Document_and_Entity_Informatio
Document and Entity Information (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Aug. 13, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MetLife Insurance CO of Connecticut | ' |
Entity Central Index Key | '0000733076 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Public Float | $0 | ' |
Entity Common Stock, Shares Outstanding | ' | 34,595,317 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments: | ' | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | $43,073 | $45,252 |
Equity securities available-for-sale, at estimated fair value (cost: $378 and $397, respectively) | 448 | 418 |
Mortgage loans (net of valuation allowances of $33 and $34, respectively; includes $638 and $1,598, respectively, at estimated fair value, relating to variable interest entities) | 6,394 | 7,718 |
Policy loans | 1,207 | 1,219 |
Real estate and real estate joint ventures (includes $3 and $0, respectively, of real estate held-for-sale) | 835 | 754 |
Other limited partnership interests | 2,232 | 2,130 |
Short-term investments, principally at estimated fair value | 1,301 | 2,107 |
Other invested assets, principally at estimated fair value | 2,295 | 2,555 |
Total investments | 57,785 | 62,153 |
Cash and cash equivalents, principally at estimated fair value | 517 | 746 |
Accrued investment income (includes $4 and $9, respectively, relating to variable interest entities) | 413 | 542 |
Premiums, reinsurance and other receivables | 22,363 | 20,609 |
Deferred policy acquisition costs and value of business acquired | 4,193 | 4,730 |
Current income tax recoverable | 402 | 192 |
Goodwill | 381 | 493 |
Other assets | 760 | 794 |
Separate account assets | 100,133 | 97,780 |
Total assets | 186,947 | 188,039 |
Liabilities | ' | ' |
Future policy benefits | 25,375 | 27,991 |
Policyholder account balances | 31,629 | 33,453 |
Other policy-related balances | 3,212 | 3,164 |
Payables for collateral under securities loaned and other transactions | 6,588 | 6,451 |
Long-term debt (includes $499 and $1,461, respectively, at estimated fair value, relating to variable interest entities) | 1,289 | 2,251 |
Deferred income tax liability | 1,850 | 1,385 |
Other liabilities (includes $4 and $7, respectively, relating to variable interest entities) | 6,971 | 6,776 |
Separate account liabilities | 100,133 | 97,780 |
Total liabilities | 177,047 | 179,251 |
Contingencies, Commitments and Guarantees (Note 11) | ' | ' |
Stockholders' Equity | ' | ' |
Common stock, par value $2.50 per share; 40,000,000 shares authorized; 34,595,317 shares issued and outstanding at June 30, 2014 and December 31, 2013 | 86 | 86 |
Additional paid-in capital | 6,737 | 6,737 |
Retained earnings | 1,226 | 1,076 |
Accumulated other comprehensive income (loss) | 1,851 | 889 |
Total stockholders’ equity | 9,900 | 8,788 |
Total liabilities and stockholders’ equity | $186,947 | $188,039 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Investments: | ' | ' |
Amortized cost of fixed maturity securities available-for-sale | $39,766 | $43,477 |
Cost of equity securities available-for-sale | 378 | 397 |
Mortgage loans valuation allowances | 33 | 34 |
Mortgage loans, at estimated fair value, relating to variable interest entities | 6,394 | 7,718 |
Real estate held-for-sale | 3 | 0 |
Accrued investment income relating to variable interest entities | 413 | 542 |
Liabilities | ' | ' |
Long-term debt, at estimated fair value, relating to variable interest entities | 1,289 | 2,251 |
Other liabilities relating to variable interest entities | 6,971 | 6,776 |
Stockholders' Equity | ' | ' |
Common stock, par value | $2.50 | $2.50 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 34,595,317 | 34,595,317 |
Common stock, shares outstanding | 34,595,317 | 34,595,317 |
Variable interest entities [Member] | ' | ' |
Investments: | ' | ' |
Mortgage loans, at estimated fair value, relating to variable interest entities | 638 | 1,598 |
Accrued investment income relating to variable interest entities | 4 | 9 |
Liabilities | ' | ' |
Long-term debt, at estimated fair value, relating to variable interest entities | 499 | 1,461 |
Other liabilities relating to variable interest entities | $4 | $7 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues | ' | ' | ' | ' |
Premiums | $299 | $114 | $464 | $265 |
Universal life and investment-type product policy fees | 604 | 556 | 1,193 | 1,120 |
Net investment income | 597 | 724 | 1,299 | 1,454 |
Other revenues | 125 | 138 | 244 | 295 |
Net investment gains (losses): | ' | ' | ' | ' |
Other-than-temporary impairments on fixed maturity securities | -3 | -3 | -4 | -5 |
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) | -1 | 1 | -1 | -6 |
Other net investment gains (losses) | -42 | 18 | -560 | 93 |
Total net investment gains (losses) | -46 | 16 | -565 | 82 |
Net derivative gains (losses) | 186 | -495 | 366 | -382 |
Total revenues | 1,765 | 1,053 | 3,001 | 2,834 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 556 | 359 | 976 | 773 |
Interest credited to policyholder account balances | 236 | 259 | 475 | 523 |
Other expenses | 630 | 368 | 1,350 | 776 |
Total expenses | 1,422 | 986 | 2,801 | 2,072 |
Income (loss) before provision for income tax | 343 | 67 | 200 | 762 |
Provision for income tax expense (benefit) | 99 | 6 | 50 | 236 |
Net income (loss) | 244 | 61 | 150 | 526 |
Comprehensive income (loss) | $540 | ($653) | $1,112 | ($602) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) Net Unrealized Investment Gains (Losses) [Member] | Accumulated Other Comprehensive Income (Loss) Other-Than-Temporary Impairments [Member] | Accumulated Other Comprehensive Income (Loss) Foreign Currency Translation Adjustments [Member] |
In Millions | |||||||
Beginning Balance at Dec. 31, 2012 | $10,560 | $86 | $6,718 | $1,356 | $2,487 | ($38) | ($49) |
Dividend paid to MetLife | -624 | ' | ' | -624 | ' | ' | ' |
Capital contribution | 2 | ' | 2 | ' | ' | ' | ' |
Net income (loss) | 526 | ' | ' | 526 | ' | ' | ' |
Other comprehensive income (loss), net of income tax | -1,128 | ' | ' | ' | -1,075 | 6 | -59 |
Ending Balance at Jun. 30, 2013 | 9,336 | 86 | 6,720 | 1,258 | 1,412 | -32 | -108 |
Beginning Balance at Dec. 31, 2013 | 8,788 | 86 | 6,737 | 1,076 | 938 | -26 | -23 |
Net income (loss) | 150 | ' | ' | 150 | ' | ' | ' |
Other comprehensive income (loss), net of income tax | 962 | ' | ' | ' | 929 | 7 | 26 |
Ending Balance at Jun. 30, 2014 | $9,900 | $86 | $6,737 | $1,226 | $1,867 | ($19) | $3 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net cash provided by (used in) operating activities | $1,188 | $1,107 |
Cash flows from investing activities | ' | ' |
Sales, maturities and repayments of fixed maturity securities | 9,478 | 8,890 |
Sales, maturities and repayments of equity securities | 29 | 36 |
Sales, maturities and repayments of mortgage loans | 1,532 | 793 |
Sales, maturities and repayments of real estate and real estate joint ventures | 7 | 23 |
Sales, maturities and repayments of other limited partnership interests | 81 | 71 |
Purchases of fixed maturity securities | -10,101 | -9,255 |
Purchases of equity securities | -15 | -115 |
Purchases of mortgage loans | -205 | -282 |
Purchases of real estate and real estate joint ventures | -93 | -68 |
Purchases of other limited partnership interests | -158 | -200 |
Cash received in connection with freestanding derivatives | 54 | 77 |
Cash paid in connection with freestanding derivatives | -69 | -402 |
Sale of business, net of cash and cash equivalents disposed of $251 and $0, respectively | 451 | 0 |
Net change in policy loans | 12 | 3 |
Net change in short-term investments | 653 | 468 |
Net change in other invested assets | -251 | -25 |
Net cash provided by (used in) investing activities | 1,405 | 14 |
Cash flows from financing activities | ' | ' |
Policyholder account balances: Deposits | 7,145 | 7,310 |
Policyholder account balances: Withdrawals | -9,250 | -7,818 |
Net change in payables for collateral under securities loaned and other transactions | 253 | 235 |
Long-term debt repaid | -943 | -363 |
Financing element on certain derivative instruments | -31 | -16 |
Dividends on common stock | 0 | -624 |
Net cash provided by (used in) financing activities | -2,826 | -1,276 |
Effect of change in foreign currency exchange rates on cash and cash equivalents balances | 4 | -13 |
Change in cash and cash equivalents | -229 | -168 |
Cash and cash equivalents, beginning of period | 746 | 895 |
Cash and cash equivalents, end of period | 517 | 727 |
Supplemental disclosures of cash flow information: | ' | ' |
Net cash paid for interest | 67 | 102 |
Net cash paid (received) for Income tax | 220 | 85 |
Capital contributions from MetLife, Inc. | $0 | $2 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Cash disposed from sale of businesses | $251 | $0 |
Business_Basis_of_Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Business, Basis of Presentation and Summary of Significant Accounting Policies | ' |
1. Business, Basis of Presentation and Summary of Significant Accounting Policies | |
Business | |
“MICC” or the “Company” refers to MetLife Insurance Company of Connecticut, a Connecticut corporation incorporated in 1863, and its subsidiaries, including MetLife Investors USA Insurance Company (“MLI‑USA”). MetLife Insurance Company of Connecticut is a wholly-owned subsidiary of MetLife, Inc. The Company offers individual annuities, individual life insurance, and institutional protection and asset accumulation products. | |
The Company is organized into two segments: Retail and Corporate Benefit Funding. | |
In 2013, MetLife, Inc. announced its plans to merge three U.S.-based life insurance companies and an offshore reinsurance subsidiary to create one larger U.S.-based and U.S.-regulated life insurance company (the “Mergers”). The Mergers are expected to occur in the fourth quarter of 2014, subject to regulatory approvals. The companies to be merged are MetLife Insurance Company of Connecticut, MLI‑USA and MetLife Investors Insurance Company (“MLIIC”), each a U.S. insurance company that issues variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. (“Exeter”), a reinsurance company that mainly reinsures guarantees associated with variable annuity products. MetLife Insurance Company of Connecticut, which is expected to be renamed and domiciled in Delaware, will be the surviving entity. Exeter, formerly a Cayman Islands company, was re-domesticated to Delaware in October 2013. Effective January 1, 2014, following receipt of New York State Department of Financial Services approval, MetLife Insurance Company of Connecticut withdrew its license to issue insurance policies and annuity contracts in New York. Also effective January 1, 2014, MetLife Insurance Company of Connecticut reinsured with Metropolitan Life Insurance Company (“MLIC”), an affiliate, all existing New York insurance policies and annuity contracts that include a separate account feature. See Note 12. On December 31, 2013, MetLife Insurance Company of Connecticut deposited investments with an estimated fair market value of $6.3 billion into a custodial account to secure MetLife Insurance Company of Connecticut’s remaining New York policyholder liabilities not covered by such reinsurance, which became restricted on January 1, 2014. | |
In anticipation of the Mergers, in July 2014 MetLife Insurance Company of Connecticut and MLI-USA transferred to certain affiliates $430 million in affiliated loans, which are included in other invested assets. In August 2014, MetLife Insurance Company of Connecticut’s Board of Directors approved the redemption and retirement of the 4,595,317 shares of MetLife Insurance Company of Connecticut’s common stock owned by MetLife Investors Group, LLC for $1.4 billion. MetLife Insurance Company of Connecticut expects the redemption to occur in the third quarter of 2014, after which all of the outstanding common stock of MetLife Insurance Company of Connecticut will be held directly by MetLife, Inc. Following the redemption, in the third quarter of 2014 MetLife Insurance Company of Connecticut expects to receive a capital contribution from MetLife, Inc. of approximately $230 million. | |
Basis of Presentation | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. | |
The accompanying interim condensed consolidated financial statements include the accounts of MetLife Insurance Company of Connecticut and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | |
The Company uses the equity method of accounting for investments in equity securities when it has significant influence or at least 20% interest and for investments in real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. | |
Certain amounts in the prior year periods’ interim condensed consolidated financial statements and related footnotes thereto have been reclassified to conform with the 2014 presentation as discussed throughout the Notes to the Interim Condensed Consolidated Financial Statements. | |
Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. | |
The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2013 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife Insurance Company of Connecticut’s Annual Report on Form 10‑K for the year ended December 31, 2013 (the “2013 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2013 Annual Report. | |
Adoption of New Accounting Pronouncements | |
Effective January 1, 2014, the Company adopted new guidance regarding reporting of discontinued operations and disclosures of disposals of components of an entity. The guidance increases the threshold for a disposal to qualify as a discontinued operation, expands the disclosures for discontinued operations and requires new disclosures for certain disposals that do not meet the definition of a discontinued operation. Disposals must now represent a strategic shift that has or will have a major effect on the entity’s operations and financial results to qualify as discontinued operations. As discussed in Note 3, the Company sold its wholly-owned subsidiary, MetLife Assurance Limited (“MAL”). As a result of the adoption of this new guidance, the results of operations of MAL and the loss on sale have been included in income from continuing operations. | |
Effective January 1, 2014, the Company adopted new guidance regarding the presentation of an unrecognized tax benefit. The new guidance requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, when the carryforwards are not available at the reporting date to settle any additional income taxes that would result from the disallowance of a tax position or the applicable tax law does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset. The adoption was prospectively applied and did not have a material impact on the Company’s consolidated financial statements. | |
Effective January 1, 2014, the Company adopted new guidance regarding foreign currency that requires an entity that ceases to have a controlling financial interest in a subsidiary or group of assets within a foreign entity to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. The new guidance did not have a material impact on the financial statements upon adoption. | |
Effective January 1, 2014, the Company adopted new guidance regarding liabilities that requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. The new guidance did not have a material impact on the financial statements upon adoption. | |
Future Adoption of New Accounting Pronouncements | |
In June 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance on transfers and servicing (Accounting Standards Update (“ASU”) 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosure), effective prospectively for fiscal years beginning after December 15, 2014 and interim periods within those years. The new guidance requires that repurchase-to-maturity transactions and repurchase financing arrangements be accounted for as secured borrowings and provides for enhanced disclosures, including the nature of collateral pledged and the time to maturity. Certain interim period disclosures for repurchase agreements and securities lending transactions are not required until the second quarter of 2015. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |
In May 2014, the FASB issued a comprehensive new revenue recognition standard (ASU 2014-09, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016 and interim periods within those years. Early adoption of this standard is not permitted. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to, in exchange for those goods or services. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. | |
In January 2014, the FASB issued new guidance regarding investments (ASU 2014-01, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects), effective retrospectively for fiscal years beginning after December 15, 2014 and interim reporting periods within those years. The new guidance is applicable to investments in flow-through limited liability entities that manage or invest in affordable housing projects that qualify for the low-income housing tax credit. Under the guidance, an entity that meets certain conditions is permitted to make an accounting policy election to amortize the initial cost of its investment in proportion to the tax credits and other tax benefits received, and recognize the net investment performance on the statement of operations as a component of income tax expense (benefit). The Company is currently evaluating the impact of this guidance on its consolidated financial statements. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
2. Segment Information | |||||||||||||||||||||||||
The Company is organized into two segments: Retail and Corporate Benefit Funding. In addition, the Company reports certain of its results of operations in Corporate & Other. | |||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||
The Retail segment offers a broad range of protection products and a variety of annuities primarily to individuals, and is organized into two businesses: Annuities and Life & Other. Annuities includes a variety of variable, fixed and indexed annuities which provide for both asset accumulation and asset distribution needs. Life & Other insurance products and services include variable life, universal life, term life and whole life products, as well as individual disability income products. Additionally, through broker-dealer affiliates, the Company offers a full range of mutual funds and other securities products. | |||||||||||||||||||||||||
Corporate Benefit Funding | |||||||||||||||||||||||||
The Corporate Benefit Funding segment offers a broad range of annuity and investment products, including guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets. This segment also includes structured settlements and certain products to fund company-, bank- or trust-owned life insurance used to finance non-qualified benefit programs for executives. | |||||||||||||||||||||||||
Corporate & Other | |||||||||||||||||||||||||
Corporate & Other contains the excess capital not allocated to the segments, various business activities including start-up businesses, run-off businesses, the Company’s ancillary international operations, interest expense related to the majority of the Company’s outstanding debt, as well as expenses associated with certain legal proceedings and income tax audit issues. Start-up businesses include direct and digital marketing products. Corporate & Other also includes the elimination of intersegment amounts. | |||||||||||||||||||||||||
Financial Measures and Segment Accounting Policies | |||||||||||||||||||||||||
Operating earnings is the measure of segment profit or loss the Company uses to evaluate segment performance and allocate resources. Consistent with GAAP guidance for segment reporting, operating earnings is the Company’s measure of segment performance and is reported below. Operating earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of operating earnings as the Company measures it for management purposes enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business. | |||||||||||||||||||||||||
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. | |||||||||||||||||||||||||
Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by the Company and are referred to as divested businesses. Operating revenues also excludes net investment gains (losses) and net derivative gains (losses). Operating expenses also excludes goodwill impairments. | |||||||||||||||||||||||||
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues: | |||||||||||||||||||||||||
• | Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (“GMIBs”) fees (“GMIB Fees”); and | ||||||||||||||||||||||||
• | Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP. | ||||||||||||||||||||||||
The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: | |||||||||||||||||||||||||
• | Policyholder benefits and claims excludes: (i) amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (ii) benefits and hedging costs related to GMIBs (“GMIB Costs”), and (iii) market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”); | ||||||||||||||||||||||||
• | Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances (“PABs”) but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; | ||||||||||||||||||||||||
• | Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | ||||||||||||||||||||||||
• | Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and | ||||||||||||||||||||||||
• | Other expenses excludes costs related to: (i) implementation of new insurance regulatory requirements, and (ii) acquisition and integration costs. | ||||||||||||||||||||||||
In the first quarter of 2014, MetLife, Inc. began reporting the operations of MAL as divested business. See Note 3. Consequently, the results for Corporate Benefit Funding decreased by $4 million, net of $2 million of income tax, and $9 million, net of $5 million of income tax, for the three months and six months ended June 30, 2013, respectively. Also, the results for Corporate & Other decreased by $4 million, net of $2 million of income tax, and $7 million, net of $4 million of income tax, for the three months and six months ended June 30, 2013, respectively. | |||||||||||||||||||||||||
Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and six months ended June 30, 2014 and 2013. The segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements, except for operating earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below. | |||||||||||||||||||||||||
Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in MetLife, Inc.’s and the Company’s business. | |||||||||||||||||||||||||
MetLife, Inc.’s economic capital model aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon and applying an industry standard method for the inclusion of diversification benefits among risk types. | |||||||||||||||||||||||||
Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, operating earnings or net income (loss). | |||||||||||||||||||||||||
Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing. | |||||||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Retail | Corporate | Corporate | Total | Adjustments | Total | |||||||||||||||||||
Benefit | & Other | Consolidated | |||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 267 | $ | 15 | $ | 15 | $ | 297 | $ | 2 | $ | 299 | |||||||||||||
Universal life and investment-type product policy fees | 557 | 9 | — | 566 | 38 | 604 | |||||||||||||||||||
Net investment income | 366 | 210 | 28 | 604 | (7 | ) | 597 | ||||||||||||||||||
Other revenues | 124 | — | — | 124 | 1 | 125 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | (46 | ) | (46 | ) | |||||||||||||||||
Net derivative gains (losses) | — | — | — | — | 186 | 186 | |||||||||||||||||||
Total revenues | 1,314 | 234 | 43 | 1,591 | 174 | 1,765 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 355 | 126 | 12 | 493 | 63 | 556 | |||||||||||||||||||
Interest credited to policyholder account balances | 209 | 26 | — | 235 | 1 | 236 | |||||||||||||||||||
Capitalization of DAC | (76 | ) | — | (10 | ) | (86 | ) | — | (86 | ) | |||||||||||||||
Amortization of DAC and VOBA | 144 | 1 | 2 | 147 | 66 | 213 | |||||||||||||||||||
Interest expense on debt | — | — | 16 | 16 | 12 | 28 | |||||||||||||||||||
Other expenses | 441 | 6 | 23 | 470 | 5 | 475 | |||||||||||||||||||
Total expenses | 1,073 | 159 | 43 | 1,275 | 147 | 1,422 | |||||||||||||||||||
Provision for income tax expense (benefit) | 85 | 26 | (22 | ) | 89 | 10 | 99 | ||||||||||||||||||
Operating earnings | $ | 156 | $ | 49 | $ | 22 | 227 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | 174 | ||||||||||||||||||||||||
Total expenses | (147 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | (10 | ) | |||||||||||||||||||||||
Net income (loss) | $ | 244 | $ | 244 | |||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Three Months Ended June 30, 2013 | Retail | Corporate | Corporate | Total | Adjustments | Total | |||||||||||||||||||
Benefit | & Other | Consolidated | |||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 74 | $ | 29 | $ | 11 | $ | 114 | $ | — | $ | 114 | |||||||||||||
Universal life and investment-type product policy fees | 516 | 8 | — | 524 | 32 | 556 | |||||||||||||||||||
Net investment income | 415 | 252 | 25 | 692 | 32 | 724 | |||||||||||||||||||
Other revenues | 136 | 2 | — | 138 | — | 138 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | 16 | 16 | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | (495 | ) | (495 | ) | |||||||||||||||||
Total revenues | 1,141 | 291 | 36 | 1,468 | (415 | ) | 1,053 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 165 | 134 | 8 | 307 | 52 | 359 | |||||||||||||||||||
Interest credited to policyholder account balances | 227 | 33 | — | 260 | (1 | ) | 259 | ||||||||||||||||||
Capitalization of DAC | (128 | ) | — | (5 | ) | (133 | ) | — | (133 | ) | |||||||||||||||
Amortization of DAC and VOBA | 158 | 1 | — | 159 | (155 | ) | 4 | ||||||||||||||||||
Interest expense on debt | — | — | 17 | 17 | 32 | 49 | |||||||||||||||||||
Other expenses | 432 | 1 | 10 | 443 | 5 | 448 | |||||||||||||||||||
Total expenses | 854 | 169 | 30 | 1,053 | (67 | ) | 986 | ||||||||||||||||||
Provision for income tax expense (benefit) | 100 | 43 | (15 | ) | 128 | (122 | ) | 6 | |||||||||||||||||
Operating earnings | $ | 187 | $ | 79 | $ | 21 | 287 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (415 | ) | |||||||||||||||||||||||
Total expenses | 67 | ||||||||||||||||||||||||
Provision for income tax (expense) benefit | 122 | ||||||||||||||||||||||||
Net income (loss) | $ | 61 | $ | 61 | |||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Retail | Corporate | Corporate | Total | Total | ||||||||||||||||||||
Benefit | & Other | Adjustments | Consolidated | ||||||||||||||||||||||
Funding (1) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 483 | $ | (50 | ) | $ | 29 | $ | 462 | $ | 2 | $ | 464 | ||||||||||||
Universal life and investment-type product policy fees | 1,099 | 17 | — | 1,116 | 77 | 1,193 | |||||||||||||||||||
Net investment income | 772 | 445 | 63 | 1,280 | 19 | 1,299 | |||||||||||||||||||
Other revenues | 241 | 2 | — | 243 | 1 | 244 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | (565 | ) | (565 | ) | |||||||||||||||||
Net derivative gains (losses) | — | — | — | — | 366 | 366 | |||||||||||||||||||
Total revenues | 2,595 | 414 | 92 | 3,101 | (100 | ) | 3,001 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 675 | 152 | 11 | 838 | 138 | 976 | |||||||||||||||||||
Interest credited to policyholder account balances | 418 | 56 | — | 474 | 1 | 475 | |||||||||||||||||||
Capitalization of DAC | (134 | ) | — | (26 | ) | (160 | ) | — | (160 | ) | |||||||||||||||
Amortization of DAC and VOBA | 313 | 1 | 10 | 324 | 205 | 529 | |||||||||||||||||||
Interest expense on debt | — | — | 33 | 33 | 30 | 63 | |||||||||||||||||||
Other expenses | 855 | 13 | 41 | 909 | 9 | 918 | |||||||||||||||||||
Total expenses | 2,127 | 222 | 69 | 2,418 | 383 | 2,801 | |||||||||||||||||||
Provision for income tax expense (benefit) | 163 | 67 | (35 | ) | 195 | (145 | ) | 50 | |||||||||||||||||
Operating earnings | $ | 305 | $ | 125 | $ | 58 | 488 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (100 | ) | |||||||||||||||||||||||
Total expenses | (383 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 145 | ||||||||||||||||||||||||
Net income (loss) | $ | 150 | $ | 150 | |||||||||||||||||||||
____________ | |||||||||||||||||||||||||
-1 | Premiums and policyholder benefits and claims both include ($87) million of ceded reinsurance with MLIC, related to the Mergers. See Note 12. | ||||||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Six Months Ended June 30, 2013 | Retail | Corporate | Corporate | Total | Total | ||||||||||||||||||||
Benefit | & Other | Adjustments | Consolidated | ||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 148 | $ | 49 | $ | 20 | $ | 217 | $ | 48 | $ | 265 | |||||||||||||
Universal life and investment-type product policy fees | 1,037 | 17 | — | 1,054 | 66 | 1,120 | |||||||||||||||||||
Net investment income | 815 | 503 | 57 | 1,375 | 79 | 1,454 | |||||||||||||||||||
Other revenues | 292 | 3 | — | 295 | — | 295 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | 82 | 82 | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | (382 | ) | (382 | ) | |||||||||||||||||
Total revenues | 2,292 | 572 | 77 | 2,941 | (107 | ) | 2,834 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 311 | 261 | 17 | 589 | 184 | 773 | |||||||||||||||||||
Interest credited to policyholder account balances | 456 | 70 | — | 526 | (3 | ) | 523 | ||||||||||||||||||
Capitalization of DAC | (276 | ) | (2 | ) | (9 | ) | (287 | ) | — | (287 | ) | ||||||||||||||
Amortization of DAC and VOBA | 272 | 3 | — | 275 | (245 | ) | 30 | ||||||||||||||||||
Interest expense on debt | — | — | 34 | 34 | 66 | 100 | |||||||||||||||||||
Other expenses | 898 | 9 | 17 | 924 | 9 | 933 | |||||||||||||||||||
Total expenses | 1,661 | 341 | 59 | 2,061 | 11 | 2,072 | |||||||||||||||||||
Provision for income tax expense (benefit) | 220 | 81 | (26 | ) | 275 | (39 | ) | 236 | |||||||||||||||||
Operating earnings | $ | 411 | $ | 150 | $ | 44 | 605 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (107 | ) | |||||||||||||||||||||||
Total expenses | (11 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 39 | ||||||||||||||||||||||||
Net income (loss) | $ | 526 | $ | 526 | |||||||||||||||||||||
The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: | |||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Retail | $ | 150,882 | $ | 146,515 | |||||||||||||||||||||
Corporate Benefit Funding | 24,347 | 30,822 | |||||||||||||||||||||||
Corporate & Other | 11,718 | 10,702 | |||||||||||||||||||||||
Total | $ | 186,947 | $ | 188,039 | |||||||||||||||||||||
Pending_Disposition
Pending Disposition | 6 Months Ended |
Jun. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Pending Disposition | ' |
3. Disposition | |
In May 2014, the Company completed the sale of its wholly-owned subsidiary, MAL, for $702 million (£418 million) in net cash consideration. As a result of the sale, losses of $61 million ($50 million, net of income tax) and $608 million ($436 million, net of income tax) were recorded for the three months and six months ended June 30, 2014, respectively, and are reflected within net investment gains (losses) on the consolidated statements of operations and comprehensive income (loss). For the six months ended June 30, 2014, the loss includes a reduction to goodwill of $112 million ($94 million, net of income tax). The losses on the sale were increased by net income from MAL of $42 million and $77 million for the three months and six months ended June 30, 2014, respectively. MAL’s results of operations are included in continuing operations. They were historically included in the Corporate Benefit Funding segment. See Note 2. |
Insurance
Insurance | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Insurance | ' | |||||||||||||||
4. Insurance | ||||||||||||||||
Guarantees | ||||||||||||||||
As discussed in Notes 1 and 4 of the Notes to the Consolidated Financial Statements included in the 2013 Annual Report, the Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of guaranteed minimum withdrawal benefits (“GMWBs”) and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in PABs and are further discussed in Note 6. | ||||||||||||||||
Based on the type of guarantee, the Company defines net amount at risk (“NAR”) as listed below. | ||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||
In the Event of Death | ||||||||||||||||
Defined as the death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. | ||||||||||||||||
At Annuitization | ||||||||||||||||
Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company’s potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. | ||||||||||||||||
Universal and Variable Life Contracts | ||||||||||||||||
Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. | ||||||||||||||||
The amounts in the table below include direct business, but exclude offsets from hedging or reinsurance, if any. As discussed in Note 6 of the Notes to the Consolidated Financial Statements included in the 2013 Annual Report, the Company has reinsured 100% of the living and death benefit guarantees associated with variable annuities issued since 2006 to an affiliated reinsurer, and certain portions of living and death benefit guarantees associated with variable annuities issued prior to 2006 to affiliated and unaffiliated reinsurers. Therefore, the NARs presented below reflect the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. | ||||||||||||||||
Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
In the | At | In the | At | |||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||
(In millions) | ||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||
Total contract account value | $ | 102,466 | $ | 58,226 | $ | 100,420 | $ | 57,041 | ||||||||
Separate account value | $ | 97,808 | $ | 57,054 | $ | 95,637 | $ | 55,805 | ||||||||
Net amount at risk | $ | 1,976 | $ | 668 | $ | 2,230 | $ | 562 | ||||||||
Average attained age of contractholders | 64 years | 65 years | 64 years | 64 years | ||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Secondary Guarantees | ||||||||||||||||
(In millions) | ||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||
Account value (general and separate account) | $ | 6,550 | $ | 6,360 | ||||||||||||
Net amount at risk | $ | 91,187 | $ | 91,264 | ||||||||||||
Average attained age of policyholders | 59 years | 58 years | ||||||||||||||
____________ | ||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. |
Investments
Investments | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Investments | ' | |||||||||||||||||||||||||||||||||||||||
5. Investments | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale | ||||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale by Sector | ||||||||||||||||||||||||||||||||||||||||
The following table presents the fixed maturity and equity securities available-for-sale (“AFS”) by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”). | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Cost or | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 14,503 | $ | 1,534 | $ | 88 | $ | — | $ | 15,949 | $ | 15,779 | $ | 1,130 | $ | 207 | $ | — | $ | 16,702 | ||||||||||||||||||||
Foreign corporate | 4,776 | 396 | 11 | — | 5,161 | 8,111 | 485 | 79 | — | 8,517 | ||||||||||||||||||||||||||||||
U.S. Treasury and agency | 10,113 | 848 | 34 | — | 10,927 | 8,188 | 334 | 228 | — | 8,294 | ||||||||||||||||||||||||||||||
RMBS | 4,799 | 269 | 39 | 29 | 5,000 | 4,587 | 201 | 59 | 41 | 4,688 | ||||||||||||||||||||||||||||||
State and political subdivision | 2,083 | 288 | 14 | — | 2,357 | 2,147 | 139 | 62 | — | 2,224 | ||||||||||||||||||||||||||||||
ABS | 1,592 | 27 | 8 | — | 1,611 | 2,081 | 32 | 12 | — | 2,101 | ||||||||||||||||||||||||||||||
CMBS | 1,320 | 52 | 1 | — | 1,371 | 1,546 | 62 | 4 | — | 1,604 | ||||||||||||||||||||||||||||||
Foreign government | 580 | 118 | 1 | — | 697 | 1,038 | 103 | 19 | — | 1,122 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,766 | $ | 3,532 | $ | 196 | $ | 29 | $ | 43,073 | $ | 43,477 | $ | 2,486 | $ | 670 | $ | 41 | $ | 45,252 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 224 | $ | 13 | $ | 7 | $ | — | $ | 230 | $ | 236 | $ | 9 | $ | 28 | $ | — | $ | 217 | ||||||||||||||||||||
Common stock | 154 | 64 | — | — | 218 | 161 | 40 | — | — | 201 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 378 | $ | 77 | $ | 7 | $ | — | $ | 448 | $ | 397 | $ | 49 | $ | 28 | $ | — | $ | 418 | ||||||||||||||||||||
The Company held non-income producing fixed maturity securities with an estimated fair value of $18 million and $30 million with unrealized gains (losses) of $5 million and $6 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Maturities of Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,091 | $ | 2,118 | $ | 2,934 | $ | 2,966 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 10,084 | 10,495 | 8,895 | 9,301 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 5,727 | 6,280 | 7,433 | 7,970 | ||||||||||||||||||||||||||||||||||||
Due after ten years | 14,153 | 16,198 | 16,001 | 16,622 | ||||||||||||||||||||||||||||||||||||
Subtotal | 32,055 | 35,091 | 35,263 | 36,859 | ||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) | 7,711 | 7,982 | 8,214 | 8,393 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,766 | $ | 43,073 | $ | 43,477 | $ | 45,252 | ||||||||||||||||||||||||||||||||
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. | ||||||||||||||||||||||||||||||||||||||||
Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector | ||||||||||||||||||||||||||||||||||||||||
The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 394 | $ | 7 | $ | 1,029 | $ | 81 | $ | 2,526 | $ | 141 | $ | 470 | $ | 66 | ||||||||||||||||||||||||
Foreign corporate | 164 | 6 | 179 | 5 | 1,520 | 70 | 135 | 9 | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency | 1,467 | 2 | 1,321 | 32 | 3,825 | 228 | — | — | ||||||||||||||||||||||||||||||||
RMBS | 410 | 24 | 662 | 44 | 996 | 35 | 457 | 65 | ||||||||||||||||||||||||||||||||
State and political subdivision | 14 | — | 139 | 14 | 630 | 44 | 64 | 18 | ||||||||||||||||||||||||||||||||
ABS | 258 | 2 | 96 | 6 | 680 | 5 | 104 | 7 | ||||||||||||||||||||||||||||||||
CMBS | 35 | — | 39 | 1 | 143 | 4 | 7 | — | ||||||||||||||||||||||||||||||||
Foreign government | 13 | — | 23 | 1 | 264 | 19 | 1 | — | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 2,755 | $ | 41 | $ | 3,488 | $ | 184 | $ | 10,584 | $ | 546 | $ | 1,238 | $ | 165 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 10 | $ | 1 | $ | 83 | $ | 6 | $ | 105 | $ | 21 | $ | 33 | $ | 7 | ||||||||||||||||||||||||
Common stock | 2 | — | — | — | 3 | — | 7 | — | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 12 | $ | 1 | $ | 83 | $ | 6 | $ | 108 | $ | 21 | $ | 40 | $ | 7 | ||||||||||||||||||||||||
Total number of securities in an unrealized loss position | 296 | 402 | 1,081 | 297 | ||||||||||||||||||||||||||||||||||||
Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities | ||||||||||||||||||||||||||||||||||||||||
As described more fully in Notes 1 and 7 of the Notes to the Consolidated Financial Statements included in the 2013 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. | ||||||||||||||||||||||||||||||||||||||||
Current Period Evaluation | ||||||||||||||||||||||||||||||||||||||||
Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired at June 30, 2014. Future other-than-temporary impairment (“OTTI”) will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses on fixed maturity securities decreased $486 million during the six months ended June 30, 2014 from $711 million to $225 million. The decrease in gross unrealized losses for the six months ended June 30, 2014, was primarily attributable to a decrease in interest rates, and to a lesser extent narrowing credit spreads. | ||||||||||||||||||||||||||||||||||||||||
At June 30, 2014, $38 million of the total $225 million of gross unrealized losses were from 14 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. | ||||||||||||||||||||||||||||||||||||||||
Investment Grade Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Of the $38 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $26 million, or 68%, are related to gross unrealized losses on 10 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. | ||||||||||||||||||||||||||||||||||||||||
Below Investment Grade Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||
Of the $38 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $12 million, or 32%, are related to gross unrealized losses on four below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to non-agency RMBS (primarily alternative residential mortgage loans) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over unemployment levels and valuations of residential real estate supporting non-agency RMBS. Management evaluates non-agency RMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security. | ||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Gross unrealized losses on equity securities decreased $21 million during the six months ended June 30, 2014 from $28 million to $7 million. Of the $7 million, $4 million were from two equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater, all of which were financial services industry investment grade non-redeemable preferred stock, of which 50% were rated A or better. | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans are summarized as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 4,536 | 70.9 | % | $ | 4,869 | 63.1 | % | ||||||||||||||||||||||||||||||||
Agricultural | 1,253 | 19.6 | 1,285 | 16.6 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 5,789 | 90.5 | 6,154 | 79.7 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (33 | ) | (0.5 | ) | (34 | ) | (0.4 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans, net | 5,756 | 90 | 6,120 | 79.3 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — fair value option (“FVO”) | 638 | 10 | 1,598 | 20.7 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 6,394 | 100 | % | $ | 7,718 | 100 | % | ||||||||||||||||||||||||||||||||
-1 | There were no mortgage loans purchased for both the three months and six months ended June 30, 2014. Purchases of mortgage loans were $5 million for both the three months and six months ended June 30, 2013. | |||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). | ||||||||||||||||||||||||||||||||||||||||
See “— Related Party Investment Transactions” for discussion of related party mortgage loans. | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans and Valuation Allowance by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
The carrying value prior to valuation allowance (“recorded investment”) in mortgage loans, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Evaluated individually for credit losses | $ | 69 | $ | 3 | $ | 72 | $ | 72 | $ | 4 | $ | 76 | ||||||||||||||||||||||||||||
Evaluated collectively for credit losses | 4,467 | 1,250 | 5,717 | 4,797 | 1,281 | 6,078 | ||||||||||||||||||||||||||||||||||
Total mortgage loans | 4,536 | 1,253 | 5,789 | 4,869 | 1,285 | 6,154 | ||||||||||||||||||||||||||||||||||
Valuation allowances: | ||||||||||||||||||||||||||||||||||||||||
Specific credit losses | 8 | — | 8 | 7 | — | 7 | ||||||||||||||||||||||||||||||||||
Non-specifically identified credit losses | 21 | 4 | 25 | 23 | 4 | 27 | ||||||||||||||||||||||||||||||||||
Total valuation allowances | 29 | 4 | 33 | 30 | 4 | 34 | ||||||||||||||||||||||||||||||||||
Mortgage loans, net of valuation allowance | $ | 4,507 | $ | 1,249 | $ | 5,756 | $ | 4,839 | $ | 1,281 | $ | 6,120 | ||||||||||||||||||||||||||||
Valuation Allowance Rollforward by Portfolio Segment | ||||||||||||||||||||||||||||||||||||||||
The changes in the valuation allowance, by portfolio segment, were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 29 | $ | 4 | $ | 33 | $ | 32 | $ | 3 | $ | 35 | ||||||||||||||||||||||||||||
Provision (release) | — | — | — | (2 | ) | 1 | (1 | ) | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 29 | $ | 4 | $ | 33 | $ | 30 | $ | 4 | $ | 34 | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 30 | $ | 4 | $ | 34 | $ | 32 | $ | 3 | $ | 35 | ||||||||||||||||||||||||||||
Provision (release) | (1 | ) | — | (1 | ) | (2 | ) | 1 | (1 | ) | ||||||||||||||||||||||||||||||
Balance, end of period | $ | 29 | $ | 4 | $ | 33 | $ | 30 | $ | 4 | $ | 34 | ||||||||||||||||||||||||||||
Credit Quality of Commercial Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of commercial mortgage loans, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | ||||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | % of | Estimated | % of | |||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Total | Fair Value | Total | ||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 3,724 | $ | 149 | $ | 135 | $ | 4,008 | 88.4 | % | $ | 4,368 | 89.2 | % | ||||||||||||||||||||||||||
65% to 75% | 341 | 33 | — | 374 | 8.2 | 382 | 7.8 | |||||||||||||||||||||||||||||||||
76% to 80% | 80 | 12 | — | 92 | 2 | 92 | 1.9 | |||||||||||||||||||||||||||||||||
Greater than 80% | 22 | 26 | 14 | 62 | 1.4 | 52 | 1.1 | |||||||||||||||||||||||||||||||||
Total | $ | 4,167 | $ | 220 | $ | 149 | $ | 4,536 | 100 | % | $ | 4,894 | 100 | % | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 3,754 | $ | 125 | $ | 107 | $ | 3,986 | 81.9 | % | $ | 4,224 | 82.8 | % | ||||||||||||||||||||||||||
65% to 75% | 700 | — | 27 | 727 | 14.9 | 736 | 14.4 | |||||||||||||||||||||||||||||||||
76% to 80% | 80 | 13 | — | 93 | 1.9 | 93 | 1.8 | |||||||||||||||||||||||||||||||||
Greater than 80% | 37 | 26 | — | 63 | 1.3 | 53 | 1 | |||||||||||||||||||||||||||||||||
Total | $ | 4,571 | $ | 164 | $ | 134 | $ | 4,869 | 100 | % | $ | 5,106 | 100 | % | ||||||||||||||||||||||||||
Credit Quality of Agricultural Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The credit quality of agricultural mortgage loans, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 1,184 | 94.5 | % | $ | 1,215 | 94.6 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 69 | 5.5 | 70 | 5.4 | ||||||||||||||||||||||||||||||||||||
Total | $ | 1,253 | 100 | % | $ | 1,285 | 100 | % | ||||||||||||||||||||||||||||||||
The estimated fair value of agricultural mortgage loans was $1.3 billion at both June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||
Past Due and Interest Accrual Status of Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
The Company has a high quality, well performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both June 30, 2014 and December 31, 2013. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days. The Company had no commercial mortgage loans past due and one commercial mortgage loan in non-accrual status with a recorded investment of $22 million at both June 30, 2014 and December 31, 2013. The Company had no agricultural mortgage loans past due or in non-accrual status at both June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||
Impaired Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
Impaired mortgage loans including those modified in a troubled debt restructuring, by portfolio segment, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Loans with a Valuation Allowance | Loans without | All Impaired Loans | ||||||||||||||||||||||||||||||||||||||
a Valuation Allowance | ||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Valuation | Carrying | Unpaid | Recorded | Unpaid | Carrying | |||||||||||||||||||||||||||||||||
Principal | Investment | Allowances | Value | Principal | Investment | Principal | Value | |||||||||||||||||||||||||||||||||
Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 22 | $ | 22 | $ | 8 | $ | 14 | $ | 47 | $ | 47 | $ | 69 | $ | 61 | ||||||||||||||||||||||||
Agricultural (1) | 4 | 3 | — | 3 | — | — | 4 | 3 | ||||||||||||||||||||||||||||||||
Total | $ | 26 | $ | 25 | $ | 8 | $ | 17 | $ | 47 | $ | 47 | $ | 73 | $ | 64 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 22 | $ | 22 | $ | 7 | $ | 15 | $ | 52 | $ | 50 | $ | 74 | $ | 65 | ||||||||||||||||||||||||
Agricultural (1) | 4 | 4 | — | 4 | — | — | 4 | 4 | ||||||||||||||||||||||||||||||||
Total | $ | 26 | $ | 26 | $ | 7 | $ | 19 | $ | 52 | $ | 50 | $ | 78 | $ | 69 | ||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Valuation allowance on agricultural mortgage loans was less than $1 million at both June 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
Unpaid principal balance is generally prior to any charge-offs. | ||||||||||||||||||||||||||||||||||||||||
The average recorded investment in impaired mortgage loans, including those modified in a troubled debt restructuring, and the related interest income, which is primarily recognized on a cash basis, by portfolio segment, was: | ||||||||||||||||||||||||||||||||||||||||
Impaired Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 71 | $ | 1 | $ | 72 | $ | 1 | $ | 71 | $ | 1 | $ | 73 | $ | 2 | ||||||||||||||||||||||||
Agricultural | 3 | — | 2 | — | 3 | — | 1 | — | ||||||||||||||||||||||||||||||||
Total | $ | 74 | $ | 1 | $ | 74 | $ | 1 | $ | 74 | $ | 1 | $ | 74 | $ | 2 | ||||||||||||||||||||||||
Mortgage Loans Modified in a Troubled Debt Restructuring | ||||||||||||||||||||||||||||||||||||||||
There were no mortgage loans modified in a troubled debt restructuring during the three months and six months ended June 30, 2014. There was one agricultural mortgage loan modified in a troubled debt restructuring with a pre-modification and post-modification carrying value of $4 million during the three months and six months ended June 30, 2013. | ||||||||||||||||||||||||||||||||||||||||
During the three months and six months ended June 30, 2014 and 2013, the Company had no mortgage loans with subsequent payment defaults that were modified in a troubled debt restructuring during the previous 12 months. Payment default is determined in the same manner as delinquency status as described above. | ||||||||||||||||||||||||||||||||||||||||
Cash Equivalents | ||||||||||||||||||||||||||||||||||||||||
The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $243 million and $469 million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Net Unrealized Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss) (“AOCI”), were as follows: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 3,338 | $ | 1,819 | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (29 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,309 | 1,778 | ||||||||||||||||||||||||||||||||||||||
Equity securities | 73 | 15 | ||||||||||||||||||||||||||||||||||||||
Derivatives | 133 | 39 | ||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 1 | ||||||||||||||||||||||||||||||||||||||
Other | (29 | ) | (71 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | 3,486 | 1,762 | ||||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Insurance liability loss recognition | (192 | ) | — | |||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||
DAC and VOBA | (442 | ) | (274 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | (635 | ) | (275 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 11 | 16 | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (1,014 | ) | (591 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | $ | 1,848 | $ | 912 | ||||||||||||||||||||||||||||||||||||
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | ||||||||||||||||||||||||||||||||||||||||
Six Months | Year | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (41 | ) | $ | (64 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized (1) | 2 | 11 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 4 | 21 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 6 | (9 | ) | |||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (29 | ) | $ | (41 | ) | ||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Noncredit OTTI losses and subsequent changes recognized, net of DAC, were ($2) million and $7 million for the six months ended June 30, 2014 and the year ended December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 912 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 12 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the period | 1,712 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Insurance liability gain (loss) recognition | (192 | ) | ||||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | — | |||||||||||||||||||||||||||||||||||||||
DAC and VOBA | (168 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (5 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (423 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,848 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 936 | ||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||||||||||||||||||
There were no investments in any counterparty that were greater than 10% of the Company’s stockholders’ equity, other than the U.S. government and its agencies, at both June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||
Securities Lending | ||||||||||||||||||||||||||||||||||||||||
Elements of the securities lending program are presented below at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Securities on loan: (1) | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | $ | 5,749 | $ | 5,931 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 6,262 | $ | 5,984 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 6,348 | $ | 6,140 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 41 | $ | — | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 6,405 | $ | 6,145 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Included within fixed maturity securities, short-term investments, cash and cash equivalents and equity securities. | |||||||||||||||||||||||||||||||||||||||
-2 | Included within payables for collateral under securities loaned and other transactions. | |||||||||||||||||||||||||||||||||||||||
-3 | Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||
Invested Assets on Deposit and Pledged as Collateral | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments and fixed maturity securities and at carrying value for mortgage loans at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit (regulatory deposits) (1) | $ | 6,892 | $ | 56 | ||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (2) | 2,000 | 1,901 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit and pledged as collateral | $ | 8,892 | $ | 1,957 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | See Note 1 for information about invested assets that became restricted when MetLife Insurance Company of Connecticut withdrew its New York license on January 1, 2014. | |||||||||||||||||||||||||||||||||||||||
-2 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2013 Annual Report) and derivative transactions (see Note 6). | |||||||||||||||||||||||||||||||||||||||
See “— Securities Lending” for securities on loan. | ||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
The Company has invested in certain structured transactions (including CSEs), that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. | ||||||||||||||||||||||||||||||||||||||||
The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. | ||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2014 and December 31, 2013. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
CSEs (1) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans (commercial mortgage loans) | $ | 638 | $ | 1,598 | ||||||||||||||||||||||||||||||||||||
Accrued investment income | 4 | 9 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 642 | $ | 1,607 | ||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 499 | $ | 1,461 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 4 | 7 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 503 | $ | 1,468 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $120 million at estimated fair value at both June 30, 2014 and December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $12 million and $30 million for the three months and six months ended June 30, 2014, respectively, and $32 million and $66 million for the three months and six months ended June 30, 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Unconsolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) (2) | $ | 7,982 | $ | 7,982 | $ | 8,393 | $ | 8,393 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 496 | 496 | 468 | 468 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 1,699 | 2,108 | 1,651 | 2,077 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 40 | 44 | 41 | 45 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 23 | 44 | 9 | 44 | ||||||||||||||||||||||||||||||||||||
Total | $ | 10,240 | $ | 10,674 | $ | 10,562 | $ | 11,027 | ||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, real estate joint ventures and other invested assets is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
As described in Note 11, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the six months ended June 30, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 468 | $ | 524 | $ | 960 | $ | 1,066 | ||||||||||||||||||||||||||||||||
Equity securities | 5 | 3 | 9 | 5 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | 75 | 83 | 152 | 165 | ||||||||||||||||||||||||||||||||||||
Policy loans | 15 | 14 | 29 | 28 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 16 | 18 | 39 | 26 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 31 | 75 | 128 | 154 | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | — | 1 | 1 | 3 | ||||||||||||||||||||||||||||||||||||
International joint ventures | (1 | ) | — | (1 | ) | (10 | ) | |||||||||||||||||||||||||||||||||
Other | — | — | (4 | ) | 2 | |||||||||||||||||||||||||||||||||||
Subtotal | 609 | 718 | 1,313 | 1,439 | ||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 24 | 28 | 48 | 56 | ||||||||||||||||||||||||||||||||||||
Subtotal, net | 585 | 690 | 1,265 | 1,383 | ||||||||||||||||||||||||||||||||||||
FVO CSEs — interest income: Commercial mortgage loans | 12 | 34 | 34 | 71 | ||||||||||||||||||||||||||||||||||||
Net investment income | $ | 597 | $ | 724 | $ | 1,299 | $ | 1,454 | ||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. | ||||||||||||||||||||||||||||||||||||||||
Net Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
Components of Net Investment Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
The components of net investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector and industry: | ||||||||||||||||||||||||||||||||||||||||
U.S. and foreign corporate securities — by industry: | ||||||||||||||||||||||||||||||||||||||||
Transportation | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | ||||||||||||||||||||||||||||||
Finance | — | — | — | (3 | ) | |||||||||||||||||||||||||||||||||||
Consumer | — | — | (1 | ) | — | |||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (2 | ) | — | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
RMBS | (2 | ) | (2 | ) | (2 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (4 | ) | (2 | ) | (5 | ) | (11 | ) | ||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | 20 | 10 | 37 | 83 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | 16 | 8 | 32 | 72 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | (8 | ) | — | (8 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
Common stock | (7 | ) | — | (7 | ) | — | ||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | (15 | ) | — | (15 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 5 | 3 | 9 | 6 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | (10 | ) | 3 | (6 | ) | 3 | ||||||||||||||||||||||||||||||||||
Mortgage loans | — | 2 | 8 | 1 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 2 | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | (2 | ) | 1 | (4 | ) | 1 | ||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | 2 | (1 | ) | 3 | 1 | |||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | 8 | 14 | 33 | 78 | ||||||||||||||||||||||||||||||||||||
FVO CSEs — changes in estimated fair value subsequent to consolidation: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | (16 | ) | (23 | ) | (15 | ) | (36 | ) | ||||||||||||||||||||||||||||||||
Long-term debt — related to commercial mortgage loans | 17 | 28 | 18 | 50 | ||||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) (1) | (55 | ) | (3 | ) | (601 | ) | (10 | ) | ||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | (54 | ) | 2 | (598 | ) | 4 | ||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | (46 | ) | $ | 16 | $ | (565 | ) | $ | 82 | ||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Non-investment portfolio gain (losses) for the three months and six months ended June 30, 2014 includes a loss of ($61) million and ($608) million, respectively, related to the disposition of MAL. See Note 3. | |||||||||||||||||||||||||||||||||||||||
See “— Variable Interest Entities” for discussion of CSEs. | ||||||||||||||||||||||||||||||||||||||||
See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. | ||||||||||||||||||||||||||||||||||||||||
Gains (losses) from foreign currency transactions included within net investment gains (losses) were $3 million and $5 million for the three months and six months ended June 30, 2014, respectively, and ($3) million and ($9) million for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
Sales or Disposals and Impairments of Fixed Maturity and Equity Securities | ||||||||||||||||||||||||||||||||||||||||
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the tables below. Investment gains and losses on sales of securities are determined on a specific identification basis. | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 3,681 | $ | 2,775 | $ | 7 | $ | 17 | $ | 3,688 | $ | 2,792 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 27 | $ | 26 | $ | 5 | $ | 6 | $ | 32 | $ | 32 | ||||||||||||||||||||||||||||
Gross investment losses | (7 | ) | (16 | ) | — | (3 | ) | (7 | ) | (19 | ) | |||||||||||||||||||||||||||||
Total OTTI losses: | ||||||||||||||||||||||||||||||||||||||||
Credit-related | (4 | ) | (2 | ) | — | — | (4 | ) | (2 | ) | ||||||||||||||||||||||||||||||
Other (1) | — | — | (15 | ) | — | (15 | ) | — | ||||||||||||||||||||||||||||||||
Total OTTI losses | (4 | ) | (2 | ) | (15 | ) | — | (19 | ) | (2 | ) | |||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 16 | $ | 8 | $ | (10 | ) | $ | 3 | $ | 6 | $ | 11 | |||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 7,188 | $ | 5,355 | $ | 18 | $ | 42 | $ | 7,206 | $ | 5,397 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 65 | $ | 115 | $ | 9 | $ | 10 | $ | 74 | $ | 125 | ||||||||||||||||||||||||||||
Gross investment losses | (28 | ) | (32 | ) | — | (4 | ) | (28 | ) | (36 | ) | |||||||||||||||||||||||||||||
Total OTTI losses: | ||||||||||||||||||||||||||||||||||||||||
Credit-related | (5 | ) | (8 | ) | — | — | (5 | ) | (8 | ) | ||||||||||||||||||||||||||||||
Other (1) | — | (3 | ) | (15 | ) | (3 | ) | (15 | ) | (6 | ) | |||||||||||||||||||||||||||||
Total OTTI losses | (5 | ) | (11 | ) | (15 | ) | (3 | ) | (20 | ) | (14 | ) | ||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 32 | $ | 72 | $ | (6 | ) | $ | 3 | $ | 26 | $ | 75 | |||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and (iii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. | |||||||||||||||||||||||||||||||||||||||
Credit Loss Rollforward | ||||||||||||||||||||||||||||||||||||||||
The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 55 | $ | 60 | $ | 57 | $ | 59 | ||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI recognized on securities not previously impaired | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI recognized on securities previously impaired | 1 | — | 1 | 7 | ||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI | (2 | ) | (3 | ) | (4 | ) | (9 | ) | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 54 | $ | 58 | $ | 54 | $ | 58 | ||||||||||||||||||||||||||||||||
Related Party Investment Transactions | ||||||||||||||||||||||||||||||||||||||||
The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred to affiliates | $ | 91 | $ | — | $ | 445 | $ | 13 | ||||||||||||||||||||||||||||||||
Amortized cost of invested assets transferred to affiliates | $ | 83 | $ | — | $ | 416 | $ | 12 | ||||||||||||||||||||||||||||||||
Net investment gains (losses) recognized on transfers | $ | 8 | $ | — | $ | 29 | $ | 1 | ||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred from affiliates | $ | — | $ | 77 | $ | 35 | $ | 83 | ||||||||||||||||||||||||||||||||
The Company receives investment administrative services from an affiliate. The related investment administrative service charges were $13 million and $28 million for the three months and six months ended June 30, 2014, respectively, and $17 million and $34 million for the three months and six months ended June 30, 2013, respectively. Affiliated net investment income was less than $1 million for both the three months and six months ended June 30, 2014, and ($1) million for both the three months and six months ended June 30, 2013. | ||||||||||||||||||||||||||||||||||||||||
Below is a summary of certain affiliated loans, which are more fully described in Note 7 of the Notes of the Consolidated Financial Statements included in the 2013 Annual Report. | ||||||||||||||||||||||||||||||||||||||||
The Company has affiliated loans outstanding to wholly-owned real estate subsidiaries of an affiliate, MLIC, which are included in mortgage loans, with a carrying value of $363 million and $364 million at June 30, 2014 and December 31, 2013, respectively. These affiliated loans are secured by interests in the real estate subsidiaries, which own operating real estate with a fair value in excess of the loans. Net investment income from these loans was $5 million and $10 million for the three months and six months ended June 30, 2014, respectively, and $4 million and $8 million for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||||||||||||||||||||||||||
The Company has affiliated loans outstanding to MetLife, Inc., which are included in other invested assets, totaling $430 million at both June 30, 2014 and December 31, 2013. Net investment income from these loans was $6 million and $12 million, respectively, for both the three months and six months ended at June 30, 2014 and 2013. See Note 1. | ||||||||||||||||||||||||||||||||||||||||
The Company committed to lend up to $1.8 billion to Exeter, an affiliate, pursuant to a note purchase agreement. Pursuant to the agreement, MetLife Insurance Company of Connecticut committed to purchase up to $1.3 billion of notes and MLI-USA committed to purchase up to $438 million of notes through December 31, 2014. The notes will be due not later than three years after issuance. The repayment of any notes issued pursuant to this agreement is guaranteed by MetLife, Inc. Pursuant to this agreement, the Company issued loans to Exeter which are included in other invested assets, totaling $500 million at both June 30, 2014 and December 31, 2013. The loans of $375 million, issued by MetLife Insurance Company of Connecticut and $125 million, issued by MLI-USA, are both due October 15, 2015, and bear interest, payable semi-annually, at 2.47%. Net investment income from these loans was $3 million and $6 million for the three months and six months ended June 30, 2014, respectively. There was no investment income from these loans for the three months and six months ended June 30, 2013. The remaining total commitment to lend is $1.2 billion with $925 million committed by MetLife Insurance Company of Connecticut and $313 million committed by MLI-USA at June 30, 2014. |
Derivatives
Derivatives | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||||||||
6. Derivatives | ||||||||||||||||||||||||||
Accounting for Derivatives | ||||||||||||||||||||||||||
Freestanding Derivatives | ||||||||||||||||||||||||||
Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. | ||||||||||||||||||||||||||
Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. | ||||||||||||||||||||||||||
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: | ||||||||||||||||||||||||||
Statement of Operations Presentation: | Derivative: | |||||||||||||||||||||||||
Policyholder benefits and claims | • Economic hedges of variable annuity guarantees included in future policy benefits | |||||||||||||||||||||||||
Net investment income | • Economic hedges of equity method investments in joint ventures | |||||||||||||||||||||||||
Hedge Accounting | ||||||||||||||||||||||||||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | ||||||||||||||||||||||||||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | |||||||||||||||||||||||||
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | |||||||||||||||||||||||||
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. | ||||||||||||||||||||||||||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | ||||||||||||||||||||||||||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | ||||||||||||||||||||||||||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | ||||||||||||||||||||||||||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | ||||||||||||||||||||||||||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | ||||||||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||||||||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | ||||||||||||||||||||||||||
• | the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; | |||||||||||||||||||||||||
• | the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and | |||||||||||||||||||||||||
• | a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. | |||||||||||||||||||||||||
Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||||||||||||||||||||||||||
See Note 7 for information about the fair value hierarchy for derivatives. | ||||||||||||||||||||||||||
Derivative Strategies | ||||||||||||||||||||||||||
The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. | ||||||||||||||||||||||||||
Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. | ||||||||||||||||||||||||||
Interest Rate Derivatives | ||||||||||||||||||||||||||
The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, caps, floors, futures and forwards. | ||||||||||||||||||||||||||
Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional amount. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. | ||||||||||||||||||||||||||
The Company purchases interest rate caps and floors primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities, as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate (Treasury and swap) futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring and to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury or swap curve performance. The Company utilizes exchange-traded interest rate futures in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Inflation swaps are used as an economic hedge to reduce inflation risk generated from inflation-indexed liabilities. Inflation swaps are included in interest rate swaps. The Company utilizes inflation swaps in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow hedging relationships. | ||||||||||||||||||||||||||
Foreign Currency Exchange Rate Derivatives | ||||||||||||||||||||||||||
The Company uses foreign currency swaps to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a fixed exchange rate, generally set at inception, calculated by reference to an agreed upon notional amount. The notional amount of each currency is exchanged at the inception and termination of the currency swap by each party. The Company utilizes foreign currency swaps in fair value, cash flow and non-qualifying hedging relationships. | ||||||||||||||||||||||||||
To a lesser extent, the Company uses foreign currency forwards in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||||
The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, or involuntary restructuring. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. (“ISDA”) deems that a credit event has occurred. The Company utilizes credit default swaps in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. Treasury securities, agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. | ||||||||||||||||||||||||||
To a lesser extent, the Company uses credit forwards to lock in the price to be paid for forward purchases of certain securities. The Company utilizes credit forwards in cash flow hedging relationships. | ||||||||||||||||||||||||||
Equity Derivatives | ||||||||||||||||||||||||||
The Company uses a variety of equity derivatives to reduce its exposure to equity market risk, including equity index options, variance swaps and exchange-traded equity futures. | ||||||||||||||||||||||||||
Equity index options are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. To hedge against adverse changes in equity indices, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. The Company utilizes equity index options in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. The Company utilizes equity variance swaps in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
In exchange-traded equity futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of equity securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded equity futures are used primarily to hedge liabilities embedded in certain variable annuity products offered by the Company. The Company utilizes exchange-traded equity futures in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
To a lesser extent, the Company also uses total rate of return swaps (“TRRs”) to hedge its equity market guarantees in certain of its insurance products. The Company utilizes TRRs in non-qualifying hedging relationships. | ||||||||||||||||||||||||||
Primary Risks Managed by Derivatives | ||||||||||||||||||||||||||
The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Primary Underlying Risk Exposure | Notional | Estimated Fair Value | Notional | Estimated Fair Value | ||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 384 | $ | 14 | $ | 3 | $ | 436 | $ | 5 | $ | 10 | |||||||||||||
Foreign currency swaps | Foreign currency exchange rate | — | — | — | 122 | — | 13 | |||||||||||||||||||
Subtotal | 384 | 14 | 3 | 558 | 5 | 23 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 497 | 38 | 2 | 537 | 6 | 32 | |||||||||||||||||||
Interest rate forwards | Interest rate | 175 | 23 | — | 245 | 3 | 4 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 567 | 21 | 34 | 544 | 25 | 35 | |||||||||||||||||||
Subtotal | 1,239 | 82 | 36 | 1,326 | 34 | 71 | ||||||||||||||||||||
Total qualifying hedges | 1,623 | 96 | 39 | 1,884 | 39 | 94 | ||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 14,786 | 584 | 175 | 22,262 | 881 | 441 | |||||||||||||||||||
Interest rate floors | Interest rate | 17,604 | 100 | 92 | 17,604 | 103 | 99 | |||||||||||||||||||
Interest rate caps | Interest rate | 7,901 | 14 | — | 9,651 | 36 | — | |||||||||||||||||||
Interest rate futures | Interest rate | 2,338 | 2 | — | 1,443 | — | 3 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 743 | 48 | 36 | 882 | 52 | 41 | |||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 56 | — | — | 56 | — | 1 | |||||||||||||||||||
Credit default swaps — purchased | Credit | 173 | — | 1 | 157 | — | 1 | |||||||||||||||||||
Credit default swaps — written | Credit | 2,227 | 37 | — | 2,243 | 38 | — | |||||||||||||||||||
Equity futures | Equity market | 908 | — | 1 | 778 | — | 3 | |||||||||||||||||||
Equity options | Equity market | 3,465 | 266 | 60 | 3,597 | 305 | 42 | |||||||||||||||||||
Variance swaps | Equity market | 2,510 | 10 | 109 | 2,270 | 6 | 94 | |||||||||||||||||||
TRRs | Equity market | 447 | — | 16 | 462 | — | 22 | |||||||||||||||||||
Total non-designated or non-qualifying derivatives | 53,158 | 1,061 | 490 | 61,405 | 1,421 | 747 | ||||||||||||||||||||
Total | $ | 54,781 | $ | 1,157 | $ | 529 | $ | 63,289 | $ | 1,460 | $ | 841 | ||||||||||||||
Based on notional amounts, a substantial portion of the Company’s derivatives was not designated or did not qualify as part of a hedging relationship at both June 30, 2014 and December 31, 2013. The Company’s use of derivatives includes (i) derivatives that serve as macro hedges of the Company’s exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes on the statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. | ||||||||||||||||||||||||||
Net Derivative Gains (Losses) | ||||||||||||||||||||||||||
The components of net derivative gains (losses) were as follows: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives and hedging gains (losses) (1) | $ | 85 | $ | (423 | ) | $ | 151 | $ | (563 | ) | ||||||||||||||||
Embedded derivatives | 101 | (72 | ) | 215 | 181 | |||||||||||||||||||||
Total net derivative gains (losses) | $ | 186 | $ | (495 | ) | $ | 366 | $ | (382 | ) | ||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. | |||||||||||||||||||||||||
The following table presents earned income on derivatives: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | $ | 1 | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||
Interest credited to policyholder account balances | (1 | ) | 1 | (1 | ) | 2 | ||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||||||
Net derivative gains (losses) | 30 | 45 | 63 | 61 | ||||||||||||||||||||||
Policyholder benefits and claims | (2 | ) | — | (1 | ) | (7 | ) | |||||||||||||||||||
Total | $ | 28 | $ | 46 | $ | 62 | $ | 57 | ||||||||||||||||||
Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging | ||||||||||||||||||||||||||
The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: | ||||||||||||||||||||||||||
Net | Net | Policyholder | ||||||||||||||||||||||||
Derivative | Investment | Benefits and | ||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 108 | $ | — | $ | 10 | ||||||||||||||||||||
Foreign currency exchange rate derivatives | (6 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — written | 3 | — | — | |||||||||||||||||||||||
Equity derivatives | (61 | ) | (4 | ) | (16 | ) | ||||||||||||||||||||
Total | $ | 44 | $ | (4 | ) | $ | (6 | ) | ||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (425 | ) | $ | — | $ | (15 | ) | ||||||||||||||||||
Foreign currency exchange rate derivatives | 1 | — | — | |||||||||||||||||||||||
Credit derivatives — written | — | — | — | |||||||||||||||||||||||
Equity derivatives | (42 | ) | (1 | ) | (11 | ) | ||||||||||||||||||||
Total | $ | (466 | ) | $ | (1 | ) | $ | (26 | ) | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 189 | $ | — | $ | 22 | ||||||||||||||||||||
Foreign currency exchange rate derivatives | — | — | — | |||||||||||||||||||||||
Credit derivatives — written | 1 | — | — | |||||||||||||||||||||||
Equity derivatives | (118 | ) | (7 | ) | (21 | ) | ||||||||||||||||||||
Total | $ | 72 | $ | (7 | ) | $ | 1 | |||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (403 | ) | $ | — | $ | (13 | ) | ||||||||||||||||||
Foreign currency exchange rate derivatives | 16 | — | — | |||||||||||||||||||||||
Credit derivatives — written | 7 | — | — | |||||||||||||||||||||||
Equity derivatives | (243 | ) | (3 | ) | (45 | ) | ||||||||||||||||||||
Total | $ | (623 | ) | $ | (3 | ) | $ | (58 | ) | |||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. | |||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | |||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||
The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated liabilities. | ||||||||||||||||||||||||||
The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): | ||||||||||||||||||||||||||
Net Derivative | Net Derivative | Ineffectiveness | ||||||||||||||||||||||||
Gains (Losses) | Gains (Losses) | Recognized in | ||||||||||||||||||||||||
Derivatives in Fair Value | Hedged Items in Fair Value | Recognized | Recognized for | Net Derivative | ||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | for Derivatives | Hedged Items | Gains (Losses) | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | — | $ | — | $ | — | |||||||||||||||||||
Policyholder liabilities (1) | 5 | (5 | ) | — | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | (1 | ) | 1 | — | |||||||||||||||||||||
Total | $ | 4 | $ | (4 | ) | $ | — | |||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 6 | $ | (7 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (11 | ) | 10 | (1 | ) | |||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | — | — | — | ||||||||||||||||||||||
Total | $ | (5 | ) | $ | 3 | $ | (2 | ) | ||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | — | $ | — | $ | — | |||||||||||||||||||
Policyholder liabilities (1) | 14 | (14 | ) | — | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | — | — | — | ||||||||||||||||||||||
Total | $ | 14 | $ | (14 | ) | $ | — | |||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 7 | $ | (8 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (18 | ) | 16 | (2 | ) | |||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | (7 | ) | 7 | — | |||||||||||||||||||||
Total | $ | (18 | ) | $ | 15 | $ | (3 | ) | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in PABs or future policy benefits. | |||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | |||||||||||||||||||||||||
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. | ||||||||||||||||||||||||||
In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). For the three months and six months ended June 30, 2014, the amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges were not significant. For the three months and six months ended June 30, 2013, there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. | ||||||||||||||||||||||||||
At June 30, 2014 and December 31, 2013, the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed five years and six years, respectively. | ||||||||||||||||||||||||||
At June 30, 2014 and December 31, 2013, the balance in AOCI associated with cash flow hedges was $133 million and $39 million, respectively. | ||||||||||||||||||||||||||
The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholders’ equity: | ||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | |||||||||||||||||||||||
Hedging Relationships | (Losses) Deferred in | of Gains (Losses) | of Gains (Losses) | |||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income (Loss) | ||||||||||||||||||||||||
AOCI into Income (Loss) | on Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||
Net Derivative | Net Investment | Net Derivative | ||||||||||||||||||||||||
Gains (Losses) | Income | Gains (Losses) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 26 | $ | — | $ | — | $ | (1 | ) | |||||||||||||||||
Interest rate forwards | 11 | 1 | 1 | — | ||||||||||||||||||||||
Foreign currency swaps | (5 | ) | — | — | — | |||||||||||||||||||||
Total | $ | 32 | $ | 1 | $ | 1 | $ | (1 | ) | |||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (54 | ) | $ | — | $ | — | $ | 1 | |||||||||||||||||
Interest rate forwards | (20 | ) | 3 | — | 1 | |||||||||||||||||||||
Foreign currency swaps | (2 | ) | — | — | — | |||||||||||||||||||||
Total | $ | (76 | ) | $ | 3 | $ | — | $ | 2 | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 68 | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest rate forwards | 31 | 1 | 1 | 1 | ||||||||||||||||||||||
Foreign currency swaps | (3 | ) | — | — | — | |||||||||||||||||||||
Total | $ | 96 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (77 | ) | $ | (1 | ) | $ | — | $ | 1 | ||||||||||||||||
Interest rate forwards | (35 | ) | 6 | 1 | 1 | |||||||||||||||||||||
Foreign currency swaps | 22 | (1 | ) | — | 1 | |||||||||||||||||||||
Total | $ | (90 | ) | $ | 4 | $ | 1 | $ | 3 | |||||||||||||||||
All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||
At June 30, 2014, ($1) million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. | ||||||||||||||||||||||||||
Credit Derivatives | ||||||||||||||||||||||||||
In connection with synthetically created credit investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the Company paying the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company’s maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $2.2 billion at both June 30, 2014 and December 31, 2013. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At June 30, 2014 and December 31, 2013, the Company would have received $37 million and $38 million, respectively, to terminate all of these contracts. | ||||||||||||||||||||||||||
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | ||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | ||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | |||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | |||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | |||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||
Aaa/Aa/A | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 2 | $ | 135 | 2.2 | $ | 3 | $ | 115 | 2.7 | ||||||||||||||||
Credit default swaps referencing indices | 3 | 602 | 0.8 | 6 | 650 | 1.1 | ||||||||||||||||||||
Subtotal | 5 | 737 | 1 | 9 | 765 | 1.3 | ||||||||||||||||||||
Baa | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 8 | 416 | 2.5 | 8 | 446 | 3 | ||||||||||||||||||||
Credit default swaps referencing indices | 21 | 1,039 | 4.7 | 18 | 996 | 4.9 | ||||||||||||||||||||
Subtotal | 29 | 1,455 | 4.1 | 26 | 1,442 | 4.3 | ||||||||||||||||||||
B | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | ||||||||||||||||||||
Credit default swaps referencing indices | 3 | 35 | 5 | 3 | 36 | 5 | ||||||||||||||||||||
Subtotal | 3 | 35 | 5 | 3 | 36 | 5 | ||||||||||||||||||||
Total | $ | 37 | $ | 2,227 | 3.1 | $ | 38 | $ | 2,243 | 3.3 | ||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||
-2 | Assumes the value of the referenced credit obligations is zero. | |||||||||||||||||||||||||
-3 | The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts. | |||||||||||||||||||||||||
Credit Risk on Freestanding Derivatives | ||||||||||||||||||||||||||
The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. | ||||||||||||||||||||||||||
The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company’s OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company’s ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. | ||||||||||||||||||||||||||
The Company’s OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis, and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. | ||||||||||||||||||||||||||
See Note 7 for a description of the impact of credit risk on the valuation of derivatives. | ||||||||||||||||||||||||||
The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: | ||||||||||||||||||||||||||
OTC-bilateral (1) | $ | 1,122 | $ | 508 | $ | 1,450 | $ | 851 | ||||||||||||||||||
OTC-cleared (1) | 58 | 35 | 50 | 9 | ||||||||||||||||||||||
Exchange-traded | 2 | 1 | — | 6 | ||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 1,182 | 544 | 1,500 | 866 | ||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | ||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 1,182 | 544 | 1,500 | 866 | ||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | ||||||||||||||||||||||||||
OTC-bilateral | (360 | ) | (360 | ) | (670 | ) | (670 | ) | ||||||||||||||||||
OTC-cleared | (28 | ) | (28 | ) | (8 | ) | (8 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Cash collateral: (3) | ||||||||||||||||||||||||||
OTC-bilateral | (170 | ) | — | (216 | ) | — | ||||||||||||||||||||
OTC-cleared | (30 | ) | (7 | ) | (40 | ) | (1 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | (5 | ) | |||||||||||||||||||||
Securities collateral: (4) | ||||||||||||||||||||||||||
OTC-bilateral | (581 | ) | (145 | ) | (554 | ) | (160 | ) | ||||||||||||||||||
OTC-cleared | — | — | — | — | ||||||||||||||||||||||
Exchange-traded | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 13 | $ | 3 | $ | 12 | $ | 21 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | At June 30, 2014 and December 31, 2013, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $25 million and $40 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $15 million and $25 million, respectively. | |||||||||||||||||||||||||
-2 | Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. | |||||||||||||||||||||||||
-3 | Cash collateral received is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2014 and December 31, 2013, the Company received excess cash collateral of $6 million and $21 million, respectively, and provided excess cash collateral of $24 million and $19 million, respectively, which is not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
-4 | Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or repledge this collateral, but at June 30, 2014 none of the collateral had been sold or repledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2014 and December 31, 2013, the Company received excess securities collateral with an estimated fair value of $18 million and $34 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2014 and December 31, 2013, the Company provided excess securities collateral with an estimated fair value of $7 million and $1 million, respectively, for its OTC-bilateral derivatives and $29 million and $29 million, respectively, for its OTC-cleared derivatives, and $55 million and $46 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
The Company’s collateral arrangements for its OTC-bilateral derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty’s derivatives reaches a pre-determined threshold. Certain of these arrangements also include financial strength-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the financial strength ratings of the Company and/or the credit ratings of the counterparty. In addition, certain of the Company’s netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody’s and S&P. If a party’s financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party’s reasonable valuation of the derivatives. | ||||||||||||||||||||||||||
The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company’s financial strength rating at the reporting date or if the Company’s financial strength rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. | ||||||||||||||||||||||||||
Estimated Fair Value of | Fair Value of Incremental | |||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | |||||||||||||||||||||||||
Estimated | Fixed Maturity | One Notch | Downgrade in the | |||||||||||||||||||||||
Fair Value of | Securities | Downgrade | Company’s Financial Strength Rating | |||||||||||||||||||||||
Derivatives in Net | in the | to a Level that Triggers | ||||||||||||||||||||||||
Liability Position (1) | Company’s | Full Overnight Collateralization or | ||||||||||||||||||||||||
Financial Strength | Termination of | |||||||||||||||||||||||||
Rating | the Derivative Position | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
June 30, 2014 | $ | 148 | $ | 152 | $ | — | $ | 2 | ||||||||||||||||||
December 31, 2013 | $ | 181 | $ | 161 | $ | — | $ | 2 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | After taking into consideration the existence of netting agreements. | |||||||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||||||||
The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, guaranteed minimum accumulation benefits (“GMABs”) and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; affiliated assumed reinsurance of guaranteed minimum benefits related to GMWBs and certain GMIBs; funds withheld on ceded reinsurance; fixed annuities with equity-indexed returns; and certain debt and equity securities. | ||||||||||||||||||||||||||
The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: | ||||||||||||||||||||||||||
Balance Sheet Location | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts: | ||||||||||||||||||||||||||
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | $ | 1,373 | $ | 912 | |||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (38 | ) | (30 | ) | |||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 1,335 | $ | 882 | ||||||||||||||||||||||
Net embedded derivatives within liability host contracts: | ||||||||||||||||||||||||||
Direct guaranteed minimum benefits | PABs | $ | (1,210 | ) | $ | (1,232 | ) | |||||||||||||||||||
Assumed guaranteed minimum benefits | Other policyholder funds | (12 | ) | (13 | ) | |||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 254 | 34 | |||||||||||||||||||||||
Other | PABs | 15 | — | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | (953 | ) | $ | (1,211 | ) | ||||||||||||||||||||
The following table presents changes in estimated fair value related to embedded derivatives: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net derivative gains (losses) (1), (2) | $ | 101 | $ | (72 | ) | $ | 215 | $ | 181 | |||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $2 million and $7 million for the three months and six months ended June 30, 2014, respectively, and ($38) million and ($127) million for the three months and six months ended June 30, 2013, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $15 million and ($4) million for the three months and six months ended June 30, 2014, respectively, and $41 million and $159 million for the three months and six months ended June 30, 2013, respectively. | |||||||||||||||||||||||||
-2 | See Note 12 for discussion of affiliated net derivative gains (losses) included in the table above. |
Fair_Value
Fair Value | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||||||||||
7. Fair Value | |||||||||||||||||||||||||||||||||
Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. | |||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||||||||||||||||||
The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below. | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Estimated | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 14,535 | $ | 1,414 | $ | 15,949 | |||||||||||||||||||||||||
Foreign corporate | — | 4,472 | 689 | 5,161 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 6,260 | 4,667 | — | 10,927 | |||||||||||||||||||||||||||||
RMBS | — | 4,471 | 529 | 5,000 | |||||||||||||||||||||||||||||
State and political subdivision | — | 2,355 | 2 | 2,357 | |||||||||||||||||||||||||||||
ABS | — | 1,393 | 218 | 1,611 | |||||||||||||||||||||||||||||
CMBS | — | 1,286 | 85 | 1,371 | |||||||||||||||||||||||||||||
Foreign government | — | 697 | — | 697 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 6,260 | 33,876 | 2,937 | 43,073 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 168 | 62 | 230 | |||||||||||||||||||||||||||||
Common stock | 100 | 82 | 36 | 218 | |||||||||||||||||||||||||||||
Total equity securities | 100 | 250 | 98 | 448 | |||||||||||||||||||||||||||||
Short-term investments (1) | 251 | 933 | — | 1,184 | |||||||||||||||||||||||||||||
Mortgage loans held by CSEs — FVO | — | 638 | — | 638 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
FVO securities | — | — | — | — | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 2 | 750 | 23 | 775 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 69 | — | 69 | |||||||||||||||||||||||||||||
Credit | — | 34 | 3 | 37 | |||||||||||||||||||||||||||||
Equity market | — | 266 | 10 | 276 | |||||||||||||||||||||||||||||
Total derivative assets | 2 | 1,119 | 36 | 1,157 | |||||||||||||||||||||||||||||
Total other invested assets | 2 | 1,119 | 36 | 1,157 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 1,373 | 1,373 | |||||||||||||||||||||||||||||
Separate account assets (4) | 262 | 99,710 | 161 | 100,133 | |||||||||||||||||||||||||||||
Total assets | $ | 6,875 | $ | 136,526 | $ | 4,605 | $ | 148,006 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 272 | $ | — | $ | 272 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 70 | — | 70 | |||||||||||||||||||||||||||||
Credit | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Equity market | 1 | 76 | 109 | 186 | |||||||||||||||||||||||||||||
Total derivative liabilities | 1 | 419 | 109 | 529 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | — | (953 | ) | (953 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 499 | — | 499 | |||||||||||||||||||||||||||||
Total liabilities | $ | 1 | $ | 918 | $ | (844 | ) | $ | 75 | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Estimated | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 15,454 | $ | 1,248 | $ | 16,702 | |||||||||||||||||||||||||
Foreign corporate | — | 7,783 | 734 | 8,517 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 4,365 | 3,929 | — | 8,294 | |||||||||||||||||||||||||||||
RMBS | — | 4,266 | 422 | 4,688 | |||||||||||||||||||||||||||||
State and political subdivision | — | 2,224 | — | 2,224 | |||||||||||||||||||||||||||||
ABS | — | 1,682 | 419 | 2,101 | |||||||||||||||||||||||||||||
CMBS | — | 1,532 | 72 | 1,604 | |||||||||||||||||||||||||||||
Foreign government | — | 1,122 | — | 1,122 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 4,365 | 37,992 | 2,895 | 45,252 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 136 | 81 | 217 | |||||||||||||||||||||||||||||
Common stock | 86 | 84 | 31 | 201 | |||||||||||||||||||||||||||||
Total equity securities | 86 | 220 | 112 | 418 | |||||||||||||||||||||||||||||
Short-term investments (1) | 391 | 1,671 | — | 2,062 | |||||||||||||||||||||||||||||
Mortgage loans held by CSEs — FVO | — | 1,598 | — | 1,598 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
FVO securities | — | 9 | — | 9 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | — | 1,011 | 23 | 1,034 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 77 | — | 77 | |||||||||||||||||||||||||||||
Credit | — | 32 | 6 | 38 | |||||||||||||||||||||||||||||
Equity market | — | 305 | 6 | 311 | |||||||||||||||||||||||||||||
Total derivative assets | — | 1,425 | 35 | 1,460 | |||||||||||||||||||||||||||||
Total other invested assets | — | 1,434 | 35 | 1,469 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 912 | 912 | |||||||||||||||||||||||||||||
Separate account assets (4) | 259 | 97,368 | 153 | 97,780 | |||||||||||||||||||||||||||||
Total assets | $ | 5,101 | $ | 140,283 | $ | 4,107 | $ | 149,491 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 3 | $ | 574 | $ | 12 | $ | 589 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 90 | — | 90 | |||||||||||||||||||||||||||||
Credit | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Equity market | 3 | 64 | 94 | 161 | |||||||||||||||||||||||||||||
Total derivative liabilities | 6 | 729 | 106 | 841 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | — | (1,211 | ) | (1,211 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 1,461 | — | 1,461 | |||||||||||||||||||||||||||||
Total liabilities | $ | 6 | $ | 2,190 | $ | (1,105 | ) | $ | 1,091 | ||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. | ||||||||||||||||||||||||||||||||
-2 | Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. | ||||||||||||||||||||||||||||||||
-3 | Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented primarily within PABs and other liabilities on the consolidated balance sheets. At June 30, 2014 and December 31, 2013, equity securities also included embedded derivatives of ($38) million and ($30) million, respectively. | ||||||||||||||||||||||||||||||||
-4 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. | ||||||||||||||||||||||||||||||||
The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
Valuation Controls and Procedures | |||||||||||||||||||||||||||||||||
On behalf of the Company and MetLife, Inc.’s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to MetLife Insurance Company of Connecticut’s Audit Committee regarding compliance with fair value accounting standards. | |||||||||||||||||||||||||||||||||
The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management’s knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as “consensus pricing,” represent a reasonable estimate of fair value by considering such pricing relative to the Company’s knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent 1% of the total estimated fair value of fixed maturity securities and 16% of the total estimated fair value of Level 3 fixed maturity securities. | |||||||||||||||||||||||||||||||||
The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management’s best estimate is used. | |||||||||||||||||||||||||||||||||
Securities, Short-term Investments and Long-term Debt of CSEs — FVO | |||||||||||||||||||||||||||||||||
When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. | |||||||||||||||||||||||||||||||||
When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. | |||||||||||||||||||||||||||||||||
The estimated fair value of long-term debt of CSEs — FVO is determined on a basis consistent with the methodologies described herein for securities. | |||||||||||||||||||||||||||||||||
Level 2 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
This level includes securities priced principally by independent pricing services using observable inputs. FVO securities and short-term investments within this level are of a similar nature and class to the Level 2 fixed maturity securities and equity securities. | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate securities | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market and income approaches. Valuations are based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Privately-placed securities are valued using matrix pricing methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer, and in certain cases, delta spread adjustments to reflect specific credit-related issues. | |||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market approach. Valuations are based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques using standard market observable inputs such as a benchmark U.S. Treasury yield curve, the spread off the U.S. Treasury yield curve for the identical security and comparable securities that are actively traded. | |||||||||||||||||||||||||||||||||
Structured securities comprised of RMBS, ABS and CMBS | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques using standard market inputs, including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information, including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans. | |||||||||||||||||||||||||||||||||
State and political subdivision and foreign government securities | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market approach. Valuations are based primarily on matrix pricing or other similar techniques using standard market observable inputs including a benchmark U.S. Treasury yield or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating. | |||||||||||||||||||||||||||||||||
Non-redeemable preferred and common stock | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market approach. Valuations are based principally on observable inputs, including quoted prices in markets that are not considered active. | |||||||||||||||||||||||||||||||||
Level 3 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
In general, securities classified within Level 3 use many of the same valuation techniques and inputs as described previously for Level 2. However, if key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3. The use of independent non-binding broker quotations to value investments generally indicates there is a lack of liquidity or a lack of transparency in the process to develop the valuation estimates, generally causing these investments to be classified in Level 3. | |||||||||||||||||||||||||||||||||
Short-term investments within this level are of a similar nature and class to the Level 3 securities described below; accordingly, the valuation techniques and significant market standard observable inputs used in their valuation are also similar to those described below. | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate securities | |||||||||||||||||||||||||||||||||
These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market approach. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or inputs that cannot be derived principally from, or corroborated by, observable market data, including illiquidity premium, delta spread adjustments to reflect specific credit-related issues, credit spreads; and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain valuations are based on independent non-binding broker quotations. | |||||||||||||||||||||||||||||||||
Structured securities comprised of RMBS, ABS and CMBS | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, including credit spreads. Below investment grade securities and sub-prime RMBS included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain of these valuations are based on independent non-binding broker quotations. | |||||||||||||||||||||||||||||||||
State and political subdivision and foreign government securities | |||||||||||||||||||||||||||||||||
These securities are principally valued using the market approach. Valuations are based primarily on independent non-binding broker quotations and inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2. Certain valuations are based on matrix pricing that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, including credit spreads. | |||||||||||||||||||||||||||||||||
Non-redeemable preferred and common stock | |||||||||||||||||||||||||||||||||
These securities, including privately-held securities and financial services industry hybrid securities classified within equity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques using inputs such as comparable credit rating and issuance structure. Certain of these securities are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 and independent non-binding broker quotations. | |||||||||||||||||||||||||||||||||
Mortgage Loans Held by CSEs — FVO | |||||||||||||||||||||||||||||||||
The Company consolidates certain securitization entities that hold mortgage loans. | |||||||||||||||||||||||||||||||||
Level 2 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
These investments are principally valued using the market approach. The principal market for these investments is the securitization market. The Company uses the quoted securitization market price of the obligations of the CSEs to determine the estimated fair value of these commercial loan portfolios. These market prices are determined principally by independent pricing services using observable inputs. | |||||||||||||||||||||||||||||||||
Separate Account Assets | |||||||||||||||||||||||||||||||||
Separate account assets are carried at estimated fair value and reported as a summarized total on the consolidated balance sheets. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets. Separate account assets include: mutual funds, fixed maturity securities, equity securities, derivatives, other limited partnership interests, short-term investments and cash and cash equivalents. | |||||||||||||||||||||||||||||||||
Level 2 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
These assets are comprised of investments that are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs.” Also included are certain mutual funds without readily determinable fair values, as prices are not published publicly. Valuation of the mutual funds is based upon quoted prices or reported net asset value (“NAV”) provided by the fund managers. | |||||||||||||||||||||||||||||||||
Level 3 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
These assets are comprised of investments that are similar in nature to the instruments described under “— Securities, Short-term Investments and Long-term Debt of CSEs.” Also included are other limited partnership interests, which are valued giving consideration to the value of the underlying holdings of the partnerships and by applying a premium or discount, if appropriate, for factors such as liquidity, bid/ask spreads, the performance record of the fund manager or other relevant variables that may impact the exit value of the particular partnership interest. | |||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives, or through the use of pricing models for OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in “— Investments.” | |||||||||||||||||||||||||||||||||
The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared derivatives are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. Significant inputs that are observable generally include: interest rates, foreign currency exchange rates, interest rate curves, credit curves and volatility. However, certain OTC-bilateral and OTC-cleared derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant inputs that are unobservable generally include references to emerging market currencies and inputs that are outside the observable portion of the interest rate curve, credit curve, volatility or other relevant market measure. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. | |||||||||||||||||||||||||||||||||
Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company’s derivatives and could materially affect net income. | |||||||||||||||||||||||||||||||||
The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk-free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, additional credit risk adjustments are not currently required in the valuation process. The Company’s ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. | |||||||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Level 2 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. These derivatives are principally valued using the income approach. | |||||||||||||||||||||||||||||||||
Interest rate | |||||||||||||||||||||||||||||||||
Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and basis curves. | |||||||||||||||||||||||||||||||||
Option-based. Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, basis curves and interest rate volatility. | |||||||||||||||||||||||||||||||||
Foreign currency exchange rate | |||||||||||||||||||||||||||||||||
Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, basis curves, currency spot rates and cross currency basis curves. | |||||||||||||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||
Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, credit curves and recovery rates. | |||||||||||||||||||||||||||||||||
Equity market | |||||||||||||||||||||||||||||||||
Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, spot equity index levels and dividend yield curves. | |||||||||||||||||||||||||||||||||
Option-based. Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, spot equity index levels, dividend yield curves and equity volatility. | |||||||||||||||||||||||||||||||||
Level 3 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
These derivatives are principally valued using the income approach. Valuations of non-option-based derivatives utilize present value techniques, whereas valuations of option-based derivatives utilize option pricing models. These valuation methodologies generally use the same inputs as described in the corresponding sections above for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. | |||||||||||||||||||||||||||||||||
Interest rate | |||||||||||||||||||||||||||||||||
Non-option-based. Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve and basis curves. | |||||||||||||||||||||||||||||||||
Credit | |||||||||||||||||||||||||||||||||
Non-option-based. Significant unobservable inputs may include credit spreads, repurchase rates and the extrapolation beyond observable limits of the swap yield curve and credit curves. Certain of these derivatives are valued based on independent non-binding broker quotations. | |||||||||||||||||||||||||||||||||
Equity market | |||||||||||||||||||||||||||||||||
Non-option-based. Significant unobservable inputs may include the extrapolation beyond observable limits of dividend yield curves and equity volatility. | |||||||||||||||||||||||||||||||||
Embedded Derivatives | |||||||||||||||||||||||||||||||||
Embedded derivatives principally include certain direct, assumed and ceded variable annuity guarantees and embedded derivatives related to funds withheld on ceded reinsurance and within certain annuity contracts. Embedded derivatives are recorded at estimated fair value with changes in estimated fair value reported in net income. | |||||||||||||||||||||||||||||||||
The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and GMIBs contain embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are primarily classified within PABs on the consolidated balance sheets. | |||||||||||||||||||||||||||||||||
The fair value of these embedded derivatives, estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk-free rates. | |||||||||||||||||||||||||||||||||
Capital market assumptions, such as risk-free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. | |||||||||||||||||||||||||||||||||
The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife, Inc. | |||||||||||||||||||||||||||||||||
Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. | |||||||||||||||||||||||||||||||||
The Company assumed, from an affiliated insurance company, the risk associated with certain GMIBs. These embedded derivatives are included in other policy-related balances on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these assumed risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. | |||||||||||||||||||||||||||||||||
The Company ceded, to an affiliated reinsurance company, the risk associated with certain of the GMIBs, GMABs and GMWBs described above that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to the same affiliated reinsurance company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within premiums, reinsurance and other receivables on the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. | |||||||||||||||||||||||||||||||||
The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as previously described in “— Investments — Securities, Short-term Investments and Long-term Debt of CSEs.” The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities on the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. | |||||||||||||||||||||||||||||||||
The Company issues certain annuity contracts which allow the policyholder to participate in returns from equity indices. These equity indexed features are embedded derivatives which are measured at estimated fair value separately from the host fixed annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within PABs on the consolidated balance sheets. | |||||||||||||||||||||||||||||||||
The estimated fair value of the embedded equity indexed derivatives, based on the present value of future equity returns to the policyholder using actuarial and present value assumptions including expectations concerning policyholder behavior, is calculated by the Company’s actuarial department. The calculation is based on in-force business and uses standard capital market techniques, such as Black-Scholes, to calculate the value of the portion of the embedded derivative for which the terms are set. The portion of the embedded derivative covering the period beyond where terms are set is calculated as the present value of amounts expected to be spent to provide equity indexed returns in those periods. The valuation of these embedded derivatives also includes the establishment of a risk margin, as well as changes in nonperformance risk. | |||||||||||||||||||||||||||||||||
Embedded Derivatives Within Asset and Liability Host Contracts | |||||||||||||||||||||||||||||||||
Level 3 Valuation Techniques and Key Inputs: | |||||||||||||||||||||||||||||||||
Direct and assumed guaranteed minimum benefits | |||||||||||||||||||||||||||||||||
These embedded derivatives are principally valued using the income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. | |||||||||||||||||||||||||||||||||
Reinsurance ceded on certain guaranteed minimum benefits | |||||||||||||||||||||||||||||||||
These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in “— Direct and Assumed Guaranteed Minimum Benefits” and also include counterparty credit spreads. | |||||||||||||||||||||||||||||||||
Transfers between Levels | |||||||||||||||||||||||||||||||||
Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. | |||||||||||||||||||||||||||||||||
Transfers between Levels 1 and 2: | |||||||||||||||||||||||||||||||||
For assets and liabilities measured at estimated fair value and still held at June 30, 2014, there were no transfers between Levels 1 and 2. Transfers between Levels 1 and 2 were not significant for assets and liabilities measured at estimated fair value and still held at December 31, 2013. | |||||||||||||||||||||||||||||||||
Transfers into or out of Level 3: | |||||||||||||||||||||||||||||||||
Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. | |||||||||||||||||||||||||||||||||
Transfers into Level 3 for fixed maturity securities were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads. | |||||||||||||||||||||||||||||||||
Transfers out of Level 3 for fixed maturity securities resulted primarily from increased transparency of both new issuances that, subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings. | |||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Range | Average (1) | Average (1) | |||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | Ÿ | Matrix pricing | Ÿ | Delta spread adjustments (4) | 10 | - | 125 | 31 | -10 | - | 240 | 51 | Decrease | ||||||||||||||||||||
Ÿ | Illiquidity premium (4) | 30 | - | 30 | 30 | 30 | - | 30 | 30 | Decrease | |||||||||||||||||||||||
Ÿ | Credit spreads (4) | -114 | - | 539 | 258 | -112 | - | 538 | 208 | Decrease | |||||||||||||||||||||||
Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 99 | - | 100 | 100 | Increase | |||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | — | - | 705 | 133 | Increase | |||||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 68 | - | 700 | 400 | 33 | - | 103 | 87 | Increase | |||||||||||||||||||||
RMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 220 | - | 582 | 342 | -96 | - | 2,406 | 295 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 91 | - | 103 | 96 | 10 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 1 | - | 107 | 92 | 78 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
CMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | -89 | - | 95 | -33 | 341 | - | 1,879 | 746 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 1 | - | 104 | 102 | 97 | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 101 | - | 101 | 101 | Increase (6) | |||||||||||||||||||||
ABS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 111 | - | 914 | 358 | 30 | - | 875 | 319 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 97 | - | 100 | 100 | — | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 62 | - | 106 | 99 | 58 | - | 106 | 98 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | Ÿ | Present value techniques | Ÿ | Swap yield (7) | 353 | - | 353 | 248 | - | 450 | Increase (11) | ||||||||||||||||||||||
Credit | Ÿ | Present value techniques | Ÿ | Credit spreads (8) | 99 | - | 100 | 98 | - | 100 | Decrease (8) | ||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (9) | ||||||||||||||||||||||||||||||
Equity market | Ÿ | Present value techniques | Ÿ | Volatility (10) | 13% | - | 22% | 17% | - | 28% | Increase (11) | ||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | Ÿ | Option pricing techniques | Ÿ | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (12) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (12) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (12) | ||||||||||||||||||||||||||
Ÿ | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Ÿ | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (14) | |||||||||||||||||||||||||
Ÿ | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -15 | |||||||||||||||||||||||||
Ÿ | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (16) | |||||||||||||||||||||||||
Ÿ | Nonperformance risk spread | 0.03% | - | 1.31% | 0.03% | - | 0.44% | Decrease (17) | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | ||||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | ||||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | ||||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | ||||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | ||||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | ||||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-8 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-9 | At both June 30, 2014 and December 31, 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | ||||||||||||||||||||||||||||||||
-10 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-12 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-13 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-14 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-15 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | ||||||||||||||||||||||||||||||||
-16 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-17 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in “— Nonrecurring Fair Value Measurements.” | |||||||||||||||||||||||||||||||||
The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,400 | $ | 723 | $ | 535 | $ | — | $ | 185 | $ | 102 | $ | — | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 2 | 1 | 1 | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | 17 | 14 | 7 | — | (3 | ) | — | — | |||||||||||||||||||||||||
Purchases (3) | 31 | 9 | 63 | — | 49 | 2 | — | ||||||||||||||||||||||||||
Sales (3) | (22 | ) | (48 | ) | (15 | ) | — | (27 | ) | (4 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 15 | — | — | 2 | 38 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (29 | ) | (8 | ) | (62 | ) | — | (24 | ) | (15 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,414 | $ | 689 | $ | 529 | $ | 2 | $ | 218 | $ | 85 | $ | — | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 2 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non - | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 89 | $ | 33 | $ | 91 | $ | 38 | $ | 4 | $ | (95 | ) | $ | 2,237 | $ | 160 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | 9 | (1 | ) | (4 | ) | 107 | — | |||||||||||||||||||||||
OCI | 6 | 3 | — | 11 | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | 6 | |||||||||||||||||||||||||
Sales (3) | — | — | (47 | ) | — | — | — | — | (4 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (35 | ) | — | — | (18 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (33 | ) | — | (44 | ) | — | — | — | — | (1 | ) | ||||||||||||||||||||||
Balance, end of period | $ | 62 | $ | 36 | $ | — | $ | 23 | $ | 3 | $ | (99 | ) | $ | 2,326 | $ | 161 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (4 | ) | $ | 121 | $ | — | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,267 | $ | 786 | $ | 314 | $ | 25 | $ | 420 | $ | 106 | $ | 2 | |||||||||||||||||||
Total realized/unrealized gains (losses)included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 3 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (3 | ) | (1 | ) | — | — | — | 1 | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | (40 | ) | (29 | ) | — | — | (1 | ) | — | — | |||||||||||||||||||||||
Purchases (3) | 111 | 69 | 86 | — | 61 | 4 | — | ||||||||||||||||||||||||||
Sales (3) | (75 | ) | (25 | ) | (51 | ) | — | (42 | ) | (40 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 8 | 23 | 3 | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (102 | ) | (10 | ) | — | (19 | ) | (15 | ) | (5 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,169 | $ | 813 | $ | 352 | $ | 6 | $ | 423 | $ | 66 | $ | 2 | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 79 | $ | 26 | $ | 396 | $ | 106 | $ | 8 | $ | (86 | ) | $ | 2,550 | $ | 139 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | (26 | ) | (2 | ) | 2 | (81 | ) | — | ||||||||||||||||||||||
OCI | 2 | 1 | — | (20 | ) | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | 3 | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||
Sales (3) | — | — | (366 | ) | — | — | — | — | (2 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (12 | ) | — | — | (16 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | 1 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (30 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||||
Balance, end of period | $ | 81 | $ | 30 | $ | 2 | $ | 47 | $ | 6 | $ | (84 | ) | $ | 2,453 | $ | 140 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | (22 | ) | $ | (2 | ) | $ | 3 | $ | (74 | ) | $ | — | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,248 | $ | 734 | $ | 422 | $ | — | $ | 419 | $ | 72 | $ | — | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 3 | 1 | 2 | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | (3 | ) | 3 | — | 1 | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | 45 | 30 | 9 | — | — | 1 | — | ||||||||||||||||||||||||||
Purchases (3) | 61 | 10 | 144 | — | 74 | 18 | — | ||||||||||||||||||||||||||
Sales (3) | (63 | ) | (52 | ) | (47 | ) | — | (81 | ) | (5 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 164 | — | 14 | 2 | 22 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (43 | ) | (31 | ) | (18 | ) | — | (217 | ) | (1 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,414 | $ | 689 | $ | 529 | $ | 2 | $ | 218 | $ | 85 | $ | — | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 81 | $ | 31 | $ | — | $ | 11 | $ | 6 | $ | (88 | ) | $ | 2,123 | $ | 153 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | (3 | ) | — | — | — | — | — | 5 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | 17 | (3 | ) | (11 | ) | 225 | — | |||||||||||||||||||||||
OCI | 4 | 8 | — | 31 | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | 8 | |||||||||||||||||||||||||
Sales (3) | — | (6 | ) | — | — | — | — | — | (5 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (36 | ) | — | — | (22 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | 6 | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (22 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | 62 | $ | 36 | $ | — | $ | 23 | $ | 3 | $ | (99 | ) | $ | 2,326 | $ | 161 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | (3 | ) | $ | (11 | ) | $ | 247 | $ | — | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,434 | $ | 868 | $ | 278 | $ | 25 | $ | 343 | $ | 125 | $ | 3 | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 5 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (3 | ) | (3 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | (13 | ) | (23 | ) | 8 | — | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||||
Purchases (3) | 139 | 87 | 85 | — | 124 | 6 | — | ||||||||||||||||||||||||||
Sales (3) | (126 | ) | (65 | ) | (27 | ) | — | (16 | ) | (53 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 56 | 22 | 12 | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (323 | ) | (73 | ) | (4 | ) | (19 | ) | (28 | ) | (14 | ) | — | ||||||||||||||||||||
Balance, end of period | $ | 1,169 | $ | 813 | $ | 352 | $ | 6 | $ | 423 | $ | 66 | $ | 2 | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 5 | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 93 | $ | 26 | $ | 13 | $ | 119 | $ | 10 | $ | (51 | ) | $ | 2,290 | $ | 141 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | (21 | ) | (4 | ) | (25 | ) | 173 | — | ||||||||||||||||||||||
OCI | 6 | 2 | — | (35 | ) | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | 1 | 2 | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||
Sales (3) | (18 | ) | — | (13 | ) | — | — | — | — | (3 | ) | ||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (15 | ) | — | (8 | ) | (10 | ) | — | ||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | 81 | $ | 30 | $ | 2 | $ | 47 | $ | 6 | $ | (84 | ) | $ | 2,453 | $ | 140 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | (18 | ) | $ | (4 | ) | $ | (25 | ) | $ | 186 | $ | — | ||||||||||||||
__________ | |||||||||||||||||||||||||||||||||
-1 | Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). | ||||||||||||||||||||||||||||||||
-2 | Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. | ||||||||||||||||||||||||||||||||
-3 | Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. | ||||||||||||||||||||||||||||||||
-4 | Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. | ||||||||||||||||||||||||||||||||
-5 | Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. | ||||||||||||||||||||||||||||||||
-6 | Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. | ||||||||||||||||||||||||||||||||
-7 | Embedded derivative assets and liabilities are presented net for purposes of the rollforward. | ||||||||||||||||||||||||||||||||
-8 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). | ||||||||||||||||||||||||||||||||
Fair Value Option | |||||||||||||||||||||||||||||||||
The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value. | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets (1) | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 582 | $ | 1,528 | |||||||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | 56 | 70 | |||||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 638 | $ | 1,598 | |||||||||||||||||||||||||||||
Liabilities (1) | |||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 493 | $ | 1,436 | |||||||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | 6 | 25 | |||||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 499 | $ | 1,461 | |||||||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses. | ||||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | |||||||||||||||||||||||||||||||||
The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||||||||||
At June 30, | Three Months | Six Months | |||||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Carrying Value After Measurement | Gains (Losses) | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Mortgage loans, net (1) | $ | 17 | $ | 19 | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||
Other limited partnership interests (2) | $ | 6 | $ | 4 | $ | (1 | ) | $ | (5 | ) | $ | (4 | ) | $ | (5 | ) | |||||||||||||||||
Real estate joint ventures (3) | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | (1 | ) | ||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. | ||||||||||||||||||||||||||||||||
-2 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both June 30, 2014 and 2013 were not significant. | ||||||||||||||||||||||||||||||||
-3 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include several real estate funds that typically invest primarily in commercial real estate. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next one to 10 years. Unfunded commitments for these investments at both June 30, 2014 and 2013 were not significant. | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments Carried at Other Than Fair Value | |||||||||||||||||||||||||||||||||
The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the “— Recurring Fair Value Measurements” section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure. | |||||||||||||||||||||||||||||||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 5,756 | $ | — | $ | — | $ | 6,191 | $ | 6,191 | |||||||||||||||||||||||
Policy loans | $ | 1,207 | $ | — | $ | 866 | $ | 409 | $ | 1,275 | |||||||||||||||||||||||
Real estate joint ventures | $ | 52 | $ | — | $ | — | $ | 105 | $ | 105 | |||||||||||||||||||||||
Other limited partnership interests | $ | 71 | $ | — | $ | — | $ | 92 | $ | 92 | |||||||||||||||||||||||
Other invested assets | $ | 931 | $ | — | $ | 1,010 | $ | — | $ | 1,010 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 6,462 | $ | — | $ | 107 | $ | 7,032 | $ | 7,139 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
PABs | $ | 18,891 | $ | — | $ | — | $ | 20,130 | $ | 20,130 | |||||||||||||||||||||||
Long-term debt | $ | 790 | $ | — | $ | 1,108 | $ | — | $ | 1,108 | |||||||||||||||||||||||
Other liabilities | $ | 364 | $ | — | $ | 197 | $ | 167 | $ | 364 | |||||||||||||||||||||||
Separate account liabilities | $ | 1,471 | $ | — | $ | 1,471 | $ | — | $ | 1,471 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 6,120 | $ | — | $ | — | $ | 6,427 | $ | 6,427 | |||||||||||||||||||||||
Policy loans | $ | 1,219 | $ | — | $ | 872 | $ | 407 | $ | 1,279 | |||||||||||||||||||||||
Real estate joint ventures | $ | 55 | $ | — | $ | — | $ | 98 | $ | 98 | |||||||||||||||||||||||
Other limited partnership interests | $ | 78 | $ | — | $ | — | $ | 89 | $ | 89 | |||||||||||||||||||||||
Other invested assets | $ | 931 | $ | — | $ | 995 | $ | — | $ | 995 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 5,928 | $ | — | $ | 24 | $ | 6,282 | $ | 6,306 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
PABs | $ | 20,875 | $ | — | $ | — | $ | 21,987 | $ | 21,987 | |||||||||||||||||||||||
Long-term debt | $ | 790 | $ | — | $ | 1,009 | $ | — | $ | 1,009 | |||||||||||||||||||||||
Other liabilities | $ | 258 | $ | — | $ | 96 | $ | 162 | $ | 258 | |||||||||||||||||||||||
Separate account liabilities | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 1,448 | |||||||||||||||||||||||
The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: | |||||||||||||||||||||||||||||||||
Mortgage Loans | |||||||||||||||||||||||||||||||||
The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans. | |||||||||||||||||||||||||||||||||
Policy Loans | |||||||||||||||||||||||||||||||||
Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates. | |||||||||||||||||||||||||||||||||
Real Estate Joint Ventures and Other Limited Partnership Interests | |||||||||||||||||||||||||||||||||
The estimated fair values of these cost method investments are generally based on the Company’s share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. | |||||||||||||||||||||||||||||||||
Other Invested Assets | |||||||||||||||||||||||||||||||||
These other invested assets are principally comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities. | |||||||||||||||||||||||||||||||||
Premiums, Reinsurance and Other Receivables | |||||||||||||||||||||||||||||||||
Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, amounts on deposit with financial institutions to facilitate daily settlements related to certain derivatives and amounts receivable for securities sold but not yet settled. | |||||||||||||||||||||||||||||||||
Amounts recoverable under ceded reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. | |||||||||||||||||||||||||||||||||
The amounts on deposit for derivative settlements, classified within Level 2, essentially represent the equivalent of demand deposit balances and amounts due for securities sold are generally received over short periods such that the estimated fair value approximates carrying value. | |||||||||||||||||||||||||||||||||
PABs | |||||||||||||||||||||||||||||||||
These PABs include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in “— Recurring Fair Value Measurements.” | |||||||||||||||||||||||||||||||||
The investment contracts primarily include certain funding agreements, fixed deferred annuities, modified guaranteed annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. | |||||||||||||||||||||||||||||||||
Long-term Debt | |||||||||||||||||||||||||||||||||
The estimated fair value of long-term debt is principally determined using market standard valuation methodologies. Valuations are based primarily on quoted prices in markets that are not active or using matrix pricing that use standard market observable inputs such as quoted prices in markets that are not active and observable yields and spreads in the market. Instruments valued using discounted cash flow methodologies use standard market observable inputs including market yield curve, duration, observable prices and spreads for similar publicly traded or privately traded issues. | |||||||||||||||||||||||||||||||||
Other Liabilities | |||||||||||||||||||||||||||||||||
Other liabilities consist primarily of interest payable, amounts due for securities purchased but not yet settled and funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values. | |||||||||||||||||||||||||||||||||
Separate Account Liabilities | |||||||||||||||||||||||||||||||||
Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts. | |||||||||||||||||||||||||||||||||
Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance and certain contracts that provide for benefit funding. | |||||||||||||||||||||||||||||||||
Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section “— Recurring Fair Value Measurements,” the value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill | ' |
8. Goodwill | |
In connection with the sale of MAL, goodwill in the Corporate Benefit Funding segment was reduced by $112 million during the first quarter of 2014. See Note 3. This goodwill was allocated to MAL based on the relative fair value of MAL to the estimated fair value of the Corporate Benefit Funding segment in total. The Company tested the remaining goodwill in the Corporate Benefit Funding segment for impairment during the first quarter of 2014 and concluded that the fair value was in excess of the carrying value and therefore, it was not impaired. |
Equity
Equity | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Equity | ' | ||||||||||||||||||
9. Equity | |||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Information regarding changes in the balances of each component of AOCI, net of income tax, was as follows: | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 1,503 | $ | 69 | $ | (17 | ) | $ | 1,555 | ||||||||||
OCI before reclassifications | 678 | 32 | 13 | 723 | |||||||||||||||
Deferred income tax benefit (expense) | (166 | ) | (12 | ) | 1 | (177 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 2,015 | 89 | (3 | ) | 2,101 | ||||||||||||||
Amounts reclassified from AOCI | (20 | ) | (2 | ) | — | (22 | ) | ||||||||||||
Deferred income tax benefit (expense) | 6 | — | — | 6 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (14 | ) | (2 | ) | — | (16 | ) | ||||||||||||
Sale of subsidiary (2) | (320 | ) | — | 6 | (314 | ) | |||||||||||||
Deferred income tax benefit (expense) | 80 | — | — | 80 | |||||||||||||||
Sale of subsidiary, net of income tax | (240 | ) | — | 6 | (234 | ) | |||||||||||||
Balance, end of period | $ | 1,761 | $ | 87 | $ | 3 | $ | 1,851 | |||||||||||
Three Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2013 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 1,944 | $ | 147 | $ | (105 | ) | $ | 1,986 | ||||||||||
OCI before reclassifications | (971 | ) | (76 | ) | (4 | ) | (1,051 | ) | |||||||||||
Deferred income tax benefit (expense) | 323 | 25 | 1 | 349 | |||||||||||||||
OCI before reclassifications, net of income tax | 1,296 | 96 | (108 | ) | 1,284 | ||||||||||||||
Amounts reclassified from AOCI | (13 | ) | (3 | ) | — | (16 | ) | ||||||||||||
Deferred income tax benefit (expense) | 2 | 2 | — | 4 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (11 | ) | (1 | ) | — | (12 | ) | ||||||||||||
Balance, end of period | $ | 1,285 | $ | 95 | $ | (108 | ) | $ | 1,272 | ||||||||||
Six Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 885 | $ | 27 | $ | (23 | ) | $ | 889 | ||||||||||
OCI before reclassifications | 1,638 | 96 | 20 | 1,754 | |||||||||||||||
Deferred income tax benefit (expense) | (489 | ) | (34 | ) | — | (523 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 2,034 | 89 | (3 | ) | 2,120 | ||||||||||||||
Amounts reclassified from AOCI | (48 | ) | (2 | ) | — | (50 | ) | ||||||||||||
Deferred income tax benefit (expense) | 15 | — | — | 15 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (33 | ) | (2 | ) | — | (35 | ) | ||||||||||||
Sale of subsidiary (2) | (320 | ) | — | 6 | (314 | ) | |||||||||||||
Deferred income tax benefit (expense) | 80 | — | — | 80 | |||||||||||||||
Sale of subsidiary, net of income tax | (240 | ) | — | 6 | (234 | ) | |||||||||||||
Balance, end of period | $ | 1,761 | $ | 87 | $ | 3 | $ | 1,851 | |||||||||||
Six Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2013 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 2,291 | $ | 158 | $ | (49 | ) | $ | 2,400 | ||||||||||
OCI before reclassifications | (1,487 | ) | (90 | ) | (59 | ) | (1,636 | ) | |||||||||||
Deferred income tax benefit (expense) | 532 | 30 | — | 562 | |||||||||||||||
OCI before reclassifications, net of income tax | 1,336 | 98 | (108 | ) | 1,326 | ||||||||||||||
Amounts reclassified from AOCI | (80 | ) | (5 | ) | — | (85 | ) | ||||||||||||
Deferred income tax benefit (expense) | 29 | 2 | — | 31 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (51 | ) | (3 | ) | — | (54 | ) | ||||||||||||
Balance, end of period | $ | 1,285 | $ | 95 | $ | (108 | ) | $ | 1,272 | ||||||||||
____________ | |||||||||||||||||||
-1 | See Note 5 for information on offsets to investments related to insurance liabilities and DAC and VOBA. | ||||||||||||||||||
-2 | See Note 3. | ||||||||||||||||||
Information regarding amounts reclassified out of each component of AOCI was as follows: | |||||||||||||||||||
AOCI Components | Amounts Reclassified from AOCI | Statement of Operations and | |||||||||||||||||
Comprehensive Income (Loss) Location | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended | Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||
Net unrealized investment gains (losses) | $ | 9 | $ | 9 | $ | 29 | $ | 80 | Net investment gains (losses) | ||||||||||
Net unrealized investment gains (losses) | 10 | 3 | 16 | 6 | Net investment income | ||||||||||||||
Net unrealized investment gains (losses) | 2 | — | 4 | — | Net derivative gains (losses) | ||||||||||||||
OTTI | (1 | ) | 1 | (1 | ) | (6 | ) | Net investment gains (losses) | |||||||||||
Net unrealized investment gains (losses), before income tax | 20 | 13 | 48 | 80 | |||||||||||||||
Income tax (expense) benefit | (6 | ) | (2 | ) | (15 | ) | (29 | ) | |||||||||||
Net unrealized investment gains (losses), net of income tax | 14 | 11 | 33 | 51 | |||||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | |||||||||||||||||||
Interest rate swaps | — | — | — | (1 | ) | Net derivative gains (losses) | |||||||||||||
Interest rate forwards | 1 | 3 | 1 | 6 | Net derivative gains (losses) | ||||||||||||||
Interest rate forwards | 1 | — | 1 | 1 | Net investment income | ||||||||||||||
Foreign currency swaps | — | — | — | (1 | ) | Net derivative gains (losses) | |||||||||||||
Gains (losses) on cash flow hedges, before income tax | 2 | 3 | 2 | 5 | |||||||||||||||
Income tax (expense) benefit | — | (2 | ) | — | (2 | ) | |||||||||||||
Gains (losses) on cash flow hedges, net of income tax | 2 | 1 | 2 | 3 | |||||||||||||||
Total reclassifications, net of income tax | $ | 16 | $ | 12 | $ | 35 | $ | 54 | |||||||||||
Other_Expenses
Other Expenses | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Expenses | ' | |||||||||||||||
10. Other Expenses | ||||||||||||||||
Information on other expenses was as follows: | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Compensation | $ | 79 | $ | 82 | $ | 158 | $ | 171 | ||||||||
Commissions | 131 | 170 | 261 | 363 | ||||||||||||
Volume-related costs | 45 | 22 | 83 | 40 | ||||||||||||
Affiliated interest costs on ceded reinsurance | 81 | 40 | 147 | 98 | ||||||||||||
Capitalization of DAC | (86 | ) | (133 | ) | (160 | ) | (287 | ) | ||||||||
Amortization of DAC and VOBA | 213 | 4 | 529 | 30 | ||||||||||||
Interest expense on debt | 28 | 49 | 63 | 100 | ||||||||||||
Premium taxes, licenses and fees | 16 | 15 | 29 | 28 | ||||||||||||
Professional services | 11 | 5 | 20 | 10 | ||||||||||||
Rent and related expenses | 8 | 7 | 16 | 15 | ||||||||||||
Other | 104 | 107 | 204 | 208 | ||||||||||||
Total other expenses | $ | 630 | $ | 368 | $ | 1,350 | $ | 776 | ||||||||
Affiliated Expenses | ||||||||||||||||
Commissions, capitalization of DAC and amortization of DAC and VOBA include the impact of affiliated reinsurance transactions. See Note 12 for discussion of affiliated expenses included in the table above. |
Contingencies_Commitments_and_
Contingencies, Commitments and Guarantees | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies, Commitments and Guarantees | ' |
11. Contingencies, Commitments and Guarantees | |
Contingencies | |
Litigation | |
The Company is a defendant in a number of litigation matters. In some of the matters, 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 experience of the Company 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 vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be 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. | |
The Company establishes liabilities for litigation and regulatory loss contingencies when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have been established for some of the matters below. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated at June 30, 2014. | |
Matters as to Which an Estimate Can Be Made | |
For some of the matters discussed below, the Company is able to estimate a reasonably possible range of loss. For such matters where a loss is believed to be reasonably possible, but not probable, no accrual has been made. As of June 30, 2014, the aggregate range of reasonably possible losses in excess of amounts accrued for these matters was not material for the Company. | |
Matters as to Which an Estimate Cannot Be Made | |
For other matters disclosed below, the Company is not currently able to estimate the reasonably possible loss or range of loss. The Company is 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, the Company reviews relevant information with respect to litigation contingencies and updates its accruals, disclosures and estimates of reasonably possible losses or ranges of loss based on such reviews. | |
Unclaimed Property Inquiries | |
On December 28, 2012, the West Virginia Treasurer filed an action (West Virginia ex rel. John D. Perdue v. MetLife Insurance Company of Connecticut, Circuit Court of Putnam County), alleging that MetLife Insurance Company of Connecticut violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties. On November 14, 2012, the Treasurer filed a substantially identical suit against MLI‑USA. On December 30, 2013, the court granted defendants’ motions to dismiss all of the West Virginia Treasurer’s actions. The Treasurer has filed a notice to appeal the dismissal order. | |
Sales Practices Claims | |
Over the past several years, the Company has faced claims and regulatory inquiries and investigations, alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to vigorously defend against the claims in these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. | |
Summary | |
Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s consolidated financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations. | |
It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings. In some of the matters referred to previously, large and/or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company’s financial position, based on information currently known by the Company’s management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on the Company’s net income or cash flows in particular quarterly or annual periods. | |
Commitments | |
Mortgage Loan Commitments | |
The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $121 million and $147 million at June 30, 2014 and December 31, 2013, respectively. | |
Commitments to Fund Partnerships Investments, Bank Credit Facilities and Private Corporate Bond Investments | |
The Company commits to fund partnership investments and to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $894 million and $1.0 billion at June 30, 2014 and December 31, 2013, respectively. | |
Other Commitments | |
The Company has entered into collateral arrangements with affiliates, which require the transfer of collateral in connection with secured demand notes. At June 30, 2014 and December 31, 2013, the Company had agreed to fund up to $32 million and $61 million, respectively, of cash upon the request by these affiliates and had transferred collateral consisting of various securities with a fair market value of $51 million and $74 million at June 30, 2014 and December 31, 2013, respectively, to custody accounts to secure the demand notes. Each of these affiliates is permitted by contract to sell or repledge this collateral. | |
See Note 5 “— Related Party Investment Transactions” for additional other commitments. |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||||
Related Party Transactions | ' | |||||||||||||||
12. Related Party Transactions | ||||||||||||||||
Service Agreements | ||||||||||||||||
The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include management, policy administrative functions, personnel, investment advice and distribution services. For certain agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $402 million and $749 million for the three months and six months ended June 30, 2014, respectively, and $372 million and $816 million for the three months and six months ended June 30, 2013, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $58 million and $115 million for the three months and six months ended June 30, 2014, respectively, and $52 million and $102 million for the three months and six months ended June 30, 2013, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $48 million and $95 million for the three months and six months ended June 30, 2014, respectively, and $46 million and $92 million for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||
The Company had net receivables (payables) to affiliates, related to the items discussed above, of $62 million and ($210) million at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||
See Note 5 for additional information on related party transactions. | ||||||||||||||||
Related Party Reinsurance Transactions | ||||||||||||||||
The Company has reinsurance agreements with certain MetLife, Inc. subsidiaries, including MLIC, MetLife Reinsurance Company of South Carolina, Exeter, General American Life Insurance Company, MLIIC, MetLife Reinsurance Company of Vermont and MetLife Reinsurance Company of Delaware (“MRD”), all of which are related parties. | ||||||||||||||||
Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows: | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Premiums | ||||||||||||||||
Reinsurance assumed | $ | 2 | $ | 2 | $ | 8 | $ | 6 | ||||||||
Reinsurance ceded | (184 | ) | (156 | ) | (447 | ) | (303 | ) | ||||||||
Net premiums | $ | (182 | ) | $ | (154 | ) | $ | (439 | ) | $ | (297 | ) | ||||
Universal life and investment-type product policy fees | ||||||||||||||||
Reinsurance assumed | $ | 24 | $ | 11 | $ | 48 | $ | 32 | ||||||||
Reinsurance ceded | (149 | ) | (168 | ) | (306 | ) | (302 | ) | ||||||||
Net universal life and investment-type product policy fees | $ | (125 | ) | $ | (157 | ) | $ | (258 | ) | $ | (270 | ) | ||||
Other revenues | ||||||||||||||||
Reinsurance assumed | $ | — | $ | — | $ | — | $ | — | ||||||||
Reinsurance ceded | 64 | 75 | 121 | 167 | ||||||||||||
Net other revenues | $ | 64 | $ | 75 | $ | 121 | $ | 167 | ||||||||
Policyholder benefits and claims | ||||||||||||||||
Reinsurance assumed | $ | 8 | $ | 2 | $ | 13 | $ | 5 | ||||||||
Reinsurance ceded | (238 | ) | (193 | ) | (588 | ) | (386 | ) | ||||||||
Net policyholder benefits and claims | $ | (230 | ) | $ | (191 | ) | $ | (575 | ) | $ | (381 | ) | ||||
Interest credited to policyholder account balances | ||||||||||||||||
Reinsurance assumed | $ | 18 | $ | 18 | $ | 37 | $ | 36 | ||||||||
Reinsurance ceded | (35 | ) | (32 | ) | (68 | ) | (61 | ) | ||||||||
Net interest credited to policyholder account balances | $ | (17 | ) | $ | (14 | ) | $ | (31 | ) | $ | (25 | ) | ||||
Other expenses | ||||||||||||||||
Reinsurance assumed | $ | 7 | $ | 3 | $ | 19 | $ | 12 | ||||||||
Reinsurance ceded | 50 | 12 | 74 | 33 | ||||||||||||
Net other expenses | $ | 57 | $ | 15 | $ | 93 | $ | 45 | ||||||||
Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Assumed | Ceded | Assumed | Ceded | |||||||||||||
(In millions) | ||||||||||||||||
Assets | ||||||||||||||||
Premiums, reinsurance and other receivables | $ | 27 | $ | 13,925 | $ | 28 | $ | 12,710 | ||||||||
Deferred policy acquisition costs and value of business acquired | 144 | (604 | ) | 122 | (579 | ) | ||||||||||
Total assets | $ | 171 | $ | 13,321 | $ | 150 | $ | 12,131 | ||||||||
Liabilities | ||||||||||||||||
Other policy-related balances | $ | 1,666 | $ | 786 | $ | 1,640 | $ | 811 | ||||||||
Other liabilities | 12 | 5,623 | 9 | 5,260 | ||||||||||||
Total liabilities | $ | 1,678 | $ | 6,409 | $ | 1,649 | $ | 6,071 | ||||||||
In October 2012, MLI-USA entered into a reinsurance agreement to cede two blocks of business to MRD, on a 90% coinsurance with funds withheld basis. This agreement covers certain term and certain universal life policies issued in 2012 by MLI-USA and was amended in 2013 to include certain term and universal life policies issued by MLI-USA through December 31, 2013. This agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $580 million and $917 million at June 30, 2014 and December 31, 2013, respectively. MLI-USA also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $468 million and $798 million at June 30, 2014 and December 31, 2013, respectively. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at fair value on the Company’s consolidated balance sheets. The embedded derivative related to this cession is included within other liabilities and was $30 million and ($14) million at June 30, 2014 and December 31, 2013, respectively. The Company’s consolidated statements of operations and comprehensive income (loss) reflects a loss for this agreement of $39 million and $90 million, for the three months and six months ended June 30, 2014, respectively, and $15 million and $30 million for the three months and six months ended June 30, 2013, respectively. The loss related to this agreement includes net derivative gains (losses) associated with the embedded derivatives of ($19) million and ($44) million for the three months and six months ended June 30, 2014, respectively, and $12 million and $13 million for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||
The Company ceded risks to affiliates related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were assets of $1.4 billion and $912 million at June 30, 2014 and December 31, 2013, respectively. Net derivative gains (losses) associated with the embedded derivatives were $29 million and $277 million for the three months and six months ended June 30, 2014, respectively, and ($667) million and ($1.4) billion for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||
MLI-USA ceded two blocks of business to an affiliate on a 90% coinsurance with funds withheld basis. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at estimated fair value on the Company’s consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and increased the funds withheld balance by $224 million and $48 million at June 30, 2014 and December 31, 2013, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($74) million and ($176) million for the three months and six months ended June 30, 2014, respectively, and $128 million and $416 million for the three months and six months ended June 30, 2013, respectively. | ||||||||||||||||
Effective January 1, 2014, MetLife Insurance Company of Connecticut reinsured with MLIC all existing New York insurance policies and annuity contracts that include a separate account feature. As a result of the reinsurance agreements, MetLife Insurance Company of Connecticut recorded reinsurance receivables, included in premiums, reinsurance and other receivables, of $700 million, a funds withheld liability, included in other liabilities, of $192 million, and other reinsurance payables, included in other liabilities, of $14 million, and transferred cash and investments of $494 million to MLIC. See Note 1. |
Business_Basis_of_Presentation1
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Use of Estimates | ' | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the interim condensed consolidated financial statements. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company’s business and operations. Actual results could differ from estimates. | ||
Consolidation of Subsidiaries | ' | |
Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. | ||
The accompanying interim condensed consolidated financial statements are unaudited and reflect all adjustments (including normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in conformity with GAAP. Interim results are not necessarily indicative of full year performance. The December 31, 2013 consolidated balance sheet data was derived from audited consolidated financial statements included in MetLife Insurance Company of Connecticut’s Annual Report on Form 10‑K for the year ended December 31, 2013 (the “2013 Annual Report”), which include all disclosures required by GAAP. Therefore, these interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2013 Annual Report. | ||
The accompanying interim condensed consolidated financial statements include the accounts of MetLife Insurance Company of Connecticut and its subsidiaries, as well as partnerships and joint ventures in which the Company has control, and variable interest entities (“VIEs”) for which the Company is the primary beneficiary. Intercompany accounts and transactions have been eliminated. | ||
The Company uses the equity method of accounting for investments in equity securities when it has significant influence or at least 20% interest and for investments in real estate joint ventures and other limited partnership interests (“investees”) when it has more than a minor ownership interest or more than a minor influence over the investee’s operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee’s earnings on a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee’s operations. | ||
Investments | ' | |
Maturities of Fixed Maturity Securities | ||
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. | ||
The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans — 60 days and agricultural mortgage loans — 90 days. | ||
Past Due and Interest Accrual Status of Mortgage Loans | ||
Variable Interest Entities | ||
The Company has invested in certain structured transactions (including CSEs), that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. | ||
The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE’s expected losses, receive a majority of a VIE’s expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on a quarterly basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. | ||
Derivatives | ' | |
Accounting for Derivatives | ||
Freestanding Derivatives | ||
Freestanding derivatives are carried on the Company’s balance sheet either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. | ||
Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. | ||
If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the estimated fair value of the derivative are reported in net derivative gains (losses) except as follows: | ||
Statement of Operations Presentation: | Derivative: | |
Policyholder benefits and claims | • Economic hedges of variable annuity guarantees included in future policy benefits | |
Net investment income | • Economic hedges of equity method investments in joint ventures | |
Hedge Accounting | ||
To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: | ||
• | Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. | |
• | Cash flow hedge (a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). | |
The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported on the statement of operations within interest income or interest expense to match the location of the hedged item. | ||
In its hedge documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument’s effectiveness and the method that will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and at least quarterly throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. | ||
The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; or (iv) the derivative is de-designated as a hedging instrument. | ||
When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized in net derivative gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its estimated fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in estimated fair value of derivatives recorded in OCI related to discontinued cash flow hedges are released into the statement of operations when the Company’s earnings are affected by the variability in cash flows of the hedged item. | ||
When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur on the anticipated date or within two months of that date, the derivative continues to be carried on the balance sheet at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in OCI pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). | ||
In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value on the balance sheet, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). | ||
Embedded Derivatives | ||
The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: | ||
• | the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; | |
• | the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and | |
• | a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. | |
Such embedded derivatives are carried on the balance sheet at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. At inception, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent “excess” fees and are reported in universal life and investment-type product policy fees. | ||
Derivative Strategies | ||
Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter (“OTC”) market. Certain of the Company’s OTC derivatives are cleared and settled through central clearing counterparties (“OTC-cleared”), while others are bilateral contracts between two counterparties (“OTC-bilateral”). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. | ||
The Company designates and accounts for the following as fair value hedges when they have met the requirements of fair value hedging: (i) interest rate swaps to convert fixed rate assets and liabilities to floating rate assets and liabilities; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated liabilities. | ||
The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) interest rate swaps to convert floating rate assets and liabilities to fixed rate assets and liabilities; (ii) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated assets and liabilities; (iii) interest rate forwards and credit forwards to lock in the price to be paid for forward purchases of investments; and (iv) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. | ||
The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company’s derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. |
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Reporting Information, by Segment | ' | ||||||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Retail | Corporate | Corporate | Total | Adjustments | Total | |||||||||||||||||||
Benefit | & Other | Consolidated | |||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 267 | $ | 15 | $ | 15 | $ | 297 | $ | 2 | $ | 299 | |||||||||||||
Universal life and investment-type product policy fees | 557 | 9 | — | 566 | 38 | 604 | |||||||||||||||||||
Net investment income | 366 | 210 | 28 | 604 | (7 | ) | 597 | ||||||||||||||||||
Other revenues | 124 | — | — | 124 | 1 | 125 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | (46 | ) | (46 | ) | |||||||||||||||||
Net derivative gains (losses) | — | — | — | — | 186 | 186 | |||||||||||||||||||
Total revenues | 1,314 | 234 | 43 | 1,591 | 174 | 1,765 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 355 | 126 | 12 | 493 | 63 | 556 | |||||||||||||||||||
Interest credited to policyholder account balances | 209 | 26 | — | 235 | 1 | 236 | |||||||||||||||||||
Capitalization of DAC | (76 | ) | — | (10 | ) | (86 | ) | — | (86 | ) | |||||||||||||||
Amortization of DAC and VOBA | 144 | 1 | 2 | 147 | 66 | 213 | |||||||||||||||||||
Interest expense on debt | — | — | 16 | 16 | 12 | 28 | |||||||||||||||||||
Other expenses | 441 | 6 | 23 | 470 | 5 | 475 | |||||||||||||||||||
Total expenses | 1,073 | 159 | 43 | 1,275 | 147 | 1,422 | |||||||||||||||||||
Provision for income tax expense (benefit) | 85 | 26 | (22 | ) | 89 | 10 | 99 | ||||||||||||||||||
Operating earnings | $ | 156 | $ | 49 | $ | 22 | 227 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | 174 | ||||||||||||||||||||||||
Total expenses | (147 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | (10 | ) | |||||||||||||||||||||||
Net income (loss) | $ | 244 | $ | 244 | |||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Three Months Ended June 30, 2013 | Retail | Corporate | Corporate | Total | Adjustments | Total | |||||||||||||||||||
Benefit | & Other | Consolidated | |||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 74 | $ | 29 | $ | 11 | $ | 114 | $ | — | $ | 114 | |||||||||||||
Universal life and investment-type product policy fees | 516 | 8 | — | 524 | 32 | 556 | |||||||||||||||||||
Net investment income | 415 | 252 | 25 | 692 | 32 | 724 | |||||||||||||||||||
Other revenues | 136 | 2 | — | 138 | — | 138 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | 16 | 16 | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | (495 | ) | (495 | ) | |||||||||||||||||
Total revenues | 1,141 | 291 | 36 | 1,468 | (415 | ) | 1,053 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 165 | 134 | 8 | 307 | 52 | 359 | |||||||||||||||||||
Interest credited to policyholder account balances | 227 | 33 | — | 260 | (1 | ) | 259 | ||||||||||||||||||
Capitalization of DAC | (128 | ) | — | (5 | ) | (133 | ) | — | (133 | ) | |||||||||||||||
Amortization of DAC and VOBA | 158 | 1 | — | 159 | (155 | ) | 4 | ||||||||||||||||||
Interest expense on debt | — | — | 17 | 17 | 32 | 49 | |||||||||||||||||||
Other expenses | 432 | 1 | 10 | 443 | 5 | 448 | |||||||||||||||||||
Total expenses | 854 | 169 | 30 | 1,053 | (67 | ) | 986 | ||||||||||||||||||
Provision for income tax expense (benefit) | 100 | 43 | (15 | ) | 128 | (122 | ) | 6 | |||||||||||||||||
Operating earnings | $ | 187 | $ | 79 | $ | 21 | 287 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (415 | ) | |||||||||||||||||||||||
Total expenses | 67 | ||||||||||||||||||||||||
Provision for income tax (expense) benefit | 122 | ||||||||||||||||||||||||
Net income (loss) | $ | 61 | $ | 61 | |||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Six Months Ended June 30, 2014 | Retail | Corporate | Corporate | Total | Total | ||||||||||||||||||||
Benefit | & Other | Adjustments | Consolidated | ||||||||||||||||||||||
Funding (1) | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 483 | $ | (50 | ) | $ | 29 | $ | 462 | $ | 2 | $ | 464 | ||||||||||||
Universal life and investment-type product policy fees | 1,099 | 17 | — | 1,116 | 77 | 1,193 | |||||||||||||||||||
Net investment income | 772 | 445 | 63 | 1,280 | 19 | 1,299 | |||||||||||||||||||
Other revenues | 241 | 2 | — | 243 | 1 | 244 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | (565 | ) | (565 | ) | |||||||||||||||||
Net derivative gains (losses) | — | — | — | — | 366 | 366 | |||||||||||||||||||
Total revenues | 2,595 | 414 | 92 | 3,101 | (100 | ) | 3,001 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 675 | 152 | 11 | 838 | 138 | 976 | |||||||||||||||||||
Interest credited to policyholder account balances | 418 | 56 | — | 474 | 1 | 475 | |||||||||||||||||||
Capitalization of DAC | (134 | ) | — | (26 | ) | (160 | ) | — | (160 | ) | |||||||||||||||
Amortization of DAC and VOBA | 313 | 1 | 10 | 324 | 205 | 529 | |||||||||||||||||||
Interest expense on debt | — | — | 33 | 33 | 30 | 63 | |||||||||||||||||||
Other expenses | 855 | 13 | 41 | 909 | 9 | 918 | |||||||||||||||||||
Total expenses | 2,127 | 222 | 69 | 2,418 | 383 | 2,801 | |||||||||||||||||||
Provision for income tax expense (benefit) | 163 | 67 | (35 | ) | 195 | (145 | ) | 50 | |||||||||||||||||
Operating earnings | $ | 305 | $ | 125 | $ | 58 | 488 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (100 | ) | |||||||||||||||||||||||
Total expenses | (383 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 145 | ||||||||||||||||||||||||
Net income (loss) | $ | 150 | $ | 150 | |||||||||||||||||||||
____________ | |||||||||||||||||||||||||
-1 | Premiums and policyholder benefits and claims both include ($87) million of ceded reinsurance with MLIC, related to the Mergers. See Note 12. | ||||||||||||||||||||||||
Operating Earnings | |||||||||||||||||||||||||
Six Months Ended June 30, 2013 | Retail | Corporate | Corporate | Total | Total | ||||||||||||||||||||
Benefit | & Other | Adjustments | Consolidated | ||||||||||||||||||||||
Funding | |||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||
Premiums | $ | 148 | $ | 49 | $ | 20 | $ | 217 | $ | 48 | $ | 265 | |||||||||||||
Universal life and investment-type product policy fees | 1,037 | 17 | — | 1,054 | 66 | 1,120 | |||||||||||||||||||
Net investment income | 815 | 503 | 57 | 1,375 | 79 | 1,454 | |||||||||||||||||||
Other revenues | 292 | 3 | — | 295 | — | 295 | |||||||||||||||||||
Net investment gains (losses) | — | — | — | — | 82 | 82 | |||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | (382 | ) | (382 | ) | |||||||||||||||||
Total revenues | 2,292 | 572 | 77 | 2,941 | (107 | ) | 2,834 | ||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Policyholder benefits and claims | 311 | 261 | 17 | 589 | 184 | 773 | |||||||||||||||||||
Interest credited to policyholder account balances | 456 | 70 | — | 526 | (3 | ) | 523 | ||||||||||||||||||
Capitalization of DAC | (276 | ) | (2 | ) | (9 | ) | (287 | ) | — | (287 | ) | ||||||||||||||
Amortization of DAC and VOBA | 272 | 3 | — | 275 | (245 | ) | 30 | ||||||||||||||||||
Interest expense on debt | — | — | 34 | 34 | 66 | 100 | |||||||||||||||||||
Other expenses | 898 | 9 | 17 | 924 | 9 | 933 | |||||||||||||||||||
Total expenses | 1,661 | 341 | 59 | 2,061 | 11 | 2,072 | |||||||||||||||||||
Provision for income tax expense (benefit) | 220 | 81 | (26 | ) | 275 | (39 | ) | 236 | |||||||||||||||||
Operating earnings | $ | 411 | $ | 150 | $ | 44 | 605 | ||||||||||||||||||
Adjustments to: | |||||||||||||||||||||||||
Total revenues | (107 | ) | |||||||||||||||||||||||
Total expenses | (11 | ) | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 39 | ||||||||||||||||||||||||
Net income (loss) | $ | 526 | $ | 526 | |||||||||||||||||||||
The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at: | |||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Retail | $ | 150,882 | $ | 146,515 | |||||||||||||||||||||
Corporate Benefit Funding | 24,347 | 30,822 | |||||||||||||||||||||||
Corporate & Other | 11,718 | 10,702 | |||||||||||||||||||||||
Total | $ | 186,947 | $ | 188,039 | |||||||||||||||||||||
Insurance_Tables
Insurance (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Insurance [Abstract] | ' | |||||||||||||||
Guarantees related to Annuity, Universal and Variable Life Contracts | ' | |||||||||||||||
Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
In the | At | In the | At | |||||||||||||
Event of Death | Annuitization | Event of Death | Annuitization | |||||||||||||
(In millions) | ||||||||||||||||
Annuity Contracts (1) | ||||||||||||||||
Variable Annuity Guarantees | ||||||||||||||||
Total contract account value | $ | 102,466 | $ | 58,226 | $ | 100,420 | $ | 57,041 | ||||||||
Separate account value | $ | 97,808 | $ | 57,054 | $ | 95,637 | $ | 55,805 | ||||||||
Net amount at risk | $ | 1,976 | $ | 668 | $ | 2,230 | $ | 562 | ||||||||
Average attained age of contractholders | 64 years | 65 years | 64 years | 64 years | ||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Secondary Guarantees | ||||||||||||||||
(In millions) | ||||||||||||||||
Universal and Variable Life Contracts (1) | ||||||||||||||||
Account value (general and separate account) | $ | 6,550 | $ | 6,360 | ||||||||||||
Net amount at risk | $ | 91,187 | $ | 91,264 | ||||||||||||
Average attained age of policyholders | 59 years | 58 years | ||||||||||||||
____________ | ||||||||||||||||
-1 | The Company’s annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. |
Investments_Tables
Investments (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Fixed Maturity and Equity Securities Available-for-Sale | ' | |||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Cost or | Gross Unrealized | Estimated | Cost or | Gross Unrealized | Estimated | |||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Gains | Temporary | OTTI | Value | Cost | Gains | Temporary | OTTI | Value | |||||||||||||||||||||||||||||||
Losses | Losses | Losses | Losses | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 14,503 | $ | 1,534 | $ | 88 | $ | — | $ | 15,949 | $ | 15,779 | $ | 1,130 | $ | 207 | $ | — | $ | 16,702 | ||||||||||||||||||||
Foreign corporate | 4,776 | 396 | 11 | — | 5,161 | 8,111 | 485 | 79 | — | 8,517 | ||||||||||||||||||||||||||||||
U.S. Treasury and agency | 10,113 | 848 | 34 | — | 10,927 | 8,188 | 334 | 228 | — | 8,294 | ||||||||||||||||||||||||||||||
RMBS | 4,799 | 269 | 39 | 29 | 5,000 | 4,587 | 201 | 59 | 41 | 4,688 | ||||||||||||||||||||||||||||||
State and political subdivision | 2,083 | 288 | 14 | — | 2,357 | 2,147 | 139 | 62 | — | 2,224 | ||||||||||||||||||||||||||||||
ABS | 1,592 | 27 | 8 | — | 1,611 | 2,081 | 32 | 12 | — | 2,101 | ||||||||||||||||||||||||||||||
CMBS | 1,320 | 52 | 1 | — | 1,371 | 1,546 | 62 | 4 | — | 1,604 | ||||||||||||||||||||||||||||||
Foreign government | 580 | 118 | 1 | — | 697 | 1,038 | 103 | 19 | — | 1,122 | ||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,766 | $ | 3,532 | $ | 196 | $ | 29 | $ | 43,073 | $ | 43,477 | $ | 2,486 | $ | 670 | $ | 41 | $ | 45,252 | ||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 224 | $ | 13 | $ | 7 | $ | — | $ | 230 | $ | 236 | $ | 9 | $ | 28 | $ | — | $ | 217 | ||||||||||||||||||||
Common stock | 154 | 64 | — | — | 218 | 161 | 40 | — | — | 201 | ||||||||||||||||||||||||||||||
Total equity securities | $ | 378 | $ | 77 | $ | 7 | $ | — | $ | 448 | $ | 397 | $ | 49 | $ | 28 | $ | — | $ | 418 | ||||||||||||||||||||
Available-for-sale fixed maturity securities by contractual maturity date | ' | |||||||||||||||||||||||||||||||||||||||
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Estimated | Estimated | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 2,091 | $ | 2,118 | $ | 2,934 | $ | 2,966 | ||||||||||||||||||||||||||||||||
Due after one year through five years | 10,084 | 10,495 | 8,895 | 9,301 | ||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 5,727 | 6,280 | 7,433 | 7,970 | ||||||||||||||||||||||||||||||||||||
Due after ten years | 14,153 | 16,198 | 16,001 | 16,622 | ||||||||||||||||||||||||||||||||||||
Subtotal | 32,055 | 35,091 | 35,263 | 36,859 | ||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) | 7,711 | 7,982 | 8,214 | 8,393 | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 39,766 | $ | 43,073 | $ | 43,477 | $ | 45,252 | ||||||||||||||||||||||||||||||||
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | |||||||||||||||||||||||||||||||||||||||
The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Equal to or Greater than 12 Months | Less than 12 Months | Equal to or Greater than 12 Months | |||||||||||||||||||||||||||||||||||||
Estimated | Gross | Estimated | Gross | Estimated | Gross | Estimated | Gross | |||||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||||||||||||||
(In millions, except number of securities) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | ||||||||||||||||||||||||||||||||||||||||
U.S. corporate | $ | 394 | $ | 7 | $ | 1,029 | $ | 81 | $ | 2,526 | $ | 141 | $ | 470 | $ | 66 | ||||||||||||||||||||||||
Foreign corporate | 164 | 6 | 179 | 5 | 1,520 | 70 | 135 | 9 | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency | 1,467 | 2 | 1,321 | 32 | 3,825 | 228 | — | — | ||||||||||||||||||||||||||||||||
RMBS | 410 | 24 | 662 | 44 | 996 | 35 | 457 | 65 | ||||||||||||||||||||||||||||||||
State and political subdivision | 14 | — | 139 | 14 | 630 | 44 | 64 | 18 | ||||||||||||||||||||||||||||||||
ABS | 258 | 2 | 96 | 6 | 680 | 5 | 104 | 7 | ||||||||||||||||||||||||||||||||
CMBS | 35 | — | 39 | 1 | 143 | 4 | 7 | — | ||||||||||||||||||||||||||||||||
Foreign government | 13 | — | 23 | 1 | 264 | 19 | 1 | — | ||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 2,755 | $ | 41 | $ | 3,488 | $ | 184 | $ | 10,584 | $ | 546 | $ | 1,238 | $ | 165 | ||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | $ | 10 | $ | 1 | $ | 83 | $ | 6 | $ | 105 | $ | 21 | $ | 33 | $ | 7 | ||||||||||||||||||||||||
Common stock | 2 | — | — | — | 3 | — | 7 | — | ||||||||||||||||||||||||||||||||
Total equity securities | $ | 12 | $ | 1 | $ | 83 | $ | 6 | $ | 108 | $ | 21 | $ | 40 | $ | 7 | ||||||||||||||||||||||||
Total number of securities in an unrealized loss position | 296 | 402 | 1,081 | 297 | ||||||||||||||||||||||||||||||||||||
Disclosure of Mortgage Loans Net of Valuation Allowance | ' | |||||||||||||||||||||||||||||||||||||||
Mortgage loans are summarized as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Carrying | % of | Carrying | % of | |||||||||||||||||||||||||||||||||||||
Value | Total | Value | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 4,536 | 70.9 | % | $ | 4,869 | 63.1 | % | ||||||||||||||||||||||||||||||||
Agricultural | 1,253 | 19.6 | 1,285 | 16.6 | ||||||||||||||||||||||||||||||||||||
Subtotal (1) | 5,789 | 90.5 | 6,154 | 79.7 | ||||||||||||||||||||||||||||||||||||
Valuation allowances | (33 | ) | (0.5 | ) | (34 | ) | (0.4 | ) | ||||||||||||||||||||||||||||||||
Subtotal mortgage loans, net | 5,756 | 90 | 6,120 | 79.3 | ||||||||||||||||||||||||||||||||||||
Commercial mortgage loans held by CSEs — fair value option (“FVO”) | 638 | 10 | 1,598 | 20.7 | ||||||||||||||||||||||||||||||||||||
Total mortgage loans, net | $ | 6,394 | 100 | % | $ | 7,718 | 100 | % | ||||||||||||||||||||||||||||||||
-1 | There were no mortgage loans purchased for both the three months and six months ended June 30, 2014. Purchases of mortgage loans were $5 million for both the three months and six months ended June 30, 2013. | |||||||||||||||||||||||||||||||||||||||
Disclosure of mortgage loans held-for-investment and valuation allowances by method of evaluation for credit loss | ' | |||||||||||||||||||||||||||||||||||||||
The carrying value prior to valuation allowance (“recorded investment”) in mortgage loans, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||||||||||||||||||
Evaluated individually for credit losses | $ | 69 | $ | 3 | $ | 72 | $ | 72 | $ | 4 | $ | 76 | ||||||||||||||||||||||||||||
Evaluated collectively for credit losses | 4,467 | 1,250 | 5,717 | 4,797 | 1,281 | 6,078 | ||||||||||||||||||||||||||||||||||
Total mortgage loans | 4,536 | 1,253 | 5,789 | 4,869 | 1,285 | 6,154 | ||||||||||||||||||||||||||||||||||
Valuation allowances: | ||||||||||||||||||||||||||||||||||||||||
Specific credit losses | 8 | — | 8 | 7 | — | 7 | ||||||||||||||||||||||||||||||||||
Non-specifically identified credit losses | 21 | 4 | 25 | 23 | 4 | 27 | ||||||||||||||||||||||||||||||||||
Total valuation allowances | 29 | 4 | 33 | 30 | 4 | 34 | ||||||||||||||||||||||||||||||||||
Mortgage loans, net of valuation allowance | $ | 4,507 | $ | 1,249 | $ | 5,756 | $ | 4,839 | $ | 1,281 | $ | 6,120 | ||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables | ' | |||||||||||||||||||||||||||||||||||||||
The changes in the valuation allowance, by portfolio segment, were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 29 | $ | 4 | $ | 33 | $ | 32 | $ | 3 | $ | 35 | ||||||||||||||||||||||||||||
Provision (release) | — | — | — | (2 | ) | 1 | (1 | ) | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 29 | $ | 4 | $ | 33 | $ | 30 | $ | 4 | $ | 34 | ||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||||||
Commercial | Agricultural | Total | Commercial | Agricultural | Total | |||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 30 | $ | 4 | $ | 34 | $ | 32 | $ | 3 | $ | 35 | ||||||||||||||||||||||||||||
Provision (release) | (1 | ) | — | (1 | ) | (2 | ) | 1 | (1 | ) | ||||||||||||||||||||||||||||||
Balance, end of period | $ | 29 | $ | 4 | $ | 33 | $ | 30 | $ | 4 | $ | 34 | ||||||||||||||||||||||||||||
Impaired mortgage loans held-for-investment | ' | |||||||||||||||||||||||||||||||||||||||
Impaired mortgage loans including those modified in a troubled debt restructuring, by portfolio segment, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Loans with a Valuation Allowance | Loans without | All Impaired Loans | ||||||||||||||||||||||||||||||||||||||
a Valuation Allowance | ||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded | Valuation | Carrying | Unpaid | Recorded | Unpaid | Carrying | |||||||||||||||||||||||||||||||||
Principal | Investment | Allowances | Value | Principal | Investment | Principal | Value | |||||||||||||||||||||||||||||||||
Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 22 | $ | 22 | $ | 8 | $ | 14 | $ | 47 | $ | 47 | $ | 69 | $ | 61 | ||||||||||||||||||||||||
Agricultural (1) | 4 | 3 | — | 3 | — | — | 4 | 3 | ||||||||||||||||||||||||||||||||
Total | $ | 26 | $ | 25 | $ | 8 | $ | 17 | $ | 47 | $ | 47 | $ | 73 | $ | 64 | ||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 22 | $ | 22 | $ | 7 | $ | 15 | $ | 52 | $ | 50 | $ | 74 | $ | 65 | ||||||||||||||||||||||||
Agricultural (1) | 4 | 4 | — | 4 | — | — | 4 | 4 | ||||||||||||||||||||||||||||||||
Total | $ | 26 | $ | 26 | $ | 7 | $ | 19 | $ | 52 | $ | 50 | $ | 78 | $ | 69 | ||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Valuation allowance on agricultural mortgage loans was less than $1 million at both June 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
The average recorded investment in impaired mortgage loans, including those modified in a troubled debt restructuring, and the related interest income, which is primarily recognized on a cash basis, by portfolio segment, was: | ||||||||||||||||||||||||||||||||||||||||
Impaired Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||||||||
Investment | Investment | Investment | Investment | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 71 | $ | 1 | $ | 72 | $ | 1 | $ | 71 | $ | 1 | $ | 73 | $ | 2 | ||||||||||||||||||||||||
Agricultural | 3 | — | 2 | — | 3 | — | 1 | — | ||||||||||||||||||||||||||||||||
Total | $ | 74 | $ | 1 | $ | 74 | $ | 1 | $ | 74 | $ | 1 | $ | 74 | $ | 2 | ||||||||||||||||||||||||
Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss) | ' | |||||||||||||||||||||||||||||||||||||||
The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss) (“AOCI”), were as follows: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 3,338 | $ | 1,819 | ||||||||||||||||||||||||||||||||||||
Fixed maturity securities with noncredit OTTI losses in AOCI | (29 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | 3,309 | 1,778 | ||||||||||||||||||||||||||||||||||||||
Equity securities | 73 | 15 | ||||||||||||||||||||||||||||||||||||||
Derivatives | 133 | 39 | ||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 1 | ||||||||||||||||||||||||||||||||||||||
Other | (29 | ) | (71 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | 3,486 | 1,762 | ||||||||||||||||||||||||||||||||||||||
Amounts allocated from: | ||||||||||||||||||||||||||||||||||||||||
Insurance liability loss recognition | (192 | ) | — | |||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||
DAC and VOBA | (442 | ) | (274 | ) | ||||||||||||||||||||||||||||||||||||
Subtotal | (635 | ) | (275 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | 11 | 16 | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (1,014 | ) | (591 | ) | ||||||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) | $ | 1,848 | $ | 912 | ||||||||||||||||||||||||||||||||||||
The changes in net unrealized investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 912 | ||||||||||||||||||||||||||||||||||||||
Fixed maturity securities on which noncredit OTTI losses have been recognized | 12 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) during the period | 1,712 | |||||||||||||||||||||||||||||||||||||||
Unrealized investment gains (losses) relating to: | ||||||||||||||||||||||||||||||||||||||||
Insurance liability gain (loss) recognition | (192 | ) | ||||||||||||||||||||||||||||||||||||||
DAC and VOBA related to noncredit OTTI losses recognized in AOCI | — | |||||||||||||||||||||||||||||||||||||||
DAC and VOBA | (168 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI | (5 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (423 | ) | ||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | 1,848 | ||||||||||||||||||||||||||||||||||||||
Change in net unrealized investment gains (losses) | $ | 936 | ||||||||||||||||||||||||||||||||||||||
Other than temporary impairment losses recognized in earnings | ' | |||||||||||||||||||||||||||||||||||||||
The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: | ||||||||||||||||||||||||||||||||||||||||
Six Months | Year | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (41 | ) | $ | (64 | ) | ||||||||||||||||||||||||||||||||||
Noncredit OTTI losses and subsequent changes recognized (1) | 2 | 11 | ||||||||||||||||||||||||||||||||||||||
Securities sold with previous noncredit OTTI loss | 4 | 21 | ||||||||||||||||||||||||||||||||||||||
Subsequent changes in estimated fair value | 6 | (9 | ) | |||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (29 | ) | $ | (41 | ) | ||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Noncredit OTTI losses and subsequent changes recognized, net of DAC, were ($2) million and $7 million for the six months ended June 30, 2014 and the year ended December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Securities Lending | ' | |||||||||||||||||||||||||||||||||||||||
Elements of the securities lending program are presented below at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Securities on loan: (1) | ||||||||||||||||||||||||||||||||||||||||
Amortized cost | $ | 5,749 | $ | 5,931 | ||||||||||||||||||||||||||||||||||||
Estimated fair value | $ | 6,262 | $ | 5,984 | ||||||||||||||||||||||||||||||||||||
Cash collateral on deposit from counterparties (2) | $ | 6,348 | $ | 6,140 | ||||||||||||||||||||||||||||||||||||
Security collateral on deposit from counterparties (3) | $ | 41 | $ | — | ||||||||||||||||||||||||||||||||||||
Reinvestment portfolio — estimated fair value | $ | 6,405 | $ | 6,145 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Included within fixed maturity securities, short-term investments, cash and cash equivalents and equity securities. | |||||||||||||||||||||||||||||||||||||||
-2 | Included within payables for collateral under securities loaned and other transactions. | |||||||||||||||||||||||||||||||||||||||
-3 | Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||
Invested Assets on Deposit, Held in Trust and Pledged as Collateral | ' | |||||||||||||||||||||||||||||||||||||||
Invested assets on deposit and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments and fixed maturity securities and at carrying value for mortgage loans at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Invested assets on deposit (regulatory deposits) (1) | $ | 6,892 | $ | 56 | ||||||||||||||||||||||||||||||||||||
Invested assets pledged as collateral (2) | 2,000 | 1,901 | ||||||||||||||||||||||||||||||||||||||
Total invested assets on deposit and pledged as collateral | $ | 8,892 | $ | 1,957 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | See Note 1 for information about invested assets that became restricted when MetLife Insurance Company of Connecticut withdrew its New York license on January 1, 2014. | |||||||||||||||||||||||||||||||||||||||
-2 | The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2013 Annual Report) and derivative transactions (see Note 6). | |||||||||||||||||||||||||||||||||||||||
The Components of Net Investment Income | ' | |||||||||||||||||||||||||||||||||||||||
The components of net investment income were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Investment income: | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 468 | $ | 524 | $ | 960 | $ | 1,066 | ||||||||||||||||||||||||||||||||
Equity securities | 5 | 3 | 9 | 5 | ||||||||||||||||||||||||||||||||||||
Mortgage loans | 75 | 83 | 152 | 165 | ||||||||||||||||||||||||||||||||||||
Policy loans | 15 | 14 | 29 | 28 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 16 | 18 | 39 | 26 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 31 | 75 | 128 | 154 | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents and short-term investments | — | 1 | 1 | 3 | ||||||||||||||||||||||||||||||||||||
International joint ventures | (1 | ) | — | (1 | ) | (10 | ) | |||||||||||||||||||||||||||||||||
Other | — | — | (4 | ) | 2 | |||||||||||||||||||||||||||||||||||
Subtotal | 609 | 718 | 1,313 | 1,439 | ||||||||||||||||||||||||||||||||||||
Less: Investment expenses | 24 | 28 | 48 | 56 | ||||||||||||||||||||||||||||||||||||
Subtotal, net | 585 | 690 | 1,265 | 1,383 | ||||||||||||||||||||||||||||||||||||
FVO CSEs — interest income: Commercial mortgage loans | 12 | 34 | 34 | 71 | ||||||||||||||||||||||||||||||||||||
Net investment income | $ | 597 | $ | 724 | $ | 1,299 | $ | 1,454 | ||||||||||||||||||||||||||||||||
The components of net investment gains (losses) | ' | |||||||||||||||||||||||||||||||||||||||
The components of net investment gains (losses) were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector and industry: | ||||||||||||||||||||||||||||||||||||||||
U.S. and foreign corporate securities — by industry: | ||||||||||||||||||||||||||||||||||||||||
Transportation | $ | (2 | ) | $ | — | $ | (2 | ) | $ | — | ||||||||||||||||||||||||||||||
Finance | — | — | — | (3 | ) | |||||||||||||||||||||||||||||||||||
Consumer | — | — | (1 | ) | — | |||||||||||||||||||||||||||||||||||
Total U.S. and foreign corporate securities | (2 | ) | — | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
RMBS | (2 | ) | (2 | ) | (2 | ) | (8 | ) | ||||||||||||||||||||||||||||||||
OTTI losses on fixed maturity securities recognized in earnings | (4 | ) | (2 | ) | (5 | ) | (11 | ) | ||||||||||||||||||||||||||||||||
Fixed maturity securities — net gains (losses) on sales and disposals | 20 | 10 | 37 | 83 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on fixed maturity securities | 16 | 8 | 32 | 72 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities: | ||||||||||||||||||||||||||||||||||||||||
Total OTTI losses recognized — by sector: | ||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | (8 | ) | — | (8 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
Common stock | (7 | ) | — | (7 | ) | — | ||||||||||||||||||||||||||||||||||
OTTI losses on equity securities recognized in earnings | (15 | ) | — | (15 | ) | (3 | ) | |||||||||||||||||||||||||||||||||
Equity securities — net gains (losses) on sales and disposals | 5 | 3 | 9 | 6 | ||||||||||||||||||||||||||||||||||||
Total gains (losses) on equity securities | (10 | ) | 3 | (6 | ) | 3 | ||||||||||||||||||||||||||||||||||
Mortgage loans | — | 2 | 8 | 1 | ||||||||||||||||||||||||||||||||||||
Real estate and real estate joint ventures | 2 | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | (2 | ) | 1 | (4 | ) | 1 | ||||||||||||||||||||||||||||||||||
Other investment portfolio gains (losses) | 2 | (1 | ) | 3 | 1 | |||||||||||||||||||||||||||||||||||
Subtotal — investment portfolio gains (losses) | 8 | 14 | 33 | 78 | ||||||||||||||||||||||||||||||||||||
FVO CSEs — changes in estimated fair value subsequent to consolidation: | ||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | (16 | ) | (23 | ) | (15 | ) | (36 | ) | ||||||||||||||||||||||||||||||||
Long-term debt — related to commercial mortgage loans | 17 | 28 | 18 | 50 | ||||||||||||||||||||||||||||||||||||
Non-investment portfolio gains (losses) (1) | (55 | ) | (3 | ) | (601 | ) | (10 | ) | ||||||||||||||||||||||||||||||||
Subtotal FVO CSEs and non-investment portfolio gains (losses) | (54 | ) | 2 | (598 | ) | 4 | ||||||||||||||||||||||||||||||||||
Total net investment gains (losses) | $ | (46 | ) | $ | 16 | $ | (565 | ) | $ | 82 | ||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Non-investment portfolio gain (losses) for the three months and six months ended June 30, 2014 includes a loss of ($61) million and ($608) million, respectively, related to the disposition of MAL. See Note 3. | |||||||||||||||||||||||||||||||||||||||
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses | ' | |||||||||||||||||||||||||||||||||||||||
Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the tables below. Investment gains and losses on sales of securities are determined on a specific identification basis. | ||||||||||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 3,681 | $ | 2,775 | $ | 7 | $ | 17 | $ | 3,688 | $ | 2,792 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 27 | $ | 26 | $ | 5 | $ | 6 | $ | 32 | $ | 32 | ||||||||||||||||||||||||||||
Gross investment losses | (7 | ) | (16 | ) | — | (3 | ) | (7 | ) | (19 | ) | |||||||||||||||||||||||||||||
Total OTTI losses: | ||||||||||||||||||||||||||||||||||||||||
Credit-related | (4 | ) | (2 | ) | — | — | (4 | ) | (2 | ) | ||||||||||||||||||||||||||||||
Other (1) | — | — | (15 | ) | — | (15 | ) | — | ||||||||||||||||||||||||||||||||
Total OTTI losses | (4 | ) | (2 | ) | (15 | ) | — | (19 | ) | (2 | ) | |||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 16 | $ | 8 | $ | (10 | ) | $ | 3 | $ | 6 | $ | 11 | |||||||||||||||||||||||||||
Six Months | ||||||||||||||||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||||||||||||||||
June 30, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Fixed Maturity Securities | Equity Securities | Total | ||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Proceeds | $ | 7,188 | $ | 5,355 | $ | 18 | $ | 42 | $ | 7,206 | $ | 5,397 | ||||||||||||||||||||||||||||
Gross investment gains | $ | 65 | $ | 115 | $ | 9 | $ | 10 | $ | 74 | $ | 125 | ||||||||||||||||||||||||||||
Gross investment losses | (28 | ) | (32 | ) | — | (4 | ) | (28 | ) | (36 | ) | |||||||||||||||||||||||||||||
Total OTTI losses: | ||||||||||||||||||||||||||||||||||||||||
Credit-related | (5 | ) | (8 | ) | — | — | (5 | ) | (8 | ) | ||||||||||||||||||||||||||||||
Other (1) | — | (3 | ) | (15 | ) | (3 | ) | (15 | ) | (6 | ) | |||||||||||||||||||||||||||||
Total OTTI losses | (5 | ) | (11 | ) | (15 | ) | (3 | ) | (20 | ) | (14 | ) | ||||||||||||||||||||||||||||
Net investment gains (losses) | $ | 32 | $ | 72 | $ | (6 | ) | $ | 3 | $ | 26 | $ | 75 | |||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and (iii) fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. | |||||||||||||||||||||||||||||||||||||||
Rollforward of the Cumulative Credit Loss Component of OTTI income (loss) | ' | |||||||||||||||||||||||||||||||||||||||
The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 55 | $ | 60 | $ | 57 | $ | 59 | ||||||||||||||||||||||||||||||||
Additions: | ||||||||||||||||||||||||||||||||||||||||
Initial impairments — credit loss OTTI recognized on securities not previously impaired | — | 1 | — | 1 | ||||||||||||||||||||||||||||||||||||
Additional impairments — credit loss OTTI recognized on securities previously impaired | 1 | — | 1 | 7 | ||||||||||||||||||||||||||||||||||||
Reductions: | ||||||||||||||||||||||||||||||||||||||||
Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI | (2 | ) | (3 | ) | (4 | ) | (9 | ) | ||||||||||||||||||||||||||||||||
Balance, end of period | $ | 54 | $ | 58 | $ | 54 | $ | 58 | ||||||||||||||||||||||||||||||||
Schedule of Invested Assets Transferred To and From Affiliates | ' | |||||||||||||||||||||||||||||||||||||||
The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows: | ||||||||||||||||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred to affiliates | $ | 91 | $ | — | $ | 445 | $ | 13 | ||||||||||||||||||||||||||||||||
Amortized cost of invested assets transferred to affiliates | $ | 83 | $ | — | $ | 416 | $ | 12 | ||||||||||||||||||||||||||||||||
Net investment gains (losses) recognized on transfers | $ | 8 | $ | — | $ | 29 | $ | 1 | ||||||||||||||||||||||||||||||||
Estimated fair value of invested assets transferred from affiliates | $ | — | $ | 77 | $ | 35 | $ | 83 | ||||||||||||||||||||||||||||||||
Variable Interest Entity, Primary Beneficiary [Member] | ' | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||||||||||||||||||||||||
The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at June 30, 2014 and December 31, 2013. Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
CSEs (1) | ||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||
Mortgage loans (commercial mortgage loans) | $ | 638 | $ | 1,598 | ||||||||||||||||||||||||||||||||||||
Accrued investment income | 4 | 9 | ||||||||||||||||||||||||||||||||||||||
Total assets | $ | 642 | $ | 1,607 | ||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||
Long-term debt | $ | 499 | $ | 1,461 | ||||||||||||||||||||||||||||||||||||
Other liabilities | 4 | 7 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | $ | 503 | $ | 1,468 | ||||||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $120 million at estimated fair value at both June 30, 2014 and December 31, 2013. The long-term debt bears interest primarily at fixed rates ranging from 2.25% to 5.57%, payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was $12 million and $30 million for the three months and six months ended June 30, 2014, respectively, and $32 million and $66 million for the three months and six months ended June 30, 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entity, Not Primary Beneficiary [Member] | ' | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entity [Line Items] | ' | |||||||||||||||||||||||||||||||||||||||
Variable Interest Entities | ' | |||||||||||||||||||||||||||||||||||||||
The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Carrying | Maximum | Carrying | Maximum | |||||||||||||||||||||||||||||||||||||
Amount | Exposure | Amount | Exposure | |||||||||||||||||||||||||||||||||||||
to Loss (1) | to Loss (1) | |||||||||||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities AFS: | ||||||||||||||||||||||||||||||||||||||||
Structured securities (RMBS, ABS and CMBS) (2) | $ | 7,982 | $ | 7,982 | $ | 8,393 | $ | 8,393 | ||||||||||||||||||||||||||||||||
U.S. and foreign corporate | 496 | 496 | 468 | 468 | ||||||||||||||||||||||||||||||||||||
Other limited partnership interests | 1,699 | 2,108 | 1,651 | 2,077 | ||||||||||||||||||||||||||||||||||||
Real estate joint ventures | 40 | 44 | 41 | 45 | ||||||||||||||||||||||||||||||||||||
Other invested assets | 23 | 44 | 9 | 44 | ||||||||||||||||||||||||||||||||||||
Total | $ | 10,240 | $ | 10,674 | $ | 10,562 | $ | 11,027 | ||||||||||||||||||||||||||||||||
____________ | ||||||||||||||||||||||||||||||||||||||||
-1 | The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, real estate joint ventures and other invested assets is equal to the carrying amounts plus any unfunded commitments of the Company. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. | |||||||||||||||||||||||||||||||||||||||
-2 | For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. | |||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans portfolio segment [Member] | ' | |||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ' | |||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | ' | |||||||||||||||||||||||||||||||||||||||
The credit quality of commercial mortgage loans, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
Recorded Investment | ||||||||||||||||||||||||||||||||||||||||
Debt Service Coverage Ratios | % of | Estimated | % of | |||||||||||||||||||||||||||||||||||||
> 1.20x | 1.00x - 1.20x | < 1.00x | Total | Total | Fair Value | Total | ||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 3,724 | $ | 149 | $ | 135 | $ | 4,008 | 88.4 | % | $ | 4,368 | 89.2 | % | ||||||||||||||||||||||||||
65% to 75% | 341 | 33 | — | 374 | 8.2 | 382 | 7.8 | |||||||||||||||||||||||||||||||||
76% to 80% | 80 | 12 | — | 92 | 2 | 92 | 1.9 | |||||||||||||||||||||||||||||||||
Greater than 80% | 22 | 26 | 14 | 62 | 1.4 | 52 | 1.1 | |||||||||||||||||||||||||||||||||
Total | $ | 4,167 | $ | 220 | $ | 149 | $ | 4,536 | 100 | % | $ | 4,894 | 100 | % | ||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 3,754 | $ | 125 | $ | 107 | $ | 3,986 | 81.9 | % | $ | 4,224 | 82.8 | % | ||||||||||||||||||||||||||
65% to 75% | 700 | — | 27 | 727 | 14.9 | 736 | 14.4 | |||||||||||||||||||||||||||||||||
76% to 80% | 80 | 13 | — | 93 | 1.9 | 93 | 1.8 | |||||||||||||||||||||||||||||||||
Greater than 80% | 37 | 26 | — | 63 | 1.3 | 53 | 1 | |||||||||||||||||||||||||||||||||
Total | $ | 4,571 | $ | 164 | $ | 134 | $ | 4,869 | 100 | % | $ | 5,106 | 100 | % | ||||||||||||||||||||||||||
Agricultural [Member] | ' | |||||||||||||||||||||||||||||||||||||||
Mortgage Loans on Real Estate [Line Items] | ' | |||||||||||||||||||||||||||||||||||||||
Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories | ' | |||||||||||||||||||||||||||||||||||||||
The credit quality of agricultural mortgage loans, were as follows at: | ||||||||||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Recorded | % of | Recorded | % of | |||||||||||||||||||||||||||||||||||||
Investment | Total | Investment | Total | |||||||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||
Loan-to-value ratios: | ||||||||||||||||||||||||||||||||||||||||
Less than 65% | $ | 1,184 | 94.5 | % | $ | 1,215 | 94.6 | % | ||||||||||||||||||||||||||||||||
65% to 75% | 69 | 5.5 | 70 | 5.4 | ||||||||||||||||||||||||||||||||||||
Total | $ | 1,253 | 100 | % | $ | 1,285 | 100 | % | ||||||||||||||||||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | ' | |||||||||||||||||||||||||
The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company’s derivatives, excluding embedded derivatives, held at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Primary Underlying Risk Exposure | Notional | Estimated Fair Value | Notional | Estimated Fair Value | ||||||||||||||||||||||
Amount | Assets | Liabilities | Amount | Assets | Liabilities | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | 384 | $ | 14 | $ | 3 | $ | 436 | $ | 5 | $ | 10 | |||||||||||||
Foreign currency swaps | Foreign currency exchange rate | — | — | — | 122 | — | 13 | |||||||||||||||||||
Subtotal | 384 | 14 | 3 | 558 | 5 | 23 | ||||||||||||||||||||
Cash flow hedges: | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 497 | 38 | 2 | 537 | 6 | 32 | |||||||||||||||||||
Interest rate forwards | Interest rate | 175 | 23 | — | 245 | 3 | 4 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 567 | 21 | 34 | 544 | 25 | 35 | |||||||||||||||||||
Subtotal | 1,239 | 82 | 36 | 1,326 | 34 | 71 | ||||||||||||||||||||
Total qualifying hedges | 1,623 | 96 | 39 | 1,884 | 39 | 94 | ||||||||||||||||||||
Derivatives Not Designated or Not Qualifying as Hedging Instruments | ||||||||||||||||||||||||||
Interest rate swaps | Interest rate | 14,786 | 584 | 175 | 22,262 | 881 | 441 | |||||||||||||||||||
Interest rate floors | Interest rate | 17,604 | 100 | 92 | 17,604 | 103 | 99 | |||||||||||||||||||
Interest rate caps | Interest rate | 7,901 | 14 | — | 9,651 | 36 | — | |||||||||||||||||||
Interest rate futures | Interest rate | 2,338 | 2 | — | 1,443 | — | 3 | |||||||||||||||||||
Foreign currency swaps | Foreign currency exchange rate | 743 | 48 | 36 | 882 | 52 | 41 | |||||||||||||||||||
Foreign currency forwards | Foreign currency exchange rate | 56 | — | — | 56 | — | 1 | |||||||||||||||||||
Credit default swaps — purchased | Credit | 173 | — | 1 | 157 | — | 1 | |||||||||||||||||||
Credit default swaps — written | Credit | 2,227 | 37 | — | 2,243 | 38 | — | |||||||||||||||||||
Equity futures | Equity market | 908 | — | 1 | 778 | — | 3 | |||||||||||||||||||
Equity options | Equity market | 3,465 | 266 | 60 | 3,597 | 305 | 42 | |||||||||||||||||||
Variance swaps | Equity market | 2,510 | 10 | 109 | 2,270 | 6 | 94 | |||||||||||||||||||
TRRs | Equity market | 447 | — | 16 | 462 | — | 22 | |||||||||||||||||||
Total non-designated or non-qualifying derivatives | 53,158 | 1,061 | 490 | 61,405 | 1,421 | 747 | ||||||||||||||||||||
Total | $ | 54,781 | $ | 1,157 | $ | 529 | $ | 63,289 | $ | 1,460 | $ | 841 | ||||||||||||||
Earned Income On Derivatives And Income Statement Location | ' | |||||||||||||||||||||||||
The following table presents earned income on derivatives: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Qualifying hedges: | ||||||||||||||||||||||||||
Net investment income | $ | 1 | $ | — | $ | 1 | $ | 1 | ||||||||||||||||||
Interest credited to policyholder account balances | (1 | ) | 1 | (1 | ) | 2 | ||||||||||||||||||||
Non-qualifying hedges: | ||||||||||||||||||||||||||
Net derivative gains (losses) | 30 | 45 | 63 | 61 | ||||||||||||||||||||||
Policyholder benefits and claims | (2 | ) | — | (1 | ) | (7 | ) | |||||||||||||||||||
Total | $ | 28 | $ | 46 | $ | 62 | $ | 57 | ||||||||||||||||||
Amount and location of gains (losses) recognized in income for derivatives that are not designated or qualifying as hedging instruments | ' | |||||||||||||||||||||||||
The following table presents the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments: | ||||||||||||||||||||||||||
Net | Net | Policyholder | ||||||||||||||||||||||||
Derivative | Investment | Benefits and | ||||||||||||||||||||||||
Gains (Losses) | Income (1) | Claims (2) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 108 | $ | — | $ | 10 | ||||||||||||||||||||
Foreign currency exchange rate derivatives | (6 | ) | — | — | ||||||||||||||||||||||
Credit derivatives — written | 3 | — | — | |||||||||||||||||||||||
Equity derivatives | (61 | ) | (4 | ) | (16 | ) | ||||||||||||||||||||
Total | $ | 44 | $ | (4 | ) | $ | (6 | ) | ||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (425 | ) | $ | — | $ | (15 | ) | ||||||||||||||||||
Foreign currency exchange rate derivatives | 1 | — | — | |||||||||||||||||||||||
Credit derivatives — written | — | — | — | |||||||||||||||||||||||
Equity derivatives | (42 | ) | (1 | ) | (11 | ) | ||||||||||||||||||||
Total | $ | (466 | ) | $ | (1 | ) | $ | (26 | ) | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | 189 | $ | — | $ | 22 | ||||||||||||||||||||
Foreign currency exchange rate derivatives | — | — | — | |||||||||||||||||||||||
Credit derivatives — written | 1 | — | — | |||||||||||||||||||||||
Equity derivatives | (118 | ) | (7 | ) | (21 | ) | ||||||||||||||||||||
Total | $ | 72 | $ | (7 | ) | $ | 1 | |||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate derivatives | $ | (403 | ) | $ | — | $ | (13 | ) | ||||||||||||||||||
Foreign currency exchange rate derivatives | 16 | — | — | |||||||||||||||||||||||
Credit derivatives — written | 7 | — | — | |||||||||||||||||||||||
Equity derivatives | (243 | ) | (3 | ) | (45 | ) | ||||||||||||||||||||
Total | $ | (623 | ) | $ | (3 | ) | $ | (58 | ) | |||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. | |||||||||||||||||||||||||
-2 | Changes in estimated fair value related to economic hedges of variable annuity guarantees included in future policy benefits. | |||||||||||||||||||||||||
Net derivatives gains (losses) recognized on fair value derivatives and the related hedged items | ' | |||||||||||||||||||||||||
The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges within net derivative gains (losses). The following table presents the amount of such net derivative gains (losses): | ||||||||||||||||||||||||||
Net Derivative | Net Derivative | Ineffectiveness | ||||||||||||||||||||||||
Gains (Losses) | Gains (Losses) | Recognized in | ||||||||||||||||||||||||
Derivatives in Fair Value | Hedged Items in Fair Value | Recognized | Recognized for | Net Derivative | ||||||||||||||||||||||
Hedging Relationships | Hedging Relationships | for Derivatives | Hedged Items | Gains (Losses) | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | — | $ | — | $ | — | |||||||||||||||||||
Policyholder liabilities (1) | 5 | (5 | ) | — | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | (1 | ) | 1 | — | |||||||||||||||||||||
Total | $ | 4 | $ | (4 | ) | $ | — | |||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 6 | $ | (7 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (11 | ) | 10 | (1 | ) | |||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | — | — | — | ||||||||||||||||||||||
Total | $ | (5 | ) | $ | 3 | $ | (2 | ) | ||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | — | $ | — | $ | — | |||||||||||||||||||
Policyholder liabilities (1) | 14 | (14 | ) | — | ||||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | — | — | — | ||||||||||||||||||||||
Total | $ | 14 | $ | (14 | ) | $ | — | |||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps: | Fixed maturity securities | $ | 7 | $ | (8 | ) | $ | (1 | ) | |||||||||||||||||
Policyholder liabilities (1) | (18 | ) | 16 | (2 | ) | |||||||||||||||||||||
Foreign currency swaps: | Foreign-denominated PABs (2) | (7 | ) | 7 | — | |||||||||||||||||||||
Total | $ | (18 | ) | $ | 15 | $ | (3 | ) | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Fixed rate liabilities reported in PABs or future policy benefits. | |||||||||||||||||||||||||
-2 | Fixed rate or floating rate liabilities. | |||||||||||||||||||||||||
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | ' | |||||||||||||||||||||||||
The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and comprehensive income (loss) and the consolidated statements of stockholders’ equity: | ||||||||||||||||||||||||||
Derivatives in Cash Flow | Amount of Gains | Amount and Location | Amount and Location | |||||||||||||||||||||||
Hedging Relationships | (Losses) Deferred in | of Gains (Losses) | of Gains (Losses) | |||||||||||||||||||||||
AOCI on Derivatives | Reclassified from | Recognized in Income (Loss) | ||||||||||||||||||||||||
AOCI into Income (Loss) | on Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective Portion) | ||||||||||||||||||||||||
Net Derivative | Net Investment | Net Derivative | ||||||||||||||||||||||||
Gains (Losses) | Income | Gains (Losses) | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 26 | $ | — | $ | — | $ | (1 | ) | |||||||||||||||||
Interest rate forwards | 11 | 1 | 1 | — | ||||||||||||||||||||||
Foreign currency swaps | (5 | ) | — | — | — | |||||||||||||||||||||
Total | $ | 32 | $ | 1 | $ | 1 | $ | (1 | ) | |||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (54 | ) | $ | — | $ | — | $ | 1 | |||||||||||||||||
Interest rate forwards | (20 | ) | 3 | — | 1 | |||||||||||||||||||||
Foreign currency swaps | (2 | ) | — | — | — | |||||||||||||||||||||
Total | $ | (76 | ) | $ | 3 | $ | — | $ | 2 | |||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||
Interest rate swaps | $ | 68 | $ | — | $ | — | $ | — | ||||||||||||||||||
Interest rate forwards | 31 | 1 | 1 | 1 | ||||||||||||||||||||||
Foreign currency swaps | (3 | ) | — | — | — | |||||||||||||||||||||
Total | $ | 96 | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||
Interest rate swaps | $ | (77 | ) | $ | (1 | ) | $ | — | $ | 1 | ||||||||||||||||
Interest rate forwards | (35 | ) | 6 | 1 | 1 | |||||||||||||||||||||
Foreign currency swaps | 22 | (1 | ) | — | 1 | |||||||||||||||||||||
Total | $ | (90 | ) | $ | 4 | $ | 1 | $ | 3 | |||||||||||||||||
Schedule of estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps | ' | |||||||||||||||||||||||||
The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Rating Agency Designation of Referenced | Estimated | Maximum | Weighted | Estimated | Maximum | Weighted | ||||||||||||||||||||
Credit Obligations (1) | Fair Value | Amount of Future | Average | Fair Value | Amount of Future | Average | ||||||||||||||||||||
of Credit | Payments under | Years to | of Credit | Payments under | Years to | |||||||||||||||||||||
Default | Credit Default | Maturity (3) | Default | Credit Default | Maturity (3) | |||||||||||||||||||||
Swaps | Swaps (2) | Swaps | Swaps (2) | |||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||
Aaa/Aa/A | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | $ | 2 | $ | 135 | 2.2 | $ | 3 | $ | 115 | 2.7 | ||||||||||||||||
Credit default swaps referencing indices | 3 | 602 | 0.8 | 6 | 650 | 1.1 | ||||||||||||||||||||
Subtotal | 5 | 737 | 1 | 9 | 765 | 1.3 | ||||||||||||||||||||
Baa | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | 8 | 416 | 2.5 | 8 | 446 | 3 | ||||||||||||||||||||
Credit default swaps referencing indices | 21 | 1,039 | 4.7 | 18 | 996 | 4.9 | ||||||||||||||||||||
Subtotal | 29 | 1,455 | 4.1 | 26 | 1,442 | 4.3 | ||||||||||||||||||||
B | ||||||||||||||||||||||||||
Single name credit default swaps (corporate) | — | — | — | — | — | — | ||||||||||||||||||||
Credit default swaps referencing indices | 3 | 35 | 5 | 3 | 36 | 5 | ||||||||||||||||||||
Subtotal | 3 | 35 | 5 | 3 | 36 | 5 | ||||||||||||||||||||
Total | $ | 37 | $ | 2,227 | 3.1 | $ | 38 | $ | 2,243 | 3.3 | ||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody’s Investors Service (“Moody’s”), Standard & Poor’s Ratings Services (“S&P”) and Fitch Ratings. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||
-2 | Assumes the value of the referenced credit obligations is zero. | |||||||||||||||||||||||||
-3 | The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts. | |||||||||||||||||||||||||
Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral | ' | |||||||||||||||||||||||||
The estimated fair values of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral were as follows at: | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: | ||||||||||||||||||||||||||
OTC-bilateral (1) | $ | 1,122 | $ | 508 | $ | 1,450 | $ | 851 | ||||||||||||||||||
OTC-cleared (1) | 58 | 35 | 50 | 9 | ||||||||||||||||||||||
Exchange-traded | 2 | 1 | — | 6 | ||||||||||||||||||||||
Total gross estimated fair value of derivatives (1) | 1,182 | 544 | 1,500 | 866 | ||||||||||||||||||||||
Amounts offset on the consolidated balance sheets | — | — | — | — | ||||||||||||||||||||||
Estimated fair value of derivatives presented on the consolidated balance sheets (1) | 1,182 | 544 | 1,500 | 866 | ||||||||||||||||||||||
Gross amounts not offset on the consolidated balance sheets: | ||||||||||||||||||||||||||
Gross estimated fair value of derivatives: (2) | ||||||||||||||||||||||||||
OTC-bilateral | (360 | ) | (360 | ) | (670 | ) | (670 | ) | ||||||||||||||||||
OTC-cleared | (28 | ) | (28 | ) | (8 | ) | (8 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | — | ||||||||||||||||||||||
Cash collateral: (3) | ||||||||||||||||||||||||||
OTC-bilateral | (170 | ) | — | (216 | ) | — | ||||||||||||||||||||
OTC-cleared | (30 | ) | (7 | ) | (40 | ) | (1 | ) | ||||||||||||||||||
Exchange-traded | — | — | — | (5 | ) | |||||||||||||||||||||
Securities collateral: (4) | ||||||||||||||||||||||||||
OTC-bilateral | (581 | ) | (145 | ) | (554 | ) | (160 | ) | ||||||||||||||||||
OTC-cleared | — | — | — | — | ||||||||||||||||||||||
Exchange-traded | — | (1 | ) | — | (1 | ) | ||||||||||||||||||||
Net amount after application of master netting agreements and collateral | $ | 13 | $ | 3 | $ | 12 | $ | 21 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | At June 30, 2014 and December 31, 2013, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $25 million and $40 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $15 million and $25 million, respectively. | |||||||||||||||||||||||||
-2 | Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. | |||||||||||||||||||||||||
-3 | Cash collateral received is included in cash and cash equivalents, short-term investments or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions on the balance sheet. The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables on the balance sheet. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At June 30, 2014 and December 31, 2013, the Company received excess cash collateral of $6 million and $21 million, respectively, and provided excess cash collateral of $24 million and $19 million, respectively, which is not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
-4 | Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the balance sheet. Subject to certain constraints, the Company is permitted by contract to sell or repledge this collateral, but at June 30, 2014 none of the collateral had been sold or repledged. Securities collateral pledged by the Company is reported in fixed maturity securities on the balance sheet. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At June 30, 2014 and December 31, 2013, the Company received excess securities collateral with an estimated fair value of $18 million and $34 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At June 30, 2014 and December 31, 2013, the Company provided excess securities collateral with an estimated fair value of $7 million and $1 million, respectively, for its OTC-bilateral derivatives and $29 million and $29 million, respectively, for its OTC-cleared derivatives, and $55 million and $46 million, respectively, for its exchange-traded derivatives, which are not included in the table above due to the foregoing limitation. | |||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | |||||||||||||||||||||||||
Components of Net Derivatives Gains (Losses) | ' | |||||||||||||||||||||||||
The components of net derivative gains (losses) were as follows: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Derivatives and hedging gains (losses) (1) | $ | 85 | $ | (423 | ) | $ | 151 | $ | (563 | ) | ||||||||||||||||
Embedded derivatives | 101 | (72 | ) | 215 | 181 | |||||||||||||||||||||
Total net derivative gains (losses) | $ | 186 | $ | (495 | ) | $ | 366 | $ | (382 | ) | ||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. | |||||||||||||||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||||||||||||||
The following table presents the estimated fair value of the Company’s OTC-bilateral derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company’s financial strength rating at the reporting date or if the Company’s financial strength rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table. | ||||||||||||||||||||||||||
Estimated Fair Value of | Fair Value of Incremental | |||||||||||||||||||||||||
Collateral Provided | Collateral Provided Upon | |||||||||||||||||||||||||
Estimated | Fixed Maturity | One Notch | Downgrade in the | |||||||||||||||||||||||
Fair Value of | Securities | Downgrade | Company’s Financial Strength Rating | |||||||||||||||||||||||
Derivatives in Net | in the | to a Level that Triggers | ||||||||||||||||||||||||
Liability Position (1) | Company’s | Full Overnight Collateralization or | ||||||||||||||||||||||||
Financial Strength | Termination of | |||||||||||||||||||||||||
Rating | the Derivative Position | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
June 30, 2014 | $ | 148 | $ | 152 | $ | — | $ | 2 | ||||||||||||||||||
December 31, 2013 | $ | 181 | $ | 161 | $ | — | $ | 2 | ||||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | After taking into consideration the existence of netting agreements. | |||||||||||||||||||||||||
Embedded Derivative Financial Instruments [Member] | ' | |||||||||||||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | |||||||||||||||||||||||||
Components of Net Derivatives Gains (Losses) | ' | |||||||||||||||||||||||||
The following table presents changes in estimated fair value related to embedded derivatives: | ||||||||||||||||||||||||||
Three Months | Six Months | |||||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net derivative gains (losses) (1), (2) | $ | 101 | $ | (72 | ) | $ | 215 | $ | 181 | |||||||||||||||||
____________ | ||||||||||||||||||||||||||
-1 | The valuation of direct and assumed guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $2 million and $7 million for the three months and six months ended June 30, 2014, respectively, and ($38) million and ($127) million for the three months and six months ended June 30, 2013, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses), in connection with this adjustment, were $15 million and ($4) million for the three months and six months ended June 30, 2014, respectively, and $41 million and $159 million for the three months and six months ended June 30, 2013, respectively. | |||||||||||||||||||||||||
-2 | See Note 12 for discussion of affiliated net derivative gains (losses) included in the table above. | |||||||||||||||||||||||||
Schedule of Derivative Instruments | ' | |||||||||||||||||||||||||
The following table presents the estimated fair value and balance sheet location of the Company’s embedded derivatives that have been separated from their host contracts at: | ||||||||||||||||||||||||||
Balance Sheet Location | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts: | ||||||||||||||||||||||||||
Ceded guaranteed minimum benefits | Premiums, reinsurance and other receivables | $ | 1,373 | $ | 912 | |||||||||||||||||||||
Options embedded in debt or equity securities | Investments | (38 | ) | (30 | ) | |||||||||||||||||||||
Net embedded derivatives within asset host contracts | $ | 1,335 | $ | 882 | ||||||||||||||||||||||
Net embedded derivatives within liability host contracts: | ||||||||||||||||||||||||||
Direct guaranteed minimum benefits | PABs | $ | (1,210 | ) | $ | (1,232 | ) | |||||||||||||||||||
Assumed guaranteed minimum benefits | Other policyholder funds | (12 | ) | (13 | ) | |||||||||||||||||||||
Funds withheld on ceded reinsurance | Other liabilities | 254 | 34 | |||||||||||||||||||||||
Other | PABs | 15 | — | |||||||||||||||||||||||
Net embedded derivatives within liability host contracts | $ | (953 | ) | $ | (1,211 | ) |
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below. | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Estimated | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 14,535 | $ | 1,414 | $ | 15,949 | |||||||||||||||||||||||||
Foreign corporate | — | 4,472 | 689 | 5,161 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 6,260 | 4,667 | — | 10,927 | |||||||||||||||||||||||||||||
RMBS | — | 4,471 | 529 | 5,000 | |||||||||||||||||||||||||||||
State and political subdivision | — | 2,355 | 2 | 2,357 | |||||||||||||||||||||||||||||
ABS | — | 1,393 | 218 | 1,611 | |||||||||||||||||||||||||||||
CMBS | — | 1,286 | 85 | 1,371 | |||||||||||||||||||||||||||||
Foreign government | — | 697 | — | 697 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 6,260 | 33,876 | 2,937 | 43,073 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 168 | 62 | 230 | |||||||||||||||||||||||||||||
Common stock | 100 | 82 | 36 | 218 | |||||||||||||||||||||||||||||
Total equity securities | 100 | 250 | 98 | 448 | |||||||||||||||||||||||||||||
Short-term investments (1) | 251 | 933 | — | 1,184 | |||||||||||||||||||||||||||||
Mortgage loans held by CSEs — FVO | — | 638 | — | 638 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
FVO securities | — | — | — | — | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | 2 | 750 | 23 | 775 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 69 | — | 69 | |||||||||||||||||||||||||||||
Credit | — | 34 | 3 | 37 | |||||||||||||||||||||||||||||
Equity market | — | 266 | 10 | 276 | |||||||||||||||||||||||||||||
Total derivative assets | 2 | 1,119 | 36 | 1,157 | |||||||||||||||||||||||||||||
Total other invested assets | 2 | 1,119 | 36 | 1,157 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 1,373 | 1,373 | |||||||||||||||||||||||||||||
Separate account assets (4) | 262 | 99,710 | 161 | 100,133 | |||||||||||||||||||||||||||||
Total assets | $ | 6,875 | $ | 136,526 | $ | 4,605 | $ | 148,006 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | — | $ | 272 | $ | — | $ | 272 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 70 | — | 70 | |||||||||||||||||||||||||||||
Credit | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Equity market | 1 | 76 | 109 | 186 | |||||||||||||||||||||||||||||
Total derivative liabilities | 1 | 419 | 109 | 529 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | — | (953 | ) | (953 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 499 | — | 499 | |||||||||||||||||||||||||||||
Total liabilities | $ | 1 | $ | 918 | $ | (844 | ) | $ | 75 | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Estimated | ||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||
U.S. corporate | $ | — | $ | 15,454 | $ | 1,248 | $ | 16,702 | |||||||||||||||||||||||||
Foreign corporate | — | 7,783 | 734 | 8,517 | |||||||||||||||||||||||||||||
U.S. Treasury and agency | 4,365 | 3,929 | — | 8,294 | |||||||||||||||||||||||||||||
RMBS | — | 4,266 | 422 | 4,688 | |||||||||||||||||||||||||||||
State and political subdivision | — | 2,224 | — | 2,224 | |||||||||||||||||||||||||||||
ABS | — | 1,682 | 419 | 2,101 | |||||||||||||||||||||||||||||
CMBS | — | 1,532 | 72 | 1,604 | |||||||||||||||||||||||||||||
Foreign government | — | 1,122 | — | 1,122 | |||||||||||||||||||||||||||||
Total fixed maturity securities | 4,365 | 37,992 | 2,895 | 45,252 | |||||||||||||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||
Non-redeemable preferred stock | — | 136 | 81 | 217 | |||||||||||||||||||||||||||||
Common stock | 86 | 84 | 31 | 201 | |||||||||||||||||||||||||||||
Total equity securities | 86 | 220 | 112 | 418 | |||||||||||||||||||||||||||||
Short-term investments (1) | 391 | 1,671 | — | 2,062 | |||||||||||||||||||||||||||||
Mortgage loans held by CSEs — FVO | — | 1,598 | — | 1,598 | |||||||||||||||||||||||||||||
Other invested assets: | |||||||||||||||||||||||||||||||||
FVO securities | — | 9 | — | 9 | |||||||||||||||||||||||||||||
Derivative assets: (2) | |||||||||||||||||||||||||||||||||
Interest rate | — | 1,011 | 23 | 1,034 | |||||||||||||||||||||||||||||
Foreign currency exchange rate | — | 77 | — | 77 | |||||||||||||||||||||||||||||
Credit | — | 32 | 6 | 38 | |||||||||||||||||||||||||||||
Equity market | — | 305 | 6 | 311 | |||||||||||||||||||||||||||||
Total derivative assets | — | 1,425 | 35 | 1,460 | |||||||||||||||||||||||||||||
Total other invested assets | — | 1,434 | 35 | 1,469 | |||||||||||||||||||||||||||||
Net embedded derivatives within asset host contracts (3) | — | — | 912 | 912 | |||||||||||||||||||||||||||||
Separate account assets (4) | 259 | 97,368 | 153 | 97,780 | |||||||||||||||||||||||||||||
Total assets | $ | 5,101 | $ | 140,283 | $ | 4,107 | $ | 149,491 | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative liabilities: (2) | |||||||||||||||||||||||||||||||||
Interest rate | $ | 3 | $ | 574 | $ | 12 | $ | 589 | |||||||||||||||||||||||||
Foreign currency exchange rate | — | 90 | — | 90 | |||||||||||||||||||||||||||||
Credit | — | 1 | — | 1 | |||||||||||||||||||||||||||||
Equity market | 3 | 64 | 94 | 161 | |||||||||||||||||||||||||||||
Total derivative liabilities | 6 | 729 | 106 | 841 | |||||||||||||||||||||||||||||
Net embedded derivatives within liability host contracts (3) | — | — | (1,211 | ) | (1,211 | ) | |||||||||||||||||||||||||||
Long-term debt of CSEs — FVO | — | 1,461 | — | 1,461 | |||||||||||||||||||||||||||||
Total liabilities | $ | 6 | $ | 2,190 | $ | (1,105 | ) | $ | 1,091 | ||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis. | ||||||||||||||||||||||||||||||||
-2 | Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables. | ||||||||||||||||||||||||||||||||
-3 | Net embedded derivatives within asset host contracts are presented primarily within premiums, reinsurance and other receivables on the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented primarily within PABs and other liabilities on the consolidated balance sheets. At June 30, 2014 and December 31, 2013, equity securities also included embedded derivatives of ($38) million and ($30) million, respectively. | ||||||||||||||||||||||||||||||||
-4 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. | ||||||||||||||||||||||||||||||||
Fair Value Inputs, Quantitative Information | ' | ||||||||||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Range | Average (1) | Average (1) | |||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | Ÿ | Matrix pricing | Ÿ | Delta spread adjustments (4) | 10 | - | 125 | 31 | -10 | - | 240 | 51 | Decrease | ||||||||||||||||||||
Ÿ | Illiquidity premium (4) | 30 | - | 30 | 30 | 30 | - | 30 | 30 | Decrease | |||||||||||||||||||||||
Ÿ | Credit spreads (4) | -114 | - | 539 | 258 | -112 | - | 538 | 208 | Decrease | |||||||||||||||||||||||
Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 99 | - | 100 | 100 | Increase | |||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | — | - | 705 | 133 | Increase | |||||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 68 | - | 700 | 400 | 33 | - | 103 | 87 | Increase | |||||||||||||||||||||
RMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 220 | - | 582 | 342 | -96 | - | 2,406 | 295 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 91 | - | 103 | 96 | 10 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 1 | - | 107 | 92 | 78 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
CMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | -89 | - | 95 | -33 | 341 | - | 1,879 | 746 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 1 | - | 104 | 102 | 97 | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 101 | - | 101 | 101 | Increase (6) | |||||||||||||||||||||
ABS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 111 | - | 914 | 358 | 30 | - | 875 | 319 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 97 | - | 100 | 100 | — | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 62 | - | 106 | 99 | 58 | - | 106 | 98 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | Ÿ | Present value techniques | Ÿ | Swap yield (7) | 353 | - | 353 | 248 | - | 450 | Increase (11) | ||||||||||||||||||||||
Credit | Ÿ | Present value techniques | Ÿ | Credit spreads (8) | 99 | - | 100 | 98 | - | 100 | Decrease (8) | ||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (9) | ||||||||||||||||||||||||||||||
Equity market | Ÿ | Present value techniques | Ÿ | Volatility (10) | 13% | - | 22% | 17% | - | 28% | Increase (11) | ||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | Ÿ | Option pricing techniques | Ÿ | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (12) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (12) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (12) | ||||||||||||||||||||||||||
Ÿ | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Ÿ | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (14) | |||||||||||||||||||||||||
Ÿ | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -15 | |||||||||||||||||||||||||
Ÿ | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (16) | |||||||||||||||||||||||||
Ÿ | Nonperformance risk spread | 0.03% | - | 1.31% | 0.03% | - | 0.44% | Decrease (17) | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | ||||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | ||||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | ||||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | ||||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | ||||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | ||||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-8 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-9 | At both June 30, 2014 and December 31, 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | ||||||||||||||||||||||||||||||||
-10 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-12 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-13 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-14 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-15 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | ||||||||||||||||||||||||||||||||
-16 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-17 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
Fair Value Inputs, Quantitative Information | ' | ||||||||||||||||||||||||||||||||
The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at: | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | Impact of | |||||||||||||||||||||||||||||||
Increase in Input | |||||||||||||||||||||||||||||||||
on Estimated | |||||||||||||||||||||||||||||||||
Valuation | Significant | Weighted | Range | Weighted | Fair Value (2) | ||||||||||||||||||||||||||||
Techniques | Unobservable Inputs | Range | Average (1) | Average (1) | |||||||||||||||||||||||||||||
Fixed maturity securities (3) | |||||||||||||||||||||||||||||||||
U.S. corporate and foreign corporate | Ÿ | Matrix pricing | Ÿ | Delta spread adjustments (4) | 10 | - | 125 | 31 | -10 | - | 240 | 51 | Decrease | ||||||||||||||||||||
Ÿ | Illiquidity premium (4) | 30 | - | 30 | 30 | 30 | - | 30 | 30 | Decrease | |||||||||||||||||||||||
Ÿ | Credit spreads (4) | -114 | - | 539 | 258 | -112 | - | 538 | 208 | Decrease | |||||||||||||||||||||||
Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 99 | - | 100 | 100 | Increase | |||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | — | - | 705 | 133 | Increase | |||||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 68 | - | 700 | 400 | 33 | - | 103 | 87 | Increase | |||||||||||||||||||||
RMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 220 | - | 582 | 342 | -96 | - | 2,406 | 295 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 91 | - | 103 | 96 | 10 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 1 | - | 107 | 92 | 78 | - | 100 | 95 | Increase (6) | |||||||||||||||||||||
CMBS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | -89 | - | 95 | -33 | 341 | - | 1,879 | 746 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 1 | - | 104 | 102 | 97 | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 100 | - | 100 | 100 | 101 | - | 101 | 101 | Increase (6) | |||||||||||||||||||||
ABS | Ÿ | Matrix pricing and | Ÿ | Credit spreads (4) | 111 | - | 914 | 358 | 30 | - | 875 | 319 | Decrease (6) | ||||||||||||||||||||
discounted cash flow | |||||||||||||||||||||||||||||||||
Ÿ | Market pricing | Ÿ | Quoted prices (5) | 97 | - | 100 | 100 | — | - | 104 | 101 | Increase (6) | |||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (5) | 62 | - | 106 | 99 | 58 | - | 106 | 98 | Increase (6) | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Interest rate | Ÿ | Present value techniques | Ÿ | Swap yield (7) | 353 | - | 353 | 248 | - | 450 | Increase (11) | ||||||||||||||||||||||
Credit | Ÿ | Present value techniques | Ÿ | Credit spreads (8) | 99 | - | 100 | 98 | - | 100 | Decrease (8) | ||||||||||||||||||||||
Ÿ | Consensus pricing | Ÿ | Offered quotes (9) | ||||||||||||||||||||||||||||||
Equity market | Ÿ | Present value techniques | Ÿ | Volatility (10) | 13% | - | 22% | 17% | - | 28% | Increase (11) | ||||||||||||||||||||||
Embedded derivatives | |||||||||||||||||||||||||||||||||
Direct and ceded guaranteed minimum benefits | Ÿ | Option pricing techniques | Ÿ | Mortality rates: | |||||||||||||||||||||||||||||
Ages 0 - 40 | 0% | - | 0.10% | 0% | - | 0.10% | Decrease (12) | ||||||||||||||||||||||||||
Ages 41 - 60 | 0.04% | - | 0.65% | 0.04% | - | 0.65% | Decrease (12) | ||||||||||||||||||||||||||
Ages 61 - 115 | 0.26% | - | 100% | 0.26% | - | 100% | Decrease (12) | ||||||||||||||||||||||||||
Ÿ | Lapse rates: | ||||||||||||||||||||||||||||||||
Durations 1 - 10 | 0.50% | - | 100% | 0.50% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 11 - 20 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Durations 21 - 116 | 3% | - | 100% | 3% | - | 100% | Decrease (13) | ||||||||||||||||||||||||||
Ÿ | Utilization rates | 20% | - | 50% | 20% | - | 50% | Increase (14) | |||||||||||||||||||||||||
Ÿ | Withdrawal rates | 0.07% | - | 10% | 0.07% | - | 10% | -15 | |||||||||||||||||||||||||
Ÿ | Long-term equity volatilities | 17.40% | - | 25% | 17.40% | - | 25% | Increase (16) | |||||||||||||||||||||||||
Ÿ | Nonperformance risk spread | 0.03% | - | 1.31% | 0.03% | - | 0.44% | Decrease (17) | |||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. | ||||||||||||||||||||||||||||||||
-2 | The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. | ||||||||||||||||||||||||||||||||
-3 | Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. | ||||||||||||||||||||||||||||||||
-4 | Range and weighted average are presented in basis points. | ||||||||||||||||||||||||||||||||
-5 | Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. | ||||||||||||||||||||||||||||||||
-6 | Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. | ||||||||||||||||||||||||||||||||
-7 | Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-8 | Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. | ||||||||||||||||||||||||||||||||
-9 | At both June 30, 2014 and December 31, 2013, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value. | ||||||||||||||||||||||||||||||||
-10 | Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. | ||||||||||||||||||||||||||||||||
-11 | Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. | ||||||||||||||||||||||||||||||||
-12 | Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-13 | Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-14 | The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-15 | The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. | ||||||||||||||||||||||||||||||||
-16 | Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
-17 | Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. | ||||||||||||||||||||||||||||||||
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3): | |||||||||||||||||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,400 | $ | 723 | $ | 535 | $ | — | $ | 185 | $ | 102 | $ | — | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 2 | 1 | 1 | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | — | (2 | ) | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | 17 | 14 | 7 | — | (3 | ) | — | — | |||||||||||||||||||||||||
Purchases (3) | 31 | 9 | 63 | — | 49 | 2 | — | ||||||||||||||||||||||||||
Sales (3) | (22 | ) | (48 | ) | (15 | ) | — | (27 | ) | (4 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 15 | — | — | 2 | 38 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (29 | ) | (8 | ) | (62 | ) | — | (24 | ) | (15 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,414 | $ | 689 | $ | 529 | $ | 2 | $ | 218 | $ | 85 | $ | — | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 2 | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non - | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 89 | $ | 33 | $ | 91 | $ | 38 | $ | 4 | $ | (95 | ) | $ | 2,237 | $ | 160 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | 9 | (1 | ) | (4 | ) | 107 | — | |||||||||||||||||||||||
OCI | 6 | 3 | — | 11 | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | 6 | |||||||||||||||||||||||||
Sales (3) | — | — | (47 | ) | — | — | — | — | (4 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (35 | ) | — | — | (18 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (33 | ) | — | (44 | ) | — | — | — | — | (1 | ) | ||||||||||||||||||||||
Balance, end of period | $ | 62 | $ | 36 | $ | — | $ | 23 | $ | 3 | $ | (99 | ) | $ | 2,326 | $ | 161 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | $ | (4 | ) | $ | 121 | $ | — | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,267 | $ | 786 | $ | 314 | $ | 25 | $ | 420 | $ | 106 | $ | 2 | |||||||||||||||||||
Total realized/unrealized gains (losses)included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 3 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (3 | ) | (1 | ) | — | — | — | 1 | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | (40 | ) | (29 | ) | — | — | (1 | ) | — | — | |||||||||||||||||||||||
Purchases (3) | 111 | 69 | 86 | — | 61 | 4 | — | ||||||||||||||||||||||||||
Sales (3) | (75 | ) | (25 | ) | (51 | ) | — | (42 | ) | (40 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 8 | 23 | 3 | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (102 | ) | (10 | ) | — | (19 | ) | (15 | ) | (5 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,169 | $ | 813 | $ | 352 | $ | 6 | $ | 423 | $ | 66 | $ | 2 | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 79 | $ | 26 | $ | 396 | $ | 106 | $ | 8 | $ | (86 | ) | $ | 2,550 | $ | 139 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | (26 | ) | (2 | ) | 2 | (81 | ) | — | ||||||||||||||||||||||
OCI | 2 | 1 | — | (20 | ) | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | — | 3 | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||
Sales (3) | — | — | (366 | ) | — | — | — | — | (2 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (12 | ) | — | — | (16 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | 1 | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | (30 | ) | (1 | ) | — | — | — | — | |||||||||||||||||||||||
Balance, end of period | $ | 81 | $ | 30 | $ | 2 | $ | 47 | $ | 6 | $ | (84 | ) | $ | 2,453 | $ | 140 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | (22 | ) | $ | (2 | ) | $ | 3 | $ | (74 | ) | $ | — | ||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,248 | $ | 734 | $ | 422 | $ | — | $ | 419 | $ | 72 | $ | — | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 3 | 1 | 2 | — | — | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | (3 | ) | 3 | — | 1 | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | 45 | 30 | 9 | — | — | 1 | — | ||||||||||||||||||||||||||
Purchases (3) | 61 | 10 | 144 | — | 74 | 18 | — | ||||||||||||||||||||||||||
Sales (3) | (63 | ) | (52 | ) | (47 | ) | — | (81 | ) | (5 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 164 | — | 14 | 2 | 22 | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (43 | ) | (31 | ) | (18 | ) | — | (217 | ) | (1 | ) | — | |||||||||||||||||||||
Balance, end of period | $ | 1,414 | $ | 689 | $ | 529 | $ | 2 | $ | 218 | $ | 85 | $ | — | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 3 | $ | — | $ | 2 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 81 | $ | 31 | $ | — | $ | 11 | $ | 6 | $ | (88 | ) | $ | 2,123 | $ | 153 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | (3 | ) | — | — | — | — | — | 5 | |||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | 17 | (3 | ) | (11 | ) | 225 | — | |||||||||||||||||||||||
OCI | 4 | 8 | — | 31 | — | — | — | — | |||||||||||||||||||||||||
Purchases (3) | — | — | — | — | — | — | — | 8 | |||||||||||||||||||||||||
Sales (3) | — | (6 | ) | — | — | — | — | — | (5 | ) | |||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (36 | ) | — | — | (22 | ) | — | |||||||||||||||||||||||
Transfers into Level 3 (4) | — | 6 | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | (22 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | 62 | $ | 36 | $ | — | $ | 23 | $ | 3 | $ | (99 | ) | $ | 2,326 | $ | 161 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | (3 | ) | $ | (11 | ) | $ | 247 | $ | — | |||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||||||||||||
U.S. | Foreign | RMBS | State and | ABS | CMBS | Foreign | |||||||||||||||||||||||||||
Corporate | Corporate | Political | Government | ||||||||||||||||||||||||||||||
Subdivision | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 1,434 | $ | 868 | $ | 278 | $ | 25 | $ | 343 | $ | 125 | $ | 3 | |||||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | 5 | — | — | — | 1 | — | — | ||||||||||||||||||||||||||
Net investment gains (losses) | (3 | ) | (3 | ) | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
OCI | (13 | ) | (23 | ) | 8 | — | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||||
Purchases (3) | 139 | 87 | 85 | — | 124 | 6 | — | ||||||||||||||||||||||||||
Sales (3) | (126 | ) | (65 | ) | (27 | ) | — | (16 | ) | (53 | ) | — | |||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Settlements (3) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transfers into Level 3 (4) | 56 | 22 | 12 | — | — | — | — | ||||||||||||||||||||||||||
Transfers out of Level 3 (4) | (323 | ) | (73 | ) | (4 | ) | (19 | ) | (28 | ) | (14 | ) | — | ||||||||||||||||||||
Balance, end of period | $ | 1,169 | $ | 813 | $ | 352 | $ | 6 | $ | 423 | $ | 66 | $ | 2 | |||||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | 5 | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | |||||||||||||||||||
Net investment gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||||
Equity Securities | Net Derivatives (6) | ||||||||||||||||||||||||||||||||
Non- | Common | Short-term | Interest | Credit | Equity | Net | Separate | ||||||||||||||||||||||||||
redeemable | Stock | Investments | Rate | Market | Embedded | Account | |||||||||||||||||||||||||||
Preferred | Derivatives (7) | Assets (8) | |||||||||||||||||||||||||||||||
Stock | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 93 | $ | 26 | $ | 13 | $ | 119 | $ | 10 | $ | (51 | ) | $ | 2,290 | $ | 141 | ||||||||||||||||
Total realized/unrealized gains (losses) included in: | |||||||||||||||||||||||||||||||||
Net income (loss): (1), (2) | |||||||||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Net derivative gains (losses) | — | — | — | (21 | ) | (4 | ) | (25 | ) | 173 | — | ||||||||||||||||||||||
OCI | 6 | 2 | — | (35 | ) | — | — | — | — | ||||||||||||||||||||||||
Purchases (3) | 1 | 2 | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||
Sales (3) | (18 | ) | — | (13 | ) | — | — | — | — | (3 | ) | ||||||||||||||||||||||
Issuances (3) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Settlements (3) | — | — | — | (15 | ) | — | (8 | ) | (10 | ) | — | ||||||||||||||||||||||
Transfers into Level 3 (4) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Transfers out of Level 3 (4) | — | — | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||
Balance, end of period | $ | 81 | $ | 30 | $ | 2 | $ | 47 | $ | 6 | $ | (84 | ) | $ | 2,453 | $ | 140 | ||||||||||||||||
Changes in unrealized gains (losses) included in net income (loss): (5) | |||||||||||||||||||||||||||||||||
Net investment income | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Net investment gains (losses) | $ | (2 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Net derivative gains (losses) | $ | — | $ | — | $ | — | $ | (18 | ) | $ | (4 | ) | $ | (25 | ) | $ | 186 | $ | — | ||||||||||||||
__________ | |||||||||||||||||||||||||||||||||
-1 | Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). | ||||||||||||||||||||||||||||||||
-2 | Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. | ||||||||||||||||||||||||||||||||
-3 | Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. | ||||||||||||||||||||||||||||||||
-4 | Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. | ||||||||||||||||||||||||||||||||
-5 | Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. | ||||||||||||||||||||||||||||||||
-6 | Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. | ||||||||||||||||||||||||||||||||
-7 | Embedded derivative assets and liabilities are presented net for purposes of the rollforward. | ||||||||||||||||||||||||||||||||
-8 | Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income. For the purpose of this disclosure, these changes are presented within net investment gains (losses). | ||||||||||||||||||||||||||||||||
Fair Value Option | ' | ||||||||||||||||||||||||||||||||
The following table presents information for certain assets and liabilities of CSEs, which are accounted for under the FVO. These assets and liabilities were initially measured at fair value. | |||||||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets (1) | |||||||||||||||||||||||||||||||||
Unpaid principal balance | $ | 582 | $ | 1,528 | |||||||||||||||||||||||||||||
Difference between estimated fair value and unpaid principal balance | 56 | 70 | |||||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 638 | $ | 1,598 | |||||||||||||||||||||||||||||
Liabilities (1) | |||||||||||||||||||||||||||||||||
Contractual principal balance | $ | 493 | $ | 1,436 | |||||||||||||||||||||||||||||
Difference between estimated fair value and contractual principal balance | 6 | 25 | |||||||||||||||||||||||||||||||
Carrying value at estimated fair value | $ | 499 | $ | 1,461 | |||||||||||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | These assets and liabilities are comprised of commercial mortgage loans and long-term debt. Changes in estimated fair value on these assets and liabilities and gains or losses on sales of these assets are recognized in net investment gains (losses). Interest income on commercial mortgage loans held by CSEs — FVO is recognized in net investment income. Interest expense from long-term debt of CSEs — FVO is recognized in other expenses. | ||||||||||||||||||||||||||||||||
Nonrecurring Fair Value Measurements | ' | ||||||||||||||||||||||||||||||||
The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3). | |||||||||||||||||||||||||||||||||
At June 30, | Three Months | Six Months | |||||||||||||||||||||||||||||||
Ended | Ended | ||||||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Carrying Value After Measurement | Gains (Losses) | ||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Mortgage loans, net (1) | $ | 17 | $ | 19 | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) | $ | (3 | ) | |||||||||||||||||
Other limited partnership interests (2) | $ | 6 | $ | 4 | $ | (1 | ) | $ | (5 | ) | $ | (4 | ) | $ | (5 | ) | |||||||||||||||||
Real estate joint ventures (3) | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | (1 | ) | ||||||||||||||||||||
____________ | |||||||||||||||||||||||||||||||||
-1 | Estimated fair values for impaired mortgage loans are based on independent broker quotations or valuation models using unobservable inputs or, if the loans are in foreclosure or are otherwise determined to be collateral dependent, are based on the estimated fair value of the underlying collateral or the present value of the expected future cash flows. | ||||||||||||||||||||||||||||||||
-2 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both June 30, 2014 and 2013 were not significant. | ||||||||||||||||||||||||||||||||
-3 | For these cost method investments, estimated fair value is determined from information provided in the financial statements of the underlying entities including NAV data. These investments include several real estate funds that typically invest primarily in commercial real estate. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next one to 10 years. Unfunded commitments for these investments at both June 30, 2014 and 2013 were not significant. | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments Carried at Other Than Fair Value | ' | ||||||||||||||||||||||||||||||||
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at: | |||||||||||||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 5,756 | $ | — | $ | — | $ | 6,191 | $ | 6,191 | |||||||||||||||||||||||
Policy loans | $ | 1,207 | $ | — | $ | 866 | $ | 409 | $ | 1,275 | |||||||||||||||||||||||
Real estate joint ventures | $ | 52 | $ | — | $ | — | $ | 105 | $ | 105 | |||||||||||||||||||||||
Other limited partnership interests | $ | 71 | $ | — | $ | — | $ | 92 | $ | 92 | |||||||||||||||||||||||
Other invested assets | $ | 931 | $ | — | $ | 1,010 | $ | — | $ | 1,010 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 6,462 | $ | — | $ | 107 | $ | 7,032 | $ | 7,139 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
PABs | $ | 18,891 | $ | — | $ | — | $ | 20,130 | $ | 20,130 | |||||||||||||||||||||||
Long-term debt | $ | 790 | $ | — | $ | 1,108 | $ | — | $ | 1,108 | |||||||||||||||||||||||
Other liabilities | $ | 364 | $ | — | $ | 197 | $ | 167 | $ | 364 | |||||||||||||||||||||||
Separate account liabilities | $ | 1,471 | $ | — | $ | 1,471 | $ | — | $ | 1,471 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Value | Estimated | ||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Mortgage loans | $ | 6,120 | $ | — | $ | — | $ | 6,427 | $ | 6,427 | |||||||||||||||||||||||
Policy loans | $ | 1,219 | $ | — | $ | 872 | $ | 407 | $ | 1,279 | |||||||||||||||||||||||
Real estate joint ventures | $ | 55 | $ | — | $ | — | $ | 98 | $ | 98 | |||||||||||||||||||||||
Other limited partnership interests | $ | 78 | $ | — | $ | — | $ | 89 | $ | 89 | |||||||||||||||||||||||
Other invested assets | $ | 931 | $ | — | $ | 995 | $ | — | $ | 995 | |||||||||||||||||||||||
Premiums, reinsurance and other receivables | $ | 5,928 | $ | — | $ | 24 | $ | 6,282 | $ | 6,306 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
PABs | $ | 20,875 | $ | — | $ | — | $ | 21,987 | $ | 21,987 | |||||||||||||||||||||||
Long-term debt | $ | 790 | $ | — | $ | 1,009 | $ | — | $ | 1,009 | |||||||||||||||||||||||
Other liabilities | $ | 258 | $ | — | $ | 96 | $ | 162 | $ | 258 | |||||||||||||||||||||||
Separate account liabilities | $ | 1,448 | $ | — | $ | 1,448 | $ | — | $ | 1,448 | |||||||||||||||||||||||
Equity_Tables
Equity (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
Information regarding changes in the balances of each component of AOCI, net of income tax, was as follows: | |||||||||||||||||||
Three Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 1,503 | $ | 69 | $ | (17 | ) | $ | 1,555 | ||||||||||
OCI before reclassifications | 678 | 32 | 13 | 723 | |||||||||||||||
Deferred income tax benefit (expense) | (166 | ) | (12 | ) | 1 | (177 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 2,015 | 89 | (3 | ) | 2,101 | ||||||||||||||
Amounts reclassified from AOCI | (20 | ) | (2 | ) | — | (22 | ) | ||||||||||||
Deferred income tax benefit (expense) | 6 | — | — | 6 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (14 | ) | (2 | ) | — | (16 | ) | ||||||||||||
Sale of subsidiary (2) | (320 | ) | — | 6 | (314 | ) | |||||||||||||
Deferred income tax benefit (expense) | 80 | — | — | 80 | |||||||||||||||
Sale of subsidiary, net of income tax | (240 | ) | — | 6 | (234 | ) | |||||||||||||
Balance, end of period | $ | 1,761 | $ | 87 | $ | 3 | $ | 1,851 | |||||||||||
Three Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2013 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 1,944 | $ | 147 | $ | (105 | ) | $ | 1,986 | ||||||||||
OCI before reclassifications | (971 | ) | (76 | ) | (4 | ) | (1,051 | ) | |||||||||||
Deferred income tax benefit (expense) | 323 | 25 | 1 | 349 | |||||||||||||||
OCI before reclassifications, net of income tax | 1,296 | 96 | (108 | ) | 1,284 | ||||||||||||||
Amounts reclassified from AOCI | (13 | ) | (3 | ) | — | (16 | ) | ||||||||||||
Deferred income tax benefit (expense) | 2 | 2 | — | 4 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (11 | ) | (1 | ) | — | (12 | ) | ||||||||||||
Balance, end of period | $ | 1,285 | $ | 95 | $ | (108 | ) | $ | 1,272 | ||||||||||
Six Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2014 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 885 | $ | 27 | $ | (23 | ) | $ | 889 | ||||||||||
OCI before reclassifications | 1,638 | 96 | 20 | 1,754 | |||||||||||||||
Deferred income tax benefit (expense) | (489 | ) | (34 | ) | — | (523 | ) | ||||||||||||
OCI before reclassifications, net of income tax | 2,034 | 89 | (3 | ) | 2,120 | ||||||||||||||
Amounts reclassified from AOCI | (48 | ) | (2 | ) | — | (50 | ) | ||||||||||||
Deferred income tax benefit (expense) | 15 | — | — | 15 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (33 | ) | (2 | ) | — | (35 | ) | ||||||||||||
Sale of subsidiary (2) | (320 | ) | — | 6 | (314 | ) | |||||||||||||
Deferred income tax benefit (expense) | 80 | — | — | 80 | |||||||||||||||
Sale of subsidiary, net of income tax | (240 | ) | — | 6 | (234 | ) | |||||||||||||
Balance, end of period | $ | 1,761 | $ | 87 | $ | 3 | $ | 1,851 | |||||||||||
Six Months | |||||||||||||||||||
Ended | |||||||||||||||||||
June 30, 2013 | |||||||||||||||||||
Unrealized | Unrealized | Foreign | Total | ||||||||||||||||
Investment Gains | Gains (Losses) | Currency | |||||||||||||||||
(Losses), Net of | on Derivatives | Translation | |||||||||||||||||
Related Offsets (1) | Adjustments | ||||||||||||||||||
(In millions) | |||||||||||||||||||
Balance, beginning of period | $ | 2,291 | $ | 158 | $ | (49 | ) | $ | 2,400 | ||||||||||
OCI before reclassifications | (1,487 | ) | (90 | ) | (59 | ) | (1,636 | ) | |||||||||||
Deferred income tax benefit (expense) | 532 | 30 | — | 562 | |||||||||||||||
OCI before reclassifications, net of income tax | 1,336 | 98 | (108 | ) | 1,326 | ||||||||||||||
Amounts reclassified from AOCI | (80 | ) | (5 | ) | — | (85 | ) | ||||||||||||
Deferred income tax benefit (expense) | 29 | 2 | — | 31 | |||||||||||||||
Amounts reclassified from AOCI, net of income tax | (51 | ) | (3 | ) | — | (54 | ) | ||||||||||||
Balance, end of period | $ | 1,285 | $ | 95 | $ | (108 | ) | $ | 1,272 | ||||||||||
____________ | |||||||||||||||||||
-1 | See Note 5 for information on offsets to investments related to insurance liabilities and DAC and VOBA. | ||||||||||||||||||
-2 | See Note 3. | ||||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||||
Information regarding amounts reclassified out of each component of AOCI was as follows: | |||||||||||||||||||
AOCI Components | Amounts Reclassified from AOCI | Statement of Operations and | |||||||||||||||||
Comprehensive Income (Loss) Location | |||||||||||||||||||
Three Months | Six Months | ||||||||||||||||||
Ended | Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
(In millions) | |||||||||||||||||||
Net unrealized investment gains (losses): | |||||||||||||||||||
Net unrealized investment gains (losses) | $ | 9 | $ | 9 | $ | 29 | $ | 80 | Net investment gains (losses) | ||||||||||
Net unrealized investment gains (losses) | 10 | 3 | 16 | 6 | Net investment income | ||||||||||||||
Net unrealized investment gains (losses) | 2 | — | 4 | — | Net derivative gains (losses) | ||||||||||||||
OTTI | (1 | ) | 1 | (1 | ) | (6 | ) | Net investment gains (losses) | |||||||||||
Net unrealized investment gains (losses), before income tax | 20 | 13 | 48 | 80 | |||||||||||||||
Income tax (expense) benefit | (6 | ) | (2 | ) | (15 | ) | (29 | ) | |||||||||||
Net unrealized investment gains (losses), net of income tax | 14 | 11 | 33 | 51 | |||||||||||||||
Unrealized gains (losses) on derivatives - cash flow hedges: | |||||||||||||||||||
Interest rate swaps | — | — | — | (1 | ) | Net derivative gains (losses) | |||||||||||||
Interest rate forwards | 1 | 3 | 1 | 6 | Net derivative gains (losses) | ||||||||||||||
Interest rate forwards | 1 | — | 1 | 1 | Net investment income | ||||||||||||||
Foreign currency swaps | — | — | — | (1 | ) | Net derivative gains (losses) | |||||||||||||
Gains (losses) on cash flow hedges, before income tax | 2 | 3 | 2 | 5 | |||||||||||||||
Income tax (expense) benefit | — | (2 | ) | — | (2 | ) | |||||||||||||
Gains (losses) on cash flow hedges, net of income tax | 2 | 1 | 2 | 3 | |||||||||||||||
Total reclassifications, net of income tax | $ | 16 | $ | 12 | $ | 35 | $ | 54 | |||||||||||
Other_Expenses_Tables
Other Expenses (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Expenses | ' | |||||||||||||||
Information on other expenses was as follows: | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Compensation | $ | 79 | $ | 82 | $ | 158 | $ | 171 | ||||||||
Commissions | 131 | 170 | 261 | 363 | ||||||||||||
Volume-related costs | 45 | 22 | 83 | 40 | ||||||||||||
Affiliated interest costs on ceded reinsurance | 81 | 40 | 147 | 98 | ||||||||||||
Capitalization of DAC | (86 | ) | (133 | ) | (160 | ) | (287 | ) | ||||||||
Amortization of DAC and VOBA | 213 | 4 | 529 | 30 | ||||||||||||
Interest expense on debt | 28 | 49 | 63 | 100 | ||||||||||||
Premium taxes, licenses and fees | 16 | 15 | 29 | 28 | ||||||||||||
Professional services | 11 | 5 | 20 | 10 | ||||||||||||
Rent and related expenses | 8 | 7 | 16 | 15 | ||||||||||||
Other | 104 | 107 | 204 | 208 | ||||||||||||
Total other expenses | $ | 630 | $ | 368 | $ | 1,350 | $ | 776 | ||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Reinsurance Disclosure [Line Items] | ' | |||||||||||||||
Effects of reinsurance | ' | |||||||||||||||
Information regarding the significant effects of affiliated reinsurance included on the consolidated statements of operations and comprehensive income (loss) was as follows: | ||||||||||||||||
Three Months | Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Premiums | ||||||||||||||||
Reinsurance assumed | $ | 2 | $ | 2 | $ | 8 | $ | 6 | ||||||||
Reinsurance ceded | (184 | ) | (156 | ) | (447 | ) | (303 | ) | ||||||||
Net premiums | $ | (182 | ) | $ | (154 | ) | $ | (439 | ) | $ | (297 | ) | ||||
Universal life and investment-type product policy fees | ||||||||||||||||
Reinsurance assumed | $ | 24 | $ | 11 | $ | 48 | $ | 32 | ||||||||
Reinsurance ceded | (149 | ) | (168 | ) | (306 | ) | (302 | ) | ||||||||
Net universal life and investment-type product policy fees | $ | (125 | ) | $ | (157 | ) | $ | (258 | ) | $ | (270 | ) | ||||
Other revenues | ||||||||||||||||
Reinsurance assumed | $ | — | $ | — | $ | — | $ | — | ||||||||
Reinsurance ceded | 64 | 75 | 121 | 167 | ||||||||||||
Net other revenues | $ | 64 | $ | 75 | $ | 121 | $ | 167 | ||||||||
Policyholder benefits and claims | ||||||||||||||||
Reinsurance assumed | $ | 8 | $ | 2 | $ | 13 | $ | 5 | ||||||||
Reinsurance ceded | (238 | ) | (193 | ) | (588 | ) | (386 | ) | ||||||||
Net policyholder benefits and claims | $ | (230 | ) | $ | (191 | ) | $ | (575 | ) | $ | (381 | ) | ||||
Interest credited to policyholder account balances | ||||||||||||||||
Reinsurance assumed | $ | 18 | $ | 18 | $ | 37 | $ | 36 | ||||||||
Reinsurance ceded | (35 | ) | (32 | ) | (68 | ) | (61 | ) | ||||||||
Net interest credited to policyholder account balances | $ | (17 | ) | $ | (14 | ) | $ | (31 | ) | $ | (25 | ) | ||||
Other expenses | ||||||||||||||||
Reinsurance assumed | $ | 7 | $ | 3 | $ | 19 | $ | 12 | ||||||||
Reinsurance ceded | 50 | 12 | 74 | 33 | ||||||||||||
Net other expenses | $ | 57 | $ | 15 | $ | 93 | $ | 45 | ||||||||
Information regarding the significant effects of affiliated reinsurance included on the consolidated balance sheets was as follows at: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
Assumed | Ceded | Assumed | Ceded | |||||||||||||
(In millions) | ||||||||||||||||
Assets | ||||||||||||||||
Premiums, reinsurance and other receivables | $ | 27 | $ | 13,925 | $ | 28 | $ | 12,710 | ||||||||
Deferred policy acquisition costs and value of business acquired | 144 | (604 | ) | 122 | (579 | ) | ||||||||||
Total assets | $ | 171 | $ | 13,321 | $ | 150 | $ | 12,131 | ||||||||
Liabilities | ||||||||||||||||
Other policy-related balances | $ | 1,666 | $ | 786 | $ | 1,640 | $ | 811 | ||||||||
Other liabilities | 12 | 5,623 | 9 | 5,260 | ||||||||||||
Total liabilities | $ | 1,678 | $ | 6,409 | $ | 1,649 | $ | 6,071 | ||||||||
Business_Basis_of_Presentation2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||||||
Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2014 | Jan. 02, 2014 | Aug. 14, 2014 | |
Segment | Subsequent Event [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Related Party Loan Four and Five [Member] | Parent Company [Member] | Parent Company [Member] | ||
Affiliated Entity [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Member] | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of segments | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Invested assets on deposit | $6,892,000,000 | $56,000,000 | ' | ' | ' | ' | ' | ' | $6,300,000,000 | ' |
Estimated fair value of invested assets transferred to affiliates | ' | ' | ' | 91,000,000 | 0 | 445,000,000 | 13,000,000 | 430,000,000 | ' | ' |
Redemption and retirement of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 |
Cost of redemption and retirement of Common Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,595,317 |
Proceeds from Contributions from Parent | ' | ' | $230,000,000 | ' | ' | ' | ' | ' | ' | ' |
Segment_Information_Earnings_D
Segment Information (Earnings) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenues | ' | ' | ' | ' |
Premiums | $299,000,000 | $114,000,000 | $464,000,000 | $265,000,000 |
Universal life and investment-type product policy fees | 604,000,000 | 556,000,000 | 1,193,000,000 | 1,120,000,000 |
Net investment income | 597,000,000 | 724,000,000 | 1,299,000,000 | 1,454,000,000 |
Other revenues | 125,000,000 | 138,000,000 | 244,000,000 | 295,000,000 |
Net investment gains (losses) | -46,000,000 | 16,000,000 | -565,000,000 | 82,000,000 |
Net derivative gains (losses) | 186,000,000 | -495,000,000 | 366,000,000 | -382,000,000 |
Total revenues | 1,765,000,000 | 1,053,000,000 | 3,001,000,000 | 2,834,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 556,000,000 | 359,000,000 | 976,000,000 | 773,000,000 |
Interest credited to policyholder account balances | 236,000,000 | 259,000,000 | 475,000,000 | 523,000,000 |
Capitalization of DAC | -86,000,000 | -133,000,000 | -160,000,000 | -287,000,000 |
Amortization of DAC and VOBA | 213,000,000 | 4,000,000 | 529,000,000 | 30,000,000 |
Interest expense on debt | 28,000,000 | 49,000,000 | 63,000,000 | 100,000,000 |
Other expenses | 475,000,000 | 448,000,000 | 918,000,000 | 933,000,000 |
Total expenses | 1,422,000,000 | 986,000,000 | 2,801,000,000 | 2,072,000,000 |
Provision for income tax expense (benefit) | 99,000,000 | 6,000,000 | 50,000,000 | 236,000,000 |
Net income (loss) | 244,000,000 | 61,000,000 | 150,000,000 | 526,000,000 |
Operating Segments [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Premiums | 297,000,000 | 114,000,000 | 462,000,000 | 217,000,000 |
Universal life and investment-type product policy fees | 566,000,000 | 524,000,000 | 1,116,000,000 | 1,054,000,000 |
Net investment income | 604,000,000 | 692,000,000 | 1,280,000,000 | 1,375,000,000 |
Other revenues | 124,000,000 | 138,000,000 | 243,000,000 | 295,000,000 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 1,591,000,000 | 1,468,000,000 | 3,101,000,000 | 2,941,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 493,000,000 | 307,000,000 | 838,000,000 | 589,000,000 |
Interest credited to policyholder account balances | 235,000,000 | 260,000,000 | 474,000,000 | 526,000,000 |
Capitalization of DAC | -86,000,000 | -133,000,000 | -160,000,000 | -287,000,000 |
Amortization of DAC and VOBA | 147,000,000 | 159,000,000 | 324,000,000 | 275,000,000 |
Interest expense on debt | 16,000,000 | 17,000,000 | 33,000,000 | 34,000,000 |
Other expenses | 470,000,000 | 443,000,000 | 909,000,000 | 924,000,000 |
Total expenses | 1,275,000,000 | 1,053,000,000 | 2,418,000,000 | 2,061,000,000 |
Provision for income tax expense (benefit) | 89,000,000 | 128,000,000 | 195,000,000 | 275,000,000 |
Operating earnings | 227,000,000 | 287,000,000 | 488,000,000 | 605,000,000 |
Operating Segments [Member] | Retail [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Premiums | 267,000,000 | 74,000,000 | 483,000,000 | 148,000,000 |
Universal life and investment-type product policy fees | 557,000,000 | 516,000,000 | 1,099,000,000 | 1,037,000,000 |
Net investment income | 366,000,000 | 415,000,000 | 772,000,000 | 815,000,000 |
Other revenues | 124,000,000 | 136,000,000 | 241,000,000 | 292,000,000 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 1,314,000,000 | 1,141,000,000 | 2,595,000,000 | 2,292,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 355,000,000 | 165,000,000 | 675,000,000 | 311,000,000 |
Interest credited to policyholder account balances | 209,000,000 | 227,000,000 | 418,000,000 | 456,000,000 |
Capitalization of DAC | -76,000,000 | -128,000,000 | -134,000,000 | -276,000,000 |
Amortization of DAC and VOBA | 144,000,000 | 158,000,000 | 313,000,000 | 272,000,000 |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 441,000,000 | 432,000,000 | 855,000,000 | 898,000,000 |
Total expenses | 1,073,000,000 | 854,000,000 | 2,127,000,000 | 1,661,000,000 |
Provision for income tax expense (benefit) | 85,000,000 | 100,000,000 | 163,000,000 | 220,000,000 |
Operating earnings | 156,000,000 | 187,000,000 | 305,000,000 | 411,000,000 |
Operating Segments [Member] | Corporate Benefit Funding [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Premiums | 15,000,000 | 29,000,000 | -50,000,000 | 49,000,000 |
Universal life and investment-type product policy fees | 9,000,000 | 8,000,000 | 17,000,000 | 17,000,000 |
Net investment income | 210,000,000 | 252,000,000 | 445,000,000 | 503,000,000 |
Other revenues | 0 | 2,000,000 | 2,000,000 | 3,000,000 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 234,000,000 | 291,000,000 | 414,000,000 | 572,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 126,000,000 | 134,000,000 | 152,000,000 | 261,000,000 |
Interest credited to policyholder account balances | 26,000,000 | 33,000,000 | 56,000,000 | 70,000,000 |
Capitalization of DAC | 0 | 0 | 0 | -2,000,000 |
Amortization of DAC and VOBA | 1,000,000 | 1,000,000 | 1,000,000 | 3,000,000 |
Interest expense on debt | 0 | 0 | 0 | 0 |
Other expenses | 6,000,000 | 1,000,000 | 13,000,000 | 9,000,000 |
Total expenses | 159,000,000 | 169,000,000 | 222,000,000 | 341,000,000 |
Provision for income tax expense (benefit) | 26,000,000 | 43,000,000 | 67,000,000 | 81,000,000 |
Operating earnings | 49,000,000 | 79,000,000 | 125,000,000 | 150,000,000 |
Operating Segments [Member] | Corporate & Other [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Premiums | 15,000,000 | 11,000,000 | 29,000,000 | 20,000,000 |
Universal life and investment-type product policy fees | 0 | 0 | 0 | 0 |
Net investment income | 28,000,000 | 25,000,000 | 63,000,000 | 57,000,000 |
Other revenues | 0 | 0 | 0 | 0 |
Net investment gains (losses) | 0 | 0 | 0 | 0 |
Net derivative gains (losses) | 0 | 0 | 0 | 0 |
Total revenues | 43,000,000 | 36,000,000 | 92,000,000 | 77,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 12,000,000 | 8,000,000 | 11,000,000 | 17,000,000 |
Interest credited to policyholder account balances | 0 | 0 | 0 | 0 |
Capitalization of DAC | -10,000,000 | -5,000,000 | -26,000,000 | -9,000,000 |
Amortization of DAC and VOBA | 2,000,000 | 0 | 10,000,000 | 0 |
Interest expense on debt | 16,000,000 | 17,000,000 | 33,000,000 | 34,000,000 |
Other expenses | 23,000,000 | 10,000,000 | 41,000,000 | 17,000,000 |
Total expenses | 43,000,000 | 30,000,000 | 69,000,000 | 59,000,000 |
Provision for income tax expense (benefit) | -22,000,000 | -15,000,000 | -35,000,000 | -26,000,000 |
Operating earnings | 22,000,000 | 21,000,000 | 58,000,000 | 44,000,000 |
Significant Reconciling Items [Member] | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Premiums | 2,000,000 | 0 | 2,000,000 | 48,000,000 |
Universal life and investment-type product policy fees | 38,000,000 | 32,000,000 | 77,000,000 | 66,000,000 |
Net investment income | -7,000,000 | 32,000,000 | 19,000,000 | 79,000,000 |
Other revenues | 1,000,000 | 0 | 1,000,000 | 0 |
Net investment gains (losses) | -46,000,000 | 16,000,000 | -565,000,000 | 82,000,000 |
Net derivative gains (losses) | 186,000,000 | -495,000,000 | 366,000,000 | -382,000,000 |
Total revenues | 174,000,000 | -415,000,000 | -100,000,000 | -107,000,000 |
Expenses | ' | ' | ' | ' |
Policyholder benefits and claims | 63,000,000 | 52,000,000 | 138,000,000 | 184,000,000 |
Interest credited to policyholder account balances | 1,000,000 | -1,000,000 | 1,000,000 | -3,000,000 |
Capitalization of DAC | 0 | 0 | 0 | 0 |
Amortization of DAC and VOBA | 66,000,000 | -155,000,000 | 205,000,000 | -245,000,000 |
Interest expense on debt | 12,000,000 | 32,000,000 | 30,000,000 | 66,000,000 |
Other expenses | 5,000,000 | 5,000,000 | 9,000,000 | 9,000,000 |
Total expenses | 147,000,000 | -67,000,000 | 383,000,000 | 11,000,000 |
Provision for income tax expense (benefit) | $10,000,000 | ($122,000,000) | ($145,000,000) | ($39,000,000) |
Segment_Information_Total_Asse
Segment Information (Total Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $186,947 | $188,039 |
Retail [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 150,882 | 146,515 |
Corporate Benefit Funding [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | 24,347 | 30,822 |
Corporate & Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Total assets | $11,718 | $10,702 |
Segment_Information_Narrative_
Segment Information (Narrative) (Details) (USD $) | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2013 |
Segment | Affiliated Entity [Member] | Divested Business [Member] | Divested Business [Member] | Divested Business [Member] | Divested Business [Member] | |
Corporate Benefit Funding [Member] | Corporate Benefit Funding [Member] | Corporate & Other [Member] | Corporate & Other [Member] | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' |
Prior Period Reclassification Adjustment | ' | ' | $4 | $9 | $4 | $7 |
Prior Period Adjustment To Operating Earnings Tax Expense | ' | ' | 2 | 5 | 2 | 4 |
Reinsurance ceded premiums earned and policyholder benefits and claims | ' | ($87) | ' | ' | ' | ' |
Number of segments | 2 | ' | ' | ' | ' | ' |
Pending_Disposition_Pending_Di
Pending Disposition (Pending Disposition - Narrative) (Details) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | MetLife Assurance Limited [Member] | MetLife Assurance Limited [Member] | MetLife Assurance Limited [Member] | |
USD ($) | USD ($) | GBP (£) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Net consideration | ' | ' | ' | ' | $702 | $702 | £ 418 |
Non-investment portfolio gains (losses) | 2 | -1 | 3 | 1 | -61 | -608 | ' |
Non-investment portfolio gains (losses), net of tax | ' | ' | ' | ' | -50 | -436 | ' |
Goodwill Disposition | ' | ' | ' | ' | ' | 112 | ' |
Goodwill Disposition, net of tax | ' | ' | ' | ' | ' | 94 | ' |
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | ' | ' | ' | ' | $42 | $77 | ' |
Insurance_Guarantees_Related_t
Insurance (Guarantees Related to Annuity Contracts) (Details) (Variable Annuity Guarantees [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Guaranteed Death Benefits [Member] | ' | ' |
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' |
Account value | $102,466 | $100,420 |
Separate account value in event of death | 97,808 | 95,637 |
Net amount at risk in event of death | 1,976 | 2,230 |
Average attained age of contractholders | '64 years | '64 years |
Guaranteed Annuitization Benefits [Member] | ' | ' |
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' |
Account value | 58,226 | 57,041 |
Separate account value at annuitization | 57,054 | 55,805 |
Net amount at risk at annuitization | $668 | $562 |
Average attained age of contractholders | '65 years | '64 years |
Insurance_Guarantees_Related_t1
Insurance (Guarantees Related to Universal and Variable Life Contracts) (Details) (Universal And Variable Life Contracts [Member], Secondary Guarantees [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Universal And Variable Life Contracts [Member] | Secondary Guarantees [Member] | ' | ' |
Net Amount at Risk by Product and Guarantee [Line Items] | ' | ' |
Account value (general and separate account) | $6,550 | $6,360 |
Net amount at risk | $91,187 | $91,264 |
Average attained age of policyholders | '59 years | '58 years |
Investments_Fixed_Maturity_and
Investments (Fixed Maturity and Equity Securities Available-For-Sale by Sector) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | $39,766 | $43,477 | ' |
Cost or Amortized Cost | 378 | 397 | ' |
Gross Unrealized OTTI Loss | 29 | 41 | 64 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 43,073 | 45,252 | ' |
Equity securities | 448 | 418 | ' |
Fixed maturity securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 39,766 | 43,477 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 3,532 | 2,486 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 196 | 670 | ' |
Gross Unrealized OTTI Loss | 29 | 41 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 43,073 | 45,252 | ' |
U.S. corporate securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 14,503 | 15,779 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 1,534 | 1,130 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 88 | 207 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 15,949 | 16,702 | ' |
U.S. Treasury and agency securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 10,113 | 8,188 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 848 | 334 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 34 | 228 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 10,927 | 8,294 | ' |
Foreign corporate securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 4,776 | 8,111 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 396 | 485 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 11 | 79 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 5,161 | 8,517 | ' |
RMBS [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 4,799 | 4,587 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 269 | 201 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 39 | 59 | ' |
Gross Unrealized OTTI Loss | 29 | 41 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 5,000 | 4,688 | ' |
State and political subdivision securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 2,083 | 2,147 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 288 | 139 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 14 | 62 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 2,357 | 2,224 | ' |
ABS [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 1,592 | 2,081 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 27 | 32 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 8 | 12 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 1,611 | 2,101 | ' |
CMBS [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 1,320 | 1,546 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 52 | 62 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 1 | 4 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 1,371 | 1,604 | ' |
Foreign government debt securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Amortized Cost | 580 | 1,038 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 118 | 103 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 1 | 19 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | 697 | 1,122 | ' |
Equity Securities [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Cost or Amortized Cost | 378 | 397 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 77 | 49 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 7 | 28 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Equity securities | 448 | 418 | ' |
Non-redeemable preferred stock [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Cost or Amortized Cost | 224 | 236 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 13 | 9 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 7 | 28 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Equity securities | 230 | 217 | ' |
Common Stock [Member] | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' |
Cost or Amortized Cost | 154 | 161 | ' |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | 64 | 40 | ' |
Available For Sale Securities, Gross Unrealized Loss Accumulated Investments | 0 | 0 | ' |
Gross Unrealized OTTI Loss | 0 | 0 | ' |
Equity securities | $218 | $201 | ' |
Investments_Maturities_of_Fixe
Investments (Maturities of Fixed Maturity Securities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ' | ' |
Amortized Cost, Due in one year or less | $2,091 | $2,934 |
Amortized Cost, Due after one year through five years | 10,084 | 8,895 |
Amortized Cost, Due after five years through ten years | 5,727 | 7,433 |
Amortized Cost, Due after ten years | 14,153 | 16,001 |
Amortized Cost, Subtotal | 32,055 | 35,263 |
Amortized Cost, RMBS, CMBS and ABS | 7,711 | 8,214 |
Amortized Cost | 39,766 | 43,477 |
Estimated Fair Value, Due in one year or less | 2,118 | 2,966 |
Estimated Fair Value, Due after one year through five years | 10,495 | 9,301 |
Estimated Fair Value, Due after five years through ten years | 6,280 | 7,970 |
Estimated Fair Value, Due after ten years | 16,198 | 16,622 |
Estimated Fair Value, Subtotal | 35,091 | 36,859 |
Estimated fair value, Mortgage-backed and asset-backed securities | 7,982 | 8,393 |
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $39,766 and $43,477, respectively) | $43,073 | $45,252 |
Investments_Continuous_Gross_U
Investments (Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities Available-For-Sale) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Total number of securities in an unrealized loss position less than 12 months | 296 | 1,081 |
Total number of securities in an unrealized loss position equal to or greater than 12 months | 402 | 297 |
Fixed maturity securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | $2,755 | $10,584 |
Less than 12 Months Gross Unrealized Loss | 41 | 546 |
Equal to or Greater than 12 Months Estimated Fair Value | 3,488 | 1,238 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 184 | 165 |
U.S. corporate securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 394 | 2,526 |
Less than 12 Months Gross Unrealized Loss | 7 | 141 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,029 | 470 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 81 | 66 |
Foreign corporate securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 164 | 1,520 |
Less than 12 Months Gross Unrealized Loss | 6 | 70 |
Equal to or Greater than 12 Months Estimated Fair Value | 179 | 135 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 5 | 9 |
U.S. Treasury and agency securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 1,467 | 3,825 |
Less than 12 Months Gross Unrealized Loss | 2 | 228 |
Equal to or Greater than 12 Months Estimated Fair Value | 1,321 | 0 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 32 | 0 |
RMBS [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 410 | 996 |
Less than 12 Months Gross Unrealized Loss | 24 | 35 |
Equal to or Greater than 12 Months Estimated Fair Value | 662 | 457 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 44 | 65 |
State and political subdivision securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 14 | 630 |
Less than 12 Months Gross Unrealized Loss | 0 | 44 |
Equal to or Greater than 12 Months Estimated Fair Value | 139 | 64 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 14 | 18 |
ABS [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 258 | 680 |
Less than 12 Months Gross Unrealized Loss | 2 | 5 |
Equal to or Greater than 12 Months Estimated Fair Value | 96 | 104 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 6 | 7 |
CMBS [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 35 | 143 |
Less than 12 Months Gross Unrealized Loss | 0 | 4 |
Equal to or Greater than 12 Months Estimated Fair Value | 39 | 7 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1 | 0 |
Foreign government debt securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 13 | 264 |
Less than 12 Months Gross Unrealized Loss | 0 | 19 |
Equal to or Greater than 12 Months Estimated Fair Value | 23 | 1 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 1 | 0 |
Equity Securities [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 12 | 108 |
Less than 12 Months Gross Unrealized Loss | 1 | 21 |
Equal to or Greater than 12 Months Estimated Fair Value | 83 | 40 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 6 | 7 |
Common Stock [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 2 | 3 |
Less than 12 Months Gross Unrealized Loss | 0 | 0 |
Equal to or Greater than 12 Months Estimated Fair Value | 0 | 7 |
Equal to or Greater than 12 Months Gross Unrealized Loss | 0 | 0 |
Non-redeemable preferred stock [Member] | ' | ' |
Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale | ' | ' |
Less than 12 months Estimated Fair Value | 10 | 105 |
Less than 12 Months Gross Unrealized Loss | 1 | 21 |
Equal to or Greater than 12 Months Estimated Fair Value | 83 | 33 |
Equal to or Greater than 12 Months Gross Unrealized Loss | $6 | $7 |
Investments_Mortgage_Loans_by_
Investments (Mortgage Loans by Portfolio Segment) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||||
Notes, Loans and Financing Receivable, Net, Current [Abstract] | ' | ' | ' | ' | ' | ' |
Commercial mortgage loans | $4,536 | ' | $4,869 | ' | ' | ' |
Percentage of loans receivable on commercial mortgage loans | 70.90% | ' | 63.10% | ' | ' | ' |
Agricultural mortgage loans | 1,253 | ' | 1,285 | ' | ' | ' |
Percentage of loans receivable on agricultural mortgage loans | 19.60% | ' | 16.60% | ' | ' | ' |
Subtotal | 5,789 | ' | 6,154 | ' | ' | ' |
Percentage of loans receivable on subtotal | 90.50% | ' | 79.70% | ' | ' | ' |
Valuation allowances | -33 | -33 | -34 | -34 | -35 | -35 |
Percentage of loans receivable on valuation allowances | -0.50% | ' | -0.40% | ' | ' | ' |
Subtotal mortgage loans, net | 5,756 | ' | 6,120 | ' | ' | ' |
Percentage of loans receivable on subtotal mortgage loans held-for-investment, net | 90.00% | ' | 79.30% | ' | ' | ' |
Commercial mortgage loans held by consolidated securitization entities - fair value option | 638 | ' | 1,598 | ' | ' | ' |
Percentage of loans receivable on commercial mortgage loans held by consolidated securitization entities - fair value option | 10.00% | ' | 20.70% | ' | ' | ' |
Mortgage loans, at estimated fair value, relating to variable interest entities | $6,394 | ' | $7,718 | ' | ' | ' |
Percentage Of Mortgage Loans On Real Estate Commercial And Consumer Net To Mortgage Loans On Real Estate Commercial And Consumer Net | 100.00% | ' | 100.00% | ' | ' | ' |
Investments_Mortgage_Loans_and
Investments (Mortgage Loans and Valuation Allowance by Portfolio Segment) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||||||
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' |
Evaluated individually for credit losses | $72 | ' | $76 | ' | ' | ' |
Evaluated collectively for credit losses | 5,717 | ' | 6,078 | ' | ' | ' |
Total mortgage loans | 5,789 | ' | 6,154 | ' | ' | ' |
Specific credit losses | 8 | ' | 7 | ' | ' | ' |
Non-specifically identified credit losses | 25 | ' | 27 | ' | ' | ' |
Valuation allowances | 33 | 33 | 34 | 34 | 35 | 35 |
Mortgage loan, net of valuation allowance | 5,756 | ' | 6,120 | ' | ' | ' |
Commercial mortgage loans portfolio segment [Member] | ' | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' |
Evaluated individually for credit losses | 69 | ' | 72 | ' | ' | ' |
Evaluated collectively for credit losses | 4,467 | ' | 4,797 | ' | ' | ' |
Total mortgage loans | 4,536 | ' | 4,869 | ' | ' | ' |
Specific credit losses | 8 | ' | 7 | ' | ' | ' |
Non-specifically identified credit losses | 21 | ' | 23 | ' | ' | ' |
Valuation allowances | 29 | 29 | 30 | 30 | 32 | 32 |
Mortgage loan, net of valuation allowance | 4,507 | ' | 4,839 | ' | ' | ' |
Agricultural [Member] | ' | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' | ' | ' |
Evaluated individually for credit losses | 3 | ' | 4 | ' | ' | ' |
Evaluated collectively for credit losses | 1,250 | ' | 1,281 | ' | ' | ' |
Total mortgage loans | 1,253 | ' | 1,285 | ' | ' | ' |
Specific credit losses | 0 | ' | 0 | ' | ' | ' |
Non-specifically identified credit losses | 4 | ' | 4 | ' | ' | ' |
Valuation allowances | 4 | 4 | 4 | 4 | 3 | 3 |
Mortgage loan, net of valuation allowance | $1,249 | ' | $1,281 | ' | ' | ' |
Investments_Valuation_Allowanc
Investments (Valuation Allowance Rollforward by Portfolio Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Beginning Balance | $33 | $35 | $34 | $35 |
Provision/(release) | 0 | -1 | -1 | -1 |
Ending Balance | 33 | 34 | 33 | 34 |
Commercial mortgage loans portfolio segment [Member] | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Beginning Balance | 29 | 32 | 30 | 32 |
Provision/(release) | 0 | -2 | -1 | -2 |
Ending Balance | 29 | 30 | 29 | 30 |
Agricultural [Member] | ' | ' | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' | ' | ' |
Beginning Balance | 4 | 3 | 4 | 3 |
Provision/(release) | 0 | 1 | 0 | 1 |
Ending Balance | $4 | $4 | $4 | $4 |
Investments_Credit_Quality_of_
Investments (Credit Quality of Commercial Mortgage Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | $4,536 | $4,869 |
% of Total | 100.00% | 100.00% |
Estimated Fair Value | 4,894 | 5,106 |
% of Total | 100.00% | 100.00% |
Less than 65% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 4,008 | 3,986 |
% of Total | 88.40% | 81.90% |
Estimated Fair Value | 4,368 | 4,224 |
% of Total | 89.20% | 82.80% |
65% to 75% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 374 | 727 |
% of Total | 8.20% | 14.90% |
Estimated Fair Value | 382 | 736 |
% of Total | 7.80% | 14.40% |
76% to 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 92 | 93 |
% of Total | 2.00% | 1.90% |
Estimated Fair Value | 92 | 93 |
% of Total | 1.90% | 1.80% |
Greater than 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 62 | 63 |
% of Total | 1.40% | 1.30% |
Estimated Fair Value | 52 | 53 |
% of Total | 1.10% | 1.00% |
Greater than 1.20x [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 4,167 | 4,571 |
Greater than 1.20x [Member] | Less than 65% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 3,724 | 3,754 |
Greater than 1.20x [Member] | 65% to 75% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 341 | 700 |
Greater than 1.20x [Member] | 76% to 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 80 | 80 |
Greater than 1.20x [Member] | Greater than 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 22 | 37 |
1.00x - 1.20x [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 220 | 164 |
1.00x - 1.20x [Member] | Less than 65% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 149 | 125 |
1.00x - 1.20x [Member] | 65% to 75% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 33 | 0 |
1.00x - 1.20x [Member] | 76% to 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 12 | 13 |
1.00x - 1.20x [Member] | Greater than 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 26 | 26 |
Less than 1.00x [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 149 | 134 |
Less than 1.00x [Member] | Less than 65% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 135 | 107 |
Less than 1.00x [Member] | 65% to 75% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 0 | 27 |
Less than 1.00x [Member] | 76% to 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | 0 | 0 |
Less than 1.00x [Member] | Greater than 80% [Member] | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Commercial mortgage loans | $14 | $0 |
Investments_Credit_Quality_of_1
Investments (Credit Quality of Agricultural and Residential Mortgage Loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Agricultural Mortgage Loans - by Credit Quality Indicator: | ' | ' |
Recorded investment in Mortgage Loan | $1,253 | $1,285 |
% of Total | 100.00% | 100.00% |
Less than 65% [Member] | ' | ' |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ' | ' |
Recorded investment in Mortgage Loan | 1,184 | 1,215 |
% of Total | 94.50% | 94.60% |
65% to 75% [Member] | ' | ' |
Agricultural Mortgage Loans - by Credit Quality Indicator: | ' | ' |
Recorded investment in Mortgage Loan | $69 | $70 |
% of Total | 5.50% | 5.40% |
Investments_Impaired_Mortgage_
Investments (Impaired Mortgage Loans) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | $26 | ' | $26 | ' | ' | $26 | ' | ' |
Recorded investment | 25 | ' | 25 | ' | ' | 26 | ' | ' |
Valuation Allowance | 8 | ' | 8 | ' | ' | 7 | ' | ' |
Valuation allowances | 33 | 34 | 33 | 34 | 33 | 34 | 35 | 35 |
Carrying Value | 64 | ' | 64 | ' | ' | 69 | ' | ' |
Unpaid Principal Balance | 47 | ' | 47 | ' | ' | 52 | ' | ' |
Recorded Investment | 47 | ' | 47 | ' | ' | 50 | ' | ' |
Unpaid principal balance | 73 | ' | 73 | ' | ' | 78 | ' | ' |
Average Investment | 74 | 74 | 74 | 74 | ' | ' | ' | ' |
Interest Income | 1 | 1 | 1 | 2 | ' | ' | ' | ' |
Loans with a Valuation Allowance [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 17 | ' | 17 | ' | ' | 19 | ' | ' |
Commercial mortgage loans portfolio segment [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | 22 | ' | 22 | ' | ' | 22 | ' | ' |
Recorded investment | 22 | ' | 22 | ' | ' | 22 | ' | ' |
Valuation Allowance | 8 | ' | 8 | ' | ' | 7 | ' | ' |
Valuation allowances | 29 | 30 | 29 | 30 | 29 | 30 | 32 | 32 |
Carrying Value | 61 | ' | 61 | ' | ' | 65 | ' | ' |
Unpaid Principal Balance | 47 | ' | 47 | ' | ' | 52 | ' | ' |
Recorded Investment | 47 | ' | 47 | ' | ' | 50 | ' | ' |
Unpaid principal balance | 69 | ' | 69 | ' | ' | 74 | ' | ' |
Average Investment | 71 | 72 | 71 | 73 | ' | ' | ' | ' |
Interest Income | 1 | 1 | 1 | 2 | ' | ' | ' | ' |
Commercial mortgage loans portfolio segment [Member] | Loans with a Valuation Allowance [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | 14 | ' | 14 | ' | ' | 15 | ' | ' |
Agricultural [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance | 4 | ' | 4 | ' | ' | 4 | ' | ' |
Recorded investment | 3 | ' | 3 | ' | ' | 4 | ' | ' |
Valuation Allowance | 0 | ' | 0 | ' | ' | 0 | ' | ' |
Valuation allowances | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 3 |
Carrying Value | 3 | ' | 3 | ' | ' | 4 | ' | ' |
Unpaid Principal Balance | 0 | ' | 0 | ' | ' | 0 | ' | ' |
Recorded Investment | 0 | ' | 0 | ' | ' | 0 | ' | ' |
Unpaid principal balance | 4 | ' | 4 | ' | ' | 4 | ' | ' |
Average Investment | 3 | 2 | 3 | 1 | ' | ' | ' | ' |
Interest Income | 0 | 0 | 0 | 0 | ' | ' | ' | ' |
Agricultural [Member] | Loans with a Valuation Allowance [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Mortgage Loans | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Value | $3 | ' | $3 | ' | ' | $4 | ' | ' |
Investments_Net_Unrealized_Inv
Investments (Net Unrealized Investment Gains Losses) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Components of net unrealized investment gains (losses) included in accumulated other comprehensive loss | ' | ' | ' |
Fixed maturity securities that were temporarily impaired | $3,338 | $1,819 | ' |
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | -29 | -41 | -64 |
Total fixed maturity securities | 3,309 | 1,778 | ' |
Equity securities | 73 | 15 | ' |
Derivatives | 133 | 39 | ' |
Short-term investments | 0 | 1 | ' |
Other | -29 | -71 | ' |
Subtotal | 3,486 | 1,762 | ' |
Insurance liability loss recognition | -192 | 0 | ' |
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss) | -1 | -1 | ' |
DAC and VOBA | -442 | -274 | ' |
Subtotal | -635 | -275 | ' |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss) | 11 | 16 | ' |
Deferred income tax benefit (expense) | -1,014 | -591 | ' |
Net unrealized investment gains (losses) | $1,848 | $912 | ' |
Investments_Changes_in_Fixed_M
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Changes in fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss) | ' | ' |
Balance, beginning of period | ($41) | ($64) |
Noncredit OTTI losses recognized | 2 | 11 |
Securities sold with a previous noncredit OTTI loss | 4 | 21 |
Subsequent increases in estimated fair value | 6 | -9 |
Balance, end of period | -29 | -41 |
Non Credit Otti Losses On Debt Securities Recognized Net Of Dac Included In Accumulated Other Comprehensive Income (Loss) | ($2) | $7 |
Investments_Changes_in_Net_Unr
Investments (Changes in Net Unrealized Investment Gains Losses) (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Changes In Net Unrealized Investment Gains Losses Included In Accumulated Other Comprehensive Loss [Abstract] | ' |
Balance, beginning of period | $912 |
Fixed maturity securities on which noncredit OTTI losses have been recognized | 12 |
Unrealized investment gains (losses) during the year | 1,712 |
Unrealized investment gains (losses) relating to [Abstract] | ' |
Insurance liability gain (loss) recognition | -192 |
DAC and VOBA related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss) | 0 |
DAC and VOBA | -168 |
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss) | -5 |
Deferred income tax benefit (expense) | -423 |
Balance,end of period | 1,848 |
Changes in net unrealized investment gains (losses) | $936 |
Investments_Securities_Lending
Investments (Securities Lending) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Securities Financing Transaction [Line Items] | ' | ' |
Total cash collateral liability | $6,348 | $6,140 |
Security collateral on deposit from counterparties | 41 | 0 |
Reinvestment portfolio - estimated fair value | 6,405 | 6,145 |
Securities Financing Transaction, Cost [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Securities loaned | 5,749 | 5,931 |
Securities Financing Transaction, Fair Value [Member] | ' | ' |
Securities Financing Transaction [Line Items] | ' | ' |
Securities loaned | $6,262 | $5,984 |
Investments_Invested_Assets_on
Investments (Invested Assets on Deposit, Held In Trust and Pledged as Collateral) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Invested assets on deposit | $6,892 | $56 |
Invested assets pledged as collateral | 2,000 | 1,901 |
Total invested assets on deposit and pledged as collateral | $8,892 | $1,957 |
Investments_Consolidated_Varia
Investments (Consolidated Variable Interest Entities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Mortgage loans, at estimated fair value, relating to variable interest entities | $6,394 | $7,718 |
Accrued investment income relating to variable interest entities | 413 | 542 |
Liabilities | ' | ' |
Long-term debt, at estimated fair value, relating to variable interest entities | 1,289 | 2,251 |
Other liabilities relating to variable interest entities | 6,971 | 6,776 |
Consolidated securitization entities [Member] | ' | ' |
Assets: | ' | ' |
Mortgage loans, at estimated fair value, relating to variable interest entities | 638 | 1,598 |
Accrued investment income relating to variable interest entities | 4 | 9 |
Total Assets | 642 | 1,607 |
Liabilities | ' | ' |
Long-term debt, at estimated fair value, relating to variable interest entities | 499 | 1,461 |
Other liabilities relating to variable interest entities | 4 | 7 |
Total Liabilities | $503 | $1,468 |
Investments_Unconsolidated_Var
Investments (Unconsolidated Variable Interest Entities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | $10,240 | $10,562 |
Total Liabilities | 10,674 | 11,027 |
Other limited partnership interests [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | 1,699 | 1,651 |
Total Liabilities | 2,108 | 2,077 |
Real estate joint ventures [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | 40 | 41 |
Total Liabilities | 44 | 45 |
Other invested assets [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | 23 | 9 |
Total Liabilities | 44 | 44 |
Structured securities (RMBS, CMBS and ABS) [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | 7,982 | 8,393 |
Total Liabilities | 7,982 | 8,393 |
US and foreign corporate securities [Member] | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Total Assets | 496 | 468 |
Total Liabilities | $496 | $468 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | $585 | $690 | $1,265 | $1,383 |
Investment Income, Investment Expense | 24 | 28 | 48 | 56 |
Net investment income | 597 | 724 | 1,299 | 1,454 |
Securities Investment [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 609 | 718 | 1,313 | 1,439 |
Debt Securities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 468 | 524 | 960 | 1,066 |
Equity Securities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 5 | 3 | 9 | 5 |
Mortgage Loans on Real Estate [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 75 | 83 | 152 | 165 |
Policy Loans [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 15 | 14 | 29 | 28 |
Real Estate Investment [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 16 | 18 | 39 | 26 |
Partnership Interest [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 31 | 75 | 128 | 154 |
Cash and Cash Equivalents [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 0 | 1 | 1 | 3 |
International Joint Venture [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | -1 | 0 | -1 | -10 |
Other Investments [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | 0 | 0 | -4 | 2 |
Commercial Loan [Member] | Variable Interest Entity, Primary Beneficiary, Consolidated Securitization Entities [Member] | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' |
Gross Investment Income, Operating | $12 | $34 | $34 | $71 |
Investments_Components_of_Net_
Investments (Components of Net Investment Gains Losses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | ($19,000,000) | $2,000,000 | ($20,000,000) | $14,000,000 |
Fixed maturity securities - net gains (losses) on sales and disposals | 20,000,000 | 10,000,000 | 37,000,000 | 83,000,000 |
Equity securities - net gains (losses) on sales and disposals | 5 | 3,000,000 | 9,000,000 | 6,000,000 |
Net investment gains (losses) | 6,000,000 | 11,000,000 | 26,000,000 | 75,000,000 |
Other net investment gains (losses): | ' | ' | ' | ' |
Mortgage Loans | 0 | 2,000,000 | 8,000,000 | 1,000,000 |
Real estate and real estate joint ventures | 2,000,000 | 1,000,000 | 0 | 0 |
Other limited partnership interests | -2,000,000 | 1,000,000 | -4,000,000 | 1,000,000 |
Other investment portfolio gains (losses) | 2,000,000 | -1,000,000 | 3,000,000 | 1,000,000 |
Subtotal - investment portfolio gains (losses) | 8,000,000 | 14,000,000 | 33,000,000 | 78,000,000 |
FVO CSEs - changes in estimated fair value: | ' | ' | ' | ' |
Commercial mortgage loans | -16 | -23,000,000 | -15,000,000 | -36,000,000 |
Long-term debt - related to commercial mortgage loans | 17 | 28,000,000 | 18,000,000 | 50,000,000 |
Non-investment portfolio gains (losses) | -55 | -3,000,000 | -601,000,000 | -10,000,000 |
Subtotal FVO CSEs and non-investment portfolio gains (losses) | -54,000,000 | 2,000,000 | -598,000,000 | 4,000,000 |
Total net investment gains (losses) | -46,000,000 | 16,000,000 | -565,000,000 | 82,000,000 |
Fixed maturity securities [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -4,000,000 | -2,000,000 | -5,000,000 | -11,000,000 |
Net investment gains (losses) | 16,000,000 | 8,000,000 | 32,000,000 | 72,000,000 |
Transportation Domestic Corporate Debt Securities [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -2,000,000 | 0 | -2,000,000 | 0 |
Finance | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | 0 | 0 | 0 | -3,000,000 |
Consumer Domestic Corporate Debt Securities [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | 0 | 0 | -1,000,000 | 0 |
Corporate Debt Securities [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -2,000,000 | 0 | -3,000,000 | -3,000,000 |
RMBS [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -2,000,000 | -2,000,000 | -2,000,000 | -8,000,000 |
Equity Securities [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -15,000,000 | 0 | -15,000,000 | -3,000,000 |
Net investment gains (losses) | -10,000,000 | 3,000,000 | -6,000,000 | 3,000,000 |
Non-redeemable preferred stock [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -8,000,000 | 0 | -8,000,000 | -3,000,000 |
Common Stock [Member] | ' | ' | ' | ' |
Marketable Securities, Gain (Loss) [Abstract] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | ($7,000,000) | $0 | ($7,000,000) | $0 |
Investments_Sales_or_Disposals
Investments (Sales or Disposals and Impairments of Fixed Maturity and Equity Securities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ' | ' | ' | ' |
Proceeds | $3,688 | $2,792 | $7,206 | $5,397 |
Gross investment gains | 32 | 32 | 74 | 125 |
Available-for-sale Securities, Realized Losses, Excluding Other than Temporary Impairments | -7 | 19 | -28 | 36 |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -19 | 2 | -20 | 14 |
Realized Investment Gains (Losses) | 6 | 11 | 26 | 75 |
Credit-Related [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -4 | 2 | -5 | 8 |
Other Other Than Temporary Investment Losses [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -15 | 0 | -15 | 6 |
Fixed maturity securities [Member] | ' | ' | ' | ' |
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ' | ' | ' | ' |
Proceeds | 3,681 | 2,775 | 7,188 | 5,355 |
Gross investment gains | 27 | 26 | 65 | 115 |
Available-for-sale Securities, Realized Losses, Excluding Other than Temporary Impairments | -7 | -16 | -28 | -32 |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -4 | -2 | -5 | -11 |
Realized Investment Gains (Losses) | 16 | 8 | 32 | 72 |
Fixed maturity securities [Member] | Credit-Related [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -4 | -2 | -5 | -8 |
Fixed maturity securities [Member] | Other Other Than Temporary Investment Losses [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | 0 | 0 | 0 | -3 |
Equity Securities [Member] | ' | ' | ' | ' |
Components of Sales or Disposals of Fixed Maturity and Equity Securities | ' | ' | ' | ' |
Proceeds | 7 | 17 | 18 | 42 |
Gross investment gains | 5 | 6 | 9 | 10 |
Available-for-sale Securities, Realized Losses, Excluding Other than Temporary Impairments | 0 | -3 | 0 | -4 |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | -15 | 0 | -15 | -3 |
Realized Investment Gains (Losses) | -10 | 3 | -6 | 3 |
Equity Securities [Member] | Credit-Related [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | 0 | 0 | 0 | 0 |
Equity Securities [Member] | Other Other Than Temporary Investment Losses [Member] | ' | ' | ' | ' |
Total OTTI losses recognized in earnings: | ' | ' | ' | ' |
Total OTTI losses recognized in earnings | ($15) | $0 | ($15) | ($3) |
Investments_Credit_Loss_Rollfo
Investments (Credit Loss Rollforward) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | $55,000,000 | $60,000,000 | $57,000,000 | $59,000,000 |
Additions: | ' | ' | ' | ' |
Initial impairments — credit loss OTTI recognized on securities not previously impaired | 0 | 1,000,000 | 0 | 1,000,000 |
Additional impairments - credit loss OTTI recognized on securities previously impaired | 1,000,000 | 0 | 1,000,000 | 7,000,000 |
Reductions: | ' | ' | ' | ' |
Due to sales (maturities, pay downs or prepayments) during the period of securities previously credit loss OTTI impaired | -2,000,000 | -3,000,000 | -4,000,000 | -9,000,000 |
Balance, end of period | $54,000,000 | $58,000,000 | $54,000,000 | $58,000,000 |
Investments_Related_Party_Inve
Investments (Related Party Investment Transactions) (Details) (Affiliated Entity [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Affiliated Entity [Member] | ' | ' | ' | ' |
Invested Assets Transferred To and From Affiliates | ' | ' | ' | ' |
Estimated fair value of invested assets transferred to affiliates | $91 | $0 | $445 | $13 |
Amortized cost of assets transferred to affiliates | 83 | 0 | 416 | 12 |
Net investment gains (losses) recognized on transfers | 8 | 0 | 29 | 1 |
Estimated fair value of invested assets transferred from affiliates | $0 | $77 | $35 | $83 |
Investments_Fixed_Maturity_and1
Investments (Fixed Maturity and Equity Securities Available-For-Sale - Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of Certain Fixed Maturity Securities | ' | ' |
Available-for-sale Securities, Debt Securities | $43,073 | $45,252 |
Non-income producing fixed maturity securities [Member] | ' | ' |
Summary of Certain Fixed Maturity Securities | ' | ' |
Available-for-sale Securities, Debt Securities | 18 | 30 |
Available For Sale Securities Gross Unrealized Gain Accumulated Investments | $5 | $6 |
Investments_Evaluation_of_Avai
Investments (Evaluation of Available-For-Sale Securities for OTTI and Evaluating Temporarily Impaired AFS Securities - Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Equity Securities Available For Sale With Gross Unrealized Loss Of Equal To Or Greater Than Stated Percentage | 20.00% | ' |
Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | ($486) | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 225 | 711 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 184 | 165 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Change in Net Unrealized Holding Gain (Loss) before Taxes | -21 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 7 | 28 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 6 | 7 |
Non-redeemable preferred stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 6 | 7 |
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 38 | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 14 | ' |
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Debt Securities [Member] | External Credit Rating, Investment Grade [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 26 | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 10 | ' |
Percentage Of Gross Unrealized Loss | 68.00% | ' |
Twenty Percent Or More [Member] | Six Months Or Greater [Member] | Debt Securities [Member] | External Credit Rating, Non Investment Grade [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss | 12 | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 4 | ' |
Percentage Of Gross Unrealized Loss | 32.00% | ' |
Twenty Percent Or More [Member] | Twelve months or greater [Member] | Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | $4 | ' |
Twenty Percent Or More [Member] | Twelve months or greater [Member] | Non-redeemable preferred stock [Member] | Aaa Aa [Member] | Banks, Trust and Insurance, Equities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Percentage Of Gross Unrealized Loss | 50.00% | ' |
Investments_Mortgage_Loans_Nar
Investments (Mortgage Loans - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Contracts | Contracts | Contracts | Contracts | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' |
Financing Receivable, Significant Purchases | $0 | $5,000,000 | $0 | $5,000,000 | ' |
Percentage of Mortgage Loans Classified as Performing | 99.00% | ' | 99.00% | ' | 99.00% |
Number of Mortgage Loans | 0 | ' | 0 | ' | ' |
Number of Mortgage Loans, Subsequent Default | 0 | 0 | 0 | 0 | ' |
Agricultural [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' |
Estimated fair value of mortgage loans held-for-investment | 1,300,000,000 | ' | 1,300,000,000 | ' | 1,300,000,000 |
Past Due Status of Mortgage Loans | 0 | ' | 0 | ' | 0 |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | 0 | ' | 0 | ' | 0 |
Agricultural Portfolio Segment [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' |
Number of Mortgage Loans | ' | 1 | ' | 1,000,000 | ' |
Financing Receivable, Modifications, Recorded Investment | ' | 4,000,000 | ' | 4,000,000 | ' |
Financing Receivable, Modifications, Post-Modification Recorded Investment | ' | 4,000,000 | ' | 4,000,000 | ' |
Commercial Loan [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' |
Past Due Status of Mortgage Loans | 0 | ' | 0 | ' | 0 |
Loans and Leases Receivable, Number of Contract, Nonperforming, Nonaccrual of Interest | 1 | ' | 1 | ' | 1 |
Mortgage loans that were in non accrual status | $22,000,000 | ' | $22,000,000 | ' | 22,000,000 |
Investments_Cash_Equivalents_N
Investments (Cash Equivalents - Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Cash equivalents | $243 | $469 |
Investments_Changes_in_Fixed_M1
Investments (Changes in Fixed Maturity Securities with Noncredit OTTI Losses - Narrative) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Noncredit OTTI losses on fixed maturity securities, net of DAC, included in accumulated other comprehensive income (loss) | ($2) | $7 |
Investments_Concentrations_of_
Investments (Concentrations of Credit Risk - Narrative) (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Securities holdings exposure in single issuer greater than stated percentage of Company's equity | 10.00% | ' |
Investments in any counterparty that were greater than 10% of equity | $0 | $0 |
Investments_Consolidated_Varia1
Investments (Consolidated Variable Interest Entities - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' |
Financial or other support to investees designated as VIEs | ' | ' | $0 | $0 | ' |
Consolidated Securitization Entities [Member] | ' | ' | ' | ' | ' |
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' |
Variable interest, maximum exposure to loss in consolidated securitization entities | 120 | ' | 120 | ' | 120 |
Long-term debt held by consolidated securitization entities, percentage range minimum | ' | ' | 2.25% | 2.25% | ' |
Long-term debt held by consolidated securitization entities, percentage range maximum | ' | ' | 5.57% | 5.57% | ' |
Interest expense on long-term debt held by consolidated securitization entities | $12 | $32 | $30 | $66 | ' |
Investments_Net_Investment_Gai
Investments (Net Investment Gains Losses - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Non-investment portfolio gains (losses) | $2 | ($1) | $3 | $1 |
Gains (losses) from foreign currency transactions | 3 | -3 | 5 | -9 |
MetLife Assurance Limited [Member] | ' | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Non-investment portfolio gains (losses) | ($61) | ' | ($608) | ' |
Investments_Related_Party_Inve1
Investments (Related Party Invesment Transactions - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 08, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 08, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jul. 08, 2013 | |
Commercial mortgage loans portfolio segment [Member] | Commercial mortgage loans portfolio segment [Member] | Commercial mortgage loans portfolio segment [Member] | Commercial mortgage loans portfolio segment [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Maximum [Member] | Maximum [Member] | Loan Purchase Commitments [Member] | Loan Purchase Commitments [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Parent Company [Member] | Met Life Investors USA Insurance Company [Member] | Met Life Investors USA Insurance Company [Member] | Met Life Investors USA Insurance Company [Member] | Met Life Investors USA Insurance Company [Member] | |||||
Commercial mortgage loans portfolio segment [Member] | Commercial mortgage loans portfolio segment [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Other invested assets [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Loan Purchase Commitments [Member] | Loan Purchase Commitments [Member] | Exeter Reassurance Company [Member] | Exeter Reassurance Company [Member] | Loan Purchase Commitments [Member] | Loan Purchase Commitments [Member] | |||||||||||||||
Other invested assets [Member] | Other invested assets [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Other invested assets [Member] | Other invested assets [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | ||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party investment administrative services | $13,000,000 | $17,000,000 | $28,000,000 | $34,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of related party loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 363,000,000 | 364,000,000 | 430,000,000 | 430,000,000 | 500,000,000 | ' | 500,000,000 | ' | 500,000,000 | ' | ' | ' | ' | 375,000,000 | 375,000,000 | ' | ' | 125,000,000 | 125,000,000 | ' | ' |
Related party net investment income | ' | -1,000,000 | ' | -1,000,000 | 5,000,000 | 4,000,000 | 10,000,000 | 8,000,000 | 6,000,000 | 6,000,000 | 12,000,000 | 12,000,000 | ' | ' | ' | ' | 3,000,000 | 0 | 6,000,000 | 0 | ' | 1,000,000 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,200,000,000 | $1,800,000,000 | ' | ' | $925,000,000 | $1,300,000,000 | ' | ' | $313,000,000 | $438,000,000 |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Oct-15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.47% | ' | 2.47% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Primary_Risks_Deta
Derivatives (Primary Risks) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | $54,781 | $63,289 |
Estimated Fair Value Assets | 1,157 | 1,460 |
Estimated Fair Value Liabilities | 529 | 841 |
Derivatives Designated as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 1,623 | 1,884 |
Estimated Fair Value Assets | 96 | 39 |
Estimated Fair Value Liabilities | 39 | 94 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 384 | 558 |
Estimated Fair Value Assets | 14 | 5 |
Estimated Fair Value Liabilities | 3 | 23 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 384 | 436 |
Estimated Fair Value Assets | 14 | 5 |
Estimated Fair Value Liabilities | 3 | 10 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedges [Member] | Foreign currency swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 0 | 122 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 13 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 1,239 | 1,326 |
Estimated Fair Value Assets | 82 | 34 |
Estimated Fair Value Liabilities | 36 | 71 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 497 | 537 |
Estimated Fair Value Assets | 38 | 6 |
Estimated Fair Value Liabilities | 2 | 32 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Interest rate forwards [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 175 | 245 |
Estimated Fair Value Assets | 23 | 3 |
Estimated Fair Value Liabilities | 0 | 4 |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedges [Member] | Foreign currency swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 567 | 544 |
Estimated Fair Value Assets | 21 | 25 |
Estimated Fair Value Liabilities | 34 | 35 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 53,158 | 61,405 |
Estimated Fair Value Assets | 1,061 | 1,421 |
Estimated Fair Value Liabilities | 490 | 747 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 14,786 | 22,262 |
Estimated Fair Value Assets | 584 | 881 |
Estimated Fair Value Liabilities | 175 | 441 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate floors [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 17,604 | 17,604 |
Estimated Fair Value Assets | 100 | 103 |
Estimated Fair Value Liabilities | 92 | 99 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate caps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 7,901 | 9,651 |
Estimated Fair Value Assets | 14 | 36 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Interest rate futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 2,338 | 1,443 |
Estimated Fair Value Assets | 2 | 0 |
Estimated Fair Value Liabilities | 0 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 743 | 882 |
Estimated Fair Value Assets | 48 | 52 |
Estimated Fair Value Liabilities | 36 | 41 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Foreign currency forwards [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 56 | 56 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 0 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps - purchased [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 173 | 157 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 1 | 1 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Credit default swaps - written [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 2,227 | 2,243 |
Estimated Fair Value Assets | 37 | 38 |
Estimated Fair Value Liabilities | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity futures [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 908 | 778 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | 1 | 3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Equity Options [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 3,465 | 3,597 |
Estimated Fair Value Assets | 266 | 305 |
Estimated Fair Value Liabilities | 60 | 42 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Variance swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 2,510 | 2,270 |
Estimated Fair Value Assets | 10 | 6 |
Estimated Fair Value Liabilities | 109 | 94 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Total rate of return swaps [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Notional Amount | 447 | 462 |
Estimated Fair Value Assets | 0 | 0 |
Estimated Fair Value Liabilities | $16 | $22 |
Derivatives_Net_Derivative_Gai
Derivatives (Net Derivative Gains Losses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of Net Derivatives Gains (Losses) | ' | ' | ' | ' |
Derivatives and hedging gains (losses) | $85 | ($423) | $151 | ($563) |
Embedded derivatives | 101 | -72 | 215 | 181 |
Total net derivative gains (losses) | $186 | ($495) | $366 | ($382) |
Derivatives_Earned_Income_On_D
Derivatives (Earned Income On Derivatives) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total earned income | $28 | $46 | $62 | $57 |
Derivatives Designated as Hedging Instruments [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total earned income | 1 | 0 | 1 | 1 |
Derivatives Designated as Hedging Instruments [Member] | Interest Credited to Policyholder Account Balance [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total earned income | -1 | 1 | -1 | 2 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total earned income | 30 | 45 | 63 | 61 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Total earned income | ($2) | $0 | ($1) | ($7) |
Derivatives_Gains_Losses_Recog
Derivatives (Gains Losses Recognized in Income Not Designated or Qualifying) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | $4 | ($5) | $14 | ($18) |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 44 | -466 | 72 | -623 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | Interest rate [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 108 | -425 | 189 | -403 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | Foreign currency [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -6 | 1 | 0 | 16 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | Credit default swaps - written [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 3 | 0 | 1 | 7 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Derivative Gain (Loss) [Member] | Equity market [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -61 | -42 | -118 | -243 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -4 | -1 | -7 | -3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Interest rate [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Foreign currency [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Credit default swaps - written [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Net Investment Gains (Losses) [Member] | Equity market [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -4 | -1 | -7 | -3 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -6 | -26 | 1 | -58 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | Interest rate [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 10 | -15 | 22 | -13 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | Foreign currency [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | Credit default swaps - written [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 0 | 0 | 0 |
Derivatives Not Designated or Not Qualifying as Hedging Instruments [Member] | Policyholder Benefits and Claims [Member] | Equity market [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | ($16) | ($11) | ($21) | ($45) |
Derivatives_Fair_Value_Hedges_
Derivatives (Fair Value Hedges) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | $4 | ($5) | $14 | ($18) |
Net Derivatives Gains (Losses) Recognized for Hedged Items | 4 | -3 | 14 | -15 |
Ineffectiveness Recognized in Net Derivatives Gains (Losses) | 0 | -2 | 0 | -3 |
Interest rate swaps [Member] | Fixed maturity securities [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 0 | 6 | 0 | 7 |
Net Derivatives Gains (Losses) Recognized for Hedged Items | 0 | 7 | 0 | 8 |
Ineffectiveness Recognized in Net Derivatives Gains (Losses) | 0 | -1 | 0 | -1 |
Interest rate swaps [Member] | Policyholder account balances [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | 5 | -11 | 14 | -18 |
Net Derivatives Gains (Losses) Recognized for Hedged Items | 5 | -10 | 14 | -16 |
Ineffectiveness Recognized in Net Derivatives Gains (Losses) | 0 | -1 | 0 | -2 |
Foreign currency swaps [Member] | Foreign-denominated policyholder account balances [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net Derivatives Gains (Losses) Recognized for Derivatives | -1 | 0 | 0 | -7 |
Net Derivatives Gains (Losses) Recognized for Hedged Items | -1 | 0 | 0 | -7 |
Ineffectiveness Recognized in Net Derivatives Gains (Losses) | $0 | $0 | $0 | $0 |
Derivatives_Cash_Flow_Hedges_D
Derivatives (Cash Flow Hedges) (Details) (Cash Flow Hedges [Member], USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | $32 | ($76) | $96 | ($90) |
Interest rate swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 26 | -54 | 68 | -77 |
Interest rate forwards [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | 11 | -20 | 31 | -35 |
Foreign currency swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount of Gains (Losses) Deferred in Accumulated Other Comprehensive Income (Loss) on Derivatives (Effective Portion) | -5 | -2 | -3 | 22 |
Net Derivative Gain (Loss) [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 3 | 1 | 4 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | -1 | 2 | 1 | 3 |
Net Derivative Gain (Loss) [Member] | Interest rate swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | 0 | -1 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | -1 | 1 | 0 | 1 |
Net Derivative Gain (Loss) [Member] | Interest rate forwards [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 3 | 1 | 6 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 1 | 1 | 1 |
Net Derivative Gain (Loss) [Member] | Foreign currency swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | 0 | -1 |
Amount and Location of Gains (Losses) Recognized In Income (Loss) on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 0 | 1 |
Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 0 | 1 | 1 |
Net Investment Gains (Losses) [Member] | Interest rate swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 0 | 0 | 0 | 0 |
Net Investment Gains (Losses) [Member] | Interest rate forwards [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | 1 | 0 | 1 | 1 |
Net Investment Gains (Losses) [Member] | Foreign currency swaps [Member] | ' | ' | ' | ' |
Derivatives in cash flow hedging relationships | ' | ' | ' | ' |
Amount and Location of Gains (Losses) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Loss) (Effective Portion) | $0 | $0 | $0 | $0 |
Derivatives_Credit_Derivatives
Derivatives (Credit Derivatives) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | $37 | $38 |
Maximum Amount of Future Payments under Credit Default Swaps | 2,227 | 2,243 |
Weighted Average Years to Maturity | '3 years 1 month | '3 years 3 months |
Aaa/Aa/A [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 5 | 9 |
Maximum Amount of Future Payments under Credit Default Swaps | 737 | 765 |
Weighted Average Years to Maturity | '1 year | '1 year 3 months |
Aaa/Aa/A [Member] | Single name credit default swaps (corporate) [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 2 | 3 |
Maximum Amount of Future Payments under Credit Default Swaps | 135 | 115 |
Weighted Average Years to Maturity | '2 years 2 months | '2 years 8 months |
Aaa/Aa/A [Member] | Credit default swaps referencing indices [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 3 | 6 |
Maximum Amount of Future Payments under Credit Default Swaps | 602 | 650 |
Weighted Average Years to Maturity | '9 months | '1 year 1 month |
Baa [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 29 | 26 |
Maximum Amount of Future Payments under Credit Default Swaps | 1,455 | 1,442 |
Weighted Average Years to Maturity | '4 years 1 month | '4 years 3 months |
Baa [Member] | Single name credit default swaps (corporate) [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 8 | 8 |
Maximum Amount of Future Payments under Credit Default Swaps | 416 | 446 |
Weighted Average Years to Maturity | '2 years 6 months | '3 years |
Baa [Member] | Credit default swaps referencing indices [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 21 | 18 |
Maximum Amount of Future Payments under Credit Default Swaps | 1,039 | 996 |
Weighted Average Years to Maturity | '4 years 8 months | '4 years 11 months |
B [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 3 | 3 |
Maximum Amount of Future Payments under Credit Default Swaps | 35 | 36 |
Weighted Average Years to Maturity | '5 years | '5 years |
B [Member] | Single name credit default swaps (corporate) [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 0 | 0 |
Maximum Amount of Future Payments under Credit Default Swaps | 0 | 0 |
Weighted Average Years to Maturity | '0 years | '0 years |
B [Member] | Credit default swaps referencing indices [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Credit Default Swaps | 3 | 3 |
Maximum Amount of Future Payments under Credit Default Swaps | $35 | $36 |
Weighted Average Years to Maturity | '5 years | '5 years |
Derivatives_Estimated_Fair_Val
Derivatives (Estimated Fair Value of Derivative Assets and Liabilities after Master Netting Agreements and Cash Collateral) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | $1,182 | $1,500 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 544 | 866 |
Amounts offset in the consoilidated balance sheets, Assets | 0 | 0 |
Amounts offset in the consoilidated balance sheets, Liabilities | 0 | 0 |
Estimated fair value of derivative assets presented in the consolidated balance sheets | 1,182 | 1,500 |
Estimated fair value of derivative liabilities presented in the consolidated balance sheets | 544 | 866 |
Net amount of derivative assets after application of master netting agreements and cash collateral | 13 | 12 |
Net amount of derivative liabilities after application of master netting agreements and cash collateral | 3 | 21 |
Over the Counter [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 1,122 | 1,450 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 508 | 851 |
Gross estimated fair value of derivative assets | -360 | -670 |
Gross estimated fair value of derivative liabilities | -360 | -670 |
Cash collateral on derivative assets | -170 | -216 |
Cash collateral on derivative liabilities | 0 | 0 |
Securities collateral on derivative assets | -581 | -554 |
Securities collateral on derivative liabilities | -145 | -160 |
Exchange-cleared [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 58 | 50 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 35 | 9 |
Gross estimated fair value of derivative assets | -28 | -8 |
Gross estimated fair value of derivative liabilities | -28 | -8 |
Cash collateral on derivative assets | -30 | -40 |
Cash collateral on derivative liabilities | -7 | -1 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | 0 | 0 |
Exchange-traded [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset Excluding Accruals | 2 | 0 |
Derivative Liability, Fair Value, Gross Liability Excluding Accruals | 1 | 6 |
Gross estimated fair value of derivative assets | 0 | 0 |
Gross estimated fair value of derivative liabilities | 0 | 0 |
Cash collateral on derivative assets | 0 | 0 |
Cash collateral on derivative liabilities | 0 | -5 |
Securities collateral on derivative assets | 0 | 0 |
Securities collateral on derivative liabilities | ($1) | ($1) |
Derivatives_Credit_Risk_on_Fre
Derivatives (Credit Risk on Freestanding Derivatives) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Derivatives in Net Liability Position | $148 | $181 |
Fair Value Of Incremental Collateral Provided Upon A One Notch Downgrade In The Company's Credit Rating | 0 | 0 |
Fair Value Of Incremental Collateral Provided Upon A Downgrade In The Company's Credit Rating to a Level that Triggers Full Overnight Collateralization or Termination of the Derivative Position | 2 | 2 |
Fixed Maturities [Member] | ' | ' |
Credit Derivatives [Line Items] | ' | ' |
Estimated Fair Value of Collateral Provided | $152 | $161 |
Derivatives_Embedded_Derivativ
Derivatives (Embedded Derivatives) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | $1,335 | $882 |
Embedded Derivative, Fair Value of Embedded Derivative Liability | -953 | -1,211 |
Ceded Guaranteed Minimum Benefit [Member] | Premiums, reinsurance and other receivables [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 1,373 | 912 |
Direct Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | -1,210 | -1,232 |
Assumed Guaranteed Minimum Benefit [Member] | Policyholder account balances [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | -12 | -13 |
Funds withheld on ceded reinsurance [Member] | Other liabilities [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 254 | 34 |
Other Embedded Derivatives [Member] | Policyholder account balances [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 15 | 0 |
Options embedded in debt or equity securities [Member] | Investments [Member] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative, Net [Abstract] | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | ($38) | ($30) |
Derivatives_Changes_in_Estimat
Derivatives (Changes in Estimated Fair Value Related to Embedded Derivatives) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net derivatives gains (losses) | $101 | ($72) | $215 | $181 |
Net derivatives gains (losses) [Member] | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' |
Net derivatives gains (losses) | $101 | ($72) | $215 | $181 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | $1,157 | ' | $1,157 | ' | $1,460 |
Derivative Liability, Fair Value, Gross Liability | 529 | ' | 529 | ' | 841 |
Maximum Amount of Future Payments under Credit Default Swaps | 2,227 | ' | 2,227 | ' | 2,243 |
Estimated Fair Value of Credit Default Swaps | 37 | ' | 37 | ' | 38 |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | ' | ' | -1 | ' | ' |
Embedded derivatives | 101 | -72 | 215 | 181 | ' |
Derivative Instrument Detail [Abstract] | ' | ' | ' | ' | ' |
Net amounts reclassified into net derivatives gains (losses) on discontinued cash flow hedges | 0 | 0 | 0 | 0 | ' |
Hedging exposure to variability in future cash flows for specific length of time | ' | ' | '5 years | ' | '6 years |
Accumulated Other Comprehensive Income (Loss) | 133 | ' | 133 | ' | 39 |
Cash collateral on derivative assets | 6 | ' | 6 | ' | 21 |
Cash collateral on derivative liabilities | 24 | ' | 24 | ' | 19 |
Securities collateral received which the company is permitted to sell or repledge, amount that has been sold or repledged | 0 | ' | 0 | ' | ' |
Over the Counter [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Excess securities collateral received on derivatives | 18 | ' | 18 | ' | 34 |
Excess securities collateral provided on derivatives | 7 | ' | 7 | ' | 1 |
Exchange Cleared [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Excess securities collateral provided on derivatives | 29 | ' | 29 | ' | 29 |
Exchange Traded [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Excess securities collateral provided on derivatives | 55 | ' | 55 | ' | 46 |
Nonperformance Risk [Member] | Direct and assumed guaranteed minimum benefit [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Embedded derivatives | 2 | -38 | 7 | -127 | ' |
Nonperformance Risk [Member] | Ceded Guaranteed Minimum Benefit [Member] | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' |
Embedded derivatives | 15 | 41 | -4 | 159 | ' |
Accrued Liabilities [Member] | ' | ' | ' | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 25 | ' | 25 | ' | 40 |
Derivative Liability, Fair Value, Gross Liability | $15 | ' | $15 | ' | $25 |
Fair_Value_Recurring_Fair_Valu
Fair Value (Recurring Fair Value Measurements) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | $43,073 | $45,252 |
Available-for-sale Securities, Equity Securities | 448 | 418 |
Short-term investments | 1,301 | 2,107 |
Mortgage Loans on Real Estate | 6,394 | 7,718 |
Derivative assets | 1,157 | 1,460 |
Net embedded derivatives within asset host contracts | 1,335 | 882 |
Separate account assets | 100,133 | 97,780 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 529 | 841 |
Net embedded derivatives within liability host contracts | -953 | -1,211 |
Long-term Debt | 1,289 | 2,251 |
Consolidated Securitization Entities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Mortgage Loans on Real Estate | 638 | 1,598 |
Liabilities [Abstract] | ' | ' |
Long-term Debt | 499 | 1,461 |
Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 43,073 | 45,252 |
Available-for-sale Securities, Equity Securities | 448 | 418 |
FVO Securities | 0 | 9 |
Short-term investments | 1,184 | 2,062 |
Derivative assets | 1,157 | 1,460 |
Total other invested assets | 1,157 | 1,469 |
Net embedded derivatives within asset host contracts | 1,373 | 912 |
Separate account assets | 100,133 | 97,780 |
Total assets | 148,006 | 149,491 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 529 | 841 |
Net embedded derivatives within liability host contracts | -953 | -1,211 |
Total liabilities | 75 | 1,091 |
Recurring [Member] | Consolidated Securitization Entities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Mortgage Loans on Real Estate | 638 | 1,598 |
Liabilities [Abstract] | ' | ' |
Long-term Debt | 499 | 1,461 |
Recurring [Member] | Interest rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 775 | 1,034 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 272 | 589 |
Recurring [Member] | Foreign currency exchange rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 69 | 77 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 70 | 90 |
Recurring [Member] | Credit contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 37 | 38 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 1 | 1 |
Recurring [Member] | Equity market contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 276 | 311 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 186 | 161 |
Recurring [Member] | U.S. corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 15,949 | 16,702 |
Recurring [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 10,927 | 8,294 |
Recurring [Member] | Foreign corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 5,161 | 8,517 |
Recurring [Member] | RMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 5,000 | 4,688 |
Recurring [Member] | ABS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 1,611 | 2,101 |
Recurring [Member] | State and political subdivision securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 2,357 | 2,224 |
Recurring [Member] | CMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 1,371 | 1,604 |
Recurring [Member] | Foreign government debt securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 697 | 1,122 |
Recurring [Member] | Non-redeemable preferred stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 230 | 217 |
Recurring [Member] | Common Stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 218 | 201 |
Recurring [Member] | Level 1 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 6,260 | 4,365 |
Available-for-sale Securities, Equity Securities | 100 | 86 |
FVO Securities | 0 | 0 |
Short-term investments | 251 | 391 |
Derivative assets | 2 | 0 |
Total other invested assets | 2 | 0 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 262 | 259 |
Total assets | 6,875 | 5,101 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 1 | 6 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 1 | 6 |
Recurring [Member] | Level 1 [Member] | Consolidated Securitization Entities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Mortgage Loans on Real Estate | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Long-term Debt | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Interest rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 2 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 3 |
Recurring [Member] | Level 1 [Member] | Foreign currency exchange rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Credit contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Equity market contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 1 | 3 |
Recurring [Member] | Level 1 [Member] | U.S. corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 6,260 | 4,365 |
Recurring [Member] | Level 1 [Member] | Foreign corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | RMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | ABS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | State and political subdivision securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | CMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Foreign government debt securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Non-redeemable preferred stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Common Stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 100 | 86 |
Recurring [Member] | Level 2 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 33,876 | 37,992 |
Available-for-sale Securities, Equity Securities | 250 | 220 |
FVO Securities | 0 | 9 |
Short-term investments | 933 | 1,671 |
Derivative assets | 1,119 | 1,425 |
Total other invested assets | 1,119 | 1,434 |
Net embedded derivatives within asset host contracts | 0 | 0 |
Separate account assets | 99,710 | 97,368 |
Total assets | 136,526 | 140,283 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 419 | 729 |
Net embedded derivatives within liability host contracts | 0 | 0 |
Total liabilities | 918 | 2,190 |
Recurring [Member] | Level 2 [Member] | Consolidated Securitization Entities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Mortgage Loans on Real Estate | 638 | 1,598 |
Liabilities [Abstract] | ' | ' |
Long-term Debt | 499 | 1,461 |
Recurring [Member] | Level 2 [Member] | Interest rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 750 | 1,011 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 272 | 574 |
Recurring [Member] | Level 2 [Member] | Foreign currency exchange rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 69 | 77 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 70 | 90 |
Recurring [Member] | Level 2 [Member] | Credit contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 34 | 32 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 1 | 1 |
Recurring [Member] | Level 2 [Member] | Equity market contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 266 | 305 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 76 | 64 |
Recurring [Member] | Level 2 [Member] | U.S. corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 14,535 | 15,454 |
Recurring [Member] | Level 2 [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 4,667 | 3,929 |
Recurring [Member] | Level 2 [Member] | Foreign corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 4,472 | 7,783 |
Recurring [Member] | Level 2 [Member] | RMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 4,471 | 4,266 |
Recurring [Member] | Level 2 [Member] | ABS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 1,393 | 1,682 |
Recurring [Member] | Level 2 [Member] | State and political subdivision securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 2,355 | 2,224 |
Recurring [Member] | Level 2 [Member] | CMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 1,286 | 1,532 |
Recurring [Member] | Level 2 [Member] | Foreign government debt securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 697 | 1,122 |
Recurring [Member] | Level 2 [Member] | Non-redeemable preferred stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 168 | 136 |
Recurring [Member] | Level 2 [Member] | Common Stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 82 | 84 |
Recurring [Member] | Level 3 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 2,937 | 2,895 |
Available-for-sale Securities, Equity Securities | 98 | 112 |
FVO Securities | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative assets | 36 | 35 |
Total other invested assets | 36 | 35 |
Net embedded derivatives within asset host contracts | 1,373 | 912 |
Separate account assets | 161 | 153 |
Total assets | 4,605 | 4,107 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 109 | 106 |
Net embedded derivatives within liability host contracts | -953 | -1,211 |
Total liabilities | -844 | -1,105 |
Recurring [Member] | Level 3 [Member] | Consolidated Securitization Entities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Mortgage Loans on Real Estate | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Long-term Debt | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Interest rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 23 | 23 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 12 |
Recurring [Member] | Level 3 [Member] | Foreign currency exchange rate contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Credit contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 3 | 6 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Equity market contracts [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Derivative assets | 10 | 6 |
Liabilities [Abstract] | ' | ' |
Derivative liabilities | 109 | 94 |
Recurring [Member] | Level 3 [Member] | U.S. corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 1,414 | 1,248 |
Recurring [Member] | Level 3 [Member] | U.S. Treasury and agency securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Foreign corporate securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 689 | 734 |
Recurring [Member] | Level 3 [Member] | RMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 529 | 422 |
Recurring [Member] | Level 3 [Member] | ABS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 218 | 419 |
Recurring [Member] | Level 3 [Member] | State and political subdivision securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 2 | 0 |
Recurring [Member] | Level 3 [Member] | CMBS [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 85 | 72 |
Recurring [Member] | Level 3 [Member] | Foreign government debt securities [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Debt Securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Non-redeemable preferred stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | 62 | 81 |
Recurring [Member] | Level 3 [Member] | Common Stock [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Available-for-sale Securities, Equity Securities | $36 | $31 |
Fair_Value_Quantitative_Inform
Fair Value (Quantitative Information) (Details) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Interest rate contracts [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Swap yield | 3.53% | 2.48% |
Interest rate contracts [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Swap yield | 3.53% | 4.50% |
Credit contracts [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 0.99% | 0.98% |
Credit contracts [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 1.00% | 1.00% |
Equity market contracts [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Volatility | 13.00% | 17.00% |
Equity market contracts [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Volatility | 22.00% | 28.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Durations 1-10 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Lapse Rate, Low End | 0.50% | 0.50% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Durations 11-20 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Lapse Rate, Low End | 3.00% | 3.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Durations 21-116 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Lapse Rate, Low End | 3.00% | 3.00% |
Lapse Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Ages 0-40 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality Rate, Low End | 0.00% | 0.00% |
Mortality Rate, High End | 0.10% | 0.10% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Ages 41-60 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality Rate, Low End | 0.04% | 0.04% |
Mortality Rate, High End | 0.65% | 0.65% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Income Approach Valuation Technique [Member] | Ages 61-115 [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Mortality Rate, Low End | 0.26% | 0.26% |
Mortality Rate, High End | 100.00% | 100.00% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Minimum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Utilization rates | 20.00% | 20.00% |
Withdrawal rates | 0.07% | 0.07% |
Long-term equity volatilities | 17.40% | 17.40% |
Nonperformance risk spread | 0.03% | 0.03% |
Embedded derivatives direct and ceded guaranteed minimum benefits [Member] | Maximum [Member] | Income Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Utilization rates | 50.00% | 50.00% |
Withdrawal rates | 10.00% | 10.00% |
Long-term equity volatilities | 25.00% | 25.00% |
Nonperformance risk spread | 1.31% | 0.44% |
U.S. corporate and foreign corporate securities [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Delta spread adjustments | 0.10% | -0.10% |
Illiquidity premium | 0.30% | 0.30% |
Credit spreads | -1.14% | -1.12% |
Matrix Pricing - Offered quotes | 100 | 99 |
Offered quotes | 68 | 33 |
Quoted prices | 0 | ' |
U.S. corporate and foreign corporate securities [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Delta spread adjustments | 1.25% | 2.40% |
Illiquidity premium | 0.30% | 0.30% |
Credit spreads | 5.39% | 5.38% |
Matrix Pricing - Offered quotes | 100 | 100 |
Offered quotes | 700 | 103 |
Quoted prices | 705 | ' |
U.S. corporate and foreign corporate securities [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Delta spread adjustments | 0.31% | 0.51% |
Illiquidity premium | 0.30% | 0.30% |
Credit spreads | 2.58% | 2.08% |
Matrix Pricing - Offered quotes | 100 | 100 |
Offered quotes | 400 | 87 |
Quoted prices | 133 | ' |
RMBS [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 2.20% | -0.96% |
Offered quotes | 1 | 78 |
Quoted prices | 91 | 10 |
RMBS [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 5.82% | 24.06% |
Offered quotes | 107 | 100 |
Quoted prices | 103 | 100 |
RMBS [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 3.42% | 2.95% |
Offered quotes | 92 | 95 |
Quoted prices | 96 | 95 |
CMBS [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | -0.89% | 3.41% |
Offered quotes | 100 | 101 |
Quoted prices | 1 | 97 |
CMBS [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 0.95% | 18.79% |
Offered quotes | 100 | 101 |
Quoted prices | 104 | 104 |
CMBS [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | -0.33% | 7.46% |
Offered quotes | 100 | 101 |
Quoted prices | 102 | 101 |
ABS [Member] | Minimum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 1.11% | 0.30% |
Offered quotes | 62 | 58 |
Quoted prices | 97 | 0 |
ABS [Member] | Maximum [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 9.14% | 8.75% |
Offered quotes | 106 | 106 |
Quoted prices | 100 | 104 |
ABS [Member] | Weighted Average [Member] | Market Approach Valuation Technique [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Credit spreads | 3.58% | 3.19% |
Offered quotes | 99 | 98 |
Quoted prices | 100 | 101 |
Fair_Value_Unobservable_Input_
Fair Value (Unobservable Input Reconciliation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest rate contracts [Member] | ' | ' | ' | ' |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | $38 | $106 | $11 | $119 |
Other Comprehensive Income (Loss) | 11 | -20 | 31 | -35 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | -35 | -12 | -36 | -15 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | -1 | 0 | -1 |
Balance, End of Period | 23 | 47 | 23 | 47 |
Interest rate contracts [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Interest rate contracts [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Interest rate contracts [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -22 | 0 | -18 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 9 | -26 | 17 | -21 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | -22 | 0 | -18 |
Credit contracts [Member] | ' | ' | ' | ' |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 4 | 8 | 6 | 10 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, End of Period | 3 | 6 | 3 | 6 |
Credit contracts [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Credit contracts [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Credit contracts [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | -2 | -3 | -4 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | -1 | -2 | -3 | -4 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | -2 | -3 | -4 |
Equity market contracts [Member] | ' | ' | ' | ' |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | -95 | -86 | -88 | -51 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | -8 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, End of Period | -99 | -84 | -99 | -84 |
Equity market contracts [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Equity market contracts [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Equity market contracts [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -4 | 3 | -11 | -25 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | -4 | 2 | -11 | -25 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -4 | 3 | -11 | -25 |
Net Embedded Derivatives [Member] | ' | ' | ' | ' |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 2,237 | 2,550 | 2,123 | 2,290 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | -18 | -16 | -22 | -10 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, End of Period | 2,326 | 2,453 | 2,326 | 2,453 |
Net Embedded Derivatives [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Net Embedded Derivatives [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Net Embedded Derivatives [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 121 | -74 | 247 | 186 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 107 | -81 | 225 | 173 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 121 | -74 | 247 | 186 |
U.S. corporate securities [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 1,400 | 1,267 | 1,248 | 1,434 |
Other Comprehensive Income (Loss) | 17 | -40 | 45 | -13 |
Purchases | 31 | 111 | 61 | 139 |
Sales | -22 | -75 | -63 | -126 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 15 | 8 | 164 | 56 |
Transfers out of Level 3 | -29 | -102 | -43 | -323 |
Balance, End of Period | 1,414 | 1,169 | 1,414 | 1,169 |
U.S. corporate securities [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 2 | 3 | 3 | 5 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 2 | 3 | 3 | 5 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 2 | 3 | 3 | 5 |
U.S. corporate securities [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | -3 | -1 | -3 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | -2 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | -2 | 0 |
U.S. corporate securities [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Foreign corporate securities [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 723 | 786 | 734 | 868 |
Other Comprehensive Income (Loss) | 14 | -29 | 30 | -23 |
Purchases | 9 | 69 | 10 | 87 |
Sales | -48 | -25 | -52 | -65 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 23 | 0 | 22 |
Transfers out of Level 3 | -8 | -10 | -31 | -73 |
Balance, End of Period | 689 | 813 | 689 | 813 |
Foreign corporate securities [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 1 | 0 | 1 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Foreign corporate securities [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | -2 | -1 | -3 | -3 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -2 | 0 | -2 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -2 | 0 | -2 | 0 |
Foreign corporate securities [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
RMBS [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 535 | 314 | 422 | 278 |
Other Comprehensive Income (Loss) | 7 | 0 | 9 | 8 |
Purchases | 63 | 86 | 144 | 85 |
Sales | -15 | -51 | -47 | -27 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 3 | 14 | 12 |
Transfers out of Level 3 | -62 | 0 | -18 | -4 |
Balance, End of Period | 529 | 352 | 529 | 352 |
RMBS [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 1 | 0 | 2 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1 | 0 | 2 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 1 | 0 | 2 | 0 |
RMBS [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 3 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
RMBS [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
ABS [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 185 | 420 | 419 | 343 |
Other Comprehensive Income (Loss) | -3 | -1 | 0 | -1 |
Purchases | 49 | 61 | 74 | 124 |
Sales | -27 | -42 | -81 | -16 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 38 | 0 | 22 | 0 |
Transfers out of Level 3 | -24 | -15 | -217 | -28 |
Balance, End of Period | 218 | 423 | 218 | 423 |
ABS [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 1 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 1 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 1 |
ABS [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 1 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
ABS [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
State and political subdivision securities [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 0 | 25 | 0 | 25 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 2 | 0 | 2 | 0 |
Transfers out of Level 3 | 0 | -19 | 0 | -19 |
Balance, End of Period | 2 | 6 | 2 | 6 |
State and political subdivision securities [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
State and political subdivision securities [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
State and political subdivision securities [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
CMBS [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 102 | 106 | 72 | 125 |
Other Comprehensive Income (Loss) | 0 | 0 | 1 | 2 |
Purchases | 2 | 4 | 18 | 6 |
Sales | -4 | -40 | -5 | -53 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | -15 | -5 | -1 | -14 |
Balance, End of Period | 85 | 66 | 85 | 66 |
CMBS [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
CMBS [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 1 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
CMBS [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Foreign government debt securities [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 0 | 2 | 0 | 3 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | -1 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, End of Period | 0 | 2 | 0 | 2 |
Foreign government debt securities [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Foreign government debt securities [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Foreign government debt securities [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Non-redeemable preferred stock [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 89 | 79 | 81 | 93 |
Other Comprehensive Income (Loss) | 6 | 2 | 4 | 6 |
Purchases | 0 | 0 | 0 | 1 |
Sales | 0 | 0 | 0 | -18 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | -33 | 0 | -22 | 0 |
Balance, End of Period | 62 | 81 | 62 | 81 |
Non-redeemable preferred stock [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Non-redeemable preferred stock [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | -1 | -1 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | 0 | -1 | -2 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | -1 | 0 | -1 | -2 |
Non-redeemable preferred stock [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Common Stock [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 33 | 26 | 31 | 26 |
Other Comprehensive Income (Loss) | 3 | 1 | 8 | 2 |
Purchases | 0 | 3 | 0 | 2 |
Sales | 0 | 0 | -6 | 0 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 6 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance, End of Period | 36 | 30 | 36 | 30 |
Common Stock [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Common Stock [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | -3 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Common Stock [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Short-term investments [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 91 | 396 | 0 | 13 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 0 | 2 | 0 | 2 |
Sales | -47 | -366 | 0 | -13 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | -44 | -30 | 0 | 0 |
Balance, End of Period | 0 | 2 | 0 | 2 |
Short-term investments [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Short-term investments [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Short-term investments [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Separate account assets [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance, Beginning of Period | 160 | 139 | 153 | 141 |
Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 |
Purchases | 6 | 2 | 8 | 2 |
Sales | -4 | -2 | -5 | -3 |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into Level 3 | 0 | 1 | 0 | 0 |
Transfers out of Level 3 | -1 | 0 | 0 | 0 |
Balance, End of Period | 161 | 140 | 161 | 140 |
Separate account assets [Member] | Net Investment Income [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Separate account assets [Member] | Net Investment Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 5 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Separate account assets [Member] | Net Derivative Gains (Losses) [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Net Income (Loss) | 0 | 0 | 0 | 0 |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | 0 | 0 | 0 | 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ' | ' | ' | ' |
Changes in Unrealized Gains (Losses) Included in Net Income (Loss) | $0 | $0 | $0 | $0 |
Fair_Value_Fair_Value_Option_f
Fair Value (Fair Value Option for Certain Assets and Liabilities) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Carrying value at estimated fair value | $6,394 | $7,718 |
Carrying value at estimated fair value | 1,289 | 2,251 |
Consolidated Securitization Entities [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Unpaid principal balance | 582 | 1,528 |
Difference between estimated fair value and unpaid principal balance | 56 | 70 |
Carrying value at estimated fair value | 638 | 1,598 |
Contractual principal balance | 493 | 1,436 |
Difference between estimated fair value and contractual principal balance | 6 | 25 |
Carrying value at estimated fair value | $499 | $1,461 |
Fair_Value_Nonrecurring_Fair_V
Fair Value (Nonrecurring Fair Value Measurements) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Level 3 [Member] | Mortgage loans, net [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Carrying Value After Measurement | $17 | $19 | $17 | $19 |
Level 3 [Member] | Other limited partnership interests [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Carrying Value After Measurement | 6 | 4 | 6 | 4 |
Level 3 [Member] | Real Estate Joint Ventures [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Carrying Value After Measurement | 0 | 1 | 0 | 1 |
Nonrecurring [Member] | Mortgage loans, net [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gains (Losses) | -1 | -3 | -1 | -3 |
Nonrecurring [Member] | Other limited partnership interests [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gains (Losses) | -1 | -5 | -4 | -5 |
Nonrecurring [Member] | Real Estate Joint Ventures [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gains (Losses) | $0 | $0 | $0 | ($1) |
Fair_Value_Financial_Instrumen
Fair Value (Financial Instruments Carried at Other Than Fair Value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Policy loans | $1,207 | $1,219 |
Liabilities | ' | ' |
Separate account liabilities | 100,133 | 97,780 |
Estimated Fair Value [Member] | ' | ' |
Assets | ' | ' |
Mortgage loans | 6,191 | 6,427 |
Policy loans | 1,275 | 1,279 |
Real estate joint ventures | 105 | 98 |
Other Limited Partnership Interests | 92 | 89 |
Other invested assets | 1,010 | 995 |
Premiums, reinsurance and other receivables | 7,139 | 6,306 |
Liabilities | ' | ' |
Policyholder account balances | 20,130 | 21,987 |
Long-term Debt | 1,108 | 1,009 |
Other Liabilities | 364 | 258 |
Separate account liabilities | 1,471 | 1,448 |
Estimated Fair Value [Member] | Level 1 [Member] | ' | ' |
Assets | ' | ' |
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Real estate joint ventures | 0 | 0 |
Other Limited Partnership Interests | 0 | 0 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 0 | 0 |
Liabilities | ' | ' |
Policyholder account balances | 0 | 0 |
Long-term Debt | 0 | 0 |
Other Liabilities | 0 | 0 |
Separate account liabilities | 0 | 0 |
Estimated Fair Value [Member] | Level 2 [Member] | ' | ' |
Assets | ' | ' |
Mortgage loans | 0 | 0 |
Policy loans | 866 | 872 |
Real estate joint ventures | 0 | 0 |
Other Limited Partnership Interests | 0 | 0 |
Other invested assets | 1,010 | 995 |
Premiums, reinsurance and other receivables | 107 | 24 |
Liabilities | ' | ' |
Policyholder account balances | 0 | 0 |
Long-term Debt | 1,108 | 1,009 |
Other Liabilities | 197 | 96 |
Separate account liabilities | 1,471 | 1,448 |
Estimated Fair Value [Member] | Level 3 [Member] | ' | ' |
Assets | ' | ' |
Mortgage loans | 6,191 | 6,427 |
Policy loans | 409 | 407 |
Real estate joint ventures | 105 | 98 |
Other Limited Partnership Interests | 92 | 89 |
Other invested assets | 0 | 0 |
Premiums, reinsurance and other receivables | 7,032 | 6,282 |
Liabilities | ' | ' |
Policyholder account balances | 20,130 | 21,987 |
Long-term Debt | 0 | 0 |
Other Liabilities | 167 | 162 |
Separate account liabilities | 0 | 0 |
Carrying Value [Member] | ' | ' |
Assets | ' | ' |
Mortgage loans | 5,756 | 6,120 |
Policy loans | 1,207 | 1,219 |
Real estate joint ventures | 52 | 55 |
Other Limited Partnership Interests | 71 | 78 |
Other invested assets | 931 | 931 |
Premiums, reinsurance and other receivables | 6,462 | 5,928 |
Liabilities | ' | ' |
Policyholder account balances | 18,891 | 20,875 |
Long-term Debt | 790 | 790 |
Other Liabilities | 364 | 258 |
Separate account liabilities | $1,471 | $1,448 |
Fair_Value_Recurring_Fair_Valu1
Fair Value (Recurring Fair Value Measurements) (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
In Millions, unless otherwise specified | Net Embedded Derivatives [Member] | Net Embedded Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Available-for-sale Securities, Equity Securities | $448 | $418 | ($38) | ($30) |
Fair_Value_Nonrecurring_Fair_V1
Fair Value (Nonrecurring Fair Value Measurements) (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Private Equity And Debt Funds [Member] | Minimum [Member] | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Liquidation period | '2 years |
Private Equity And Debt Funds [Member] | Maximum [Member] | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Liquidation period | '10 years |
Real Estate Funds [Member] | Minimum [Member] | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Liquidation period | '1 year |
Real Estate Funds [Member] | Maximum [Member] | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Liquidation period | '10 years |
Goodwill_Goodwill_Narrative_De
Goodwill Goodwill (Narrative) (Details) (MetLife Assurance Limited [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Goodwill [Line Items] | ' |
Goodwill Disposition | $112 |
Corporate Benefit Funding [Member] | ' |
Goodwill [Line Items] | ' |
Goodwill Disposition | $112 |
Equity_Components_of_Accumulat
Equity (Components of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | $1,555 | $1,986 | $889 | $2,400 |
OCI before reclassifications | 723 | -1,051 | 1,754 | -1,636 |
Deferred income tax expense (benefit) | -177 | 349 | -523 | 562 |
OCI before reclassifications, net of income tax | 2,101 | 1,284 | 2,120 | 1,326 |
Amounts reclassified from AOCI | -22 | -16 | -50 | -85 |
Deferred income tax expense (benefit) | 6 | 4 | 15 | 31 |
Amounts reclassified from AOCI, net of income tax | -16 | -12 | -35 | -54 |
Balance, end of period | 1,851 | 1,272 | 1,851 | 1,272 |
MetLife Assurance Limited [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified from AOCI | -314 | ' | -314 | ' |
Deferred income tax expense (benefit) | 80 | ' | 80 | ' |
Amounts reclassified from AOCI, net of income tax | -234 | ' | -234 | ' |
Unrealized Investment Gains (Losses), Net of Related Offsets [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | 1,503 | 1,944 | 885 | 2,291 |
OCI before reclassifications | 678 | -971 | 1,638 | -1,487 |
Deferred income tax expense (benefit) | -166 | 323 | -489 | 532 |
OCI before reclassifications, net of income tax | 2,015 | 1,296 | 2,034 | 1,336 |
Amounts reclassified from AOCI | -20 | -13 | -48 | -80 |
Deferred income tax expense (benefit) | 6 | 2 | 15 | 29 |
Amounts reclassified from AOCI, net of income tax | -14 | -11 | -33 | -51 |
Balance, end of period | 1,761 | 1,285 | 1,761 | 1,285 |
Unrealized Investment Gains (Losses), Net of Related Offsets [Member] | MetLife Assurance Limited [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified from AOCI | -320 | ' | -320 | ' |
Deferred income tax expense (benefit) | 80 | ' | 80 | ' |
Amounts reclassified from AOCI, net of income tax | -240 | ' | -240 | ' |
Unrealized Gains(Losses) on Derivatives [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | 69 | 147 | 27 | 158 |
OCI before reclassifications | 32 | -76 | 96 | -90 |
Deferred income tax expense (benefit) | -12 | 25 | -34 | 30 |
OCI before reclassifications, net of income tax | 89 | 96 | 89 | 98 |
Amounts reclassified from AOCI | -2 | -3 | -2 | -5 |
Deferred income tax expense (benefit) | 0 | 2 | 0 | 2 |
Amounts reclassified from AOCI, net of income tax | -2 | -1 | -2 | -3 |
Balance, end of period | 87 | 95 | 87 | 95 |
Unrealized Gains(Losses) on Derivatives [Member] | MetLife Assurance Limited [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified from AOCI | 0 | ' | 0 | ' |
Deferred income tax expense (benefit) | 0 | ' | 0 | ' |
Amounts reclassified from AOCI, net of income tax | 0 | ' | 0 | ' |
Foreign Currency Translation Adjustments[Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Balance, beginning of period | -17 | -105 | -23 | -49 |
OCI before reclassifications | 13 | -4 | 20 | -59 |
Deferred income tax expense (benefit) | 1 | 1 | 0 | 0 |
OCI before reclassifications, net of income tax | -3 | -108 | -3 | -108 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Deferred income tax expense (benefit) | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI, net of income tax | 0 | 0 | 0 | 0 |
Balance, end of period | 3 | -108 | 3 | -108 |
Foreign Currency Translation Adjustments[Member] | MetLife Assurance Limited [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Amounts reclassified from AOCI | 6 | ' | 6 | ' |
Deferred income tax expense (benefit) | 0 | ' | 0 | ' |
Amounts reclassified from AOCI, net of income tax | $6 | ' | $6 | ' |
Equity_Reclassifications_Out_o
Equity (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net investment gains (losses) | ($46,000,000) | $16,000,000 | ($565,000,000) | $82,000,000 |
Net derivative gains (losses) | 186,000,000 | -495,000,000 | 366,000,000 | -382,000,000 |
Net investment income | 597,000,000 | 724,000,000 | 1,299,000,000 | 1,454,000,000 |
Income (loss) before provision for income tax | 343,000,000 | 67,000,000 | 200,000,000 | 762,000,000 |
Provision for income tax expense (benefit) | -99,000,000 | -6,000,000 | -50,000,000 | -236,000,000 |
Net income (loss) | 244,000,000 | 61,000,000 | 150,000,000 | 526,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net income (loss) | 16,000,000 | 12,000,000 | 35,000,000 | 54,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Investment Gains (Losses), Net of Related Offsets [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net investment gains (losses) | 9,000,000 | 9,000,000 | 29,000,000 | 80,000,000 |
Net derivative gains (losses) | 2,000,000 | 0 | 4,000,000 | 0 |
Net investment income | 10,000,000 | 3,000,000 | 16,000,000 | 6,000,000 |
Income (loss) before provision for income tax | 20,000,000 | 13,000,000 | 48,000,000 | 80,000,000 |
Provision for income tax expense (benefit) | -6,000,000 | -2,000,000 | -15,000,000 | -29,000,000 |
Net income (loss) | 14,000,000 | 11,000,000 | 33,000,000 | 51,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Other-than-Temporary Impairment [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net investment gains (losses) | -1,000,000 | 1,000,000 | -1,000,000 | -6,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income (loss) before provision for income tax | 2,000,000 | 3,000,000 | 2,000,000 | 5,000,000 |
Provision for income tax expense (benefit) | 0 | -2,000,000 | 0 | -2,000,000 |
Net income (loss) | 2,000,000 | 1,000,000 | 2,000,000 | 3,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives [Member] | Interest Rate Swaps [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net derivative gains (losses) | 0 | 0 | 0 | -1,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives [Member] | Interest Rate Forwards [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net derivative gains (losses) | 1,000,000 | 3,000,000 | 1,000,000 | 6,000,000 |
Net investment income | 1,000,000 | 0 | 1,000,000 | 1,000,000 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Derivatives [Member] | Foreign Currency Swaps [Member] | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net derivative gains (losses) | $0 | $0 | $0 | ($1,000,000) |
Other_Expenses_Other_Expenses_
Other Expenses (Other Expenses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Compensation | $79 | $82 | $158 | $171 |
Commissions | 131 | 170 | 261 | 363 |
Volume-related costs | 45 | 22 | 83 | 40 |
Affiliated interest costs on ceded reinsurance | 81 | 40 | 147 | 98 |
Capitalization of DAC | -86 | -133 | -160 | -287 |
Amortization of DAC and VOBA | 213 | 4 | 529 | 30 |
Interest expense on debt | 28 | 49 | 63 | 100 |
Premium taxes, licenses and fees | 16 | 15 | 29 | 28 |
Professional services | 11 | 5 | 20 | 10 |
Rent and related expenses | 8 | 7 | 16 | 15 |
Other | 104 | 107 | 204 | 208 |
Total other expenses | $630 | $368 | $1,350 | $776 |
Contingencies_Commitments_and_1
Contingencies, Commitments and Guarantees (Commitments and Guarantees - Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Mortgage Loan Commitments [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | $121 | $147 |
Commitments to Fund Partnership Investments, Bank Credit Facilities and Private Corporate Bond Investments [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 894 | 1,000 |
Secured Demand Notes [Member] | Affiliated Entity [Member] | ' | ' |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ' | ' |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability | 32 | 61 |
Securities Pledged as Collateral, at Fair Value | $51 | $74 |
Related_Party_Transactions_Eff
Related Party Transactions (Effects of Affiliated Reinsurance on Statements of Operations) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Premiums: | ' | ' | ' | ' |
Net premiums | $299 | $114 | $464 | $265 |
Universal life and investment-type product policy fees: | ' | ' | ' | ' |
Net universal life and investment-type product policy fees | 604 | 556 | 1,193 | 1,120 |
Other revenues: | ' | ' | ' | ' |
Other revenues | 125 | 138 | 244 | 295 |
Policyholder benefits and claims: | ' | ' | ' | ' |
Net policyholder benefits and claims | 556 | 359 | 976 | 773 |
Interest credited to policyholder account balances: | ' | ' | ' | ' |
Net interest credited to policyholder account balances | 236 | 259 | 475 | 523 |
Other expenses: | ' | ' | ' | ' |
Total other expenses | 630 | 368 | 1,350 | 776 |
Affiliated Entity [Member] | ' | ' | ' | ' |
Universal life and investment-type product policy fees: | ' | ' | ' | ' |
Net universal life and investment-type product policy fees | 58 | 52 | 115 | 102 |
Other revenues: | ' | ' | ' | ' |
Other revenues | 48 | 46 | 95 | 92 |
Other expenses: | ' | ' | ' | ' |
Total other expenses | 402 | 372 | 749 | 816 |
Affiliated Entity [Member] | Assumed Reinsurance [Member] | ' | ' | ' | ' |
Premiums: | ' | ' | ' | ' |
Reinsurance assumed | 2 | 2 | 8 | 6 |
Universal life and investment-type product policy fees: | ' | ' | ' | ' |
Reinsurance assumed | 24 | 11 | 48 | 32 |
Other revenues: | ' | ' | ' | ' |
Reinsurance assumed | 0 | 0 | 0 | 0 |
Policyholder benefits and claims: | ' | ' | ' | ' |
Reinsurance assumed | 8 | 2 | 13 | 5 |
Interest credited to policyholder account balances: | ' | ' | ' | ' |
Reinsurance assumed | 18 | 18 | 37 | 36 |
Other expenses: | ' | ' | ' | ' |
Reinsurance assumed | 7 | 3 | 19 | 12 |
Affiliated Entity [Member] | Ceded Reinsurance [Member] | ' | ' | ' | ' |
Premiums: | ' | ' | ' | ' |
Reinsurance ceded | -184 | -156 | -447 | -303 |
Universal life and investment-type product policy fees: | ' | ' | ' | ' |
Reinsurance ceded | -149 | -168 | -306 | -302 |
Other revenues: | ' | ' | ' | ' |
Reinsurance ceded | 64 | 75 | 121 | 167 |
Policyholder benefits and claims: | ' | ' | ' | ' |
Reinsurance ceded | -238 | -193 | -588 | -386 |
Interest credited to policyholder account balances: | ' | ' | ' | ' |
Reinsurance ceded | -35 | -32 | -68 | -61 |
Other expenses: | ' | ' | ' | ' |
Reinsurance ceded | 50 | 12 | 74 | 33 |
Affiliated Entity [Member] | Reinsurance [Member] | ' | ' | ' | ' |
Premiums: | ' | ' | ' | ' |
Net premiums | -182 | -154 | -439 | -297 |
Universal life and investment-type product policy fees: | ' | ' | ' | ' |
Net universal life and investment-type product policy fees | -125 | -157 | -258 | -270 |
Other revenues: | ' | ' | ' | ' |
Other revenues | 64 | 75 | 121 | 167 |
Policyholder benefits and claims: | ' | ' | ' | ' |
Net policyholder benefits and claims | -230 | -191 | -575 | -381 |
Interest credited to policyholder account balances: | ' | ' | ' | ' |
Net interest credited to policyholder account balances | -17 | -14 | -31 | -25 |
Other expenses: | ' | ' | ' | ' |
Total other expenses | $57 | $15 | $93 | $45 |
Related_Party_Transactions_Eff1
Related Party Transactions (Effects of Affiliated Reinsurance on Balance Sheets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Premiums, reinsurance and other receivables | $22,363 | $20,609 |
Deferred policy acquisition costs and value of business acquired | 4,193 | 4,730 |
Liabilities: | ' | ' |
Other policy-related balances | 3,212 | 3,164 |
Other Liabilities | 6,971 | 6,776 |
Assumed Reinsurance [Member] | Affiliated Entity [Member] | ' | ' |
Assets: | ' | ' |
Premiums, reinsurance and other receivables | 27 | 28 |
Deferred policy acquisition costs and value of business acquired | 144 | 122 |
Total assets | 171 | 150 |
Liabilities: | ' | ' |
Other policy-related balances | 1,666 | 1,640 |
Other Liabilities | 12 | 9 |
Total liabilities | 1,678 | 1,649 |
Ceded Reinsurance [Member] | Affiliated Entity [Member] | ' | ' |
Assets: | ' | ' |
Premiums, reinsurance and other receivables | 13,925 | 12,710 |
Deferred policy acquisition costs and value of business acquired | -604 | -579 |
Total assets | 13,321 | 12,131 |
Liabilities: | ' | ' |
Other policy-related balances | 786 | 811 |
Other Liabilities | 5,623 | 5,260 |
Total liabilities | $6,409 | $6,071 |
Related_Party_Transactions_Ser
Related Party Transactions (Service Agreements - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related Party Transaction, Due from (to) Related Party [Abstract] | ' | ' | ' | ' | ' |
Net receivables (payables) due from (to) affiliates | $62 | ' | $62 | ' | ($210) |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Other expenses | 630 | 368 | 1,350 | 776 | ' |
Universal life and investment-type product policy fees | 604 | 556 | 1,193 | 1,120 | ' |
Other revenues | 125 | 138 | 244 | 295 | ' |
Affiliated Entity [Member] | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Other expenses | 402 | 372 | 749 | 816 | ' |
Universal life and investment-type product policy fees | 58 | 52 | 115 | 102 | ' |
Other revenues | $48 | $46 | $95 | $92 | ' |
Related_Party_Transactions_Rei
Related Party Transactions (Reinsurance Transactions - Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | $1,335 | ' | $1,335 | ' | $882 |
Net derivatives gains (losses) | 101 | -72 | 215 | 181 | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | -953 | ' | -953 | ' | -1,211 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 343 | 67 | 200 | 762 | ' |
Affiliated Entity [Member] | Ceded Guaranteed Minimum Benefit [Member] | ' | ' | ' | ' | ' |
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Asset | 1,400 | ' | 1,400 | ' | 912 |
Net derivatives gains (losses) | 29 | -667 | 277 | -1,400 | ' |
Affiliated Entity [Member] | Funds Withheld On Ceded Reinsurance [Member] | ' | ' | ' | ' | ' |
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' | ' |
Net derivatives gains (losses) | -74 | 128 | -176 | 416 | ' |
Coinsurance Funds Withheld Basis, Percent | 90.00% | ' | 90.00% | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 224 | ' | 224 | ' | 48 |
Affiliated Entity [Member] | Certain term and universal life policies issued in 2012 by MLI-USA [Member] | ' | ' | ' | ' | ' |
Reinsurance Disclosures [Abstract] | ' | ' | ' | ' | ' |
Net derivatives gains (losses) | -19 | 12 | -44 | 13 | ' |
Coinsurance Funds Withheld Basis, Percent | 90.00% | ' | 90.00% | ' | ' |
Embedded Derivative, Fair Value of Embedded Derivative Liability | 30 | ' | 30 | ' | -14 |
Reinsurance recoverables | 580 | ' | 580 | ' | 917 |
Funds Held under Reinsurance Agreements, Liability | 468 | ' | 468 | ' | 798 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $39 | $15 | $90 | $30 | ' |
Related_Party_Transactions_Pro
Related Party Transactions (Project Flag - Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Assumed Reinsurance [Member] | Assumed Reinsurance [Member] | Ceded Reinsurance [Member] | Ceded Reinsurance [Member] | Project Flag [Member] | ||
Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Ceded Reinsurance [Member] | |||
Affiliated Entity [Member] | |||||||
Reinsurance Recoverables, Ceded | ' | ' | ' | ' | ' | ' | $700 |
Funds Held under Reinsurance Agreements, Liability | ' | ' | ' | ' | ' | ' | 192 |
Reinsurance Liabilities | ' | ' | 1,678 | 1,649 | 6,409 | 6,071 | 14 |
Other Liabilities | 6,971 | 6,776 | 12 | 9 | 5,623 | 5,260 | ' |
Assets Transferred To Affiliates, Estimated Fair Value | ' | ' | ' | ' | ' | ' | $494 |