject to detailed analysis backed by pools of residential mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 933 | 1,173 |
Fair Value | 833 | 972 |
Gross Unrealized Losses | 100 | 201 |
AFS securities subject to detailed analysis backed by pools of commercial mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 29 | 56 |
Fair Value | 24 | 40 |
Gross Unrealized Losses | 5 | 16 |
AFS securities subject to detailed analysis backed by pools of residential and commercial mortgages | ' | ' |
Schedule Of Available For Sale Securities Residential And Commercial Mortgage At Risk [Line Items] | ' | ' |
Amortized cost | 962 | 1,229 |
Fair Value | 857 | 1,012 |
Gross Unrealized Losses | $105 | $217 |
Investments_Schedule_Of_Availa
Investments (Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
security | security | |||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | $80,976 | $82,901 | ||
Gross Unrealized Losses | 1,265 | 320 | ||
Continuous Unrealized Loss Position, Total | 20,161 | 4,959 | ||
Fair Value Decline, Greater Than 20% [Member] | ' | ' | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | 416 | 444 | ||
Gross Unrealized Losses | 115 | 198 | ||
Gross Unrealized OTTI | 81 | 129 | ||
Number of Securities | 101 | [1] | 148 | [1] |
Fair Value Decline, Greater Than 20% [Member] | Less than six months | ' | ' | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | 1 | 34 | ||
Gross Unrealized Losses | 1 | 9 | ||
Gross Unrealized OTTI | ' | 1 | ||
Number of Securities | 4 | [1] | 14 | [1] |
Fair Value Decline, Greater Than 20% [Member] | Six months or greater, but less than nine months | ' | ' | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | 7 | ' | ||
Gross Unrealized Losses | 3 | ' | ||
Number of Securities | 1 | [1] | ' | |
Fair Value Decline, Greater Than 20% [Member] | Nine months or greater, but less than twelve months | ' | ' | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | 59 | 15 | ||
Gross Unrealized Losses | 19 | 10 | ||
Number of Securities | 4 | [1] | 3 | [1] |
Fair Value Decline, Greater Than 20% [Member] | Twelve months or greater | ' | ' | ||
Available For Sale Securities In Unrealized Loss Position With Loss Severity Greater Than 20 Percent [Line Items] | ' | ' | ||
Fair Value | 349 | 395 | ||
Gross Unrealized Losses | 92 | 179 | ||
Gross Unrealized OTTI | $81 | $128 | ||
Number of Securities | 92 | [1] | 131 | [1] |
[1] | We may reflect a security in more than one aging category based on various purchase dates. |
Investments_Schedule_Of_Change
Investments (Schedule Of Changes in Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investments [Abstract] | ' | ' | ' |
Balance as of beginning of period | $424 | $390 | $319 |
Increases attributable to: | ' | ' | ' |
Credit losses on securities for which an OTTI was not previously recognized | 39 | 108 | 55 |
Credit losses on securities for which an OTTI was previously recognized | 43 | 62 | 71 |
Decreases attributable to: | ' | ' | ' |
Securities sold | -102 | -136 | -55 |
Balance as of end of period | $404 | $424 | $390 |
Investments_Schedule_of_Detail
Investments (Schedule of Details Of The Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | ' | ' |
Amortized Cost | $850 | $976 | ' | ' |
Gross Unrealized Gains | 40 | 27 | ' | ' |
Gross Unrealized Losses and OTTI | 79 | 154 | ' | ' |
Fair Value | 811 | 849 | ' | ' |
OTTI in Credit Losses | 404 | 424 | 390 | 319 |
Corporate bonds [Member] | ' | ' | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | ' | ' |
Amortized Cost | 265 | 299 | ' | ' |
Gross Unrealized Gains | 18 | 4 | ' | ' |
Gross Unrealized Losses and OTTI | 49 | 98 | ' | ' |
Fair Value | 234 | 205 | ' | ' |
OTTI in Credit Losses | 133 | 104 | ' | ' |
RMBS [Member] | ' | ' | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | ' | ' |
Amortized Cost | 550 | 636 | ' | ' |
Gross Unrealized Gains | 18 | 22 | ' | ' |
Gross Unrealized Losses and OTTI | 18 | 40 | ' | ' |
Fair Value | 550 | 618 | ' | ' |
OTTI in Credit Losses | 184 | 227 | ' | ' |
CMBS [Member] | ' | ' | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' | ' | ' |
Amortized Cost | 35 | 41 | ' | ' |
Gross Unrealized Gains | 4 | 1 | ' | ' |
Gross Unrealized Losses and OTTI | 12 | 16 | ' | ' |
Fair Value | 27 | 26 | ' | ' |
OTTI in Credit Losses | $87 | $93 | ' | ' |
Investments_Fair_Value_of_Trad
Investments (Fair Value of Trading Securities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | $2,282 | $2,554 |
Equity securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | ' | 2 |
Fixed maturity securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 2,282 | 2,552 |
Fixed maturity securities [Member] | Corporate bonds [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 1,771 | 1,929 |
Fixed maturity securities [Member] | U.S. government bonds [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 272 | 310 |
Fixed maturity securities [Member] | Foreign government bonds [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 24 | 31 |
Fixed maturity securities [Member] | RMBS [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 155 | 192 |
Fixed maturity securities [Member] | CMBS [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 7 | 17 |
Fixed maturity securities [Member] | CLOs [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 2 | 4 |
Fixed maturity securities [Member] | State, municipalities and political subdivisions [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | 21 | 27 |
Fixed maturity securities [Member] | Hybrid and redeemable preferred securities [Member] | ' | ' |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ' | ' |
Trading Securities | $30 | $42 |
Investments_Composition_Of_Cur
Investments (Composition Of Current And Past Due Mortgage Loans On Real Estate) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Mortgage Loans On Real Estate Aging [Abstract] | ' | ' | ' |
Current | $7,200 | $7,011 | ' |
60 to 90 days past due | 4 | 8 | ' |
Greater than 90 days past due | 3 | 24 | ' |
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | -31 |
Unamortized premium (discount) | 6 | 7 | ' |
Total carrying value | $7,210 | $7,029 | ' |
Investments_Schedule_Of_Impair
Investments (Schedule Of Impaired Mortgage Loans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
item | item | ||
Information about impaired mortgage loans on real estate | ' | ' | ' |
Number of impaired mortgage loans on real estate | 3 | 10 | ' |
Principal balance of impaired mortgage loans on real estate | $27 | $75 | ' |
Valuation allowance associated with impaired mortgage loans on real estate | -3 | -21 | -31 |
Carrying value of impaired mortgage loans on real estate | 24 | 54 | ' |
Average carrying value for impaired loans on real estate | 34 | 51 | 57 |
Interest income recognized on impaired mortgage loans on real estate | 2 | 1 | 2 |
Interest income collected on impaired mortgage loans on real estate | $2 | $1 | $2 |
Investments_Changes_In_The_Val
Investments (Changes In The Valuation Allowance Of Impaired Mortgage Loans On Real Estate (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for Losses | ' | ' |
Balance as of beginning-of-year | $21 | $31 |
Additions | 3 | 14 |
Charge-offs, net of recoveries | -21 | -24 |
Balance as of end-of-year | $3 | $21 |
Investments_Credit_Quality_Ind
Investments (Credit Quality Indicators For Mortgage Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mortgage Loans Credit Quality [Line Items] | ' | ' |
Principal amount of mortgage loans on real estate | $7,207 | $7,043 |
Percentage of total mortgage loans on real estate | 100.00% | 100.00% |
Loan-to-value ratio, less than 65% [Member] | ' | ' |
Mortgage Loans Credit Quality [Line Items] | ' | ' |
Principal amount of mortgage loans on real estate | 6,026 | 5,677 |
Percentage of total mortgage loans on real estate | 83.60% | 80.60% |
Debt-service coverage ratio | 1.78 | 1.68 |
Loan-to-value ratio, 65% to 74% [Member] | ' | ' |
Mortgage Loans Credit Quality [Line Items] | ' | ' |
Principal amount of mortgage loans on real estate | 744 | 897 |
Percentage of total mortgage loans on real estate | 10.30% | 12.70% |
Debt-service coverage ratio | 1.42 | 1.39 |
Loan-to-value ratio, 75% to 100% [Member] | ' | ' |
Mortgage Loans Credit Quality [Line Items] | ' | ' |
Principal amount of mortgage loans on real estate | 402 | 386 |
Percentage of total mortgage loans on real estate | 5.60% | 5.50% |
Debt-service coverage ratio | 0.83 | 0.84 |
Loan-To-Value Ratio, Greater Than 100% [Member] | ' | ' |
Mortgage Loans Credit Quality [Line Items] | ' | ' |
Principal amount of mortgage loans on real estate | $35 | $83 |
Percentage of total mortgage loans on real estate | 0.50% | 1.20% |
Debt-service coverage ratio | 0.78 | 0.66 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | $4,876 | $4,801 | $4,763 |
Investment expense | -122 | -103 | -111 |
Total net investment income | 4,754 | 4,698 | 4,652 |
Fixed maturity securities [Member] | AFS Securities [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 3,976 | 3,910 | 3,842 |
Equity securities [Member] | AFS Securities [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 6 | 6 | 5 |
Trading securities [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 137 | 147 | 154 |
Mortgage loans on real estate [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 388 | 397 | 408 |
Real estate [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 13 | 16 | 22 |
Standby real estate equity commitments [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | ' | ' | 1 |
Policy loans [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 155 | 163 | 165 |
Cash and invested cash [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 3 | 4 | 4 |
Commercial mortgage loan prepayment and bond makewhole premiums [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 117 | 48 | 82 |
Alternative investments [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 86 | 125 | 90 |
Consent fees [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | 4 | 4 | 3 |
Other investments [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Investment income | -9 | -19 | -13 |
Parent Company [Member] | ' | ' | ' |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' |
Total net investment income | ' | $1 | $2 |
Investments_Realized_Gain_Loss
Investments (Realized Gain (Loss) Related To Certain Investments) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Realized gain (loss) related to certain investments | ' | ' | ' | |||
Gain (loss) on other investments | ($3) | $2 | ($9) | |||
Associated amortization expense of DAC, VOBA, DSI and DFEL and changes in other contract holder funds | -28 | 2 | -10 | |||
Total realized gain (loss) related to certain investments | -98 | [1] | -190 | [1] | -148 | [1] |
Fixed maturity securities [Member] | ' | ' | ' | |||
Realized gain (loss) related to certain investments | ' | ' | ' | |||
AFS securities. Gross gains | 21 | 16 | 86 | |||
AFS securities. Gross losses | -94 | -202 | -227 | |||
Equity securities [Member] | ' | ' | ' | |||
Realized gain (loss) related to certain investments | ' | ' | ' | |||
AFS securities. Gross gains | 8 | 1 | 12 | |||
AFS securities. Gross losses | ($2) | ($9) | ' | |||
[1] | See bRealized Gain (Loss) Related to Certain Investmentsb section in Note 5. |
Investments_OTTI_Recognized_In
Investments (OTTI Recognized In Net Income (Loss) And OCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | ($83) | ($183) | ($153) |
Associated amortization expense of DAC, VOBA, DSI and DFEL | 13 | 30 | 29 |
Net OTTI recognized in net income (loss), pre-tax | -70 | -153 | -124 |
Portion of OTTI Recognized in OCI | ' | ' | ' |
Gross OTTI recognized in OCI | 11 | 121 | 58 |
Change in DAC, VOBA, DSI and DFEL | -1 | -15 | -13 |
Net portion of OTTI recognized in OCI, pre-tax | 10 | 106 | 45 |
Equity securities [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -1 | -8 | ' |
Fixed maturity securities [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -82 | -175 | -153 |
Fixed maturity securities [Member] | Corporate bonds [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -35 | -65 | -14 |
Fixed maturity securities [Member] | RMBS [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -31 | -53 | -79 |
Fixed maturity securities [Member] | CMBS [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -15 | -55 | -57 |
Fixed maturity securities [Member] | CLOs [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | -1 | -2 | -1 |
Fixed maturity securities [Member] | Hybrid and redeemable preferred securities [Member] | ' | ' | ' |
OTTI Recognized in Net Income (Loss) | ' | ' | ' |
Gross OTTI recognized in net income (loss) | ' | ' | ($2) |
Investments_Payables_For_Colla
Investments (Payables For Collateral On Investments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | Parent Company [Member] | Parent Company [Member] | Minimum [Member] | Maximum [Member] | ||||
Carrying Value Of Payables For Collateral On Investments [Abstract] | ' | ' | ' | ' | ' | ' | ||
Collateral payable held for derivative investments | $638 | [1] | $2,567 | [1] | ' | ' | ' | ' |
Securities pledged under securities lending agreements | 184 | [2] | 197 | [2] | ' | ' | ' | ' |
Securities pledged under repurchase agreements | 530 | [3] | 280 | [3] | ' | ' | ' | ' |
Securities pledged for Term Asset-Backed Securities Loan Facility ("TALF") | 36 | [4] | 37 | [4] | ' | ' | ' | ' |
Investments pledged for Federal Home Loan Bank of Indianapolis ('FHLBI') | 1,850 | [5] | 1,100 | [5] | ' | ' | ' | ' |
Total payables for collateral on investments | 3,238 | 4,181 | 374 | 59 | ' | ' | ||
Fair Value Of Related Investments Or Collateral [Abstract] | ' | ' | ' | ' | ' | ' | ||
Collateral payable held for derivative investments | 638 | [1] | 2,567 | [1] | ' | ' | ' | ' |
Securities pledged under securities lending agreements | 178 | [2] | 189 | [2] | ' | ' | ' | ' |
Securities pledged under reverse repurchase agreements | 553 | [3] | 294 | [3] | ' | ' | ' | ' |
Securities pledged for Term Asset-Backed Securities Loan Facility ("TALF") | 49 | [4] | 52 | [4] | ' | ' | ' | ' |
Investments pledged for Federal Home Loan Bank of Indianapolis('FHLBI') | 3,127 | [5] | 1,936 | [5] | ' | ' | ' | ' |
Total payables for collateral on investments | $4,545 | $5,038 | ' | ' | ' | ' | ||
Percentage of the fair value of domestic securities obtained as collateral under securities lending agreements. | 102.00% | ' | ' | ' | ' | ' | ||
Percentage of the fair value of foreign securities obtained as collateral under securities lending agreements. | 105.00% | ' | ' | ' | ' | ' | ||
Percentage of the fair value of securities obtained as collateral under reverse repurchase agreements. | 95.00% | ' | ' | ' | ' | ' | ||
Percentage of the fair value of TALF securities obtained as collateral under securities pledged for TALF | 90.00% | ' | ' | ' | ' | ' | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for AFS Securities | ' | ' | ' | ' | 105.00% | 115.00% | ||
Percentage of the fair value of FHLBI securities obtained as collateral under securities pledged for FHLBI for mortgage loan | ' | ' | ' | ' | 155.00% | 175.00% | ||
[1] | We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterpartiesb 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 6 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 securities for TALF are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We obtain collateral in an amount that has typically averaged 90% of the fair value of the TALF securities. The cash received in these transactions is invested in fixed maturity AFS securities. | |||||||
[5] | Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets.B 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.B The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities. |
Investments_Schedule_Of_Increa
Investments (Schedule Of Increase (Decrease) In Payables For Collateral On Investments) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Increase (decrease) in payables for collateral on investments | ' | ' | ' |
Collateral payable held for derivative investments | ($1,929) | ($413) | $2,180 |
Securities pledged under securities lending agreements | -13 | -3 | 1 |
Securities pledged under reverse repurchase agreements | 250 | ' | ' |
Securities pledged for TALF | -1 | -136 | -107 |
Securities pledged for FHLBI | 750 | 1,000 | ' |
Total increase (decrease) in payables for collateral on investments | -943 | 448 | 2,074 |
Parent Company [Member] | ' | ' | ' |
Increase (decrease) in payables for collateral on investments | ' | ' | ' |
Total increase (decrease) in payables for collateral on investments | $315 | $73 | ' |
Derivative_Instruments_Narrati
Derivative Instruments (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Derivative Instruments [Abstract] | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $24 |
Collateral Requirement If Netting Agreements Not In Place | 2 |
Non-performance Risk Adjustment | 2 |
Exposure Associated With Collateralization Events | $69 |
Derivative_Instruments_Outstan
Derivative Instruments (Outstanding Derivative Instruments With Off-Balance-Sheet Risks) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | $71,594 | $61,110 | ||
Asset Fair Value | 3,102 | 3,547 | ||
Liability Fair Value | 2,322 | 2,762 | ||
Interest Rate Contract [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 50,834 | [1] | ' | |
Foreign Currency Contract [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 717 | [2] | ' | |
Equity Market Contract [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 19,917 | ' | ||
Credit Risk Contract [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 126 | ' | ||
Derivative investments [Member] | Interest Rate Contract [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 45,620 | [3] | 36,539 | [3] |
Asset Fair Value | 215 | [3] | 1,042 | [3] |
Liability Fair Value | 744 | [3] | 475 | [3] |
Derivative investments [Member] | Foreign Currency Contract [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 102 | [3] | 48 | [3] |
Derivative investments [Member] | Equity Market Contract [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 19,917 | [3] | 19,857 | [3] |
Asset Fair Value | 957 | [3] | 1,734 | [3] |
Liability Fair Value | 193 | [3] | 170 | [3] |
Derivative investments [Member] | Equity Collar [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | ' | 9 | [3] | |
Asset Fair Value | ' | 1 | [3] | |
Derivative investments [Member] | Cash flow hedges | Designated as Hedging Instrument [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 4,954 | 3,634 | ||
Asset Fair Value | 594 | 501 | ||
Liability Fair Value | 194 | 250 | ||
Derivative investments [Member] | Cash flow hedges | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 4,339 | [3] | 3,214 | [3] |
Asset Fair Value | 562 | [3] | 462 | [3] |
Liability Fair Value | 148 | [3] | 224 | [3] |
Derivative investments [Member] | Cash flow hedges | Foreign Currency Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 615 | [3] | 420 | [3] |
Asset Fair Value | 32 | [3] | 39 | [3] |
Liability Fair Value | 46 | [3] | 26 | [3] |
Derivative investments [Member] | Fair value hedges | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 875 | [3] | 875 | [3] |
Asset Fair Value | 92 | [3] | 269 | [3] |
Liability Fair Value | 33 | [3] | ' | |
Other liabilities [Member] | Credit Risk Contract [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Notional Amounts | 126 | [4] | 148 | [4] |
Liability Fair Value | 2 | [4] | 11 | [4] |
Future contract benefits [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Liability Fair Value | 1,048 | [5] | 732 | [5] |
Future contract benefits [Member] | GLB Embedded Derivative Reserves [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Asset Fair Value | 1,244 | [5] | ' | |
Liability Fair Value | ' | 909 | [5] | |
Reinsurance related [Member] | Reinsurance Related [Member] | Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | ' | ' | ||
Outstanding derivative instruments with off-balance-sheet risks | ' | ' | ||
Liability Fair Value | $108 | [6] | $215 | [6] |
[1] | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | |||
[2] | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2028. | |||
[3] | Reported in derivative investments and other liabilities on our Consolidated Balance Sheets. | |||
[4] | Reported in other liabilities on our Consolidated Balance Sheets. | |||
[5] | Reported in future contract benefits on our Consolidated Balance Sheets. | |||
[6] | Reported in reinsurance related embedded derivatives on our Consolidated Balance Sheets. |
Derivative_Instruments_Maturit
Derivative Instruments (Maturity Of The Notional Amounts Of Derivative Financial Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | Interest Rate Contract [Member] | Foreign Currency Contract [Member] | Equity Market Contract [Member] | Credit Risk Contract [Member] | ||||
Maturity of the notional amounts of derivative financial instruments | ' | ' | ' | ' | ' | ' | ||
Remaining Life Less Than 1 Year | $16,495 | ' | $5,343 | [1] | $175 | [2] | $10,977 | ' |
Remaining Life - 1 - 5 Years | 27,183 | ' | 23,374 | [1] | 110 | [2] | 3,573 | 126 |
Remaining Life - 6 - 10 Years | 16,346 | ' | 10,697 | [1] | 305 | [2] | 5,344 | ' |
Remaining Life - 11 - 30 Years | 10,355 | ' | 10,207 | [1] | 127 | [2] | 21 | ' |
Remaining Life Over - 30 Years | 1,215 | ' | 1,213 | [1] | ' | [2] | 2 | ' |
Remaining Life - Total Years | $71,594 | $61,110 | $50,834 | [1] | $717 | [2] | $19,917 | $126 |
Derivative maturity date | ' | ' | 1-Apr-67 | 1-Apr-28 | ' | ' | ||
[1] | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2067. | |||||||
[2] | As of December 31, 2013, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was April 2028. |
Derivative_Instruments_Change_
Derivative Instruments (Change In Our Unrealized Gain On Derivative Instruments In Accumulated OCI) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Balance as of beginning-of-year | $3,808 | ' | ' | |||
Federal income tax expense (benefit) | 387 | 282 | 274 | |||
Balance as of end-of-year | 1,563 | 3,808 | ' | |||
Parent Company [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Balance as of beginning-of-year | 3,808 | ' | ' | |||
Federal income tax expense (benefit) | -73 | -85 | -68 | |||
Balance as of end-of-year | 1,563 | 3,808 | ' | |||
Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Balance as of beginning-of-year | 163 | 119 | -11 | |||
Unrealized holding gains (losses) arising during the year | 143 | 55 | 184 | |||
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 | |||
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | ' | |||
Income tax benefit (expense) | -45 | -21 | -67 | |||
Reclassification adjustment for gains (losses) included in net income (loss) | -15 | -15 | -10 | |||
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 | |||
Federal income tax expense (benefit) | 5 | ' | ' | |||
Income tax benefit (expense) | 5 | 4 | 3 | |||
Balance as of end-of-year | 256 | 163 | 119 | |||
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | Interest Rate Contract [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Unrealized holding gains (losses) arising during the year | 163 | 73 | 177 | |||
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | Interest Rate Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Reclassification adjustment for gains (losses) included in net income (loss) | -21 | [1] | -21 | [1] | -15 | [1] |
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | Interest Rate Contract [Member] | Interest Expense [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Reclassification adjustment for gains (losses) included in net income (loss) | -1 | [2] | -1 | [2] | -1 | [2] |
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | Foreign Currency Contract [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Unrealized holding gains (losses) arising during the year | -24 | -22 | 3 | |||
Unrealized Gain (Loss) on Derivative Instruments | Cash flow hedges | Foreign Currency Contract [Member] | Net Investment Income [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Reclassification adjustment for gains (losses) included in net income (loss) | 3 | [1] | 3 | [1] | 2 | [1] |
Unrealized Gain (Loss) on Derivative Instruments | Fair value hedges | Interest Rate Contract [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Unrealized holding gains (losses) arising during the year | 4 | 4 | 4 | |||
Unrealized Gain (Loss) on Derivative Instruments | Fair value hedges | Interest Rate Contract [Member] | Interest Expense [Member] | ' | ' | ' | |||
Change in our unrealized gain on derivative instruments in accumulated OCI | ' | ' | ' | |||
Reclassification adjustment for gains (losses) included in net income (loss) | $4 | [2] | $4 | [2] | $4 | [2] |
[1] | The OCI offset is reported within net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[2] | The OCI offset is reported within interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative_Instruments_Gains_L
Derivative Instruments (Gains (Losses) On Derivative Instruments Recorded Within Income (Loss) From Continuing Operations) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | ($330) | ($187) | ($415) | |||
Designated as Hedging Instrument [Member] | Cash flow hedges | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -18 | -18 | -13 | |||
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Interest Rate Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -21 | [1] | -21 | [1] | -15 | [1] |
Designated as Hedging Instrument [Member] | Net Investment Income [Member] | Cash flow hedges | Foreign Currency Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | 3 | [1] | 3 | [1] | 2 | [1] |
Designated as Hedging Instrument [Member] | Interest Expense [Member] | Fair value hedges | Interest Rate Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | 36 | [2] | 36 | [2] | 50 | [2] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Interest Rate Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -989 | [3] | 35 | [3] | 1,100 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Foreign Currency Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -4 | [3] | -8 | [3] | -12 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Equity Market Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -1,306 | [3] | -1,377 | [3] | 316 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Credit Risk Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | 9 | [3] | 2 | [3] | -7 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | -356 | [3] | -136 | [3] | 5 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | GLB Embedded Derivative Reserves [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | 2,153 | [3] | 1,308 | [3] | -1,809 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Realized Gain (Loss) [Member] | Reinsurance Related [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | 107 | [3] | -47 | [3] | -66 | [3] |
Derivative Instruments Not Designated and Not Qualifying as Hedging Instruments | Commissions and other expenses [Member] | Equity Market Contract [Member] | ' | ' | ' | |||
Gains (losses) | ' | ' | ' | |||
Gains (losses) | $38 | [4] | $18 | [4] | $21 | [4] |
[1] | Reported in net investment income on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[2] | Reported in interest and debt expense on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[3] | Reported in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[4] | Reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Derivative_Instruments_Gains_L1
Derivative Instruments (Gains (Losses) On Derivative Instruments Designated As Hedges) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gains (losses) on derivative instruments designated and qualifying as cash flow hedges | ' | ' | ' |
Gain (loss) recognized as a component of other comprehensive income with the offset to net investment income | ($19) | ($19) | ($13) |
Information related to fair value hedges | ' | ' | ' |
Gain (loss) recognized as a component of OCI with the offset to interest expense | $4 | $4 | $4 |
Derivative_Instruments_Open_Cr
Derivative Instruments (Open Credit Default Swap Liabilities) (Details) (Open Credit Default Swap Liabilities [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
item | item | |||
Summary Of Credit Derivatives | ' | ' | ||
Credit default swaps, number of instruments | 6 | 7 | ||
Fair Value of open credit default swap liabilities | ($2) | [1] | ($11) | [1] |
Maximum potential payout of open credit default swap liabilities | 126 | 148 | ||
BBB- average credit rating | 12/20/2016 maturity | ' | ' | ||
Summary Of Credit Derivatives | ' | ' | ||
Credit rating of underlying obligation | 'BBB- | [2] | 'BBB- | [2] |
Credit default swaps, number of instruments | 3 | 3 | ||
Fair Value of open credit default swap liabilities | -1 | [1] | -4 | [1] |
Maximum potential payout of open credit default swap liabilities | 68 | 68 | ||
BBB- average credit rating | 3/20/2017 maturity | ' | ' | ||
Summary Of Credit Derivatives | ' | ' | ||
Credit rating of underlying obligation | 'BBB- | [2] | 'BBB- | [2] |
Credit default swaps, number of instruments | 3 | 4 | ||
Fair Value of open credit default swap liabilities | -1 | [1] | -7 | [1] |
Maximum potential payout of open credit default swap liabilities | $58 | $80 | ||
[1] | Broker quotes are used to determine the market value of our credit default swaps. | |||
[2] | Represents average credit ratings based on the midpoint of the applicable ratings among Moody’s, S&P and Fitch Ratings, as scaled to the corresponding S&P ratings. |
Derivative_Instruments_Collate
Derivative Instruments (Collateral Support Agreements) (Details) (Open Credit Default Swap Liabilities [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Open Credit Default Swap Liabilities [Member] | ' | ' |
Credit risk related contingent features collateral | ' | ' |
Maximum potential payout | $126 | $148 |
Less: Counterparty thresholds | ' | ' |
Maximum collateral potentially required to post | $126 | $148 |
Derivative_Instruments_Schedul
Derivative Instruments (Schedule Of Collateral Amounts With Rights To Reclaim Or Obligation To Return Cash) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Collateral Posted by Counter-Party (Held by LNC) | $939 | $2,692 |
Collateral Posted by LNC (Held by Counter-Party) | 316 | 68 |
AA [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | ' | 41 |
Collateral Posted by LNC (Held by Counter-Party) | ' | ' |
AA- [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | 34 | 58 |
Collateral Posted by LNC (Held by Counter-Party) | 10 | ' |
A plus [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | 19 | 605 |
Collateral Posted by LNC (Held by Counter-Party) | ' | ' |
A [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | 339 | 770 |
Collateral Posted by LNC (Held by Counter-Party) | 183 | 68 |
A- [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | 468 | 1,214 |
Collateral Posted by LNC (Held by Counter-Party) | 123 | ' |
BBB+ [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | 79 | ' |
Collateral Posted by LNC (Held by Counter-Party) | ' | ' |
BBB [Member] | ' | ' |
Collateral Posted by Counter-Party (Held by LNC) | ' | 4 |
Collateral Posted by LNC (Held by Counter-Party) | ' | ' |
Derivative_Instruments_Balance
Derivative Instruments (Balance Sheet Offsetting) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Assets | ' | ' |
Derivative Fair Value Of Derivative Asset | $3,102 | $3,547 |
Derivative Instruments, Gross amount of recognized assets | 1,805 | 3,547 |
Derivative Instruments, Gross amounts offset | -924 | -895 |
Derivative Instruments, Net amount of assets | 881 | 2,652 |
Derivative Instruments, Cash collateral received | -623 | -2,624 |
Derivative Instruments, Net amount | 258 | 28 |
Embedded Derivative Instruments, Gross amount of recognized assets | 1,244 | ' |
Embedded Derivative Instruments, Gross amounts offset | ' | ' |
Embedded Derivative Instruments, Net amount of assets | 1,244 | ' |
Embedded Derivative Instruments, Cash collateral received | ' | ' |
Embedded Derivative Instruments, Net amount | 1,244 | ' |
Securities Lending and Reverse Repurchase Agreements, Gross amount of recognized assets | ' | ' |
Securities Lending and Reverse Repurchase Agreements, Gross amounts offset | ' | ' |
Securities Lending and Reverse Repurchase Agreements, Net amount of assets | ' | ' |
Securities Lending and Reverse Repurchase Agreements, Cash collateral received | ' | ' |
Securities Lending and Reverse Repurchase Agreements, Net amount | ' | ' |
Total, Gross amount of recognized assets | 3,049 | 3,547 |
Total, Gross amounts offset | -924 | -895 |
Total, Net amount of assets | 2,125 | 2,652 |
Total, Cash collateral received | -623 | -2,624 |
Total, Net amount | 1,502 | 28 |
Securities Purchased under Agreements to Resell, Gross | ' | ' |
Financial Liabilities | ' | ' |
Derivative Fair Value Of Derivative Liability | 2,322 | 2,762 |
Derivative Instruments, Gross amount of recognized liabilities | 242 | 11 |
Derivative Instruments, Gross amounts offset | -55 | ' |
Derivative Instruments, Net amount of liabilities | 187 | 11 |
Derivative Instruments, Financial instruments | ' | ' |
Derivative Instruments, Net amount | 187 | 11 |
Embedded Derivative Instruments, Gross amount of recognized liabilities | 1,156 | 1,856 |
Embedded Derivative Instruments, Gross amounts offset | ' | ' |
Embedded Derivative Instruments, Net amount of liabilities | 1,156 | 1,856 |
Embedded Derivative Instruments, Financial instruments | ' | ' |
Embedded Derivative Instruments, Net amount | 1,156 | 1,856 |
Securities Lending and Reverse Repurchase Agreements, Gross amount of recognized liabilities | 2,600 | 1,614 |
Securities Lending and Reverse Repurchase Agreements, Gross amounts offset | ' | ' |
Securities Lending and Reverse Repurchase Agreements, Net amount of liabilities | 2,600 | 1,614 |
Securities Lending and Reverse Repurchase Agreements, Financial instruments | -2,600 | -1,614 |
Securities Lending and Reverse Repurchase Agreements, Net amount | ' | ' |
Total, Gross amount of recognized liabilities | 3,998 | 3,481 |
Total, Gross amounts offset | -55 | ' |
Total, Net amount of liabilities | 3,943 | 3,481 |
Total, Financial instruments | -2,600 | -1,614 |
Total, Net amount | $1,343 | $1,867 |
Federal_Income_Taxes_Narrative
Federal Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Dividends-received deduction | $145 | $128 | $135 |
Net operating loss carryforwards | 78 | ' | ' |
Net Operating Loss Carryforward Beginning Expiration Date | '2031 | ' | ' |
Tax Credit Carryforward, Amount | 82 | ' | ' |
Tax Credit Carryforward Beginning Expiration Date | '2030 | ' | ' |
Unrecognized tax benefits, that, if recognized, would impact income tax expense and effective tax rate | 74 | 69 | ' |
Recognized interest and penalty expense related to uncertain tax positions | 2 | -61 | 6 |
Accrued interest and penalty expense related to unrecognized tax benefits | 13 | 11 | ' |
Alternative Minimum [Member] | ' | ' | ' |
Tax Credit Carryforward, Amount | $119 | ' | ' |
Federal_Income_Taxes_Federal_I
Federal Income Taxes (Federal Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income tax expense (benefit), continuing operations [Abstract] | ' | ' | ' |
Current | $169 | $23 | $13 |
Deferred | 218 | 259 | 261 |
Federal income tax expense (benefit) | 387 | 282 | 274 |
Parent Company [Member] | ' | ' | ' |
Income tax expense (benefit), continuing operations [Abstract] | ' | ' | ' |
Federal income tax expense (benefit) | ($73) | ($85) | ($68) |
Federal_Income_Taxes_Reconcili
Federal Income Taxes (Reconciliation Of The Effective Tax Rate Differences) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of effective tax rate differences [Abstract] | ' | ' | ' |
Tax rate times pre-tax income | $571 | $549 | $176 |
Effect of: | ' | ' | ' |
Tax-preferred investment income | -160 | -141 | -144 |
Tax credits | -35 | -34 | -34 |
Goodwill | ' | -2 | 260 |
Change in uncertain tax positions | 7 | -94 | 8 |
Other items | 4 | 4 | 8 |
Federal income tax expense (benefit) | 387 | 282 | 274 |
Effective tax rate | 24.00% | 18.00% | 55.00% |
Parent Company [Member] | ' | ' | ' |
Effect of: | ' | ' | ' |
Federal income tax expense (benefit) | ($73) | ($85) | ($68) |
Federal_Income_Taxes_Federal_I1
Federal Income Taxes (Federal Income Tax Asset Liability) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Federal income tax asset (liability) [Abstract] | ' | ' |
Current | ($186) | ($27) |
Deferred | -1,966 | -2,982 |
Total federal income tax asset (liability) | ($2,152) | ($3,009) |
Federal_Income_Taxes_Significa
Federal Income Taxes (Significant Components Of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Future contract benefits and other contract holder funds | $1,225 | $1,189 |
Deferred gain on business sold through reinsurance | 87 | 96 |
Reinsurance related embedded derivative asset | 36 | 75 |
Investments | 85 | 311 |
Compensation and benefit plans | 319 | 293 |
Net operating loss | 27 | 26 |
Net capital loss | ' | 32 |
Deferred tax asssets tax credits | 201 | 222 |
Deferred tax assets VIEs | 4 | 35 |
Other | 79 | 41 |
Total deferred tax assets | 2,063 | 2,320 |
Deferred Tax Liabilities | ' | ' |
DAC | 1,914 | 1,332 |
VOBA | 409 | 246 |
Net unrealized gain on AFS securities | 1,319 | 3,283 |
Net unrealized gain on trading securities | 89 | 150 |
Intangibles | 146 | 157 |
Other | 152 | 134 |
Total deferred tax liabilities | 4,029 | 5,302 |
Net deferred tax asset (liability) | ($1,966) | ($2,982) |
Federal_Income_Taxes_Reconcili1
Federal Income Taxes (Reconciliation Of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of unrecognized tax benefits [Roll Forward] | ' | ' |
Balance as of beginning-of-year | $77 | $211 |
Decreases for prior year tax positions | ' | -49 |
Increases for current year tax positions | 5 | 5 |
Decreases for settlements with taxing authorities | ' | -2 |
Decreases for lapse of statute of limitations | ' | -88 |
Balance as of end-of-year | $82 | $77 |
DAC_VOBA_DSI_and_DFEL_DAC_Deta
DAC, VOBA, DSI, and DFEL (DAC) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in DAC [Roll Forward] | ' | ' | ' |
Balance as of beginning-of-year | $5,943 | $5,721 | $6,036 |
Deferrals | 1,564 | 1,294 | 1,375 |
Amortization, net of interest: | ' | ' | ' |
Amortization, excluding unlocking, net of interest | -816 | -785 | -687 |
Unlocking | 42 | -71 | -130 |
Adjustment related to realized (gains) losses | -8 | -70 | -18 |
Adjustment related to unrealized (gains) losses | 970 | -146 | -855 |
Balance as of end-of-year | $7,695 | $5,943 | $5,721 |
DAC_VOBA_DSI_and_DFEL_VOBA_Det
DAC, VOBA, DSI, and DFEL (VOBA) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Changes in VOBA [Roll Forward] | ' | ' | ' | |||
Balance as of beginning-of-year | $724 | $1,055 | $1,378 | |||
Business acquired (sold) through reinsurance | 4 | 2 | 12 | |||
Deferrals | 13 | 12 | 20 | |||
Amortization: | ' | ' | ' | |||
Amortization, excluding unlocking | -179 | -225 | -279 | |||
Unlocking | -52 | -23 | 174 | |||
Accretion of interest | 68 | [1] | 73 | [1] | 78 | [1] |
Adjustment related to realized (gains) losses | -1 | 9 | -6 | |||
Adjustment related to unrealized (gains) losses | 614 | -179 | -322 | |||
Balance as of end-of-year | $1,191 | $724 | $1,055 | |||
Interest accrual rate, low end | 4.02% | ' | ' | |||
Interest accrual rate, high end | 7.05% | ' | ' | |||
[1] | The interest accrual rates utilized to calculate the accretion of interest ranged from 4.02% to 7.05%. |
DAC_VOBA_DSI_and_DFEL_Estimate
DAC, VOBA, DSI, and DFEL (Estimated Future Amortization of VOBA) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Estimated future amortization of VOBA, net of interest [Abstract] | ' |
2014 | $85 |
2015 | 78 |
2016 | 71 |
2017 | 68 |
2018 | $68 |
DAC_VOBA_DSI_and_DFEL_DSI_Deta
DAC, VOBA, DSI, and DFEL (DSI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in DSI [Roll Forward] | ' | ' | ' |
Balance as of beginning-of-year | $253 | $271 | $286 |
Deferrals | 10 | 39 | 39 |
Amortization, net of interest: | ' | ' | ' |
Amortization, excluding unlocking, net of interest | -43 | -46 | -38 |
Unlocking | 8 | 14 | -2 |
Adjustment related to realized (gains) losses | -1 | -8 | -1 |
Adjustment related to unrealized (gains) losses | 40 | -17 | -13 |
Balance as of end-of-year | $267 | $253 | $271 |
DAC_VOBA_DSI_and_DFEL_DFEL_Det
DAC, VOBA, DSI, and DFEL (DFEL) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in DFEL [Abstract] | ' | ' | ' |
Balance as of beginning-of-year | $1,373 | $1,369 | $1,502 |
Deferrals | 320 | 349 | 544 |
Amortization, net of interest: | ' | ' | ' |
Amortization, excluding unlocking, net of interest | -216 | -216 | -166 |
Unlocking | -14 | -69 | 31 |
Adjustment related to realized (gains) losses | -2 | -18 | -9 |
Adjustment related to unrealized (gains) losses | 477 | -42 | -533 |
Balance as of end-of-year | $1,938 | $1,373 | $1,369 |
Reinsurance_Narrative_Details
Reinsurance (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Ceded Credit Risk [Line Items] | ' | ' | ' |
Percent of mortality risk reinsured on newly issued non-term life insurance contracts, low end | 26.00% | ' | ' |
Percent of mortality risk reinsured on newly issued non-term life insurance contracts, high end | 33.00% | ' | ' |
Percent of total mortality risk reinsured, including term insurance contracts, low end | 23.00% | ' | ' |
Percent of total mortality risk reinsured, including term insurance contracts, high end | 27.00% | ' | ' |
Maximum retention per single insured life on fixed and VUL insurance contracts | $20 | ' | ' |
Reserves associated with modified coinsurance reinsurance arrangements | 742 | ' | ' |
Reinsurance receivable | 6,000 | 6,400 | ' |
Policy loans | 2,677 | 2,766 | ' |
Liabilities for funds withheld | 867 | 940 | ' |
Swiss Re [Member] | ' | ' | ' |
Ceded Credit Risk [Line Items] | ' | ' | ' |
Reinsurance receivable | 2,600 | 2,800 | ' |
Trust funded by Swiss Re to support reinsurance receivable | 2,200 | ' | ' |
Liabilities for funds withheld | 867 | ' | ' |
Liabilities for reinsurance related embedded derivatives | 92 | ' | ' |
Amortization period (in years) of deferred gain on business sold to Swiss Re | '15 years | ' | ' |
Amount of amortization, after-tax, of deferred gain on business sold to Swiss Re | $48 | $48 | $49 |
Reinsurance_Reinsurance_amount
Reinsurance (Reinsurance amounts recorded on the Consolidated Statement of Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Notes to Financial Statements [Abstract] | ' | ' | ' |
Direct insurance premiums and fee income | $8,023 | $7,379 | $6,997 |
Reinsurance assumed | 8 | 9 | 10 |
Reinsurance ceded | -1,275 | -1,190 | -1,276 |
Total insurance premiums and fee income | 6,756 | 6,198 | 5,731 |
Direct insurance benefits | 5,487 | 5,095 | 4,897 |
Reinsurance recoveries netted against benefits | -1,625 | -1,554 | -1,552 |
Total benefits | $3,862 | $3,541 | $3,345 |
Goodwill_and_Specifically_Iden2
Goodwill and Specifically Identifiable Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | $2,273 | $3,863 | ' |
Cumulative impairment as of beginning-of-year | -1,590 | -1,590 | ' |
Impairment | ' | ' | 747 |
Balance as of end-of-year | 2,273 | 2,273 | 3,863 |
Annuities [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | 440 | 1,040 | ' |
Cumulative impairment as of beginning-of-year | -600 | -600 | ' |
Impairment | ' | ' | ' |
Balance as of end-of-year | 440 | 440 | ' |
Retirement Plan Services [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | 20 | 20 | ' |
Impairment | ' | ' | ' |
Balance as of end-of-year | 20 | 20 | ' |
Life Insurance [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | 1,539 | 2,188 | ' |
Cumulative impairment as of beginning-of-year | -649 | -649 | ' |
Impairment | ' | ' | ' |
Balance as of end-of-year | 1,539 | 1,539 | ' |
Group Protection [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | 274 | 274 | ' |
Impairment | ' | ' | ' |
Balance as of end-of-year | 274 | 274 | ' |
Other Operations [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Acquisition balance as of beginning-of-year | ' | 341 | ' |
Cumulative impairment as of beginning-of-year | -341 | -341 | ' |
Impairment | ' | ' | ' |
Goodwill_and_Specifically_Iden3
Goodwill and Specifically Identifiable Intangible Assets (Finite And Indefinite Lived Intangible Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ' | ' |
Gross carrying amount | $240 | $238 |
Accumulated amortization | 34 | 30 |
Retirement Plan Services [Member] | Mutual Fund Contract Rights [Member] | ' | ' |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ' | ' |
Gross carrying amount | 5 | 5 |
Life Insurance [Member] | Sales Force [Member] | ' | ' |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ' | ' |
Gross carrying amount | 100 | 100 |
Accumulated amortization | 31 | 27 |
Other Operations [Member] | FCC Licenses [Member] | ' | ' |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ' | ' |
Gross carrying amount | 131 | 129 |
Other Operations [Member] | Other [Member] | ' | ' |
Finite And Indefinife Lived Intangible Assets Net [Abstract] | ' | ' |
Gross carrying amount | 4 | 4 |
Accumulated amortization | $3 | $3 |
Goodwill_and_Specifically_Iden4
Goodwill and Specifically Identifiable Intangible Assets (Future estimated amortization of specifically identifiable intangible assets) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future estimated amortization of specifically identifiable intangible assets [Abstract] | ' |
2014 | $4 |
2015 | 4 |
2016 | 4 |
2017 | 4 |
2018 | 4 |
Thereafter | $50 |
Guaranteed_Benefit_Features_Na
Guaranteed Benefit Features (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Guaranteed Benefit Features [Abstract] | ' |
Percent of permanent life insurance in force | 28.00% |
Percent of permanent life insurance sales | 35.00% |
Guaranteed_Benefit_Features_In
Guaranteed Benefit Features (Information On Guaranteed Death Benefit Features) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Return of Net Deposits [Member] | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Total Account Value | $79,391 | $63,478 | ||
Net amount at risk | 141 | [1] | 392 | [1] |
Average attained age of contract holders | '61 years | '60 years | ||
Minimum Return [Member] | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Total Account Value | 151 | 149 | ||
Net amount at risk | 27 | [1] | 37 | [1] |
Average attained age of contract holders | '73 years | '73 years | ||
Guaranteed minimum return | 5.00% | 5.00% | ||
Anniversary Contract Value [Member] | ' | ' | ||
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' | ||
Total Account Value | 25,958 | 23,019 | ||
Net amount at risk | $570 | [1] | $1,133 | [1] |
Average attained age of contract holders | '68 years | '67 years | ||
[1] | Represents the amount of death benefit in excess of the account balance.B The decrease in net amount at risk when comparing December 31, 2013, to December 31, 2012, was attributable primarily to the increase in the equity markets during 2013. |
Guaranteed_Benefit_Features_Su
Guaranteed Benefit Features (Summary Of Guaranteed Death Benefit Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Guaranteed Benefit Features [Abstract] | ' | ' | ' |
Balance as of beginning-of-year | $104 | $84 | $44 |
Changes in reserves | -10 | 64 | 93 |
Benefits paid | -21 | -44 | -53 |
Balance as of end-of-period | $73 | $104 | $84 |
Guaranteed_Benefit_Features_Ac
Guaranteed Benefit Features (Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts) (Details) (Variable Annuity [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ' | ' |
Total | $100,856 | $81,670 |
Percent of total variable annuity separate account values | 98.00% | 98.00% |
Domestic equity | ' | ' |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ' | ' |
Total | 47,042 | 37,899 |
International equity | ' | ' |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ' | ' |
Total | 18,341 | 14,850 |
Bonds | ' | ' |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ' | ' |
Total | 24,547 | 21,174 |
Money Market | ' | ' |
Account Balances Of Variable Annuity Contracts With Guarantees Invested In Separate Accounts [Line Items] | ' | ' |
Total | $10,926 | $7,747 |
ShortTerm_and_LongTerm_Debt_Na
Short-Term and Long-Term Debt (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Senior Notes Due 2019 [Member] | Debt Repurchased [Member] | ' |
Repurchase amount | $13,000,000 |
Maturity date | '2019 |
Interest rate | 8.75% |
Senior Notes Due 2036 [Member] | Debt Repurchased [Member] | ' |
Repurchase amount | 2,000,000 |
Maturity date | '2036 |
Interest rate | 6.15% |
Capital Securities [Member] | ' |
Principal balance | 1,200,000,000 |
Risk based capital ratio threshold | 175.00% |
Capital Securities [Member] | Debt Repurchased [Member] | ' |
Maturity date | '2066 |
Interest rate | 6.75% |
Five-year revolving credit facility [Member] | ' |
Maximum Issuance Of Line of Credit | 2,500,000,000 |
Current borrowing capacity | 2,500,000,000 |
Borrowing capacity available to reimburse the banks for drawn LOCs | 1,750,000,000 |
Minimum consolidated net worth | 9,400,000,000 |
Percentage of aggregate net proceeds of equity issuances | 50.00% |
Debt to capital ratio (low end of range) | 0.35% |
Debt to capital ratio (high end of range) | 1.00% |
LOC facility due March 2023 [Member] | ' |
Maximum Issuance Of Line of Credit | 156,000,000 |
LOC facility also due March 2023 [Member] | ' |
Maximum Issuance Of Line of Credit | 925,000,000 |
LOC facility due August 2031 [Member] | ' |
Maximum Issuance Of Line of Credit | 863,000,000 |
LOC facility due October 2031 [Member] | ' |
Maximum Issuance Of Line of Credit | 1,000,000,000 |
Third-party financing arrangement due October 2028 [Member] | ' |
Maximum Issuance Of Line of Credit | $700,000,000 |
ShortTerm_and_LongTerm_Debt_De
Short-Term and Long-Term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Total short-term debt | $501 | $200 | ||
Total long-term debt | 5,320 | 5,439 | ||
Short-term Debt [Member] | ' | ' | ||
Current maturities of long-term debt | 500 | 200 | ||
Unamortized premiums (discounts) | 1 | ' | ||
Total short-term debt | 501 | 200 | ||
Long-term debt [Member] | ' | ' | ||
Unamortized premiums (discounts) | -12 | -3 | ||
Senior Long Term Notes | 4,060 | 3,960 | ||
Capital Securities | 1,213 | 1,213 | ||
Fair value hedge on interest rate swap | 59 | 269 | ||
Total unamortized premiums discounts and fair value hedge - interest rate swap agreements | 47 | 266 | ||
Total long-term debt | 5,320 | 5,439 | ||
Parent Company [Member] | ' | ' | ||
Total short-term debt | 501 | 200 | ||
Total long-term debt | 5,571 | 5,689 | ||
4.75% notes, due 2014 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | ' | 300 | ||
4.75% notes, due 2014 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | ' | 200 | ||
4.30% notes, due 2015 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 250 | [1] | 250 | [1] |
LIBOR plus 3 bps notes, due 2017 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 250 | [2] | 250 | [2] |
7.00% notes, due 2018 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 200 | 200 | ||
LIBOR plus 110 bps loan, due 2018 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 250 | ' | ||
8.75% notes, due 2019 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 487 | [1] | 487 | [1] |
6.25% notes, due 2020 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 300 | [1] | 300 | [1] |
4.85% notes, due 2021 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 300 | [1] | 300 | [1] |
4.20% notes, due 2022 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 300 | [1] | 300 | [1] |
4.00% notes, due 2023 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 350 | [1] | ' | |
6.15% notes, due 2036 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 498 | [1] | 498 | [1] |
6.30% notes, due 2037 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 375 | [1],[2] | 375 | [1],[2] |
7.00% notes, due 2040 [Member] | Long-term debt [Member] | ' | ' | ||
Senior Long Term Notes | 500 | [1],[2] | 500 | [1],[2] |
7.00%, due 2066 [Member] | Long-term debt [Member] | ' | ' | ||
Capital Securities | 722 | 722 | ||
6.05%, due 2067 [Member] | Long-term debt [Member] | ' | ' | ||
Capital Securities | $491 | $491 | ||
[1] | We have the option to repurchase the outstanding notes by paying the greater of 100% of the principal amount of the notes to be redeemed or the make-whole amount (as defined in each note agreement), plus in each case any accrued and unpaid interest as of the date of redemption. | |||
[2] | Categorized as operating debt for leverage ratio calculations as the proceeds were used as a long-term structured solution to reduce the strain on increasing statutory reserves associated with secondary guarantee UL and term policies. |
ShortTerm_and_LongTerm_Debt_Sc
Short-Term and Long-Term Debt (Schedule of Extinguishment of Debt) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ' | ' | ' | |||
Principal balance outstanding prior to payoff | ' | [1] | $15 | [1] | $275 | [1] |
Unamortized debt issuance costs and discounts prior to payoff | ' | ' | -8 | |||
Amount paid to retire | ' | -20 | -275 | |||
Gain (loss) on extinguishment of debt, pre-tax | ' | -5 | -8 | |||
Parent Company [Member] | ' | ' | ' | |||
Details underlying the recognition of gain or loss on extinguishment of debt [Abstract] | ' | ' | ' | |||
Gain (loss) on extinguishment of debt, pre-tax | ' | $5 | $8 | |||
[1] | During the fourth quarter of 2012, we repurchased $13 million of our 8.75% senior notes due 2019 and $2 million of our 6.15% senior notes due 2036. During the third quarter of 2011, we repurchased all of our 6.75% capital securities due 2066. |
ShortTerm_and_LongTerm_Debt_Fu
Short-Term and Long-Term Debt (Future Principal Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future principal payments due on long-term debt [Abstract] | ' |
2014 | $500 |
2015 | 250 |
2016 | ' |
2017 | 250 |
2018 | 450 |
Thereafter | 4,323 |
Total | $5,773 |
ShortTerm_and_LongTerm_Debt_Cr
Short-Term and Long-Term Debt (Credit Facilities and Letters of Credit) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Credit Facilities | 'Total |
Maximum Available | $5,340 |
LOCs issued | 3,657 |
Five-year revolving credit facility [Member] | ' |
Credit Facilities | 'Five-year revolving credit facility |
Expiration Date | 29-May-18 |
Maximum Available | 2,500 |
LOCs issued | 866 |
LOC facility due March 2023 [Member] | ' |
Credit Facilities | 'LOC facility |
Expiration Date | 31-Mar-23 |
Maximum Available | 156 |
LOCs issued | 156 |
LOC facility also due March 2023 [Member] | ' |
Credit Facilities | 'LOC facility |
Expiration Date | 31-Mar-23 |
Maximum Available | 883 |
LOCs issued | 848 |
LOC facility due August 2031 [Member] | ' |
Credit Facilities | 'LOC facility |
Expiration Date | 26-Aug-31 |
Maximum Available | 805 |
LOCs issued | 791 |
LOC facility due October 2031 [Member] | ' |
Credit Facilities | 'LOC facility |
Expiration Date | 1-Oct-31 |
Maximum Available | 996 |
LOCs issued | $996 |
Contingencies_and_Commitments_1
Contingencies and Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total rental expense on operating leases | $44 | $43 | $42 |
Loss contingency accrual, insurance-related assessment, premium tax offset | -6 | 34 | ' |
Football Stadium Naming Rights Commitment [Member] | ' | ' | ' |
Amount of commitment, total | 140 | ' | ' |
Time period of commitment | '20 year | ' | ' |
Approximate Amount Of Commitment Per Year | 7 | ' | ' |
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | ' | ' | ' |
Concentration risk, percentage | 17.00% | 19.00% | 22.00% |
Variable Annuity Product Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | ' | ' | ' |
Concentration risk, percentage | 47.00% | 50.00% | 54.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Deposits Total [Member] | ' | ' | ' |
Concentration risk, percentage | 19.00% | 21.00% | 27.00% |
Fund Choice Concentration Risk [Member] | Variable Annuity Account Values Total [Member] | ' | ' | ' |
Concentration risk, percentage | 54.00% | 58.00% | 62.00% |
Pending or Threatened Litigation [Member] | ' | ' | ' |
Loss Contingency, Range of Possible Loss, Maximum | $220 | ' | ' |
Contingencies_and_Commitments_2
Contingencies and Commitments (Future Rental Commitments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future minimum rental commitments [Abstract] | ' |
2014 | $42 |
2015 | 38 |
2016 | 34 |
2017 | 28 |
2018 | 20 |
Thereafter | 32 |
Total | $194 |
Shares_and_Stockholders_Equity2
Shares and Stockholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 |
Common stock warrant [Member] | ||
Deferred compensation plan mark to market adjustment | $5 | ' |
Outstanding warrant to purchase common stock (in shares) | ' | 7,711,505 |
Exercise price of warrant (in dollars per share) | ' | 10.58 |
Warrant expiration date LNC deferred compensation plans | ' | 'July 10, 2019 |
Shares_and_Stockholders_Equity3
Shares and Stockholders' Equity (Changes In Preferred And Common stock (Number Of Shares)) (Details) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ' | ' | ' | |||
Balance as of beginning-of-year | 271,402,586 | ' | ' | |||
Balance as of end-of-year | 262,896,701 | 271,402,586 | ' | |||
Common stock as of end-of-year: | ' | ' | ' | |||
Assuming conversion of preferred stock | 262,896,701 | 271,555,098 | 291,480,374 | |||
Diluted basis | 272,196,891 | 279,087,588 | 298,225,244 | |||
Series A Preferred Stock [Member] | ' | ' | ' | |||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ' | ' | ' | |||
Balance as of beginning-of-year | 9,532 | 10,072 | 10,914 | |||
Conversion of convertible preferred stock | -5,818 | [1] | -540 | [1] | -842 | [1] |
Redemption of convertible preferred stock | -3,714 | ' | ' | |||
Balance as of end-of-year | ' | 9,532 | 10,072 | |||
Common Stock | ' | ' | ' | |||
Changes In Preferred And Common Stock Number Of Shares [Line Items] | ' | ' | ' | |||
Balance as of beginning-of-year | 271,402,586 | 291,319,222 | 315,718,554 | |||
Conversion of convertible preferred stock | 93,088 | [1] | 8,640 | [1] | 13,472 | [1] |
Common Stock Issued For Exercise Of Warrants | 1,981,856 | ' | ' | |||
Stock compensation/issued for benefit plans | 1,399,995 | 542,125 | 248,553 | |||
Retirement/cancellation of shares | -11,980,824 | -20,467,401 | -24,661,357 | |||
Balance as of end-of-year | 262,896,701 | 271,402,586 | 291,319,222 | |||
[1] | Represents the conversion of Series A preferred stock into common stock. |
Shares_and_Stockholders_Equity4
Shares and Stockholders' Equity (Reconciliation Of The Denominator Calculations Of Basic And Diluted EPS) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of the denominator (number of shares) in the calculations of basic and diluted earnings (loss) per common share | ' | ' | ' |
Weighted-average shares, as used in basic calculation | 265,631,377 | 280,648,391 | 307,216,181 |
Shares to cover exercise of outstanding warrants | 9,884,307 | 10,150,212 | 10,150,292 |
Shares to cover conversion of preferred stock | 74,582 | 153,749 | 173,289 |
Shares to cover non-vested stock | 1,491,483 | 1,153,178 | 813,905 |
Average stock options outstanding during the period | 2,873,295 | 570,180 | 636,989 |
Assumed acquisition of shares with assumed proceeds from exercising outstanding warrants | -2,630,939 | -4,685,901 | -4,658,020 |
Assumed acquisition of shares with assumed proceeds and benefits from exercising stock options (at average market price for the period) | -2,036,098 | -394,241 | -427,425 |
Shares repurchaseable from measured but unrecognized stock option expense | -139,131 | -4,723 | -65,882 |
Average deferred compensation shares | ' | ' | 1,110,722 |
Weighted-average shares, as used in diluted calculation | 275,148,876 | 287,590,845 | 314,950,051 |
Shares_and_Stockholders_Equity5
Shares and Stockholders' Equity (Components And Changes In Accumulated OCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | $3,808 | ' | ' |
Increases Attributable To | ' | ' | ' |
Gross OTTI recognized in OCI | -11 | -121 | -58 |
Less: | ' | ' | ' |
Balance as of end-of-year | 1,563 | 3,808 | ' |
Parent Company [Member] | ' | ' | ' |
Less: | ' | ' | ' |
Balance as of end-of-year | 1,563 | 3,808 | ' |
Unrealized Gain (Loss) on AFS Securities | ' | ' | ' |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | 4,066 | 2,947 | 1,176 |
Unrealized holding gains (losses) arising during the year | -5,728 | 2,691 | 3,414 |
Change in foreign currency exchange rate adjustment | 19 | 14 | -5 |
Change in DAC, VOBA, DSI, future contract benefits and other contract holder funds | 1,834 | -1,233 | -797 |
Income tax benefit (expense) | 1,356 | -480 | -932 |
Less: | ' | ' | ' |
Reclassification adjustment for gains (losses) included in net income (loss) | -67 | -194 | -129 |
Associated amortization of DAC, VOBA, DSI, and DFEL | -29 | -2 | -11 |
Income tax benefit (expense) | 34 | 69 | 49 |
Less: | ' | ' | ' |
Balance as of end-of-year | 1,609 | 4,066 | 2,947 |
Unrealized OTTI on AFS Securities | ' | ' | ' |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | -107 | -109 | -134 |
Increases Attributable To | ' | ' | ' |
Gross OTTI recognized in OCI | -11 | -121 | -58 |
Change in DAC, VOBA, DSI and DFEL | 1 | 15 | 13 |
Income tax benefit (expense) | 4 | 36 | 16 |
Decreases attributable to | ' | ' | ' |
Sales, maturities or other settlements of AFS securities | 62 | 129 | 103 |
Change in DAC, VOBA, DSI, and DFEL | -8 | -18 | -20 |
Income tax benefit (expense) | -19 | -39 | -29 |
Less: | ' | ' | ' |
Balance as of end-of-year | -78 | -107 | -109 |
Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | 163 | 119 | -11 |
Change in foreign currency exchange rate adjustment | -19 | -12 | 7 |
Decreases attributable to | ' | ' | ' |
Unrealized holding gains (losses) arising during the year | 143 | 55 | 184 |
Change in DAC, VOBA, DSI and DFEL | 5 | 15 | ' |
Income tax benefit (expense) | -45 | -21 | -67 |
Less: | ' | ' | ' |
Reclassification adjustment for gains (losses) included in net income (loss) | -15 | -15 | -10 |
Associated amortization of DAC, VOBA, DSI and DFEL | 1 | 4 | 1 |
Income tax benefit (expense) | 5 | 4 | 3 |
Balance as of end-of-year | 256 | 163 | 119 |
Foreign Currency Translation Adjustment AOCI Disclosure | ' | ' | ' |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | -4 | 1 | 1 |
Change in foreign currency exchange rate adjustment | -1 | -5 | ' |
Less: | ' | ' | ' |
Income tax benefit (expense) | ' | ' | ' |
Balance as of end-of-year | -5 | -4 | 1 |
Funded Status of Employee Benefit Plans AOCI Disclosure | ' | ' | ' |
Components And Changes In Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Balance as of beginning-of-year | -310 | -278 | -181 |
Less: | ' | ' | ' |
Adjustment arising during the period | 140 | 2 | -149 |
Income tax benefit (expense) | -49 | -34 | 52 |
Balance as of end-of-year | ($219) | ($310) | ($278) |
Recovered_Sheet1
Shares And Stockholders' Equity (Schedule of Reclassifications Out Of AOCI) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($135) | $74 | ($294) |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 4,754 | 4,698 | 4,652 |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | 265 | 273 | 294 |
Commissions and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,701 | 3,683 | 3,264 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,631 | 1,568 | 503 |
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 387 | 282 | 274 |
Net income (loss) | 351 | 337 | 317 | 239 | 320 | 428 | 322 | 243 | 1,244 | 1,313 | 221 |
Unrealized Gain (Loss) on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | -96 | ' | ' |
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' |
Unrealized OTTI on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 54 | ' | ' |
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -19 | ' | ' |
Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | -14 | ' | ' |
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 |
Income (loss) from continuing operations before taxes | ' | ' | ' | ' | ' | ' | ' | ' | 516 | 477 | 682 |
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -73 | -85 | -68 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,244 | 1,313 | 221 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -62 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized OTTI on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 35 | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -9 | ' | ' |
Gross Reclassification [Member] | Unrealized Gain (Loss) on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -67 | ' | ' |
Gross Reclassification [Member] | Unrealized OTTI on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' |
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonoperating income expense | ' | ' | ' | ' | ' | ' | ' | ' | -15 | ' | ' |
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments | Interest Rate Contract [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | -21 | ' | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Gross Reclassification [Member] | Unrealized Gain (Loss) on Derivative Instruments | Foreign Currency Contract [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized Gain (Loss) on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -29 | ' | ' |
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized OTTI on AFS Securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -8 | ' | ' |
Change In DAC, VOBA, DSI, And DFEL [Member] | Unrealized Gain (Loss) on Derivative Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commissions and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | $1 | ' | ' |
Realized_Gain_Loss_Details
Realized (Gain) Loss (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Details underlying realized gain (loss) | ' | ' | ' | |||
Total realized gain loss related to certain investments | ($98) | [1] | ($190) | [1] | ($148) | [1] |
Realized gain (loss) on the mark-to-market on certain instruments | 48 | [2] | 133 | [2] | -82 | [2] |
Indexed annuity and universal life net derivative results: | ' | ' | ' | |||
Gross gain (loss) | -39 | [3] | 16 | [3] | 2 | [3] |
Associated amortization of DAC, VOBA, DSI, and DFEL | 9 | [3] | -5 | [3] | -2 | [3] |
Variable annuity net derivatives results: | ' | ' | ' | |||
Gross gain (loss) | -60 | [4] | 164 | [4] | -60 | [4] |
Associated amortization of DAC, VOBA, DSI, and DFEL | 5 | [4] | -44 | [4] | -4 | [4] |
Total realized gain (loss) | ($135) | $74 | ($294) | |||
[1] | See bRealized Gain (Loss) Related to Certain Investmentsb section in Note 5. | |||||
[2] | Represents changes in the fair values of certain derivative investments (not including those associated with our variable annuity net derivatives results), reinsurance related embedded derivatives and trading securities. | |||||
[3] | Represents the net difference between the change in the fair value of the S&P 500 call options that we hold and the change in the fair value of the embedded derivative liabilities of our indexed annuity and universal life products along with changes in the fair value of embedded derivative liabilities related to index call options we may purchase in the future to hedge contract holder index allocations applicable to future reset periods for our indexed annuity products. | |||||
[4] | Includes the net difference in the change in embedded derivative reserves of our GLB riders and the change in the fair value of the derivative instruments we own to hedge the change in embedded derivative reserves on our GLB riders and the benefit ratio unlocking on our GDB riders, including the cost of purchasing the hedging instruments. |
Commissions_and_Other_Expenses2
Commissions and Other Expenses (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Details underlying commissions and other expenses [Abstract] | ' | ' | ' |
Commissions | $1,962 | $1,660 | $1,672 |
General and administrative expenses | 1,630 | 1,564 | 1,423 |
Expenses associated with reserve financing and unrelated LOCs | 64 | 56 | 47 |
DAC and VOBA deferrals and interest, net of amortization | -640 | -275 | -551 |
Broker-dealer expenses | 387 | 348 | 353 |
Specifically identifiable intangible asset amortization | 4 | 4 | 4 |
Media expenses | 62 | 67 | 69 |
Taxes, licenses and fees | 232 | 239 | 247 |
Restructuring charges | ' | 20 | ' |
Total | 3,701 | 3,683 | 3,264 |
Parent Company [Member] | ' | ' | ' |
Details underlying commissions and other expenses [Abstract] | ' | ' | ' |
General and administrative expenses | $46 | $10 | $27 |
Pension_Postretirement_Health_
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Narrative) (Details) | 12 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | GBP (£) | USD ($) | Nonqualified Plans [Member] | U.S. Plans [Member] | Non-U.S. Plans [Member] | Pension Plans [Member] | Other Postretirement Benefits [Member] | |
USD ($) | USD ($) | USD ($) | ||||||
Statement [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' |
Discount rate, assumed for next year | ' | ' | ' | ' | 4.70% | 4.45% | ' | ' |
Expected return on plan assets, assumed for next year | ' | ' | ' | ' | 7.82% | 5.50% | ' | ' |
Expected pre-65 health care cost trend rate, for next year | 7.50% | 7.50% | ' | ' | ' | ' | ' | ' |
Expected post-65 health care cost trend rate, for next year | 7.50% | 7.50% | ' | ' | ' | ' | ' | ' |
Effect of one-percentage point increase in assumed health care cost trend rates on accumulated postretirement benefit obligation | $4 | ' | ' | ' | ' | ' | ' | ' |
Effect of one-percentage point decrease in assumed health care cost trend rates on accumulated postretirement benefit obligation | 4 | ' | ' | ' | ' | ' | ' | ' |
Expected U.S. pension plans expense, for next year | 1 | ' | ' | ' | ' | ' | ' | ' |
Expected U.K. pension plan expense, for next year | -4 | ' | ' | ' | ' | ' | ' | ' |
Average pounds sterling to U.S. dollar exchange rate used to determine expected U.K. pension plan expense, for next year | ' | 1.66 | ' | ' | ' | ' | ' | ' |
Estimated amount of amortization from accumulated OCI into net periodic benefit expense, next year | ' | ' | ' | ' | ' | ' | 17 | 2 |
Domestic Equity Allocation US Plan Employees | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | ' |
Domestic Equity Allocation Large Cap U S Plan Employees | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' |
Domestic Equity Allocation Small Cap U S Plan Employees | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' |
Domestic Equity Allocation Hedge Fund U S Plan Employees | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' |
Pension Contributions | ' | ' | 25 | ' | ' | ' | ' | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | ' | ' | ' | $10 | ' | ' | ' | ' |
Pension_Postretirement_Health_1
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Benefit Plans' Assets and Obligations) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Amounts Recognized in Accumulated OCI, Net of Tax | ' | ' | ' | ||
Net amount recognized | ($91) | $32 | $97 | ||
U.S. Plans [Member] | ' | ' | ' | ||
Change in Plan Assets | ' | ' | ' | ||
Fair value as of beginning-of-year | 1,043 | 956 | ' | ||
Actual return on plan assets | 67 | 123 | ' | ||
Company and participant contributions | 6 | 32 | ' | ||
Benefits paid | -69 | -68 | ' | ||
Fair value as of end-of-year | 1,047 | 1,043 | ' | ||
Change in Benefit Obligation | ' | ' | ' | ||
Balance as of beginning-of-year | 1,284 | 1,238 | ' | ||
Service cost | 5 | [1] | 5 | [1] | ' |
Interest cost | 51 | 53 | ' | ||
Actuarial (gains) losses | -93 | 61 | ' | ||
Administrative expenses paid | -6 | -5 | ' | ||
Benefits paid | -69 | -68 | ' | ||
Balance as of end-of-year | 1,172 | 1,284 | ' | ||
Funded status of the plans | -125 | -241 | ' | ||
Amounts Recognized on the Consolidated Balance Sheets | ' | ' | ' | ||
Other assets | 14 | 21 | ' | ||
Other liabilities | -139 | -262 | ' | ||
Net amount recognized | -125 | -241 | ' | ||
Amounts Recognized in Accumulated OCI, Net of Tax | ' | ' | ' | ||
Net (gain) loss | 157 | 229 | ' | ||
Net amount recognized | 157 | 229 | ' | ||
Weighted-Average Assumptions, Benefit obligations: | ' | ' | ' | ||
Weighted-average discount rate used in calculating benefit obligations | 4.70% | 4.16% | ' | ||
Expected return on plan assets used in calculating benefit obligations | 7.82% | 7.79% | ' | ||
Weighted-average discount rate used in calculating net periodic benefit cost | 4.16% | 4.45% | ' | ||
Expected return on plan assets used in calculating net periodic benefit cost | 7.82% | 7.79% | ' | ||
Non-U.S. Plans [Member] | ' | ' | ' | ||
Change in Plan Assets | ' | ' | ' | ||
Fair value as of beginning-of-year | 371 | 350 | ' | ||
Actual return on plan assets | 18 | 28 | ' | ||
Company and participant contributions | 6 | 7 | ' | ||
Benefits paid | -16 | -14 | ' | ||
Fair value as of end-of-year | 379 | 371 | ' | ||
Change in Benefit Obligation | ' | ' | ' | ||
Balance as of beginning-of-year | 364 | 311 | ' | ||
Interest cost | 16 | 15 | ' | ||
Actuarial (gains) losses | 9 | 52 | ' | ||
Benefits paid | -16 | -14 | ' | ||
Balance as of end-of-year | 373 | 364 | ' | ||
Funded status of the plans | 6 | 7 | ' | ||
Amounts Recognized on the Consolidated Balance Sheets | ' | ' | ' | ||
Other assets | 6 | 7 | ' | ||
Net amount recognized | 6 | 7 | ' | ||
Amounts Recognized in Accumulated OCI, Net of Tax | ' | ' | ' | ||
Net (gain) loss | 107 | 95 | ' | ||
Net amount recognized | 107 | 95 | ' | ||
Weighted-Average Assumptions, Benefit obligations: | ' | ' | ' | ||
Weighted-average discount rate used in calculating benefit obligations | 4.45% | 4.40% | ' | ||
Expected return on plan assets used in calculating benefit obligations | 5.50% | 5.30% | ' | ||
Weighted-average discount rate used in calculating net periodic benefit cost | 4.40% | 5.00% | ' | ||
Expected return on plan assets used in calculating net periodic benefit cost | 5.50% | 5.30% | ' | ||
Other Postretirement Benefits [Member] | ' | ' | ' | ||
Change in Plan Assets | ' | ' | ' | ||
Fair value as of beginning-of-year | 42 | 39 | ' | ||
Actual return on plan assets | 3 | 3 | ' | ||
Company and participant contributions | 13 | 15 | ' | ||
Benefits paid | -16 | -17 | ' | ||
Medicare Part D subsidy | 3 | 2 | ' | ||
Fair value as of end-of-year | 45 | 42 | ' | ||
Change in Benefit Obligation | ' | ' | ' | ||
Balance as of beginning-of-year | 139 | 161 | ' | ||
Service cost | 3 | [1] | 4 | [1] | ' |
Interest cost | 5 | 7 | ' | ||
Company and participant contributions | 4 | 6 | ' | ||
Amendments | -29 | ' | ' | ||
Actuarial (gains) losses | -7 | -24 | ' | ||
Benefits paid | -16 | -17 | ' | ||
Medicare Part D subsidy | 3 | 2 | ' | ||
Balance as of end-of-year | 102 | 139 | ' | ||
Funded status of the plans | -57 | -97 | ' | ||
Amounts Recognized on the Consolidated Balance Sheets | ' | ' | ' | ||
Other liabilities | -57 | -97 | ' | ||
Net amount recognized | -57 | -97 | ' | ||
Amounts Recognized in Accumulated OCI, Net of Tax | ' | ' | ' | ||
Net (gain) loss | -15 | -11 | ' | ||
Prior service credit | -18 | -3 | ' | ||
Net amount recognized | -33 | -14 | ' | ||
Rate of Increase in Compensation | ' | ' | ' | ||
Retiree Life Insurance Plan | 4.00% | 4.00% | ' | ||
Weighted-Average Assumptions, Benefit obligations: | ' | ' | ' | ||
Weighted-average discount rate used in calculating benefit obligations | 4.50% | 4.03% | ' | ||
Expected return on plan assets used in calculating benefit obligations | 6.50% | 6.50% | ' | ||
Weighted-average discount rate used in calculating net periodic benefit cost | 4.03% | 4.25% | ' | ||
Expected return on plan assets used in calculating net periodic benefit cost | 6.50% | 6.50% | ' | ||
Parent Company [Member] | ' | ' | ' | ||
Amounts Recognized in Accumulated OCI, Net of Tax | ' | ' | ' | ||
Net amount recognized | $91 | ($32) | ($97) | ||
[1] | Amounts for our U.S. pension plans represent general and administrative expenses. |
Pension_Postretirement_Health_2
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Health Care Cost Trend Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Health care cost trend rate [Abstract] | ' | ' | ' |
Pre-65 health care cost trend rate | 7.50% | 8.00% | 8.50% |
Post-65 health care cost trend rate | 7.50% | 8.00% | 8.50% |
Ultimate trend rate | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | '2020 | '2020 | '2021 |
Pension_Postretirement_Health_3
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Pension Plans with an accumulated benefit obligation in excess of plan assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accumulated benefit obligation in excess of plan assets [Abstract] | ' | ' |
Accumulated benefit obligation | $1,059 | $1,160 |
Projected benefit obligation | 1,059 | 1,160 |
Fair value of plan assets | $920 | $898 |
Pension_Postretirement_Health_4
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Components of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Pension Benefits [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Service cost | $5 | [1] | $5 | [1] | $3 | [1] |
Other Postretirement Benefits [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Service cost | 3 | [1] | 4 | [1] | 4 | [1] |
Recognized actuarial gain due to curtailments | -5 | ' | ' | |||
U.S. Plans [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Service cost | -5 | [2] | -5 | [2] | ' | |
Interest cost | -51 | -53 | ' | |||
U.S. Plans [Member] | Pension Benefits [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Interest cost | 51 | 53 | 58 | |||
Expected return on plan assets | -78 | -72 | -71 | |||
Recognized net actuarial loss (gain) | 24 | 26 | 13 | |||
Net periodic benefit expense (recovery) | 2 | 12 | 3 | |||
U.S. Plans [Member] | Other Postretirement Benefits [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Interest cost | 5 | 7 | 7 | |||
Expected return on plan assets | -3 | -3 | -2 | |||
Amortization of prior service cost | -1 | -1 | -1 | |||
Recognized net actuarial loss (gain) | -1 | 1 | 1 | |||
Net periodic benefit expense (recovery) | -2 | 8 | 9 | |||
Non-U.S. Plans [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Interest cost | -16 | -15 | ' | |||
Non-U.S. Plans [Member] | Pension Benefits [Member] | ' | ' | ' | |||
Components of net defined benefit pension plan and postretirement benefit plan expense [Abstract] | ' | ' | ' | |||
Interest cost | 16 | 15 | 15 | |||
Expected return on plan assets | -19 | -17 | -16 | |||
Recognized net actuarial loss (gain) | 2 | 1 | ' | |||
Net periodic benefit expense (recovery) | ($1) | ($1) | ($1) | |||
[1] | Amounts for our pension plans represent general and administrative expenses. | |||||
[2] | Amounts for our U.S. pension plans represent general and administrative expenses. |
Pension_Postretirement_Health_5
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Pension plans' asset target allocations) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Health care cost trend rate [Abstract] | ' | ' |
Fixed Maturity Securities Allocation US Plan Employees | 50.00% | 50.00% |
Fixed Maturity Securities Allocation US Plan Agents | 100.00% | 80.00% |
Fixed Maturity Securities Allocation Non US Plan | 39.00% | 39.00% |
Domestic Equity Allocation U S Plan Employees | 35.00% | 35.00% |
Domestic Equity Allocation U S Plan Agents | 0.00% | 14.00% |
Domestic Equity Allocation Non US Plan | 0.00% | 0.00% |
International Equity Allocation US Plan Employees | 15.00% | 15.00% |
International Equity Allocation US Plan Agents | 0.00% | 6.00% |
International Equity Allocation Non US Plan | 0.00% | 0.00% |
Equity Securities Allocation US Plan Employees | 0.00% | 0.00% |
Equity Securities Allocation US Plan Agents | 0.00% | 0.00% |
Equity Securities Allocation Non US Plan | 58.00% | 59.00% |
Cash and Invested Cash Allocation US Plan Employees | 0.00% | 0.00% |
Cash and Invested Cash Allocation US Plan Agents | 0.00% | 0.00% |
Cash and Invested Cash Allocation Non US Plan | 3.00% | 2.00% |
Pension_Postretirement_Health_6
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Fair Value of Benefit Plan Assets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
U.S. Plans [Member] | ' | ' |
Fair Value of Benefit Plans' Assets [Abstract] | ' | ' |
Common and preferred stock | $463 | $475 |
Cash and invested cash | 40 | 18 |
Total | 1,047 | 1,043 |
Non-U.S. Plans [Member] | ' | ' |
Fair Value of Benefit Plans' Assets [Abstract] | ' | ' |
Common and preferred stock | 83 | 96 |
Cash and invested cash | 74 | 53 |
Total | 379 | 371 |
Other Postretirement Benefits [Member] | ' | ' |
Fair Value of Benefit Plans' Assets [Abstract] | ' | ' |
Other investments | 45 | 42 |
Total | 45 | 42 |
Fixed maturity securities [Member] | U.S. Plans [Member] | ' | ' |
Fair Value of Benefit Plans' Assets [Abstract] | ' | ' |
Corporate bonds | 374 | 343 |
U.S. government bonds | 133 | 145 |
Foreign government bonds | ' | 15 |
RMBS | ' | 1 |
CMBS | ' | 3 |
CDOs | ' | 1 |
State And Municipal Bonds | 37 | 42 |
Fixed maturity securities [Member] | Non-U.S. Plans [Member] | ' | ' |
Fair Value of Benefit Plans' Assets [Abstract] | ' | ' |
Corporate bonds | 40 | 35 |
U.S. government bonds | 4 | 4 |
Foreign government bonds | 174 | 179 |
CDOs | $4 | $4 |
Pension_Postretirement_Health_7
Pension, Postretirement Health Care and Life Insurance Benefit Plans (Expected Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
U.S. Plans [Member] | Qualified Plans [Member] | ' |
Estimated future benefit payments [Abstract] | ' |
2014 | $73 |
2015 | 73 |
2016 | 74 |
2017 | 71 |
2018 | 71 |
Following five years thereafter | 343 |
U.S. Plans [Member] | Nonqualified Plans [Member] | ' |
Estimated future benefit payments [Abstract] | ' |
2014 | 10 |
2015 | 10 |
2016 | 10 |
2017 | 10 |
2018 | 9 |
Following five years thereafter | 44 |
Non-U.S. Plans [Member] | Qualified Plans [Member] | ' |
Estimated future benefit payments [Abstract] | ' |
2014 | 14 |
2015 | 14 |
2016 | 15 |
2017 | 16 |
2018 | 17 |
Following five years thereafter | 94 |
Other Postretirement Benefits [Member] | ' |
Estimated future benefit payments [Abstract] | ' |
2014 | 9 |
2015 | 9 |
2016 | 9 |
2017 | 9 |
2018 | 8 |
Following five years thereafter | $35 |
Defined_Contribution_and_Defer2
Defined Contribution and Deferred Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Expenses for deferred compensation plans [Abstract] | ' | ' | ' |
Expense for the 401(k) plans and MPP | $72 | $70 | $67 |
Non-Employee Directors [Member] | ' | ' | ' |
Expenses for deferred compensation plans [Abstract] | ' | ' | ' |
Expense for the 401(k) plans and MPP | 8 | 2 | -1 |
Former Jefferson-Pilot Agents [Member] | ' | ' | ' |
Expenses for deferred compensation plans [Abstract] | ' | ' | ' |
Expense for the 401(k) plans and MPP | $2 | $3 | $4 |
Defined_Contribution_and_Defer3
Defined Contribution and Deferred Compensation Plans (Deferred Compensation Plans Liabilities and Investment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Notes to Financial Statements [Abstract] | ' | ' | ||
Total liabilities | $468 | [1] | $386 | [1] |
Investment held to fund liabilities | $153 | [2] | $135 | [2] |
[1] | Reported in other liabilities on our Consolidated Balance Sheets. | |||
[2] | Reported in other assets on our Consolidated Balance Sheets. |
Defined_Contribution_and_Defer4
Defined Contribution and Deferred Compensation Plans (Expenses for deferred compensation plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employees [Member] | ' | ' | ' |
Expenses for deferred compensation plans [Abstract] | ' | ' | ' |
Employer matching contributions | $9 | $7 | $6 |
Increase (decrease) in measurement of liabilities, net of total return swap | 14 | 7 | 1 |
Total plan expense (income) | 23 | 14 | 7 |
Agents [Member] | ' | ' | ' |
Expenses for deferred compensation plans [Abstract] | ' | ' | ' |
Employer matching contributions | 1 | 1 | 1 |
Increase (decrease) in measurement of liabilities, net of total return swap | 4 | 2 | ' |
Total plan expense (income) | $5 | $3 | $1 |
StockBased_Incentive_Compensat2
Stock-Based Incentive Compensation Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Narrative [Abstract] | ' | ' | ' |
SARs liability | $5 | $1 | ' |
Payment for SARs exercised | 1 | 0 | 0 |
2011-2013 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Maximum Contractual Term (In Years) | ' | ' | '10 years |
Vesting period (in years) | ' | ' | '3 years |
Restricted stock units granted for certain of our executive officers (in shares) | ' | ' | 221,813 |
Options granted for certain of our executive officers (in shares) | ' | ' | 459,093 |
Performance shares granted for certain of our executive officers (in shares) | ' | ' | 215,137 |
2012-2014 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Maximum Contractual Term (In Years) | ' | '10 years | ' |
Vesting period (in years) | ' | '3 years | ' |
Percentage of target award opportunities, minimum | ' | 0.00% | ' |
Percentage of target award opportunities, maximum | ' | 200.00% | ' |
Restricted stock units granted for certain of our executive officers (in shares) | ' | 766,217 | ' |
Options granted for certain of our executive officers (in shares) | ' | 903,502 | ' |
Performance shares granted for certain of our executive officers (in shares) | ' | 306,456 | ' |
2013-2015 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Maximum Contractual Term (In Years) | '10 years | ' | ' |
Vesting period (in years) | '3 years | ' | ' |
Percentage of target award opportunities, minimum | 0.00% | ' | ' |
Percentage of target award opportunities, maximum | 200.00% | ' | ' |
Restricted stock units granted for certain of our executive officers (in shares) | 583,404 | ' | ' |
Options granted for certain of our executive officers (in shares) | 1,011,365 | ' | ' |
Performance shares granted for certain of our executive officers (in shares) | 260,114 | ' | ' |
Stock options [Member] | 2011-2013 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | ' | 33.00% |
Stock options [Member] | 2012-2014 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | 35.00% | ' |
Stock options [Member] | 2013-2015 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | 35.00% | ' | ' |
Stock options with performance conditions [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Total fair value of options vested | 1 | 1 | 2 |
Total intrinsic value of options exercised | 1 | 0 | 0 |
Stock options with service conditions [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Total fair value of options vested | 6 | 4 | 7 |
Total intrinsic value of options exercised | $6 | $0 | $0 |
Performance Shares [Member] | 2011-2013 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | ' | 33.00% |
Performance Shares [Member] | 2012-2014 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | 36.00% | ' |
Performance Shares [Member] | 2013-2015 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | 36.00% | ' | ' |
Stock appreciation rights [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Vesting period (in years) | '4 years | ' | ' |
Percentage of SARs vesting each year over four-year period | 25.00% | ' | ' |
Restricted stock units [Member] | 2011-2013 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | ' | 34.00% |
Restricted stock units [Member] | 2012-2014 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | ' | 29.00% | ' |
Restricted stock units [Member] | 2013-2015 Plan [Member] | ' | ' | ' |
Narrative [Abstract] | ' | ' | ' |
Percentage of total awards granted during the year for participating executive officers | 29.00% | ' | ' |
StockBased_Incentive_Compensat3
Stock-Based Incentive Compensation Plans (Compensation expense for all stock-based incentive compensation plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | $40 | $31 | $22 |
Recognized tax benefit | 14 | 11 | 8 |
Stock options [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 9 | 8 | 8 |
Performance Shares [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 10 | 5 | 2 |
Stock appreciation rights [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 5 | 1 | ' |
Restricted Stock Units And Non-Vested Stock [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | $16 | $17 | $12 |
StockBased_Incentive_Compensat4
Stock-Based Incentive Compensation Plans (Total unrecognized compensation expense for all stock-based incentive compensation plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Unrecognized stock-based incentive compensation expense | $39 | $36 | $28 |
Stock options [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Unrecognized stock-based incentive compensation expense | 9 | 6 | 6 |
Weighted average period (in years) | '1 year 10 months 24 days | '1 year 9 months 18 days | '1 year 8 months 12 days |
Performance Shares [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Unrecognized stock-based incentive compensation expense | 9 | 9 | 4 |
Weighted average period (in years) | '1 year 6 months | '1 year 7 months 6 days | '2 years |
Stock appreciation rights [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Unrecognized stock-based incentive compensation expense | 3 | 1 | 1 |
Weighted average period (in years) | '3 years 4 months 24 days | '3 years 3 months 18 days | '3 years 4 months 24 days |
Restricted Stock Units And Non-Vested Stock [Member] | ' | ' | ' |
Employee service share-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Unrecognized stock-based incentive compensation expense | $18 | $20 | $17 |
Weighted average period (in years) | '1 year 2 months 12 days | '1 year 3 months 18 days | '1 year 8 months 12 days |
StockBased_Incentive_Compensat5
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock option incentive plans) (Details) (Stock options [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock options [Member] | ' | ' | ' |
Assumptions used for stock-based incentive compensation plans [Abstract] | ' | ' | ' |
Weighted-average fair value per option granted (in dollars per share) | $7.39 | $8.35 | $13.88 |
Dividend yield | 2.40% | 1.90% | 1.20% |
Expected volatility | 34.10% | 42.00% | 48.50% |
Risk-free interest rate, minimum | 0.60% | 0.90% | 1.40% |
Risk-free interest rate, maximum | 0.90% | 1.20% | 2.90% |
Expected life (in years) | '5 years 7 months 6 days | '5 years 9 months 18 days | '6 years 8 months 12 days |
Stock_Based_Incentive_Compensa
Stock Based Incentive Compensation Plans (Summary of activity for stock options with performance conditions) (Details) (Stock options with performance conditions [Member], USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | |
Stock options with performance conditions [Member] | ' | |
Summary of activity for stock options [Roll Forward] | ' | |
Outstanding as of beginning of year (in shares) | 1,267,595 | |
Granted - original (in shares) | 82,317 | |
Exercised (includes shares tendered) (in shares) | -65,521 | |
Forfeited or expired (in shares) | -107,417 | |
Outstanding as of end of year (in shares) | 1,176,974 | |
Vested or expected to vest as of end of year (in shares) | 1,120,709 | [1] |
Exercisable as of end of year (in shares) | 1,064,562 | |
Summary of activity for stock options, additional disclosures [Abstract] | ' | |
Weighted average exercise price as of beginning of year (in dollars per share) | $45.29 | |
Weighted average exercise price granted - original (in dollars per share) | $33.44 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $25.11 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $44.17 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $45.84 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $46.61 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $47.46 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | '3 years 7 months 21 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | '3 years 7 months 24 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | '3 years 7 months 28 days | |
Aggregate intrinsic value outstanding as of end of year | $8 | |
Aggregate intrinsic value vested or expected to vest as of end of year | 7 | [1] |
Aggregate intrinsic value exercisable as of end of year | $5 | |
[1] | Includes estimated forfeitures. |
Stock_Based_Incentive_Compensa1
Stock Based Incentive Compensation Plans (Summary of activity for stock options with service conditions) (Details) (Stock options with service conditions [Member], USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | |
Stock options with service conditions [Member] | ' | |
Summary of activity for stock options [Roll Forward] | ' | |
Outstanding as of beginning of year (in shares) | 5,515,761 | |
Granted - original (in shares) | 1,070,085 | |
Exercised (includes shares tendered) (in shares) | -1,003,571 | |
Forfeited or expired (in shares) | -653,922 | |
Outstanding as of end of year (in shares) | 4,928,353 | |
Vested or expected to vest as of end of year (in shares) | 4,641,843 | [1] |
Exercisable as of end of year (in shares) | 3,245,712 | |
Summary of activity for stock options, additional disclosures [Abstract] | ' | |
Weighted average exercise price as of beginning of year (in dollars per share) | $41.20 | |
Weighted average exercise price granted - original (in dollars per share) | $29.54 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $41.99 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $43.83 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $38.18 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $38.82 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $43.41 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | '5 years 3 months 11 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | '5 years 29 days | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | '3 years 6 months | |
Aggregate intrinsic value outstanding as of end of year | $74 | |
Aggregate intrinsic value vested or expected to vest as of end of year | 67 | [1] |
Aggregate intrinsic value exercisable as of end of year | $35 | |
[1] | Includes estimated forfeitures. |
StockBased_Incentive_Compensat6
Stock-Based Incentive Compensation Plans (Summary of activity for performance shares) (Details) (Performance Shares [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Performance Shares [Member] | ' |
Summary of activity for performance shares [Roll Forward] | ' |
Performance shares as of beginning of year (in shares) | 479,498 |
Granted (in shares) | 260,114 |
Forfeited (in shares) | -28,920 |
Performance shares as of end of year (in shares) | 710,692 |
Performance shares, additional disclosures [Abstract] | ' |
Weighted-average grant date fair value, outstanding as of beginning of year (in dollars per share) | $32.48 |
Weighted-average grant date fair value, granted (in dollars per share) | $33.60 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $32.51 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $32.74 |
StockBased_Incentive_Compensat7
Stock-Based Incentive Compensation Plans (Option price assumptions used for stock appreciation rights plan) (Details) (Stock appreciation rights [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock appreciation rights [Member] | ' | ' | ' |
Assumptions used for stock-based incentive compensation plans [Abstract] | ' | ' | ' |
Weighted-average fair value per option granted (in dollars per share) | $7.47 | $8.91 | $9.41 |
Dividend yield | 2.20% | 1.40% | 1.90% |
Expected volatility | 30.50% | 40.70% | 39.10% |
Risk-free interest rate | 1.00% | 1.30% | 2.20% |
Expected life (in years) | '5 years | '5 years | '5 years |
StockBased_Incentive_Compensat8
Stock-Based Incentive Compensation Plans (Summary of activity for stock appreciation rights plan) (Details) (Stock appreciation rights [Member], USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | |
Stock appreciation rights [Member] | ' | |
Summary of activity for stock options [Roll Forward] | ' | |
Outstanding as of beginning of year (in shares) | 569,681 | |
Granted - original (in shares) | 112,990 | |
Exercised (includes shares tendered) (in shares) | -97,722 | |
Forfeited or expired (in shares) | -230,906 | |
Outstanding as of end of year (in shares) | 354,043 | |
Vested or expected to vest as of end of year (in shares) | 335,586 | [1] |
Exercisable as of end of year (in shares) | 185,822 | |
Summary of activity for stock options, additional disclosures [Abstract] | ' | |
Weighted average exercise price as of beginning of year (in dollars per share) | $35.01 | |
Weighted average exercise price granted - original (in dollars per share) | $33.44 | |
Weighted average exercise price exercised (includes shares tendered) (in dollars per share) | $23.08 | |
Weighted average exercise price forfeited or expired (in dollars per share) | $48.39 | |
Weighted average exercise price outstanding as of end of year (in dollars per share) | $29 | |
Weighted average exercise price vested or expected to vest as of end of year (in dollars per share) | $28.89 | [1] |
Weighted average exercise price exercisable as of end of year (in dollars per share) | $27.09 | |
Weighted average remaining contractual term outstanding as of end of year (in years) | '2 years 8 months 23 days | |
Weighted average remaining contractual term vested or expected to vest as of end of year (in years) | '2 years 8 months 1 day | [1] |
Weighted average remaining contractual term exercisable as of end of year (in years) | '1 year 11 months 27 days | |
Aggregate intrinsic value outstanding as of end of year | $8 | |
Aggregate intrinsic value vested or expected to vest as of end of year | 8 | [1] |
Aggregate intrinsic value exercisable as of end of year | $5 | |
[1] | Includes estimated forfeitures. |
StockBased_Incentive_Compensat9
Stock-Based Incentive Compensation Plans (Summary of activity for restricted stock units) (Details) (Restricted stock units [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted stock units [Member] | ' |
Summary of activity for restricted stock units [Roll Forward] | ' |
Outstanding as of beginning of year (in shares) | 1,716,407 |
Granted (in shares) | 583,404 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Units Vested In Period | -588,217 |
Share Based Compensation Arrangement By Share Based Payment Award Restricted Stock Units Forfeited In Period | -81,187 |
Outstanding as of end of year (in shares) | 1,630,407 |
Restricted stock units, additional disclosures [Abstract] | ' |
Weighted-average grant date fair value, RSU, outstanding as of beginning of period (in dollars per share) | $26.49 |
Weighted-average grant date fair value, granted (in dollars per share) | $30.53 |
Weighted-average grant date fair value, vested (in dollars per share) | $25.26 |
Weighted-average grant date fair value, forfeited (in dollars per share) | $27.08 |
Weighted-average grant date fair value, outstanding as of end of year (in dollars per share) | $28.24 |
Statutory_Information_and_Rest2
Statutory Information and Restrictions (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Notes to Financial Statements [Abstract] | ' |
RBC Ratio Company Action Level Low End | 75.00% |
RBC Ratio Company Action Level High End | 100.00% |
Current Period Increase In Reserves | $90 |
Increase In Reserves Each Year Over Remaining Years | 90 |
Amount of dividends that could be paid in the next year without prior approval | $750 |
Indiana Statutory Limitation As A Percentage of The Insurer Contract Holder Surplus | 10.00% |
Statutory_Information_and_Rest3
Statutory Information and Restrictions (Statutory Capital and Surplus) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Notes to Financial Statements [Abstract] | ' | ' |
U.S. capital and surplus | $7,484 | $6,715 |
Statutory_Information_and_Rest4
Statutory Information and Restrictions (Net Gain Loss From Operations, Net Income Loss, Dividends to LNC Holding Company) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Notes to Financial Statements [Abstract] | ' | ' | ' |
U.S. net gain from operations, after-tax | $494 | $736 | $323 |
U.S. net income (loss) | 561 | 681 | 135 |
U.S. dividends to LNC Parent Company | $725 | $635 | $818 |
Statutory_Information_and_Rest5
Statutory Information and Restrictions (Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Calculation of reserves using the Indiana universal life method [Member] | ' | ' |
Statutory accounting practices [Line Items] | ' | ' |
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $219 | $249 |
Calculation of reserves using continuous CARVM [Member] | ' | ' |
Statutory accounting practices [Line Items] | ' | ' |
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | -2 | -2 |
Conservative valuation rate on certain variable annuities [Member] | ' | ' |
Statutory accounting practices [Line Items] | ' | ' |
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | -30 | -26 |
Lesser of LOC and XXX additional reserve as surplus [Member] | ' | ' |
Statutory accounting practices [Line Items] | ' | ' |
Effects on statutory surplus compared to NAIC statutory surplus from the use of prescribed and permitted practices | $2,635 | $2,483 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Carrying and Estimated Fair Values of Financial Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
AFS securities: | ' | ' | ||
Fixed maturity securities | $80,078 | $82,036 | ||
VIEs' fixed maturity securities | 697 | 708 | ||
Equity securities | 201 | 157 | ||
Trading Securities | 2,282 | 2,554 | ||
Mortgage loans on real estate | 7,210 | 7,029 | ||
Derivative investments | 881 | 2,652 | ||
Other investments | 1,218 | 1,098 | ||
Other liabilities | ' | ' | ||
Benefit Plans' Assets | 1,471 | 1,456 | ||
Parent Company [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
Derivative investments | 264 | 389 | ||
Other investments | 55 | 30 | ||
Carrying Value - Fair Value Disclosure | ' | ' | ||
AFS securities: | ' | ' | ||
Trading Securities | 2,282 | 2,554 | ||
Mortgage loans on real estate | 7,210 | 7,029 | ||
Derivative investments | 881 | [1] | 2,652 | [1] |
Other investments | 1,218 | 1,098 | ||
Cash and invested cash | 2,364 | 4,230 | ||
Separate account assets | 117,135 | 95,373 | ||
Future contract benefits: | ' | ' | ||
Indexed annuity contracts embedded derivatives | -1,048 | -732 | ||
GLB reserves embedded derivatives | 1,244 | -909 | ||
Other contract holder funds: | ' | ' | ||
Remaining guaranteed interest and similar contracts | -809 | -867 | ||
Account values of certain investment contracts | -29,078 | -28,540 | ||
Short-term debt | -501 | [2] | -200 | [2] |
Long-term debt | -5,320 | -5,439 | ||
Reinsurance related embedded derivatives | -108 | [2] | -215 | [2] |
VIEs' liabilities - derivative instruments | -27 | -128 | ||
Other liabilities | ' | ' | ||
Credit default swaps | -2 | -11 | ||
Derivative liabilities | -187 | [1] | ' | |
Benefit Plans' Assets | 1,471 | [3] | 1,456 | [3] |
Carrying Value - Fair Value Disclosure | Fixed maturity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
Fixed maturity securities | 80,078 | 82,036 | ||
Carrying Value - Fair Value Disclosure | VIEs' fixed maturity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
VIEs' fixed maturity securities | 697 | 708 | ||
Carrying Value - Fair Value Disclosure | Equity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
Equity securities | 201 | 157 | ||
Fair Value | ' | ' | ||
AFS securities: | ' | ' | ||
Trading Securities | 2,282 | 2,554 | ||
Mortgage loans on real estate | 7,386 | 7,704 | ||
Derivative investments | 881 | [1] | 2,652 | [1] |
Other investments | 1,218 | 1,098 | ||
Cash and invested cash | 2,364 | 4,230 | ||
Separate account assets | 117,135 | 95,373 | ||
Future contract benefits: | ' | ' | ||
Indexed annuity contracts embedded derivatives | -1,048 | -732 | ||
GLB reserves embedded derivatives | 1,244 | -909 | ||
Other contract holder funds: | ' | ' | ||
Remaining guaranteed interest and similar contracts | -809 | -867 | ||
Account values of certain investment contracts | -30,574 | -32,688 | ||
Short-term debt | -500 | [2] | -204 | [2] |
Long-term debt | -5,762 | -5,824 | ||
Reinsurance related embedded derivatives | -108 | [2] | -215 | [2] |
VIEs' liabilities - derivative instruments | -27 | -128 | ||
Other liabilities | ' | ' | ||
Credit default swaps | -2 | -11 | ||
Derivative liabilities | -187 | [1] | ' | |
Benefit Plans' Assets | 1,471 | [3] | 1,456 | [3] |
Fair Value | Fixed maturity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
Fixed maturity securities | 80,078 | 82,036 | ||
Fair Value | VIEs' fixed maturity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
VIEs' fixed maturity securities | 697 | 708 | ||
Fair Value | Equity securities [Member] | ' | ' | ||
AFS securities: | ' | ' | ||
Equity securities | $201 | $157 | ||
[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. | |||
[2] | The difference between the carrying value and fair value of short-term debt as of December 31, 2013 and 2012, related to current maturities of long-term debt. | |||
[3] | Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for additional detail. |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Fair Value of Assets and Liabilities on a Recurring Basis) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | $205,859 | $187,710 | |
Liabilities measured at fair value | -2,308 | -3,198 | |
Benefit Plans' Assets | 1,471 | 1,456 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 2,318 | 2,181 | |
Benefit Plans' Assets | 114 | 116 | |
Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 198,482 | 181,474 | |
Liabilities measured at fair value | -2,223 | -1,418 | |
Benefit Plans' Assets | 1,357 | 1,340 | |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 5,059 | 4,055 | |
Liabilities measured at fair value | -85 | -1,780 | |
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 68,935 | 68,016 | |
Corporate bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 60 | 65 | |
Corporate bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 67,164 | 66,446 | |
Corporate bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1,711 | 1,505 | |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 367 | 442 | |
U.S. government bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 346 | 411 | |
U.S. government bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 21 | 30 | |
U.S. government bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | ' | 1 | |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 549 | 654 | |
Foreign government bonds [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 470 | 608 | |
Foreign government bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 79 | 46 | |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 4,350 | 6,171 | |
RMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 4,349 | 6,168 | |
RMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1 | 3 | |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 728 | 1,003 | |
CMBS [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 708 | 976 | |
CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 20 | 27 | |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 225 | 180 | |
CLOs [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 46 | 26 | |
CLOs [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 179 | 154 | |
State, municipalities and political subdivisions [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 3,919 | 4,353 | |
State, municipalities and political subdivisions [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 3,891 | 4,321 | |
State, municipalities and political subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 28 | 32 | |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1,005 | 1,217 | |
Hybrid and redeemable preferred securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 40 | 30 | |
Hybrid and redeemable preferred securities [Member] | Significant Observable Inputs (Level 2) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 899 | 1,069 | |
Hybrid and redeemable preferred securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 66 | 118 | |
VIEs' fixed maturity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 697 | 708 | |
VIEs' fixed maturity securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 102 | 110 | |
VIEs' fixed maturity securities [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 595 | 598 | |
Equity securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 201 | 157 | |
Equity securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 3 | 44 | |
Equity securities [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 37 | 26 | |
Equity securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 161 | 87 | |
Trading securities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 2,282 | 2,554 | |
Trading securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | ' | 2 | |
Trading securities [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 2,230 | 2,496 | |
Trading securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 52 | 56 | |
Derivative investments [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1,858 | [1] | 2,652 |
Derivative investments [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 340 | [1] | 626 |
Derivative investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1,518 | [1] | 2,026 |
Cash and invested cash [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 2,364 | 4,230 | |
Cash and invested cash [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 2,364 | 4,230 | |
Separate Account Assets [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 117,135 | 95,373 | |
Separate Account Assets [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 1,767 | 1,519 | |
Separate Account Assets [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Assets measured at fair value | 115,368 | 93,854 | |
Indexed annuity and universal life contracts embedded derivatives [Member] | Future contract benefits [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -1,048 | -732 | |
Indexed annuity and universal life contracts embedded derivatives [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future contract benefits [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -1,048 | -732 | |
GLB embedded derivative reserves [Member] | Future contract benefits [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | 1,244 | -909 | |
GLB embedded derivative reserves [Member] | Significant Unobservable Inputs (Level 3) [Member] | Future contract benefits [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | 1,244 | -909 | |
Long-term debt [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -1,203 | -1,203 | |
Long-term debt [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -1,203 | -1,203 | |
Reinsurance related [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -108 | -215 | |
Reinsurance related [Member] | Significant Observable Inputs (Level 2) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -108 | -215 | |
VIEs' liabilities - derivative instruments [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -27 | -128 | |
VIEs' liabilities - derivative instruments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -27 | -128 | |
Credit default swaps [Member] | Other liabilities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -2 | -11 | |
Credit default swaps [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other liabilities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -2 | -11 | |
Derivative liabilities [Member] | Other liabilities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -1,164 | [1] | ' |
Derivative liabilities [Member] | Significant Observable Inputs (Level 2) [Member] | Other liabilities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | -912 | [1] | ' |
Derivative liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other liabilities [Member] | ' | ' | |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ' | ' | |
Liabilities measured at fair value | ($252) | [1] | ' |
[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_of_Financial_Instru4
Fair Value of Financial Instruments (Fair Value Measured On A Recurring Basis Reconciliation) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | $2,275 | $2,051 | $2,983 | |||
Items Included in Net Income | 1,210 | 501 | -1,434 | |||
Gains (Losses) in OCI and Other | 109 | [1] | 262 | [1] | 446 | [1] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 316 | 349 | -56 | |||
Transfers In or Out of Level 3, Net | -180 | [2] | -888 | [2] | 112 | [2] |
Ending Fair Value | 3,730 | 2,275 | 2,051 | |||
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 1,505 | [3] | 1,888 | [3] | 1,816 | [3] |
Items Included in Net Income | -18 | [3] | -27 | [3] | 2 | [3] |
Gains (Losses) in OCI and Other | -1 | [1],[3] | 34 | [1],[3] | 42 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 345 | [3] | 266 | [3] | -138 | [3] |
Transfers In or Out of Level 3, Net | -120 | [2],[3] | -656 | [2],[3] | 166 | [2],[3] |
Ending Fair Value | 1,711 | [3] | 1,505 | [3] | 1,888 | [3] |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 1 | [3] | 1 | [3] | 2 | [3] |
Items Included in Net Income | ' | ' | [3] | ' | ||
Gains (Losses) in OCI and Other | ' | ' | [1],[3] | ' | ||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -1 | [3] | ' | [3] | -1 | [3] |
Transfers In or Out of Level 3, Net | ' | ' | [2],[3] | ' | ||
Ending Fair Value | ' | 1 | [3] | 1 | [3] | |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 46 | [3] | 97 | [3] | 113 | [3] |
Gains (Losses) in OCI and Other | ' | ' | 4 | [1],[3] | ||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 33 | [3] | -5 | [3] | -3 | [3] |
Transfers In or Out of Level 3, Net | ' | -46 | [2],[3] | -17 | [2],[3] | |
Ending Fair Value | 79 | [3] | 46 | [3] | 97 | [3] |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 3 | [3] | 158 | [3] | 119 | [3] |
Items Included in Net Income | ' | -3 | [3] | -3 | [3] | |
Gains (Losses) in OCI and Other | ' | 3 | [1],[3] | 7 | [1],[3] | |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -2 | [3] | -8 | [3] | 35 | [3] |
Transfers In or Out of Level 3, Net | ' | -147 | [2],[3] | ' | ||
Ending Fair Value | 1 | [3] | 3 | [3] | 158 | [3] |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 27 | [3] | 34 | [3] | 109 | [3] |
Items Included in Net Income | 1 | [3] | -11 | [3] | -62 | [3] |
Gains (Losses) in OCI and Other | 6 | [1],[3] | 18 | [1],[3] | 62 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -6 | [3] | -12 | [3] | -78 | [3] |
Transfers In or Out of Level 3, Net | -8 | [2],[3] | -2 | [2],[3] | 3 | [2],[3] |
Ending Fair Value | 20 | [3] | 27 | [3] | 34 | [3] |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 154 | [3] | 102 | [3] | 172 | [3] |
Items Included in Net Income | -1 | [3] | -2 | [3] | 19 | [3] |
Gains (Losses) in OCI and Other | 4 | [1],[3] | 8 | [1],[3] | -17 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 50 | [3] | 61 | [3] | -72 | [3] |
Transfers In or Out of Level 3, Net | -28 | [2],[3] | -15 | [2],[3] | ' | |
Ending Fair Value | 179 | [3] | 154 | [3] | 102 | [3] |
State, municipalities and political subdivisions [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 32 | [3] | ' | ' | ||
Gains (Losses) in OCI and Other | -4 | [1],[3] | ' | ' | ||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | ' | 32 | [3] | ' | ||
Ending Fair Value | 28 | [3] | 32 | [3] | ' | |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 118 | [3] | 100 | [3] | 119 | [3] |
Items Included in Net Income | ' | -1 | [3] | -1 | [3] | |
Gains (Losses) in OCI and Other | 13 | [1],[3] | 24 | [1],[3] | -6 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -35 | [3] | ' | -9 | [3] | |
Transfers In or Out of Level 3, Net | -30 | [2],[3] | -5 | [2],[3] | -3 | [2],[3] |
Ending Fair Value | 66 | [3] | 118 | [3] | 100 | [3] |
Equity securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 87 | [3] | 56 | [3] | 92 | [3] |
Items Included in Net Income | -1 | [3] | -8 | [3] | 8 | [3] |
Gains (Losses) in OCI and Other | 2 | [1],[3] | 13 | [1],[3] | -12 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 73 | [3] | 26 | [3] | 1 | [3] |
Transfers In or Out of Level 3, Net | ' | ' | -33 | [2],[3] | ||
Ending Fair Value | 161 | [3] | 87 | [3] | 56 | [3] |
Trading securities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 56 | [3] | 68 | [3] | 76 | [3] |
Items Included in Net Income | 3 | [3] | 3 | [3] | 1 | [3] |
Gains (Losses) in OCI and Other | -7 | [1],[3] | 4 | [1],[3] | 3 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -6 | [3] | -2 | [3] | -8 | [3] |
Transfers In or Out of Level 3, Net | 6 | [2],[3] | -17 | [2],[3] | -4 | [2],[3] |
Ending Fair Value | 52 | [3] | 56 | [3] | 68 | [3] |
Derivative investments [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | 2,026 | [3] | 2,470 | [3] | 1,495 | [3] |
Items Included in Net Income | -681 | [3] | -790 | [3] | 495 | [3] |
Gains (Losses) in OCI and Other | 96 | [1],[3] | 158 | [1],[3] | 363 | [1],[3] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | -175 | [3] | 188 | [3] | 117 | [3] |
Ending Fair Value | 1,266 | [3] | 2,026 | [3] | 2,470 | [3] |
Indexed annuity and universal life contracts embedded derivatives [Member] | Future contract benefits [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | -732 | [4] | -399 | [4] | -497 | [4] |
Items Included in Net Income | -356 | [4] | -136 | [4] | 5 | [4] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | 40 | [4] | -197 | [4] | 93 | [4] |
Ending Fair Value | -1,048 | [4] | -732 | [4] | -399 | [4] |
GLB embedded derivative reserves [Member] | Future contract benefits [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | -909 | [4] | -2,217 | [4] | -408 | [4] |
Items Included in Net Income | 2,153 | [4] | 1,308 | [4] | -1,809 | [4] |
Ending Fair Value | 1,244 | [4] | -909 | [4] | -2,217 | [4] |
VIEs' liabilities - derivative instruments [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | -128 | [5] | -291 | [5] | -209 | [5] |
Items Included in Net Income | 101 | [5] | 163 | [5] | -82 | [5] |
Ending Fair Value | -27 | [5] | -128 | [5] | -291 | [5] |
Credit default swaps [Member] | Other liabilities [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | -11 | [6] | -16 | [6] | -16 | [6] |
Items Included in Net Income | 9 | [6] | 5 | [6] | -7 | [6] |
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | ' | ' | 7 | [6] | ||
Ending Fair Value | -2 | [6] | -11 | [6] | -16 | [6] |
Benefit Plans Assets [Member] | ' | ' | ' | |||
Level 3 Unobservable Input Reconciliation | ' | ' | ' | |||
Beginning Fair Value | ' | ' | 40 | [7] | ||
Items Included in Net Income | ' | ' | 2 | [7] | ||
Gains (Losses) in OCI and Other | ' | ' | -3 | [1],[7] | ||
Purchases, Issuances, Sales, Maturities, Settlements, Calls, Net | ' | ' | ($39) | [7] | ||
[1] | The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6). | |||||
[2] | Transfers in or out of Level 3 for AFS and trading securities are displayed at amortized cost as of the beginning-of-year. For AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in prior years. | |||||
[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] | Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[5] | 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). | |||||
[6] | Gains (losses) from sales, maturities, settlements and calls are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss).The expected return on plan assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[7] | The expected return on plan assets is reported in commissions and other expenses on our Consolidated Statements of Comprehensive Income (Loss). |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Schedule Of Investment Holdings Movements) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | $849 | $849 | $653 |
Sales | -117 | -58 | -339 |
Maturities | -369 | -256 | -293 |
Settlements | 25 | -179 | 14 |
Calls | -72 | -7 | -91 |
Total | 316 | 349 | -56 |
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | 563 | 364 | 237 |
Sales | -51 | -30 | -216 |
Maturities | -47 | -6 | -16 |
Settlements | -50 | -55 | -54 |
Calls | -70 | -7 | -89 |
Total | 345 | 266 | -138 |
U.S. government bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Settlements | -1 | ' | -1 |
Total | -1 | ' | -1 |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | 50 | ' | ' |
Sales | ' | ' | -2 |
Maturities | -17 | -5 | ' |
Calls | ' | ' | -1 |
Total | 33 | -5 | -3 |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | ' | ' | 51 |
Sales | ' | ' | -1 |
Maturities | ' | -7 | ' |
Settlements | -2 | -1 | -15 |
Total | -2 | -8 | 35 |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Sales | ' | ' | -53 |
Settlements | -4 | -12 | -24 |
Calls | -2 | ' | -1 |
Total | -6 | -12 | -78 |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | 74 | 72 | ' |
Sales | ' | ' | -33 |
Settlements | -24 | -11 | -39 |
Total | 50 | 61 | -72 |
State, municipalities and political subdivisions [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | ' | 32 | ' |
Total | ' | 32 | ' |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | ' | ' | 9 |
Sales | -35 | ' | -18 |
Total | -35 | ' | -9 |
Equity securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | 78 | 26 | 19 |
Sales | -5 | ' | -18 |
Total | 73 | 26 | 1 |
Trading securities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Sales | -3 | ' | -3 |
Maturities | -1 | ' | ' |
Settlements | -2 | -2 | -5 |
Total | -6 | -2 | -8 |
Derivative investments [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | 152 | 454 | 396 |
Sales | -23 | -28 | -2 |
Maturities | -304 | -238 | -277 |
Total | -175 | 188 | 117 |
Indexed annuity and universal life contracts embedded derivatives [Member] | Future contract benefits [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Issuances | -68 | -99 | -59 |
Settlements | 108 | -98 | 152 |
Total | 40 | -197 | 93 |
Credit default swaps [Member] | Other liabilities [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Sales | ' | ' | 7 |
Total | ' | ' | 7 |
Benefit Plans Assets [Member] | ' | ' | ' |
Fair Value Investments Entities That Calculate Net Asset Value Per Share Unobservable Input Investment Holdings Movements [Abstract] | ' | ' | ' |
Sales | ' | ' | -22 |
Maturities | ' | ' | -17 |
Total | ' | ' | ($39) |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments (Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Total, net | $1,758 | $2,454 | ($1,234) | |||
Derivative investments [Member] | ' | ' | ' | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Change in unrealized gains (losses) included in realized gain (loss) | -752 | [1] | 823 | [1] | 472 | [1] |
VIEs' liabilities - derivative instruments [Member] | ' | ' | ' | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Change in unrealized gains (losses) included in realized gain (loss) | 101 | [1] | 163 | [1] | -82 | [1] |
Credit default swaps [Member] | ' | ' | ' | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Change in unrealized gains (losses) included in investment income | 9 | [2] | 6 | [2] | -8 | [2] |
Future contract benefits [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | ' | ' | ' | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Change in unrealized gains (losses) included in realized gain (loss) | -44 | [1] | -10 | [1] | -1 | [1] |
Future contract benefits [Member] | GLB embedded derivative reserves [Member] | ' | ' | ' | |||
Changes in unrealized gains (losses) within Level 3 financial instruments carried at fair value and still held | ' | ' | ' | |||
Change in unrealized gains (losses) included in realized gain (loss) | $2,444 | [1] | $1,472 | [1] | ($1,615) | [1] |
[1] | Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss). | |||||
[2] | Included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). |
Fair_Value_of_Financial_Instru7
Fair Value of Financial Instruments (Components Of The Transfers In And Out Of Level 3) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | $401 | $83 | $274 |
Transfers Out of Level 3 | -581 | -971 | -162 |
Transfers In or Out of Level 3, Net | -180 | -888 | 112 |
Corporate bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | 373 | 35 | 249 |
Transfers Out of Level 3 | -493 | -691 | -83 |
Transfers In or Out of Level 3, Net | -120 | -656 | 166 |
Foreign government bonds [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers Out of Level 3 | ' | -46 | -17 |
Transfers In or Out of Level 3, Net | ' | -46 | -17 |
RMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers Out of Level 3 | ' | -147 | ' |
Transfers In or Out of Level 3, Net | ' | -147 | ' |
CMBS [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | ' | 5 | 4 |
Transfers Out of Level 3 | -8 | -7 | -1 |
Transfers In or Out of Level 3, Net | -8 | -2 | 3 |
CLOs [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | ' | 6 | ' |
Transfers Out of Level 3 | -28 | -21 | ' |
Transfers In or Out of Level 3, Net | -28 | -15 | ' |
Hybrid and redeemable preferred securities [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | 20 | 35 | 18 |
Transfers Out of Level 3 | -50 | -40 | -21 |
Transfers In or Out of Level 3, Net | -30 | -5 | -3 |
Equity securities [Member] | Fixed maturity securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | ' | ' | 2 |
Transfers Out of Level 3 | ' | ' | -35 |
Transfers In or Out of Level 3, Net | ' | ' | -33 |
Trading securities [Member] | ' | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' | ' |
Transfers In to Level 3 | 8 | 2 | 1 |
Transfers Out of Level 3 | -2 | -19 | -5 |
Transfers In or Out of Level 3, Net | $6 | ($17) | ($4) |
Fair_Value_of_Financial_Instru8
Fair Value of Financial Instruments (Fair Value Inputs Quantitative Information) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | Discounted Cash Flow Valuation Technique [Member] | |||||
Corporate bonds [Member] | Foreign government bonds [Member] | Hybrid and redeemable preferred securities [Member] | Equity securities [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | GLB Embedded Derivative Reserves [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||||
Fixed maturity securities [Member] | Fixed maturity securities [Member] | Fixed maturity securities [Member] | Future contract benefits [Member] | Corporate bonds [Member] | Foreign government bonds [Member] | Equity securities [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | GLB Embedded Derivative Reserves [Member] | Corporate bonds [Member] | Foreign government bonds [Member] | Equity securities [Member] | Indexed annuity and universal life contracts embedded derivatives [Member] | GLB Embedded Derivative Reserves [Member] | |||||||
Fixed maturity securities [Member] | Fixed maturity securities [Member] | Future contract benefits [Member] | Fixed maturity securities [Member] | Fixed maturity securities [Member] | Future contract benefits [Member] | |||||||||||||||
Assets Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets Fair Value Disclosure | $205,859 | $187,710 | $5,059 | $4,055 | $1,082 | $79 | $20 | $28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity Duration Adjustment | ' | ' | ' | ' | ' | ' | 2.40% | ' | ' | ' | 0.80% | 2.30% | 4.30% | ' | ' | 10.60% | 3.90% | 5.90% | ' | ' |
Liabilities Fair Value Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities measured at fair value | ($2,308) | ($3,198) | ($85) | ($1,780) | ' | ' | ' | ' | ($1,048) | $1,244 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Inputs [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lapse rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 1.00% | ' | ' | ' | 15.00% | 27.00% |
Utilization of guaranteed withdrawal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 90.00% | ' | ' | ' | ' | 100.00% |
Claims utilization factor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | 100.00% |
Premiums utilization Factor | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77.00% | ' | ' | ' | ' | 132.00% |
NPR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | 0.53% |
Volatility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | 28.00% |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment Information [Abstract] | ' |
Federal rate | 35.00% |
Segment_Information_Reconcilia
Segment Information (Reconciliation Of Revenue From Segments To Consolidated) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $3,122 | $3,009 | $2,999 | $2,839 | $2,973 | $2,954 | $2,898 | $2,710 | $11,969 | $11,535 | $10,641 |
Annuities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,321 | 2,975 | 2,871 |
Retirement Plan Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,071 | 1,024 | 1,017 |
Life Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5,170 | 5,056 | 4,740 |
Group Protection [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 2,260 | 2,091 | 1,938 |
Other Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 417 | 423 | 461 |
Excluded realized gain (loss) pre-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | -274 | -39 | -388 |
Amortization of deferred gain arising from reserve changes on business sold through reinsurance, pre-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 4 | 2 |
Amortization Of DFEL associated with benefit ratio unlocking, pre-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $849 | $783 | $1,024 |
Segment_Information_Reconcilia1
Segment Information (Reconciliation Of Income (Loss) From Operations By Segment To Consolidated Net Income (Loss)) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | $320 | $400 | $322 | $244 | $1,244 | $1,286 | $229 |
Income (loss) from discontinued operations, after-tax | ' | ' | ' | ' | ' | 28 | ' | -1 | ' | 27 | -8 |
Net income (loss) | 351 | 337 | 317 | 239 | 320 | 428 | 322 | 243 | 1,244 | 1,313 | 221 |
Annuities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 750 | 595 | 573 |
Retirement Plan Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 141 | 130 | 163 |
Life Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 544 | 574 | 559 |
Group Protection [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 71 | 72 | 97 |
Other Operations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -122 | -87 | -146 |
Excluded realized gain (loss), after-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | -178 | -25 | -252 |
Gain (loss) on early extinguishment of debt, after-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -5 |
Income (loss) from reserve changes (net of related amortization) on business sold through reinsurance, after-tax [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 3 | 2 |
Impairment of intangibles, after-tax, reconciling item [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | -747 |
Benefit ratio unlocking, after-tax, reconciling item [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | 36 | 25 | -15 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reconciliation of Net Income (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $1,244 | $1,313 | $221 |
Segment_Information_Reconcilia2
Segment Information (Reconciliation of Net Investment Income from Segments to Consolidated Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | $4,754 | $4,698 | $4,652 |
Parent Company [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | ' | 1 | 2 |
Annuities [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | 1,044 | 1,082 | 1,106 |
Retirement Plan Services [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | 827 | 799 | 792 |
Life Insurance [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | 2,452 | 2,396 | 2,294 |
Group Protection [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | 165 | 162 | 152 |
Other Operations [Member] | ' | ' | ' |
Net Investment Income [Abstract] | ' | ' | ' |
Total net investment income | $266 | $259 | $308 |
Segment_Information_Reconcilia3
Segment Information (Reconciliation of Amortization of DAC and VOBA, Net of Interest from Segments to Consolidated Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Amortization of DAC and VOBA, Net of Interest | ' | ' | ' |
Amortization of DAC and VOBA, net of interest | $931 | $1,026 | $846 |
Annuities [Member] | ' | ' | ' |
Amortization of DAC and VOBA, Net of Interest | ' | ' | ' |
Amortization of DAC and VOBA, net of interest | 383 | 321 | 351 |
Retirement Plan Services [Member] | ' | ' | ' |
Amortization of DAC and VOBA, Net of Interest | ' | ' | ' |
Amortization of DAC and VOBA, net of interest | 48 | 42 | 33 |
Life Insurance [Member] | ' | ' | ' |
Amortization of DAC and VOBA, Net of Interest | ' | ' | ' |
Amortization of DAC and VOBA, net of interest | 447 | 614 | 423 |
Group Protection [Member] | ' | ' | ' |
Amortization of DAC and VOBA, Net of Interest | ' | ' | ' |
Amortization of DAC and VOBA, net of interest | $53 | $49 | $39 |
Segment_Information_Reconcilia4
Segment Information (Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated Net Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | $387 | $282 | $274 |
Parent Company [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | -73 | -85 | -68 |
Annuities [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | 177 | 121 | 104 |
Retirement Plan Services [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | 49 | 38 | 63 |
Life Insurance [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | 268 | 264 | 276 |
Group Protection [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | 38 | 39 | 52 |
Other Operations [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | -71 | -177 | -77 |
Excluded realized gain (loss) [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | -95 | -14 | -136 |
Gain (loss) on early extinguishment of debt [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | ' | -2 | -3 |
Reserve changes (net of related amortization) on business sold through reinsurance [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | 1 | 1 | 1 |
Impairment of intangibles [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | ' | -2 | ' |
Benefit ratio unlocking [Member] | ' | ' | ' |
Reconciliation of Federal Income Tax Expense (Benefit) from Segments to Consolidated [Abstract] | ' | ' | ' |
Total federal income tax expense (benefit) | $20 | $14 | ($6) |
Segment_Information_Reconcilia5
Segment Information (Reconciliation of Assets From Segments to Consolidated Balance Sheet) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | $236,945 | $218,869 |
Parent Company [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | 20,708 | 21,432 |
Annuities [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | 120,267 | 106,906 |
Retirement Plan Services [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | 32,369 | 30,651 |
Life Insurance [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | 65,639 | 64,115 |
Group Protection [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | 3,865 | 3,733 |
Other Operations [Member] | ' | ' |
Schedule Of Segment Reporting And Reconcilliation [Line Items] | ' | ' |
Total assets | $14,805 | $13,464 |
Supplemental_Disclosures_of_Ca2
Supplemental Disclosures of Cash Flow (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of supplemental cash flow data [Abstract] | ' | ' | ' |
Interest paid | $260 | $270 | $287 |
Income taxes paid (received) | 10 | 124 | -36 |
Business dispositions: | ' | ' | ' |
Value of stock received from stock options exercised through stock swap transactions | 5 | ' | ' |
Liabilities disposed | ' | ' | -3 |
Cash received | ' | -1 | ' |
Gain (loss) on dispositions | ' | ($1) | ($3) |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total revenues | $3,122 | $3,009 | $2,999 | $2,839 | $2,973 | $2,954 | $2,898 | $2,710 | $11,969 | $11,535 | $10,641 |
Total expenses | 2,656 | 2,567 | 2,581 | 2,534 | 2,573 | 2,536 | 2,456 | 2,402 | 10,338 | 9,967 | 10,138 |
Income (loss) from continuing operations | ' | ' | ' | ' | 320 | 400 | 322 | 244 | 1,244 | 1,286 | 229 |
Income (loss) from discontinued operations, net of federal income taxes (benefit) | ' | ' | ' | ' | ' | 28 | ' | -1 | ' | 27 | -8 |
Net income (loss) | 351 | 337 | 317 | 239 | 320 | 428 | 322 | 243 | 1,244 | 1,313 | 221 |
Earnings (loss) per common share - basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations (in dollars per share) | ' | ' | ' | ' | $1.17 | $1.44 | $1.14 | $0.84 | $4.68 | $4.58 | $0.75 |
Income (loss) from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | $0.10 | ($0.03) |
Net income (loss) (in dollars per share) | $1.34 | $1.28 | $1.19 | $0.89 | $1.17 | $1.54 | $1.14 | $0.84 | $4.68 | $4.68 | $0.72 |
Earnings (loss) per common share - diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from continuing operations (in dollars per share) | ' | ' | ' | ' | $1.14 | $1.41 | $1.09 | $0.82 | $4.52 | $4.47 | $0.72 |
Income (loss) from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | $0.10 | ' | ' | ' | $0.09 | ($0.03) |
Net income (loss) (in dollars per share) | $1.29 | $1.23 | $1.15 | $0.86 | $1.14 | $1.51 | $1.09 | $0.82 | $4.52 | $4.56 | $0.69 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 849 | 783 | 1,024 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 333 | 306 | 342 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $1,244 | $1,313 | $221 |
SCHEDULE_I_CONSOLIDATED_SUMMAR1
SCHEDULE I - CONSOLIDATED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) (USD $) | Dec. 31, 2013 | |
In Millions, unless otherwise specified | ||
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | $92,104 | |
Carrying Value | 95,291 | |
Derivative instruments [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Derivative liabilities | 187 | |
Fixed maturity AFS securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 77,035 | |
Fair Value | 80,775 | |
Carrying Value | 80,775 | |
Fixed maturity AFS securities [Member] | Hybrid and redeemable preferred securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 967 | |
Fair Value | 1,005 | |
Carrying Value | 1,005 | |
Fixed maturity AFS securities [Member] | Variable interest entities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 682 | |
Fair Value | 697 | |
Carrying Value | 697 | |
Equity AFS securities [Member] | Trading securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 2,027 | |
Fair Value | 2,282 | |
Carrying Value | 2,282 | |
Equity AFS securities [Member] | Mortgage loans on real estate [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 7,210 | |
Fair Value | 7,386 | |
Carrying Value | 7,210 | |
Equity AFS securities [Member] | Real estate [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 47 | |
Carrying Value | 47 | |
Equity AFS securities [Member] | Policy loans [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 2,677 | |
Carrying Value | 2,677 | |
Equity AFS securities [Member] | Derivative instruments [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 1,708 | [1] |
Fair Value | 881 | [1] |
Carrying Value | 881 | [1] |
Equity AFS securities [Member] | Other investments [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 1,218 | |
Fair Value | 1,218 | |
Carrying Value | 1,218 | |
Bonds | Fixed maturity AFS securities [Member] | U.S. government and government agencies and authorities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 355 | |
Fair Value | 367 | |
Carrying Value | 367 | |
Bonds | Fixed maturity AFS securities [Member] | State, municipalities and political subdivisions [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 3,638 | |
Fair Value | 3,919 | |
Carrying Value | 3,919 | |
Bonds | Fixed maturity AFS securities [Member] | Mortgage-backed securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 4,848 | |
Fair Value | 5,078 | |
Carrying Value | 5,078 | |
Bonds | Fixed maturity AFS securities [Member] | Foreign governments [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 505 | |
Fair Value | 549 | |
Carrying Value | 549 | |
Bonds | Fixed maturity AFS securities [Member] | Public utilities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 12,997 | |
Fair Value | 13,653 | |
Carrying Value | 13,653 | |
Bonds | Fixed maturity AFS securities [Member] | All other corporate bonds [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 53,043 | |
Fair Value | 55,507 | |
Carrying Value | 55,507 | |
Common Stock | Equity AFS securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 182 | |
Fair Value | 201 | |
Carrying Value | 201 | |
Common Stock | Equity AFS securities [Member] | Banks, trusts, and insurance companies [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 157 | |
Fair Value | 164 | |
Carrying Value | 164 | |
Common Stock | Equity AFS securities [Member] | Industrial, miscellaneous and all other [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 2 | |
Fair Value | 4 | |
Carrying Value | 4 | |
Common Stock | Equity AFS securities [Member] | Nonredeemable preferred securities [Member] | ' | |
Summary of investments, other than investments in related parties [Line Items] | ' | |
Cost | 23 | |
Fair Value | 33 | |
Carrying Value | $33 | |
[1] | Derivative investment assets were offset by $187 million in derivative liabilities reflected in other liabilities on our Consolidated Balance Sheets |
SCHEDULE_II_CONDENSED_FINANCIA1
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Balance Sheets) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Assets | ' | ' | ' | ' | ||
Derivative investments | $881 | $2,652 | ' | ' | ||
Other investments | 1,218 | 1,098 | ' | ' | ||
Cash and invested cash | 2,364 | 4,230 | 4,510 | 2,741 | ||
Other assets | 2,730 | 2,580 | ' | ' | ||
Total assets | 236,945 | 218,869 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Short-term debt | 501 | 200 | ' | ' | ||
Long-term debt | 5,320 | 5,439 | ' | ' | ||
Payables for collateral on investments | 3,238 | 4,181 | ' | ' | ||
Other liabilities | 4,253 | 5,103 | ' | ' | ||
Total liabilities | 223,493 | 203,896 | ' | ' | ||
Contingencies and Commitments | ' | ' | ' | ' | ||
Stockholders Equity | ' | ' | ' | ' | ||
Preferred stock - 10,000,000 shares authorized; Series A | 0 | 0 | ' | ' | ||
Common stock - 800,000,000 shares authorized | 6,876 | 7,121 | ' | ' | ||
Retained earnings | 5,013 | 4,044 | ' | ' | ||
Accumulated other comprehensive income (loss) | 1,563 | 3,808 | ' | ' | ||
Total stockholders' equity | 13,452 | 14,973 | 13,101 | ' | ||
Total Liabilities and Stockholders' Equity | 236,945 | 218,869 | ' | ' | ||
Parent Company [Member] | ' | ' | ' | ' | ||
Assets | ' | ' | ' | ' | ||
Investments in subsidiaries | 15,782 | [1] | 17,557 | [1] | ' | ' |
Derivative investments | 264 | 389 | ' | ' | ||
Other investments | 55 | 30 | ' | ' | ||
Cash and invested cash | 1,558 | 844 | 622 | 582 | ||
Loans and accrued interest to subsidiaries | 2,995 | [1] | 2,585 | [1] | ' | ' |
Other assets | 54 | 27 | ' | ' | ||
Total assets | 20,708 | 21,432 | ' | ' | ||
Liabilities | ' | ' | ' | ' | ||
Common and preferred dividends payable | 42 | 33 | ' | ' | ||
Short-term debt | 501 | 200 | ' | ' | ||
Long-term debt | 5,571 | 5,689 | ' | ' | ||
Loans from subsidiaries | 460 | [1] | 55 | [1] | ' | ' |
Payables for collateral on investments | 374 | 59 | ' | ' | ||
Other liabilities | 308 | 423 | ' | ' | ||
Total liabilities | 7,256 | 6,459 | ' | ' | ||
Contingencies and Commitments | ' | ' | ' | ' | ||
Stockholders Equity | ' | ' | ' | ' | ||
Preferred stock - 10,000,000 shares authorized; Series A | 0 | 0 | ' | ' | ||
Common stock - 800,000,000 shares authorized | 6,876 | 7,121 | ' | ' | ||
Retained earnings | 5,013 | 4,044 | ' | ' | ||
Accumulated other comprehensive income (loss) | 1,563 | 3,808 | ' | ' | ||
Total stockholders' equity | 13,452 | 14,973 | ' | ' | ||
Total Liabilities and Stockholders' Equity | $20,708 | $21,432 | ' | ' | ||
[1] | Eliminated in consolidation. |
SCHEDULE_II_CONDENSED_FINANCIA2
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Parenthetical Information | ' | ' |
Preferred stock - shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock - shares authorized (in shares) | 800,000,000 | 800,000,000 |
SCHEDULE_II_CONDENSED_FINANCIA3
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Statements of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | $4,754 | $4,698 | $4,652 | |||
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | 520 | 491 | 477 | |||
Total revenues | 3,122 | 3,009 | 2,999 | 2,839 | 2,973 | 2,954 | 2,898 | 2,710 | 11,969 | 11,535 | 10,641 | |||
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 1,630 | 1,564 | 1,423 | |||
Total expenses | 2,656 | 2,567 | 2,581 | 2,534 | 2,573 | 2,536 | 2,456 | 2,402 | 10,338 | 9,967 | 10,138 | |||
Income (loss) before federal income tax benefit, equity in income (loss) of subsidiaries, less dividends | ' | ' | ' | ' | ' | ' | ' | ' | 1,631 | 1,568 | 503 | |||
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 387 | 282 | 274 | |||
Net income (loss) | 351 | 337 | 317 | 239 | 320 | 428 | 322 | 243 | 1,244 | 1,313 | 221 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -2,457 | 1,119 | 1,771 | |||
Unrealized other-than-temporary impairment on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -29 | -2 | -25 | |||
Unrealized gain (loss) on derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | 93 | 44 | 130 | |||
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -5 | ' | |||
Funded status of employee benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | -91 | 32 | 97 | |||
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -1,001 | 2,441 | 2,050 | |||
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 725 | [1] | 635 | [1] | 875 | [1] |
Interest from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 128 | [1] | 128 | [1] | 125 | [1] |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | |||
Realized gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -6 | -3 | |||
Other revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 25 | 25 | |||
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 849 | 783 | 1,024 | |||
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Operating and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 10 | 27 | |||
Interest - subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 5 | [1] | 5 | [1] | 5 | [1] |
Interest - other | ' | ' | ' | ' | ' | ' | ' | ' | 282 | 291 | 310 | |||
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 333 | 306 | 342 | |||
Income (loss) before federal income tax benefit, equity in income (loss) of subsidiaries, less dividends | ' | ' | ' | ' | ' | ' | ' | ' | 516 | 477 | 682 | |||
Federal income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -73 | -85 | -68 | |||
Income (loss) before equity in income (loss) of subsidiaries, less dividends | ' | ' | ' | ' | ' | ' | ' | ' | 589 | 562 | 750 | |||
Equity in income (loss) of subsidiaries, less dividends | ' | ' | ' | ' | ' | ' | ' | ' | 655 | [1] | 751 | [1] | -529 | [1] |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,244 | 1,313 | 221 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unrealized gain (loss) on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -2,457 | 1,119 | 1,771 | |||
Unrealized other-than-temporary impairment on available-for-sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 29 | 2 | 25 | |||
Unrealized gain (loss) on derivative instruments | ' | ' | ' | ' | ' | ' | ' | ' | 93 | 44 | 130 | |||
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | -1 | -5 | ' | |||
Funded status of employee benefit plans | ' | ' | ' | ' | ' | ' | ' | ' | 91 | -32 | -97 | |||
Total other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | -2,245 | 1,128 | 1,829 | |||
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | ($1,001) | $2,441 | $2,050 | |||
[1] | Eliminated in consolidation. |
SCHEDULE_II_CONDENSED_FINANCIA4
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Cash Flows Statement) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Cash Flows from Operating Activities | ' | ' | ' | |||
Net income (loss) | $1,244 | $1,313 | $221 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | |||
(Gain) loss on early extinguishment of debt | ' | -5 | -8 | |||
Other | -31 | 156 | -24 | |||
Net cash provided by (used in) operating activities | 799 | 1,269 | 1,276 | |||
Cash Flows from Investing Activities | ' | ' | ' | |||
Increase (decrease) in payables for collateral on investments | -943 | 448 | 2,074 | |||
Net cash provided by (used in) investing activities | -4,710 | -3,857 | -2,125 | |||
Cash Flows from Financing Activities | ' | ' | ' | |||
Payment of long-term debt, including current maturities | ' | -320 | -525 | |||
Issuance of long-term debt, net of issuance costs | 393 | 300 | 298 | |||
Repurchase of common stock | -450 | -492 | -575 | |||
Dividends paid to common and preferred stockholders | -128 | -91 | -61 | |||
Net cash provided by (used in) financing activities | 2,045 | 2,308 | 2,618 | |||
Net increase (decrease) in cash and invested cash | -1,866 | -280 | 1,769 | |||
Cash and invested cash as of beginning-of-year | 4,230 | 4,510 | 2,741 | |||
Cash and invested cash as of end-of-year | 2,364 | 4,230 | 4,510 | |||
Parent Company [Member] | ' | ' | ' | |||
Cash Flows from Operating Activities | ' | ' | ' | |||
Net income (loss) | 1,244 | 1,313 | 221 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' | |||
Equity in (income) loss of subsidiaries greater than distributions | -655 | [1] | -751 | [1] | 529 | [1] |
Realized (gain) loss | 9 | 6 | 3 | |||
Change in legal accruals | ' | ' | -70 | |||
Change in federal income tax accruals | 63 | 170 | 32 | |||
(Gain) loss on early extinguishment of debt | ' | 5 | 8 | |||
Other | -10 | -13 | -21 | |||
Net cash provided by (used in) operating activities | 651 | 730 | 702 | |||
Cash Flows from Investing Activities | ' | ' | ' | |||
Sales or maturities of investments | ' | ' | 105 | |||
Investment acquisition | -25 | ' | ' | |||
Capital contribution to subsidiaries | -75 | [1] | ' | -17 | [1] | |
Increase (decrease) in payables for collateral on investments | 315 | 73 | ' | |||
Net cash provided by (used in) investing activities | 215 | 73 | 88 | |||
Cash Flows from Financing Activities | ' | ' | ' | |||
Payment of long-term debt, including current maturities | ' | -320 | -525 | |||
Issuance of long-term debt, net of issuance costs | 400 | 300 | 300 | |||
Increase (decrease) in commercial paper, net | ' | ' | -100 | |||
Increase (decrease) in loans from subsidiaries, net | 405 | [1] | -3 | [1] | 58 | [1] |
Increase (decrease) in loans to subsidiaries, net | -410 | [1] | 20 | [1] | 154 | [1] |
Common stock issued for benefit plans and excess tax benefits | 32 | 5 | 1 | |||
Repurchase of common stock | -450 | -493 | -576 | |||
Dividends paid to common and preferred stockholders | -129 | -90 | -62 | |||
Net cash provided by (used in) financing activities | -152 | -581 | -750 | |||
Net increase (decrease) in cash and invested cash | 714 | 222 | 40 | |||
Cash and invested cash as of beginning-of-year | 844 | 622 | 582 | |||
Cash and invested cash as of end-of-year | $1,558 | $844 | $622 | |||
[1] | Eliminated in consolidation. |
SCHEDULE_III_CONDENSED_SUPPLEM
SCHEDULE III - CONDENSED SUPPLEMENTARY INSURANCE INFORMATION (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
DAC and VOBA | $8,886 | $6,667 | $6,776 | |||
Future Contract Benefits | 17,251 | 19,780 | 19,813 | |||
Other Contract Holder Funds | 74,548 | 72,218 | 69,466 | |||
Insurance Premiums | 2,687 | 2,462 | 2,294 | |||
Net Investment Income | 4,754 | 4,698 | 4,652 | |||
Benefits and Interest Credited | 6,372 | 6,008 | 5,833 | |||
Amortization of DAC and VOBA | 938 | 1,029 | 846 | |||
Other Operating Expenses | 3,028 | [1] | 2,917 | [1] | 2,716 | [1] |
Impairment of intangibles | 747 | ' | ' | |||
Annuities [Member] | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
DAC and VOBA | 2,770 | 2,092 | 1,912 | |||
Future Contract Benefits | 138 | 2,339 | 3,642 | |||
Other Contract Holder Funds | 21,269 | 21,108 | 20,701 | |||
Insurance Premiums | 116 | 98 | 74 | |||
Net Investment Income | 1,044 | 1,082 | 1,106 | |||
Benefits and Interest Credited | 835 | 868 | 933 | |||
Amortization of DAC and VOBA | 390 | 325 | 351 | |||
Other Operating Expenses | 1,113 | [1] | 1,018 | [1] | 933 | [1] |
Retirement Plan Services [Member] | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
DAC and VOBA | 173 | 102 | 183 | |||
Future Contract Benefits | ' | 3 | 7 | |||
Other Contract Holder Funds | 15,310 | 14,712 | 13,624 | |||
Net Investment Income | 827 | 799 | 792 | |||
Benefits and Interest Credited | 470 | 451 | 439 | |||
Amortization of DAC and VOBA | 48 | 42 | 33 | |||
Other Operating Expenses | 363 | [1] | 363 | [1] | 319 | [1] |
Life Insurance [Member] | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
DAC and VOBA | 5,713 | 4,281 | 4,516 | |||
Future Contract Benefits | 9,058 | 9,177 | 7,984 | |||
Other Contract Holder Funds | 36,997 | 35,365 | 34,066 | |||
Insurance Premiums | 486 | 441 | 441 | |||
Net Investment Income | 2,452 | 2,396 | 2,294 | |||
Benefits and Interest Credited | 3,283 | 2,982 | 2,904 | |||
Amortization of DAC and VOBA | 447 | 614 | 423 | |||
Other Operating Expenses | 628 | [1] | 619 | [1] | 578 | [1] |
Group Protection [Member] | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
DAC and VOBA | 230 | 192 | 165 | |||
Future Contract Benefits | 2,033 | 1,882 | 1,742 | |||
Other Contract Holder Funds | 200 | 223 | 236 | |||
Insurance Premiums | 2,084 | 1,919 | 1,778 | |||
Net Investment Income | 165 | 162 | 152 | |||
Benefits and Interest Credited | 1,562 | 1,447 | 1,317 | |||
Amortization of DAC and VOBA | 53 | 48 | 39 | |||
Other Operating Expenses | 537 | [1] | 485 | [1] | 433 | [1] |
Other Operations [Member] | ' | ' | ' | |||
Supplementary Insurance Information, by Segment [Line Items] | ' | ' | ' | |||
Future Contract Benefits | 6,022 | 6,379 | 6,438 | |||
Other Contract Holder Funds | 772 | 810 | 839 | |||
Insurance Premiums | 1 | 4 | 1 | |||
Net Investment Income | 266 | 259 | 308 | |||
Benefits and Interest Credited | 222 | 260 | 240 | |||
Other Operating Expenses | $387 | [1] | $432 | [1] | $453 | [1] |
[1] | Excludes impairment of intangibles of $747 million for the year ended December 31, 2011. The allocation of expenses between investments and other operations is based on a number of assumptions and estimates. Results would change if different methods were applied. |
SCHEDULE_IV_CONSOLIDATED_REINS1
SCHEDULE IV - CONSOLIDATED REINSURANCE (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Consolidated reinsurance, net [Abstract] | ' | ' | ' | |||
Gross Amount | $8,023 | $7,379 | $6,997 | |||
Ceded to Other Companies | 1,275 | 1,190 | 1,276 | |||
Assumed from Other Companies | 8 | 9 | 10 | |||
Net Amount | 6,756 | 6,198 | 5,731 | |||
Individual life insurance in force [Member] | ' | ' | ' | |||
Consolidated reinsurance, net [Abstract] | ' | ' | ' | |||
Gross Amount | 990,600 | [1] | 929,100 | [1] | 881,100 | [1] |
Ceded to Other Companies | 313,200 | [1] | 323,300 | [1] | 331,700 | [1] |
Assumed from Other Companies | 1,700 | [1] | 2,000 | [1] | 2,800 | [1] |
Net Amount | 679,100 | [1] | 607,800 | [1] | 552,200 | [1] |
Percentage of Amount Assumed to Net | 0.30% | [1] | 0.30% | [1] | 0.50% | [1] |
Life insurance and annuities [Member] | ' | ' | ' | |||
Consolidated reinsurance, net [Abstract] | ' | ' | ' | |||
Gross Amount | 6,644 | [2] | 6,113 | [2] | 5,811 | [2] |
Ceded to Other Companies | 1,247 | [2] | 1,164 | [2] | 1,252 | [2] |
Assumed from Other Companies | 8 | [2] | 9 | [2] | 10 | [2] |
Net Amount | 5,405 | [2] | 4,958 | [2] | 4,569 | [2] |
Percentage of Amount Assumed to Net | 0.10% | [2] | 0.20% | [2] | 0.20% | [2] |
Accident and health insurance [Member] | ' | ' | ' | |||
Consolidated reinsurance, net [Abstract] | ' | ' | ' | |||
Gross Amount | 1,379 | 1,266 | 1,186 | |||
Ceded to Other Companies | 28 | 26 | 24 | |||
Net Amount | $1,351 | $1,240 | $1,162 | |||
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% | |||
[1] | Includes Group Protection segment and Other Operations in-force amounts. | |||||
[2] | Includes insurance fees on universal life and other interest-sensitive products. |
SCHEDULE_V_CONSOLIDATED_VALUAT1
SCHEDULE V - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (Details) (Reserve for mortgage loans on real estate [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reserve for mortgage loans on real estate [Member] | ' | ' | ' | |||
Movement in valuation allowances and reserves [Roll Forward] | ' | ' | ' | |||
Balance at Beginning -of-Year | $21 | $31 | $13 | |||
Charged to Costs Expenses | 3 | [1] | 14 | [1] | 24 | [1] |
Deductions - Describe | -21 | [2] | -24 | [2] | -6 | [2] |
Balance at End-of-Year | $3 | $21 | $31 | |||
[1] | Excludes charges for the direct write-off assets. | |||||
[2] | Deductions reflect sales, foreclosures of the underlying holdings or change in reserves. |