DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Apr. 25, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | 'S-1 | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2013 | ' |
Amendment Flag | 'false | ' |
Entity Registrant Name | 'MONY LIFE INSURANCE CO OF AMERICA | ' |
Entity Central Index Key | '0000835357 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Well Known Seasoned Issuer | 'No | ' |
Entity Common Stock Shares Outstanding | ' | 2,500,000 |
Entity Public Float | $0 | ' |
BALANCE_SHEET
BALANCE SHEET (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
ASSETS [Abstract] | ' | ' |
Fixed maturities available for sale, at fair value | $713 | $2,026 |
Mortgage loans on real estate | 28 | 45 |
Policy Loans | 142 | 137 |
Other invested assets | 84 | 71 |
Total investments | 967 | 2,279 |
Cash and cash equivalents At Carrying Value | 139 | 151 |
Amounts due from reinsurers | 1,304 | 158 |
Deferred policy acquisition costs | 218 | 218 |
Value of business acquired | 18 | 103 |
Deferred cost of reinsurance | 91 | 0 |
Other assets | 22 | 39 |
Separate Account Assets | 1,839 | 1,640 |
Total Assets | 4,598 | 4,588 |
LIABILITIES [Abstract] | ' | ' |
Policyholders' account balances | 1,777 | 1,615 |
Current and deferred income taxes | 83 | 143 |
Future policy benefits and other policyholders liabilities | 323 | 397 |
Other liabilities | 82 | 52 |
Separate Accounts' liabilities | 1,839 | 1,640 |
Total Liabilities | 4,104 | 3,847 |
Commitments and contingent liabilities | 0 | 0 |
SHAREHOLDER'S EQUITY [Abstract] | ' | ' |
Common stock, $1.0 par value, 5.0 million shares authorized, 2.5 million shares issued and outstanding | 2 | 2 |
Capital in excess of par value | 315 | 516 |
Retained earnings | 169 | 141 |
Accumulated other comprehensive income (loss) | 8 | 82 |
Total Shareholder's Equity | 494 | 741 |
Total Liabilities and Shareholder's Equity | $4,598 | $4,588 |
BALANCE_SHEET_PARENTHETICALS
BALANCE SHEET (PARENTHETICALS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
BALANCE SHEETS | ' | ' |
Common Stock par value | $1 | $1 |
Common Stock authorized | 5,000,000 | 5,000,000 |
Common Stock issued | 2,500,000 | 2,500,000 |
Common Stock outstanding | 2,500,000 | 2,500,000 |
STATEMENTS_OF_EARNINGS_LOSS
STATEMENTS OF EARNINGS (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES [Abstract] | ' | ' | ' |
Universal life and investment-type product policy fee income | $131 | $117 | $123 |
Premiums | 25 | 32 | 42 |
Net investment income (loss): [Abstract] | ' | ' | ' |
Investment income (loss) from derivative instruments | 8 | 0 | 0 |
Other Investment Income Loss | 84 | 110 | 116 |
Net investment income (loss) | 92 | 110 | 116 |
Investment gains (losses), net: [Abstract] | ' | ' | ' |
Total other-than-temporary impairment losses | -6 | -7 | -2 |
Portion of loss recognized in other comprehensive income (loss) | 0 | 0 | 0 |
Net impariment losses recognized | -6 | -7 | -2 |
Other investment gains (losses), net | 74 | 2 | 1 |
Total Investment (gains) losses, net | 68 | -5 | -1 |
Equity in earnings (losses) from AllianceBernstein | 5 | 2 | -2 |
Other income | 5 | 5 | 6 |
Increase (decrease) in the fair value of the reinsurance contract asset | -7 | -2 | 7 |
Total revenues | 319 | 259 | 291 |
BENEFITS AND OTHER DEDUCTIONS [Abstract] | ' | ' | ' |
Policyholders benefits | 78 | 103 | 96 |
Interest credited to policyholders' account balances | 65 | 61 | 61 |
Compensation and benefits | 32 | 25 | 30 |
Commissions | 80 | 38 | 33 |
Amortization of deferred policy acquisition costs and value of business acquired | 21 | -27 | -12 |
Capitalization of deferred policy acquisition costs | -81 | -31 | -25 |
Amortization of deferred cost of reinsurance | 4 | 0 | ' |
Rent expense | 2 | 2 | 3 |
Other operating costs and expenses | 74 | 44 | 29 |
Total benefits and other deductions | 275 | 215 | 215 |
Earnings (loss), before income taxes | 44 | 44 | 76 |
Income tax (expense) benefit | -16 | -6 | 1 |
Net earnings (loss) | $28 | $38 | $77 |
STATEMENT_OF_COMPREHENSIVE_INC
STATEMENT OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net Earnings (Loss) | $28 | $38 | $77 |
Other comprehensive income (loss) net of income taxes: | ' | ' | ' |
Change in unrealized gains (losses), net of reclassification adjustment | -74 | 27 | 10 |
Total other comprehensive income (loss), net of income taxes | -74 | 27 | 10 |
Comprehensive Income (Loss) | ($46) | $65 | $87 |
STATEMENTS_OF_EQUITY
STATEMENTS OF EQUITY (USD $) | Total | Total Shareholders Equity [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] |
In Millions | ||||||
Beginning of year at Dec. 31, 2010 | ' | ' | $2 | $514 | $26 | $45 |
Return of Capital | ' | ' | ' | 0 | ' | ' |
Net Earnings (Loss) | 77 | ' | ' | ' | 77 | ' |
Other comprehensive income (loss) | 10 | ' | ' | ' | ' | 10 |
Other | ' | ' | ' | 1 | ' | ' |
End of year at Dec. 31, 2011 | ' | 675 | 2 | 515 | 103 | 55 |
Return of Capital | ' | ' | ' | 0 | ' | ' |
Net Earnings (Loss) | 38 | ' | ' | ' | 38 | ' |
Other comprehensive income (loss) | 27 | ' | ' | ' | ' | 27 |
Other | ' | ' | ' | 1 | ' | ' |
End of year at Dec. 31, 2012 | 741 | 741 | 2 | 516 | 141 | 82 |
Return of Capital | ' | ' | ' | -200 | ' | ' |
Net Earnings (Loss) | 28 | ' | ' | ' | 28 | ' |
Other comprehensive income (loss) | -74 | ' | ' | ' | ' | -74 |
Other | ' | ' | ' | -1 | ' | ' |
End of year at Dec. 31, 2013 | $494 | $494 | ' | $315 | $169 | $8 |
STATEMENTS_OF_CASH_FLOWS
STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
STATEMENTS OF CASH FLOWS [Abstract] | ' | ' | ' |
Net Earnings (Loss) | $28 | $38 | $77 |
Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: [Abstract] | ' | ' | ' |
Interest credited to policyholders' account balances | 65 | 61 | 61 |
Universal life and investment-type product policy fee income | -131 | -117 | -123 |
(Income) loss from derivative instruments | -8 | 0 | 0 |
Change in accrued investment income | 3 | 2 | 1 |
Investment (gains) losses, net | -68 | 5 | 1 |
Change in deferred policy acquisition costs and value of business acquired | -60 | -58 | -37 |
Change in the fair value of the reinsurance contract asset | 7 | 2 | -7 |
Change in future policy benefits | -18 | -5 | 3 |
Change in other policyholders liabilities | -2 | 5 | -3 |
Change in current and deferred income taxes | -20 | -1 | 15 |
Provision for depreciation and amortization | 7 | 5 | 3 |
Dividend from AllianceBernstein | 4 | 3 | 4 |
Amortization of deferred reinsurance costs | 4 | 0 | ' |
Cash transferred as a result of reinsurance agreement with Protective Life | -74 | ' | ' |
Other, net | 36 | 11 | -18 |
Net cash provided by (used in) operating activities | -227 | -49 | -23 |
Cash flows from investing activities: [Abstract] | ' | ' | ' |
Maturities and repayments of fixed maturities and mortgage loans on real estate | 290 | 139 | 156 |
Sales of investments | 111 | 60 | 16 |
Purchases of investments | -251 | -134 | -190 |
Cash settlement related to derivative instruments | -4 | ' | ' |
Other, net | 19 | -8 | -5 |
Net cash provided by (used in) investing activities | 165 | 57 | -23 |
Cash flows from financing activities: [Abstract] | ' | ' | ' |
Deposits | 279 | 148 | 156 |
Withdrawals and transfers to Separate Accounts | -41 | -66 | -141 |
Change in collateralized pledged liabilities | 12 | ' | ' |
Return of capital | -200 | ' | ' |
Net cash provided by (used in) financing activities | 50 | 82 | 15 |
Change in cash and cash equivalents | -12 | 90 | -31 |
Cash and cash equivalents, beginning of year | 151 | 61 | 92 |
Cash and Cash Equivalents, End of Year | 139 | 151 | 61 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Interest Paid | 0 | 0 | 1 |
Schedule Of Non Cash Financing Activities [Abstract] | ' | ' | ' |
Shared-based Programs | $0 | ($1) | ($2) |
ORGANIZATION
ORGANIZATION | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Organization [Abstract] | ' | |||||
ORGANIZATION | ' | |||||
1) ORGANIZATION | ||||||
MONY Life Insurance Company of America (“MLOA”) is an Arizona stock life insurance company. MLOA's primary business is providing life insurance products to both individuals and businesses. Effective October 1, 2013, MLOA is a wholly-owned subsidiary of AXA Equitable Financial Services, LLC (“AEFS”). AEFS is a direct wholly owned subsidiary of AXA Financial, Inc. (“AXA Financial” and together with its consolidated subsidiaries “AXA Financial Group”). AXA Financial is an indirect wholly owned subsidiary of AXA, a French holding company for an international group of insurance and related financial services companies. | ||||||
On October 1, 2013, AXA Financial and AEFS completed the sale of the stock of MONY Life Insurance Company (“MONY Life”) and the reinsurance of an in-force book of life insurance and annuity policies written primarily prior to 2004 by MLOA to Protective Life Insurance Company (“Protective Life”). Prior to the close, MONY Life's subsidiaries, including MLOA, were distributed to AEFS. MLOA transferred and ceded assets to Protective Life equal to $1,308 million, net of ceding commission of $370 million for consideration of the transfer of liabilities amounting to $1,374 million in connection with the reinsurance agreement. As a result of the reinsurance agreement MLOA recorded a deferred cost of reinsurance asset amounting to $95 million which is amortized over the life of the underlying reinsured policies. Refer to the table below for a detailed description of assets and liabilities transferred, ceded and written off as a result of the reinsurance agreement with Protective Life on October 1, 2013. | ||||||
Calculation of deferred cost of reinsurance | ||||||
(In Millions) | ||||||
Transferred or Ceded Assets (Net of Ceding Commission): | ||||||
Fixed Maturities | $ | 1,102 | ||||
Cash | 74 | |||||
Policy loans | 132 | |||||
Total assets transferred or ceded (Net of Ceding Commission) | $ | 1,308 | ||||
Transferred Liabilities: | ||||||
Future policyholder benefits and other policyholders liabilities | $ | 1,334 | ||||
Amounts due to reinsurer | 40 | |||||
Total liabilities transferred | $ | 1,374 | ||||
Accelerated Amortization of Assets and Liabilities As Part of the Reinsurance Agreement: | ||||||
Value of business acquired | $ | 117 | ||||
Deferred policy acquisition costs | 71 | |||||
Initial Fee Liability | -27 | |||||
Net accelerated amortization of assets and liabilities | $ | 161 | ||||
Deferred Cost of Reinsurance | $ | 95 |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | ' |
SIGNIFICANT ACCOUNTING POLICIES | ' |
2) SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying financial statements reflect all adjustments necessary in the opinion of management for a fair presentation of the financial position of MLOA and its results of operations and cash flows for the periods presented. | |
The years “2013”, “2012” and “2011” refer to the years ended December 31, 2013, 2012 and 2011, respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. | |
Adoption of New Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance to improve the reporting of reclassifications out of accumulated other comprehensive income (loss) (“AOCI”). The amendments in this guidance require an entity to report the effect of significant reclassifications out of AOCI on the respective line items in the statement of earnings (loss) if the amount being reclassified is required to be reclassified in its entirety to net earnings (loss). For other amounts that are not required to be reclassified in their entirety to net earnings in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. The guidance requires disclosure of reclassification information either in the notes or the face of the financial statements provided the information is presented in one location. This guidance was effective for interim and annual periods beginning after December 31, 2012. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In December 2011, the FASB issued new and enhanced disclosures about offsetting (netting) of financial instruments and derivatives, including repurchase/reverse repurchase agreements and securities lending/borrowing arrangements, to converge with those required by International Financial Reporting Standards (“IFRS”). The disclosures require presentation in tabular format of gross and net information about assets and liabilities that either are offset (presented net) on the balance sheet or are subject to master netting agreements or similar arrangements providing rights of setoff, such as global master repurchase, securities lending, and derivative clearing agreements, irrespective of whether the assets and liabilities are offset. Financial instruments subject only to collateral agreements are excluded from the scope of these requirements, however, the tabular disclosures are required to include the fair values of financial collateral, including cash, related to master netting agreements or similar arrangements. In January 2013, the FASB issued new guidance limiting the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. This guidance was effective for interim and annual periods beginning after January 1, 2013 and is to be applied retrospectively to all comparative prior periods presented. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In September 2011, the FASB issued new guidance on testing goodwill for impairment. The guidance is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities with the option of performing a "qualitative" assessment to determine whether further impairment testing is necessary. The guidance was effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted for certain companies. Implementation of this guidance did not have a material impact on MLOA's financial statements. | |
In June 2011, the FASB issued new guidance to amend the existing alternatives for presenting Other comprehensive income (loss) (“OCI”) and its components in financial statements. The amendments eliminate the current option to report OCI and its components in the statement of changes in equity. An entity can elect to present items of net earnings (loss) and OCI in one continuous statement or in two separate, but consecutive statements. This guidance will not change the items that constitute net earnings (loss) and OCI, when an item of OCI must be reclassified to net earnings (loss). The new guidance also called for reclassification adjustments from OCI to be measured and presented by income statement line item in net earnings (loss) and in OCI. This guidance was effective for interim and annual periods beginning after December 15, 2011. Consistent with this guidance, MLOA currently presents items of net earnings (loss) and OCI in two consecutive statements. In December 2011, the FASB issued new guidance to defer the portion of the guidance to present components of OCI on the face of the statement of earnings (loss). | |
In May 2011, the FASB amended its guidance on fair value measurements and disclosure requirements to enhance comparability between U.S. GAAP and IFRS. The changes to the existing guidance include how and when the valuation premise of highest and best use applies, the application of premiums and discounts, as well as new required disclosures. This guidance was effective for reporting periods beginning after December 15, 2011, with early adoption prohibited. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In April 2011, the FASB issued new guidance for a creditor's determination of whether a restructuring is a troubled debt restructuring (“TDR”). The new guidance provided additional guidance to creditors for evaluating whether a modification or restructuring of a receivable is a TDR. The new guidance required creditors to evaluate modifications and restructurings of receivables using a more principles-based approach, which may result in more modifications and restructurings being considered TDR. The financial reporting implications of being classified as a TDR are that the creditor is required to: | |
Consider the receivable impaired when calculating the allowance for credit losses; and | |
Provide additional disclosures about its troubled debt restructuring activities in accordance with the requirements of recently issued guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses. | |
The new guidance was effective for the first interim or annual period beginning on or after June 15, 2011. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
Future Adoption of New Accounting Pronouncements | |
In July 2013, the FASB issued new guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this guidance state that an unrecognized tax benefit, or a portion thereof, should 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. An exception to this guidance would be where a net operating loss carryforward or similar tax loss or credit carryforward would not be available under the tax law to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such a case, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for interim and annual periods beginning after December 15, 2013. Management does not expect implementation of this guidance will have a material impact on MLOA's financial statements. | |
Investments | |
The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in comprehensive income. The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. | |
MLOA determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. | |
MLOA's management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity, and continued viability of the issuer and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. | |
If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in earnings (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management's best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage- and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. | |
Real estate held for the production of income, including real estate acquired in satisfaction of debt, is stated at depreciated cost less valuation allowances. At the date of foreclosure (including in-substance foreclosure), real estate acquired in satisfaction of debt is valued at estimated fair value. Impaired real estate is written down to fair value with the impairment loss being included in Investment gains (losses), net. | |
Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. | |
Policy loans are stated at unpaid principal balances. | |
Partnerships and joint venture interests that MLOA has control of and has a majority economic interest in (that is, greater than 50% of the economic return generated by the entity) or those that meet the requirements for consolidation under accounting guidance for consolidation of variable interest entities (“VIE”) are consolidated. Those that MLOA does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity basis of accounting and are reported in Other assets. MLOA records its interest in certain of these partnerships on a one quarter lag basis. | |
Equity securities, which include common stock and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in Other invested assets with changes in fair value reported in OCI. | |
Units in AllianceBernstein L.P. (“AllianceBernstein”), a subsidiary of AXA Financial, are carried on the equity method and reported in Other invested assets. | |
Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. | |
Cash and cash equivalents includes cash on hand, amounts due from banks and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. | |
All securities owned, including United States government and agency securities and mortgage-backed securities, are reported in the financial statements on a trade date basis. | |
Derivatives | |
Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by MLOA include equity options and may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. | |
Freestanding derivative contracts are reported in the balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities.” MLOA nets the fair value of all derivative financial instruments with counterparties for which a standardized “ISDA Master Agreement” and related Credit Support Annex (“CSA”) have been executed. MLOA uses derivatives to manage asset/liability risk but has not designated those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of MLOA freestanding derivative positions, including net receipts and payments, are included in “Investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. | |
MLOA is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, MLOA assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When those criteria are satisfied, the resulting embedded derivative is bifurcated from the host contract, carried in the balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the statements of earnings (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. | |
Valuation Allowances for Mortgage Loans: | |
For commercial and agricultural loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management's judgment in determining allowance for credit losses include the following: | |
Loan-to-value ratio – Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the loan-to-value ratio is in excess of 100%. In the case where the loan-to-value is in excess of 100%, the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance. | |
Debt service coverage ratio – Derived from actual net operating income divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. | |
Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. | |
Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. | |
Maturity – Loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower's ability to refinance the debt and/or pay off the balloon balance. | |
Borrower/tenant related issues – Financial concerns, potential bankruptcy, or words or actions that indicate imminent default or abandonment of property. | |
Payment status – current vs. delinquent – A history of delinquent payments may be a cause for concern. | |
Property condition – Significant deferred maintenance observed during Lender's annual site inspections. | |
Other – Any other factors such as current economic conditions may call into question the performance of the loan. | |
Mortgage loans on real estate are stated at unpaid principal balances, net of unamortized discounts and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan's original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. | |
Mortgage loans also are individually evaluated quarterly by the IUS Committee for impairment, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages are also identified, consisting of mortgage loans not currently classified as problems but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. | |
For problem mortgage loans a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan specific portion of the loss allowance is based on MLOA's assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan's effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors. | |
Impaired mortgage loans without provision for losses are loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. | |
Mortgage loans on real estate are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At December 31, 2013 and 2012, the carrying values of commercial mortgage loans on real estate that had been classified as nonaccrual loans were $6 million and $6 million, respectively. | |
Troubled Debt Restructuring | |
When a loan modification is determined to be a troubled debt restructuring, the impairment of the loan is re-measured by discounting the expected cash flows to be received based on the modified terms using the loan's original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans. Additionally, the loan continues to be subject to the credit review process noted above. | |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) | |
Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in Investment gains (losses), net. | |
Unrealized investment gains (losses) on fixed maturities and equity securities designated as AFS held by MLOA are accounted for as a separate component of AOCI, net of related deferred income taxes and amounts attributable to DAC and value of business acquired (“VOBA”) related to variable life and investment-type products. | |
Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any changes in fair value of policyholders' account balances and future policy benefits. | |
Fair Value of Financial Instruments | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: | |
Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. | |
Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity's own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. | |
MLOA defines fair value as the unadjusted quoted market prices for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time MLOA's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. | |
Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, MLOA often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, MLOA either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ widely accepted internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. | |
Recognition of Insurance Income and Related Expenses | |
Premiums from variable life and investment-type contracts are reported as deposits to policyholders' account balances. Revenues from these contracts consist of fees assessed during the period against policyholders' account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders' account balances. | |
Premiums from non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. | |
For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. | |
DAC and VOBA | |
DAC. Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. | |
After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. | |
VOBA. VOBA, which arose from MLOA's 2004 acquisition by AXA Financial, was established in accordance with purchase accounting guidance for business combinations. VOBA is the actuarially determined present value of estimated future gross profits from insurance contracts in force at the date of the acquisition. VOBA is amortized over the expected life of the contracts (up to 50 years from the date of issue) according to the type of contract using the methods described below as applicable. VOBA is subject to loss recognition testing at the end of each accounting period. | |
Amortization Policy. For universal life (“UL”) and investment-type products, DAC and VOBA are amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC and VOBA are amortized using the present value of estimated assessments. The effect on the amortization of DAC and VOBA of revisions to estimated gross profits or assessments is reflected in earnings in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC and VOBA amortization. Conversely, an increase in expected gross profits or assessments would slow DAC and VOBA amortization. The effect on the DAC and VOBA assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in shareholders' equity as of the balance sheet date. | |
A significant assumption in the amortization of DAC and VOBA on variable and interest-sensitive life insurance relates to projected future Separate Account performance. Management sets estimated future gross profit or assessment assumptions related to Separate Account performance using a long-term view of expected average market returns by applying a reversion to the mean approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC and VOBA amortization for the period. The opposite occurs when returns are lower than expected. | |
In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Currently, the average gross long-term return estimate is measured from December 31, 2008. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. At December 31, 2013, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance was 9.0% (7.83% net of product weighted average Separate Account fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (13.83% net of product weighted average Separate Account fees) and 0.0% (-1.17% net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is 5 years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. | |
If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than 5 years in order to reach the average gross long-term return estimate, the application of the 5 year maximum duration limitation would result in an acceleration of DAC and VOBA amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than 5 years would result in a required deceleration of DAC and VOBA amortization. At December 31, 2013, current projections of future average gross market returns assume a 0.0% annualized return for the next nine quarters, which is the minimum limitation, grading to a reversion to the mean of 9.0% in eleven quarters. | |
In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated quarterly to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC and VOBA amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC and VOBA amortization. Generally, life mortality experience has been improving in recent years. | |
Other significant assumptions underlying gross profit estimates for UL and investment-type products relate to contract persistency and General Account investment spread. | |
Prior to the reinsurance agreement with Protective Life, DAC and VOBA associated with non-participating traditional life policies were amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums were estimated at the date of policy issue and were consistently applied during the life of the contracts. Deviations from estimated experience were reflected in earnings (loss) in the period such deviations occur. For these contracts, the amortization periods generally were for the total life of the policy. DAC and VOBA related to these policies were subject to recoverability testing as part of AXA Financial Group's premium deficiency testing. If a premium deficiency existed, DAC and VOBA were reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeded the DAC balance, the reserve for future policy benefits was increased by the excess, reflected in earnings (loss) in the period such deficiency occurred. | |
Deferred Cost of or Gain on Reinsurance | |
The cost of or gain on reinsurance at the inception of a coinsurance treaty, defined as the difference between the initial coinsurance premium paid and the amount of the net liabilities relating to the underlying reinsured policies in accordance with the reinsurance agreement, net of the ceded commission received is deferred and amortized over the lives of the underlying policies. | |
Policyholders' Account Balances and Future Policy Benefits | |
Policyholders' account balances for variable life and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. | |
MLOA had issued certain variable annuity products with a guaranteed minimum death benefit (“GMDB”) feature. MLOA also had issued certain variable annuity products that contain a GMIB feature which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. Reserves for GMDB and GMIB obligations are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts using assumptions consistent with those used in estimating gross profits for purposes of amortizing DAC and VOBA. The determination of this estimated liability is based on models that involve numerous estimates and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding Separate Account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a reversion to the mean approach, consistent with that used for DAC and VOBA amortization. There can be no assurance that actual experience will be consistent with management's estimates. | |
In connection with the reinsurance agreement with Protective Life, MLOA has reinsured 100% of the risk associated with GMDB and GMIB variable annuity products. | |
For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances were calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. | |
For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on MLOA's experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated contractholders' fund balances and, after annuitization, are equal to the present value of expected future payments. | |
When the liabilities for future policy benefits plus the present value of expected future gross premiums for a product are insufficient to provide for expected future policy benefits and expenses for that product, DAC and VOBA are written off and thereafter, if required, a premium deficiency reserve is established by a charge to earnings. | |
Separate Accounts | |
Generally, Separate Accounts established under Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of MLOA. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed Separate Accounts liabilities. Assets and liabilities of the Separate Accounts represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of contractholders, and for which MLOA does not bear the investment risk. Separate Accounts' assets and liabilities are shown on separate lines in the balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security's duration, also taking into consideration issuer-specific credit quality and liquidity. The assets and liabilities of two Separate Accounts are presented and accounted for as General Account assets and liabilities due to the fact that not all of the investment performance in those Separate Accounts is passed through to policyholders. Investment assets in these Separate Accounts principally consist of fixed maturities that are classified as AFS in the accompanying consolidated financial statements. | |
The investment results of Separate Accounts, including unrealized gains (losses), on which MLOA does not bear the investment risk are reflected directly in Separate Accounts liabilities and are not reported in revenues in the statements of earnings (loss). For 2013, 2012 and 2011, investment results of such Separate Accounts were gains (losses) of $256 million, $196 million and $(49) million, respectively. | |
Deposits to Separate Accounts are reported as increases in Separate Accounts liabilities and are not reported in revenues. Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. | |
MLOA reports the General Account's interests in Separate Accounts as other invested assets in the balance sheets. | |
Other Accounting Policies | |
AXA Financial and certain of its consolidated subsidiaries, including MLOA, file a consolidated Federal income tax return. Current Federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. | |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Disclosure [Abstract] | ' | ||||||||||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||||||||||
3) INVESTMENTS | |||||||||||||||||||||||||
Fixed Maturities and Equity Securities | |||||||||||||||||||||||||
The following table provides information relating to fixed maturities classified as AFS; no equity securities were classified as AFS. | |||||||||||||||||||||||||
Available-for-Sale Securities by Classification | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | |||||||||||||||||||||
Cost | Gains | Losses | Value | in AOCI(3) | |||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 608 | $ | 33 | $ | 8 | $ | 633 | $ | 0 | |||||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 34 | 0 | 0 | 34 | 0 | ||||||||||||||||||||
States and political subdivisions | 6 | 0 | 0 | 6 | 0 | ||||||||||||||||||||
Commercial mortgage-backed | 46 | 1 | 23 | 24 | 1 | ||||||||||||||||||||
Redeemable preferred stock | 18 | 0 | 2 | 16 | 0 | ||||||||||||||||||||
Total at December 31, 2013 | $ | 712 | $ | 34 | $ | 33 | $ | 713 | $ | 1 | |||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 1,553 | $ | 167 | $ | 1 | $ | 1,719 | $ | 0 | |||||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 106 | 7 | 0 | 113 | 0 | ||||||||||||||||||||
States and political subdivisions | 25 | 3 | 0 | 28 | 0 | ||||||||||||||||||||
Foreign governments | 2 | 0 | 0 | 2 | 0 | ||||||||||||||||||||
Commercial mortgage-backed | 57 | 5 | 27 | 35 | 2 | ||||||||||||||||||||
Residential mortgage-backed (1) | 19 | 1 | 0 | 20 | 0 | ||||||||||||||||||||
Asset-backed (2) | 9 | 2 | 0 | 11 | 0 | ||||||||||||||||||||
Redeemable preferred stock | 97 | 2 | 1 | 98 | 0 | ||||||||||||||||||||
Total at December 31, 2012 | $ | 1,868 | $ | 187 | $ | 29 | $ | 2,026 | $ | 2 | |||||||||||||||
Includes publicly traded agency pass-through securities and collateralized mortgage obligations. | |||||||||||||||||||||||||
Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. | |||||||||||||||||||||||||
Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance. | |||||||||||||||||||||||||
The contractual maturities of AFS fixed maturities (excluding redeemable preferred stock) at December 31, 2013 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available-for-Sale Fixed Maturity Securities | |||||||||||||||||||||||||
Contractual Maturities at December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Due in one year or less | $ | 102 | $ | 104 | |||||||||||||||||||||
Due in years two through five | 184 | 198 | |||||||||||||||||||||||
Due in years six through ten | 302 | 311 | |||||||||||||||||||||||
Due after ten years | 60 | 60 | |||||||||||||||||||||||
Subtotal | 648 | 673 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 46 | 24 | |||||||||||||||||||||||
Total | $ | 694 | $ | 697 | |||||||||||||||||||||
The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Proceeds from sales(1) | $ | 1,200 | $ | 13 | $ | 20 | |||||||||||||||||||
Gross gains on sales(2) | $ | 84 | $ | 2 | $ | 1 | |||||||||||||||||||
Gross losses on sales(3) | $ | 9 | $ | 0 | $ | 1 | |||||||||||||||||||
Total OTTI | $ | -6 | $ | -7 | $ | -2 | |||||||||||||||||||
Non-credit losses recognized in OCI | 0 | 0 | 0 | ||||||||||||||||||||||
Credit losses recognized in earnings (loss) | $ | -6 | $ | -7 | $ | -2 | |||||||||||||||||||
Includes $1,090 million of transfer of assets to Protective Life. | |||||||||||||||||||||||||
Includes $81 million of gross gains from assets transferred to Protective Life. | |||||||||||||||||||||||||
Includes $6 million of gross losses from assets transferred to Protective Life. | |||||||||||||||||||||||||
The following table sets forth the amount of credit loss impairments on fixed maturity securities held by MLOA at the dates indicated and the corresponding changes in such amounts. | |||||||||||||||||||||||||
Fixed Maturity Securities - Credit Loss Impairments | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balances at January 1, | $ | -72 | $ | -74 | |||||||||||||||||||||
Previously recognized impairments on securities that matured, paid, prepaid or sold | 18 | 9 | |||||||||||||||||||||||
Recognized impairments on securities impaired to fair value this period(1) | 0 | 0 | |||||||||||||||||||||||
Impairments recognized this period on securities not previously impaired | -6 | -6 | |||||||||||||||||||||||
Additional impairments this period on securities previously impaired | 0 | -1 | |||||||||||||||||||||||
Increases due to passage of time on previously recorded credit losses | 0 | 0 | |||||||||||||||||||||||
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 | |||||||||||||||||||||||
Balances at December 31, | $ | -60 | $ | -72 | |||||||||||||||||||||
(1) Represents circumstances where MLOA determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security's amortized cost. | |||||||||||||||||||||||||
Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
AFS Securities: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
With OTTI loss | $ | -4 | $ | 2 | |||||||||||||||||||||
All other | 5 | 156 | |||||||||||||||||||||||
Net Unrealized (Gains) Losses | $ | 1 | $ | 158 | |||||||||||||||||||||
Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net earnings (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a rollforward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized, and all other: | |||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Fixed Maturity Securities with OTTI Losses | |||||||||||||||||||||||||
AOCI Gain | |||||||||||||||||||||||||
Net | (Loss) Related | ||||||||||||||||||||||||
Unrealized | Deferred | to Net | |||||||||||||||||||||||
Gains | Income | Unrealized | |||||||||||||||||||||||
(Losses) on | DAC and | Tax Asset | Investment | ||||||||||||||||||||||
Investments | VOBA | (Liability) | Gains (Losses) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 2 | $ | -1 | $ | 0 | $ | 1 | |||||||||||||||||
Net investment gains (losses) arising during the period | -5 | 0 | 0 | -5 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | -1 | 0 | 0 | -1 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -48 | 0 | -48 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | 19 | 19 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | -4 | $ | -49 | $ | 19 | $ | -34 | |||||||||||||||||
Balance, January 1, 2012 | $ | -5 | $ | 1 | $ | 2 | $ | -2 | |||||||||||||||||
Net investment gains (losses) arising during the period | 6 | 0 | 0 | 6 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -2 | 0 | -2 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | -2 | -2 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 2 | $ | -1 | $ | 0 | $ | 1 | |||||||||||||||||
(1) Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. | |||||||||||||||||||||||||
All Other Net Unrealized Investment Gains (Losses) in AOCI | |||||||||||||||||||||||||
AOCI Gain | |||||||||||||||||||||||||
Net | (Loss) Related | ||||||||||||||||||||||||
Unrealized | Deferred | to Net | |||||||||||||||||||||||
Gains | Income | Unrealized | |||||||||||||||||||||||
(Losses) on | DAC and | Tax Asset | Investment | ||||||||||||||||||||||
Investments | VOBA | (Liability) | Gains (Losses) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 156 | $ | -31 | $ | -44 | $ | 81 | |||||||||||||||||
Net investment gains (losses) arising during the period | -84 | 0 | 0 | -84 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | -67 | 0 | 0 | -67 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | 91 | 0 | 91 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | 21 | 21 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 5 | $ | 60 | $ | -23 | $ | 42 | |||||||||||||||||
Balance, January 1, 2012 | $ | 115 | $ | -27 | $ | -31 | $ | 57 | |||||||||||||||||
Net investment gains (losses) arising during the period | 37 | 0 | 0 | 37 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | 4 | 0 | 0 | 4 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -4 | 0 | -4 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | -13 | -13 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 156 | $ | -31 | $ | -44 | $ | 81 | |||||||||||||||||
(1) Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss. | |||||||||||||||||||||||||
The following tables disclose the fair values and gross unrealized losses of the 143 issues at December 31, 2013 and the 76 issues at December 31, 2012 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 109 | $ | -6 | $ | 38 | $ | -2 | $ | 147 | $ | -8 | |||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 21 | 0 | 0 | 0 | 21 | 0 | |||||||||||||||||||
States and political subdivisions | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||
Commercial mortgage-backed | 13 | -13 | 8 | -10 | 21 | -23 | |||||||||||||||||||
Redeemable preferred stock | 8 | -2 | 0 | 0 | 8 | -2 | |||||||||||||||||||
Total | $ | 152 | $ | -21 | $ | 46 | $ | -12 | $ | 198 | $ | -33 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 44 | $ | 0 | $ | 14 | $ | -1 | $ | 58 | $ | -1 | |||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||
Foreign governments | 0 | 0 | 2 | 0 | 2 | 0 | |||||||||||||||||||
Commercial mortgage-backed | 0 | -1 | 26 | -26 | 26 | -27 | |||||||||||||||||||
Redeemable preferred stock | 14 | 0 | 30 | -1 | 44 | -1 | |||||||||||||||||||
Total | $ | 59 | $ | -1 | $ | 72 | $ | -28 | $ | 131 | $ | -29 | |||||||||||||
MLOA's investments in fixed maturity securities do not include concentrations of credit risk of any single issuer greater than 10% of the shareholder's equity of MLOA, other than securities of the U.S. government, U.S. government agencies and certain securities guaranteed by the U.S. government. MLOA maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 2.8% of total investments. The largest exposures to a single issuer of corporate securities held at December 31, 2013 and 2012 were $27 million and $27 million, respectively. Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near default). At December 31, 2013 and 2012, respectively, approximately $60 million and $125 million, or 8.4% and 6.7%, of the $712 million and $1,868 million aggregate amortized cost of fixed maturities held by MLOA were considered to be other than investment grade. These securities had net unrealized losses of $22 million and $17 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
MLOA does not originate, purchase or warehouse residential mortgages and is not in the mortgage servicing business. MLOA's fixed maturity investment portfolio before September 30, 2013 included residential mortgage backed securities (“RMBS”) backed by subprime and Alt-A residential mortgages, comprised of loans made by banks or mortgage lenders to residential borrowers with lower credit ratings. The criteria used to categorize such subprime borrowers include Fair Isaac Credit Organization (“FICO”) scores, interest rates charged, debt-to-income ratios and loan-to-value ratios. Alt-A residential mortgages are mortgage loans where the risk profile falls between prime and subprime; borrowers typically had clean credit histories but the mortgage loan has an increased risk profile due to higher loan-to-value and debt-to-income ratios and/or inadequate documentation of the borrowers' income. At December 31, 2013 and 2012, respectively, MLOA owned $0 million and $0 million in RMBS backed by subprime residential mortgage loans. RMBS backed by subprime residential mortgages were fixed income investments supporting General Account liabilities. | |||||||||||||||||||||||||
At December 31, 2013, the carrying value of fixed maturities that were non-income producing for the twelve months preceding that date was $2 million. | |||||||||||||||||||||||||
Valuation Allowances for Mortgage Loans: | |||||||||||||||||||||||||
Allowances for credit losses for mortgage loans in 2013, 2012 and 2011 are as follows: | |||||||||||||||||||||||||
Commercial Mortgage Loans | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Beginning Balance, January 1, | $ | 4 | $ | 3 | $ | 2 | |||||||||||||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||||||||||||
Recoveries | -1 | 0 | 0 | ||||||||||||||||||||||
Provision | 0 | 1 | 1 | ||||||||||||||||||||||
Ending Balance, December 31, | $ | 3 | $ | 4 | $ | 3 | |||||||||||||||||||
Ending Balance, December 31,: | |||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 3 | $ | 4 | $ | 3 | |||||||||||||||||||
There were no allowances for credit losses for agricultural mortgage loans in 2013, 2012 and 2011. | |||||||||||||||||||||||||
The values used in these ratio calculations were developed as part of the periodic review of the commercial mortgage loan portfolio, which includes an evaluation of the underlying collateral value. The following tables provide information relating to the loan-to-value and debt service coverage ratio for commercial mortgage loans at December 31, 2013, and 2012, respectively. | |||||||||||||||||||||||||
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||||||||||||
Less | Total | ||||||||||||||||||||||||
Greater | 1.8x to | 1.5x to | 1.2x to | 1.0x to | than | Mortgage | |||||||||||||||||||
Loan-to-Value Ratio:(2) | than 2.0x | 2.0x | 1.8x | 1.5x | 1.2x | 1.0x | Loans | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||
0% - 50% | $ | 0 | $ | 0 | $ | 16 | $ | 0 | $ | 0 | $ | 0 | $ | 16 | |||||||||||
50% - 70% | 0 | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
70% - 90% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
90% plus | 9 | 0 | 0 | 0 | 0 | 0 | 9 | ||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 9 | $ | 0 | $ | 16 | $ | 6 | $ | 0 | $ | 0 | $ | 31 | |||||||||||
The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. | |||||||||||||||||||||||||
The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. | |||||||||||||||||||||||||
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||||||||||||
Less | Total | ||||||||||||||||||||||||
Greater | 1.8x to | 1.5x to | 1.2x to | 1.0x to | than | Mortgage | |||||||||||||||||||
Loan-to-Value Ratio:(2) | than 2.0x | 2.0x | 1.8x | 1.5x | 1.2x | 1.0x | Loans | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||
0% - 50% | $ | 4 | $ | 0 | $ | 17 | $ | 0 | $ | 12 | $ | 0 | $ | 33 | |||||||||||
50% - 70% | 0 | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
70% - 90% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
90% plus | 10 | 0 | 0 | 0 | 0 | 0 | 10 | ||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 14 | $ | 0 | $ | 17 | $ | 6 | $ | 12 | $ | 0 | $ | 49 | |||||||||||
The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service. | |||||||||||||||||||||||||
The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually. | |||||||||||||||||||||||||
The following table provides information relating to the aging analysis of past due mortgage loans at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Age Analysis of Past Due Commercial Mortgage Loans | |||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
Total | > 90 Days | ||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Financing | and | |||||||||||||||||||||
Days | Days | or > | Total | Current | Receivables | Accruing | |||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 31 | $ | 31 | $ | 0 | |||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 49 | $ | 49 | $ | 0 | |||||||||||
The following table provides information relating to impaired loans at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Commercial Mortgage Loans - Impaired | |||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment(1) | Recognized | |||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
With no related allowance recorded | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
With related allowance recorded | $ | 9 | $ | 9 | $ | -3 | $ | 10 | $ | 0 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
With no related allowance recorded | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
With related allowance recorded | $ | 10 | $ | 10 | $ | -4 | $ | 10 | $ | 0 | |||||||||||||||
Represents a five-quarter average of recorded amortized cost. | |||||||||||||||||||||||||
Equity Investments | |||||||||||||||||||||||||
MLOA holds equity in limited partnership interests and other equity method investments that primarily invest in securities considered to be other than investment grade. The carrying values at December 31, 2013 and 2012 were $1 million and $2 million, respectively. | |||||||||||||||||||||||||
The following table presents MLOA's investment in 2.6 million units in AllianceBernstein, an affiliate, which is included in Other invested assets: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance at January 1, | $ | 69 | $ | 72 | |||||||||||||||||||||
Equity in net earnings (loss) | 5 | 2 | |||||||||||||||||||||||
Impact of repurchase/issuance of AllianceBernstein Units | 0 | -2 | |||||||||||||||||||||||
Dividends received | -4 | -3 | |||||||||||||||||||||||
Balance at December 31, | $ | 70 | $ | 69 | |||||||||||||||||||||
The tables below detail the condensed balance sheets and statements of earnings (loss) of AllianceBernstein and MLOA's equity investment and equity in earnings (loss) of AllianceBernstein. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance Sheets: | |||||||||||||||||||||||||
Total Assets | $ | 7,386 | $ | 8,115 | |||||||||||||||||||||
Total Liabilities | 3,316 | 4,312 | |||||||||||||||||||||||
Total Partners' Capital | 4,070 | 3,803 | |||||||||||||||||||||||
Total Liabilities and Partners' Capital | $ | 7,386 | $ | 8,115 | |||||||||||||||||||||
MLOA's Equity investment in AllianceBernstein | $ | 70 | $ | 69 | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Statements of Earnings (Loss): | |||||||||||||||||||||||||
Total revenues | $ | 2,915 | $ | 2,737 | $ | 2,750 | |||||||||||||||||||
Total Expenses | 2,351 | 2,534 | 2,958 | ||||||||||||||||||||||
Net Earnings (Loss) | $ | 518 | $ | 189 | $ | -175 | |||||||||||||||||||
MLOA's Equity in earnings (loss) of AllianceBernstein | $ | 5 | $ | 2 | $ | -2 | |||||||||||||||||||
Derivatives and Offsetting Assets and Liabilities | |||||||||||||||||||||||||
MLOA uses derivatives for asset/liability risk management primarily to reduce exposures to equity market risks. Derivative hedging strategies are designed to reduce these risks from an economic perspective and are all executed within the framework of a “Derivative Use Plan” approved by the State of Arizona Insurance Department (“AID”). Operation of these hedging programs is based on models involving numerous estimates and assumptions, including, among others, mortality, lapse, surrender and withdrawal rates, election rates, market volatility and interest rates. | |||||||||||||||||||||||||
MLOA uses equity index options on the S&P 500, Russell 2000, Morgan Stanley Capital International (“MSCI”), Europe, Australasia and Far East (“EAFE”), for the purpose of hedging crediting rate exposure in its Market Stabilizer Option® (“MSO”) in the MLOA's variable life insurance products and Indexed Universal Life (“IUL”) insurance products. This involves entering into a package of calls and/or put options whose payoff mimics the crediting rate embedded in individual segments of the products. | |||||||||||||||||||||||||
Although notional amount is the most commonly used measure of volume in the derivatives market, it is not used as a measure of credit risk. A derivative with positive fair value (a derivative asset) indicates existence of credit risk because the counterparty would owe money to MLOA if the contract were closed at the reporting date. Alternatively, a derivative contract with negative fair value (a derivative liability) indicates MLOA would owe money to the counterparty if the contract were closed at the reporting date. To reduce credit exposures in over-the-counter (“OTC”) derivative transactions, MLOA generally enters into master agreements that provide for a netting of financial exposures with the counterparty and allow for collateral arrangements. MLOA further controls and minimizes its counterparty exposure through a credit appraisal and approval process. | |||||||||||||||||||||||||
The tables below present quantitative disclosures about MLOA's derivative instruments, including those embedded in other contracts though required to be accounted for as derivative instruments. | |||||||||||||||||||||||||
Derivative Instruments by Category | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Gains (Losses) | |||||||||||||||||||||||||
Notional | Asset | Liability | Reported In | ||||||||||||||||||||||
Amount | Derivatives | Derivatives | Earnings (Loss) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
At or For the Year Ended December 31, 2013: | |||||||||||||||||||||||||
Freestanding derivatives: | |||||||||||||||||||||||||
Equity contracts:(1) | |||||||||||||||||||||||||
Options | $ | 158 | $ | 20 | $ | 6 | $ | 8 | |||||||||||||||||
Net investment income (loss) | 8 | ||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||
GMIB reinsurance contracts (2) | 0 | 0 | 0 | -7 | |||||||||||||||||||||
MSO and IUL indexed features(3) | 0 | 0 | 14 | -8 | |||||||||||||||||||||
Balances, December 31, 2013 | $ | 158 | $ | 20 | $ | 20 | $ | -7 | |||||||||||||||||
At or For the Year Ended December 31, 2012: | |||||||||||||||||||||||||
Freestanding derivatives: | |||||||||||||||||||||||||
Equity contracts:(1) | |||||||||||||||||||||||||
Options | $ | 29 | $ | 2 | $ | 1 | $ | 0 | |||||||||||||||||
Net investment income (loss) | 0 | ||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||
GMIB reinsurance contracts (2) | 0 | 7 | 0 | -2 | |||||||||||||||||||||
Balances, December 31, 2012 | $ | 29 | $ | 9 | $ | 1 | $ | -2 | |||||||||||||||||
Reported in Other invested assets in MLOA's balance sheets. | |||||||||||||||||||||||||
Reported in Other assets in MLOA's balance sheets. | |||||||||||||||||||||||||
MSO and IUL are reported in Future policyholders' benefits and other policyholders' liabilities in the balance sheets. | |||||||||||||||||||||||||
The standardized ISDA Master Agreement under which MLOA conducts its OTC derivative transactions includes provisions for payment netting. In the normal course of business activities, if there is more than one derivative transaction with a single counterparty, MLOA will set-off the cash flows of those derivatives into a single amount to be exchanged in settlement of the resulting net payable or receivable with that counterparty. In the event of default, insolvency, or other similar event pre-defined under the ISDA Master Agreement that would result in termination of OTC derivatives transactions before their maturity, netting procedures would be applied to calculate a single net payable or receivable with the counterparty. | |||||||||||||||||||||||||
Under the ISDA Master Agreement, MLOA generally has executed a CSA with each of its OTC derivative counterparties that require both posting and accepting collateral either in the form of cash or high-quality securities, such as U.S. Treasury securities or those issued by government agencies. These CSAs are bilateral agreements that require collateral postings by the party “out-of-the-money” or in a net derivative liability position. Various thresholds for the amount and timing of collateralization of net liability positions are applicable. Consequently, the credit exposure of MLOA's OTC derivative contracts is limited to the net positive estimated fair value of those contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to CSAs. Derivatives are recognized at fair value in the balance sheets and are reported either as assets in Other invested assets or as liabilities in Other liabilities. MLOA nets the fair value of all derivative financial instruments with counterparties for which an ISDA Master Agreement and related CSA have been executed. | |||||||||||||||||||||||||
At December 31, 2013 and 2012, respectively, MLOA held $12 million and $0 million in cash and securities collateral delivered by trade counterparties, representing the fair value of the related derivative agreements. This unrestricted cash collateral is reported in Cash and cash equivalents, and the obligation to return it is reported in Other liabilities in the balance sheets. The aggregate fair value of all collateralized derivative transactions that were in a liability position at December 31, 2013 and 2012 was not material. | |||||||||||||||||||||||||
On June 10, 2013, new derivative regulations under Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act went into effect, requiring financial entities, including U.S. life insurers, to clear newly executed OTC interest rate swaps with central clearing houses, and to post larger sums of higher quality collateral, among other provisions. Counterparties subject to these new regulations are required to post initial margin to the clearing house as well as variation margin to cover any daily negative mark-to-market movements in the value of newly executed OTC interest rate swap contracts. Centrally cleared OTC interest rate swap contracts, protected by initial margin requirements and higher quality collateral-eligible assets, are expected to reduce the risk of loss in the event of counterparty default. MLOA has counterparty exposure to the clearing house and its clearing broker for futures and OTC derivative contracts. Since the introduction of these new derivative regulations, there have been no significant impacts from the Company's compliance as existing derivative positions are grandfathered. Similarly, MLOA does not expect the new regulations to materially increase the amount or change the quality of collateral that otherwise would have been imposed directly with its counterparties under CSAs. | |||||||||||||||||||||||||
The following table presents information about MLOA's offsetting of financial assets and liabilities and derivative instruments at December 31, 2013. | |||||||||||||||||||||||||
Offsetting of Financial Assets and Liabilities and Derivative Instruments | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Gross | |||||||||||||||||||||||||
Gross | Amounts | Net Amounts | |||||||||||||||||||||||
Amounts | Offset in the | Presented in the | |||||||||||||||||||||||
Recognized | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 20 | $ | 6 | $ | 14 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 20 | 6 | 14 | ||||||||||||||||||||||
Other financial instruments | 70 | 0 | 70 | ||||||||||||||||||||||
Other invested assets | $ | 90 | $ | 6 | $ | 84 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 6 | $ | 6 | $ | 0 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 6 | 6 | 0 | ||||||||||||||||||||||
Other financial liabilities | 83 | 0 | 83 | ||||||||||||||||||||||
Other liabilities | $ | 89 | $ | 6 | $ | 83 | |||||||||||||||||||
There were no derivatives not subject to ISDA Master Agreements at December 31, 2013. | |||||||||||||||||||||||||
The following table presents information about MLOA's gross collateral amounts that are not offset in the balance sheets at December 31, 2013. | |||||||||||||||||||||||||
Gross Collateral Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Net Amounts | Collateral (Received)/Held | ||||||||||||||||||||||||
Presented in the | Financial | Net | |||||||||||||||||||||||
Balance Sheets | Instruments | Cash | Amounts | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Counterparty A | $ | 6 | $ | 0 | $ | -6 | $ | 0 | |||||||||||||||||
Counterparty H | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Counterparty K | 2 | 0 | -2 | 0 | |||||||||||||||||||||
Counterparty L | 4 | 0 | -4 | 0 | |||||||||||||||||||||
Total Derivatives | $ | 13 | $ | 0 | $ | -12 | $ | 1 | |||||||||||||||||
Other financial assets | 71 | 0 | 0 | 71 | |||||||||||||||||||||
Other invested assets | $ | 84 | $ | 0 | $ | -12 | $ | 72 | |||||||||||||||||
The following table presents information about MLOA's offsetting of financial assets and liabilities and derivative instruments at 2012. | |||||||||||||||||||||||||
Offsetting of Financial Assets and Liabilities and Derivative Instruments | |||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Gross | |||||||||||||||||||||||||
Gross | Amounts | Net Amounts | |||||||||||||||||||||||
Amounts | Offset in the | Presented in the | |||||||||||||||||||||||
Recognized | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 2 | $ | 1 | $ | 1 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 2 | 1 | 1 | ||||||||||||||||||||||
Other financial instruments | 70 | 0 | 70 | ||||||||||||||||||||||
Other invested assets | $ | 72 | $ | 1 | $ | 71 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 1 | $ | 1 | $ | 0 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 1 | 1 | 0 | ||||||||||||||||||||||
Other financial liabilities | 52 | 0 | 52 | ||||||||||||||||||||||
Other liabilities | $ | 53 | $ | 1 | $ | 52 | |||||||||||||||||||
There were no derivatives not subject to ISDA Master Agreements at December 31, 2012. | |||||||||||||||||||||||||
The following table presents information about MLOA's gross collateral amounts that are not offset in the balance sheets at December 31, 2012. | |||||||||||||||||||||||||
Gross Collateral Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Net Amounts | Collateral (Received)/Held | ||||||||||||||||||||||||
Presented in the | Financial | Net | |||||||||||||||||||||||
Balance Sheets | Instruments | Cash | Amounts | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Counterparty H | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Total Derivatives | $ | 1 | $ | 0 | $ | 0 | $ | 1 | |||||||||||||||||
Other financial assets | 70 | 0 | 0 | 70 | |||||||||||||||||||||
Other invested assets | $ | 71 | $ | 0 | $ | 0 | $ | 71 | |||||||||||||||||
Net Investment Income (Loss) | |||||||||||||||||||||||||
The following table breaks out Net investment income (loss) by asset category: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 79 | $ | 97 | $ | 102 | |||||||||||||||||||
Mortgage loans on real estate | 2 | 9 | 10 | ||||||||||||||||||||||
Policy loans | 6 | 8 | 8 | ||||||||||||||||||||||
Derivative instruments | 8 | 0 | 0 | ||||||||||||||||||||||
Gross investment income (loss) | 95 | 114 | 120 | ||||||||||||||||||||||
Investment expenses | -3 | -4 | -4 | ||||||||||||||||||||||
Net Investment Income (Loss) | $ | 92 | $ | 110 | $ | 116 | |||||||||||||||||||
For 2013, Net investment income (loss) from derivatives included $2 million of realized gains (losses) on contracts closed during those periods and $6 million of unrealized gains (losses) on derivative positions at year end. | |||||||||||||||||||||||||
Investment Gains (Losses), Net | |||||||||||||||||||||||||
Investment gains (losses), net including changes in the valuation allowances and OTTI are as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 67 | $ | -5 | $ | -2 | |||||||||||||||||||
Impact of (repurchase) issuance of AllianceBernstein Units | 0 | -2 | 2 | ||||||||||||||||||||||
Mortgage loans on real estate | 1 | 2 | -1 | ||||||||||||||||||||||
Investment Gains (Losses), Net | $ | 68 | $ | -5 | $ | -1 |
VALUE_OF_BUSINESS_ACQUIRED
VALUE OF BUSINESS ACQUIRED | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Value Of Business Acquired [Abstract] | ' | |||||||||
Value Of Business Acquired | ' | |||||||||
4) VALUE OF BUSINESS ACQUIRED | ||||||||||
The following table presents MLOA's VOBA asset at December 31, 2013 and 2012: | ||||||||||
Gross | Accumulated | |||||||||
Carrying | Amortization | |||||||||
Amount | and Other | Net | ||||||||
(In Millions) | ||||||||||
VOBA | ||||||||||
31-Dec-13 | $ | 416 | $ | (398)(1) | $ | 18 | ||||
31-Dec-12 | $ | 416 | $ | -313 | $ | 103 | ||||
Includes reactivity to unrealized investment gains (losses) and $117 million of accelerated VOBA amortization resulting from the reinsurance agreement with Protective Life which is included in the deferred cost of reinsurance. | ||||||||||
For 2013, 2012 and 2011, amortization (negative amortization) expense related to VOBA was $11 million, $(13) million and $10 million, respectively. VOBA amortization is estimated to range between $1 million and $3 million annually through 2018. |
FAIR_VALUE_DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
FAIR VALUE DISCLOSURES | ' | |||||||||||||||||
5) FAIR VALUE DISCLOSURES | ||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below. Fair value measurements also are required on a non-recurring basis for certain assets, including goodwill, mortgage loans on real estate, equity real estate held for production of income, and equity real estate held for sale, only when an OTTI or other event occurs. When such fair value measurements are recorded, they must be classified and disclosed within the fair value hierarchy. At December 31, 2013 and 2012, no assets were required to be measured at fair value on a non-recurring basis. | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In Millions) | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity Securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 0 | $ | 624 | $ | 9 | $ | 633 | ||||||||||
U.S. Treasury, government and agency | 0 | 34 | 0 | 34 | ||||||||||||||
States and political subdivisions | 0 | 6 | 0 | 6 | ||||||||||||||
Commercial mortgage-backed | 0 | 0 | 24 | 24 | ||||||||||||||
Redeemable preferred stock | 8 | 8 | 0 | 16 | ||||||||||||||
Subtotal | 8 | 672 | 33 | 713 | ||||||||||||||
Other equity investments | 1 | 0 | 0 | 1 | ||||||||||||||
Options | 0 | 14 | 0 | 14 | ||||||||||||||
Cash equivalents | 127 | 0 | 0 | 127 | ||||||||||||||
Separate Accounts' assets | 1,823 | 15 | 0 | 1,838 | ||||||||||||||
Total Assets | $ | 1,959 | $ | 701 | $ | 33 | $ | 2,693 | ||||||||||
Liabilities: | ||||||||||||||||||
MSO and IUL indexed features’ liability | $ | 0 | $ | 14 | $ | 0 | $ | 14 | ||||||||||
Total Liabilities | $ | 0 | $ | 14 | $ | 0 | $ | 14 | ||||||||||
31-Dec-12 | ||||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity Securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 0 | $ | 1,684 | $ | 35 | $ | 1,719 | ||||||||||
U.S. Treasury, government and agency | 0 | 113 | 0 | 113 | ||||||||||||||
States and political subdivisions | 0 | 28 | 0 | 28 | ||||||||||||||
Foreign governments | 0 | 2 | 0 | 2 | ||||||||||||||
Commercial mortgage-backed | 0 | 0 | 35 | 35 | ||||||||||||||
Residential mortgage-backed(1) | 0 | 20 | 0 | 20 | ||||||||||||||
Asset-backed(2) | 0 | 5 | 6 | 11 | ||||||||||||||
Redeemable preferred stock | 37 | 61 | 0 | 98 | ||||||||||||||
Subtotal | 37 | 1,913 | 76 | 2,026 | ||||||||||||||
Other equity investments | 1 | 0 | 0 | 1 | ||||||||||||||
Cash equivalents | 145 | 0 | 0 | 145 | ||||||||||||||
GMIB reinsurance contracts | 0 | 0 | 7 | 7 | ||||||||||||||
Separate Accounts' assets | 1,623 | 15 | 0 | 1,638 | ||||||||||||||
Total Assets | $ | 1,806 | $ | 1,928 | $ | 83 | $ | 3,817 | ||||||||||
(1) Includes publicly traded agency pass-through securities and collateralized obligations. | ||||||||||||||||||
(2) Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans. | ||||||||||||||||||
At December 31, 2013 and 2012, respectively, the fair value of public fixed maturities is approximately $556 million and $1,557 million or approximately 20.6% and 40.9% of MLOA's total assets measured at fair value on a recurring basis (excluding GMIB reinsurance contracts measured at fair value on a recurring basis at December 31, 2012). The fair values of MLOA's public fixed maturity securities are generally based on prices obtained from independent valuation service providers and for which MLOA maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. Although each security generally is priced by multiple independent valuation service providers, MLOA ultimately uses the price received from the independent valuation service provider highest in the vendor hierarchy based on the respective asset type, with limited exception. To validate reasonableness, prices also are internally reviewed by those with relevant expertise through comparison with directly observed recent market trades. Consistent with the fair value hierarchy, public fixed maturity securities validated in this manner generally are reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the pricing information received from independent valuation service providers is not reflective of market activity or other inputs observable in the market, MLOA may challenge the price through a formal process in accordance with the terms of the respective independent valuation service provider agreement. If as a result it is determined that the independent valuation service provider is able to reprice the security in a manner agreed as more consistent with current market observations, the security remains within Level 2. Alternatively, a Level 3 classification may result if the pricing information then is sourced from another vendor, non-binding broker quotes, or internally-developed valuations for which MLOA's own assumptions about market-participant inputs would be used in pricing the security. | ||||||||||||||||||
At December 31, 2013 and 2012, respectively, the fair value of private fixed maturities is approximately $157 million and $469 million or approximately 5.8% and 12.3% of MLOA's total assets measured at fair value on a recurring basis. The fair values of MLOA's private fixed maturities, which primarily are comprised of investments in private placement securities generally are determined using a discounted cash flow model. In certain cases, these models use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 2. For certain private fixed maturities, the discounted cash flow model may also incorporate unobservable inputs, which reflect MLOA's own assumptions about the inputs market participants would use in pricing the asset. To the extent management determines that such unobservable inputs are significant to the fair value measurement of a security, a Level 3 classification generally is made. | ||||||||||||||||||
At December 31, 2013 and 2012, respectively, investments classified as Level 1 comprise approximately 72.8% and 47.4% of assets measured at fair value on a recurring basis and primarily include redeemable preferred stock, cash equivalents and Separate Accounts assets. Fair value measurements classified as Level 1 include exchange-traded prices of fixed maturities, equity securities and net asset values for transacting subscriptions and redemptions of mutual fund shares held by Separate Accounts. Cash equivalents classified as Level 1 include money market accounts, overnight commercial paper and highly liquid debt instruments purchased with an original maturity of three months or less, and are carried at cost as a proxy for fair value measurement due to their short-term nature. | ||||||||||||||||||
At December 31, 2013 and 2012, respectively, investments classified as Level 2 comprise approximately 26.0% and 50.6% of assets measured at fair value on a recurring basis and primarily include U.S. government and agency securities and certain corporate debt securities, such as public and private fixed maturities. As market quotes generally are not readily available or accessible for these securities, their fair value measures are determined utilizing relevant information generated by market transactions involving comparable securities and often are based on model pricing techniques that effectively discount prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security's duration, also taking into consideration issuer-specific credit quality and liquidity. | ||||||||||||||||||
Observable inputs generally used to measure the fair value of securities classified as Level 2 include benchmark yields, reported secondary trades, issuer spreads, benchmark securities and other reference data. Additional observable inputs are used when available, and as may be appropriate, for certain security types, such as prepayment, default, and collateral information for the purpose of measuring the fair value of mortgage- and asset-backed securities. At December 31, 2012, $20 million of AAA-rated mortgage- and asset-backed securities are classified as Level 2 for which the observability of market inputs to their pricing models is supported by sufficient, albeit more recently contracted, market activity in these sectors. At December 31, 2013 MLOA did not own any AAA-rated mortgage- and asset-backed securities. | ||||||||||||||||||
MLOA currently offers indexed investment options in the IUL product and in the MSO investment option available in some life contracts. These investment options, which depending on the product and on the index selected can currently have 1 or 3 year terms, provide for participation in the performance of specified indices up to a segment-specific declared maximum rate. Under certain conditions that vary by product, e.g. holding these segments for the full term, these segments also shield policyholders from some or all negative investment performance associated with these indices. These investment options have defined formulaic liability amounts, and the current values of the option component of these segment reserves are accounted for as Level 2 embedded derivatives. The fair values of these embedded derivatives are based on prices obtained from independent valuation service providers. | ||||||||||||||||||
At December 31, 2013 and 2012, respectively, investments classified as Level 3 comprise approximately 1.2% and 2.0% of assets measured at fair value on a recurring basis and primarily include commercial mortgage-backed securities (“CMBS”) and corporate debt securities. Determinations to classify fair value measures within Level 3 of the valuation hierarchy generally are based upon the significance of the unobservable factors to the overall fair value measurement. Included in the Level 3 classification at December 31, 2012, were approximately $9 million of fixed maturities with indicative pricing obtained from brokers that otherwise could not be corroborated to market observable data. MLOA applies various due-diligence procedures, as considered appropriate, to validate these non-binding broker quotes for reasonableness, based on its understanding of the markets, including use of internally-developed assumptions about inputs a market participant would use to price the security. In addition, approximately $24 million and $41 million of mortgage- and asset-backed securities, including CMBS, are classified as Level 3 at December 31, 2013 and 2012, respectively. At June 30, 2013, MLOA changed its methodology for measuring the fair value of CMBS securities below the senior AAA tranche from a risk-adjusted present value technique to pricing obtained from an independent valuation service vendor as returning liquidity in CMBS markets contributed to the availability of more reliable and representative measures of fair value. In applying the risk-adjusted present value technique in periods prior to June 30, 2013, MLOA adjusted the projected cash flows of these securities for origination year, default metrics, and level of subordination, with the objective of maximizing observable inputs, and weighted the result with a 10% attribution to pricing sourced from a third party service whose process placed significant reliance on market trading activity. | ||||||||||||||||||
Level 3 amounts at December 31, 2012 also include the GMIB reinsurance contract asset which was accounted for as derivative contract. The GMIB reinsurance contract asset's fair value reflected the present value of reinsurance premiums and recoveries and risk margins over a range of market consistent economic scenarios. The valuation of the GMIB reinsurance contract asset incorporates significant non-observable assumptions related to policyholder behavior, risk margins and projections of equity Separate Account funds consistent with the S&P 500 Index. The credit risks of the counterparty and of MLOA are considered in determining the fair values of its GMIB reinsurance contract asset, after taking into account the effects of collateral arrangements. Incremental adjustment to the swap curve, adjusted for non-performance risk, is made to the resulting fair values of the GMIB reinsurance contract asset to reflect change in the claims-paying ratings of counterparties to the reinsurance treaties. After giving consideration to collateral arrangements, MLOA made no adjustment to reduce the fair value of its GMIB asset at December 31, 2012 to recognize incremental counterparty non-performance risk. | ||||||||||||||||||
In 2013, there were no AFS fixed maturities transferred from Level 2 into the Level 3 or from Level 3 to Level 2 classification. | ||||||||||||||||||
In 2012, AFS fixed maturities with fair values of $3 million were transferred from Level 2 into the Level 3 classification. These transfers in the aggregate represent approximately 0.4% of total equity at December 31, 2012. | ||||||||||||||||||
The table below presents a reconciliation for all Level 3 assets at December 31, 2013 and 2012, respectively. | ||||||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Commercial | GMIB | |||||||||||||||||
Mortgage- | Asset- | Reinsurance | ||||||||||||||||
Corporate | backed | backed | Contracts | |||||||||||||||
(In Millions) | ||||||||||||||||||
Balance, January 1, 2013 | $ | 35 | $ | 35 | $ | 6 | $ | 7 | ||||||||||
Total gains (losses), realized and unrealized, included in: | ||||||||||||||||||
Earnings (loss) as: | ||||||||||||||||||
Net investment income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||
Investment gains (losses), net | 2 | -9 | 2 | 0 | ||||||||||||||
Increase (decrease) in the fair value of | ||||||||||||||||||
reinsurance contracts | 0 | 0 | 0 | -7 | ||||||||||||||
Subtotal | 2 | -9 | 2 | -7 | ||||||||||||||
Other comprehensive income (loss) | -2 | -1 | -2 | 0 | ||||||||||||||
Purchases | 0 | 0 | 0 | 0 | ||||||||||||||
Sales | -26 | -1 | -6 | 0 | ||||||||||||||
Transfers into Level 3(1) | 0 | 0 | 0 | 0 | ||||||||||||||
Balance, December 31, 2013 | $ | 9 | $ | 24 | $ | 0 | $ | 0 | ||||||||||
Balance, January 1, 2012 | $ | 34 | $ | 29 | $ | 5 | $ | 9 | ||||||||||
Total gains (losses), realized and unrealized included in: | ||||||||||||||||||
Earnings (loss) as: | ||||||||||||||||||
Net investment income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||
Investment gains (losses), net | 1 | -7 | 0 | 0 | ||||||||||||||
Increase (decrease) in the fair value of | ||||||||||||||||||
reinsurance contracts | 0 | 0 | 0 | -2 | ||||||||||||||
Subtotal | $ | 1 | $ | -7 | $ | 0 | $ | -2 | ||||||||||
Other comprehensive income (loss) | 0 | 13 | 1 | 0 | ||||||||||||||
Sales | -3 | 0 | 0 | 0 | ||||||||||||||
Transfers into Level 3(1) | 3 | 0 | 0 | 0 | ||||||||||||||
Balance, December 31, 2012 | $ | 35 | $ | 35 | $ | 6 | $ | 7 | ||||||||||
Transfers into/out of Level 3 classification are reflected at beginning-of-period fair values. | ||||||||||||||||||
The table below details changes in unrealized gains (losses) for 2013 and 2012 by category for Level 3 assets still held at December 31, 2013 and 2012, respectively. | ||||||||||||||||||
Earnings (Loss) | ||||||||||||||||||
Increase | ||||||||||||||||||
(Decrease) in the | ||||||||||||||||||
Fair Value of | ||||||||||||||||||
Reinsurance | ||||||||||||||||||
Contracts | OCI | |||||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Full Year 2013 | ||||||||||||||||||
Still Held at December 31, 2013: | ||||||||||||||||||
Change in unrealized gains (losses): | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Commercial mortgage-backed | 0 | -2 | ||||||||||||||||
Other fixed maturities, available-for-sale | 0 | 0 | ||||||||||||||||
Total | $ | 0 | $ | -2 | ||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Full Year 2012 | ||||||||||||||||||
Still Held at December 31, 2012: | ||||||||||||||||||
Change in unrealized gains (losses): | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Commercial mortgage-backed | 0 | 13 | ||||||||||||||||
Other fixed maturities, available-for-sale | 0 | 1 | ||||||||||||||||
Subtotal | $ | 0 | $ | 14 | ||||||||||||||
GMIB reinsurance contracts | -2 | 0 | ||||||||||||||||
Total | $ | -2 | $ | 14 | ||||||||||||||
The following table discloses quantitative information about Level 3 fair value measurements by category for assets and liabilities as of December 31, 2012. At December 31, 2013 all Level 3 investments primarily consist of certain debt securities with limited trading activity, including corporate and CMBS instruments. Their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. | ||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||
Fair | Valuation | Significant | ||||||||||||||||
Value | Technique | Unobservable Input | Range | |||||||||||||||
December 31, 2012: | (In Millions) | |||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 11 | Matrix pricing model | Spread over the industry-specific | ||||||||||||||
benchmark yield curve | 600 bps - 650 bps | |||||||||||||||||
Commercial mortgage-backed | 35 | Discounted Cash flow | Constant default rate | 3.0% - 25.0% | ||||||||||||||
Probability of default | 55.00% | |||||||||||||||||
Loss severity | 49.00% | |||||||||||||||||
Discount rate | 3.72% - 13.42% | |||||||||||||||||
GMIB reinsurance contracts | 7 | Discounted Cash flow | Lapse Rates | 2.5% - 27.5% | ||||||||||||||
Withdrawal Rates | 3.50% | |||||||||||||||||
GMIB Utilization Rates | 0.0% - 15.0% | |||||||||||||||||
Non-performance risk | 13.5 bps | |||||||||||||||||
Volatility rates - Equity | 24.0%- 36.0% | |||||||||||||||||
Excluded from the table above at December 31, 2013 and 2012, are approximately $33 million and $30 million, respectively, Level 3 fair value measurements of investments for which the underlying quantitative inputs are not developed by MLOA and are not reasonably available. The fair value measurements of these Level 3 investments comprise approximately 100.0% and 39.5% of total assets classified as Level 3 and represent only 1.2% and 0.8% of total assets measured at fair value on a recurring basis. These investments primarily consist of certain privately placed debt securities with limited trading activity, including asset-backed instruments, and their fair values generally reflect unadjusted prices obtained from independent valuation service providers and indicative, non-binding quotes obtained from third-party broker-dealers recognized as market participants. Significant increases or decreases in the fair value amounts received from these pricing sources may result in MLOA's reporting significantly higher or lower fair value measurements for these Level 3 investments. | ||||||||||||||||||
Included in the table above at December 31, 2012 are approximately $11 million fair value of privately placed, available-for-sale corporate debt securities classified as Level 3 that is determined by application of a matrix pricing model, representing approximately 31.4% of the total fair value of Level 3 securities in the corporate fixed maturities asset class. The significant unobservable input to the matrix pricing model is the spread over the industry-specific benchmark yield curve. Generally, an increase or decrease in spreads would lead to directionally inverse movement in the fair value measurements of these securities. | ||||||||||||||||||
At December 31, 2012, commercial mortgage-backed securities classified as Level 3 consist of holdings subordinate to the AAA-tranche position and for which MLOA applies a discounted cash flow methodology to measure fair value. The process for determining fair value first adjusts the contractual principal and interest payments to reflect performance expectations and then discounts the securities' cash flows to reflect an appropriate risk-adjusted return. The significant unobservable inputs used in these fair value measurements are default rate and probability, loss severity, and the discount rate. An increase either in the cumulative default rate, probability of default, or loss severity would result in a decrease in the fair value of these securities; generally, those assumptions would change in a directionally similar manner. A decrease in the discount rate would result in directionally inverse movement in the fair value measurement of these securities. At December 31, 2013, all CMBS securities were valued using prices obtained from an independent valuation service vendor and therefore were excluded from the quantitative disclosures discussed above. | ||||||||||||||||||
Significant unobservable inputs with respect to the fair value measurement of the Level 3 GMIB reinsurance contract asset and the Level 3 liabilities identified in the table above were developed using Company data. Validations of unobservable inputs are performed to the extent MLOA has experience. When an input is changed the model is updated and the results of each step of the model are analyzed for reasonableness. | ||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of MLOA's GMIB reinsurance contract asset were lapse rates, withdrawal rates and GMIB utilization rates. Significant increases in GMIB utilization rates or decreases in lapse or withdrawal rates in isolation would tend to increase the GMIB reinsurance contract asset. | ||||||||||||||||||
Fair value measurement of the GMIB reinsurance contract asset included dynamic lapse and GMIB utilization assumptions whereby projected contractual lapses and GMIB utilization reflect the projected net amount of risks of the contract. As the net amount of risk of a contract increases, the assumed lapse rate decreases and the GMIB utilization increases. Increases in volatility would increase the asset. | ||||||||||||||||||
The carrying values and fair values at December 31, 2013 and December 31, 2012 for financial instruments not otherwise disclosed in Note 3 are presented in the table below. Certain financial instruments are exempt from the requirements for fair value disclosure, such as insurance liabilities other than financial guarantees and investment contracts and pension and other postretirement obligations. | ||||||||||||||||||
Carrying | Fair Value | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In Millions) | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Mortgage loans on real estate | $ | 28 | $ | 0 | $ | 0 | $ | 28 | $ | 28 | ||||||||
Policyholders liabilities: Investment contracts | 193 | 0 | 0 | 196 | 196 | |||||||||||||
31-Dec-12 | ||||||||||||||||||
Mortgage loans on real estate | $ | 45 | $ | 0 | $ | 0 | $ | 46 | $ | 46 | ||||||||
Policyholders liabilities: Investment contracts | 200 | 0 | 0 | 233 | 233 | |||||||||||||
Fair values for commercial mortgage loans on real estate are measured by discounting future contractual cash flows to be received on the mortgage loan using interest rates at which loans with similar characteristics and credit quality would be made. The discount rate is derived from taking the appropriate U.S. Treasury rate with a like term to the remaining term of the loan and adding a spread reflective of the risk premium associated with the specific loan. Fair values for mortgage loans anticipated to be foreclosed and problem mortgage loans are limited to the fair value of the underlying collateral, if lower. | ||||||||||||||||||
The fair values for MLOA's supplementary contracts not involving life contingencies (“SCNILC”), single premium deferred annuities and certain annuities, which are included in Policyholder's account balances, are estimated using projected cash flows discounted at rates reflecting current market rates. Significant unobservable inputs reflected in the cash flows include lapse rates and withdrawal rates. Incremental adjustments may be made to the fair value to reflect non-performance risk. |
GMDB_GMIB_AND_NO_LAPSE_GUARANT
GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Gmdb Gmib And No Lapse Guarantee Features [Abstract] | ' | ||||||||||||||||||
GMDB GMIB AND NO LAPSE GUARANTEE FEATURES | ' | ||||||||||||||||||
6) GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES | |||||||||||||||||||
A) Variable Annuity Contracts - GMDB and GMIB | |||||||||||||||||||
MLOA has certain variable annuity contracts with GMDB and GMIB features in-force that guarantee one of the following: | |||||||||||||||||||
Return of Premium: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals); | |||||||||||||||||||
Ratchet: the benefit is the greatest of current account value, premiums paid (adjusted for withdrawals), or the highest account value on any anniversary up to contractually specified ages (adjusted for withdrawals); | |||||||||||||||||||
Roll-Up: the benefit is the greater of current account value or premiums paid (adjusted for withdrawals) accumulated at contractually specified interest rates up to specified ages; or | |||||||||||||||||||
Combo: the benefit is the greater of the ratchet benefit or the roll-up benefit which may include a five year or an annual reset. | |||||||||||||||||||
The following table summarizes the GMDB and GMIB liabilities, before reinsurance ceded, reflected in the General Account in future policy benefits and other policyholders' liabilities: | |||||||||||||||||||
GMDB | GMIB | Total | |||||||||||||||||
(In Millions) | |||||||||||||||||||
Balance at January 1, 2011 | $ | 6 | $ | 2 | $ | 8 | |||||||||||||
Paid guarantee benefits | -2 | 0 | -2 | ||||||||||||||||
Other changes in reserve | 3 | 0 | 3 | ||||||||||||||||
Balance at December 31, 2011 | 7 | 2 | 9 | ||||||||||||||||
Paid guarantee benefits | -2 | 0 | -2 | ||||||||||||||||
Other changes in reserve | 3 | 0 | 3 | ||||||||||||||||
Balance at December 31, 2012 | 8 | 2 | 10 | ||||||||||||||||
Paid guarantee benefits | -3 | 0 | -3 | ||||||||||||||||
Other changes in reserve | 0 | 0 | 0 | ||||||||||||||||
Balance at December 31, 2013 | $ | 5 | $ | 2 | $ | 7 | |||||||||||||
Related GMDB reinsurance ceded amounts were: | |||||||||||||||||||
GMDB | |||||||||||||||||||
(In Millions) | |||||||||||||||||||
Balance at January 1, 2011 | $ | 3 | |||||||||||||||||
Paid guarantee benefits | 0 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2011 | 4 | ||||||||||||||||||
Paid guarantee benefits | 0 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2012 | 5 | ||||||||||||||||||
Paid guarantee benefits | -1 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2013 | $ | 5 | |||||||||||||||||
The GMIB reinsurance contracts through September 30, 2013 were considered derivatives and were reported at fair value. As a result of the Reinsurance agreement with Protective Life, MLOA reinsured 100% of the insurance risk and benefits associated with the GMIB reinsurance contracts to Protective Life. As a result, MLOA's GMIB reinsurance contracts are no longer considered an embedded derivative and the ceded reserve is calculated on the same basis as the gross reserve. At December 31, 2013 the GMIB reinsurance ceded liability amount totaled $2 million. | |||||||||||||||||||
The December 31, 2013 values for variable annuity contracts in-force on such date with GMDB and GMIB features are presented in the following table. For contracts with the GMDB feature, the net amount at risk in the event of death is the amount by which the GMDB benefits exceed related account values. For contracts with the GMIB feature, the net amount at risk in the event of annuitization is the amount by which the present value of the GMIB benefits exceeds related account values, taking into account the relationship between current annuity purchase rates and GMIB guaranteed annuity purchase rates. Since variable annuity contracts with GMDB guarantees may also offer GMIB guarantees in the same contract, the GMDB and GMIB amounts listed are not mutually exclusive: | |||||||||||||||||||
Return | |||||||||||||||||||
of | |||||||||||||||||||
Premium | Ratchet | Roll-Up | Combo | Total | |||||||||||||||
(Dollars In Millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | $ | 119 | $ | 192 | $ | N/A | $ | 30 | $ | 341 | |||||||||
Separate Accounts | $ | 321 | $ | 407 | $ | N/A | $ | 62 | $ | 790 | |||||||||
Net amount at risk, gross | $ | 2 | $ | 33 | $ | N/A | $ | 11 | $ | 46 | |||||||||
Net amount at risk, net of | |||||||||||||||||||
amounts reinsured | $ | 0 | $ | 0 | $ | N/A | $ | 0 | $ | 0 | |||||||||
Average attained age | |||||||||||||||||||
of contractholders | 66.2 | 66.9 | N/A | 67 | 66.6 | ||||||||||||||
Percentage of contractholders | |||||||||||||||||||
over age 70 | 26.80% | 27.50% | N/A | 26.70% | 27.20% | ||||||||||||||
Contractually specified | |||||||||||||||||||
interest rates | N/A | N/A | N/A | 5.00% | 5.00% | ||||||||||||||
GMIB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | N/A | N/A | $ | 30 | $ | N/A | $ | 30 | |||||||||||
Separate Accounts | N/A | N/A | $ | 61 | $ | N/A | $ | 61 | |||||||||||
Net amount at risk, gross | N/A | N/A | $ | 2 | $ | N/A | $ | 2 | |||||||||||
Net amount at risk, net of | |||||||||||||||||||
amounts reinsured | N/A | N/A | $ | 0 | $ | N/A | $ | 0 | |||||||||||
Weighted average years | |||||||||||||||||||
remaining until annuitization | N/A | N/A | 1.5 | N/A | 1.5 | ||||||||||||||
Contractually specified | |||||||||||||||||||
interest rates | N/A | N/A | 5.00% | N/A | 5.00% | ||||||||||||||
The liabilities for MSO and IUL features, not included above, was $14 million at December 31, 2013, which are accounted for as embedded derivatives. The liabilities for MSO and IUL reflect the present value of expected future payments assuming the segments are held to maturity. | |||||||||||||||||||
Separate Account Investments by Investment Category Underlying GMDB and GMIB Features | |||||||||||||||||||
The total account values of variable annuity contracts with GMDB and GMIB features include amounts allocated to the guaranteed interest option, which is part of the General Account and variable investment options that invest through Separate Accounts in variable insurance trusts. The following table presents the aggregate fair value of assets, by major investment category, held by Separate Accounts that support variable annuity contracts with GMDB and GMIB benefits and guarantees. The investment performance of the assets impacts the related account values and, consequently, the net amount of risk associated with the GMDB and GMIB benefits and guarantees. Since variable annuity contracts with GMDB benefits and guarantees may also offer GMIB benefits and guarantees in each contract, the GMDB and GMIB amounts listed are not mutually exclusive: | |||||||||||||||||||
Investment in Variable Insurance Trust Mutual Funds | |||||||||||||||||||
December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In Millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Equity | $ | 696 | $ | 643 | |||||||||||||||
Fixed income | 57 | 73 | |||||||||||||||||
Balanced | 16 | 15 | |||||||||||||||||
Other | 21 | 28 | |||||||||||||||||
Total | $ | 790 | $ | 759 | |||||||||||||||
GMIB: | |||||||||||||||||||
Equity | $ | 52 | $ | 47 | |||||||||||||||
Fixed income | 8 | 9 | |||||||||||||||||
Other | 1 | 3 | |||||||||||||||||
Total | $ | 61 | $ | 59 | |||||||||||||||
C) Variable and Interest-Sensitive Life Insurance Policies - No Lapse Guarantee | |||||||||||||||||||
The no lapse guarantee feature contained in variable and interest-sensitive life insurance policies keeps them in force in situations where the policy value is not sufficient to cover monthly charges then due. The no lapse guarantee remains in effect so long as the policy meets a contractually specified premium funding test and certain other requirements. At December 31, 2013 and 2012, MLOA had liabilities of $1 million and $1 million, respectively, for no lapse guarantees reflected in the General Account in future policy benefits and other policyholders' liabilities. | |||||||||||||||||||
REINSURANCE
REINSURANCE | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Reinsurance Agreements [Abstract] | ' | ||||||||||
REINSURANCE | ' | ||||||||||
7) REINSURANCE | |||||||||||
On October 1, 2013, MLOA entered into an agreement with Protective Life to reinsure an in-force book of life insurance and annuity policies, written primarily prior to 2004. As of December 31, 2013 included in MLOA's balance sheet were Amounts due from reinsurers of $1,207 million (net of ceded policy loans) relating to the reinsurance agreement with Protective Life. During 2013, total premiums ceded to Protective Life were $6 million and policyholder benefits ceded in 2013 were $18 million. As of December 31, 2013 Protective Life is rated AA-. As a result of the reinsurance agreement Protective Life will receive all the benefits from and assumes all the risks from other reinsurance contracts to which MLOA was a party for the block of business reinsured. | |||||||||||
For business not reinsured with Protective Life, MLOA generally reinsures its variable life, interest-sensitive life and term life insurance policies on an excess of retention basis. In 2013, MLOA generally retained up to a maximum of $4 million of mortality risk on single-life policies and up to a maximum of $6 million of mortality risk on second-to-die policies. For amounts applied for in excess of those limits, reinsurance is ceded to AXA Equitable Life Insurance Company (“AXA Equitable”), an affiliate and wholly-owned subsidiary of AXA Financial, up to a combined maximum of $20 million of risk on single-life policies and up to a maximum of $25 million on second-to-die policies. For amounts issued in excess of those limits MLOA typically obtained reinsurance from unaffiliated third parties. The reinsurance arrangements obligate the reinsurer to pay a portion of any death claim in excess of the amount MLOA retained in exchange for an agreed-upon premium. | |||||||||||
Based on management's estimates of future contract cash flows and experience, the estimated fair values of the GMIB reinsurance contracts, considered derivatives at December 31, 2012 was $7 million. The increases (decreases) in fair value were $(2) million and $7 million for 2012 and 2011, respectively. | |||||||||||
At December 31, 2013 and 2012, respectively, reinsurance recoverables related to insurance contracts amounted to $1,304 million and $158 million, of which $51 million in 2013 (not including Protective Life) and $53 million in 2012 related to one specific reinsurer, which is rated AA- with the remainder of the reinsurers rated BBB and above or not rated. A contingent liability exists with respect to reinsurance should the reinsurers be unable to meet their obligations. MLOA evaluates the financial condition of its reinsurers in an effort to minimize its exposure to significant losses from reinsurer insolvencies. | |||||||||||
The following table summarizes the effect of reinsurance: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(In Millions) | |||||||||||
Direct premiums | $ | 72 | $ | 56 | $ | 68 | |||||
Assumed | 1 | 2 | 2 | ||||||||
Reinsurance ceded | -48 | -26 | -28 | ||||||||
Premiums | $ | 25 | $ | 32 | $ | 42 | |||||
Variable Life and Investment-type Product Policy Fee Income Ceded | $ | 31 | $ | 29 | $ | 31 | |||||
Policyholders' Benefits Ceded | $ | 125 | $ | 84 | $ | 39 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
RELATED PARTY TRANSACTIONS | ' |
8) RELATED PARTY TRANSACTIONS | |
In 2013, MLOA used a portion of the consideration received from the reinsurance agreement with Protective to return $200 million of capital to its parent AEFS and to donate $20 million to AXA Foundation, Inc. (the “Foundation”). The Foundation was organized for the purpose of distributing grants to various tax-exempt charitable organizations and administering various matching gift programs for AXA Equitable its subsidiaries and affiliates, including MLOA. | |
In August 2012, MLOA sold its entire portfolio of agricultural mortgage loans on real estate to AXA Equitable, an affiliate, in exchange for $42 million dollars in cash. MLOA recorded a pre-tax net realized gain of $3 million related to the sale. | |
Under its service agreement with AXA Equitable, personnel services, employee benefits, facilities, supplies and equipment are provided to MLOA to conduct its business. The associated costs related to the service agreement are allocated to MLOA based on methods that management believes are reasonable, including a review of the nature of such costs and activities performed to support MLOA. As a result of such allocations, MLOA incurred expenses of $89 million, $57 million and $54 million for 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, respectively, MLOA reported a $26 million and $23 million payable to AXA Equitable in connection with its service agreement. | |
Various AXA affiliates, including MLOA, cede a portion of their life, health and catastrophe insurance business through reinsurance agreements to AXA Global Life in beginning in 2010 (and AXA Cessions in 2009 and prior), AXA affiliated reinsurers. Beginning in 2008 AXA Global Life, in turn, retrocedes a quota share portion of these risks to MLOA on a one-year term basis. | |
MLOA cedes a portion of its life business through excess of retention treaties to AXA Equitable on a yearly renewal term basis and reinsured the no lapse guarantee riders through AXA RE Arizona Company. | |
During 2013, 2012 and 2011, premiums, claims and expenses assumed and ceded under these agreements were not significant. | |
In 2013, 2012 and 2011, respectively, MLOA paid AXA Distribution and its subsidiaries $47 million, $32 million and $24 million of commissions and fees for sales of insurance products. MLOA charged AXA Distribution's subsidiaries $29 million, $25 million and $3 million, respectively, for their applicable share of operating expenses in 2013, 2012 and 2011, pursuant to the Agreements for Services. | |
In addition to the AXA Equitable service agreement, MLOA has various other service and investment advisory agreements with affiliates. The amount of expenses incurred by MLOA related to these agreements were $2 million, $2 million and $2 million for 2013, 2012 and 2011, respectively. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2013 | |
Shared Based Compensation [Abstract] | ' |
SHARE BASED OMPENSATION | ' |
9) SHARE-BASED COMPENSATION | |
Certain employees of AXA Equitable, who perform services on a full-time basis for MLOA, participate in various share-based payment arrangements sponsored by AXA Financial. MLOA was allocated $3 million, $3 million and $1 million of compensation costs, included in Compensation and benefits in the statement of Earnings (Loss), for share-based payment arrangements during 2013, 2012 and 2011, respectively. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Taxes [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
10) INCOME TAXES | |||||||||||||
A summary of the income tax (expense) benefit in the statements of earnings (loss) follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Income tax (expense) benefit: | |||||||||||||
Current (expense) benefit | $ | -90 | $ | -4 | $ | 39 | |||||||
Deferred (expense) benefit | 74 | -2 | -38 | ||||||||||
Total | $ | -16 | $ | -6 | $ | 1 | |||||||
The Federal income taxes attributable to operations are different from the amounts determined by multiplying the earnings (loss), before income taxes by the expected Federal income tax rate of 35%. The sources of the difference and their tax effects are as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Tax at statutory rate | $ | -15 | $ | -15 | $ | -26 | |||||||
Dividends received deduction | 1 | 2 | 2 | ||||||||||
Tax settlement | 0 | 9 | 7 | ||||||||||
Valuation allowance | 0 | 0 | 19 | ||||||||||
Prior year adjustment | -2 | 0 | 0 | ||||||||||
Other | 0 | -2 | -1 | ||||||||||
Income Tax (Expense) Benefit | $ | -16 | $ | -6 | $ | 1 | |||||||
MLOA recorded an out-of-period adjustment in its financial statements as of and for the year ended December 31, 2013, increasing Current and deferred income taxes and Income tax expense by $2 million. MLOA has concluded the amount is not material. | |||||||||||||
MLOA recognized a tax benefit in 2012 of $9 million related to the settlement with the IRS of the audit for tax years 2004 - 2007. The tax benefit for 2011 reflected a benefit in the amount of $19 million related to the determination that the valuation allowance previously established on deferred tax assets related to net operating loss carry forwards was no longer necessary and a $7 million benefit in settlement of refund claims for tax years 1994 - 1997. | |||||||||||||
The components of the net deferred income taxes are as follows: | |||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
(In Millions) | |||||||||||||
Reserves and reinsurance | $ | 77 | $ | 0 | $ | 0 | $ | 21 | |||||
DAC | 0 | 56 | 0 | 46 | |||||||||
VOBA | 0 | 6 | 0 | 34 | |||||||||
Investments | 0 | 13 | 0 | 25 | |||||||||
Goodwill and other intangible assets | 0 | 9 | 0 | 9 | |||||||||
Other | 0 | 7 | 8 | 0 | |||||||||
Total | $ | 77 | $ | 91 | $ | 8 | $ | 135 | |||||
MLOA does not provide income taxes on the undistributed earnings related to its investment in AllianceBernstein units except to the extent that such earnings are not permanently invested outside the United States. As of December 31, 2013, $6 million of accumulated undistributed earnings related to its investment in AllianceBernstein units were permanently invested. At existing applicable income tax rates, additional taxes of approximately $2 million would need to be provided if such earnings were remitted. | |||||||||||||
At December 31, 2013 and 2012, respectively, the total amount of unrecognized tax benefits were $5 million and $4 million, all of which would affect the effective tax rate. | |||||||||||||
MLOA recognizes accrued interest and penalties related to unrecognized tax benefits in tax (expense) benefit. Interest and penalties included in the amounts of unrecognized tax benefits at December 31, 2013 and 2012 were $0 million and $1 million, respectively. Tax (expense) benefit for 2013 reflected a benefit of $0 million in interest expense related to unrecognized tax benefits. | |||||||||||||
A reconciliation of unrecognized tax benefits (excluding interest and penalties) follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Balance, beginning of year | $ | 4 | $ | 17 | $ | 16 | |||||||
Additions for tax positions of prior years | 1 | 1 | 1 | ||||||||||
Reductions for tax positions of prior years | 0 | -2 | 0 | ||||||||||
Settlements with tax authorities | 0 | -12 | 0 | ||||||||||
Balance, End of Year | $ | 5 | $ | 4 | $ | 17 | |||||||
In 2012, the IRS concluded its examination of the tax returns of MONY Life and its subsidiaries from the date of its acquisition by AXA Financial in 2004 through 2007. The completion of this examination resulted in the release of $12 million of unrecognized tax benefits for MLOA. It is reasonably possible that the total amounts of unrecognized tax benefits will change within the next 12 months. The possible change in the amount of unrecognized tax benefits cannot be estimated at this time. | |||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income Loss [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME LOSS | ' | ||||||||||||
11) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
AOCI represents cumulative gains (losses) on investments that are not reflected in earnings (loss). The balances for the past three years follow: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Unrealized gains (losses) on investments, net of adjustments | $ | 8 | $ | 82 | $ | 55 | |||||||
Total Accumulated Other Comprehensive Income (Loss) | $ | 8 | $ | 82 | $ | 55 | |||||||
The components of OCI for the past three years follow: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Change in net unrealized gains (losses) on investments: | |||||||||||||
Net unrealized gains (losses) arising during the year | $ | -58 | $ | 28 | $ | 22 | |||||||
(Gains) losses reclassified into net earnings (loss) during the year(1) | -44 | 3 | 1 | ||||||||||
Change in net unrealized gains (losses) on investments | -102 | 31 | 23 | ||||||||||
Adjustments for DAC and VOBA and deferred income tax (expense) benefit | 28 | -4 | -13 | ||||||||||
Other Comprehensive Income (Loss), net of adjustments and (net of deferred | |||||||||||||
income tax expense (benefit) of $(40) million, $15 million and $6 million | $ | -74 | $ | 27 | $ | 10 | |||||||
See “Reclassification adjustments” in Note 3. Reclassification amounts presented net of income tax expense (benefit) of $24 million, $(2) million and $(1) million for 2013, 2012 and 2011, respectively. | |||||||||||||
Investment gains and losses reclassified from AOCI to net earnings (loss) primarily consist of realized gains (losses) on sales and OTTI of AFS securities and are included in Total investment gains (losses), net on the statements of earnings (loss). Amounts presented in the table above are net of tax.. |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2013 | |
Litigation [Abstract] | ' |
LITIGATION | ' |
12) LITIGATION | |
Insurance Litigation | |
MLOA is involved in various legal actions and proceedings in connection with its business. Some of the actions and proceedings have been brought on behalf of various alleged classes of claimants and certain of these claimants seek damages of unspecified amounts. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on MLOA's financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards that bear little or no relation to actual economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given matter. | |
Insurance Regulatory Matters | |
MLOA is subject to various statutory and regulatory requirements concerning the payment of death benefits and the reporting and escheatment of unclaimed property, and is subject to audit and examination for compliance with these requirements. MLOA, along with other life insurance industry companies, has been the subject of various inquiries regarding its death claim, escheatment, and unclaimed property procedures and is cooperating with these inquiries. For example, MLOA is under audit by a third party auditor acting on behalf of a number of U.S. state jurisdictions reviewing compliance with unclaimed property laws of those jurisdictions. In addition, a number of life insurance industry companies have received a multistate targeted market conduct examination notice issued on behalf of various U.S. state insurance departments reviewing use of the U.S. Social Security Administration's Death Master File or similar database, claims processing and payments to beneficiaries. In December 2012, MLOA received an examination notice on behalf of at least six insurance departments. The audits and related inquiries have resulted in the payment of death benefits and changes to MLOA's relevant procedures. MLOA expects it will also result in the reporting and escheatment of unclaimed death benefits, including potential interest on such payments, and the payment of examination costs. In addition, MLOA, along with other life insurance industry companies, is subject to lawsuits that may be filed by state regulatory agencies or other litigants. | |
_______________________________________________ | |
In addition to the matters described above, a number of lawsuits, claims and assessments have been filed against life and health insurers in the jurisdictions in which MLOA does business. These actions and proceedings involve, among other things, insurers' sales practices, alleged agent misconduct, alleged failure to properly supervise agents, contract administration and other matters. Some of the matters have resulted in the award of substantial judgments against other insurers, including material amounts of punitive damages, or in substantial settlements. In some states, juries have substantial discretion in awarding punitive damages. MLOA, like other life and health insurers, from time to time is involved in such actions and proceedings. Some of these actions and proceedings filed against MLOA have been brought on behalf of various alleged classes of plaintiffs and certain of these plaintiffs seek damages of unspecified amounts. While the ultimate outcome of such matters cannot be predicted with certainty, in the opinion of management no such matter is likely to have a material adverse effect on MLOA's financial position or results of operations. However, it should be noted that the frequency of large damage awards, including large punitive damage awards that bear little or no relation to actual economic damages incurred by plaintiffs in some jurisdictions, continues to create the potential for an unpredictable judgment in any given matter. | |
Although the outcome of litigation and regulatory matters generally cannot be predicted with certainty, management intends to vigorously defend against the allegations made by the plaintiffs in the actions described above and believes that the ultimate resolution of the litigation and regulatory matters described therein involving MLOA should not have a material adverse effect on the financial position of MLOA. Management cannot make an estimate of loss, if any, or predict whether or not any of the litigations and regulatory matters described above will have a material adverse effect on MLOA's results of operations in any particular period. | |
STATUTORY_FINANCIAL_INFORMATIO
STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2013 | |
Statutory Financial Information [Abstract] | ' |
Statutory Financial Information | ' |
13) STATUTORY FINANCIAL INFORMATION | |
MLOA is restricted as to the amounts it may pay as dividends to AEFS. Under Arizona Insurance Law, a domestic life insurer may, without prior approval of the Superintendent, pay a dividend to its shareholder not exceeding an amount calculated based on a statutory formula. This formula would permit MLOA to pay shareholder dividends not greater than $36 during 2014. For 2013, 2012 and 2011, MLOA's statutory net income (loss) was $34 million, $33 million and $35 million, respectively. Statutory surplus, capital stock and Asset Valuation Reserve (“AVR”) totaled $367 million and $295 million at December 31, 2013 and 2012, respectively. There were no shareholder dividends paid to its parent by MLOA in 2013, 2012 and 2011. In 2013 MLOA, utilized a portion of the consideration from the reinsurance agreement with Protective Life to return $200 million of surplus to its parent, AEFS. | |
At December 31, 2013, MLOA, in accordance with various government and state regulations, had $6 million of securities on deposit with such government or state agencies. | |
At December 31, 2013 and for the year then ended, there were no differences in net income (loss) and capital and surplus resulting from practices prescribed and permitted by the State of Arizona Insurance Department (the “AID”) and those prescribed by NAIC Accounting Practices and Procedures effective at December 31, 2013. | |
Accounting practices used to prepare statutory financial statements for regulatory filings of stock life insurance companies differ in certain instances from U.S. GAAP. The differences between statutory surplus and capital stock determined in accordance with Statutory Accounting Principles (“SAP”) and total shareholder's equity under U.S. GAAP are primarily: (a) the inclusion in SAP of an AVR intended to stabilize surplus from fluctuations in the value of the investment portfolio; (b) future policy benefits and policyholders' account balances under SAP differ from U.S. GAAP due to differences between actuarial assumptions and reserving methodologies; (c) certain policy acquisition costs are expensed under SAP but deferred under U.S. GAAP and amortized over future periods to achieve a matching of revenues and expenses; (d) under SAP, Federal income taxes are provided on the basis of amounts currently payable with limited recognition of deferred tax assets while under U.S. GAAP, deferred taxes are recorded for temporary differences between the financial statements and tax basis of assets and liabilities where the probability of realization is reasonably assured; (e) the valuation of assets under SAP and U.S. GAAP differ due to different investment valuation and depreciation methodologies, as well as the deferral of interest-related realized capital gains and losses on fixed income investments; (f) the valuation of the investment in Alliance Units under SAP reflects a portion of the market value appreciation rather than the equity in the underlying net assets as required under U.S. GAAP; (g) computer software development costs are capitalized under U.S. GAAP but expensed under SAP; (h) certain assets, primarily pre-paid assets, are not admissible under SAP but are admissible under U.S. GAAP (i) the fair valuing of all acquired assets and liabilities including VOBA assets required for U.S. GAAP purchase accounting and (j) cost of reinsurance is recognized as expense under SAP and amortized over the life of the underlying reinsured policies under U.S. GAAP. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICY) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | ' |
Basis Of Presentation [Policy Text Block] | ' |
Basis of Presentation | |
The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions (including normal, recurring accruals) that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying financial statements reflect all adjustments necessary in the opinion of management for a fair presentation of the financial position of MLOA and its results of operations and cash flows for the periods presented. | |
The years “2013”, “2012” and “2011” refer to the years ended December 31, 2013, 2012 and 2011, respectively. Certain reclassifications have been made in the amounts presented for prior periods to conform those periods to the current presentation. | |
Adoption Of New Accounting Pronouncements [Policy Text Block] | ' |
Adoption of New Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued new guidance to improve the reporting of reclassifications out of accumulated other comprehensive income (loss) (“AOCI”). The amendments in this guidance require an entity to report the effect of significant reclassifications out of AOCI on the respective line items in the statement of earnings (loss) if the amount being reclassified is required to be reclassified in its entirety to net earnings (loss). For other amounts that are not required to be reclassified in their entirety to net earnings in the same reporting period, an entity is required to cross-reference other disclosures that provide additional detail about those amounts. The guidance requires disclosure of reclassification information either in the notes or the face of the financial statements provided the information is presented in one location. This guidance was effective for interim and annual periods beginning after December 31, 2012. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In December 2011, the FASB issued new and enhanced disclosures about offsetting (netting) of financial instruments and derivatives, including repurchase/reverse repurchase agreements and securities lending/borrowing arrangements, to converge with those required by International Financial Reporting Standards (“IFRS”). The disclosures require presentation in tabular format of gross and net information about assets and liabilities that either are offset (presented net) on the balance sheet or are subject to master netting agreements or similar arrangements providing rights of setoff, such as global master repurchase, securities lending, and derivative clearing agreements, irrespective of whether the assets and liabilities are offset. Financial instruments subject only to collateral agreements are excluded from the scope of these requirements, however, the tabular disclosures are required to include the fair values of financial collateral, including cash, related to master netting agreements or similar arrangements. In January 2013, the FASB issued new guidance limiting the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. This guidance was effective for interim and annual periods beginning after January 1, 2013 and is to be applied retrospectively to all comparative prior periods presented. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In September 2011, the FASB issued new guidance on testing goodwill for impairment. The guidance is intended to reduce the cost and complexity of the annual goodwill impairment test by providing entities with the option of performing a "qualitative" assessment to determine whether further impairment testing is necessary. The guidance was effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, with early adoption permitted for certain companies. Implementation of this guidance did not have a material impact on MLOA's financial statements. | |
In June 2011, the FASB issued new guidance to amend the existing alternatives for presenting Other comprehensive income (loss) (“OCI”) and its components in financial statements. The amendments eliminate the current option to report OCI and its components in the statement of changes in equity. An entity can elect to present items of net earnings (loss) and OCI in one continuous statement or in two separate, but consecutive statements. This guidance will not change the items that constitute net earnings (loss) and OCI, when an item of OCI must be reclassified to net earnings (loss). The new guidance also called for reclassification adjustments from OCI to be measured and presented by income statement line item in net earnings (loss) and in OCI. This guidance was effective for interim and annual periods beginning after December 15, 2011. Consistent with this guidance, MLOA currently presents items of net earnings (loss) and OCI in two consecutive statements. In December 2011, the FASB issued new guidance to defer the portion of the guidance to present components of OCI on the face of the statement of earnings (loss). | |
In May 2011, the FASB amended its guidance on fair value measurements and disclosure requirements to enhance comparability between U.S. GAAP and IFRS. The changes to the existing guidance include how and when the valuation premise of highest and best use applies, the application of premiums and discounts, as well as new required disclosures. This guidance was effective for reporting periods beginning after December 15, 2011, with early adoption prohibited. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
In April 2011, the FASB issued new guidance for a creditor's determination of whether a restructuring is a troubled debt restructuring (“TDR”). The new guidance provided additional guidance to creditors for evaluating whether a modification or restructuring of a receivable is a TDR. The new guidance required creditors to evaluate modifications and restructurings of receivables using a more principles-based approach, which may result in more modifications and restructurings being considered TDR. The financial reporting implications of being classified as a TDR are that the creditor is required to: | |
Consider the receivable impaired when calculating the allowance for credit losses; and | |
Provide additional disclosures about its troubled debt restructuring activities in accordance with the requirements of recently issued guidance on disclosures about the credit quality of financing receivables and the allowance for credit losses. | |
The new guidance was effective for the first interim or annual period beginning on or after June 15, 2011. Implementation of this guidance did not have a material impact on MLOA's financial statements. These new disclosures have been included in the Notes to MLOA's financial statements, as appropriate. | |
Future Adoption Of New Accounting Pronouncements [Policy Text Block] | ' |
Future Adoption of New Accounting Pronouncements | |
In July 2013, the FASB issued new guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this guidance state that an unrecognized tax benefit, or a portion thereof, should 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. An exception to this guidance would be where a net operating loss carryforward or similar tax loss or credit carryforward would not be available under the tax law to settle any additional income taxes that would result from the disallowance of a tax position, or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose. In such a case, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for interim and annual periods beginning after December 15, 2013. Management does not expect implementation of this guidance will have a material impact on MLOA's financial statements. | |
Investment [Policy Text Block] | ' |
Investments | |
The carrying values of fixed maturities classified as available-for-sale (“AFS”) are reported at fair value. Changes in fair value are reported in comprehensive income. The amortized cost of fixed maturities is adjusted for impairments in value deemed to be other than temporary which are recognized in Investment gains (losses), net. The redeemable preferred stock investments that are reported in fixed maturities include real estate investment trusts (“REIT”), perpetual preferred stock and redeemable preferred stock. These securities may not have a stated maturity, may not be cumulative and do not provide for mandatory redemption by the issuer. | |
MLOA determines the fair values of fixed maturities and equity securities based upon quoted prices in active markets, when available, or through the use of alternative approaches when market quotes are not readily accessible or available. These alternative approaches include matrix or model pricing and use of independent pricing services, each supported by reference to principal market trades or other observable market assumptions for similar securities. More specifically, the matrix pricing approach to fair value is a discounted cash flow methodology that incorporates market interest rates commensurate with the credit quality and duration of the investment. | |
MLOA's management, with the assistance of its investment advisors, monitors the investment performance of its portfolio and reviews AFS securities with unrealized losses for other-than-temporary impairments (“OTTI”). Integral to this review is an assessment made each quarter, on a security-by-security basis, by the Investments Under Surveillance (“IUS”) Committee, of various indicators of credit deterioration to determine whether the investment security is expected to recover. This assessment includes, but is not limited to, consideration of the duration and severity of the unrealized loss, failure, if any, of the issuer of the security to make scheduled payments, actions taken by rating agencies, adverse conditions specifically related to the security or sector, the financial strength, liquidity, and continued viability of the issuer and, for equity securities only, the intent and ability to hold the investment until recovery, and results in identification of specific securities for which OTTI is recognized. | |
If there is no intent to sell or likely requirement to dispose of the fixed maturity security before its recovery, only the credit loss component of any resulting OTTI is recognized in earnings (loss) and the remainder of the fair value loss is recognized in OCI. The amount of credit loss is the shortfall of the present value of the cash flows expected to be collected as compared to the amortized cost basis of the security. The present value is calculated by discounting management's best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. Projections of future cash flows are based on assumptions regarding probability of default and estimates regarding the amount and timing of recoveries. These assumptions and estimates require use of management judgment and consider internal credit analyses as well as market observable data relevant to the collectability of the security. For mortgage- and asset-backed securities, projected future cash flows also include assumptions regarding prepayments and underlying collateral value. | |
Real estate held for the production of income, including real estate acquired in satisfaction of debt, is stated at depreciated cost less valuation allowances. At the date of foreclosure (including in-substance foreclosure), real estate acquired in satisfaction of debt is valued at estimated fair value. Impaired real estate is written down to fair value with the impairment loss being included in Investment gains (losses), net. | |
Depreciation of real estate held for production of income is computed using the straight-line method over the estimated useful lives of the properties, which generally range from 40 to 50 years. | |
Policy loans are stated at unpaid principal balances. | |
Partnerships and joint venture interests that MLOA has control of and has a majority economic interest in (that is, greater than 50% of the economic return generated by the entity) or those that meet the requirements for consolidation under accounting guidance for consolidation of variable interest entities (“VIE”) are consolidated. Those that MLOA does not have control of and does not have a majority economic interest in and those that do not meet the VIE requirements for consolidation are reported on the equity basis of accounting and are reported in Other assets. MLOA records its interest in certain of these partnerships on a one quarter lag basis. | |
Equity securities, which include common stock and non-redeemable preferred stock classified as AFS securities, are carried at fair value and are included in Other invested assets with changes in fair value reported in OCI. | |
Units in AllianceBernstein L.P. (“AllianceBernstein”), a subsidiary of AXA Financial, are carried on the equity method and reported in Other invested assets. | |
Short-term investments are reported at amortized cost that approximates fair value and are included in Other invested assets. | |
Cash and cash equivalents includes cash on hand, amounts due from banks and highly liquid debt instruments purchased with an original maturity of three months or less. Due to the short-term nature of these investments, the recorded value is deemed to approximate fair value. | |
All securities owned, including United States government and agency securities and mortgage-backed securities, are reported in the financial statements on a trade date basis. | |
Derivatives [Policy Text Block] | ' |
Derivatives | |
Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices, values of securities or commodities, credit spreads, market volatility, expected returns, and liquidity. Values can also be affected by changes in estimates and assumptions, including those related to counterparty behavior and non-performance risk used in valuation models. Derivative financial instruments generally used by MLOA include equity options and may be exchange-traded or contracted in the over-the-counter market. All derivative positions are carried in the balance sheets at fair value, generally by obtaining quoted market prices or through the use of valuation models. | |
Freestanding derivative contracts are reported in the balance sheets either as assets within “Other invested assets” or as liabilities within “Other liabilities.” MLOA nets the fair value of all derivative financial instruments with counterparties for which a standardized “ISDA Master Agreement” and related Credit Support Annex (“CSA”) have been executed. MLOA uses derivatives to manage asset/liability risk but has not designated those economic relationships under the criteria to qualify for hedge accounting treatment. All changes in the fair value of MLOA freestanding derivative positions, including net receipts and payments, are included in “Investment gains (losses), net” without considering changes in the fair value of the economically associated assets or liabilities. | |
MLOA is a party to financial instruments and other contracts that contain “embedded” derivative instruments. At inception, MLOA assesses whether the economic characteristics of the embedded instrument are “clearly and closely related” to the economic characteristics of the remaining component of the “host contract” and whether a separate instrument with the same terms as the embedded instrument would meet the definition of a derivative instrument. When those criteria are satisfied, the resulting embedded derivative is bifurcated from the host contract, carried in the balance sheets at fair value, and changes in its fair value are recognized immediately and captioned in the statements of earnings (loss) according to the nature of the related host contract. For certain financial instruments that contain an embedded derivative that otherwise would need to be bifurcated and reported at fair value, the Company instead may elect to carry the entire instrument at fair value. | |
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | ' |
Troubled Debt Restructuring | |
When a loan modification is determined to be a troubled debt restructuring, the impairment of the loan is re-measured by discounting the expected cash flows to be received based on the modified terms using the loan's original effective yield, and the allowance for loss is adjusted accordingly. Subsequent to the modification, income is recognized prospectively based on the modified terms of the loans. Additionally, the loan continues to be subject to the credit review process noted above. | |
Valuation Allowances for Mortgage Loans: | |
For commercial and agricultural loans, an allowance for credit loss is typically recommended when management believes it is probable that principal and interest will not be collected according to the contractual terms. Factors that influence management's judgment in determining allowance for credit losses include the following: | |
Loan-to-value ratio – Derived from current loan balance divided by the fair market value of the property. An allowance for credit loss is typically recommended when the loan-to-value ratio is in excess of 100%. In the case where the loan-to-value is in excess of 100%, the allowance for credit loss is derived by taking the difference between the fair market value (less cost of sale) and the current loan balance. | |
Debt service coverage ratio – Derived from actual net operating income divided by annual debt service. If the ratio is below 1.0x, then the income from the property does not support the debt. | |
Occupancy – Criteria varies by property type but low or below market occupancy is an indicator of sub-par property performance. | |
Lease expirations – The percentage of leases expiring in the upcoming 12 to 36 months are monitored as a decline in rent and/or occupancy may negatively impact the debt service coverage ratio. In the case of single-tenant properties or properties with large tenant exposure, the lease expiration is a material risk factor. | |
Maturity – Loans that are not fully amortizing and have upcoming maturities within the next 12 to 24 months are monitored in conjunction with the capital markets to determine the borrower's ability to refinance the debt and/or pay off the balloon balance. | |
Borrower/tenant related issues – Financial concerns, potential bankruptcy, or words or actions that indicate imminent default or abandonment of property. | |
Payment status – current vs. delinquent – A history of delinquent payments may be a cause for concern. | |
Property condition – Significant deferred maintenance observed during Lender's annual site inspections. | |
Other – Any other factors such as current economic conditions may call into question the performance of the loan. | |
Mortgage loans on real estate are stated at unpaid principal balances, net of unamortized discounts and valuation allowances. Valuation allowances are based on the present value of expected future cash flows discounted at the loan's original effective interest rate or on its collateral value if the loan is collateral dependent. However, if foreclosure is or becomes probable, the collateral value measurement method is used. | |
Mortgage loans also are individually evaluated quarterly by the IUS Committee for impairment, including an assessment of related collateral value. Commercial mortgages 60 days or more past due and agricultural mortgages 90 days or more past due, as well as all mortgages in the process of foreclosure, are identified as problem mortgages. Based on its monthly monitoring of mortgages, a class of potential problem mortgages are also identified, consisting of mortgage loans not currently classified as problems but for which management has doubts as to the ability of the borrower to comply with the present loan payment terms and which may result in the loan becoming a problem or being restructured. The decision whether to classify a performing mortgage loan as a potential problem involves significant subjective judgments by management as to likely future industry conditions and developments with respect to the borrower or the individual mortgaged property. | |
For problem mortgage loans a valuation allowance is established to provide for the risk of credit losses inherent in the lending process. The allowance includes loan specific reserves for loans determined to be non-performing as a result of the loan review process. A non-performing loan is defined as a loan for which it is probable that amounts due according to the contractual terms of the loan agreement will not be collected. The loan specific portion of the loss allowance is based on MLOA's assessment as to ultimate collectability of loan principal and interest. Valuation allowances for a non-performing loan are recorded based on the present value of expected future cash flows discounted at the loan's effective interest rate or based on the fair value of the collateral if the loan is collateral dependent. The valuation allowance for mortgage loans can increase or decrease from period to period based on such factors. | |
Impaired mortgage loans without provision for losses are loans where the fair value of the collateral or the net present value of the expected future cash flows related to the loan equals or exceeds the recorded investment. Interest income earned on loans where the collateral value is used to measure impairment is recorded on a cash basis. Interest income on loans where the present value method is used to measure impairment is accrued on the net carrying value amount of the loan at the interest rate used to discount the cash flows. Changes in the present value attributable to changes in the amount or timing of expected cash flows are reported as investment gains or losses. | |
Mortgage loans on real estate are placed on nonaccrual status once management believes the collection of accrued interest is doubtful. Once mortgage loans on real estate are classified as nonaccrual loans, interest income is recognized under the cash basis of accounting and the resumption of the interest accrual would commence only after all past due interest has been collected or the mortgage loan on real estate has been restructured to where the collection of interest is considered likely. At December 31, 2013 and 2012, the carrying values of commercial mortgage loans on real estate that had been classified as nonaccrual loans were $6 million and $6 million, respectively. | |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) [Policy Text Block] | ' |
Net Investment Income (Loss), Investment Gains (Losses), Net and Unrealized Investment Gains (Losses) | |
Realized investment gains (losses) are determined by identification with the specific asset and are presented as a component of revenue. Changes in the valuation allowances are included in Investment gains (losses), net. | |
Unrealized investment gains (losses) on fixed maturities and equity securities designated as AFS held by MLOA are accounted for as a separate component of AOCI, net of related deferred income taxes and amounts attributable to DAC and value of business acquired (“VOBA”) related to variable life and investment-type products. | |
Changes in unrealized gains (losses) reflect changes in fair value of only those fixed maturities classified as AFS and do not reflect any changes in fair value of policyholders' account balances and future policy benefits. | |
Fair Value of Other Financial Instruments [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance established a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, and identifies three levels of inputs that may be used to measure fair value: | |
Level 1 Unadjusted quoted prices for identical instruments in active markets. Level 1 fair values generally are supported by market transactions that occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, and inputs to model-derived valuations that are directly observable or can be corroborated by observable market data. | |
Level 3 Unobservable inputs supported by little or no market activity and often requiring significant management judgment or estimation, such as an entity's own assumptions about the cash flows or other significant components of value that market participants would use in pricing the asset or liability. | |
MLOA defines fair value as the unadjusted quoted market prices for those instruments that are actively traded in financial markets. In cases where quoted market prices are not available, fair values are measured using present value or other valuation techniques. The fair value determinations are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such adjustments do not reflect any premium or discount that could result from offering for sale at one time MLOA's entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value cannot be substantiated by direct comparison to independent markets, nor can the disclosed value be realized in immediate settlement of the instrument. | |
Management is responsible for the determination of the value of investments carried at fair value and the supporting methodologies and assumptions. Under the terms of various service agreements, MLOA often utilizes independent valuation service providers to gather, analyze, and interpret market information and derive fair values based upon relevant methodologies and assumptions for individual securities. These independent valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation models, provide a single fair value measurement for individual securities for which a fair value has been requested. As further described below with respect to specific asset classes, these inputs include, but are not limited to, market prices for recent trades and transactions in comparable securities, benchmark yields, interest rate yield curves, credit spreads, quoted prices for similar securities, and other market-observable information, as applicable. Specific attributes of the security being valued also are considered, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security- or issuer-specific information. When insufficient market observable information is available upon which to measure fair value, MLOA either will request brokers knowledgeable about these securities to provide a non-binding quote or will employ widely accepted internal valuation models. Fair values received from independent valuation service providers and brokers and those internally modeled or otherwise estimated are assessed for reasonableness. | |
Recognition of Insurance Income and Related Expenses [Policy Text Block] | ' |
Recognition of Insurance Income and Related Expenses | |
Premiums from variable life and investment-type contracts are reported as deposits to policyholders' account balances. Revenues from these contracts consist of fees assessed during the period against policyholders' account balances for mortality charges, policy administration charges and surrender charges. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policyholders' account balances. | |
Premiums from non-participating traditional life and annuity policies with life contingencies generally are recognized in income when due. Benefits and expenses are matched with such income so as to result in the recognition of profits over the life of the contracts. This match is accomplished by means of the provision for liabilities for future policy benefits and the deferral and subsequent amortization of policy acquisition costs. | |
For contracts with a single premium or a limited number of premium payments due over a significantly shorter period than the total period over which benefits are provided, premiums are recorded as revenue when due with any excess profit deferred and recognized in income in a constant relationship to insurance in-force or, for annuities, the amount of expected future benefit payments. | |
DAC and VOBA [Policy Text Block] | ' |
DAC and VOBA | |
DAC. Acquisition costs that vary with and are primarily related to the acquisition of new and renewal insurance business, reflecting incremental direct costs of contract acquisition with independent third parties or employees that are essential to the contract transaction, as well as the portion of employee compensation, including payroll fringe benefits and other costs directly related to underwriting, policy issuance and processing, medical inspection, and contract selling for successfully negotiated contracts including commissions, underwriting, agency and policy issue expenses, are deferred. DAC is subject to recoverability testing at the time of policy issue and loss recognition testing at the end of each accounting period. | |
After the initial establishment of reserves, premium deficiency and loss recognition tests are performed each period end using best estimate assumptions as of the testing date without provisions for adverse deviation. When the liabilities for future policy benefits plus the present value of expected future gross premiums for the aggregate product group are insufficient to provide for expected future policy benefits and expenses for that line of business (i.e., reserves net of any DAC asset), DAC would first be written off and thereafter, if required, a premium deficiency reserve would be established by a charge to earnings. | |
VOBA. VOBA, which arose from MLOA's 2004 acquisition by AXA Financial, was established in accordance with purchase accounting guidance for business combinations. VOBA is the actuarially determined present value of estimated future gross profits from insurance contracts in force at the date of the acquisition. VOBA is amortized over the expected life of the contracts (up to 50 years from the date of issue) according to the type of contract using the methods described below as applicable. VOBA is subject to loss recognition testing at the end of each accounting period. | |
Amortization Policy. For universal life (“UL”) and investment-type products, DAC and VOBA are amortized over the expected total life of the contract group as a constant percentage of estimated gross profits arising principally from investment results, Separate Account fees, mortality and expense margins and surrender charges based on historical and anticipated future experience, updated at the end of each accounting period. When estimated gross profits are expected to be negative for multiple years of a contract life, DAC and VOBA are amortized using the present value of estimated assessments. The effect on the amortization of DAC and VOBA of revisions to estimated gross profits or assessments is reflected in earnings in the period such estimated gross profits or assessments are revised. A decrease in expected gross profits or assessments would accelerate DAC and VOBA amortization. Conversely, an increase in expected gross profits or assessments would slow DAC and VOBA amortization. The effect on the DAC and VOBA assets that would result from realization of unrealized gains (losses) is recognized with an offset to AOCI in shareholders' equity as of the balance sheet date. | |
A significant assumption in the amortization of DAC and VOBA on variable and interest-sensitive life insurance relates to projected future Separate Account performance. Management sets estimated future gross profit or assessment assumptions related to Separate Account performance using a long-term view of expected average market returns by applying a reversion to the mean approach, a commonly used industry practice. This future return approach influences the projection of fees earned, as well as other sources of estimated gross profits. Returns that are higher than expectations for a given period produce higher than expected account balances, increase the fees earned resulting in higher expected future gross profits and lower DAC and VOBA amortization for the period. The opposite occurs when returns are lower than expected. | |
In applying this approach to develop estimates of future returns, it is assumed that the market will return to an average gross long-term return estimate, developed with reference to historical long-term equity market performance. Currently, the average gross long-term return estimate is measured from December 31, 2008. Management has set limitations as to maximum and minimum future rate of return assumptions, as well as a limitation on the duration of use of these maximum or minimum rates of return. At December 31, 2013, the average gross short-term and long-term annual return estimate on variable and interest-sensitive life insurance was 9.0% (7.83% net of product weighted average Separate Account fees), and the gross maximum and minimum short-term annual rate of return limitations were 15.0% (13.83% net of product weighted average Separate Account fees) and 0.0% (-1.17% net of product weighted average Separate Account fees), respectively. The maximum duration over which these rate limitations may be applied is 5 years. This approach will continue to be applied in future periods. These assumptions of long-term growth are subject to assessment of the reasonableness of resulting estimates of future return assumptions. | |
If actual market returns continue at levels that would result in assuming future market returns of 15.0% for more than 5 years in order to reach the average gross long-term return estimate, the application of the 5 year maximum duration limitation would result in an acceleration of DAC and VOBA amortization. Conversely, actual market returns resulting in assumed future market returns of 0.0% for more than 5 years would result in a required deceleration of DAC and VOBA amortization. At December 31, 2013, current projections of future average gross market returns assume a 0.0% annualized return for the next nine quarters, which is the minimum limitation, grading to a reversion to the mean of 9.0% in eleven quarters. | |
In addition, projections of future mortality assumptions related to variable and interest-sensitive life products are based on a long-term average of actual experience. This assumption is updated quarterly to reflect recent experience as it emerges. Improvement of life mortality in future periods from that currently projected would result in future deceleration of DAC and VOBA amortization. Conversely, deterioration of life mortality in future periods from that currently projected would result in future acceleration of DAC and VOBA amortization. Generally, life mortality experience has been improving in recent years. | |
Other significant assumptions underlying gross profit estimates for UL and investment-type products relate to contract persistency and General Account investment spread. | |
Prior to the reinsurance agreement with Protective Life, DAC and VOBA associated with non-participating traditional life policies were amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums were estimated at the date of policy issue and were consistently applied during the life of the contracts. Deviations from estimated experience were reflected in earnings (loss) in the period such deviations occur. For these contracts, the amortization periods generally were for the total life of the policy. DAC and VOBA related to these policies were subject to recoverability testing as part of AXA Financial Group's premium deficiency testing. If a premium deficiency existed, DAC and VOBA were reduced by the amount of the deficiency or to zero through a charge to current period earnings (loss). If the deficiency exceeded the DAC balance, the reserve for future policy benefits was increased by the excess, reflected in earnings (loss) in the period such deficiency occurred. | |
Deferred Cost Of Or Gain On Reinsurance [Policy Text Block] | ' |
Deferred Cost of or Gain on Reinsurance | |
The cost of or gain on reinsurance at the inception of a coinsurance treaty, defined as the difference between the initial coinsurance premium paid and the amount of the net liabilities relating to the underlying reinsured policies in accordance with the reinsurance agreement, net of the ceded commission received is deferred and amortized over the lives of the underlying policies. | |
Policyholders Account Balances and Future Policy Benefits [Policy Text Block] | ' |
Policyholders' Account Balances and Future Policy Benefits | |
Policyholders' account balances for variable life and investment-type contracts are equal to the policy account values. The policy account values represent an accumulation of gross premium payments plus credited interest less expense and mortality charges and withdrawals. | |
MLOA had issued certain variable annuity products with a guaranteed minimum death benefit (“GMDB”) feature. MLOA also had issued certain variable annuity products that contain a GMIB feature which, if elected by the policyholder after a stipulated waiting period from contract issuance, guarantees a minimum lifetime annuity based on predetermined annuity purchase rates that may be in excess of what the contract account value can purchase at then-current annuity purchase rates. This minimum lifetime annuity is based on predetermined annuity purchase rates applied to a GMIB base. Reserves for GMDB and GMIB obligations are calculated on the basis of actuarial assumptions related to projected benefits and related contract charges generally over the lives of the contracts using assumptions consistent with those used in estimating gross profits for purposes of amortizing DAC and VOBA. The determination of this estimated liability is based on models that involve numerous estimates and subjective judgments, including those regarding expected market rates of return and volatility, contract surrender and withdrawal rates, mortality experience, and, for contracts with the GMIB feature, GMIB election rates. Assumptions regarding Separate Account performance used for purposes of this calculation are set using a long-term view of expected average market returns by applying a reversion to the mean approach, consistent with that used for DAC and VOBA amortization. There can be no assurance that actual experience will be consistent with management's estimates. | |
In connection with the reinsurance agreement with Protective Life, MLOA has reinsured 100% of the risk associated with GMDB and GMIB variable annuity products. | |
For reinsurance contracts other than those covering GMIB exposure, reinsurance recoverable balances were calculated using methodologies and assumptions that are consistent with those used to calculate the direct liabilities. | |
For non-participating traditional life insurance policies, future policy benefit liabilities are estimated using a net level premium method on the basis of actuarial assumptions as to mortality, persistency and interest established at policy issue. Assumptions established at policy issue as to mortality and persistency are based on MLOA's experience that, together with interest and expense assumptions, includes a margin for adverse deviation. Benefit liabilities for traditional annuities during the accumulation period are equal to accumulated contractholders' fund balances and, after annuitization, are equal to the present value of expected future payments. | |
When the liabilities for future policy benefits plus the present value of expected future gross premiums for a product are insufficient to provide for expected future policy benefits and expenses for that product, DAC and VOBA are written off and thereafter, if required, a premium deficiency reserve is established by a charge to earnings. | |
Separate Accounts [Policy Text Block] | ' |
Separate Accounts | |
Generally, Separate Accounts established under Arizona State Insurance Law are not chargeable with liabilities that arise from any other business of MLOA. Separate Accounts assets are subject to General Account claims only to the extent Separate Accounts assets exceed Separate Accounts liabilities. Assets and liabilities of the Separate Accounts represent the net deposits and accumulated net investment earnings (loss) less fees, held primarily for the benefit of contractholders, and for which MLOA does not bear the investment risk. Separate Accounts' assets and liabilities are shown on separate lines in the balance sheets. Assets held in Separate Accounts are reported at quoted market values or, where quoted values are not readily available or accessible for these securities, their fair value measures most often are determined through the use of model pricing that effectively discounts prospective cash flows to present value using appropriate sector-adjusted credit spreads commensurate with the security's duration, also taking into consideration issuer-specific credit quality and liquidity. The assets and liabilities of two Separate Accounts are presented and accounted for as General Account assets and liabilities due to the fact that not all of the investment performance in those Separate Accounts is passed through to policyholders. Investment assets in these Separate Accounts principally consist of fixed maturities that are classified as AFS in the accompanying consolidated financial statements. | |
The investment results of Separate Accounts, including unrealized gains (losses), on which MLOA does not bear the investment risk are reflected directly in Separate Accounts liabilities and are not reported in revenues in the statements of earnings (loss). For 2013, 2012 and 2011, investment results of such Separate Accounts were gains (losses) of $256 million, $196 million and $(49) million, respectively. | |
Deposits to Separate Accounts are reported as increases in Separate Accounts liabilities and are not reported in revenues. Mortality, policy administration and surrender charges on all policies including those funded by Separate Accounts are included in revenues. | |
MLOA reports the General Account's interests in Separate Accounts as other invested assets in the balance sheets. | |
Other Accounting Policies [Policy Text Block] | ' |
Other Accounting Policies | |
AXA Financial and certain of its consolidated subsidiaries, including MLOA, file a consolidated Federal income tax return. Current Federal income taxes are charged or credited to operations based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income tax assets and liabilities are recognized based on the difference between financial statement carrying amounts and income tax bases of assets and liabilities using enacted income tax rates and laws. | |
ORGANIZATION_TABLES
ORGANIZATION (TABLES) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Organization Tables [Abstract] | ' | |||||
Schedule Of Deferred Cost Of Reinsurance [Table Text Block] | ' | |||||
Calculation of deferred cost of reinsurance | ||||||
(In Millions) | ||||||
Transferred or Ceded Assets (Net of Ceding Commission): | ||||||
Fixed Maturities | $ | 1,102 | ||||
Cash | 74 | |||||
Policy loans | 132 | |||||
Total assets transferred or ceded (Net of Ceding Commission) | $ | 1,308 | ||||
Transferred Liabilities: | ||||||
Future policyholder benefits and other policyholders liabilities | $ | 1,334 | ||||
Amounts due to reinsurer | 40 | |||||
Total liabilities transferred | $ | 1,374 | ||||
Accelerated Amortization of Assets and Liabilities As Part of the Reinsurance Agreement: | ||||||
Value of business acquired | $ | 117 | ||||
Deferred policy acquisition costs | 71 | |||||
Initial Fee Liability | -27 | |||||
Net accelerated amortization of assets and liabilities | $ | 161 | ||||
Deferred Cost of Reinsurance | $ | 95 |
INVESTMENTS_TABLES
INVESTMENTS (TABLES) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Tables [Abstract] | ' | ||||||||||||||||||||||||
Available For Sale Securities [Text Block] | ' | ||||||||||||||||||||||||
Available-for-Sale Securities by Classification | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | OTTI | |||||||||||||||||||||
Cost | Gains | Losses | Value | in AOCI(3) | |||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 608 | $ | 33 | $ | 8 | $ | 633 | $ | 0 | |||||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 34 | 0 | 0 | 34 | 0 | ||||||||||||||||||||
States and political subdivisions | 6 | 0 | 0 | 6 | 0 | ||||||||||||||||||||
Commercial mortgage-backed | 46 | 1 | 23 | 24 | 1 | ||||||||||||||||||||
Redeemable preferred stock | 18 | 0 | 2 | 16 | 0 | ||||||||||||||||||||
Total at December 31, 2013 | $ | 712 | $ | 34 | $ | 33 | $ | 713 | $ | 1 | |||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 1,553 | $ | 167 | $ | 1 | $ | 1,719 | $ | 0 | |||||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 106 | 7 | 0 | 113 | 0 | ||||||||||||||||||||
States and political subdivisions | 25 | 3 | 0 | 28 | 0 | ||||||||||||||||||||
Foreign governments | 2 | 0 | 0 | 2 | 0 | ||||||||||||||||||||
Commercial mortgage-backed | 57 | 5 | 27 | 35 | 2 | ||||||||||||||||||||
Residential mortgage-backed (1) | 19 | 1 | 0 | 20 | 0 | ||||||||||||||||||||
Asset-backed (2) | 9 | 2 | 0 | 11 | 0 | ||||||||||||||||||||
Redeemable preferred stock | 97 | 2 | 1 | 98 | 0 | ||||||||||||||||||||
Total at December 31, 2012 | $ | 1,868 | $ | 187 | $ | 29 | $ | 2,026 | $ | 2 | |||||||||||||||
Investments Classified By Contractual Maturity Date [Table Text Block] | ' | ||||||||||||||||||||||||
Available-for-Sale Fixed Maturity Securities | |||||||||||||||||||||||||
Contractual Maturities at December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Due in one year or less | $ | 102 | $ | 104 | |||||||||||||||||||||
Due in years two through five | 184 | 198 | |||||||||||||||||||||||
Due in years six through ten | 302 | 311 | |||||||||||||||||||||||
Due after ten years | 60 | 60 | |||||||||||||||||||||||
Subtotal | 648 | 673 | |||||||||||||||||||||||
Commercial mortgage-backed securities | 46 | 24 | |||||||||||||||||||||||
Total | $ | 694 | $ | 697 | |||||||||||||||||||||
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Proceeds from sales(1) | $ | 1,200 | $ | 13 | $ | 20 | |||||||||||||||||||
Gross gains on sales(2) | $ | 84 | $ | 2 | $ | 1 | |||||||||||||||||||
Gross losses on sales(3) | $ | 9 | $ | 0 | $ | 1 | |||||||||||||||||||
Total OTTI | $ | -6 | $ | -7 | $ | -2 | |||||||||||||||||||
Non-credit losses recognized in OCI | 0 | 0 | 0 | ||||||||||||||||||||||
Credit losses recognized in earnings (loss) | $ | -6 | $ | -7 | $ | -2 | |||||||||||||||||||
Fixed Maturities Credit Loss Impairments [Table Text Block] | ' | ||||||||||||||||||||||||
Fixed Maturity Securities - Credit Loss Impairments | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balances at January 1, | $ | -72 | $ | -74 | |||||||||||||||||||||
Previously recognized impairments on securities that matured, paid, prepaid or sold | 18 | 9 | |||||||||||||||||||||||
Recognized impairments on securities impaired to fair value this period(1) | 0 | 0 | |||||||||||||||||||||||
Impairments recognized this period on securities not previously impaired | -6 | -6 | |||||||||||||||||||||||
Additional impairments this period on securities previously impaired | 0 | -1 | |||||||||||||||||||||||
Increases due to passage of time on previously recorded credit losses | 0 | 0 | |||||||||||||||||||||||
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 | |||||||||||||||||||||||
Balances at December 31, | $ | -60 | $ | -72 | |||||||||||||||||||||
Unrealized Gain Loss On Investments [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
AFS Securities: | |||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||
With OTTI loss | $ | -4 | $ | 2 | |||||||||||||||||||||
All other | 5 | 156 | |||||||||||||||||||||||
Net Unrealized (Gains) Losses | $ | 1 | $ | 158 | |||||||||||||||||||||
Unrealized Gain Loss On Investments With Other Than Temporary Impairment [Table Text Block] | ' | ||||||||||||||||||||||||
Net Unrealized Gains (Losses) on Fixed Maturity Securities with OTTI Losses | |||||||||||||||||||||||||
AOCI Gain | |||||||||||||||||||||||||
Net | (Loss) Related | ||||||||||||||||||||||||
Unrealized | Deferred | to Net | |||||||||||||||||||||||
Gains | Income | Unrealized | |||||||||||||||||||||||
(Losses) on | DAC and | Tax Asset | Investment | ||||||||||||||||||||||
Investments | VOBA | (Liability) | Gains (Losses) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 2 | $ | -1 | $ | 0 | $ | 1 | |||||||||||||||||
Net investment gains (losses) arising during the period | -5 | 0 | 0 | -5 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | -1 | 0 | 0 | -1 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -48 | 0 | -48 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | 19 | 19 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | -4 | $ | -49 | $ | 19 | $ | -34 | |||||||||||||||||
Balance, January 1, 2012 | $ | -5 | $ | 1 | $ | 2 | $ | -2 | |||||||||||||||||
Net investment gains (losses) arising during the period | 6 | 0 | 0 | 6 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -2 | 0 | -2 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | -2 | -2 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 2 | $ | -1 | $ | 0 | $ | 1 | |||||||||||||||||
Other Net Unrealized Investment Gains Losses In Accumulated Other Comprehensive Income [Table Text Block] | ' | ||||||||||||||||||||||||
All Other Net Unrealized Investment Gains (Losses) in AOCI | |||||||||||||||||||||||||
AOCI Gain | |||||||||||||||||||||||||
Net | (Loss) Related | ||||||||||||||||||||||||
Unrealized | Deferred | to Net | |||||||||||||||||||||||
Gains | Income | Unrealized | |||||||||||||||||||||||
(Losses) on | DAC and | Tax Asset | Investment | ||||||||||||||||||||||
Investments | VOBA | (Liability) | Gains (Losses) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 156 | $ | -31 | $ | -44 | $ | 81 | |||||||||||||||||
Net investment gains (losses) arising during the period | -84 | 0 | 0 | -84 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | -67 | 0 | 0 | -67 | |||||||||||||||||||||
Excluded from Net earnings (loss)(1) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | 91 | 0 | 91 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | 21 | 21 | |||||||||||||||||||||
Balance, December 31, 2013 | $ | 5 | $ | 60 | $ | -23 | $ | 42 | |||||||||||||||||
Balance, January 1, 2012 | $ | 115 | $ | -27 | $ | -31 | $ | 57 | |||||||||||||||||
Net investment gains (losses) arising during the period | 37 | 0 | 0 | 37 | |||||||||||||||||||||
Reclassification adjustment for OTTI losses: | |||||||||||||||||||||||||
Included in Net earnings (loss) | 4 | 0 | 0 | 4 | |||||||||||||||||||||
Impact of net unrealized investment gains (losses) on: | |||||||||||||||||||||||||
DAC and VOBA | 0 | -4 | 0 | -4 | |||||||||||||||||||||
Deferred income taxes | 0 | 0 | -13 | -13 | |||||||||||||||||||||
Balance, December 31, 2012 | $ | 156 | $ | -31 | $ | -44 | $ | 81 | |||||||||||||||||
Schedule Of Unrealized Loss On Investments [Table Text Block] | ' | ||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 109 | $ | -6 | $ | 38 | $ | -2 | $ | 147 | $ | -8 | |||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 21 | 0 | 0 | 0 | 21 | 0 | |||||||||||||||||||
States and political subdivisions | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||
Commercial mortgage-backed | 13 | -13 | 8 | -10 | 21 | -23 | |||||||||||||||||||
Redeemable preferred stock | 8 | -2 | 0 | 0 | 8 | -2 | |||||||||||||||||||
Total | $ | 152 | $ | -21 | $ | 46 | $ | -12 | $ | 198 | $ | -33 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Fixed Maturity Securities: | |||||||||||||||||||||||||
Corporate | $ | 44 | $ | 0 | $ | 14 | $ | -1 | $ | 58 | $ | -1 | |||||||||||||
U.S. Treasury, government | |||||||||||||||||||||||||
and agency | 1 | 0 | 0 | 0 | 1 | 0 | |||||||||||||||||||
Foreign governments | 0 | 0 | 2 | 0 | 2 | 0 | |||||||||||||||||||
Commercial mortgage-backed | 0 | -1 | 26 | -26 | 26 | -27 | |||||||||||||||||||
Redeemable preferred stock | 14 | 0 | 30 | -1 | 44 | -1 | |||||||||||||||||||
Total | $ | 59 | $ | -1 | $ | 72 | $ | -28 | $ | 131 | $ | -29 | |||||||||||||
Allowance For Credit Losses On Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
Commercial Mortgage Loans | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||
Beginning Balance, January 1, | $ | 4 | $ | 3 | $ | 2 | |||||||||||||||||||
Charge-offs | 0 | 0 | 0 | ||||||||||||||||||||||
Recoveries | -1 | 0 | 0 | ||||||||||||||||||||||
Provision | 0 | 1 | 1 | ||||||||||||||||||||||
Ending Balance, December 31, | $ | 3 | $ | 4 | $ | 3 | |||||||||||||||||||
Ending Balance, December 31,: | |||||||||||||||||||||||||
Individually Evaluated for Impairment | $ | 3 | $ | 4 | $ | 3 | |||||||||||||||||||
Debt Service Coverage Ratio [Table Text Block] | ' | ||||||||||||||||||||||||
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||||||||||||
Less | Total | ||||||||||||||||||||||||
Greater | 1.8x to | 1.5x to | 1.2x to | 1.0x to | than | Mortgage | |||||||||||||||||||
Loan-to-Value Ratio:(2) | than 2.0x | 2.0x | 1.8x | 1.5x | 1.2x | 1.0x | Loans | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||
0% - 50% | $ | 0 | $ | 0 | $ | 16 | $ | 0 | $ | 0 | $ | 0 | $ | 16 | |||||||||||
50% - 70% | 0 | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
70% - 90% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
90% plus | 9 | 0 | 0 | 0 | 0 | 0 | 9 | ||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 9 | $ | 0 | $ | 16 | $ | 6 | $ | 0 | $ | 0 | $ | 31 | |||||||||||
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios | |||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Debt Service Coverage Ratio | |||||||||||||||||||||||||
Less | Total | ||||||||||||||||||||||||
Greater | 1.8x to | 1.5x to | 1.2x to | 1.0x to | than | Mortgage | |||||||||||||||||||
Loan-to-Value Ratio:(2) | than 2.0x | 2.0x | 1.8x | 1.5x | 1.2x | 1.0x | Loans | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Commercial Mortgage Loans(1) | |||||||||||||||||||||||||
0% - 50% | $ | 4 | $ | 0 | $ | 17 | $ | 0 | $ | 12 | $ | 0 | $ | 33 | |||||||||||
50% - 70% | 0 | 0 | 0 | 6 | 0 | 0 | 6 | ||||||||||||||||||
70% - 90% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
90% plus | 10 | 0 | 0 | 0 | 0 | 0 | 10 | ||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 14 | $ | 0 | $ | 17 | $ | 6 | $ | 12 | $ | 0 | $ | 49 | |||||||||||
Age Analysis Of Past Due Mortgage Loans [Table Text Block] | ' | ||||||||||||||||||||||||
Age Analysis of Past Due Commercial Mortgage Loans | |||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||
Investment | |||||||||||||||||||||||||
Total | > 90 Days | ||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Financing | and | |||||||||||||||||||||
Days | Days | or > | Total | Current | Receivables | Accruing | |||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 31 | $ | 31 | $ | 0 | |||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total Commercial | |||||||||||||||||||||||||
Mortgage Loans | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 49 | $ | 49 | $ | 0 | |||||||||||
Impaired Mortgage Loans [Table Text Block] | ' | ||||||||||||||||||||||||
Commercial Mortgage Loans - Impaired | |||||||||||||||||||||||||
Unpaid | Average | Interest | |||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | |||||||||||||||||||||
Investment | Balance | Allowance | Investment(1) | Recognized | |||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
With no related allowance recorded | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
With related allowance recorded | $ | 9 | $ | 9 | $ | -3 | $ | 10 | $ | 0 | |||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
With no related allowance recorded | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||
With related allowance recorded | $ | 10 | $ | 10 | $ | -4 | $ | 10 | $ | 0 | |||||||||||||||
Equity Method Investments Roll Forward [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance at January 1, | $ | 69 | $ | 72 | |||||||||||||||||||||
Equity in net earnings (loss) | 5 | 2 | |||||||||||||||||||||||
Impact of repurchase/issuance of AllianceBernstein Units | 0 | -2 | |||||||||||||||||||||||
Dividends received | -4 | -3 | |||||||||||||||||||||||
Balance at December 31, | $ | 70 | $ | 69 | |||||||||||||||||||||
Sumarrized Financial Information of Equity Method Investments [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Balance Sheets: | |||||||||||||||||||||||||
Total Assets | $ | 7,386 | $ | 8,115 | |||||||||||||||||||||
Total Liabilities | 3,316 | 4,312 | |||||||||||||||||||||||
Total Partners' Capital | 4,070 | 3,803 | |||||||||||||||||||||||
Total Liabilities and Partners' Capital | $ | 7,386 | $ | 8,115 | |||||||||||||||||||||
MLOA's Equity investment in AllianceBernstein | $ | 70 | $ | 69 | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Statements of Earnings (Loss): | |||||||||||||||||||||||||
Total revenues | $ | 2,915 | $ | 2,737 | $ | 2,750 | |||||||||||||||||||
Total Expenses | 2,351 | 2,534 | 2,958 | ||||||||||||||||||||||
Net Earnings (Loss) | $ | 518 | $ | 189 | $ | -175 | |||||||||||||||||||
MLOA's Equity in earnings (loss) of AllianceBernstein | $ | 5 | $ | 2 | $ | -2 | |||||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||||||||||
Derivative Instruments by Category | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
Gains (Losses) | |||||||||||||||||||||||||
Notional | Asset | Liability | Reported In | ||||||||||||||||||||||
Amount | Derivatives | Derivatives | Earnings (Loss) | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
At or For the Year Ended December 31, 2013: | |||||||||||||||||||||||||
Freestanding derivatives: | |||||||||||||||||||||||||
Equity contracts:(1) | |||||||||||||||||||||||||
Options | $ | 158 | $ | 20 | $ | 6 | $ | 8 | |||||||||||||||||
Net investment income (loss) | 8 | ||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||
GMIB reinsurance contracts (2) | 0 | 0 | 0 | -7 | |||||||||||||||||||||
MSO and IUL indexed features(3) | 0 | 0 | 14 | -8 | |||||||||||||||||||||
Balances, December 31, 2013 | $ | 158 | $ | 20 | $ | 20 | $ | -7 | |||||||||||||||||
At or For the Year Ended December 31, 2012: | |||||||||||||||||||||||||
Freestanding derivatives: | |||||||||||||||||||||||||
Equity contracts:(1) | |||||||||||||||||||||||||
Options | $ | 29 | $ | 2 | $ | 1 | $ | 0 | |||||||||||||||||
Net investment income (loss) | 0 | ||||||||||||||||||||||||
Embedded derivatives: | |||||||||||||||||||||||||
GMIB reinsurance contracts (2) | 0 | 7 | 0 | -2 | |||||||||||||||||||||
Balances, December 31, 2012 | $ | 29 | $ | 9 | $ | 1 | $ | -2 | |||||||||||||||||
Offsetting Assets And Liabilities [Table Text Block] | ' | ||||||||||||||||||||||||
Offsetting of Financial Assets and Liabilities and Derivative Instruments | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Gross | |||||||||||||||||||||||||
Gross | Amounts | Net Amounts | |||||||||||||||||||||||
Amounts | Offset in the | Presented in the | |||||||||||||||||||||||
Recognized | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 20 | $ | 6 | $ | 14 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 20 | 6 | 14 | ||||||||||||||||||||||
Other financial instruments | 70 | 0 | 70 | ||||||||||||||||||||||
Other invested assets | $ | 90 | $ | 6 | $ | 84 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 6 | $ | 6 | $ | 0 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 6 | 6 | 0 | ||||||||||||||||||||||
Other financial liabilities | 83 | 0 | 83 | ||||||||||||||||||||||
Other liabilities | $ | 89 | $ | 6 | $ | 83 | |||||||||||||||||||
Offsetting of Financial Assets and Liabilities and Derivative Instruments | |||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Gross | |||||||||||||||||||||||||
Gross | Amounts | Net Amounts | |||||||||||||||||||||||
Amounts | Offset in the | Presented in the | |||||||||||||||||||||||
Recognized | Balance Sheets | Balance Sheets | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 2 | $ | 1 | $ | 1 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 2 | 1 | 1 | ||||||||||||||||||||||
Other financial instruments | 70 | 0 | 70 | ||||||||||||||||||||||
Other invested assets | $ | 72 | $ | 1 | $ | 71 | |||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||||
Description | |||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||
Equity contracts | $ | 1 | $ | 1 | $ | 0 | |||||||||||||||||||
Total Derivatives, subject to an ISDA Master Agreement(1) | 1 | 1 | 0 | ||||||||||||||||||||||
Other financial liabilities | 52 | 0 | 52 | ||||||||||||||||||||||
Other liabilities | $ | 53 | $ | 1 | $ | 52 | |||||||||||||||||||
Collateral Arrangements By Counterparty Not Offset In Consolidated Balancesheets [Table Text Block] | ' | ||||||||||||||||||||||||
Gross Collateral Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||
Net Amounts | Collateral (Received)/Held | ||||||||||||||||||||||||
Presented in the | Financial | Net | |||||||||||||||||||||||
Balance Sheets | Instruments | Cash | Amounts | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Counterparty A | $ | 6 | $ | 0 | $ | -6 | $ | 0 | |||||||||||||||||
Counterparty H | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Counterparty K | 2 | 0 | -2 | 0 | |||||||||||||||||||||
Counterparty L | 4 | 0 | -4 | 0 | |||||||||||||||||||||
Total Derivatives | $ | 13 | $ | 0 | $ | -12 | $ | 1 | |||||||||||||||||
Other financial assets | 71 | 0 | 0 | 71 | |||||||||||||||||||||
Other invested assets | $ | 84 | $ | 0 | $ | -12 | $ | 72 | |||||||||||||||||
Gross Collateral Amounts Not Offset in the Balance Sheets | |||||||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
Net Amounts | Collateral (Received)/Held | ||||||||||||||||||||||||
Presented in the | Financial | Net | |||||||||||||||||||||||
Balance Sheets | Instruments | Cash | Amounts | ||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Counterparty H | 1 | 0 | 0 | 1 | |||||||||||||||||||||
Total Derivatives | $ | 1 | $ | 0 | $ | 0 | $ | 1 | |||||||||||||||||
Other financial assets | 70 | 0 | 0 | 70 | |||||||||||||||||||||
Other invested assets | $ | 71 | $ | 0 | $ | 0 | $ | 71 | |||||||||||||||||
Net Investment Income Loss Investments Gains Losses [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 79 | $ | 97 | $ | 102 | |||||||||||||||||||
Mortgage loans on real estate | 2 | 9 | 10 | ||||||||||||||||||||||
Policy loans | 6 | 8 | 8 | ||||||||||||||||||||||
Derivative instruments | 8 | 0 | 0 | ||||||||||||||||||||||
Gross investment income (loss) | 95 | 114 | 120 | ||||||||||||||||||||||
Investment expenses | -3 | -4 | -4 | ||||||||||||||||||||||
Net Investment Income (Loss) | $ | 92 | $ | 110 | $ | 116 | |||||||||||||||||||
Investment Gains Losses Net Including Changes In Valuation Allowances [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(In Millions) | |||||||||||||||||||||||||
Fixed maturities | $ | 67 | $ | -5 | $ | -2 | |||||||||||||||||||
Impact of (repurchase) issuance of AllianceBernstein Units | 0 | -2 | 2 | ||||||||||||||||||||||
Mortgage loans on real estate | 1 | 2 | -1 | ||||||||||||||||||||||
Investment Gains (Losses), Net | $ | 68 | $ | -5 | $ | -1 |
VALUE_OF_BUISNESS_ACQUIRED_TAB
VALUE OF BUISNESS ACQUIRED (TABLES) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Value Of Business Acquired [Abstract] | ' | |||||||||
Value Of Business Acquired [Table Text Block] | ' | |||||||||
Gross | Accumulated | |||||||||
Carrying | Amortization | |||||||||
Amount | and Other | Net | ||||||||
(In Millions) | ||||||||||
VOBA | ||||||||||
31-Dec-13 | $ | 416 | $ | (398)(1) | $ | 18 | ||||
31-Dec-12 | $ | 416 | $ | -313 | $ | 103 |
FAIR_VALUE_DISCLOSURES_TABLES
FAIR VALUE DISCLOSURES (TABLES) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Fair Value Disclosures Tables [Abstract] | ' | |||||||||||||||||
Fair Value By Balance Sheet Grouping Text Block | ' | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(In Millions) | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity Securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 0 | $ | 624 | $ | 9 | $ | 633 | ||||||||||
U.S. Treasury, government and agency | 0 | 34 | 0 | 34 | ||||||||||||||
States and political subdivisions | 0 | 6 | 0 | 6 | ||||||||||||||
Commercial mortgage-backed | 0 | 0 | 24 | 24 | ||||||||||||||
Redeemable preferred stock | 8 | 8 | 0 | 16 | ||||||||||||||
Subtotal | 8 | 672 | 33 | 713 | ||||||||||||||
Other equity investments | 1 | 0 | 0 | 1 | ||||||||||||||
Options | 0 | 14 | 0 | 14 | ||||||||||||||
Cash equivalents | 127 | 0 | 0 | 127 | ||||||||||||||
Separate Accounts' assets | 1,823 | 15 | 0 | 1,838 | ||||||||||||||
Total Assets | $ | 1,959 | $ | 701 | $ | 33 | $ | 2,693 | ||||||||||
Liabilities: | ||||||||||||||||||
MSO and IUL indexed features’ liability | $ | 0 | $ | 14 | $ | 0 | $ | 14 | ||||||||||
Total Liabilities | $ | 0 | $ | 14 | $ | 0 | $ | 14 | ||||||||||
31-Dec-12 | ||||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity Securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 0 | $ | 1,684 | $ | 35 | $ | 1,719 | ||||||||||
U.S. Treasury, government and agency | 0 | 113 | 0 | 113 | ||||||||||||||
States and political subdivisions | 0 | 28 | 0 | 28 | ||||||||||||||
Foreign governments | 0 | 2 | 0 | 2 | ||||||||||||||
Commercial mortgage-backed | 0 | 0 | 35 | 35 | ||||||||||||||
Residential mortgage-backed(1) | 0 | 20 | 0 | 20 | ||||||||||||||
Asset-backed(2) | 0 | 5 | 6 | 11 | ||||||||||||||
Redeemable preferred stock | 37 | 61 | 0 | 98 | ||||||||||||||
Subtotal | 37 | 1,913 | 76 | 2,026 | ||||||||||||||
Other equity investments | 1 | 0 | 0 | 1 | ||||||||||||||
Cash equivalents | 145 | 0 | 0 | 145 | ||||||||||||||
GMIB reinsurance contracts | 0 | 0 | 7 | 7 | ||||||||||||||
Separate Accounts' assets | 1,623 | 15 | 0 | 1,638 | ||||||||||||||
Total Assets | $ | 1,806 | $ | 1,928 | $ | 83 | $ | 3,817 | ||||||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation Text Block | ' | |||||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Commercial | GMIB | |||||||||||||||||
Mortgage- | Asset- | Reinsurance | ||||||||||||||||
Corporate | backed | backed | Contracts | |||||||||||||||
(In Millions) | ||||||||||||||||||
Balance, January 1, 2013 | $ | 35 | $ | 35 | $ | 6 | $ | 7 | ||||||||||
Total gains (losses), realized and unrealized, included in: | ||||||||||||||||||
Earnings (loss) as: | ||||||||||||||||||
Net investment income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||
Investment gains (losses), net | 2 | -9 | 2 | 0 | ||||||||||||||
Increase (decrease) in the fair value of | ||||||||||||||||||
reinsurance contracts | 0 | 0 | 0 | -7 | ||||||||||||||
Subtotal | 2 | -9 | 2 | -7 | ||||||||||||||
Other comprehensive income (loss) | -2 | -1 | -2 | 0 | ||||||||||||||
Purchases | 0 | 0 | 0 | 0 | ||||||||||||||
Sales | -26 | -1 | -6 | 0 | ||||||||||||||
Transfers into Level 3(1) | 0 | 0 | 0 | 0 | ||||||||||||||
Balance, December 31, 2013 | $ | 9 | $ | 24 | $ | 0 | $ | 0 | ||||||||||
Balance, January 1, 2012 | $ | 34 | $ | 29 | $ | 5 | $ | 9 | ||||||||||
Total gains (losses), realized and unrealized included in: | ||||||||||||||||||
Earnings (loss) as: | ||||||||||||||||||
Net investment income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||
Investment gains (losses), net | 1 | -7 | 0 | 0 | ||||||||||||||
Increase (decrease) in the fair value of | ||||||||||||||||||
reinsurance contracts | 0 | 0 | 0 | -2 | ||||||||||||||
Subtotal | $ | 1 | $ | -7 | $ | 0 | $ | -2 | ||||||||||
Other comprehensive income (loss) | 0 | 13 | 1 | 0 | ||||||||||||||
Sales | -3 | 0 | 0 | 0 | ||||||||||||||
Transfers into Level 3(1) | 3 | 0 | 0 | 0 | ||||||||||||||
Balance, December 31, 2012 | $ | 35 | $ | 35 | $ | 6 | $ | 7 | ||||||||||
Fair Value Assets Unrealized Gains Losses By Category For Level 3 Assets And Liabilities Still Held [Table Text Block] | ' | |||||||||||||||||
Earnings (Loss) | ||||||||||||||||||
Increase | ||||||||||||||||||
(Decrease) in the | ||||||||||||||||||
Fair Value of | ||||||||||||||||||
Reinsurance | ||||||||||||||||||
Contracts | OCI | |||||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Full Year 2013 | ||||||||||||||||||
Still Held at December 31, 2013: | ||||||||||||||||||
Change in unrealized gains (losses): | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Commercial mortgage-backed | 0 | -2 | ||||||||||||||||
Other fixed maturities, available-for-sale | 0 | 0 | ||||||||||||||||
Total | $ | 0 | $ | -2 | ||||||||||||||
Level 3 Instruments | ||||||||||||||||||
Full Year 2012 | ||||||||||||||||||
Still Held at December 31, 2012: | ||||||||||||||||||
Change in unrealized gains (losses): | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Commercial mortgage-backed | 0 | 13 | ||||||||||||||||
Other fixed maturities, available-for-sale | 0 | 1 | ||||||||||||||||
Subtotal | $ | 0 | $ | 14 | ||||||||||||||
GMIB reinsurance contracts | -2 | 0 | ||||||||||||||||
Total | $ | -2 | $ | 14 | ||||||||||||||
Fair Value Inputs Quantitative Information [Table Text Block] | ' | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||||
Fair | Valuation | Significant | ||||||||||||||||
Value | Technique | Unobservable Input | Range | |||||||||||||||
December 31, 2012: | (In Millions) | |||||||||||||||||
Assets: | ||||||||||||||||||
Investments: | ||||||||||||||||||
Fixed maturity securities, available-for-sale: | ||||||||||||||||||
Corporate | $ | 11 | Matrix pricing model | Spread over the industry-specific | ||||||||||||||
benchmark yield curve | 600 bps - 650 bps | |||||||||||||||||
Commercial mortgage-backed | 35 | Discounted Cash flow | Constant default rate | 3.0% - 25.0% | ||||||||||||||
Probability of default | 55.00% | |||||||||||||||||
Loss severity | 49.00% | |||||||||||||||||
Discount rate | 3.72% - 13.42% | |||||||||||||||||
GMIB reinsurance contracts | 7 | Discounted Cash flow | Lapse Rates | 2.5% - 27.5% | ||||||||||||||
Withdrawal Rates | 3.50% | |||||||||||||||||
GMIB Utilization Rates | 0.0% - 15.0% | |||||||||||||||||
Non-performance risk | 13.5 bps | |||||||||||||||||
Volatility rates - Equity | 24.0%- 36.0% | |||||||||||||||||
Fair Value Disclosure Financial Instruments Not Carried At Fair Value [Table Text Block] | ' | |||||||||||||||||
Carrying | Fair Value | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(In Millions) | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Mortgage loans on real estate | $ | 28 | $ | 0 | $ | 0 | $ | 28 | $ | 28 | ||||||||
Policyholders liabilities: Investment contracts | 193 | 0 | 0 | 196 | 196 | |||||||||||||
31-Dec-12 | ||||||||||||||||||
Mortgage loans on real estate | $ | 45 | $ | 0 | $ | 0 | $ | 46 | $ | 46 | ||||||||
Policyholders liabilities: Investment contracts | 200 | 0 | 0 | 233 | 233 |
GMDB_GMIB_AND_NO_LAPSE_GUARANT1
GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES (TABLES) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Variable Annuity Contracts GMDB and GMIB Tables [Abstract] | ' | ||||||||||||||||||
Variable Annuity Contracts- GMDB GMIB [Table Text Block] | ' | ||||||||||||||||||
GMDB | GMIB | Total | |||||||||||||||||
(In Millions) | |||||||||||||||||||
Balance at January 1, 2011 | $ | 6 | $ | 2 | $ | 8 | |||||||||||||
Paid guarantee benefits | -2 | 0 | -2 | ||||||||||||||||
Other changes in reserve | 3 | 0 | 3 | ||||||||||||||||
Balance at December 31, 2011 | 7 | 2 | 9 | ||||||||||||||||
Paid guarantee benefits | -2 | 0 | -2 | ||||||||||||||||
Other changes in reserve | 3 | 0 | 3 | ||||||||||||||||
Balance at December 31, 2012 | 8 | 2 | 10 | ||||||||||||||||
Paid guarantee benefits | -3 | 0 | -3 | ||||||||||||||||
Other changes in reserve | 0 | 0 | 0 | ||||||||||||||||
Balance at December 31, 2013 | $ | 5 | $ | 2 | $ | 7 | |||||||||||||
Guaranteed Minimum Death Benefit Reinsurance Ceded [Table Text Block] | ' | ||||||||||||||||||
GMDB | |||||||||||||||||||
(In Millions) | |||||||||||||||||||
Balance at January 1, 2011 | $ | 3 | |||||||||||||||||
Paid guarantee benefits | 0 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2011 | 4 | ||||||||||||||||||
Paid guarantee benefits | 0 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2012 | 5 | ||||||||||||||||||
Paid guarantee benefits | -1 | ||||||||||||||||||
Other changes in reserve | 1 | ||||||||||||||||||
Balance at December 31, 2013 | $ | 5 | |||||||||||||||||
Schedule Of Net Amount Of Risk By Product And Guarantee [Text Block] | ' | ||||||||||||||||||
Return | |||||||||||||||||||
of | |||||||||||||||||||
Premium | Ratchet | Roll-Up | Combo | Total | |||||||||||||||
(Dollars In Millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | $ | 119 | $ | 192 | $ | N/A | $ | 30 | $ | 341 | |||||||||
Separate Accounts | $ | 321 | $ | 407 | $ | N/A | $ | 62 | $ | 790 | |||||||||
Net amount at risk, gross | $ | 2 | $ | 33 | $ | N/A | $ | 11 | $ | 46 | |||||||||
Net amount at risk, net of | |||||||||||||||||||
amounts reinsured | $ | 0 | $ | 0 | $ | N/A | $ | 0 | $ | 0 | |||||||||
Average attained age | |||||||||||||||||||
of contractholders | 66.2 | 66.9 | N/A | 67 | 66.6 | ||||||||||||||
Percentage of contractholders | |||||||||||||||||||
over age 70 | 26.80% | 27.50% | N/A | 26.70% | 27.20% | ||||||||||||||
Contractually specified | |||||||||||||||||||
interest rates | N/A | N/A | N/A | 5.00% | 5.00% | ||||||||||||||
GMIB: | |||||||||||||||||||
Account values invested in: | |||||||||||||||||||
General Account | N/A | N/A | $ | 30 | $ | N/A | $ | 30 | |||||||||||
Separate Accounts | N/A | N/A | $ | 61 | $ | N/A | $ | 61 | |||||||||||
Net amount at risk, gross | N/A | N/A | $ | 2 | $ | N/A | $ | 2 | |||||||||||
Net amount at risk, net of | |||||||||||||||||||
amounts reinsured | N/A | N/A | $ | 0 | $ | N/A | $ | 0 | |||||||||||
Weighted average years | |||||||||||||||||||
remaining until annuitization | N/A | N/A | 1.5 | N/A | 1.5 | ||||||||||||||
Contractually specified | |||||||||||||||||||
interest rates | N/A | N/A | 5.00% | N/A | 5.00% | ||||||||||||||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Text Block] | ' | ||||||||||||||||||
Investment in Variable Insurance Trust Mutual Funds | |||||||||||||||||||
December 31, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(In Millions) | |||||||||||||||||||
GMDB: | |||||||||||||||||||
Equity | $ | 696 | $ | 643 | |||||||||||||||
Fixed income | 57 | 73 | |||||||||||||||||
Balanced | 16 | 15 | |||||||||||||||||
Other | 21 | 28 | |||||||||||||||||
Total | $ | 790 | $ | 759 | |||||||||||||||
GMIB: | |||||||||||||||||||
Equity | $ | 52 | $ | 47 | |||||||||||||||
Fixed income | 8 | 9 | |||||||||||||||||
Other | 1 | 3 | |||||||||||||||||
Total | $ | 61 | $ | 59 |
REINSURANCE_TABLES
REINSURANCE (TABLES) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Reinsurance Disclosures Tables [Abstract] | ' | ||||||||||
Schedule Of Effect Of Reinsurance [Table Text Block] | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
(In Millions) | |||||||||||
Direct premiums | $ | 72 | $ | 56 | $ | 68 | |||||
Assumed | 1 | 2 | 2 | ||||||||
Reinsurance ceded | -48 | -26 | -28 | ||||||||
Premiums | $ | 25 | $ | 32 | $ | 42 | |||||
Variable Life and Investment-type Product Policy Fee Income Ceded | $ | 31 | $ | 29 | $ | 31 | |||||
Policyholders' Benefits Ceded | $ | 125 | $ | 84 | $ | 39 |
INCOME_TAXES_TABLES
INCOME TAXES (TABLES) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Tables [Abstract] | ' | ||||||||||||
Summary Of Income Tax Expense Benefit [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Income tax (expense) benefit: | |||||||||||||
Current (expense) benefit | $ | -90 | $ | -4 | $ | 39 | |||||||
Deferred (expense) benefit | 74 | -2 | -38 | ||||||||||
Total | $ | -16 | $ | -6 | $ | 1 | |||||||
Schedule Of Components Of Income Tax Expense Benefit [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Tax at statutory rate | $ | -15 | $ | -15 | $ | -26 | |||||||
Dividends received deduction | 1 | 2 | 2 | ||||||||||
Tax settlement | 0 | 9 | 7 | ||||||||||
Valuation allowance | 0 | 0 | 19 | ||||||||||
Prior year adjustment | -2 | 0 | 0 | ||||||||||
Other | 0 | -2 | -1 | ||||||||||
Income Tax (Expense) Benefit | $ | -16 | $ | -6 | $ | 1 | |||||||
Schedule Of Deferred Tax Assets And Liabilities [Table Text Block] | ' | ||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||
(In Millions) | |||||||||||||
Reserves and reinsurance | $ | 77 | $ | 0 | $ | 0 | $ | 21 | |||||
DAC | 0 | 56 | 0 | 46 | |||||||||
VOBA | 0 | 6 | 0 | 34 | |||||||||
Investments | 0 | 13 | 0 | 25 | |||||||||
Goodwill and other intangible assets | 0 | 9 | 0 | 9 | |||||||||
Other | 0 | 7 | 8 | 0 | |||||||||
Total | $ | 77 | $ | 91 | $ | 8 | $ | 135 | |||||
Unrecognized Tax Benefits Reconciliation [Table Text Block] | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Balance, beginning of year | $ | 4 | $ | 17 | $ | 16 | |||||||
Additions for tax positions of prior years | 1 | 1 | 1 | ||||||||||
Reductions for tax positions of prior years | 0 | -2 | 0 | ||||||||||
Settlements with tax authorities | 0 | -12 | 0 | ||||||||||
Balance, End of Year | $ | 5 | $ | 4 | $ | 17 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Comprehensive Income Note Tables [Abstract] | ' | ||||||||||||
Schedule Of Accumulated Other Comprehensive Income Loss [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Unrealized gains (losses) on investments, net of adjustments | $ | 8 | $ | 82 | $ | 55 | |||||||
Total Accumulated Other Comprehensive Income (Loss) | $ | 8 | $ | 82 | $ | 55 | |||||||
Schedule Of Comprehensive Income Loss [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In Millions) | |||||||||||||
Change in net unrealized gains (losses) on investments: | |||||||||||||
Net unrealized gains (losses) arising during the year | $ | -58 | $ | 28 | $ | 22 | |||||||
(Gains) losses reclassified into net earnings (loss) during the year(1) | -44 | 3 | 1 | ||||||||||
Change in net unrealized gains (losses) on investments | -102 | 31 | 23 | ||||||||||
Adjustments for DAC and VOBA and deferred income tax (expense) benefit | 28 | -4 | -13 | ||||||||||
Other Comprehensive Income (Loss), net of adjustments and (net of deferred | |||||||||||||
income tax expense (benefit) of $(40) million, $15 million and $6 million | $ | -74 | $ | 27 | $ | 10 |
ORGANIZATION_DETAILS
ORGANIZATION (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Transferred Or Ceded Assets (Net of Ceding commissions [Abstract] | ' | ' | ' | ' |
Fixed Maturities | $713 | $2,026 | ' | ' |
Cash | 139 | 151 | 61 | 92 |
Policy Loans | 142 | 137 | ' | ' |
Transferred Liabilities [Abstract] | ' | ' | ' | ' |
Future policy benefits and other policyholders liabilities | 323 | 397 | ' | ' |
Accelerated Amortization Of Assets And Liabilities [Abstract] | ' | ' | ' | ' |
Value of business acquired | 18 | 103 | ' | ' |
Deferred policy acquisition costs | 218 | 218 | ' | ' |
Deferred cost of reinsurance | 91 | 0 | ' | ' |
Protective Life [Member] | ' | ' | ' | ' |
Deferred Cost Of Reinsurance [Line Items] | ' | ' | ' | ' |
Ceding commission | 370 | ' | ' | ' |
Transferred Or Ceded Assets (Net of Ceding commissions [Abstract] | ' | ' | ' | ' |
Fixed Maturities | 1,102 | ' | ' | ' |
Cash | 74 | ' | ' | ' |
Policy Loans | 132 | ' | ' | ' |
Total assets transferred or ceded (net of ceding commission) | 1,308 | ' | ' | ' |
Transferred Liabilities [Abstract] | ' | ' | ' | ' |
Future policy benefits and other policyholders liabilities | 1,334 | ' | ' | ' |
Amounts due to reinsurer | 40 | ' | ' | ' |
Total liabilities transferred | 1,374 | ' | ' | ' |
Accelerated Amortization Of Assets And Liabilities [Abstract] | ' | ' | ' | ' |
Value of business acquired | 117 | ' | ' | ' |
Deferred policy acquisition costs | 71 | ' | ' | ' |
Initial fee liability | -27 | ' | ' | ' |
Net accelerated amortization of assets and liabilities | 161 | ' | ' | ' |
Deferred cost of reinsurance | $95 | ' | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES - Investments and Mortgage Loans (DETAILS) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum [Member] | Maximum [Member] | Commercial Real Estate Portfolio Segment [Member] | Commercial Real Estate Portfolio Segment [Member] | |
Mortgage Loans on Real Estate, Write-down or Reserve, Management Judgment Factor [Line Items] | ' | ' | ' | ' |
Financing Receivable, Recorded Investment, Nonaccrual Status | ' | ' | $6 | $6 |
Real Estate and Accumulated Depreciation [Line Items] | ' | ' | ' | ' |
Real Estate and Accumulated Depreciation, Life Used for Depreciation | '40 years 0 months 0 days | '50 years 0 months 0 days | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES - DAC AND VOBA (DETAILS) | 12 Months Ended |
Dec. 31, 2013 | |
DAC [Abstract] | ' |
VOBA Amortization Period Maximum | '50 years 0 months 0 days |
Estimated Average Annual Rate of Return, Gross | 9.00% |
Estimated Average Annual Rate of Return, Net | 7.83% |
Future Annual Rate of Return, Gross, Maximum | 15.00% |
Future Annual Rate of Return, Net, Maximum | 13.83% |
Future Annual Rate of Return, Gross, Minimum | 0.00% |
Future Annual Rate of Return, Net, Minimum | 1.17% |
Future Annual Rate of Return, Assumption, Duration, Maximum (in years) | '5 years 0 months 0 days |
Future Rate of Return, Gross, Annualized Rate | 0.00% |
Future Rate of Return, Gross, Annualized Period (in quarters) | '9 |
Future Rate of Return, Gross, Mean Rate | 9.00% |
Future Rate of Return, Gross, Period for Mean Rate (in quarters) | '11 |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES - Liability for Future Policy Benefit (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Separate Accounts Disclosure [Abstract] | ' | ' | ' |
Gain (Loss) Recognized on Assets Transferred to Separate Account | $256 | $196 | ($49) |
INVESTMENTS_AVAILABLE_FOR_SALE
INVESTMENTS (AVAILABLE FOR SALE SECURITIES) (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Fair Value | $713 | $2,026 | ' |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less, Amortized Cost | 102 | ' | ' |
Due in years two through five, Amortized Cost | 184 | ' | ' |
Due in years six through ten, Amortized Cost | 302 | ' | ' |
Due after ten years, Amortized Cost | 60 | ' | ' |
Subtotal | 648 | ' | ' |
Debt Maturities, Amortized Cost Basis | 694 | ' | ' |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' | ' |
Due in one year or less, Fair Value | 104 | ' | ' |
Due in years two through five, Fair Value | 198 | ' | ' |
Due in years six through ten, Fair Value | 311 | ' | ' |
Due after ten years, Fair Value | 60 | ' | ' |
Subtotal | 673 | ' | ' |
Available For Sale Securities, Debt Maturities, Fair Value | 697 | ' | ' |
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | ' | ' | ' |
Proceeds from sales | 1,200 | 13 | 20 |
Gross gains on sales | 84 | 2 | 1 |
Gross losses on sales | 9 | 0 | 1 |
Total other-than-temporary impairment losses | -6 | -7 | -2 |
Portion of loss recognized in other comprehensive income (loss) | 0 | 0 | 0 |
Credit losses recognized in earnings (loss) | -6 | -7 | -2 |
Fixed Maturities - Credit Loss Impairments | ' | ' | ' |
Balance beginning of period | -72 | -74 | ' |
Previously recognized impairments on securities that matured, paid, prepaid or sold | 18 | 9 | ' |
Recognized impairments on securities impaired to fair value this period | 0 | 0 | ' |
Impairments recognized this period on securities not previously impaired | -6 | -6 | ' |
Additional impairments this period on securities previously impaired | 0 | -1 | ' |
Increases due to passage of time on previously recorded credit losses | 0 | 0 | ' |
Accretion of previously recognized impairments due to increases in expected cash flows | 0 | 0 | ' |
Balances at December 31, | -60 | -72 | -74 |
Protective Life [Member] | ' | ' | ' |
Available For Sale Fixed Maturities Proceeds Gross Gains And Gross Losses From Sales And Other Than Temporary Impairments [Abstract] | ' | ' | ' |
Proceeds from sales | 1,090 | ' | ' |
Gross gains on sales | 81 | ' | ' |
Gross losses on sales | 6 | ' | ' |
Corporate [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 608 | 1,553 | ' |
Gross Unrealized Gains | 33 | 167 | ' |
Gross Unrealized Losses | 8 | 1 | ' |
Fair Value | 633 | 1,719 | ' |
US Treasury Government And Agency [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 34 | 106 | ' |
Gross Unrealized Gains | ' | 7 | ' |
Fair Value | 34 | 113 | ' |
State and Political Sub-divisions [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 6 | 25 | ' |
Gross Unrealized Gains | ' | 3 | ' |
Fair Value | 6 | 28 | ' |
Foreign Govts [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | ' | 2 | ' |
Fair Value | ' | 2 | ' |
Commercial Mortgage-backed [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 46 | 57 | ' |
Gross Unrealized Gains | 1 | 5 | ' |
Gross Unrealized Losses | 23 | 27 | ' |
Fair Value | 24 | 35 | ' |
OTTI in AOCI (3) | 1 | 2 | ' |
Available For Sale Securities Debt Maturities Amortized Cost [Abstract] | ' | ' | ' |
AFS without a single maturity date, amortized cost | 46 | ' | ' |
Available-for-sale Securities, Debt Maturities, Fair Value [Abstract] | ' | ' | ' |
AFS without a single maturity date, Fair Value | 24 | ' | ' |
Residential Mortgage-backed [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | ' | 19 | ' |
Gross Unrealized Gains | ' | 1 | ' |
Fair Value | ' | 20 | ' |
Asset-backed [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | ' | 9 | ' |
Gross Unrealized Gains | ' | 2 | ' |
Fair Value | ' | 11 | ' |
Redeemable preferred stock [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 18 | 97 | ' |
Gross Unrealized Gains | ' | 2 | ' |
Gross Unrealized Losses | 2 | 1 | ' |
Fair Value | 16 | 98 | ' |
Fixed Maturities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 712 | 1,868 | ' |
Gross Unrealized Gains | 34 | 187 | ' |
Gross Unrealized Losses | 33 | 29 | ' |
Fair Value | 713 | 2,026 | ' |
OTTI in AOCI (3) | $1 | $2 | ' |
INVESTMENTS_NET_UNREALIZED_INV
INVESTMENTS (NET UNREALIZED INVESTMENTS (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Net unrealized gains (losses) arising during the year | ($58) | $28 | $22 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -44 | 3 | 1 |
Fixed Maturities [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, End of Year | 1 | 158 | ' |
Fixed Maturities [Member] | Unrealized Investment Gains Losses With Otti Losses [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, End of Year | -4 | 2 | ' |
Fixed Maturities [Member] | Unrealized Investment Gains Losses All Other [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, End of Year | 5 | 156 | ' |
Fixed Maturities [Member] | Net Unrealized Gains Losses On Investmetns [Member] | Unrealized Investment Gains Losses With Otti Losses [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | 2 | -5 | ' |
Net unrealized gains (losses) arising during the year | -5 | 6 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -1 | 1 | ' |
Balance, End of Year | -4 | 2 | ' |
Fixed Maturities [Member] | Net Unrealized Gains Losses On Investmetns [Member] | Unrealized Investment Gains Losses All Other [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | 156 | 115 | ' |
Net unrealized gains (losses) arising during the year | -84 | 37 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -67 | 4 | ' |
Balance, End of Year | 5 | 156 | ' |
Fixed Maturities [Member] | DAC and VOBA [Member} | Unrealized Investment Gains Losses With Otti Losses [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | -1 | 1 | ' |
Deferred Policy Acquisition Cost Amortization Expense Unrealized Investment Gains Losses | -48 | -2 | ' |
Balance, End of Year | -49 | -1 | ' |
Fixed Maturities [Member] | DAC and VOBA [Member} | Unrealized Investment Gains Losses All Other [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | -31 | -27 | ' |
Net unrealized gains (losses) arising during the year | ' | 0 | ' |
Deferred Policy Acquisition Cost Amortization Expense Unrealized Investment Gains Losses | 91 | -4 | ' |
Balance, End of Year | 60 | -31 | ' |
Fixed Maturities [Member] | Deferred Income Tax Asset Liability [Member] | Unrealized Investment Gains Losses With Otti Losses [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | 0 | 2 | ' |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 19 | -2 | ' |
Balance, End of Year | 19 | 0 | ' |
Fixed Maturities [Member] | Deferred Income Tax Asset Liability [Member] | Unrealized Investment Gains Losses All Other [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | -44 | -31 | ' |
Net unrealized gains (losses) arising during the year | ' | 0 | ' |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 21 | -13 | ' |
Balance, End of Year | -23 | -44 | ' |
Fixed Maturities [Member] | AOCI Gain Losses Related To Net Unrealized Investment Gains Losses [Member] | Unrealized Investment Gains Losses With Otti Losses [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | 1 | -2 | ' |
Net unrealized gains (losses) arising during the year | -5 | 6 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -1 | 1 | ' |
Deferred Policy Acquisition Cost Amortization Expense Unrealized Investment Gains Losses | -48 | -2 | ' |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 19 | -2 | ' |
Balance, End of Year | -34 | 1 | ' |
Fixed Maturities [Member] | AOCI Gain Losses Related To Net Unrealized Investment Gains Losses [Member] | Unrealized Investment Gains Losses All Other [Member] | ' | ' | ' |
Net Unrealized Investment Gains Losses Recognized In Aoci Roll Forward [Abstract] | ' | ' | ' |
Balance, beginning of year | 81 | 57 | ' |
Net unrealized gains (losses) arising during the year | -84 | 37 | ' |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | -67 | 4 | ' |
Deferred Policy Acquisition Cost Amortization Expense Unrealized Investment Gains Losses | 91 | -4 | ' |
Impact of net unrealized investment gains (losses) on Deferred income taxes | 21 | -13 | ' |
Balance, End of Year | $42 | $81 | ' |
INVESTMENTS_FIXED_MATURITIES_A
INVESTMENTS (FIXED MATURITIES AVAILABLE FOR SALE) (DETAILS) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Number Of Fixed Maturities | 143 | 76 |
Subprime residential mortgage loans [Member] | ' | ' |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | $0 | $0 |
Corporate [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 109 | 44 |
Less than 12 Months, Gross Unrealized Losses | -6 | ' |
12 Months or Longer, Fair Value | 38 | 14 |
12 Months or Longer, Gross Unrealized Losses | -2 | -1 |
Total Fair Value | 147 | 58 |
Total, Gross Unrealized Losses | -8 | -1 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 608 | 1,553 |
US Treasury Government And Agency [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 21 | 1 |
Total Fair Value | 21 | 1 |
Total, Gross Unrealized Losses | 0 | 0 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 34 | 106 |
State and Political Sub-divisions [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | -1 | ' |
Total Fair Value | -1 | ' |
Total, Gross Unrealized Losses | 0 | ' |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 6 | 25 |
Foreign Govts [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
12 Months or Longer, Fair Value | ' | 2 |
Total Fair Value | ' | 2 |
Total, Gross Unrealized Losses | 0 | 0 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | ' | 2 |
Commercial Mortgage-backed [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 13 | ' |
Less than 12 Months, Gross Unrealized Losses | -13 | -1 |
12 Months or Longer, Fair Value | 8 | 26 |
12 Months or Longer, Gross Unrealized Losses | -10 | -26 |
Total Fair Value | 21 | 26 |
Total, Gross Unrealized Losses | -23 | -27 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 46 | 57 |
Residential Mortgage-backed [Member] | ' | ' |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | ' | 19 |
Asset-backed [Member] | ' | ' |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | ' | 9 |
Redeemable preferred stock [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 8 | 14 |
Less than 12 Months, Gross Unrealized Losses | -2 | ' |
12 Months or Longer, Fair Value | ' | 30 |
12 Months or Longer, Gross Unrealized Losses | ' | -1 |
Total Fair Value | 8 | 44 |
Total, Gross Unrealized Losses | -2 | -1 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis | 18 | 97 |
Fixed Maturities [Member] | ' | ' |
Available For Sale Securities Continuous Unrealized Loss Position [Line Items] | ' | ' |
Less than 12 Months, Fair Value | 152 | 59 |
Less than 12 Months, Gross Unrealized Losses | -21 | -1 |
12 Months or Longer, Fair Value | 46 | 72 |
12 Months or Longer, Gross Unrealized Losses | -12 | -28 |
Total Fair Value | 198 | 131 |
Total, Gross Unrealized Losses | -33 | -29 |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Debt Securities Exposure In Single Issuer Greater Than Stated Percentage Of Total Investments | 2.80% | ' |
Debt Securities Exposure In Single Issuer Of Total Investments | 27 | 27 |
Available-for-sale Securities, Amortized Cost Basis | 712 | 1,868 |
Unrealized investment gains (losses) | 1 | 158 |
The carrying value of fixed maturities non-income producing | 2 | ' |
Fixed Maturities [Member] | Other Than Investment Grade [Member] | ' | ' |
Investments In Fixed Maturity Securities Other Disclosure [Abstract] | ' | ' |
Available-for-sale Securities, Amortized Cost Basis Other Than Investment Grade | 60 | 125 |
Percentage Of Available For Sale Securities | 8.40% | 6.70% |
Unrealized investment gains (losses) | $22 | $17 |
INVESTMENTS_M_Loans_DETAILS
INVESTMENTS (M Loans) (DETAILS) (Commercial Real Estate Portfolio Segment [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commercial Real Estate Portfolio Segment [Member] | ' | ' | ' |
Allowance for Credit Losses [Roll Forward] | ' | ' | ' |
Beginning balance | $4 | $3 | $2 |
Recoveries | -1 | 0 | 0 |
Provisions | 0 | 1 | 1 |
Ending balance | 3 | 4 | 3 |
Ending Balance [Abstract]: | ' | ' | ' |
Individually Evaluated for Impairment | $3 | $4 | $3 |
INVESTMENTS_Loans_DETAILS
INVESTMENTS ( Loans) (DETAILS) (Commercial Real Estate Portfolio Segment [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | $31 | $49 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
30 to 59 Days Past Due | 0 | 0 |
60 to 89 Days Past Due | 0 | 0 |
Greater than 90 Days Past Due | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 31 | 49 |
Total financing receivables | 31 | 49 |
Recorded Investment 90 Days Past Due and Still Accruing | 0 | 0 |
Greater than 2.0x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 9 | 14 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 9 | 14 |
1.8x to 2.0x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 0 | 0 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 0 | 0 |
1.5x to 1.8x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 16 | 17 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 16 | 17 |
1.2x to 1.5x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 6 | 6 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 6 | 6 |
1.0x to 1.2x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 0 | 12 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 0 | 12 |
Less than 1.0x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 0 | 0 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 0 | 0 |
0%-50% [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 16 | 33 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 16 | 33 |
0%-50% [Member] | Greater than 2.0x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | ' | 4 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | ' | 4 |
0%-50% [Member] | 1.5x to 1.8x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 16 | 17 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 16 | 17 |
0%-50% [Member] | 1.0x to 1.2x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | ' | 12 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | ' | 12 |
50%-70% [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 6 | 6 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 6 | 6 |
50%-70% [Member] | 1.2x to 1.5x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 6 | 6 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 6 | 6 |
70%-90% [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 0 | 0 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 0 | 0 |
90% Plus [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 9 | 10 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 9 | 10 |
90% Plus [Member] | Greater than 2.0x [Member] | ' | ' |
Mortgage Loans by Loan-to-Value & Debt Service Coverage Ratios [Line Items] | ' | ' |
Principal amount of mortage loan | 9 | 10 |
Age Analysis of Past Due Mortgage Loans [Abstract] | ' | ' |
Total financing receivables | 9 | 10 |
With Related Allowance Recorded [Member] | ' | ' |
Impaired Mortgage Loans [Abstract] | ' | ' |
Recorded Investment | 9 | 10 |
Unpaid principal balance | 9 | 10 |
Related allowance | -3 | -4 |
Average Record investments | $10 | $10 |
INVESTMENTS_Equity_DETAILS
INVESTMENTS (Equity) (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity Method Investment, Summarized Financial Information [Abstract] | ' | ' | ' |
Total Assets | $7,386 | $8,115 | ' |
Total Liabilities | 3,316 | 4,312 | ' |
Total Partner's Capital | 4,070 | 3,803 | ' |
Total Liabilities and Partners' Capital | 7,386 | 8,115 | ' |
MLOA's Equity investment in AllianceBernstein | 70 | 69 | 72 |
Statement of Earnings (Loss) [Abstract] | ' | ' | ' |
Total Revenues | 2,915 | 2,737 | 2,750 |
Total Expenses | 2,351 | 2,534 | 2,958 |
Net Earnings (Loss) | 518 | 189 | -175 |
MLOA's Equity in earnings (loss) of AllianceBernstein | 5 | 2 | -2 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' |
Equity investments carrying value | 1 | 2 | ' |
Investments units in Alliance Berbstein | 2.6 | ' | ' |
Investments in and Advances to Affiliates, at Fair Value [Roll Forward] | ' | ' | ' |
Balance, beginning | 69 | 72 | ' |
Equity in net earnings (losses) | 5 | 2 | -2 |
Impact Issuance/Repurchase Affiliate Units | 0 | -2 | ' |
Dividends received | -4 | -3 | ' |
Balance, ending | $70 | $69 | $72 |
INVESTMENTS_Derivatives_DETAIL
INVESTMENTS (Derivatives) (DETAILS) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instrument Detail [Abstract] | ' | ' |
Cash And Securities Collateral For Derivative Contract | $12 | $0 |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 158 | 29 |
Derivative Asset, Fair Value, Net | 20 | 9 |
Derivative Liability, Fair Value, Net | 20 | 1 |
Gain (losses) reported in net earnings (losses) | -7 | -2 |
Equity Contracts Options [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Notional Amount | 158 | 29 |
Derivative Asset, Fair Value, Net | 20 | 2 |
Derivative Liability, Fair Value, Net | 6 | 1 |
Gain (losses) reported in net earnings (losses) | 8 | 0 |
GMIB Reinsurance Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | ' | 7 |
Gain (losses) reported in net earnings (losses) | -7 | -2 |
Net Investment Income (Loss) [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Gain (losses) reported in net earnings (losses) | 8 | 0 |
MSO and IUL indexed features | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Net | 14 | ' |
Gain (losses) reported in net earnings (losses) | ($8) | ' |
INVESTMENTS_offsetting_DETAILS
INVESTMENTS (offsetting) (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | $84 | $71 |
Equity Contract [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Gross amounts recognized | 20 | 2 |
Gross amounts offset in the balance sheets | 6 | 1 |
Net amounts presented in the balance sheets | 14 | 1 |
Derivatives Subject to an ISDA Master Agreements [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Gross amounts recognized | 20 | 2 |
Gross amounts offset in the balance sheets | 6 | 1 |
Net amounts presented in the balance sheets | 14 | 1 |
Other Financial Instruments [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Gross amounts recognized | 70 | 70 |
Net amounts presented in the balance sheets | 70 | 70 |
Other Invested Assets [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Gross amounts recognized | 90 | 72 |
Gross amounts offset in the balance sheets | 6 | 1 |
Net amounts presented in the balance sheets | $84 | $71 |
INVESTMENTS_offsetting_DETAILS1
INVESTMENTS (offsetting) (DETAILS1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Equity Contract [Member] | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross amount recognized | $6 | $1 |
Gross amounts offset in the balance sheets | 6 | 1 |
Derivatives Subject to an ISDA Master Agreements [Member] | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross amount recognized | 6 | 1 |
Gross amounts offset in the balance sheets | 6 | 1 |
Other Financial Liabilities [Member] | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross amount recognized | 83 | 52 |
Net amounts presented in the balance sheets | 83 | 52 |
Other Liabilities [Member] | ' | ' |
Offsetting Liabilities [Line Items] | ' | ' |
Gross amount recognized | 89 | 53 |
Gross amounts offset in the balance sheets | 6 | 1 |
Net amounts presented in the balance sheets | $83 | $52 |
INVESTMENTS_offsetting_DETAILS2
INVESTMENTS (offsetting) (DETAILS2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | $84 | $71 |
Collateral Cash (Received) | -12 | ' |
Net Amounts | 72 | 71 |
Counterparty A [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 6 | ' |
Collateral Cash (Received) | -6 | ' |
Counterparty H [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 1 | 1 |
Net Amounts | 1 | 1 |
Counterparty K [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 2 | ' |
Collateral Cash (Received) | -2 | ' |
Counterparty L [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 4 | ' |
Collateral Cash (Received) | -4 | ' |
Total Derivative [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 13 | 1 |
Collateral Cash (Received) | -12 | ' |
Net Amounts | 1 | 1 |
Other Financial Instruments [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Net amounts presented in the balance sheets | 71 | 70 |
Net Amounts | $71 | $70 |
INVESTMENTS_Net_Invesmtent_Inc
INVESTMENTS (Net Invesmtent Income) (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Interest And Dividend Income Operating | $95 | $114 | $120 |
Investment Income Investment Expense | -3 | -4 | -4 |
Total net investment income (loss) | 92 | 110 | 116 |
Gain (Loss) on Investments | 68 | -5 | -1 |
Fixed Maturities [Member] | ' | ' | ' |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Interest And Dividend Income Operating | 79 | 97 | 102 |
Gain (Loss) on Investments | 67 | -5 | -2 |
Mortgage Loans On Real Estate Member | ' | ' | ' |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Interest And Dividend Income Operating | 2 | 9 | 10 |
Gain (Loss) on Investments | 1 | 2 | -1 |
Policy Loans [Member] | ' | ' | ' |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Interest And Dividend Income Operating | 6 | 8 | 8 |
Derivative [Member] | ' | ' | ' |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Interest And Dividend Income Operating | 8 | ' | ' |
Gain (Loss) on Sale of Derivatives | 2 | ' | ' |
Unrealized Gain (Loss) on Derivatives | 6 | ' | ' |
Impact issuance (repurchase) of AllianceBernstein units [Member] | ' | ' | ' |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ' | ' | ' |
Gain (Loss) on Investments | $0 | ($2) | $2 |
VALUE_OF_BUSINESS_ACQUIRED_DET
VALUE OF BUSINESS ACQUIRED (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Value Of Business Acquired [Line Items] | ' | ' | ' |
Gross Carrying Amount | $416 | $416 | ' |
Accumulated Amortization and Other | -398 | -313 | ' |
Net | 18 | 103 | ' |
Total amortization | 11 | -13 | 10 |
Amortization Of Value Of Business Acquired VOBA Low End Range | 1 | ' | ' |
Amortization Of Value Of Business Acquired VOBA High End Range | 3 | ' | ' |
Protective Life [Member] | ' | ' | ' |
Value Of Business Acquired [Line Items] | ' | ' | ' |
Net | $117 | ' | ' |
FAIR_VALUE_DISCLOSURES_DETAILS
FAIR VALUE DISCLOSURES (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $713 | $2,026 |
Other Equity Investments, Fair Value Disclosure | 1 | 1 |
Derivative Asset, Fair Value, Net | 20 | 9 |
Cash and Cash Equivalents, Fair Value Disclosure | 127 | 145 |
GMIB Reinsurance Contracts, Fair Value Disclosure | 0 | 7 |
Separate Accounts Assets, Fair Value Disclosure | ' | 1,638 |
Total Assets At Fair Value | 2,693 | 3,817 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total Liabilities | 14 | ' |
Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 633 | 1,719 |
US Treasury Government And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 34 | 113 |
State and Political Sub-divisions [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6 | 28 |
Foreign Govts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 2 |
Commercial Mortgage-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 24 | 35 |
Residential Mortgage-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 20 |
Asset-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 11 |
Redeemable preferred stock [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 16 | 98 |
MSO and IUL indexed features | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Guarantees | 14 | ' |
Fair Value Inputs Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8 | 37 |
Other Equity Investments, Fair Value Disclosure | 1 | 1 |
Cash and Cash Equivalents, Fair Value Disclosure | 127 | 145 |
Separate Accounts Assets, Fair Value Disclosure | 1,823 | 1,623 |
Total Assets At Fair Value | 1,959 | 1,806 |
Fair Value Inputs Level 1 [Member] | Redeemable preferred stock [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8 | 37 |
Fair Value Inputs Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 672 | 1,913 |
Separate Accounts Assets, Fair Value Disclosure | 15 | 15 |
Total Assets At Fair Value | 701 | 1,928 |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Total Liabilities | 14 | ' |
Fair Value Inputs Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 624 | 1,684 |
Fair Value Inputs Level 2 [Member] | US Treasury Government And Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 34 | 113 |
Fair Value Inputs Level 2 [Member] | State and Political Sub-divisions [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 6 | 28 |
Fair Value Inputs Level 2 [Member] | Foreign Govts [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 2 |
Fair Value Inputs Level 2 [Member] | Residential Mortgage-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 20 |
Fair Value Inputs Level 2 [Member] | Asset-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | 5 |
Fair Value Inputs Level 2 [Member] | Redeemable preferred stock [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8 | 61 |
Fair Value Inputs Level 2 [Member] | Options | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | 14 | ' |
Fair Value Inputs Level 2 [Member] | MSO and IUL indexed features | ' | ' |
Liabilities, Fair Value Disclosure [Abstract] | ' | ' |
Guarantees | 14 | ' |
Fair Value Inputs Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 33 | 76 |
GMIB Reinsurance Contracts, Fair Value Disclosure | 0 | 7 |
Total Assets At Fair Value | 33 | 83 |
Fair Value Inputs Level 3 [Member] | Corporate Debt Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 9 | 35 |
Fair Value Inputs Level 3 [Member] | Commercial Mortgage-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 24 | 35 |
Fair Value Inputs Level 3 [Member] | Asset-backed [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | $6 |
FAIR_VALUE_DISCLOSURES_DETAILS1
FAIR VALUE DISCLOSURES (DETAILS 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | $713 | $2,026 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net [Abstract] | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | ' | 3 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Percentage | ' | 0.40% |
Public Fixed Maturities [Member] | ' | ' |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 556 | 1,557 |
Percentage Of Available For Sale Fixed Maturity Assets Measured At Fair Value On Recurring Basis | 20.60% | 40.90% |
Private Fixed Maturities [Member] | ' | ' |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 157 | 469 |
Percentage Of Available For Sale Fixed Maturity Assets Measured At Fair Value On Recurring Basis | 5.80% | 12.30% |
Fair Value Inputs Level 1 [Member] | ' | ' |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 8 | 37 |
Percentage of Assets Measured at Fair Value on Recurring Basis | 72.80% | 47.40% |
Fair Value Inputs Level 2 [Member] | ' | ' |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 672 | 1,913 |
Percentage of Assets Measured at Fair Value on Recurring Basis | 26.00% | 50.60% |
Mortgage- and Asset-backed Securities | ' | 20 |
Fair Value Inputs Level 3 [Member] | ' | ' |
Fair Value Financial Instruments [Line Items] | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | 33 | 76 |
Percentage of Assets Measured at Fair Value on Recurring Basis | 1.20% | 2.00% |
Mortgage- and Asset-backed Securities | 24 | 41 |
Fair Value Disclosures Broker Priced | ' | $9 |
FAIR_VALUE_DISCLOSURES_DETAILS2
FAIR VALUE DISCLOSURES (DETAILS 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Gain (Loss) on Investments | $68 | ($5) | ($1) |
Transfers into level 3 | ' | 3 | ' |
Level 3 Assets And Liabilities Still Held [Member] | ' | ' | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Increase (decrease) in the fair value of the reinsurance contracts | 0 | -2 | ' |
Other Comprehensive Income (Loss) | -2 | 14 | ' |
Corporate [Member] | Fair Value Inputs Level 3 [Member] | ' | ' | ' |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Opening Balance | 35 | 34 | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Gain (Loss) on Investments | 2 | 1 | ' |
Subtotal | 2 | 1 | ' |
Other Comprehensive Income (Loss) | -2 | ' | ' |
Sales | -26 | -3 | ' |
Transfers into level 3 | ' | 3 | ' |
Closing Balance | 9 | 35 | ' |
Commercial Mortgage-backed [Member] | Fair Value Inputs Level 3 [Member] | ' | ' | ' |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Opening Balance | 35 | 29 | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Gain (Loss) on Investments | -9 | -7 | ' |
Subtotal | -9 | -7 | ' |
Other Comprehensive Income (Loss) | -1 | 13 | ' |
Sales | -1 | ' | ' |
Closing Balance | 24 | 35 | ' |
Commercial Mortgage-backed [Member] | Level 3 Assets And Liabilities Still Held [Member] | ' | ' | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss) | -2 | 13 | ' |
Asset-backed [Member] | Fair Value Inputs Level 3 [Member] | ' | ' | ' |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Opening Balance | 6 | 5 | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Gain (Loss) on Investments | 2 | ' | ' |
Subtotal | 2 | 0 | ' |
Other Comprehensive Income (Loss) | -2 | 1 | ' |
Sales | -6 | ' | ' |
Closing Balance | 0 | 6 | ' |
GMIB Reinsurance Contracts [Member] | Fair Value Inputs Level 3 [Member] | ' | ' | ' |
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation [Line Items] | ' | ' | ' |
Opening Balance | 7 | 9 | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Increase (decrease) in the fair value of the reinsurance contracts | -7 | -2 | ' |
Subtotal | -7 | -2 | ' |
Closing Balance | 0 | 7 | ' |
GMIB Reinsurance Contracts [Member] | Level 3 Assets And Liabilities Still Held [Member] | ' | ' | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Increase (decrease) in the fair value of the reinsurance contracts | ' | -2 | ' |
Other Fixed Maturities Available For Sale [Member] | Level 3 Assets And Liabilities Still Held [Member] | ' | ' | ' |
Total Gains Losses Realized Unrealized Included In [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss) | $0 | $1 | ' |
FAIR_VALUE_DISCLOSURES_DETAILS3
FAIR VALUE DISCLOSURES (DETAILS 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Inputs [Abstract] | ' | ' |
Fair Value Measurements Not Included In Quantitative Information About Level 3 Fair Value Measurements | $33 | $30 |
Fair Value Measurements Not Included In Quantitative Information Percentage Of Total Assets Classified As Level 3 | 100.00% | 39.50% |
Fair Value Measurements Not Included In Quantitative Information Percentage Of Total Assets Measured At Fair Value On Recurring Basis | 1.20% | 0.80% |
Corporate Debt Securities [Member] | Matrix Pricing Model Valuation Technique [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | 11 |
Fair Value Inputs [Abstract] | ' | ' |
Percentage Of Level 3 Asset Fair Value | ' | 31.40% |
Corporate Debt Securities [Member] | Matrix Pricing Model Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Spread Over Industry Yield Curve BPS | ' | 600 |
Corporate Debt Securities [Member] | Matrix Pricing Model Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Spread Over Industry Yield Curve BPS | ' | 650 |
Commercial Mortgage Backed Securities [Member] | Discounted Cash Flow Valuation Technique [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | 35 |
Fair Value Inputs [Abstract] | ' | ' |
Probability Of Default | ' | 55.00% |
Loss Severity | ' | 49.00% |
Commercial Mortgage Backed Securities [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Constant Default Rate | ' | 3.00% |
Discount Rate | ' | 3.72% |
Commercial Mortgage Backed Securities [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Constant Default Rate | ' | 25.00% |
Discount Rate | ' | 13.42% |
GMIB Reinsurance Contracts [Member] | Discounted Cash Flow Valuation Technique [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | $7 |
Fair Value Inputs [Abstract] | ' | ' |
Withdrawal Rates | ' | 3.50% |
Non Performance Risk | ' | 13.5 |
GMIB Reinsurance Contracts [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Lapse Rates | ' | 2.50% |
GMIB Utilization Rates | ' | 0.00% |
Expected Volatility Rate- Equity | ' | 24.00% |
GMIB Reinsurance Contracts [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs [Abstract] | ' | ' |
Lapse Rates | ' | 27.50% |
GMIB Utilization Rates | ' | 15.00% |
Expected Volatility Rate- Equity | ' | 36.00% |
FAIR_VALUE_DISCLOSURES_DETAILS4
FAIR VALUE DISCLOSURES (DETAILS 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Financial Instruments [Abstract] | ' | ' |
Mortgage loans on real estate | $28 | $45 |
Policyholders' liabilities: Investment contracts | 1,777 | 1,615 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Financial Instruments [Abstract] | ' | ' |
Mortgage loans on real estate | 28 | 45 |
Policyholders' liabilities: Investment contracts | 193 | 200 |
Portion at Fair Value, Fair Value Disclosure [Member] | ' | ' |
Financial Instruments [Abstract] | ' | ' |
Mortgage loans on real estate | 28 | 46 |
Policyholders' liabilities: Investment contracts | 196 | 233 |
Portion at Fair Value, Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member] | ' | ' |
Financial Instruments [Abstract] | ' | ' |
Mortgage loans on real estate | 28 | 46 |
Policyholders' liabilities: Investment contracts | $196 | $233 |
GMDB_GMIB_AND_NO_LAPSE_GUARANT2
GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' | ' |
Opening Balance | $10 | $9 | $8 |
Paid guarantee benefits | -3 | -2 | -2 |
Other changes in reserve | 0 | 3 | 3 |
Closing Balance | 7 | 10 | 9 |
Guaranteed Minimum Death Benefit [Member] | ' | ' | ' |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' | ' |
Opening Balance | 8 | 7 | 6 |
Paid guarantee benefits | -3 | -2 | -2 |
Other changes in reserve | 0 | 3 | 3 |
Closing Balance | 5 | 8 | 7 |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Ceded [Roll Forward] | ' | ' | ' |
Opening Balance | 5 | 4 | 3 |
Paid Guaranteed Benefits | -1 | ' | ' |
Other changes in reserve | 1 | 1 | 1 |
Closing Balance | 5 | 5 | 4 |
Guaranteed Minimum Income Benefit [Member] | ' | ' | ' |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward] | ' | ' | ' |
Opening Balance | 2 | 2 | 2 |
Paid guarantee benefits | 0 | 0 | 0 |
Other changes in reserve | 0 | 0 | 0 |
Closing Balance | 2 | 2 | 2 |
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Ceded [Roll Forward] | ' | ' | ' |
Closing Balance | $2 | ' | ' |
GMDB_GMIB_AND_NO_LAPSE_GUARANT3
GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES (DETAILS1) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Guaranteed Minimum Death Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | $341 |
Separate Accounts | 790 |
Net amount at risk, gross | 46 |
Net Amount At Risk By Product And Guarantee Net Of Amount Reinsured | 0 |
Average attained age of contractholders | '66 years 7 months 6 days |
Percentage of contractholders over age 70 | 27.20% |
Contractually Specified Interest Rates | '5.0% |
Guaranteed Minimum Income Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | 30 |
Separate Accounts | 61 |
Net amount at risk, gross | 2 |
Weighted average years remaining until annuitization | '1 year 6 months 0 days |
Contractually Specified Interest Rates | '5.0% |
Return Of Premium [Member] | Guaranteed Minimum Death Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | 119 |
Separate Accounts | 321 |
Net amount at risk, gross | 2 |
Net Amount At Risk By Product And Guarantee Net Of Amount Reinsured | 0 |
Average attained age of contractholders | '66 years 2 months 12 days |
Percentage of contractholders over age 70 | 26.80% |
Ratchet [Member] | Guaranteed Minimum Death Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | 192 |
Separate Accounts | 407 |
Net amount at risk, gross | 33 |
Net Amount At Risk By Product And Guarantee Net Of Amount Reinsured | 0 |
Average attained age of contractholders | '66 years 10 months 24 days |
Percentage of contractholders over age 70 | 27.50% |
Roll Up [Member] | Guaranteed Minimum Income Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | 30 |
Separate Accounts | 61 |
Net amount at risk, gross | 2 |
Weighted average years remaining until annuitization | '1 year 6 months 0 days |
Contractually Specified Interest Rates | '5.0% |
Combo [Member] | Guaranteed Minimum Death Benefit [Member] | ' |
Net Amount At Risk By Product And Guarantee [Line Items] | ' |
General Account | 30 |
Separate Accounts | 62 |
Net amount at risk, gross | 11 |
Net Amount At Risk By Product And Guarantee Net Of Amount Reinsured | $0 |
Average attained age of contractholders | '67 years 0 months 0 days |
Percentage of contractholders over age 70 | 26.70% |
Contractually Specified Interest Rates | '5.0% |
GMDB_GMIB_AND_NO_LAPSE_GUARANT4
GMDB, GMIB AND NO LAPSE GUARANTEE FEATURES (DETAILS2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
No lapse guaranteed benefit liability | $7 | $10 | $9 | $8 |
Guaranteed Minimum Death Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 790 | 759 | ' | ' |
Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 61 | 59 | ' | ' |
No Lapse Guarantee Liability [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
No lapse guaranteed benefit liability | 1 | 1 | ' | ' |
Equity [Member] | Guaranteed Minimum Death Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 696 | 643 | ' | ' |
Equity [Member] | Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 52 | 47 | ' | ' |
Fixed Income Investments [Member] | Guaranteed Minimum Death Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 57 | 73 | ' | ' |
Fixed Income Investments [Member] | Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 8 | 9 | ' | ' |
Balanced [Member] | Guaranteed Minimum Death Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 16 | 15 | ' | ' |
Other Invested Assets [Member] | Guaranteed Minimum Death Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | 21 | 28 | ' | ' |
Other Invested Assets [Member] | Guaranteed Minimum Income Benefit [Member] | ' | ' | ' | ' |
Schedule Of Fair Value Of Separate Accounts By Major Category Of Investment [Line Items] | ' | ' | ' | ' |
Separate Account Investments by Investment Category | $1 | $3 | ' | ' |
REINSURANCE_DETAILS
REINSURANCE (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
GMIB Reinsurance Asset at Fair Value | ' | $7 | ' |
Increase (decrease) in the fair value of the reinsurance contract asset | -7 | -2 | 7 |
Reinsurance Recoverables | 1,304 | 158 | ' |
Ceded Premiums | 48 | 26 | 28 |
Policyholders' benefits ceded | 125 | 84 | 39 |
Ceded Credit Risk Concentrated Credit Risk [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Recoverables | 51 | 53 | ' |
Variable Universal Term Life Insurance Single Life [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Retention Policy Amount Retained | 4 | ' | ' |
Variable Universal Term Life Insurance Second To Die Life [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Retention Policy Amount Retained | 6 | ' | ' |
AXA Equitable [Member] | Variable Universal Term Life Insurance Single Life [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Retention Policy Amount Retained | 20 | ' | ' |
AXA Equitable [Member] | Variable Universal Term Life Insurance Second To Die Life [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Retention Policy Amount Retained | 25 | ' | ' |
Protective Life [Member] | ' | ' | ' |
Reinsurance Premiums For Insurance Companies By Product Segment [Line Items] | ' | ' | ' |
Reinsurance Recoverables | 1,207 | ' | ' |
Ceded Premiums | 6 | ' | ' |
Policyholders' benefits ceded | $18 | ' | ' |
REINSURANCE_DETAILS1
REINSURANCE (DETAILS1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | ' | ' | ' |
Direct Premiums | $72 | $56 | $68 |
Assumed Premiums Earned | 1 | 2 | 2 |
Ceded Premiums | -48 | -26 | -28 |
Premiums | 25 | 32 | 42 |
Ceded Insurance Commissions And Fees | 31 | 29 | 31 |
Policyholders' benefits ceded | $125 | $84 | $39 |
RELATED_PARTY_TRANSACTIONS_DET
RELATED PARTY TRANSACTIONS (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Payment Of Return Of Capital | $200 | ' | ' |
Proceeds from Sale of Agricultural Mortgage Loans to AXA Equitable | ' | 42 | ' |
Net gain (loss) realized on sale of agricultural mortgage loans to AXA Equitable | ' | 3 | ' |
Expenses from Related Party Transactions | 2 | 2 | 2 |
Assumed Premiums Earned | 1 | 2 | 2 |
AXA Equitable Financial Services [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Payment Of Return Of Capital | 200 | ' | ' |
AXA Foundation [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Donations To Affiliates | 20 | ' | ' |
AXA Equitable [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Expenses from Related Party Transactions | 89 | 57 | 54 |
Accounts payable, Related Party Transactions | 26 | 23 | ' |
AXA Distribution [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Expenses from Related Party Transactions | 47 | 32 | 24 |
Revenue from Related Party Transactions | $29 | $25 | $3 |
SHAREBASED_COMPENSATION_DETAIL
SHARE-BASED COMPENSATION (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share Based Compensation Expense | $3 | $3 | $1 |
INCOME_TAXES_DETAILS
INCOME TAXES (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense Benefit Abstract | ' | ' | ' |
Current (expense) benefit | ($90) | ($4) | $39 |
Deferred (expense) benefit | 74 | -2 | -38 |
Income Tax (Expense) Benefit | -16 | -6 | 1 |
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate | 35.00% | ' | ' |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | ' | ' | ' |
Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | -15 | -15 | -26 |
Dividends received deduction | 1 | 2 | 2 |
Tax settlements | 0 | -9 | -7 |
Valuation allowance | 0 | 0 | -19 |
Prior year adjustment | -2 | ' | ' |
Other adjustments | 0 | 2 | 1 |
Income Tax (Expense) Benefit | ($16) | ($6) | $1 |
INCOME_TAXES_DETAILS_1
INCOME TAXES (DETAILS 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Deferred Tax Assets [Abstract] | ' | ' | ' |
Deferred Tax Assets, Reserves and Reinsurance | $77 | ' | ' |
Deferred Tax Assets, Other | 0 | 8 | ' |
Deferred Tax Assets, Gross | 77 | 8 | ' |
Components Of Deferred Tax Liabilities [Abstract] | ' | ' | ' |
Deferred Tax Liabilities, Reserves and Reinsurance | 0 | 21 | ' |
Deferred Tax Liabilities, Deferred Expense, Deferred Policy Acquisition Cost | 56 | 46 | ' |
Deferred Tax Liabilities Value of Business Acquired | 6 | 34 | ' |
Deferred Tax Liabilities Investments | 13 | 25 | ' |
Deferred Tax Liabilities, Goodwill and Intangible Assets | 9 | 9 | ' |
Deferred Tax Liabilities, Other | 7 | 0 | ' |
Deferred Tax Liabilities, Net, Total | 91 | 135 | ' |
Income Tax Uncertainties [Abstract] | ' | ' | ' |
Accumulated Undistributed Earnings Non US Affiliates Reinvested | 6 | ' | ' |
Foreign Earnings Repatriated Additional Taxes Remitted | 2 | ' | ' |
Unrecognized Tax Benefits That Would Impact Effective Tax Rate | 5 | 4 | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued | 0 | 1 | ' |
Unrecognized Tax Benefits Income Tax Penalties And Interest Expense | 0 | ' | ' |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized Tax Benefits, Beginning Balance | 4 | 17 | 16 |
Unrecognized Tax Benefits, Increases Resulting from Prior Period Tax Positions | 1 | 1 | 1 |
Unrecognized Tax Benefits, Decreases Resulting from Prior Period Tax Positions | 0 | 2 | 0 |
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities | 0 | 12 | 0 |
Unrecognized Tax Benefits, Ending Balance | $5 | $4 | $17 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income Loss [Abstract] | ' | ' | ' |
Unrealized Gain (Loss) on Investments | $8 | $82 | $55 |
Accumulated other comprehensive income (loss) | 8 | 82 | 55 |
Unrealized Gain Loss On Investments [Abstract] | ' | ' | ' |
Net unrealized gains (losses) arising during the year | -58 | 28 | 22 |
(Gains) losses reclassified into net earnings (loss) during the year | -44 | 3 | 1 |
Net unrealized gains (losses) on investments | -102 | 31 | 23 |
Adjustments for DAC and VOBA | 28 | -4 | -13 |
Total other comprehensive income (loss), net of income taxes | -74 | 27 | 10 |
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ' | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | -40 | 15 | 6 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Available for sale securities, Tax | $24 | ($2) | ($1) |
STATUTORY_FINANCIAL_INFORMATIO1
STATUTORY FINANCIAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statutory Financial Information [Abstract] | ' | ' | ' |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $36 | ' | ' |
Statutory net income (loss) | 34 | 33 | 35 |
Statutory surplus, capital stock and Asset Valuation Reserve | 367 | 295 | ' |
Securities on deposit with such government or state agencies | 6 | ' | ' |
Return of surplus | $200 | ' | ' |