Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'HARTFORD LIFE INSURANCE CO | ' | ' |
Entity Central Index Key | '0000045947 | ' | ' |
Document Type | '8-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | ' | 'Yes | ' |
Entity Voluntary Filers | ' | 'No | ' |
Entity Current Reporting Status | ' | 'Yes | ' |
Entity Public Float | ' | ' | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | $0 | ' | $0 |
Revenues | ' | ' | ' |
Fee income and other | 1,462 | 2,956 | 3,183 |
Earned premiums | 184 | 93 | 244 |
Net investment income (loss): | ' | ' | ' |
Securities available-for-sale and other | 1,681 | 2,535 | 2,572 |
Equity securities, trading | 2 | 1 | 0 |
Total net investment income | 1,683 | 2,536 | 2,572 |
Net realized capital gains (losses): | ' | ' | ' |
Total other-than-temporary impairment (“OTTIâ€) losses | -54 | -293 | -196 |
OTTI losses recognized in other comprehensive income | -9 | -38 | 71 |
Net OTTI losses recognized in earnings | -45 | -255 | -125 |
Gain (Loss) on Disposition of Business | 1,561 | 0 | 0 |
Net realized capital gains (losses), excluding net OTTI losses recognized in earnings | -1,190 | -1,226 | 48 |
Total net realized capital losses | 326 | -1,481 | -77 |
Total revenues | 3,655 | 4,104 | 5,922 |
Benefits, losses and expenses | ' | ' | ' |
Benefits, loss and loss adjustment expenses | 1,758 | 2,900 | 3,108 |
Amortization of deferred policy acquisition costs and present value of future profits | 228 | 324 | 427 |
Insurance operating costs and other expenses | -401 | 268 | 2,507 |
Reinsurance loss on disposition (including goodwill impairment of $61) | -1,491 | -61 | 0 |
Dividends to policyholders | 18 | 20 | 17 |
Total expenses | 3,094 | 3,573 | 6,059 |
Income (loss) from continuing operations before income taxes | 561 | 531 | -137 |
Income tax expense (benefit) | 49 | 36 | -323 |
Income from continuing operations, net of tax | 512 | 495 | 186 |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | -41 | 61 | ' |
Income (loss) from discontinued operations, net of tax | ' | ' | 58 |
Net income | 471 | 556 | 244 |
Net Income (Loss) Attributable to Noncontrolling Interest | 6 | 2 | 0 |
Net income attributable to Hartford Life Insurance Company | $465 | $554 | $244 |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill impairment loss | ' | ' | $0 |
Individual Life [Member] | ' | ' | ' |
Goodwill impairment loss | $61 | $61 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | $6 | $2 | $0 |
Comprehensive Income | ' | ' | ' |
Net income | 471 | 556 | 244 |
Other comprehensive income (loss): | ' | ' | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ' | 1,120 | 1,174 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | ' | -110 | 103 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | 24 | -2 |
Total other comprehensive income | -1,413 | 1,034 | 1,275 |
Total comprehensive income | -942 | 1,590 | 1,519 |
Less: Comprehensive income attributable to noncontrolling interest | 6 | 2 | 0 |
Total comprehensive income attributable to Hartford Life Insurance Company | ($948) | $1,588 | $1,519 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Investments: | ' | ' | |
Fixed maturities, available-for-sale, at fair value (amortized cost of [$0] and $45,753) (includes variable interest entity assets, at fair value, of [$0] and $89) | $28,163 | $49,404 | |
Fixed maturities, at fair value using the fair value option (includes variable interest entity assets, at fair value, of [$0] and $132) | 791 | 1,010 | |
Equity securities, trading, at fair value (cost of [$0] and $1,614) | 12 | 1,847 | |
Equity securities, available for sale, at fair value (cost of [$0] and $408) | 372 | 400 | |
Mortgage loans (net of allowances for loan losses of [$0] and $14) | 3,470 | 4,935 | |
Policy loans, at outstanding balance | 1,416 | 1,951 | |
Limited partnership and other alternative investments (includes variable interest entity assets of [$0] and $6) | 1,329 | 1,372 | |
Other investments | 270 | 582 | |
Short-term investments | 1,952 | 2,354 | |
Total investments | 37,775 | 63,855 | |
Cash | 446 | 1,342 | |
Premiums receivable and agents’ balances | 33 | 58 | |
Reinsurance recoverables | 19,794 | 2,893 | |
Deferred policy acquisition costs and present value of future profits | 689 | 3,072 | |
Deferred income taxes, net | 2,110 | 1,557 | |
Goodwill | 0 | 250 | |
Other assets | 994 | 1,306 | |
Separate account assets | 140,874 | 141,558 | |
Total assets | 202,715 | 215,891 | |
Liabilities | ' | ' | |
Reserve for future policy benefits and unpaid losses and loss adjustment expenses | 12,874 | 11,916 | |
Other policyholder funds and benefits payable | 36,856 | 40,501 | |
Other policyholder funds and benefits payable – international unit-linked bonds and pension products | 0 | 1,837 | |
Consumer notes | 84 | 161 | |
Other liabilities (includes variable interest entity liabilities of [$0] and $111 ) | 3,788 | 9,535 | |
Separate account liabilities | 140,874 | [1],[2] | 141,558 |
Total liabilities | 194,476 | 205,508 | |
Commitments and Contingencies (Note 10) | ' | ' | |
Stockholder’s Equity | ' | ' | |
Common stock — 1,000 shares authorized, issued and outstanding, par value [$5,690] | 6 | 6 | |
Additional paid-in capital | 6,959 | 8,155 | |
Accumulated other comprehensive income, net of tax | 574 | 1,987 | |
Retained earnings (deficit) | 700 | 235 | |
Total stockholder’s equity | 8,239 | 10,383 | |
Total liabilities and stockholder’s equity | $202,715 | $215,891 | |
[1] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). | ||
[2] | AV includes the contract holder’s investment in the separate account and the general account. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ' | ' | ||
Amortized cost of fixed maturities, available-for-sale, at fair value | $27,188 | $45,753 | ||
Fair value of variable interest entity assets for fixed maturities, available-for-sale | 12 | 89 | ||
Fair value of variable interest entity assets for fixed maturities at fair value using fair value option | 131 | 132 | ||
Cost of equity securities, trading at fair value | 10 | 1,614 | ||
Cost of equity securities, available-for-sale, at fair value | 362 | 408 | ||
Allowance for loan losses | 12 | 14 | ||
Variable entity assets for limited partnerships and other alternative investments | 4 | 6 | ||
Fair value of variable entity assets for short-term investments | 3 | 0 | ||
Variable interest entity liabilities for other liabilities | $35 | [1] | $111 | [1] |
Common stock: shares authorized | 1,000 | 1,000 | ||
Common stock: shares issued | 1,000 | 1,000 | ||
Common stock: shares outstanding | 1,000 | 1,000 | ||
Common stock: par value | $5,690 | $5,690 | ||
[1] | Included in other liabilities in the Company’s Consolidated Balance Sheets. |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Deficit) | Non- Controlling Interest |
In Millions, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Capital contributions from parent | $6 | ' | $6 | ' | ' | $0 |
Dividends declared | -1 | ' | ' | ' | -1 | ' |
Net Income (Loss) Attributable to Parent | 244 | ' | ' | ' | ' | ' |
Net income (loss) | 244 | ' | ' | ' | 244 | 0 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | ' | ' | ' | ' | ' |
Total other comprehensive income | 1,275 | ' | ' | 1,275 | ' | ' |
Ending balance at Dec. 31, 2011 | 8,911 | 6 | 8,271 | 953 | -319 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Capital contributions from parent | 116 | ' | 116 | ' | ' | ' |
Net Income (Loss) Attributable to Parent | 554 | ' | ' | ' | 554 | ' |
Change in noncontrolling interest ownership | -2 | ' | ' | ' | ' | -2 |
Net income (loss) | 556 | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 2 | ' | ' | ' | ' | 2 |
Total other comprehensive income | 1,034 | ' | ' | 1,034 | ' | ' |
Ending balance at Dec. 31, 2012 | 10,383 | 6 | 8,155 | 1,987 | 235 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Capital contributions from parent | 1,196 | ' | 1,196 | ' | ' | ' |
Dividends declared | 0 | ' | ' | ' | 0 | ' |
Net Income (Loss) Attributable to Parent | 465 | ' | ' | ' | 465 | ' |
Change in noncontrolling interest ownership | -6 | ' | ' | ' | ' | -6 |
Net income (loss) | 471 | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | 6 | ' | ' | ' | ' | 6 |
Total other comprehensive income | -1,413 | ' | ' | -1,413 | ' | ' |
Ending balance at Dec. 31, 2013 | $8,239 | $6 | $6,959 | $574 | $700 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net income (loss) | $471 | $556 | $244 |
Adjustments to reconcile net income(loss) to net cash provided by operating activities | ' | ' | ' |
Amortization of deferred policy acquisition costs and present value of future profits | 228 | 359 | 474 |
Additions to deferred policy acquisition costs and present value of future profits | -16 | -329 | -381 |
Change in reserve for future policy benefits and unpaid losses and loss adjustment expenses and unearned premiums | 230 | -44 | 252 |
Change in reinsurance recoverables | -795 | -47 | 57 |
Change in receivables and other assets | -80 | 158 | 9 |
Change in payables and accruals | -1,532 | -1,035 | 2,402 |
Change in accrued and deferred income taxes | 589 | 392 | -125 |
Net realized capital losses | -678 | 1,413 | 1 |
Net receipts (disbursements) from investment contracts related to policyholder funds – international unit-linked bonds and pension products | -1,833 | -92 | -323 |
Net (increase) decrease in equity securities, trading | 1,835 | 120 | 312 |
Goodwill impairment | 0 | 149 | 0 |
Disposal Group, Not Discontinued Operation, Reinsurance Loss | 1,491 | 61 | 0 |
Depreciation and amortization | 53 | 164 | 194 |
Other, net | -328 | 202 | -108 |
Net Cash Provided by (Used in) Operating Activities | -365 | 2,027 | 3,008 |
Proceeds from the sale/maturity/prepayment of: | ' | ' | ' |
Fixed maturities and short-term investments, available-for-sale | 19,206 | 23,759 | 19,801 |
Fixed maturities, fair value option | 322 | 283 | 37 |
Equity securities, available-for-sale | 81 | 133 | 147 |
Mortgage loans | 355 | 306 | 332 |
Partnerships | 127 | 110 | 128 |
Payments for the purchase of: | ' | ' | ' |
Fixed maturities and short-term investments, available-for-sale | -14,532 | -23,949 | -20,517 |
Fixed maturities, fair value option | -134 | -182 | -661 |
Equity securities, available-for-sale | -79 | -97 | -230 |
Mortgage loans | -177 | -1,056 | -1,246 |
Partnerships | -99 | -417 | -436 |
Proceeds from business sold | 745 | 58 | ' |
Change in derivatives, net | -1,900 | -2,275 | 938 |
Change in policy loans, net | -7 | 1 | 176 |
Payments for (Proceeds from) Short-term Investments | 363 | 1,404 | -598 |
Change in all other, net | -20 | ' | 1 |
Net cash provided by (used for) investing activities | 4,251 | -1,922 | -2,128 |
Financing Activities | ' | ' | ' |
Deposits and other additions to investment and universal life-type contracts | 5,943 | 10,004 | 12,124 |
Withdrawals and other deductions from investment and universal life-type contracts | -24,473 | -24,608 | -22,720 |
Net transfers from (to) separate accounts related to investment and universal life-type contracts | 16,978 | 13,196 | 10,439 |
Net increase in securities loaned or sold under agreements to repurchase | -1,615 | 1,615 | ' |
Payments for Advance to Affiliate | -347 | ' | ' |
Capital contributions (to) from parent | -1,200 | ' | ' |
Net repayments at maturity or settlement of consumer notes | -77 | -153 | -68 |
Net cash used for financing activities | -4,791 | 54 | -225 |
Foreign exchange rate effect on cash | 9 | 0 | -3 |
Net increase (decrease) in cash | -896 | 159 | 652 |
Cash — beginning of year | 1,342 | 1,183 | 531 |
Cash — end of year | 446 | 1,342 | 1,183 |
Supplemental Disclosure of Cash Flow Information: | ' | ' | ' |
Net cash paid (received) during the year for income taxes | -181 | -395 | -105 |
Noncash return of capital | -4 | -126 | 0 |
Supplemental Disclosure of Non-Cash Investing Activity | ' | ' | ' |
Conversion of fixed maturities, available-for-sale to equity securities, available-for-sale | $0 | $43 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill impairment loss | ' | ' | $0 |
Individual Life [Member] | ' | ' | ' |
Goodwill impairment loss | $61 | $61 | $0 |
Basis_of_Presentation_and_Acco
Basis of Presentation and Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation and Significant Accounting Policies | ' |
Basis of Presentation | |
Hartford Life Insurance Company (together with its subsidiaries, “HLIC”, “Company”, “we” or “our”) is a provider of insurance and investment products in the United States (“U.S.”) and is a wholly-owned subsidiary of Hartford Life and Accident Insurance Company (“HLA”). Hartford Life, Inc., a Delaware corporation ("HLI") is the parent of HLA. The Hartford Financial Services Group, Inc. (“The Hartford”) is the ultimate parent of the Company. | |
On January 1, 2013, HLI completed the sale of its Retirement Plans business to Massachusetts Mutual Life Insurance Company ("MassMutual") and on January 2, 2013 HLI completed the sale of its Individual Life insurance business to The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. ("Prudential"). On December 12, 2013, the Company completed the sale of the U.K variable annuity business of Hartford Life International Limited ("HLIL"), an indirect wholly-owned subsidiary. As a result of this transaction, the operations of the Company's U.K. variable annuity business meet the criteria for reporting as discontinued operations as further discussed in Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. For further discussion of these and other such transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |
On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under Hartford Funds Management Group, Inc., also a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. The Company effected the reorganization by distributing certain Mutual Funds subsidiaries to HLA in the form of a return of capital effective December 31, 2012. The reorganization was accounted for by the Company as a transfer of net assets at book value between entities under common control. | |
In connection with the reorganization of the Mutual Funds business, investment advisory agreements between the Company's Mutual Funds subsidiaries and HL Investment Advisors, LLC, an indirect subsidiary of the Company, were terminated effective December 31, 2012. Following the reorganization, Hartford Funds Management Company, LLC, an indirect subsidiary of HLI, will replace HL Investment Advisors, LLC as the investment advisor for The Hartford's mutual funds. The Mutual Funds reporting segment contributed less than 10% of the net income attributable to HLIC for the year ended December 31, 2012. The carrying value of the subsidiaries distributed was $203 and $116 as of December 31, 2012 and 2011, respectively. For further discussion of the reorganization of the Mutual Funds business, see Note 7 - Goodwill , Note 13 - Transactions with Affiliates, and Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. | |
The Consolidated Financial Statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. | |
Consolidation | |
The Consolidated Financial Statements include the accounts of HLIC, companies in which the Company directly or indirectly has a controlling financial interest and those variable interest entities (“VIEs”) in which the Company is required to consolidate. Entities in which HLIC has significant influence over the operating and financing decisions but are not required to consolidate are reported using the equity method. For further discussions on VIEs, see Note 4 of Notes to Consolidated Financial Statements. Material intercompany transactions and balances between HLIC and its subsidiaries have been eliminated. | |
Discontinued Operations | |
The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in discontinued operations if the operations and cash flows of the component have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction and the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. | |
The Company is presenting the operations of certain businesses that meet the criteria for reporting as discontinued operations. Amounts for prior periods have been retrospectively reclassified. For information on the specific businesses and related impacts, see Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. | |
Use of Estimates | |
The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions 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 period. Actual results could differ from those estimates. | |
The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on investments; living benefits required to be fair valued; goodwill impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters (see Note 12). The related accounting policies are summarized in the Significant Accounting Policies section of this footnote unless indicated otherwise herein. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Consolidated Financial Statements. | |
Reclassifications | |
Certain reclassifications have been made to prior year financial information to conform to the current year presentation. | |
Significant Accounting Policies | |
The Company’s significant accounting policies are as follows: | |
Segment Information | |
The Company currently conducts business in a single reporting segment comprised of business from the Company's U.S. annuity, international annuity, and institutional and private-placement life insurance businesses following the sale of the Retirement Plans and Individual Life businesses in January 2013. In addition, the Company no longer has a Mutual Funds reporting segment following the reorganization of its Mutual Funds business effective December 31, 2012. For further discussion of the Retirement Plans and Individual Life transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. For further discussion of the reorganization of the Mutual Funds business, see the Basis of Presentation section of this footnote. The Company's determination that it operates in a single reporting segment is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level. | |
Revenue Recognition | |
For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders’ account balances and are recognized in the period in which services are provided. For the Company’s traditional life and group disability products premiums are recognized as revenue when due from policyholders. | |
Income Taxes | |
The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | |
The Company is included in The Hartford’s consolidated Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, is consistent with the “parent down” approach. Under this approach, the Company’s deferred tax assets and tax attributes are considered realized by it so long as the group is able to recognize (or currently use) the related deferred tax asset or attribute. Thus the need for a valuation allowance is determined at the consolidated return level rather than at the level of the individual entities comprising the consolidated group. | |
Dividends to Policyholders | |
Policyholder dividends are paid to certain life insurance policyholders. Policies that receive dividends are referred to as participating policies. Such dividends are accrued using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. | |
Participating policies were 2%, 5% and 2% of the total life insurance policies as of December 31, 2013, 2012, and 2011, respectively. Dividends to policyholders were $18, $20 and $17 for the years ended December 31, 2013, 2012, and 2011, respectively. There were no additional amounts of income allocated to participating policyholders. If limitations exist on the amount of net income from participating life insurance contracts that may be distributed to stockholder’s, the policyholder’s share of net income on those contracts that cannot be distributed is excluded from stockholder’s equity by a charge to operations and a credit to a liability. | |
Fair Value | |
The following financial instruments are carried at fair value in the Company’s Consolidated Financial Statements: fixed maturity and equity securities, available-for-sale (“AFS”); fixed maturities at fair value using fair value option (“FVO”); equity securities, trading; short-term investments; freestanding and embedded derivatives; certain limited partnerships and other alternative investments; separate account assets and certain other liabilities. For further discussion of fair value, see Note 3 - Fair Value Measurements of Notes to Consolidated Financial Statements. | |
Investments | |
Overview | |
The Company’s investments in fixed maturities include bonds, redeemable preferred stock and commercial paper. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are classified as AFS and are carried at fair value. The after-tax difference from cost or amortized cost is reflected in stockholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”), after adjustments for the effect of deducting the life and pension policyholders’ share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments. Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value with changes in value recorded in realized capital gains and losses on the Company's Consolidated Statements of Operations. The equity investments associated with the variable annuity products are recorded at fair value and are classified as trading with changes in fair value recorded in net investment income. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value with the change in carrying value primarily accounted for under the equity method and accordingly the Company’s share of earnings are included in net investment income; however, the Company also uses investment fund accounting applied to a wholly-owned fund of funds. Recognition of income related to limited partnerships and other alternative investment is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds are on a one-month delay. Accordingly, income for the years ended December 31, 2013, 2012 and 2011 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships and other alternative investments’ general partners. Other investments primarily consist of derivatives instruments which are carried at fair value. | |
Recognition and Presentation of Other-Than-Temporary Impairments | |
The Company deems bonds and certain equity securities with debt-like characteristics (collectively “debt securities”) to be other-than-temporarily impaired (“impaired”) if a security meets the following conditions: a) the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the security’s amortized cost basis and the fair value is separated into the portion representing a credit other-than-temporary impairment (“impairment”), which is recorded in net realized capital losses, and the remaining impairment, which is recorded in OCI. Generally, the Company determines a security’s credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the security’s effective yield prior to impairment. The remaining non-credit impairment, which is recorded in OCI, is the difference between the security’s fair value and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment, which typically represents current market liquidity and risk premiums. The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the security’s new cost basis. The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. | |
The Company’s evaluation of whether a credit impairment exists for debt securities includes but is not limited to, the following factors: (a) changes in the financial condition of the security’s underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) changes in the financial condition, credit rating and near-term prospects of the issuer, (d) the extent to which the fair value has been less than the amortized cost of the security and (e) the payment structure of the security. The Company’s best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the security. The Company’s best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, and loan-to-value (“LTV”) ratios. In addition, for structured securities, the Company considers factors including, but not limited to, average cumulative collateral loss rates that vary by vintage year, commercial and residential property value declines that vary by property type and location and commercial real estate delinquency levels. | |
These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral such as changes in the projections of the underlying property value estimates. | |
For equity securities where the decline in the fair value is deemed to be other-than-temporary, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the security’s new cost basis. The Company asserts its intent and ability to retain those equity securities deemed to be temporarily impaired until the price recovers. Once identified, these securities are systematically restricted from trading unless approved by investment and accounting professionals. The investment and accounting professionals will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been reasonably foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer’s financial condition, security price declines, a change in regulatory requirements or a major business combination or major disposition. | |
The primary factors considered in evaluating whether an impairment exists for an equity security include, but are not limited to: (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. | |
Mortgage Loan Valuation Allowances | |
The Company’s security monitoring process reviews mortgage loans on a quarterly basis to identify potential credit losses. Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. Criteria used to determine if an impairment exists include, but are not limited to: current and projected macroeconomic factors, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historic, current and projected delinquency rates and property values. These assumptions require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the borrower and/or underlying collateral such as changes in the projections of the underlying property value estimates. | |
For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price or, most frequently, (c) the fair value of the collateral. A valuation allowance has been established for either individual loans or as a projected loss contingency for loans with an LTV ratio of 90% or greater and consideration of other credit quality factors, including DSCR. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the loans continue to perform under the original or restructured terms. Interest income ceases to accrue for loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. Loans may resume accrual status when it is determined that sufficient collateral exists to satisfy the full amount of the loan and interest payments, as well as when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. | |
Net Realized Capital Gains and Losses | |
Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis, as well as changes in value associated with fixed maturities for which the fair value option was elected. Net realized capital gains and losses also result from fair value changes in derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, ineffectiveness on derivatives that qualify for hedge accounting treatment, and the change in value of derivatives in certain fair-value hedge relationships and their associated hedged asset. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s policies previously discussed. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. | |
Net Investment Income | |
Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future repayments using the retrospective method; however, if these investments are impaired, any yield adjustments are made using the prospective method. Prepayment fees on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, available-for-sale, dividends will be recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings; however, the Company also uses investment fund accounting applied to a wholly-owned fund of funds. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2013, 2012 and 2011. | |
Net investment income on equity securities, trading, includes dividend income and the changes in market value of the securities associated with the variable annuity products. The returns on these policyholder-directed investments inure to the benefit of the variable annuity policyholders but the underlying funds do not meet the criteria for separate account reporting. Accordingly, these assets are reflected in the Company’s general account and the returns credited to the policyholders are reflected in interest credited, a component of benefits, losses and loss adjustment expenses. | |
Derivative Instruments | |
Overview | |
The Company utilizes a variety of over-the-counter ("OTC") derivatives, including transactions cleared through a central clearing house ("OTC-cleared"), and exchange-traded derivative instruments as part of its overall risk management strategy. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread and issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. | |
Interest rate, volatility, dividend, credit default and index swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. | |
Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment is made by the purchaser of the contract at its inception and no principal payments are exchanged. | |
Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. | |
Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. | |
Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. | |
Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. | |
The Company’s derivative transactions are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. | |
Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities | |
Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. | |
During 2013, the Company began clearing interest rate swap and certain credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid collateral, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash collateral as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Investments and Derivative Instruments. In addition, OTC-cleared transactions include price alignment interest either received or paid on the variation margin, which is reflected in net investment income. The Company has also elected to offset the fair value amounts, income accruals and related cash collateral receivables and payables of OTC-cleared derivative instruments based on clearing house agreements. | |
On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. | |
Fair Value Hedges | |
Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, including foreign-currency fair value hedges, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings with any differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense (“periodic derivative net coupon settlements”) are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Cash Flow Hedges | |
Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the consolidated statements of operations in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Net Investment in a Foreign Operation Hedges | |
Changes in fair value of a derivative used as a hedge of a net investment in a foreign operation, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within AOCI. Cumulative changes in fair value recorded in AOCI are reclassified into earnings upon the sale or complete, or substantially complete, liquidation of the foreign entity. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Other Investment and/or Risk Management Activities | |
The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. | |
Hedge Documentation and Effectiveness Testing | |
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the “Change in Variable Cash Flows Method”, the “Change in Fair Value Method”, the “Hypothetical Derivative Method”, or the “Dollar Offset Method”. | |
Discontinuance of Hedge Accounting | |
The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. | |
When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. Changes in the fair value of the hedged item attributable to the hedged risk is no longer adjusted through current period earnings and the existing basis adjustment is amortized to earnings over the remaining life of the hedged item through the applicable earnings component associated with the hedged item. | |
When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. | |
In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item. | |
Embedded Derivatives | |
The Company purchases and issues financial instruments and products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. | |
Credit Risk | |
Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association ("ISDA") agreements which are structured by legal entity and by counterparty, and permit right of offset. These agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives exceed the contractual thresholds. For the Company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. The Company also minimizes the credit risk of derivative instruments by entering into transactions with high quality counterparties rated A or better, which are monitored and evaluated by the Company’s risk management team and reviewed by senior management. OTC-cleared derivatives are governed by clearing house rules. Transactions cleared through a central clearing house reduce risk due to their ability to require daily variation margin, monitor the Company's ability to request additional collateral in the event of a counterparty downgrade, and act as an independent valuation source. In addition, the Company monitors counterparty credit exposure on a monthly basis to ensure compliance with Company policies and statutory limitations. | |
Cash | |
Cash represents cash on hand and demand deposits with banks or other financial institutions. | |
Reinsurance | |
The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). If the ceded transactions do not provide risk transfer, the Company accounts for these transactions as financing transactions. | |
Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting, investment, and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. | |
Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance agreements. Included in reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. | |
The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements, and variations thereof. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. | |
The Company evaluates the financial condition of its reinsurers and concentrations of credit risk. Reinsurance is placed with reinsurers that meet strict financial criteria established by the Company. The Company entered into two reinsurance transactions upon completion of the sales of its Retirement Plans and Individual Life businesses in January 2013. For further discussion of these transactions, see Note 2 - Business Dispositions and Note 5 - Reinsurance of Notes to Consolidated Financial Statements. | |
Deferred Policy Acquisition Costs and Present Value of Future Profits | |
Deferred policy acquisition costs represent costs that are directly related to the successful acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts. | |
For life insurance products, the DAC asset, which includes the present value of future profits, related to most universal life-type contracts (primarily variable annuities) and is amortized over the estimated life of the contracts acquired in proportion to the present value of estimated gross profits ("EGPs"). EGPs are also used to amortize other assets and liabilities in the Company’s Consolidated Balance Sheets such as sales inducement assets and unearned revenue reserves. Components of EGPs are used to determine reserves for universal life type contracts (including variable annuities) with death or other insurance benefits such as guaranteed minimum death, guaranteed minimum income and universal life secondary guarantee benefits. These benefits are accounted for and collectively referred to as death and other insurance benefit reserves and are held in addition to the account value liability representing policyholder funds. | |
For most contracts, the Company estimates gross profits over 20 years as EGPs emerging subsequent to that timeframe are immaterial. Products sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, based on future account value projections for variable annuity and variable universal life products. The projection of future account values requires the use of certain assumptions including: separate account returns; separate account fund mix; fees assessed against the contract holder’s account balance; surrender and lapse rates; interest margin; mortality; and the extent and duration of hedging activities and hedging costs. | |
The Company determines EGPs from a single deterministic reversion to mean ("RTM") separate account return projection which is an estimation technique commonly used by insurance entities to project future separate account returns. Through this estimation technique, the Company’s DAC model is adjusted to reflect actual account values at the end of each quarter. Through a consideration of recent market returns, the Company will unlock, or adjust, projected returns over a future period so that the account value returns to the long-term expected rate of return, providing that those projected returns do not exceed certain caps or floors. This Unlock for future separate account returns is determined each quarter. | |
In the third quarter of each year, the Company completes a comprehensive non-market related policyholder behavior assumption study and incorporates the results of those studies into its projection of future gross profits. Additionally, throughout the year, the Company evaluates various aspects of policyholder behavior and periodically revises its policyholder assumptions as credible emerging data indicates that changes are warranted. The Company will continue to evaluate its assumptions related to policyholder behavior as initiatives to reduce the size of the variable annuity business are implemented by management. Upon completion of an assumption study or evaluation of credible new information, the Company will revise its assumptions to reflect its current best estimate. These assumption revisions will change the projected account values and the related EGPs in the DAC, SIA and URR amortization models, as well as, the death and other insurance benefit reserving models. | |
All assumption changes that affect the estimate of future EGPs including the update of current account values, the use of the RTM estimation technique, and policyholder behavior assumptions are considered an Unlock in the period of revision. An Unlock adjusts the DAC, SIA, URR and death and other insurance benefit reserve balances in the Consolidated Balance Sheets with an offsetting benefit or charge in the Consolidated Statements of Operations in the period of the revision. An Unlock revises EGPs to reflect the Company's current best estimate assumptions. The Company also tests the aggregate recoverability of DAC by comparing the existing DAC balance to the present value of future EGPs. An Unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable compared to previous estimates. An Unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. | |
Goodwill | |
Goodwill represents the excess of costs over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. During the fourth quarter of 2011, the Company changed the date of its annual impairment test for all reporting units to October 31st from January 1st. As a result, all reporting units performed an impairment test on October 31, 2011 in addition to the annual impairment test performed on January 1, 2011. The change was made to be consistent across all of the parent company’s reporting units and to more closely align the impairment testing date with the long-range planning and forecasting process. The Company determined that this change in accounting principle is preferable under the circumstances and does not result in any delay, acceleration or avoidance of impairment. As it was impracticable to objectively determine projected cash flows and related valuation estimates as of each October 31 for periods prior to October 31, 2011 without applying information that has been learned since those periods, the Company prospectively applied the change in the annual goodwill impairment testing date from October 31, 2011. | |
The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. | |
Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital, future business growth, earnings projections, assets under management for certain reporting units, and the weighted average cost of capital used for purposes of discounting. Decreases in the amount of economic capital allocated to a reporting unit, decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease. | |
Separate Accounts, Death Benefits and Other Insurance Benefit Features | |
The Company records the variable account value portion of variable annuity and variable life insurance products and institutional and governmental investment contracts within separate accounts. Separate account assets are reported at fair value and separate account liabilities are reported at amounts consistent with separate account assets. Investment income and gains and losses from those separate account assets accrue directly to the policyholder, who assumes the related investment risk, and are offset by the related liability changes reported in the same line item in the Consolidated Statements of Operations. The Company earns fees for investment management, certain administrative expenses, and mortality and expense risks assumed which are reported in fee income. | |
Certain contracts classified as universal life-type include death and other insurance benefit features including GMDB offered with variable annuity contracts, or secondary guarantee benefits offered with universal life (“UL”) insurance contracts. GMDBs have been written in various forms as described in this note. UL secondary guarantee benefits ensure that the policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. These death and other insurance benefit features require an additional liability be held above the account value liability representing the policyholders’ funds. This liability is reported in reserve for future policy benefits in the Company’s Consolidated Balance Sheets. Changes in the death and other insurance benefit reserves are recorded in benefits, losses and loss adjustment expenses in the Company’s Consolidated Statements of Operations. | |
Consistent with the Company’s policy on DAC Unlock, the Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefits, losses and loss adjustment expense. For further information on the DAC Unlock, see Note 6 - Deferred Policy Acquisition Costs and Present Value of Future Benefits. | |
The Company reinsures the GMDBs associated with its in-force block of business. The Company also assumes, through reinsurance, minimum death, income, withdrawal and accumulation benefits offered by an affiliate. The death and other insurance benefit liability is determined by estimating the expected present value of the benefits in excess of the policyholder’s expected account value in proportion to the present value of total expected assessments. The additional death and other insurance benefits and net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. | |
Reserve for Future Policy Benefits and Unpaid Losses and Loss Adjustment Expenses | |
Liabilities for the Company’s group life and disability contracts as well its individual term life insurance policies include amounts for unpaid losses and future policy benefits. Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported. Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued. The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company’s earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company’s actual experience when appropriate. In particular, for the Company’s group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company’s experience, incorporating factors such as gender, elimination period and diagnosis. These reserves are computed such that they are expected to meet the Company’s future policy obligations. Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company’s policy obligations at their maturities or in the event of an insured’s death. Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company’s reserve levels and related future operations. | |
Other Policyholder Funds and Benefits Payable | |
Other policyholder funds and benefits payable consist of non-variable account values associated with universal life-type contracts and investment contracts. | |
The Company has classified its fixed and variable annuities and universal life insurance as universal life-type contracts. The liability for universal life-type contracts is equal to the balance that accrues to the benefit of the policyholders as of the financial statement date, including credited interest, amounts that have been assessed to compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on termination of the contract. | |
The Company has classified its institutional and governmental products, without life contingencies, including funding agreements, certain structured settlements and guaranteed investment contracts, as investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through the financial statement date. Contract holder funds include funding agreements held by Variable Interest Entities issuing medium-term notes. | |
Foreign Currency Translation | |
Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of accumulated other comprehensive income. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. |
Business_Dispositions
Business Dispositions | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||
Business Dispositions | ' | |||
Business Dispositions | ||||
Sale of Retirement Plans | ||||
On January 1, 2013, HLI completed the sale of its Retirement Plans business to MassMutual for a ceding commission of $355. The business sold included products and services to corporations pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), and products and services to municipalities and not-for-profit organizations under Sections 457 and 403(b) of the Code, collectively referred to as government plans. The sale was structured as a reinsurance transaction and resulted in an after-tax gain of $45 in the year ended December 31, 2013. The Company recognized $565 in reinsurance loss on disposition including a reduction in goodwill of $87, offset by $634 in realized capital gains for a $69 impact to income, pre-tax. | ||||
Upon closing, the Company reinsured $9.2 billion of policyholder liabilities and $26.3 billion of separate account liabilities under an indemnity reinsurance arrangement. The reinsurance transaction does not extinguish the Company's primary liability on the insurance policies issued under the Retirement Plans business. The Company also transferred invested assets with a carrying value of $9.3 billion, net of the ceding commission, to MassMutual and recognized other non-cash decreases in assets totaling $100 relating to deferred acquisition costs, deferred income taxes, goodwill, and other assets associated with the disposition. The Company will continue to sell retirement plans during a transition period of 18-24 months and MassMutual will assume all expenses and risk for these sales through the reinsurance agreement. | ||||
For the years ended December 31, 2012 and 2011, Retirement Plans total revenue was $706 and $766, respectively and net income (loss)was $(39) and $3, respectively. | ||||
Sale of Individual Life | ||||
On January 2, 2013 HLI completed the sale of its Individual Life insurance business to Prudential for consideration of $615, consisting primarily of a ceding commission, of which $590 is attributable to the Company. The business sold included variable universal life, universal life, and term life insurance. The sale was structured as a reinsurance transaction and resulted in a loss on business disposition consisting of a reinsurance loss partially offset by realized capital gains. In 2012, the Company recognized a reinsurance loss on business disposition of $61, pre-tax, which included a goodwill impairment of the same amount. For further information regarding the goodwill impairment, see Note 7 - Goodwill of Notes to Consolidated Financial Statements. Upon closing the Company recognized an additional reinsurance loss on disposition of $927, including a reduction in goodwill of $163 offset by realized capital gains of $927 for a $0 impact on income, pre-tax. | ||||
Upon closing, the Company reinsured $8.3 billion of policyholder liabilities and $5.3 billion of separate account liabilities under indemnity reinsurance arrangements. The reinsurance transaction does not extinguish the Company's primary liability under the Individual Life business. The Company also transferred invested assets with a carrying value of $7.6 billion, exclusive of $1.4 billion assets supporting the modified coinsurance agreement, net of cash transferred in place of short-term investments, to Prudential and recognized other non-cash decreases in assets totaling $1.8 billion of deferred acquisition costs, deferred income taxes, goodwill and other assets, and other non-cash decreases in liabilities totaling $1.9 billion relating to other liabilities associated with the disposition. The Company will continue to sell life insurance products and riders during a transition period of 18-24 months and Prudential will assume all expenses and risk for these sales through the reinsurance agreement. | ||||
For the years ended December 31, 2012 and 2011, Individual Life total revenue was $1,303 and $1,300, respectively and net income was $21 and $85, respectively. | ||||
Composition of Invested Assets Transferred | ||||
The following table presents invested assets transferred by the Company in connection with the sale of the Retirement Plans and Individual Life businesses in January 2013. In December 2012, the Company recognized intent-to-sell impairments of $173 and gains on derivatives hedging of $108 associated with the sale of these assets. | ||||
As of December 31, 2012 | ||||
Carrying Value | ||||
Total fixed maturities, AFS, at fair value (amortized cost of $13,596) [1] | $ | 15,015 | ||
Equity securities, AFS, at fair value (cost of $27) [2] | 28 | |||
Fixed maturities, at fair value using the FVO [3] | 16 | |||
Mortgage loans (net of allowances for loan losses of $1) | 1,288 | |||
Policy loans, at outstanding balance | 542 | |||
Total invested assets transferred | $ | 16,889 | ||
[1] The market value includes the fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in the net unrealized capital gains (losses). | ||||
[2] Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively. | ||||
[3] All equity securities transferred are included in level 2 of the fair value hierarchy. | ||||
[4] All FVO securities transferred are included in level 3 of the fair value hierarchy. | ||||
Purchase Agreement with Forethought Financial Group, Inc. | ||||
On December 31, 2012, The Hartford completed the sale of its U.S. individual annuity new business capabilities to Forethought Financial Group. Effective May 1, 2012, all new U.S. annuity policies sold by the Company are reinsured to Forethought Life Insurance Company. The Company ceased the sale of such annuity policies and the reinsurance agreement terminated as to new business in the second quarter of 2013. The reinsurance agreement has no impact on in-force policies issued on or before April 27, 2012 and the impact of this transaction was not material to the Company's results of operations, financial position or liquidity. | ||||
Sale of Woodbury Financial Services, Inc. | ||||
On November 30, 2012, The Hartford completed the sale of Woodbury Financial Services, an indirect wholly-owned subsidiary, to AIG Advisor Group, a subsidiary of American International Group, Inc. The impact of the disposition of this business was not material to the Company's results of operations, financial position or liquidity. | ||||
Servicing Agreement of Hartford Life Private Placement LLC | ||||
On July 13, 2012, The Hartford closed a sale transaction with Philadelphia Financial Group whereby Philadelphia Financial Group acquired certain assets used to administer the Company's private placement life insurance (“PPLI”) businesses and will service the PPLI businesses. The Company retained certain corporate functions associated with this business as well as the mortality risk on the insurance policies. Upon closing, the Company recorded a deferred gain of $61 after-tax, which will be amortized over the estimated life of the underlying insurance policies. | ||||
See Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements for the sale of certain subsidiaries that are being reported as discontinued operations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||||||
The following section applies the fair value hierarchy and disclosure requirements for the Company’s financial instruments that are carried at fair value. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three broad Levels (Level 1, 2 or 3). | ||||||||||||||||||||||||||||
Level 1 | Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that the Company has the ability to access at the measurement date. Level 1 securities include highly liquid U.S. Treasuries, money market funds and exchange traded equity securities, open-ended mutual funds reported in separate account assets and exchange-traded derivative securities. | |||||||||||||||||||||||||||
Level 2 | Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities. Most fixed maturities and preferred stocks, including those reported in separate account assets, are model priced by vendors using observable inputs and are classified within Level 2. Also included are limited partnerships and other alternative assets measured at fair value where an investment can be redeemed, or substantially redeemed, at the NAV at the measurement date or in the near-term, not to exceed 90 days; as well as, derivative instruments. | |||||||||||||||||||||||||||
Level 3 | Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk). Level 3 securities include less liquid securities, guaranteed product embedded and reinsurance derivatives and other complex derivative securities, as well as limited partnerships and other alternative investments carried at fair value that cannot be redeemed in the near-term at the NAV. Because Level 3 fair values, by their nature, contain one or more significant unobservable inputs as there is little or no observable market for these assets and liabilities, considerable judgment is used to determine the Level 3 fair values. Level 3 fair values represent the Company’s best estimate of an amount that could be realized in a current market exchange absent actual market exchanges. | |||||||||||||||||||||||||||
In many situations, inputs used to measure the fair value of an asset or liability position may fall into different levels of the fair value hierarchy. In these situations, the Company will determine the level in which the fair value falls based upon the lowest level input that is significant to the determination of the fair value. Transfers of securities among the levels occur at the beginning of the reporting period. For the year ended December 31, 2013, transfers from Level 1 to Level 2 were $287, which represented previously on-the-run U.S. Treasury securities that are now off-the-run, and there were no transfers from Level 2 to Level 1. In most cases, both observable (e.g., changes in interest rates) and unobservable (e.g., changes in risk assumptions) inputs are used in the determination of fair values that the Company has classified within Level 3. Consequently, these values and the related gains and losses are based upon both observable and unobservable inputs. The Company’s fixed maturities included in Level 3 are classified as such because these securities are primarily priced by independent brokers and/or are within illiquid markets. | ||||||||||||||||||||||||||||
The following tables present assets and (liabilities) carried at fair value by hierarchy level. These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments and information about the inputs used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following table presents assets and (liabilities) carried at fair value by hierarchy level. | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||||||||||||
Markets for | Inputs | Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||
ABS | $ | 1,129 | $ | — | $ | 1,021 | $ | 108 | ||||||||||||||||||||
CDOs | 1,448 | — | 1,020 | 428 | ||||||||||||||||||||||||
CMBS | 2,347 | — | 1,987 | 360 | ||||||||||||||||||||||||
Corporate | 16,917 | — | 16,127 | 790 | ||||||||||||||||||||||||
Foreign government/government agencies | 1,177 | — | 1,139 | 38 | ||||||||||||||||||||||||
States, municipalities and political subdivisions (“Municipal”) | 965 | — | 916 | 49 | ||||||||||||||||||||||||
RMBS | 2,431 | — | 1,633 | 798 | ||||||||||||||||||||||||
U.S. Treasuries | 1,749 | 1,077 | 672 | — | ||||||||||||||||||||||||
Total fixed maturities | 28,163 | 1,077 | 24,515 | 2,571 | ||||||||||||||||||||||||
Fixed maturities, FVO | 791 | — | 613 | 178 | ||||||||||||||||||||||||
Equity securities, trading | 12 | 12 | — | — | ||||||||||||||||||||||||
Equity securities, AFS | 372 | 207 | 114 | 51 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||
Credit derivatives | 9 | — | 11 | (2 | ) | |||||||||||||||||||||||
Foreign exchange derivatives | 14 | — | 14 | — | ||||||||||||||||||||||||
Interest rate derivatives | (57 | ) | — | (57 | ) | — | ||||||||||||||||||||||
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments | 26 | — | (42 | ) | 68 | |||||||||||||||||||||||
U.S. macro hedge program | 109 | — | — | 109 | ||||||||||||||||||||||||
International program hedging instruments | 171 | — | 173 | (2 | ) | |||||||||||||||||||||||
Total derivative assets [1] | 272 | — | 99 | 173 | ||||||||||||||||||||||||
Short-term investments | 1,952 | 228 | 1,724 | — | ||||||||||||||||||||||||
Limited partnerships and other alternative investments [2] | 468 | — | 414 | 54 | ||||||||||||||||||||||||
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB | (398 | ) | — | 67 | (465 | ) | ||||||||||||||||||||||
Separate account assets [3] | 138,482 | 99,917 | 37,828 | 737 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 170,114 | $ | 101,441 | $ | 65,374 | $ | 3,299 | ||||||||||||||||||||
Percentage of level to total | 100 | % | 60 | % | 38 | % | 2 | % | ||||||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | ||||||||||||||||||||||||||||
Guaranteed living benefits | $ | (576 | ) | $ | — | $ | — | $ | (576 | ) | ||||||||||||||||||
Equity linked notes | (18 | ) | — | — | (18 | ) | ||||||||||||||||||||||
Total other policyholder funds and benefits payable | (594 | ) | — | — | (594 | ) | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||
Credit derivatives | 11 | — | 7 | 4 | ||||||||||||||||||||||||
Equity derivatives | 18 | — | 16 | 2 | ||||||||||||||||||||||||
Foreign exchange derivatives | (382 | ) | — | (382 | ) | — | ||||||||||||||||||||||
Interest rate derivatives | (319 | ) | — | (295 | ) | (24 | ) | |||||||||||||||||||||
U.S. GMWB hedging instruments | 15 | — | (63 | ) | 78 | |||||||||||||||||||||||
U.S. macro hedge program | 30 | — | — | 30 | ||||||||||||||||||||||||
International program hedging instruments | (198 | ) | — | (139 | ) | (59 | ) | |||||||||||||||||||||
Total derivative liabilities [4] | (825 | ) | — | (856 | ) | 31 | ||||||||||||||||||||||
Consumer notes [5] | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (1,421 | ) | $ | — | $ | (856 | ) | $ | (565 | ) | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||||||||||||
Markets for | Inputs | Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||
ABS | $ | 1,673 | $ | — | $ | 1,435 | $ | 238 | ||||||||||||||||||||
CDOs | 2,160 | — | 1,437 | 723 | ||||||||||||||||||||||||
CMBS | 3,912 | — | 3,380 | 532 | ||||||||||||||||||||||||
Corporate | 30,979 | — | 29,639 | 1,340 | ||||||||||||||||||||||||
Foreign government/government agencies | 1,460 | — | 1,426 | 34 | ||||||||||||||||||||||||
States, municipalities and political subdivisions (“Municipal”) | 1,998 | — | 1,829 | 169 | ||||||||||||||||||||||||
RMBS | 4,671 | — | 3,538 | 1,133 | ||||||||||||||||||||||||
U.S. Treasuries | 2,551 | 78 | 2,473 | — | ||||||||||||||||||||||||
Total fixed maturities | 49,404 | 78 | 45,157 | 4,169 | ||||||||||||||||||||||||
Fixed maturities, FVO | 1,010 | 6 | 805 | 199 | ||||||||||||||||||||||||
Equity securities, trading | 1,847 | 1,847 | — | — | ||||||||||||||||||||||||
Equity securities, AFS | 400 | 203 | 142 | 55 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||
Credit derivatives | (10 | ) | — | — | (10 | ) | ||||||||||||||||||||||
Equity derivatives | 30 | — | — | 30 | ||||||||||||||||||||||||
Foreign exchange derivatives | 104 | — | 104 | — | ||||||||||||||||||||||||
Interest rate derivatives | 108 | — | 144 | (36 | ) | |||||||||||||||||||||||
U.S. GMWB hedging instruments | 36 | — | (53 | ) | 89 | |||||||||||||||||||||||
U.S. macro hedge program | 186 | — | — | 186 | ||||||||||||||||||||||||
International program hedging instruments | 127 | — | 142 | (15 | ) | |||||||||||||||||||||||
Total derivative assets [1] | 581 | — | 337 | 244 | ||||||||||||||||||||||||
Short-term investments | 2,354 | 242 | 2,112 | — | ||||||||||||||||||||||||
Limited partnerships and other alternative investments | 414 | — | 264 | 150 | ||||||||||||||||||||||||
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB | 1,081 | — | — | 1,081 | ||||||||||||||||||||||||
Separate account assets [3] | 138,497 | 97,976 | 39,938 | 583 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 195,588 | $ | 100,352 | $ | 88,755 | $ | 6,481 | ||||||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | ||||||||||||||||||||||||||||
Guaranteed living benefits | $ | (3,119 | ) | $ | — | $ | — | $ | (3,119 | ) | ||||||||||||||||||
Equity linked notes | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||||
Total other policyholder funds and benefits payable | (3,127 | ) | — | — | (3,127 | ) | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||
Credit derivatives | (6 | ) | — | (20 | ) | 14 | ||||||||||||||||||||||
Equity derivatives | 15 | — | — | 15 | ||||||||||||||||||||||||
Foreign exchange derivatives | (17 | ) | — | (17 | ) | — | ||||||||||||||||||||||
Interest rate derivatives | (359 | ) | — | (338 | ) | (21 | ) | |||||||||||||||||||||
U.S. GMWB hedging instruments | 536 | — | 106 | 430 | ||||||||||||||||||||||||
U.S. macro hedge program | 100 | — | — | 100 | ||||||||||||||||||||||||
International program hedging instruments | (231 | ) | — | (171 | ) | (60 | ) | |||||||||||||||||||||
Total derivative liabilities [4] | 38 | — | (440 | ) | 478 | |||||||||||||||||||||||
Other liabilities | — | — | — | — | ||||||||||||||||||||||||
Consumer notes [5] | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (3,091 | ) | $ | — | $ | (440 | ) | $ | (2,651 | ) | |||||||||||||||||
[1] | Includes OTC and OTC-cleared derivative instruments in a net asset value position after consideration of the impact of collateral posting requirements, which may be imposed by agreements, clearinghouse rules, and applicable law. At December 31, 2013 and December 31, 2012, $120 and $92, respectively, was netted against the derivative asset value in the Consolidated Balance Sheet and is excluded from the table above. For further information on derivative liabilities, see below in this Note 3. | |||||||||||||||||||||||||||
[2] | Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value. | |||||||||||||||||||||||||||
[3] | As of December 31, 2013 and 2012, excludes approximately $2.4 billion and $3.1 billion, respectively, of investment sales receivable that are not subject to fair value accounting. | |||||||||||||||||||||||||||
[4] | Includes OTC and OTC-cleared derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll forward table included below in this Note, the sum of the derivative asset and liability positions are referred to as “freestanding derivatives” and are presented on a net basis. | |||||||||||||||||||||||||||
[5] | Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes. | |||||||||||||||||||||||||||
Determination of Fair Values | ||||||||||||||||||||||||||||
The valuation methodologies used to determine the fair values of assets and liabilities under the “exit price” notion, reflect market-participant objectives and are based on the application of the fair value hierarchy that prioritizes relevant observable market inputs over unobservable inputs. The Company determines the fair values of certain financial assets and financial liabilities based on quoted market prices where available and where prices represent a reasonable estimate of fair value. The Company also determines fair value based on future cash flows discounted at the appropriate current market rate. Fair values reflect adjustments for counterparty credit quality, the Company’s default spreads, liquidity and, where appropriate, risk margins on unobservable parameters. The following is a discussion of the methodologies used to determine fair values for the financial instruments listed in the above tables. | ||||||||||||||||||||||||||||
The fair value process is monitored by the Valuation Committee, which is a cross-functional group of senior management within the Company that meets at least quarterly. The Valuation Committee is co-chaired by the Heads of Investment Operations and Accounting, and has representation from various investment sector professionals, accounting, operations, legal, compliance and risk management. The purpose of the committee is to oversee the pricing policy and procedures by ensuring objective and reliable valuation practices and pricing of financial instruments, as well as addressing fair valuation issues and approving changes to valuation methodologies and pricing sources. There are also two working groups, a Securities Fair Value Working Group (“Securities Working Group”) and a Derivatives Fair Value Working Group ("Derivatives Working Group"), which include the Heads of Investment Operations and Accounting, as well as other investment, operations, accounting and risk management professionals that meet monthly to review market data trends, pricing and trading statistics and results, and any proposed pricing methodology changes described in more detail in the following paragraphs. | ||||||||||||||||||||||||||||
The Company also has an enterprise-wide Operational Risk Management function, led by the Chief Operational Risk Officer, which is responsible for establishing, maintaining and communicating the framework, principles and guidelines of the Company's operational risk management program. This includes model risk management which provides an independent review of the suitability, characteristics and reliability of model inputs; as well as, an analysis of significant changes to current models. | ||||||||||||||||||||||||||||
AFS Securities, Fixed Maturities, FVO, Equity Securities, Trading, and Short-term Investments | ||||||||||||||||||||||||||||
The fair value of AFS securities, fixed maturities, FVO, equity securities, trading, and short-term investments in an active and orderly market (e.g. not distressed or forced liquidation) are determined by management after considering one of three primary sources of information: third-party pricing services, independent broker quotations or pricing matrices. Security pricing is applied using a “waterfall” approach whereby publicly available prices are first sought from third-party pricing services, the remaining unpriced securities are submitted to independent brokers for prices, or lastly, securities are priced using a pricing matrix. If none of these pricing sources are available, the Company will estimate fair value utilizing an internal pricing model. Typical inputs used by these pricing methods include, but are not limited to, reported trades, benchmark yields, issuer spreads, bids, offers, and/or estimated cash flows, prepayments speeds and default rates. Based on the typical trading volumes and the lack of quoted market prices for fixed maturities, third-party pricing services will normally derive the security prices from recent reported trades for identical or similar securities making adjustments through the reporting date based upon available market observable information as outlined above. If there are no recently reported trades, the third-party pricing services and independent brokers may use matrix or model processes to develop a security price where future cash flow expectations are developed based upon collateral performance and discounted at an estimated market rate. Included in the pricing of ABS and RMBS are estimates of the rate of future prepayments of principal over the remaining life of the securities. Such estimates are derived based on the characteristics of the underlying structure and prepayment speeds previously experienced at the interest rate levels projected for the underlying collateral. Actual prepayment experience may vary from these estimates. | ||||||||||||||||||||||||||||
Prices from third-party pricing services are often unavailable for securities that are rarely traded or are traded only in privately negotiated transactions. As a result, certain securities are priced via independent broker quotations which utilize inputs that may be difficult to corroborate with observable market based data. Additionally, the majority of these independent broker quotations are non-binding. | ||||||||||||||||||||||||||||
A pricing matrix is used to price private placement securities for which the Company is unable to obtain a price from a third-party pricing service by discounting the expected future cash flows from the security by a developed market discount rate utilizing current credit spreads. Credit spreads are developed each month using market based data for public securities adjusted for credit spread differentials between public and private securities which are obtained from a survey of multiple private placement brokers. The appropriate credit spreads determined through this survey approach are based upon the issuer’s financial strength and term to maturity, utilizing an independent public security index and trade information and adjusting for the non-public nature of the securities. | ||||||||||||||||||||||||||||
The Working Group performs an ongoing analysis of the prices and credit spreads received from third parties to ensure that the prices represent a reasonable estimate of the fair value. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. As a part of this analysis, the Company considers trading volume, new issuance activity and other factors to determine whether the market activity is significantly different than normal activity in an active market, and if so, whether transactions may not be orderly considering the weight of available evidence. If the available evidence indicates that pricing is based upon transactions that are stale or not orderly, the Company places little, if any, weight on the transaction price and will estimate fair value utilizing an internal pricing model. In addition, the Company ensures that prices received from independent brokers represent a reasonable estimate of fair value through the use of internal and external cash flow models developed based on spreads, and when available, market indices. As a result of this analysis, if the Company determines that there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly and approved by the Valuation Committee. The Company’s internal pricing model utilizes the Company’s best estimate of expected future cash flows discounted at a rate of return that a market participant would require. The significant inputs to the model include, but are not limited to, current market inputs, such as credit loss assumptions, estimated prepayment speeds and market risk premiums. | ||||||||||||||||||||||||||||
The Company conducts other specific activities to monitor controls around pricing. Daily analyses identify price changes over 3-5%, sale trade prices that differ over 3% from the prior day’s price and purchase trade prices that differ more than 3% from the current day’s price. Weekly analyses identify prices that differ more than 5% from published bond prices of a corporate bond index. Monthly analyses identify price changes over 3%, prices that have not changed, missing prices and second source validation on most sectors. Analyses are conducted by a dedicated pricing unit that follows up with trading and investment sector professionals and challenges prices with vendors when the estimated assumptions used differ from what the Company feels a market participant would use. Any changes from the identified pricing source are verified by further confirmation of assumptions used. Examples of other procedures performed include, but are not limited to, initial and on-going review of third-party pricing services’ methodologies, review of pricing statistics and trends and back testing recent trades. | ||||||||||||||||||||||||||||
The Company has analyzed the third-party pricing services’ valuation methodologies and related inputs, and has also evaluated the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy level based upon trading activity and the observability of market inputs. Most prices provided by third-party pricing services are classified into Level 2 because the inputs used in pricing the securities are market observable. Due to a general lack of transparency in the process that brokers use to develop prices, most valuations that are based on brokers’ prices are classified as Level 3. Some valuations may be classified as Level 2 if the price can be corroborated with observable market data. | ||||||||||||||||||||||||||||
Derivative Instruments, including embedded derivatives within investments | ||||||||||||||||||||||||||||
Derivative instruments are fair valued using pricing valuation models for OTC derivatives that utilize independent market data inputs, quoted market prices for exchange-traded and OTC-cleared derivatives, or independent broker quotations. Excluding embedded and reinsurance related derivatives, as of December 31, 2013 and December 31, 2012, 97% and 98%, respectively, of derivatives, based upon notional values, were priced by valuation models or quoted market prices. The remaining derivatives were priced by broker quotations. | ||||||||||||||||||||||||||||
The Derivatives Working Group performs ongoing analysis of the valuations, assumptions and methodologies used to ensure that the prices represent a reasonable estimate of the fair value. The Company performs various controls on derivative valuations which include both quantitative and qualitative analysis. Analyses are conducted by a dedicated derivative pricing team that works directly with investment sector professionals to analyze impacts of changes in the market environment and investigate variances. There is a monthly analysis to identify market value changes greater than pre-defined thresholds, stale prices, missing prices and zero prices. Also on a monthly basis, a second source validation, typically to broker quotations, is performed for certain of the more complex derivatives as well as for any existing deals with a market value greater than $10 and all new deals during the month. A model validation review is performed on any new models, which typically includes detailed documentation and validation to a second source. The model validation documentation and results of validation are presented to the Valuation Committee for approval. There is a monthly control to review changes in pricing sources to ensure that new models are not moved to production until formally approved. | ||||||||||||||||||||||||||||
The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instrument may not be classified with the same fair value hierarchy level as the associated assets and liabilities. Therefore the realized and unrealized gains and losses on derivatives reported in Level 3 may not reflect the offsetting impact of the realized and unrealized gains and losses of the associated assets and liabilities. | ||||||||||||||||||||||||||||
Limited partnerships and other alternative investments | ||||||||||||||||||||||||||||
Limited partnerships and other alternative investments include hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value. These funds are fair valued using the net asset value per share or equivalent (“NAV”), as a practical expedient, calculated on a monthly basis and is the amount at which a unit or shareholder may redeem their investment, if redemption is allowed. Certain impediments to redemption include, but are not limited to the following: 1) redemption notice periods vary and may be as long as 90 days, 2) redemption may be restricted (e.g. only be allowed on a quarter-end), 3) a holding period referred to as a lock-up may be imposed whereby an investor must hold their investment for a specified period of time before they can make a notice for redemption, 4) gating provisions may limit all redemptions in a given period to a percentage of the entities' equity interests, or may only allow an investor to redeem a portion of their investment at one time and 5) early redemption penalties may be imposed that are expressed as a percentage of the amount redeemed. The Company will assess impediments to redemption and current market conditions that will restrict the redemption at the end of the notice period. Any funds that are subject to significant liquidity restrictions are reported in Level 3; all others have been classified as Level 2. | ||||||||||||||||||||||||||||
Valuation Techniques and Inputs for Investments | ||||||||||||||||||||||||||||
Generally, the Company determines the estimated fair value of its AFS securities, fixed maturities, FVO, equity securities, trading, and short-term investments using the market approach. The income approach is used for securities priced using a pricing matrix, as well as for derivative instruments. Certain limited partnerships and other alternative investments are measured at fair value using a NAV as a practical expedient. For Level 1 investments, which are comprised of on-the-run U.S. Treasuries, exchange-traded equity securities, short-term investments, exchange traded futures and option contracts, valuations are based on observable inputs that reflect quoted prices for identical assets in active markets that the Company has the ability to access at the measurement date. | ||||||||||||||||||||||||||||
For most of the Company’s debt securities, the following inputs are typically used in the Company’s pricing methods: reported trades, benchmark yields, bids and/or estimated cash flows. For securities except U.S. Treasuries, inputs also include issuer spreads, which may consider credit default swaps. Derivative instruments are valued using mid-market inputs that are predominantly observable in the market. | ||||||||||||||||||||||||||||
A description of additional inputs used in the Company’s Level 2 and Level 3 measurements is listed below: | ||||||||||||||||||||||||||||
Level 2 | The fair values of most of the Company’s Level 2 investments are determined by management after considering prices received from third party pricing services. These investments include most fixed maturities and preferred stocks, including those reported in separate account assets; as well as, certain limited partnerships and other alternative investments and derivative instruments. | |||||||||||||||||||||||||||
• | ABS, CDOs, CMBS and RMBS – Primary inputs also include monthly payment information, collateral performance, which varies by vintage year and includes delinquency rates, collateral valuation loss severity rates, collateral refinancing assumptions, credit default swap indices and, for ABS and RMBS, estimated prepayment rates. | |||||||||||||||||||||||||||
• | Corporates, including investment grade private placements – Primary inputs also include observations of credit default swap curves related to the issuer. | |||||||||||||||||||||||||||
• | Foreign government/government agencies—Primary inputs also include observations of credit default swap curves related to the issuer and political events in emerging markets. | |||||||||||||||||||||||||||
• | Municipals – Primary inputs also include Municipal Securities Rulemaking Board reported trades and material event notices, and issuer financial statements. | |||||||||||||||||||||||||||
• | Short-term investments – Primary inputs also include material event notices and new issue money market rates. | |||||||||||||||||||||||||||
• | Equity securities, trading – Consist of investments in mutual funds. Primary inputs include net asset values obtained from third party pricing services. | |||||||||||||||||||||||||||
• | Credit derivatives – Primary inputs include the swap yield curve and credit default swap curves. | |||||||||||||||||||||||||||
• | Foreign exchange derivatives – Primary inputs include the swap yield curve, currency spot and forward rates, and cross currency basis curves. | |||||||||||||||||||||||||||
• | Interest rate derivatives – Primary input is the swap yield curve. | |||||||||||||||||||||||||||
• | Limited partnerships and other alternative investments — Primary inputs include a NAV for investment companies with no redemption restrictions as reported on their U.S. GAAP financial statements. | |||||||||||||||||||||||||||
Level 3 | Most of the Company’s securities classified as Level 3 include less liquid securities such as lower quality ABS, CMBS, commercial real estate (“CRE”) CDOs and RMBS primarily backed by below-prime loans. Securities included in level 3 are primarily valued based on broker prices or broker spreads, without adjustments. Primary inputs for non-broker priced investments, including structured securities, are consistent with the typical inputs used in Level 2 measurements noted above, but are Level 3 due to their less liquid markets. Additionally, certain long-dated securities are priced based on third party pricing services, including municipal securities, foreign government/government agencies, bank loans and below investment grade private placement securities. Primary inputs for these long-dated securities are consistent with the typical inputs used in Level 1 and Level 2 measurements noted above, but include benchmark interest rate or credit spread assumptions that are not observable in the marketplace. Level 3 investments also include certain limited partnerships and other alternative investments measured at fair value where the Company does not have the ability to redeem the investment in the near-term at the NAV. Also included in Level 3, are certain derivative instruments that either have significant unobservable inputs or are valued based on broker quotations. Significant inputs for these derivative contracts primarily include the typical inputs used in the Level 1 and Level 2 measurements noted above; but also include equity and interest rate volatility and swap yield curves beyond observable limits. | |||||||||||||||||||||||||||
Significant Unobservable Inputs for Level 3 Assets Measured at Fair Values | ||||||||||||||||||||||||||||
The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value. | ||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Securities | Unobservable Inputs | |||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | Fair | Predominant | Significant Unobservable Input | Minimum | Maximum | Weighted Average [1] | Impact of | |||||||||||||||||||||
Value | Valuation | Increase in Input | ||||||||||||||||||||||||||
Method | on Fair Value [2] | |||||||||||||||||||||||||||
CMBS | $ | 360 | Discounted cash flows | Spread (encompasses | 99bps | 2,511bps | 446bps | Decrease | ||||||||||||||||||||
prepayment, default risk and loss severity) | ||||||||||||||||||||||||||||
Corporate [3] | 398 | Discounted cash flows | Spread | 119bps | 5,594bps | 332bps | Decrease | |||||||||||||||||||||
Municipal [3] | 29 | Discounted cash flows | Spread | 184bps | 184bps | 184bps | Decrease | |||||||||||||||||||||
RMBS | 798 | Discounted cash flows | Spread | 62bps | 1,748bps | 245bps | Decrease | |||||||||||||||||||||
Constant prepayment rate | — | % | 10 | % | 3 | % | Decrease [4] | |||||||||||||||||||||
Constant default rate | 1 | % | 22 | % | 8 | % | Decrease | |||||||||||||||||||||
Loss severity | — | % | 100 | % | 80 | % | Decrease | |||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Securities | Unobservable Inputs | |||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | Fair | Predominant | Significant Unobservable Input | Minimum | Maximum | Weighted Average [1] | Impact of | |||||||||||||||||||||
Value | Valuation | Increase in Input | ||||||||||||||||||||||||||
Method | on Fair Value [2] | |||||||||||||||||||||||||||
CMBS | $ | 532 | Discounted cash flows | Spread (encompasses | 320bps | 3,615bps | 1,013bps | Decrease | ||||||||||||||||||||
prepayment, default risk and loss severity) | ||||||||||||||||||||||||||||
Corporate [3] | 888 | Discounted cash flows | Spread | 145bps | 900bps | 333bps | Decrease | |||||||||||||||||||||
Municipal | 169 | Discounted cash flows | Spread | 227bps | 344bps | 254bps | Decrease | |||||||||||||||||||||
RMBS | 1,133 | Discounted cash flows | Spread | 54bps | 1,689bps | 379bps | Decrease | |||||||||||||||||||||
Constant prepayment rate | — | % | 12 | % | 2 | % | Decrease [4] | |||||||||||||||||||||
Constant default rate | 1 | % | 24 | % | 8 | % | Decrease | |||||||||||||||||||||
Loss severity | — | % | 100 | % | 80 | % | Decrease | |||||||||||||||||||||
[1] | The weighted average is determined based on the fair value of the securities. | |||||||||||||||||||||||||||
[2] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above. | |||||||||||||||||||||||||||
[3] | Level 3 corporate and municipal securities excludes those for which the Company bases fair value on broker quotations as discussed below. | |||||||||||||||||||||||||||
[4] | Decrease for above market rate coupons and increase for below market rate coupons. | |||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Freestanding Derivatives | Unobservable Inputs | |||||||||||||||||||||||||||
Fair | Predominant Valuation | Significant | Minimum | Maximum | Impact of | |||||||||||||||||||||||
Value | Method | Unobservable Input | Increase in Input | |||||||||||||||||||||||||
on Fair Value [1] | ||||||||||||||||||||||||||||
Interest rate derivative | ||||||||||||||||||||||||||||
Interest rate swaps | (24 | ) | Discounted cash flows | Swap curve | 4% | 4% | Increase | |||||||||||||||||||||
beyond 30 years | ||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | ||||||||||||||||||||||||||||
Equity options | 72 | Option model | Equity volatility | 21% | 29% | Increase | ||||||||||||||||||||||
Customized swaps | 74 | Discounted cash flows | Equity volatility | 10% | 50% | Increase | ||||||||||||||||||||||
U.S. macro hedge program | ||||||||||||||||||||||||||||
Equity options | 139 | Option model | Equity volatility | 24% | 31% | Increase | ||||||||||||||||||||||
International hedging program [2] | ||||||||||||||||||||||||||||
Equity options | (66 | ) | Option model | Equity volatility | 29% | 37% | Increase | |||||||||||||||||||||
Short interest rate swaptions | (12 | ) | Option model | Interest rate volatility | —% | 1% | Decrease | |||||||||||||||||||||
Long interest rate swaptions | 48 | Option model | Interest rate volatility | 1% | 1% | Increase | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Freestanding Derivatives | Unobservable Inputs | |||||||||||||||||||||||||||
Fair | Predominant Valuation | Significant | Minimum | Maximum | Impact of | |||||||||||||||||||||||
Value | Method | Unobservable Input | Increase in Input | |||||||||||||||||||||||||
on Fair Value [1] | ||||||||||||||||||||||||||||
Equity derivatives | ||||||||||||||||||||||||||||
Equity options | 45 | Option model | Equity volatility | 13.00% | 24% | Increase | ||||||||||||||||||||||
Interest rate derivative | ||||||||||||||||||||||||||||
Interest rate swaps | (57 | ) | Discounted cash flows | Swap curve | 2.80% | 2.80% | Increase | |||||||||||||||||||||
beyond 30 years | ||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | ||||||||||||||||||||||||||||
Equity options | 281 | Option model | Equity volatility | 10% | 31% | Increase | ||||||||||||||||||||||
Customized swaps | 238 | Discounted cash flows | Equity volatility | 10% | 50% | Increase | ||||||||||||||||||||||
U.S. macro hedge program | ||||||||||||||||||||||||||||
Equity options | 286 | Option model | Equity volatility | 24% | 43% | Increase | ||||||||||||||||||||||
International hedging program | ||||||||||||||||||||||||||||
Equity options | 44 | Option model | Equity volatility | 22% | 33% | Increase | ||||||||||||||||||||||
Long interest rate | (119 | ) | Option model | Interest rate volatility | —% | 1% | Increase | |||||||||||||||||||||
[1] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. | |||||||||||||||||||||||||||
[2] | Level 3 international program hedging instruments excludes those for which the Company bases fair value on broker quotations. | |||||||||||||||||||||||||||
Securities and derivatives for which the Company bases fair value on broker quotations predominately include ABS, CDOs, corporate, fixed maturities, FVO and certain credit derivatives. Due to the lack of transparency in the process brokers use to develop prices for these investments, the Company does not have access to the significant unobservable inputs brokers use to price these securities and derivatives. The Company believes however, the types of inputs brokers may use would likely be similar to those used to price securities and derivatives for which inputs are available to the Company, and therefore may include, but not be limited to, loss severity rates, constant prepayment rates, constant default rates and credit spreads. Therefore, similar to non broker priced securities and derivatives, generally, increases in these inputs would cause fair values to decrease. For the year ended, December 31, 2013, no significant adjustments were made by the Company to broker prices received. | ||||||||||||||||||||||||||||
As of December 31, 2013 and December 31, 2012, excluded from the tables above are limited partnerships and other alternative investments which total $54 and $150, respectively, of Level 3 assets measured at fair value. The predominant valuation method uses a NAV calculated on a monthly basis and represents funds where the Company does not have the ability to redeem the investment in the near-term at that NAV, including an assessment of the investee's liquidity. | ||||||||||||||||||||||||||||
Product Derivatives | ||||||||||||||||||||||||||||
The Company formerly offered and subsequently reinsured certain variable annuity products with GMWB riders in the U.S. The Company has also assumed, through reinsurance from HLIKK, GMIB, GMWB and GMAB riders. The Company has subsequently ceded certain GMWB rider liabilities and the assumed reinsurance from HLIKK to an affiliated captive reinsurer. The GMWB provides the policyholder with a guaranteed remaining balance (“GRB”) which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. Certain contract provisions can increase the GRB at contract holder election or after the passage of time. The GMWB represents an embedded derivative in the variable annuity contract. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the Consolidated Balance Sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. The Company’s GMWB liability is carried at fair value and reported in other policyholder funds. The notional value of the embedded derivative is the GRB. | ||||||||||||||||||||||||||||
In valuing the embedded derivative, the Company attributes to the derivative a portion of the fees collected from the contract holder equal to the present value of future GMWB claims (the “Attributed Fees”). All changes in the fair value of the embedded derivative are recorded in net realized capital gains and losses. The excess of fees collected from the contract holder over the Attributed Fees are associated with the host variable annuity contract reported in fee income. | ||||||||||||||||||||||||||||
The reinsurance assumed on the HLIKK GMIB, GMWB, and GMAB and ceded to an affiliated captive reinsurer meets the characteristics of a free-standing derivative instrument. As a result, the derivative asset or liability is recorded at fair value with changes in the fair value reported in net realized capital gains and losses. | ||||||||||||||||||||||||||||
Living Benefits Required to be Fair Valued (in Other Policyholder Funds and Benefits Payable) | ||||||||||||||||||||||||||||
Living benefits required to be fair valued include U.S guaranteed withdrawal benefits, international guaranteed withdrawal benefits and international other guaranteed living benefits. Fair values for GMWB and GMAB contracts are calculated using the income approach based upon internally developed models because active, observable markets do not exist for those items. The fair value of the Company’s guaranteed benefit liabilities, classified as embedded derivatives, and the related reinsurance and customized freestanding derivatives are calculated as an aggregation of the following components: Best Estimate Claims Costs calculated based on actuarial and capital market assumptions related to projected cash flows over the lives of the contracts; Credit Standing Adjustment; and Margins representing an amount that market participants would require for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The resulting aggregation is reconciled or calibrated, if necessary, to market information that is, or may be, available to the Company, but may not be observable by other market participants, including reinsurance discussions and transactions. The Company believes the aggregation of these components, as necessary and as reconciled or calibrated to the market information available to the Company, results in an amount that the Company would be required to transfer or receive, for an asset, to or from market participants in an active liquid market, if one existed, for those market participants to assume the risks associated with the guaranteed minimum benefits and the related reinsurance and customized derivatives. The fair value is likely to materially diverge from the ultimate settlement of the liability as the Company believes settlement will be based on our best estimate assumptions rather than those best estimate assumptions plus risk margins. In the absence of any transfer of the guaranteed benefit liability to a third party, the release of risk margins is likely to be reflected as realized gains in future periods’ net income. Each component described below is unobservable in the marketplace and requires subjectivity by the Company in determining their value. | ||||||||||||||||||||||||||||
Oversight of the Company’s valuation policies and processes for product and U.S. GMWB reinsurance derivatives is performed by a multidisciplinary group comprised of finance, actuarial and risk management professionals. This multidisciplinary group reviews and approves changes and enhancements to the Company’s valuation model as well as associated controls. | ||||||||||||||||||||||||||||
Best Estimate Claims Costs | ||||||||||||||||||||||||||||
The Best Estimate Claims Costs is calculated based on actuarial and capital market assumptions related to projected cash flows, including the present value of benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior such as lapses, fund selection, resets and withdrawal utilization (for the customized derivatives, policyholder behavior is prescribed in the derivative contract). Because of the dynamic and complex nature of these cash flows, best estimate assumptions and a Monte Carlo stochastic process involving the generation of thousands of scenarios that assume risk neutral returns consistent with swap rates and a blend of observable implied index volatility levels were used. Estimating these cash flows involves numerous estimates and subjective judgments including those regarding expected markets rates of return, market volatility, correlations of market index returns to funds, fund performance, discount rates and various actuarial assumptions for policyholder behavior which emerge over time. | ||||||||||||||||||||||||||||
At each valuation date, the Company assumes expected returns based on: | ||||||||||||||||||||||||||||
• | risk-free rates as represented by the Eurodollar futures, LIBOR deposits and swap rates to derive forward curve rates; | |||||||||||||||||||||||||||
• | market implied volatility assumptions for each underlying index based primarily on a blend of observed market “implied volatility” data; | |||||||||||||||||||||||||||
• | correlations of historical returns across underlying well known market indices based on actual observed returns over the ten years preceding the valuation date; and | |||||||||||||||||||||||||||
• | three years of history for fund regression. | |||||||||||||||||||||||||||
As many guaranteed benefit obligations are relatively new in the marketplace, actual policyholder behavior experience is limited. As a result, estimates of future policyholder behavior are subjective and based on analogous internal and external data. As markets change, mature and evolve and actual policyholder behavior emerges, management continually evaluates the appropriateness of its assumptions for this component of the fair value model. | ||||||||||||||||||||||||||||
On a daily basis, the Company updates capital market assumptions used in the GMWB liability model such as interest rates, equity indices and the blend of implied equity index volatilities. The Company monitors various aspects of policyholder behavior and may modify certain of its assumptions, including living benefit lapses and withdrawal rates, if credible emerging data indicates that changes are warranted. At a minimum, all policyholder behavior assumptions are reviewed and updated, as appropriate, in conjunction with the completion of the Company’s comprehensive study to refine its estimate of future gross profits during the third quarter of each year. | ||||||||||||||||||||||||||||
Credit Standing Adjustment | ||||||||||||||||||||||||||||
This assumption makes an adjustment that market participants would make, in determining fair value, to reflect the risk that guaranteed benefit obligations or the GMWB reinsurance recoverables will not be fulfilled (“nonperformance risk”). The Company incorporates a blend of observable Company and reinsurer credit default spreads from capital markets, adjusted for market recoverability. For the years ended December 31, 2013, 2012 and 2011, the credit standing adjustment assumption, net of reinsurance and exclusive of the impact of the credit standing adjustment on other market sensitivities, resulted in pre-tax realized gains (losses) of $492, $499 and $(156), respectively. | ||||||||||||||||||||||||||||
Margins | ||||||||||||||||||||||||||||
The behavior risk margin adds a margin that market participants would require for the risk that the Company’s assumptions about policyholder behavior could differ from actual experience. The behavior risk margin is calculated by taking the difference between adverse policyholder behavior assumptions and best estimate assumptions. | ||||||||||||||||||||||||||||
Assumption updates, including policyholder behavior assumptions, affected best estimates and margins for total pre-tax realized gains of $28, $76 and $13 for the years ended December 31, 2013, 2012 and 2011. As of December 31, 2013 and 2012 the behavior risk margin was $32 and $77, respectively. | ||||||||||||||||||||||||||||
In addition to the non-market-based updates described above, the Company recognized non-market-based updates driven by the relative outperformance (underperformance) of the underlying actively managed funds as compared to their respective indices resulting in before-tax realized gains/(losses) of approximately $11, $29 and $(18) for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||
Significant unobservable inputs used in the fair value measurement of living benefits required to be fair valued and the U.S. GMWB reinsurance derivative are withdrawal utilization and withdrawal rates, lapse rates, reset elections and equity volatility. The following table provides quantitative information about the significant unobservable inputs and is applicable to all of the Living Benefits Required to be Fair Valued and the reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB and GMAB. Significant increases in any of the significant unobservable inputs, in isolation, will generally have an increase or decrease correlation with the fair value measurement, as shown in the table. | ||||||||||||||||||||||||||||
Unobservable Inputs | ||||||||||||||||||||||||||||
Significant Unobservable Input | Minimum | Maximum | Impact of Increase in Input | |||||||||||||||||||||||||
on Fair Value Measurement [1] | ||||||||||||||||||||||||||||
Withdrawal Utilization[2] | 20% | 100% | Increase | |||||||||||||||||||||||||
Withdrawal Rates [2] | 0% | 8% | Increase | |||||||||||||||||||||||||
Annuitization utilization [3] | 0% | 100% | Increase | |||||||||||||||||||||||||
Lapse Rates [4] | 0% | 75% | Decrease | |||||||||||||||||||||||||
Reset Elections [5] | 20% | 75% | Increase | |||||||||||||||||||||||||
Equity Volatility [6] | 10% | 50% | Increase | |||||||||||||||||||||||||
[1] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. | |||||||||||||||||||||||||||
[2] | Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn. | |||||||||||||||||||||||||||
[3] | For reinsurance associated with Japan GMIB, range represents assumed cumulative percentages of policyholders annuitizing variable annuity contracts. | |||||||||||||||||||||||||||
[4] | Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business. | |||||||||||||||||||||||||||
[5] | Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base. | |||||||||||||||||||||||||||
[6] | Range represents implied market volatilities for equity indices based on multiple pricing sources. | |||||||||||||||||||||||||||
Generally a change in withdrawal utilization assumptions would be accompanied by a directionally opposite change in lapse rate assumptions, as the behavior of policyholders that utilize GMWB or GMAB riders is typically different from policyholders that do not utilize these riders. | ||||||||||||||||||||||||||||
Separate Account Assets | ||||||||||||||||||||||||||||
Separate account assets are primarily invested in mutual funds. Other separate account assets include fixed maturities, limited partnerships, equity securities, short-term investments and derivatives that are valued in the same manner, and using the same pricing sources and inputs, as those investments held by the Company. Separate account assets classified as Level 3 primarily include limited partnerships in which fair value represents the separate account’s share of the fair value of the equity in the investment (“net asset value”) and are classified in level 3 based on the Company’s ability to redeem its investment. | ||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||||||||
The tables below provide a fair value roll forward for the years ended December 31, 2013 and 2012, for the financial instruments classified as Level 3. | ||||||||||||||||||||||||||||
Fixed Maturities, AFS | Fixed | |||||||||||||||||||||||||||
Maturities, | ||||||||||||||||||||||||||||
Assets | ABS | CDOs | CMBS | Corporate | Foreign | Municipal | RMBS | Total Fixed | FVO | |||||||||||||||||||
govt./govt. | Maturities, | |||||||||||||||||||||||||||
agencies | AFS | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 238 | $ | 723 | $ | 532 | $ | 1,340 | $ | 34 | $ | 169 | $ | 1,133 | $ | 4,169 | $ | 199 | ||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (12 | ) | 18 | (14 | ) | 6 | (1 | ) | — | 39 | 36 | 61 | ||||||||||||||||
Included in OCI [3] | 32 | 110 | 53 | (4 | ) | (3 | ) | (10 | ) | 42 | 220 | — | ||||||||||||||||
Purchases | 25 | 37 | 37 | 75 | 27 | — | 74 | 275 | 14 | |||||||||||||||||||
Settlements | (6 | ) | (113 | ) | (89 | ) | (112 | ) | (4 | ) | — | (134 | ) | (458 | ) | (2 | ) | |||||||||||
Sales | (127 | ) | (341 | ) | (152 | ) | (333 | ) | (13 | ) | (110 | ) | (355 | ) | (1,431 | ) | (94 | ) | ||||||||||
Transfers into Level 3 [4] | 3 | 23 | 36 | 99 | — | — | — | 161 | 3 | |||||||||||||||||||
Transfers out of Level 3 [4] | (45 | ) | (29 | ) | (43 | ) | (281 | ) | (2 | ) | — | (1 | ) | (401 | ) | (3 | ) | |||||||||||
Fair value as of December 31, 2013 | $ | 108 | $ | 428 | $ | 360 | $ | 790 | $ | 38 | $ | 49 | $ | 798 | $ | 2,571 | $ | 178 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (7 | ) | $ | — | $ | (2 | ) | $ | (7 | ) | $ | — | $ | — | $ | (1 | ) | $ | (17 | ) | $ | 44 | |||||
Freestanding Derivatives [5] | ||||||||||||||||||||||||||||
Assets (Liabilities) | Equity | Credit | Equity | Interest | U.S. | U.S. | Intl. | Other Contract Derivatives | Total Free- | |||||||||||||||||||
Securities, | Rate | GMWB | Macro | Program | Standing | |||||||||||||||||||||||
AFS | Hedging | Hedge | Hedging | Derivatives | ||||||||||||||||||||||||
Program | [5] | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 55 | $ | 4 | $ | 45 | $ | (57 | ) | $ | 519 | $ | 286 | $ | (75 | ) | $ | — | $ | 722 | ||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (10 | ) | (1 | ) | (26 | ) | 7 | (372 | ) | (191 | ) | 24 | — | (559 | ) | |||||||||||||
Included in OCI [3] | 6 | — | — | — | — | — | — | — | — | |||||||||||||||||||
Purchases | 7 | — | 1 | — | — | 44 | (25 | ) | — | 20 | ||||||||||||||||||
Settlements | — | (1 | ) | (7 | ) | — | (4 | ) | — | (9 | ) | — | (21 | ) | ||||||||||||||
Sales | (2 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Transfers into Level 3 [4] | — | — | — | — | — | — | (8 | ) | (20 | ) | (28 | ) | ||||||||||||||||
Transfers out of Level 3 [4] | (5 | ) | — | (11 | ) | 26 | 3 | — | 32 | 20 | 70 | |||||||||||||||||
Fair value as of December 31, 2013 | $ | 51 | $ | 2 | $ | 2 | $ | (24 | ) | $ | 146 | $ | 139 | $ | (61 | ) | $ | — | $ | 204 | ||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (9 | ) | $ | (1 | ) | $ | (15 | ) | $ | 2 | $ | (390 | ) | $ | (187 | ) | $ | (170 | ) | $ | — | $ | (761 | ) | |||
Assets | Limited Partnerships and Other Alternative Investments | Reinsurance Recoverable for U.S. GMWB | Separate | |||||||||||||||||||||||||
and Japan | Accounts | |||||||||||||||||||||||||||
GMWB, GMIB, | ||||||||||||||||||||||||||||
and GMAB [6] | ||||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 150 | $ | 1,081 | $ | 583 | ||||||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (5 | ) | (1,856 | ) | 23 | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | |||||||||||||||||||||||||
Purchases | 64 | — | 250 | |||||||||||||||||||||||||
Settlements | — | 310 | (2 | ) | ||||||||||||||||||||||||
Sales | (9 | ) | — | (88 | ) | |||||||||||||||||||||||
Transfers into Level 3 [4] | — | — | 45 | |||||||||||||||||||||||||
Transfers out of Level 3 [4] | (146 | ) | — | (74 | ) | |||||||||||||||||||||||
Fair value as of December 31, 2013 | $ | 54 | $ | (465 | ) | $ | 737 | |||||||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (5 | ) | $ | (1,856 | ) | $ | 21 | ||||||||||||||||||||
Other Policyholder Funds and Benefits Payable | ||||||||||||||||||||||||||||
Liabilities | Guaranteed | Equity Linked | Total Other | Consumer | ||||||||||||||||||||||||
Living | Notes | Policyholder Funds | Notes | |||||||||||||||||||||||||
Benefits [7] | and Benefits Payable | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | (3,119 | ) | $ | (8 | ) | $ | (3,127 | ) | $ | (2 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 2,653 | (10 | ) | 2,643 | — | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | — | ||||||||||||||||||||||||
Settlements [8] | (110 | ) | — | (110 | ) | — | ||||||||||||||||||||||
Fair value as of December 31, 2013 | $ | (576 | ) | $ | (18 | ) | $ | (594 | ) | $ | (2 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | 2,653 | $ | (10 | ) | $ | 2,643 | $ | — | |||||||||||||||||||
The tables below provide a fair value roll forward for the year ended December 31, 2012 for the financial instruments classified as Level 3. | ||||||||||||||||||||||||||||
Fixed Maturities, AFS | ||||||||||||||||||||||||||||
Assets | ABS | CDOs | CMBS | Corporate | Foreign | Municipal | RMBS | Total Fixed | Fixed | |||||||||||||||||||
govt./govt. | Maturities, | Maturities, | ||||||||||||||||||||||||||
agencies | AFS | FVO | ||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | 317 | $ | 328 | $ | 348 | $ | 1,497 | $ | 37 | $ | 382 | $ | 933 | $ | 3,842 | $ | 484 | ||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (2 | ) | (19 | ) | (41 | ) | 2 | — | (5 | ) | (68 | ) | (133 | ) | 106 | |||||||||||||
Included in OCI [3] | 45 | 134 | 89 | (38 | ) | 1 | 34 | 298 | 563 | — | ||||||||||||||||||
Purchases | 18 | — | 18 | 169 | 9 | 174 | 289 | 677 | 1 | |||||||||||||||||||
Settlements | (58 | ) | (36 | ) | (111 | ) | (98 | ) | (4 | ) | — | (125 | ) | (432 | ) | (1 | ) | |||||||||||
Sales | (34 | ) | (1 | ) | (109 | ) | (74 | ) | (11 | ) | (91 | ) | (173 | ) | (493 | ) | (391 | ) | ||||||||||
Transfers into Level 3 [4] | 12 | 317 | 422 | 538 | 2 | — | 2 | 1,293 | — | |||||||||||||||||||
Transfers out of Level 3 [4] | (60 | ) | — | (84 | ) | (656 | ) | — | (325 | ) | (23 | ) | (1,148 | ) | — | |||||||||||||
Fair value as of December 31, 2012 | $ | 238 | $ | 723 | $ | 532 | $ | 1,340 | $ | 34 | $ | 169 | $ | 1,133 | $ | 4,169 | $ | 199 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | (1 | ) | $ | (11 | ) | $ | (17 | ) | $ | (7 | ) | $ | — | $ | (5 | ) | $ | (11 | ) | $ | (52 | ) | $ | (7 | ) | ||
Freestanding Derivatives [5] | ||||||||||||||||||||||||||||
Assets (Liabilities) | Equity | Credit | Equity | Interest | U.S. | U.S. | Intl. | Total Free- | ||||||||||||||||||||
Securities, | Rate | GMWB | Macro | Program | Standing | |||||||||||||||||||||||
AFS | Hedging | Hedge | Hedging | Derivatives [5] | ||||||||||||||||||||||||
Program | ||||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | 56 | $ | (489 | ) | $ | 36 | $ | (91 | ) | $ | 883 | $ | 357 | $ | (35 | ) | $ | 661 | |||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 3 | 155 | (32 | ) | 2 | (431 | ) | (323 | ) | (83 | ) | (712 | ) | |||||||||||||||
Included in OCI [3] | (3 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Purchases | 11 | — | 57 | 1 | 56 | 252 | (60 | ) | 306 | |||||||||||||||||||
Settlements | — | 338 | (16 | ) | — | (12 | ) | — | 95 | 405 | ||||||||||||||||||
Sales | (12 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Transfers out of Level 3 [4] | — | — | — | 31 | 23 | — | 8 | 62 | ||||||||||||||||||||
Fair value as of December 31, 2012 | $ | 55 | $ | 4 | $ | 45 | $ | (57 | ) | $ | 519 | $ | 286 | $ | (75 | ) | $ | 722 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | 2 | $ | 126 | $ | (8 | ) | $ | (1 | ) | $ | (425 | ) | $ | (322 | ) | $ | (85 | ) | $ | (715 | ) | ||||||
Assets | Limited Partnerships and Other Alternative Investments | Reinsurance Recoverable for U.S. GMWB | Separate Accounts | |||||||||||||||||||||||||
and Japan | ||||||||||||||||||||||||||||
GMWB, GMIB, | ||||||||||||||||||||||||||||
and GMAB [6][9] | ||||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | — | $ | 3,073 | $ | 1,031 | ||||||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (11 | ) | (2,373 | ) | 37 | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | |||||||||||||||||||||||||
Purchases | 26 | — | 252 | |||||||||||||||||||||||||
Settlements | — | 381 | (1 | ) | ||||||||||||||||||||||||
Sales | — | — | (476 | ) | ||||||||||||||||||||||||
Transfers into Level 3 [4] | 135 | — | 443 | |||||||||||||||||||||||||
Transfers out of Level 3 [4] | — | — | (703 | ) | ||||||||||||||||||||||||
Fair value as of December 31, 2012 | $ | 150 | $ | 1,081 | $ | 583 | ||||||||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | (11 | ) | $ | (2,373 | ) | $ | 28 | ||||||||||||||||||||
Other Policyholder Funds and Benefits Payable [1] | ||||||||||||||||||||||||||||
Liabilities | Guaranteed | Equity Linked | Total Other | Other | Consumer | |||||||||||||||||||||||
Living | Notes | Policyholder Funds | Liabilities | Notes | ||||||||||||||||||||||||
Benefits [7][9] | and Benefits Payable | |||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | (5,776 | ) | $ | (9 | ) | $ | (5,785 | ) | $ | (9 | ) | $ | (4 | ) | |||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 2,920 | 1 | 2,921 | (34 | ) | 2 | ||||||||||||||||||||||
Included in OCI [3] | — | — | — | — | — | |||||||||||||||||||||||
Settlements [8] | (263 | ) | — | (263 | ) | 43 | — | |||||||||||||||||||||
Fair value as of December 31, 2012 | $ | (3,119 | ) | $ | (8 | ) | $ | (3,127 | ) | $ | — | $ | (2 | ) | ||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | 2,920 | $ | 1 | $ | 2,921 | $ | — | $ | 2 | ||||||||||||||||||
[1] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||||||||||||||||||||||||||
[2] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | |||||||||||||||||||||||||||
[3] | All amounts are before income taxes and amortization of DAC. | |||||||||||||||||||||||||||
[4] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||||||||||||||||||||||||||
[5] | Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Consolidated Balance Sheet in other investments and other liabilities. | |||||||||||||||||||||||||||
[6] | Includes fair value of reinsurance recoverables of approximately $495 and $900 as of December 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. | |||||||||||||||||||||||||||
[7] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). | |||||||||||||||||||||||||||
[8] | Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See Note 4 - Investments and Derivative Instruments of Notes to Consolidated Financial Statements for additional information. | |||||||||||||||||||||||||||
[9] | In 2012, ($231) and $264 were inappropriately presented as Included in OCI within the Reinsurance Recoverable for U.S. GMWB and Japan GMWB, GMIB and GMAB and Guaranteed Living Benefits, respectively. Amounts have been rescheduled to Included in Net Income. This change in presentation of this disclosure had no impact on the Company's net income or OCI. | |||||||||||||||||||||||||||
Fair Value Option | ||||||||||||||||||||||||||||
The Company holds fair value option investments that contain an embedded credit derivative with underlying credit risk primarily related to commercial real estate. Also included are foreign government securities for which the FVO was elected in order to align with the accounting for yen-based fixed annuity liabilities, which are adjusted for changes in spot rates through realized gains and losses. Similar to other fixed maturities, income earned from these securities is recorded in net investment income. Changes in the fair value of these securities are recorded in net realized capital gains and losses. | ||||||||||||||||||||||||||||
The Company also elected the fair value option for certain consolidated VIE investment funds. The Company elected the fair value option in order to report investments of consolidated investment companies at fair value with changes in the fair value of these securities recognized in net realized capital gains and losses, consistent with accounting requirement for investment companies. The investment funds primarily hold fixed income securities and the Company has management and control of the funds as well as a significant ownership interest. | ||||||||||||||||||||||||||||
The following table presents the changes in fair value of those assets and liabilities accounted for using the fair value option reported in net realized capital gains and losses in the Company’s Consolidated Statements of Operations. | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Fixed maturities, FVO | ||||||||||||||||||||||||||||
Corporate | $ | (12 | ) | $ | 9 | |||||||||||||||||||||||
CRE CDOs | 14 | 64 | ||||||||||||||||||||||||||
CMBS | — | (2 | ) | |||||||||||||||||||||||||
Foreign government | (112 | ) | (88 | ) | ||||||||||||||||||||||||
RMBS | — | 5 | ||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||
Credit-linked notes | — | (34 | ) | |||||||||||||||||||||||||
Total realized capital gains (losses) | $ | (110 | ) | $ | (46 | ) | ||||||||||||||||||||||
The following table presents the fair value of assets and liabilities accounted for using the fair value option included in the Company's Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Fixed maturities, FVO | ||||||||||||||||||||||||||||
ABS | $ | 3 | $ | — | ||||||||||||||||||||||||
Corporate | 84 | 108 | ||||||||||||||||||||||||||
CRE CDOs | 167 | 193 | ||||||||||||||||||||||||||
CMBS | 8 | 4 | ||||||||||||||||||||||||||
Foreign government | 494 | 699 | ||||||||||||||||||||||||||
Municipals | 1 | 1 | ||||||||||||||||||||||||||
RMBS | 9 | 3 | ||||||||||||||||||||||||||
U.S. government | 25 | 2 | ||||||||||||||||||||||||||
Total fixed maturities, FVO | $ | 791 | $ | 1,010 | ||||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value | ||||||||||||||||||||||||||||
The following presents carrying amounts and fair values of the Company's financial instruments not carried at fair value, and not included in the above fair value discussion as of December 31, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Policy loans | Level 3 | 1,416 | 1,476 | 1,951 | 2,112 | |||||||||||||||||||||||
Mortgage loans | Level 3 | 3,470 | 3,519 | 4,935 | 5,109 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable [1] | Level 3 | 8,955 | 9,153 | 9,318 | 9,668 | |||||||||||||||||||||||
Consumer notes [2] | Level 3 | 82 | 82 | 159 | 159 | |||||||||||||||||||||||
[1] | Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. | |||||||||||||||||||||||||||
[2] | Excludes amounts carried at fair value and included in disclosures above. | |||||||||||||||||||||||||||
The Company has not made any changes in its valuation methodologies for the following assets and liabilities during the years ended December 31, 2013 or December 31, 2012. | ||||||||||||||||||||||||||||
• | Fair value for policy loans and consumer notes were estimated using discounted cash flow calculations using current interest rates adjusted for estimated loan duration. | |||||||||||||||||||||||||||
• | Fair values for mortgage loans were estimated using discounted cash flow calculations based on current lending rates for similar type loans. Current lending rates reflect changes in credit spreads and the remaining terms of the loans. | |||||||||||||||||||||||||||
• | Other policyholder funds and benefits payable, not carried at fair value, is determined by estimating future cash flows, discounted at the current market rate. |
Investments_and_Derivative_Ins
Investments and Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Investments and Derivative Instruments [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||
Investments and Derivative Instruments | ' | |||||||||||||||||||||||||||||||||||||||
Investments and Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
Net Investment Income | ||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Fixed maturities [1] | $ | 1,253 | $ | 1,953 | $ | 1,927 | ||||||||||||||||||||||||||||||||||
Equity securities, AFS | 8 | 11 | 10 | |||||||||||||||||||||||||||||||||||||
Mortgage loans | 172 | 248 | 206 | |||||||||||||||||||||||||||||||||||||
Policy loans | 82 | 116 | 128 | |||||||||||||||||||||||||||||||||||||
Limited partnerships and other alternative investments | 119 | 85 | 143 | |||||||||||||||||||||||||||||||||||||
Other investments [2] | 123 | 199 | 231 | |||||||||||||||||||||||||||||||||||||
Investment expenses | (76 | ) | (77 | ) | (73 | ) | ||||||||||||||||||||||||||||||||||
Total securities AFS and other | 1,681 | 2,535 | 2,572 | |||||||||||||||||||||||||||||||||||||
Equity securities, trading | 2 | 1 | — | |||||||||||||||||||||||||||||||||||||
Total net investment income | $ | 1,683 | $ | 2,536 | $ | 2,572 | ||||||||||||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||||||||||||||||||
[2] | Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. | |||||||||||||||||||||||||||||||||||||||
The net unrealized gain on equity securities, trading, included in net investment income during the years ended December 31, 2013, 2012 and 2011, was $1, $0 and $1, respectively. These amounts were not included in net unrealized gains (losses) in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||||||||||
Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Gross gains on sales [1] | $ | 2,196 | $ | 478 | $ | 400 | ||||||||||||||||||||||||||||||||||
Gross losses on sales | (700 | ) | (278 | ) | (200 | ) | ||||||||||||||||||||||||||||||||||
Net OTTI losses recognized in earnings [2] | (45 | ) | (255 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||
Valuation allowances on mortgage loans | (1 | ) | 4 | 25 | ||||||||||||||||||||||||||||||||||||
Japanese fixed annuity contract hedges, net [3] | 6 | (36 | ) | 3 | ||||||||||||||||||||||||||||||||||||
Periodic net coupon settlements on credit derivatives/Japan | (3 | ) | (8 | ) | — | |||||||||||||||||||||||||||||||||||
Results of variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||
U.S. GMWB derivatives, net | 262 | 519 | (397 | ) | ||||||||||||||||||||||||||||||||||||
U.S. macro hedge program | (234 | ) | (340 | ) | (216 | ) | ||||||||||||||||||||||||||||||||||
Total U.S. program | 28 | 179 | (613 | ) | ||||||||||||||||||||||||||||||||||||
International Program [4] | (963 | ) | (1,145 | ) | 639 | |||||||||||||||||||||||||||||||||||
Total results of variable annuity hedge program | (935 | ) | (966 | ) | 26 | |||||||||||||||||||||||||||||||||||
GMIB/GMAB/GMWB reinsurance | 1,107 | 1,233 | (326 | ) | ||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | (1,405 | ) | (1,901 | ) | 375 | |||||||||||||||||||||||||||||||||||
Other, net [5] | 106 | 248 | (255 | ) | ||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses), before-tax | $ | 326 | $ | (1,481 | ) | $ | (77 | ) | ||||||||||||||||||||||||||||||||
[1] | Includes $1.5 billion of gross gains relating to the sales of the Retirement Plans and Individual Life businesses in the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||||||||
[2] | Includes $173 of intent-to-sell impairments relating to the Retirement Plans and Individual Life businesses sold for the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||||||||
[3] | Includes for the years ended December 31, 2013, 2012 and 2011, transactional foreign currency re-valuation related to the Japan fixed annuity product of $324, $245, and $(129) , respectively, as well as the change in value related to the derivative hedging instruments and the Japan government FVO securities of $(318), $(281), and $132, respectively. | |||||||||||||||||||||||||||||||||||||||
[4] | Includes $(55), $(66), and $0 of transactional foreign currency re-valuation for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||
[5] | For the years ended December 31, 2013, 2012 and 2011, other, net gains and losses includes $295, $205 and $(119), respectively, of transactional foreign currency re-valuation primarily associated with the internal reinsurance of the Japan variable annuity business, of which a portion is offset within realized gains and losses by the change in value of the associated hedging derivatives. Also includes $71 and $110 of gains relating to Retirement Plans and Individual Life businesses sold for the years ended December 31, 2013 and 2012, respectively, as well as changes in value of non-qualifying derivatives. | |||||||||||||||||||||||||||||||||||||||
Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Gross gains and losses on sales and impairments previously reported as unrealized gains in AOCI were $1.4 billion, $(55) and $75 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||||||
Sales of Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||||||||||||||
Sale proceeds | $ | 19,190 | $ | 23,555 | $ | 19,861 | ||||||||||||||||||||||||||||||||||
Gross gains [1] | 1,867 | 521 | 354 | |||||||||||||||||||||||||||||||||||||
Gross losses | (421 | ) | (270 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||
Equity securities, AFS | ||||||||||||||||||||||||||||||||||||||||
Sale proceeds | $ | 81 | $ | 133 | $ | 147 | ||||||||||||||||||||||||||||||||||
Gross gains | 254 | 15 | 50 | |||||||||||||||||||||||||||||||||||||
Gross losses | (263 | ) | (5 | ) | — | |||||||||||||||||||||||||||||||||||
[1] Includes $1.5 billion of gross gains relating to the sales of the Retirement Plans and Individual Life businesses for the year ended December 31, 2013. | ||||||||||||||||||||||||||||||||||||||||
Sales of AFS securities in 2013 were primarily as a result of management of duration and liquidity as well as progress towards sector allocation objectives. | ||||||||||||||||||||||||||||||||||||||||
Other-Than-Temporary Impairment Losses | ||||||||||||||||||||||||||||||||||||||||
The following table presents a roll-forward of the Company’s cumulative credit impairments on debt securities held as of December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (813 | ) | $ | (1,319 | ) | $ | (1,598 | ) | |||||||||||||||||||||||||||||||
Additions for credit impairments recognized on [1]: | ||||||||||||||||||||||||||||||||||||||||
Securities not previously impaired | (14 | ) | (27 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||
Securities previously impaired | (4 | ) | (15 | ) | (47 | ) | ||||||||||||||||||||||||||||||||||
Reductions for credit impairments previously recognized on: | ||||||||||||||||||||||||||||||||||||||||
Securities that matured or were sold during the period | 403 | 543 | 358 | |||||||||||||||||||||||||||||||||||||
Securities due to an increase in expected cash flows | 17 | 5 | 9 | |||||||||||||||||||||||||||||||||||||
Securities the Company made the decision to sell or more likely than not will be required to sell | 1 | — | $ | — | ||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (410 | ) | $ | (813 | ) | $ | (1,319 | ) | |||||||||||||||||||||||||||||||
[1] | These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||||||||||||||||||||||||||
The following table presents the Company’s AFS securities by type. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-Credit OTTI [1] | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-Credit OTTI [1] | |||||||||||||||||||||||||||||||
ABS | $ | 1,172 | $ | 13 | $ | (56 | ) | $ | 1,129 | $ | (2 | ) | $ | 1,807 | $ | 38 | $ | (172 | ) | $ | 1,673 | $ | (4 | ) | ||||||||||||||||
CDOs [2] | 1,392 | 98 | (41 | ) | 1,448 | — | 2,236 | 61 | (117 | ) | 2,160 | (4 | ) | |||||||||||||||||||||||||||
CMBS | 2,275 | 106 | (34 | ) | 2,347 | (3 | ) | 3,757 | 262 | (107 | ) | 3,912 | (7 | ) | ||||||||||||||||||||||||||
Corporate | 15,913 | 1,196 | (192 | ) | 16,917 | (6 | ) | 27,774 | 3,426 | (221 | ) | 30,979 | (19 | ) | ||||||||||||||||||||||||||
Foreign govt./govt. agencies | 1,267 | 27 | (117 | ) | 1,177 | — | 1,369 | 120 | (29 | ) | 1,460 | — | ||||||||||||||||||||||||||||
Municipal | 988 | 26 | (49 | ) | 965 | — | 1,808 | 204 | (14 | ) | 1,998 | — | ||||||||||||||||||||||||||||
RMBS | 2,419 | 60 | (48 | ) | 2,431 | (3 | ) | 4,590 | 196 | (115 | ) | 4,671 | (28 | ) | ||||||||||||||||||||||||||
U.S. Treasuries | 1,762 | 1 | (14 | ) | 1,749 | — | 2,412 | 151 | (12 | ) | 2,551 | — | ||||||||||||||||||||||||||||
Total fixed maturities, AFS | 27,188 | 1,527 | (551 | ) | 28,163 | (14 | ) | 45,753 | 4,458 | (787 | ) | 49,404 | (62 | ) | ||||||||||||||||||||||||||
Equity securities, AFS | 362 | 35 | (25 | ) | 372 | — | 408 | 28 | (36 | ) | 400 | — | ||||||||||||||||||||||||||||
Total AFS securities [3] | $ | 27,550 | $ | 1,562 | $ | (576 | ) | $ | 28,535 | $ | (14 | ) | $ | 46,161 | $ | 4,486 | $ | (823 | ) | $ | 49,804 | $ | (62 | ) | ||||||||||||||||
[1] | Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||
[2] | Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). | |||||||||||||||||||||||||||||||||||||||
[3] | As of December 31, 2012 Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||||||||||||||||||||||||||||||||||||||
The following table presents the Company’s fixed maturities, AFS, by contractual maturity year. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Contractual Maturity | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||
One year or less | $ | 1,615 | $ | 1,639 | ||||||||||||||||||||||||||||||||||||
Over one year through five years | 5,328 | 5,535 | ||||||||||||||||||||||||||||||||||||||
Over five years through ten years | 4,319 | 4,481 | ||||||||||||||||||||||||||||||||||||||
Over ten years | 8,668 | 9,153 | ||||||||||||||||||||||||||||||||||||||
Subtotal | 19,930 | 20,808 | ||||||||||||||||||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 7,258 | 7,355 | ||||||||||||||||||||||||||||||||||||||
Total fixed maturities, AFS | $ | 27,188 | $ | 28,163 | ||||||||||||||||||||||||||||||||||||
Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment spreads (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity. | ||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||||||||||||||||||||
The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. | ||||||||||||||||||||||||||||||||||||||||
The Company's only exposure to any credit concentration risk of a single issuer greater than 10% of the Company’s stockholders’ equity other than U.S. government and certain U.S. government agencies, was the Government of Japan which represents $853 or 10% of stockholders' equity, and 2% of total invested assets as of December 31, 2013. As of December 31, 2012, the Company was not exposed to any concentration of credit risk of a single issuer greater than 10% of the Company’s stockholders’ equity other than U.S. government and certain U.S. government agencies. As of December 31, 2013, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the Government of Japan, JPMorgan Chase & Co. and Goldman Sachs Group Inc. which each comprised less than 3% of total invested assets. As of December 31, 2012, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the Government of Japan, National Grid PLC and Berkshire Hathaway Inc. which each comprised less than 2% of total invested assets. | ||||||||||||||||||||||||||||||||||||||||
The Company’s three largest exposures by sector as of December 31, 2013 were utilities, financial services, and commercial real estate which comprised approximately 9%, 8% and 7%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2012 were utilities, financial services, and consumer non-cyclical which comprised approximately 10%, 8% and 8%, respectively, of total invested assets. | ||||||||||||||||||||||||||||||||||||||||
Security Unrealized Loss Aging | ||||||||||||||||||||||||||||||||||||||||
The following tables present the Company’s unrealized loss aging for AFS securities by type and length of time the security was in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
ABS | $ | 288 | $ | 286 | $ | (2 | ) | $ | 418 | $ | 364 | $ | (54 | ) | $ | 706 | $ | 650 | $ | (56 | ) | |||||||||||||||||||
CDOs [1] | 64 | 63 | (1 | ) | 1,185 | 1,144 | (40 | ) | 1,249 | 1,207 | (41 | ) | ||||||||||||||||||||||||||||
CMBS | 437 | 423 | (14 | ) | 392 | 372 | (20 | ) | 829 | 795 | (34 | ) | ||||||||||||||||||||||||||||
Corporate | 2,449 | 2,360 | (89 | ) | 799 | 696 | (103 | ) | 3,248 | 3,056 | (192 | ) | ||||||||||||||||||||||||||||
Foreign govt./govt. agencies | 542 | 501 | (41 | ) | 303 | 227 | (76 | ) | 845 | 728 | (117 | ) | ||||||||||||||||||||||||||||
Municipal | 508 | 475 | (33 | ) | 99 | 83 | (16 | ) | 607 | 558 | (49 | ) | ||||||||||||||||||||||||||||
RMBS | 922 | 909 | (13 | ) | 475 | 440 | (35 | ) | 1,397 | 1,349 | (48 | ) | ||||||||||||||||||||||||||||
U.S. Treasuries | 1,456 | 1,442 | (14 | ) | — | — | — | 1,456 | 1,442 | (14 | ) | |||||||||||||||||||||||||||||
Total fixed maturities, AFS | 6,666 | 6,459 | (207 | ) | 3,671 | 3,326 | (344 | ) | 10,337 | 9,785 | (551 | ) | ||||||||||||||||||||||||||||
Equity securities, AFS | 77 | 73 | (4 | ) | 135 | 114 | (21 | ) | 212 | 187 | (25 | ) | ||||||||||||||||||||||||||||
Total securities in an unrealized loss position | $ | 6,743 | $ | 6,532 | $ | (211 | ) | $ | 3,806 | $ | 3,440 | $ | (365 | ) | $ | 10,549 | $ | 9,972 | $ | (576 | ) | |||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||
ABS | $ | 77 | $ | 76 | $ | (1 | ) | $ | 787 | $ | 616 | $ | (171 | ) | $ | 864 | $ | 692 | $ | (172 | ) | |||||||||||||||||||
CDOs [1] | 5 | 5 | — | 1,640 | 1,515 | (117 | ) | 1,645 | 1,520 | (117 | ) | |||||||||||||||||||||||||||||
CMBS | 192 | 179 | (13 | ) | 795 | 701 | (94 | ) | 987 | 880 | (107 | ) | ||||||||||||||||||||||||||||
Corporate [1] | 614 | 578 | (36 | ) | 1,339 | 1,154 | (185 | ) | 1,953 | 1,732 | (221 | ) | ||||||||||||||||||||||||||||
Foreign govt./govt. agencies | 318 | 290 | (28 | ) | 7 | 6 | (1 | ) | 325 | 296 | (29 | ) | ||||||||||||||||||||||||||||
Municipal | 65 | 62 | (3 | ) | 98 | 87 | (11 | ) | 163 | 149 | (14 | ) | ||||||||||||||||||||||||||||
RMBS | 322 | 321 | (1 | ) | 750 | 636 | (114 | ) | 1,072 | 957 | (115 | ) | ||||||||||||||||||||||||||||
U.S. Treasuries | 384 | 372 | (12 | ) | — | — | — | 384 | 372 | (12 | ) | |||||||||||||||||||||||||||||
Total fixed maturities, AFS | 1,977 | 1,883 | (94 | ) | 5,416 | 4,715 | (693 | ) | 7,393 | 6,598 | (787 | ) | ||||||||||||||||||||||||||||
Equity securities, AFS | 9 | 9 | — | 172 | 136 | (36 | ) | 181 | 145 | (36 | ) | |||||||||||||||||||||||||||||
Total securities in an unrealized loss position | $ | 1,986 | $ | 1,892 | $ | (94 | ) | $ | 5,588 | $ | 4,851 | $ | (729 | ) | $ | 7,574 | $ | 6,743 | $ | (823 | ) | |||||||||||||||||||
[1] | Unrealized losses exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2013, AFS securities in an unrealized loss position, comprised of 1,007 securities, primarily related to corporate securities and foreign government and government agencies, which are depressed due to an increase in interest rates since the securities were purchased and/or declines in the value of the currency in which the assets are denominated. As of December 31, 2013, 89% of these securities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during 2013 was primarily attributable to realized capital losses as a result of portfolio management activity, partially offset by an increase in interest rates. | ||||||||||||||||||||||||||||||||||||||||
Most of the securities depressed for twelve months or more relate to certain floating rate corporate securities with greater than 10 years to maturity concentrated in the financial services sector, foreign government and government agencies, as well as structured securities with exposure to commercial and residential real estate. Although credit spreads have tightened during 2013, current market spreads continue to be wider than spreads at the securities' respective purchase dates for structured securities with exposure to commercial and residential real estate largely due to the economic and market uncertainties regarding future performance of certain commercial and residential real estate backed securities. In addition, the majority of securities have a floating-rate coupon referenced to a market index where rates have declined substantially. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined above. | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Amortized Cost [1] | Valuation Allowance | Carrying Value | Amortized Cost [1] | Valuation Allowance | Carrying Value | |||||||||||||||||||||||||||||||||||
Total commercial mortgage loans [2] | $ | 3,482 | $ | (12 | ) | $ | 3,470 | $ | 4,949 | $ | (14 | ) | $ | 4,935 | ||||||||||||||||||||||||||
[1] | Amortized cost represents carrying value prior to valuation allowances, if any. | |||||||||||||||||||||||||||||||||||||||
[2] | As of December 31, 2012 includes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the carrying value of mortgage loans associated with the valuation allowance was $86 and $189, respectively. Included in the table above are mortgage loans held-for-sale with a carrying value and valuation allowance of $53 and $3, respectively, as of December 31, 2013 and $47 and $3, respectively, as of December 31, 2012. The carrying value of these loans is included in mortgage loans in the Company’s Consolidated Balance Sheets. As of December 31, 2013, loans within the Company’s mortgage loan portfolio that have had extensions or restructurings other than what is allowable under the original terms of the contract are immaterial. | ||||||||||||||||||||||||||||||||||||||||
The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial. | ||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Balance as of January 1 | $ | (14 | ) | $ | (23 | ) | $ | (62 | ) | |||||||||||||||||||||||||||||||
(Additions)/Reversals | (2 | ) | 4 | 25 | ||||||||||||||||||||||||||||||||||||
Deductions | 4 | 5 | 14 | |||||||||||||||||||||||||||||||||||||
Balance as of December 31 | $ | (12 | ) | $ | (14 | ) | $ | (23 | ) | |||||||||||||||||||||||||||||||
The weighted-average LTV ratio of the Company’s commercial mortgage loan portfolio was 57% as of December 31, 2013, while the weighted-average LTV ratio at origination of these loans was 63%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan values are updated no less than annually through property level reviews of the portfolio. Factors considered in the property valuation include, but are not limited to, actual and expected property cash flows, geographic market data and capitalization rates. DSCRs compare a property’s net operating income to the borrower’s principal and interest payments. The weighted average DSCR of the Company’s commercial mortgage loan portfolio was 2.23x as of December 31, 2013. As of December 31, 2013, the Company held no delinquent commercial mortgage loans past due by 90 days or more. The Company held only one delinquent commercial mortgage loan past due by 90 days or more as of December 31, 2012. The carrying value and valuation allowance of this loan totaled $32 and $0, respectively, and was not accruing income. | ||||||||||||||||||||||||||||||||||||||||
The following table presents the carrying value of the Company’s commercial mortgage loans by LTV and DSCR. | ||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage Loans Credit Quality | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Loan-to-value | Carrying Value | Avg. Debt-Service Coverage Ratio | Carrying Value | Avg. Debt-Service Coverage Ratio | ||||||||||||||||||||||||||||||||||||
Greater than 80% | $ | 35 | 1.15x | $ | 137 | 0.89x | ||||||||||||||||||||||||||||||||||
65% - 80% | 777 | 1.94x | 1,717 | 2.27x | ||||||||||||||||||||||||||||||||||||
Less than 65% | 2,658 | 2.34x | 3,081 | 2.44x | ||||||||||||||||||||||||||||||||||||
Total commercial mortgage loans | $ | 3,470 | 2.23x | $ | 4,935 | 2.34x | ||||||||||||||||||||||||||||||||||
The following tables present the carrying value of the Company’s mortgage loans by region and property type. | ||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Region | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||
East North Central | $ | 79 | 2.30% | $ | 97 | 2.00% | ||||||||||||||||||||||||||||||||||
Middle Atlantic | 255 | 7.30% | 370 | 7.50% | ||||||||||||||||||||||||||||||||||||
Mountain | 40 | 1.20% | 62 | 1.30% | ||||||||||||||||||||||||||||||||||||
New England | 163 | 4.70% | 231 | 4.70% | ||||||||||||||||||||||||||||||||||||
Pacific | 1,019 | 29.40% | 1,504 | 30.50% | ||||||||||||||||||||||||||||||||||||
South Atlantic | 548 | 15.80% | 1,012 | 20.50% | ||||||||||||||||||||||||||||||||||||
West North Central | 17 | 0.50% | 16 | 0.30% | ||||||||||||||||||||||||||||||||||||
West South Central | 144 | 4.10% | 234 | 4.70% | ||||||||||||||||||||||||||||||||||||
Other [1] | 1,205 | 34.70% | 1,409 | 28.50% | ||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 3,470 | 100% | $ | 4,935 | 100% | ||||||||||||||||||||||||||||||||||
[1] | Primarily represents loans collateralized by multiple properties in various regions. | |||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Property Type | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | 93 | 2.7 | % | $ | 109 | 2.2 | % | ||||||||||||||||||||||||||||||||
Industrial | 1,182 | 34.1 | % | 1,519 | 30.8 | % | ||||||||||||||||||||||||||||||||||
Lodging | 27 | 0.8 | % | 81 | 1.6 | % | ||||||||||||||||||||||||||||||||||
Multifamily | 576 | 16.6 | % | 869 | 17.6 | % | ||||||||||||||||||||||||||||||||||
Office | 723 | 20.8 | % | 1,120 | 22.7 | % | ||||||||||||||||||||||||||||||||||
Retail | 745 | 21.5 | % | 1,047 | 21.2 | % | ||||||||||||||||||||||||||||||||||
Other | 124 | 3.5 | % | 190 | 3.9 | % | ||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 3,470 | 100 | % | $ | 4,935 | 100 | % | ||||||||||||||||||||||||||||||||
Variable Interest Entities | ||||||||||||||||||||||||||||||||||||||||
The Company is involved with various special purpose entities and other entities that are deemed to be VIEs primarily as a collateral or investment manager and as an investor through normal investment activities, as well as a means of accessing capital through a contingent capital facility. For further information on the facility, see Note 10 - Debt of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||
A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest or lacks sufficient funds to finance its own activities without financial support provided by other entities. | ||||||||||||||||||||||||||||||||||||||||
The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||
Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The following table presents the carrying value of assets and liabilities, and the maximum exposure to loss relating to the VIEs for which the Company is the primary beneficiary. Creditors have no recourse against the Company in the event of default by these VIEs nor does the Company have any implied or unfunded commitments to these VIEs. The Company’s financial or other support provided to these VIEs is limited to its collateral or investment management services and original investment. | ||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||
Total Assets | Total Liabilities [1] | Maximum Exposure to Loss [2] | Total Assets | Total Liabilities [1] | Maximum Exposure to Loss [2] | |||||||||||||||||||||||||||||||||||
CDOs [3] | $ | 12 | $ | 13 | $ | — | $ | 89 | $ | 88 | $ | 7 | ||||||||||||||||||||||||||||
Investment funds [4] | 134 | 20 | 119 | 132 | 20 | 110 | ||||||||||||||||||||||||||||||||||
Limited partnerships | 4 | 2 | 2 | 6 | 3 | 3 | ||||||||||||||||||||||||||||||||||
Total | $ | 150 | $ | 35 | $ | 121 | $ | 227 | $ | 111 | $ | 120 | ||||||||||||||||||||||||||||
[1] | Included in other liabilities in the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||
[2] | The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment. | |||||||||||||||||||||||||||||||||||||||
[3] | Total assets included in fixed maturities, AFS in the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||
[4] | Total assets included in fixed maturities, FVO, short-term investments, and equity, AFS in the Company's Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||
CDOs represent structured investment vehicles for which the Company has a controlling financial interest as it provides collateral management services, earns a fee for those services and also holds investments in the securities issued by these vehicles. Investment funds represents wholly-owned fixed income funds for which the Company has exclusive management and control including management of investment securities which is the activity that most significantly impacts its economic performance. Limited partnerships represent one hedge fund for which the Company holds a majority interest in the fund as an investment. | ||||||||||||||||||||||||||||||||||||||||
Non-Consolidated VIEs | ||||||||||||||||||||||||||||||||||||||||
The Company does not hold any investments issued by VIEs for which the Company is not the primary beneficiary as of December 31, 2013 and 2012. In addition, the Company, through normal investment activities, makes passive investments in structured securities issued by VIEs for which the Company is not the manager which are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, FVO, in the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment. | ||||||||||||||||||||||||||||||||||||||||
Repurchase and Dollar Roll Agreements and Other Collateral Transactions | ||||||||||||||||||||||||||||||||||||||||
The Company enters into repurchase agreements and dollar roll transactions to manage liquidity or to earn incremental spread income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. A dollar roll is a type of repurchase agreement where a mortgage backed security is sold with an agreement to repurchase substantially the same security at a specified time in the future. These transactions are generally short-term in nature, and therefore, the carrying amounts of these instruments approximate fair value. | ||||||||||||||||||||||||||||||||||||||||
As part of repurchase agreements and dollar roll transactions, the Company transfers collateral of U.S. government and government agency securities and receives cash. For the repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements contain contractual provisions that require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities. Repurchase agreements include master netting provisions that provide the counterparties the right to set off claims and apply securities held by them in respect of their obligations in the event of a default. The Company accounts for the repurchase agreements and dollar roll transactions as collateralized borrowings. The securities transferred under repurchase agreements and dollar roll transactions are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013, the Company has no outstanding repurchase agreements or dollar roll transactions. As of December 31, 2012, the Company reported financial collateral pledged relating to repurchase agreements of $923 in fixed maturities, AFS on the Consolidated Balance sheets. The Company reported a corresponding obligation to repurchase these securities of $923 in other liabilities on the Consolidated Balance sheets. With respect to dollar roll transactions, the Company reported financial collateral pledged with a fair value of $692 in fixed maturities, AFS with a corresponding obligation to repurchase $692 reported in other liabilities, as of December 31, 2012. | ||||||||||||||||||||||||||||||||||||||||
The Company is required by law to deposit securities with government agencies in states where it conducts business. As of December 31, 2013 and 2012 the fair value of securities on deposit was approximately $13 and $14, respectively. | ||||||||||||||||||||||||||||||||||||||||
Refer to Derivative Collateral Arrangements section of this note for disclosure of collateral in support of derivative transactions. | ||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | ||||||||||||||||||||||||||||||||||||||||
The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, mortgage and real estate funds, mezzanine debt funds, and private equity and other funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The Company’s maximum exposure to loss as of December 31, 2013 is limited to the total carrying value of $0.9 billion. In addition, the Company has outstanding commitments totaling approximately $223, to fund limited partnership and other alternative investments as of December 31, 2013. The Company’s investments in limited partnerships are generally of a passive nature in that the Company does not take an active role in the management of the limited partnerships. In 2013, aggregate investment income (losses) from limited partnerships and other alternative investments exceeded 10% of the Company’s pre-tax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for the Company’s limited partnership investments. This aggregated summarized financial data does not represent the Company’s proportionate share of limited partnership assets or earnings. Aggregate total assets of the limited partnerships in which the Company invested totaled $77.2 billion and $75.3 billion as of December 31, 2013 and 2012, respectively. Aggregate total liabilities of the limited partnerships in which the Company invested totaled $10.7 billion and $9.6 billion as of December 31, 2013 and 2012, respectively. Aggregate net investment income (loss) of the limited partnerships in which the Company invested totaled $1.8 billion, $0.9 billion and $1.2 billion for the periods ended December 31, 2013, 2012 and 2011, respectively. Aggregate net income (loss) of the limited partnerships in which the Company invested totaled $7.1 billion, $6.5 billion, and $8.1 billion for the periods ended December 31, 2013, 2012 and 2011, respectively. As of, and for the period ended, December 31, 2013, the aggregated summarized financial data reflects the latest available financial information. | ||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||
The Company utilizes a variety of OTC, OTC-cleared and exchange traded derivative instruments as a part of its overall risk management strategy as well as to enter into replication transactions. Derivative instruments are used to manage risk associated with interest rate, equity market, credit spread, issuer default, price, and currency exchange rate risk or volatility. Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that would be permissible investments under the Company’s investment policies. The Company also purchases and has previously issued financial instruments and products that either are accounted for as free-standing derivatives, such as certain reinsurance contracts, or may contain features that are deemed to be embedded derivative instruments, such as the GMWB rider included with certain variable annuity products. | ||||||||||||||||||||||||||||||||||||||||
Strategies that qualify for hedge accounting | ||||||||||||||||||||||||||||||||||||||||
Certain derivatives the Company enters into satisfy the hedge accounting requirements as outlined in Note 1 of these financial statements. Typically, these hedge relationships include interest rate and foreign currency swaps where the terms or expected cash flows of the securities closely match the terms of the swap. The swaps are typically used to manage interest rate duration of certain fixed maturity securities, or liability contracts, or convert securities, or liabilities, denominated in a foreign currency to US dollars. The hedge strategies by hedge accounting designation include: | ||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps are predominantly used to manage portfolio duration and better match cash receipts from assets with cash disbursements required to fund liabilities. These derivatives convert interest receipts on floating-rate fixed maturity securities or interest payments on floating-rate guaranteed investment contracts to fixed rates. The Company also enters into forward starting swap agreements primarily to hedge interest rate risk inherent in the assumptions used to price certain liabilities. | ||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps are used to convert foreign currency-denominated cash flows related to certain investment receipts and liability payments to U.S. dollars in order to reduce cash flow fluctuations due to changes in currency rates. | ||||||||||||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps are used to hedge the changes in fair value of certain fixed rate liabilities and fixed maturity securities due to fluctuations in interest rates. Foreign currency swaps are used to hedge the changes in fair value of certain foreign currency-denominated fixed rate liabilities due to changes in foreign currency rates by swapping the fixed foreign payments to floating rate U.S. dollar denominated payments. | ||||||||||||||||||||||||||||||||||||||||
Non-qualifying strategies | ||||||||||||||||||||||||||||||||||||||||
Derivative relationships that do not qualify for hedge accounting or “non-qualifying strategies” primarily include the hedge programs for our U.S. and international variable annuity products as well as the hedging and replication strategies through the use of credit default swaps. In addition, hedges of interest rate and foreign currency risk of certain fixed maturities and liabilities do not qualify for hedge accounting. These non-qualifying strategies include: | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps, swaptions, caps, floors, and futures | ||||||||||||||||||||||||||||||||||||||||
The Company may use interest rate swaps, swaptions, caps, floors and futures to manage duration between assets and liabilities in certain investment portfolios. In addition, the Company enters into interest rate swaps to terminate existing swaps, thereby offsetting the changes in value of the original swap. As of December 31, 2013 and 2012 the notional amount of interest rate swaps in offsetting relationships was $4.5 billion and $5.1 billion, respectively. | ||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps and forwards | ||||||||||||||||||||||||||||||||||||||||
The Company enters into foreign currency swaps and forwards to convert the foreign currency exposures of certain foreign currency-denominated fixed maturity investments to U.S. dollars. | ||||||||||||||||||||||||||||||||||||||||
Japan 3Win foreign currency swaps | ||||||||||||||||||||||||||||||||||||||||
The Company formerly offered certain variable annuity products with a guaranteed minimum income benefit ("GMIB") rider through a wholly-owned Japanese subsidiary. The GMIB rider is reinsured to a wholly-owned U.S. subsidiary which invests in U.S. dollar denominated assets to support the liability. The U.S. subsidiary entered into pay U.S. dollar, receive yen swap contracts to hedge the currency and yen interest rate exposure between the U.S. dollar denominated assets and the yen denominated fixed liability reinsurance payments. | ||||||||||||||||||||||||||||||||||||||||
Japanese fixed annuity hedging instruments | ||||||||||||||||||||||||||||||||||||||||
The Company formerly offered a yen denominated fixed annuity product through a wholly-owned Japanese subsidiary and reinsured to a wholly-owned U.S. subsidiary. The U.S. subsidiary invests in U.S. dollar denominated securities to support the yen denominated fixed liability payments and entered into currency rate swaps to hedge the foreign currency exchange rate and yen interest rate exposures that exist as a result of U.S. dollar assets backing the yen denominated liability. | ||||||||||||||||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||||||
Credit default swaps are used to purchase credit protection on an individual entity or referenced index to economically hedge against default risk and credit-related changes in value on fixed maturity securities. Credit default swaps are also used to assume credit risk related to an individual entity, referenced index, or asset pool, as a part of replication transactions. These contracts require the Company to pay or receive a periodic fee in exchange for compensation from the counterparty should the referenced security issuers experience a credit event, as defined in the contract. The Company is also exposed to credit risk related to credit derivatives embedded within certain fixed maturity securities. These securities are primarily comprised of structured securities that contain credit derivatives that reference a standard index of corporate securities. In addition, the Company enters into credit default swaps to terminate existing credit default swaps, thereby offsetting the changes in value of the original swap going forward. | ||||||||||||||||||||||||||||||||||||||||
Equity index swaps and options | ||||||||||||||||||||||||||||||||||||||||
The Company formerly offered certain equity indexed products, which may contain an embedded derivative that requires bifurcation. The Company has entered into equity index swaps and options to economically hedge the equity volatility risk associated with these embedded derivatives. The Company also enters into equity index options and futures with the purpose of hedging the impact of an adverse equity market environment on the investment portfolio. | ||||||||||||||||||||||||||||||||||||||||
U.S GMWB derivatives, net | ||||||||||||||||||||||||||||||||||||||||
The Company formerly offered certain variable annuity products with GMWB riders in the U.S. The GMWB product is a bifurcated embedded derivative (“U.S. GMWB product derivatives”) that has a notional value equal to the guaranteed remaining balance ("GRB"). The Company uses reinsurance contracts to transfer a portion of its risk of loss due to U.S GMWB. The reinsurance contracts covering U.S. GMWB (“U.S. GMWB reinsurance contracts”) are accounted for as free-standing derivatives with a notional amount equal to the GRB amount. | ||||||||||||||||||||||||||||||||||||||||
The Company utilizes derivatives (“ U.S. GMWB hedging derivatives”) as part of an actively managed program designed to hedge a portion of the capital market risk exposures of the un-reinsured GMWB due to changes in interest rates, equity market levels, and equity volatility. These derivatives include customized swaps, interest rate swaps and futures, and equity swaps, options, and futures, on certain indices including the S&P 500 index, EAFE index, and NASDAQ index. The following table represents notional and fair value for U.S. GMWB hedging instruments. | ||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||
Customized swaps | $ | 7,839 | $ | 7,787 | $ | 74 | $ | 238 | ||||||||||||||||||||||||||||||||
Equity swaps, options, and futures | 4,237 | 5,130 | 44 | 267 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps and futures | 6,615 | 5,705 | (77 | ) | 67 | |||||||||||||||||||||||||||||||||||
Total | $ | 18,691 | $ | 18,622 | $ | 41 | $ | 572 | ||||||||||||||||||||||||||||||||
U.S. macro hedge program | ||||||||||||||||||||||||||||||||||||||||
The Company utilizes equity options to partially hedge against a decline in the equity markets and the resulting statutory surplus and capital impact primarily arising from GMDB and GMWB obligations. The following table represents notional and fair value for the U.S. macro hedge program. | ||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||
Equity options and swaps | 9,934 | 7,442 | 139 | 286 | ||||||||||||||||||||||||||||||||||||
Total | $ | 9,934 | $ | 7,442 | $ | 139 | $ | 286 | ||||||||||||||||||||||||||||||||
International program | ||||||||||||||||||||||||||||||||||||||||
The Hartford formerly offered certain variable annuity products in Japan with GMWB or GMAB riders, which are bifurcated embedded derivatives (“International program product derivatives”). The GMWB provides the policyholder with a guaranteed remaining balance (“GRB”) which is generally equal to premiums less withdrawals. If the policyholder’s account value is reduced to a specified level through a combination of market declines and withdrawals but the GRB still has value, the Company is obligated to continue to make annuity payments to the policyholder until the GRB is exhausted. Certain contract provisions can increase the GRB at contractholder election or after the passage of time. The GMAB provides the policyholder with their initial deposit in a lump sum after a specified waiting period. The notional amount of the International program product derivatives are the foreign currency denominated GRBs converted to U.S. dollars at the current foreign spot exchange rate as of the reporting period date. | ||||||||||||||||||||||||||||||||||||||||
The Company has reinsured certain of these GMWB and GMAB riders from an affiliate. See Note 13 - Transactions with Affiliates for further discussion. | ||||||||||||||||||||||||||||||||||||||||
The Company enters into derivative contracts (“International program hedging instruments”) to hedge a portion of the capital market risk exposures associated with the guaranteed benefits associated with the international variable annuity contracts. During 2013, the Company expanded its hedging program to substantially reduce equity and foreign currency exchange risk. The program is primarily focused on the risks that have been reinsured to the Company’s U.S. legal entities although certain hedges, predominantly options, are also held directly in HLIKK . The hedging derivatives collectively held in these entities are comprised of equity futures, options, swaps and currency forwards and options to hedge against a decline in the debt and equity markets or changes in foreign currency exchange rates and the resulting statutory surplus and capital impact primarily arising from GMDB, GMIB and GMWB obligations issued in Japan. | ||||||||||||||||||||||||||||||||||||||||
The Company also enters into foreign currency denominated interest rate swaps and swaptions to hedge the interest rate exposure related to the potential annuitization of certain benefit obligations. | ||||||||||||||||||||||||||||||||||||||||
The following table represents notional and fair value for the international program hedging instruments. | ||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||
Credit derivatives | 350 | 350 | 5 | 28 | ||||||||||||||||||||||||||||||||||||
Currency forwards [1] | 8,778 | 9,327 | 24 | (87 | ) | |||||||||||||||||||||||||||||||||||
Currency options | 8,408 | 9,710 | (58 | ) | (49 | ) | ||||||||||||||||||||||||||||||||||
Equity futures | 999 | 1,206 | — | — | ||||||||||||||||||||||||||||||||||||
Equity options | 1,022 | 2,621 | (63 | ) | (105 | ) | ||||||||||||||||||||||||||||||||||
Equity swaps | 3,830 | 2,683 | (95 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||
Customized swaps | — | 899 | — | (11 | ) | |||||||||||||||||||||||||||||||||||
Interest rate futures | 566 | 634 | — | — | ||||||||||||||||||||||||||||||||||||
Interest rate swaps and swaptions | 33,072 | 21,018 | 160 | 131 | ||||||||||||||||||||||||||||||||||||
Total | $ | 57,025 | $ | 48,448 | $ | (27 | ) | $ | (105 | ) | ||||||||||||||||||||||||||||||
[1] | As of December 31, 2013 and 2012 net notional amounts are $(1.6) billion and $0.1 billion, respectively, which include $3.6 billion and $4.7 billion, respectively, related to long positions and $5.2 billion and $4.6 billion, respectively, related to short positions. | |||||||||||||||||||||||||||||||||||||||
GMAB, GMWB and GMIB reinsurance contracts | ||||||||||||||||||||||||||||||||||||||||
As a reinsurer, the Company assumes the GMAB, GMWB, and GMIB embedded derivatives for host variable annuity contracts written by HLIKK. The reinsurance contracts are accounted for as free-standing derivative contracts. The notional amount of the reinsurance contracts is the yen denominated GRB balance value converted at the period-end yen to U.S. dollar foreign spot exchange rate. For further information on this transaction, refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | ||||||||||||||||||||||||||||||||||||||||
During 2010, a subsidiary entered into a coinsurance with funds withheld and modified coinsurance reinsurance agreement with an affiliated captive reinsurer, which creates an embedded derivative. In addition, provisions of this agreement include reinsurance to cede a portion of direct written U.S. GMWB riders, which is accounted for as an embedded derivative. Additional provisions of this agreement cede variable annuity contract GMAB, GMWB and GMIB riders reinsured by the Company that have been assumed from HLIKK and is accounted for as a free-standing derivative. For further information on this transaction, refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 the Company had approximately $1.3 billion of invested assets supporting other policyholder funds and benefits payable reinsured under a modified coinsurance arrangement in connection with the sale of the Individual Life business structured as a reinsurance transaction. The assets are held in a trust established by the Company. The Company pays or receives cash quarterly to settle the results of the reinsured business, including the investment results. As a result of this modified coinsurance arrangement, the Company has an embedded derivative that transfers to the reinsurer certain unrealized changes in fair value due to interest rate and credit risks of these assets. The notional amounts of the reinsurance contracts are the invested assets supporting the reinsured reserves and are carried at fair value. | ||||||||||||||||||||||||||||||||||||||||
Derivative Balance Sheet Classification | ||||||||||||||||||||||||||||||||||||||||
The following table summarizes the balance sheet classification of the Company’s derivative related fair value amounts as well as the gross asset and liability fair value amounts. For reporting purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. The Company has also elected to offset the fair value amounts, income accruals and related cash collateral receivables and payables of OTC-cleared derivative instruments based on clearing house agreements. The fair value amounts presented below do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation. Derivatives in the Company’s separate accounts are not included because the associated gains and losses accrue directly to policyholders. The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity. Notional amounts are not necessarily reflective of credit risk. In addition, the tables below exclude investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 3 - Fair Value Measurements. | ||||||||||||||||||||||||||||||||||||||||
Net Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||
Hedge Designation/ Derivative Type | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | ||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 3,215 | $ | 3,863 | $ | 16 | $ | 167 | $ | 49 | $ | 167 | $ | (33 | ) | $ | — | |||||||||||||||||||||||
Foreign currency swaps | 143 | 163 | (5 | ) | (17 | ) | 2 | 3 | (7 | ) | (20 | ) | ||||||||||||||||||||||||||||
Total cash flow hedges | 3,358 | 4,026 | 11 | 150 | 51 | 170 | (40 | ) | (20 | ) | ||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 1,261 | 753 | (24 | ) | (55 | ) | 2 | — | (26 | ) | (55 | ) | ||||||||||||||||||||||||||||
Foreign currency swaps | — | 40 | — | 16 | — | 16 | — | — | ||||||||||||||||||||||||||||||||
Total fair value hedges | 1,261 | 793 | (24 | ) | (39 | ) | 2 | 16 | (26 | ) | (55 | ) | ||||||||||||||||||||||||||||
Non-qualifying strategies | ||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps, swaptions, caps, floors, and futures | 4,633 | 13,432 | (368 | ) | (363 | ) | 123 | 436 | (491 | ) | (799 | ) | ||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps and forwards | 118 | 182 | (4 | ) | (9 | ) | 6 | 5 | (10 | ) | (14 | ) | ||||||||||||||||||||||||||||
Japan 3Win foreign currency swaps | 1,571 | 1,816 | (354 | ) | (127 | ) | — | — | (354 | ) | (127 | ) | ||||||||||||||||||||||||||||
Japanese fixed annuity hedging instruments | 1,436 | 1,652 | (6 | ) | 224 | 88 | 228 | (94 | ) | (4 | ) | |||||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||||||
Credit derivatives that purchase credit protection | 243 | 1,539 | (4 | ) | (5 | ) | — | 3 | (4 | ) | (8 | ) | ||||||||||||||||||||||||||||
Credit derivatives that assume credit risk [1] | 1,507 | 1,981 | 27 | (8 | ) | 28 | 17 | (1 | ) | (25 | ) | |||||||||||||||||||||||||||||
Credit derivatives in offsetting positions | 3,501 | 5,341 | (3 | ) | (22 | ) | 35 | 56 | (38 | ) | (78 | ) | ||||||||||||||||||||||||||||
Equity contracts | ||||||||||||||||||||||||||||||||||||||||
Equity index swaps and options | 131 | 791 | (2 | ) | 35 | 18 | 45 | (20 | ) | (10 | ) | |||||||||||||||||||||||||||||
Variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||
U.S. GMWB product derivative [2] | 21,512 | 28,868 | (36 | ) | (1,249 | ) | — | — | (36 | ) | (1,249 | ) | ||||||||||||||||||||||||||||
U.S. GMWB reinsurance contracts | 4,508 | 5,773 | 29 | 191 | 29 | 191 | — | — | ||||||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | 18,691 | 18,622 | 41 | 572 | 333 | 743 | (292 | ) | (171 | ) | ||||||||||||||||||||||||||||||
U.S. macro hedge program | 9,934 | 7,442 | 139 | 286 | 178 | 356 | (39 | ) | (70 | ) | ||||||||||||||||||||||||||||||
International program product derivatives [2] | — | 1,876 | — | (42 | ) | — | — | — | (42 | ) | ||||||||||||||||||||||||||||||
International program hedging instruments | 57,025 | 48,448 | (27 | ) | (105 | ) | 649 | 657 | (676 | ) | (762 | ) | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
GMAB, GMWB, and GMIB reinsurance contracts | 11,999 | 18,287 | (540 | ) | (1,827 | ) | — | — | (540 | ) | (1,827 | ) | ||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | 29,423 | 44,985 | (427 | ) | 890 | 383 | 1,566 | (810 | ) | (676 | ) | |||||||||||||||||||||||||||||
Total non-qualifying strategies | 166,232 | 201,035 | (1,535 | ) | (1,559 | ) | 1,870 | 4,303 | (3,405 | ) | (5,862 | ) | ||||||||||||||||||||||||||||
Total cash flow hedges, fair value hedges, and non-qualifying strategies | $ | 170,851 | $ | 205,854 | $ | (1,548 | ) | $ | (1,448 | ) | $ | 1,923 | $ | 4,489 | $ | (3,471 | ) | $ | (5,937 | ) | ||||||||||||||||||||
Balance Sheet Location | ||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 196 | $ | 416 | $ | (1 | ) | $ | (20 | ) | $ | — | $ | — | $ | (1 | ) | $ | (20 | ) | ||||||||||||||||||||
Other investments | 40,564 | 37,809 | 272 | 581 | 721 | 1,049 | (449 | ) | (468 | ) | ||||||||||||||||||||||||||||||
Other liabilities | 62,590 | 67,765 | (825 | ) | 38 | 789 | 1,683 | (1,614 | ) | (1,645 | ) | |||||||||||||||||||||||||||||
Consumer notes | 9 | 26 | (2 | ) | (2 | ) | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||
Reinsurance recoverable | 33,931 | 47,430 | (398 | ) | 1,081 | 413 | 1,757 | (811 | ) | (676 | ) | |||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | 33,561 | 52,408 | (594 | ) | (3,126 | ) | — | — | (594 | ) | (3,126 | ) | ||||||||||||||||||||||||||||
Total derivatives | $ | 170,851 | $ | 205,854 | $ | (1,548 | ) | $ | (1,448 | ) | $ | 1,923 | $ | 4,489 | $ | (3,471 | ) | $ | (5,937 | ) | ||||||||||||||||||||
[1] | The derivative instruments related to this strategy are held for other investment purposes. | |||||||||||||||||||||||||||||||||||||||
[2] | These derivatives are embedded within liabilities and are not held for risk management purposes. | |||||||||||||||||||||||||||||||||||||||
Change in Notional Amount | ||||||||||||||||||||||||||||||||||||||||
The net decrease in notional amount of derivatives since December 31, 2012 was primarily due to the following: | ||||||||||||||||||||||||||||||||||||||||
• | The decrease in notional amount of non-qualifying interest rate contracts primarily resulted from the termination of interest rate swaptions purchased during the third quarter of 2012 designed to hedge the interest rate risk of the securities being transferred related to the sale of the Retirement Plan business segment. | |||||||||||||||||||||||||||||||||||||||
• | The decrease in notional amount related to the U.S. GMWB product derivatives was primarily driven by product lapses and partial withdrawals. | |||||||||||||||||||||||||||||||||||||||
• | The decrease in notional amount related to the international program product derivatives was due to the GWMB embedded derivative disposed of as part of the sale of HLIL. For additional information on the sale agreement, refer to Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||
• | The decrease in notional amount of coinsurance and modified coinsurance reinsurance contracts primarily resulted from policyholder surrender activity and the termination of embedded derivatives as part of Individual Life and Retirement Plans business dispositions. For additional information on the sale agreement, refer to Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |||||||||||||||||||||||||||||||||||||||
• | The decrease in notional amount of GMAB, GMWB, and GMIB reinsurance contracts was primarily driven by policyholder surrender activity. | |||||||||||||||||||||||||||||||||||||||
• | The increase in notional amount related to the international program hedging instruments resulted from the Company expanding its hedging program related to international product program guarantees from the business reinsured from HLIKK in the first quarter of 2013. | |||||||||||||||||||||||||||||||||||||||
Change in Fair Value | ||||||||||||||||||||||||||||||||||||||||
The net decrease in the total fair value of derivative instruments since December 31, 2012 was primarily related to the following: | ||||||||||||||||||||||||||||||||||||||||
• | The fair value related to the Japanese fixed annuity hedging instruments and Japan 3Win foreign currency swaps decreased primarily due to a depreciation of the Japanese yen in relation to the U.S. dollar. | |||||||||||||||||||||||||||||||||||||||
• | The fair value related to the cash flow hedging interest rate swaps decreased primarily due to an increase in U.S. interest rates. | |||||||||||||||||||||||||||||||||||||||
• | GMAB, GMWB and GMIB reinsurance contracts represent the guarantees that are internally reinsured from HLIKK. The fair value of these liabilities has improved as a result of a sustained recovery in the equity markets, exchange rates, interest rates, and volatility. For a discussion related to the reinsurance agreement refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. | |||||||||||||||||||||||||||||||||||||||
• | The Coinsurance and modified coinsurance reinsurance contracts represents U.S. and International guarantees that are ceded to an affiliate. The primary driver of the decline in the fair value of these derivatives is a result of changes in the unrealized gains/losses of the underlying portfolios associated with these contracts as well as policyholder surrender activity. For a discussion related to the reinsurance agreement refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. | |||||||||||||||||||||||||||||||||||||||
• | The fair value associated with the international program hedging instruments decreased primarily due to an improvement in global equity markets and depreciation of the Japanese yen in relation to the euro and the U.S. dollar. | |||||||||||||||||||||||||||||||||||||||
• | The increase in fair value related to the combined U.S. GMWB hedging program, which includes the U.S. GMWB product, reinsurance, and hedging derivatives, was primarily driven by revaluing the liability for living benefits resulting from favorable policyholder behavior largely related to increased full surrenders and liability assumption updates for partial lapses and withdrawal rates. | |||||||||||||||||||||||||||||||||||||||
Offsetting of Derivative Assets/Liabilities | ||||||||||||||||||||||||||||||||||||||||
The following tables present the gross fair value amounts, the amounts offset, and net position of derivative instruments eligible for offset in the Company's Consolidated Balance Sheets. Amounts offset include fair value amounts, income accruals and related cash collateral receivables and payables associated with derivative instruments that are traded under a common master netting agreement, as described above. Also included in the tables are financial collateral receivables and payables, which is contractually permitted to be offset upon an event of default, although is disallowed for offsetting under U.S. GAAP. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | ||||||||||||||||||||||||||||||||||||
Net Amounts Presented in the Statement of Financial Position | Collateral Disallowed for Offset in the Statement of Financial Position | |||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Derivative Assets [1] | Accrued Interest and Cash Collateral Received [2] | Financial Collateral Received [4] | Net Amount | |||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||
Other investments | $ | 1,510 | $ | 1,290 | $ | 272 | $ | (52 | ) | $ | 121 | $ | 99 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Derivative Liabilities [3] | Accrued Interest and Cash Collateral Pledged [3] | Financial Collateral Pledged [4] | Net Amount | |||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | (2,063 | ) | $ | (1,308 | ) | $ | (825 | ) | $ | 70 | $ | (826 | ) | $ | 71 | ||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | ||||||||||||||||||||||||||||||||||||
Net Amounts Presented in the Statement of Financial Position | Collateral Disallowed for Offset in the Statement of Financial Position | |||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Derivative Assets [1] | Accrued Interest and Cash Collateral Received [2] | Financial Collateral Received [4] | Net Amount | |||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||
Other investments | $ | 2,732 | $ | 2,238 | $ | 581 | $ | (87 | ) | $ | 490 | $ | 4 | |||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Derivative Liabilities [3] | Accrued Interest and Cash Collateral Pledged [3] | Financial Collateral Pledged [4] | Net Amount | |||||||||||||||||||||||||||||||||||
Description | ||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | (2,113 | ) | $ | (1,759 | ) | $ | 38 | $ | (392 | ) | $ | (300 | ) | $ | (54 | ) | |||||||||||||||||||||||
[1] | Included in other investments in the Company's Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||
[2] | Included in other assets in the Company's Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty. | |||||||||||||||||||||||||||||||||||||||
[3] | Included in other liabilities in the Company's Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty. | |||||||||||||||||||||||||||||||||||||||
[4] | Excludes collateral associated with exchange-traded derivatives instruments. | |||||||||||||||||||||||||||||||||||||||
Cash Flow Hedges | ||||||||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge ineffectiveness are recognized in current earnings. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||||||||||||||||
The following table presents the components of the gain or loss on derivatives that qualify as cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in OCI | Net Realized Capital Gains (Losses) | |||||||||||||||||||||||||||||||||||||||
on Derivative (Effective Portion) | Recognized in Income on | |||||||||||||||||||||||||||||||||||||||
Derivative (Ineffective Portion) | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (158 | ) | $ | 26 | $ | 245 | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||||||||||
Foreign currency swaps | 12 | (18 | ) | (5 | ) | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | (146 | ) | $ | 8 | $ | 240 | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI | ||||||||||||||||||||||||||||||||||||||||
into Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Net realized capital gains (losses) | $ | 70 | $ | 85 | $ | 6 | |||||||||||||||||||||||||||||||||
Interest rate swaps | Net investment income (loss) | 57 | 97 | 77 | ||||||||||||||||||||||||||||||||||||
Foreign currency swaps | Net realized capital gains (losses) | 4 | (4 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 131 | $ | 178 | $ | 82 | ||||||||||||||||||||||||||||||||||
As of December 31, 2013, the before-tax deferred net gains on derivative instruments recorded in AOCI that are expected to be reclassified to earnings during the next twelve months are $46. This expectation is based on the anticipated interest payments on hedged investments in fixed maturity securities that will occur over the next twelve months, at which time the Company will recognize the deferred net gains (losses) as an adjustment to interest income over the term of the investment cash flows. | ||||||||||||||||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company had no net reclassifications from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. For the year ended December 31, 2012, the before-tax deferred net gains on derivative instruments reclassified from AOCI to earnings totaled $91 which primarily resulted from the discontinuance of cash flow hedges due to forecasted transactions no longer probable of occurring associated with variable rate bonds sold as part of the Individual Life and Retirement Plans business dispositions. For further information on the business dispositions, see Note 2. For the year ended December 31, 2011, the Company had no net reclassifications, respectively, from AOCI to earnings resulting from the discontinuance of cash-flow hedges due to forecasted transactions that were no longer probable of occurring. | ||||||||||||||||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||||||||||||||||
For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The Company includes the gain or loss on the derivative in the same line item as the offsetting loss or gain on the hedged item. All components of each derivative’s gain or loss were included in the assessment of hedge effectiveness. | ||||||||||||||||||||||||||||||||||||||||
The Company recognized in income gains (losses) representing the ineffective portion of fair value hedges as follows: | ||||||||||||||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income [1] | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Derivative | Hedged | Derivative | Hedged | Derivative | Hedged | |||||||||||||||||||||||||||||||||||
Item | Item | Item | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | 27 | $ | (24 | ) | $ | (3 | ) | $ | (3 | ) | $ | (58 | ) | $ | 54 | ||||||||||||||||||||||||
Foreign currency swaps | ||||||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses) | 1 | (1 | ) | (7 | ) | 7 | (1 | ) | 1 | |||||||||||||||||||||||||||||||
Benefits, losses and loss adjustment expenses | (2 | ) | 2 | (6 | ) | 6 | (22 | ) | 22 | |||||||||||||||||||||||||||||||
Total | $ | 26 | $ | (23 | ) | $ | (16 | ) | $ | 10 | $ | (81 | ) | $ | 77 | |||||||||||||||||||||||||
[1] | The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge. | |||||||||||||||||||||||||||||||||||||||
Non-qualifying Strategies | ||||||||||||||||||||||||||||||||||||||||
For non-qualifying strategies, including embedded derivatives that are required to be bifurcated from their host contracts and accounted for as derivatives, the gain or loss on the derivative is recognized currently in earnings within net realized capital gains (losses). The following table presents the gain or loss recognized in income on non-qualifying strategies: | ||||||||||||||||||||||||||||||||||||||||
Non-qualifying Strategies | ||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized within Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||
Interest rate swaps, caps, floors, and forwards | $ | (5 | ) | $ | 26 | $ | 20 | |||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps and forwards | 4 | 10 | 1 | |||||||||||||||||||||||||||||||||||||
Japan 3Win foreign currency swaps [1] | (268 | ) | (300 | ) | 31 | |||||||||||||||||||||||||||||||||||
Japanese fixed annuity hedging instruments [2] | (207 | ) | (178 | ) | 109 | |||||||||||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||||||
Credit derivatives that purchase credit protection | (20 | ) | (19 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||
Credit derivatives that assume credit risk | 46 | 204 | (141 | ) | ||||||||||||||||||||||||||||||||||||
Equity contracts | ||||||||||||||||||||||||||||||||||||||||
Equity index swaps and options | (22 | ) | (31 | ) | (67 | ) | ||||||||||||||||||||||||||||||||||
Variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||
U.S. GMWB product derivatives | 1,306 | 1,430 | (780 | ) | ||||||||||||||||||||||||||||||||||||
U.S. GMWB reinsurance contracts | (192 | ) | (280 | ) | 131 | |||||||||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | (852 | ) | (631 | ) | 252 | |||||||||||||||||||||||||||||||||||
U.S. macro hedge program | (234 | ) | (340 | ) | (216 | ) | ||||||||||||||||||||||||||||||||||
International program hedging instruments | (963 | ) | (1,145 | ) | 639 | |||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||
GMAB, GMWB, and GMIB reinsurance contracts | 1,107 | 1,233 | (326 | ) | ||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | (1,405 | ) | (1,901 | ) | 375 | |||||||||||||||||||||||||||||||||||
Total [3] | $ | (1,705 | ) | $ | (1,922 | ) | $ | 20 | ||||||||||||||||||||||||||||||||
[1] | The associated liability is adjusted for changes in spot rates through realized capital gains and was $250, $189 and $(100) for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||
[2] | The associated liability is adjusted for changes in spot rates through realized capital gains and losses and was $324, $245 and $(129) for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||
[3] | Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 3 - Fair Value Measurements. | |||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily comprised of the following: | ||||||||||||||||||||||||||||||||||||||||
• | The net loss associated with the international program hedging instruments was primarily driven by an improvement in global equity markets and depreciation of the Japanese yen in relation to the euro and the U.S. dollar. | |||||||||||||||||||||||||||||||||||||||
• | The net gain related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily driven by revaluing the liability for living benefits resulting from favorable policyholder behavior largely related to increased full surrenders and liability assumption updates for partial lapses and withdrawal rates. | |||||||||||||||||||||||||||||||||||||||
• | The net gain associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to the depreciation of the Japanese yen and an improvement in equity markets. | |||||||||||||||||||||||||||||||||||||||
• | The net loss on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. | |||||||||||||||||||||||||||||||||||||||
• | The net loss related to the Japanese fixed annuity hedging instruments and the Japan 3Win foreign currency swaps was primarily due to a depreciation of the Japanese yen in relation to the U.S. dollar. | |||||||||||||||||||||||||||||||||||||||
• | The net loss on the U.S. macro hedge program was primarily due to an improvement in domestic equity markets, an increase in interest rates and a decline in equity volatility. | |||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily comprised of the following: | ||||||||||||||||||||||||||||||||||||||||
• | The net loss associated with the international program hedging instruments was primarily driven by an improvement in global equity markets and depreciation of the Japanese yen in relation to the euro and the U.S. dollar. | |||||||||||||||||||||||||||||||||||||||
• | The net gain related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily driven by liability model assumption updates, outperformance of underlying actively managed funds compared to their respective indices, and lower equity volatility. | |||||||||||||||||||||||||||||||||||||||
• | The net loss on the U.S. macro hedge program was primarily due to the passage of time, an improvement in domestic equity markets, and a decrease in equity volatility. | |||||||||||||||||||||||||||||||||||||||
• | The net gain associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to the depreciation of the Japanese yen and an improvement in equity markets. | |||||||||||||||||||||||||||||||||||||||
• | The net loss on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. | |||||||||||||||||||||||||||||||||||||||
• | The net loss related to the Japan 3Win foreign currency swaps and Japanese fixed annuity hedging instruments was primarily due to the depreciation of the Japanese yen in relation to the U.S. dollar, the strengthening of the currency basis swap spread between the U.S. dollar and the Japanese yen, and a decline in U.S. interest rates. | |||||||||||||||||||||||||||||||||||||||
• | The gain on credit derivatives that assume credit risk as a part of replication transactions resulted from credit spread tightening. | |||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2011 the net realized capital gain (loss) related to derivatives used in non-qualifying strategies was primarily due to the following: | ||||||||||||||||||||||||||||||||||||||||
• | The net gain associated with the international program hedging instruments was primarily driven by strengthening of the Japanese yen, a decline in global equity markets, and a decrease in interest rates. | |||||||||||||||||||||||||||||||||||||||
• | The loss related to the combined GMWB hedging program, which includes the GMWB product, reinsurance, and hedging derivatives, was primarily a result of a decrease in long-term interest rates and higher interest rate volatility. | |||||||||||||||||||||||||||||||||||||||
• | The net loss associated with GMAB, GMWB, and GMIB reinsurance contracts, which are reinsured to an affiliated captive reinsurer, was primarily due to the strengthening of the Japanese yen and a decrease in equity markets. | |||||||||||||||||||||||||||||||||||||||
• | The net gain on the coinsurance and modified coinsurance reinsurance agreement, which is accounted for as a derivative instrument primarily offsets the net loss on GMAB, GMWB, and GMIB reinsurance contracts. For a discussion related to the reinsurance agreement refer to Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information on this transaction. | |||||||||||||||||||||||||||||||||||||||
• | The net loss on the U.S. macro hedge program was primarily driven by time decay and a decrease in equity market volatility since the purchase date of certain options during the fourth quarter. | |||||||||||||||||||||||||||||||||||||||
Refer to Note 12 - Commitments and Contingencies of Notes to Consolidated Financial Statements for additional disclosures regarding contingent credit related features in derivative agreements. | ||||||||||||||||||||||||||||||||||||||||
Credit Risk Assumed through Credit Derivatives | ||||||||||||||||||||||||||||||||||||||||
The Company enters into credit default swaps that assume credit risk of a single entity, referenced index, or asset pool in order to synthetically replicate investment transactions. The Company will receive periodic payments based on an agreed upon rate and notional amount and will only make a payment if there is a credit event. A credit event payment will typically be equal to the notional value of the swap contract less the value of the referenced security issuer’s debt obligation after the occurrence of the credit event. A credit event is generally defined as a default on contractually obligated interest or principal payments or bankruptcy of the referenced entity. The credit default swaps in which the Company assumes credit risk primarily reference investment grade single corporate issuers and baskets, which include standard and customized diversified portfolios of corporate issuers. The diversified portfolios of corporate issuers are established within sector concentration limits and may be divided into tranches that possess different credit ratings. | ||||||||||||||||||||||||||||||||||||||||
The following tables present the notional amount, fair value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amounts and fair value for credit derivatives in which the Company is assuming credit risk as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Underlying Referenced | ||||||||||||||||||||||||||||||||||||||||
Credit Obligation(s) [1] | ||||||||||||||||||||||||||||||||||||||||
Credit Derivative type by derivative | Notional | Fair | Weighted | Type | Average | Offsetting | Offsetting | |||||||||||||||||||||||||||||||||
risk exposure | Amount [2] | Value | Average | Credit | Notional | Fair Value [3] | ||||||||||||||||||||||||||||||||||
Years to | Rating | Amount [3] | ||||||||||||||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | $ | 735 | $ | 6 | 2 years | Corporate Credit/ | A | $ | 592 | $ | (4 | ) | ||||||||||||||||||||||||||||
Foreign Gov. | ||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 24 | — | 1 year | Corporate Credit | CCC | 25 | — | |||||||||||||||||||||||||||||||||
Basket credit default swaps [4] | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 1,912 | 25 | 3 years | Corporate Credit | BBB+ | 784 | (10 | ) | ||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 87 | 8 | 5 years | Corporate Credit | BB- | — | — | |||||||||||||||||||||||||||||||||
Investment grade risk exposure | 235 | (5 | ) | 3 years | CMBS Credit | A | 235 | 5 | ||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 115 | (18 | ) | 3 years | CMBS Credit | B- | 115 | 18 | ||||||||||||||||||||||||||||||||
Embedded credit derivatives | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 150 | 145 | 3 years | Corporate Credit | BBB+ | — | — | |||||||||||||||||||||||||||||||||
Total [5] | $ | 3,258 | $ | 161 | $ | 1,751 | $ | 9 | ||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
Underlying Referenced | ||||||||||||||||||||||||||||||||||||||||
Credit Obligation(s) [1] | ||||||||||||||||||||||||||||||||||||||||
Credit Derivative type by derivative risk exposure | Notional | Fair | Weighted | Type | Average | Offsetting | Offsetting | |||||||||||||||||||||||||||||||||
Amount | Value | Average | Credit | Notional | Fair | |||||||||||||||||||||||||||||||||||
[2] | Years to | Rating | Amount | Value [3] | ||||||||||||||||||||||||||||||||||||
Maturity | [3] | |||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | $ | 1,787 | $ | 8 | 3 years | Corporate Credit/ Foreign Gov. | A | $ | 878 | $ | (19 | ) | ||||||||||||||||||||||||||||
Below investment grade risk exposure | 114 | (1 | ) | 1 year | Corporate Credit | B+ | 114 | (3 | ) | |||||||||||||||||||||||||||||||
Basket credit default swaps [4] | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 2,074 | 11 | 2 years | Corporate Credit | BBB+ | 1,326 | (6 | ) | ||||||||||||||||||||||||||||||||
Investment grade risk exposure | 237 | (12 | ) | 4 years | CMBS Credit | A | 238 | 12 | ||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 115 | (27 | ) | 4 years | CMBS Credit | B+ | 115 | 27 | ||||||||||||||||||||||||||||||||
Embedded credit derivatives | ||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 325 | 296 | 4 years | Corporate Credit | BBB- | — | — | |||||||||||||||||||||||||||||||||
Total [5] | $ | 4,652 | $ | 275 | $ | 2,671 | $ | 11 | ||||||||||||||||||||||||||||||||
[1] | The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||||||||||||||||
[2] | Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and clearing house rules and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses going forward. | |||||||||||||||||||||||||||||||||||||||
[3] | The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. | |||||||||||||||||||||||||||||||||||||||
[4] | Includes $2.3 billion and $2.4 billion as of December 31, 2013 and 2012, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. | |||||||||||||||||||||||||||||||||||||||
[5] | Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 3 - Fair Value Measurements. | |||||||||||||||||||||||||||||||||||||||
Derivative Collateral Arrangements | ||||||||||||||||||||||||||||||||||||||||
The Company enters into various collateral arrangements in connection with its derivative instruments, which require both the pledging and accepting of collateral. As of December 31, 2013 and 2012, the Company pledged securities collateral associated with derivative instruments with a fair value of $865 and $370, respectively, which have been included in fixed maturities on the Consolidated Balance Sheets. The counterparties have the right to sell or re-pledge these securities. The Company also pledged cash collateral associated with derivative instruments with a fair value of $290 and $179, respectively, as of December 31, 2013 and 2012 which have been included in short-term investments on the Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company accepted cash collateral associated with derivative instruments with a fair value of $171 and $607, respectively, which was invested and recorded in the Consolidated Balance Sheets in fixed maturities and short-term investments with corresponding amounts recorded in other liabilities. The Company also accepted securities collateral as of December 31, 2013 and 2012 of $121 and $490, respectively, of which the Company has the ability to sell or repledge $117 and $348, respectively. As of December 31, 2013 and 2012, the fair value of repledged securities totaled $39 and $0, respectively, and the Company did not sell any securities. In addition, as of December 31, 2013 and 2012, noncash collateral accepted was held in separate custodial accounts and was not included in the Company’s Consolidated Balance Sheets. |
Reinsurance
Reinsurance | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Insurance [Abstract] | ' | |||||||||
Reinsurance | ' | |||||||||
Reinsurance | ||||||||||
The Company cedes insurance to affiliated and unaffiliated insurers to enable the Company to manage capital and risk exposure. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company's procedures include careful initial selection of its reinsurers, structuring agreements to provide collateral funds where necessary, and regularly monitoring the financial condition and ratings of its reinsurers. The Company entered into two reinsurance transactions in connection with the sales of its Retirement Plans and Individual Life businesses in January 2013. For further discussion of these transactions, see Note 2 - Business Dispositions of Notes to the Consolidated Financial Statements. | ||||||||||
The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. Insurance recoveries on ceded reinsurance agreements, which reduce death and other benefits, were $915, $302, and $252 for the years ended December 31, 2013, 2012, and 2011, respectively. In addition, the Company has reinsured a portion of the risk associated with U.S. variable annuities and the associated GMDB and GMWB riders. | ||||||||||
The Company also maintains reinsurance agreements with HLA, whereby the Company cedes both group life and group accident and health risk. Under these treaties, the Company ceded group life premium of $71, $94, and $106 in December 31, 2013, 2012, and 2011, respectively. The Company ceded accident and health premiums to HLA of $152, $177, and $191, respectively. | ||||||||||
A subsidiary of the Company, Hartford Life and Annuity Insurance Company (“HLAI”) has a modified coinsurance ("modco") and coinsurance with funds withheld reinsurance agreement with an affiliated captive reinsurer, White River Life Reinsurance (“WRR”). Under this transaction, the Company ceded $31, $58, and $61 in December 31, 2013, 2012, and 2011. For further information regarding the WRR reinsurance agreement, see Note 13- Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||
Prior to June 1, 2009, yen and U.S. dollar based fixed market value adjusted (“MVA”) annuity products, written by HLIKK, were sold to customers in Japan. HLIKK, a wholly owned Japanese subsidiary of Hartford Life, Inc., reinsured to the Company in-force and prospective MVA annuities sold from September 1, 2004 to June 1, 2009. As of December 31, 2013 and 2012, $1.5 billion and $2.1 billion, respectively, of the account value had been assumed by the Company. | ||||||||||
Reinsurance Recoverables | ||||||||||
Life insurance product reinsurance recoverables represent loss and loss adjustment expense recoverable from a number of reinsurers. The Company's reinsurance recoverables are summarized as follows: | ||||||||||
December, 31 | ||||||||||
Reinsurance Recoverables | 2013 | 2012 | ||||||||
Future policy benefits and unpaid loss and loss adjustment expenses: | ||||||||||
Sold businesses (MassMutual and Prudential) | $ | 18,969 | $ | — | ||||||
Other reinsurers | 825 | 2,893 | ||||||||
Net reinsurance recoverables | $ | 19,794 | $ | 2,893 | ||||||
As of December 31, 2013, the Company has reinsurance recoverables of $9.5 billion each from MassMutual and Prudential. These reinsurance recoverables are secured by invested assets held in trust for the benefit of the Company in the event of a default by the reinsurers. As of December 31, 2013, the fair value of assets held in trust securing the reinsurance recoverables from MassMutual and Prudential were $9.5 billion and $7.1 billion, respectively. As of December 31, 2013, the net reinsurance recoverables from Prudential represents approximately 29% of the Company's consolidated stockholders' equity. As of December 31, 2013, the Company has no other reinsurance-related concentrations of credit risk greater than 10% of the Company’s consolidated stockholder's equity. | ||||||||||
Insurance Revenues | ||||||||||
Net fee income, earned premiums and other were comprised of the following: | ||||||||||
For the years Ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Gross fee income, earned premiums and other | $ | 3,502 | $ | 3,739 | $ | 4,147 | ||||
Reinsurance assumed | 13 | 8 | 13 | |||||||
Reinsurance ceded | (1,869 | ) | (698 | ) | (733 | ) | ||||
Net fee income, earned premiums and other | $ | 1,646 | $ | 3,049 | $ | 3,427 | ||||
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs and Present Value of Future Profits | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | ' | |||||||||
Deferred Policy Acquisition Costs and Present Value of Future Profits | ' | |||||||||
Deferred Policy Acquisition Costs and Present Value of Future Profits | ||||||||||
Changes in the DAC balance are as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance, beginning of period | $ | 3,072 | $ | 3,448 | $ | 3,694 | ||||
Deferred costs | 16 | 329 | 381 | |||||||
Amortization — DAC | (124 | ) | (280 | ) | (290 | ) | ||||
Amortization — Unlock benefit (charge), pre-tax | (104 | ) | (44 | ) | (137 | ) | ||||
Amortization — DAC from discontinued operations | — | (35 | ) | (47 | ) | |||||
Amortization — DAC related to business dispositions [1] [2] | (2,229 | ) | — | — | ||||||
Adjustments to unrealized gains and losses on securities available-for-sale and other [3] | 58 | (346 | ) | (154 | ) | |||||
Effect of currency translation | — | — | 1 | |||||||
Balance, end of period | $ | 689 | $ | 3,072 | $ | 3,448 | ||||
[1] | Includes accelerated amortization of $352 and $2,374 recognized upon the sale of the Retirement Plans and Individual Life businesses, respectively, in the first quarter of 2013. For further information, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |||||||||
[2] | Includes previously unrealized gains on securities AFS of $148 and $349 recognized upon the sale of the Retirement Plans and Individual Life businesses, respectively, in the first quarter of 2013. | |||||||||
[3] | Other includes a $16 reduction of the DAC asset as a result of the sale of assets used to administer the Company's PPLI business in 2012. The reduction is directly attributable to this transaction as it results in lower future estimated gross profits than originally estimated on these products. | |||||||||
As of December 31, 2013, estimated future net amortization expense of present value of future profits for the succeeding five years is $5, $4, $4, $3 and $3 in 2014, 2015, 2016, 2017 and 2018 respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill | ' |
Goodwill | |
The reporting units of the Company for which goodwill was allocated include Mutual Funds, Retirement Plans and Individual Life. | |
Year Ended December 31, 2013 | |
During the first quarter of 2013, the Company completed the sale of its Retirement Plans business to Mass Mutual and its Individual Life business to Prudential. Accordingly, the carrying value of each reporting unit's goodwill of $87 and $163, respectively, was reduced and is included in reinsurance loss on disposition in the Company's Consolidated Statement of Operations. For further information on the disposition of the Retirement Plans and Individual Life businesses, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |
Year Ended December 31, 2012 | |
During the fourth quarter of 2012, the Company wrote off $159 of goodwill associated with the Mutual Funds reporting unit including goodwill of $10 due to the sale of Woodbury Financial Services and $149 of remaining goodwill as a result of the Mutual Funds reorganization. For further discussion of the reorganization of the Mutual Funds business, see Note 1 - Basis of Presentation and Significant Accounting Policies and Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. | |
During the first quarter of 2012, the Company determined that a triggering event requiring an interim impairment assessment had occurred as a result of its decision to pursue sales or other strategic alternatives for the Retirement Plans and Individual Life reporting units. | |
The Company completed interim impairment tests during each of the first three quarters of 2012 for the Retirement Plans reporting unit which resulted in no impairment of goodwill. The annual goodwill assessment for Retirement Plans was completed as of October 31, 2012 and an additional impairment test was completed as of December 31, 2012 as a result of the anticipated sale of this business unit. No write-down of goodwill resulted for the year ended December 31, 2012. Retirement Plans passed step one of the goodwill impairment tests with a margin of less than 10% between fair value and book value of the reporting unit as of both dates. The fair value of the Retirement Plans reporting unit as of October 31, 2012 and December 31, 2012 was based on a negotiated transaction price. The carrying amount of goodwill allocated to the Retirement Plans reporting unit was $87 as of December 31, 2012. | |
The Company completed interim impairment tests during each of the first three quarters of 2012 for the Individual Life reporting unit which resulted in no impairment of goodwill as the Company anticipated a gain on the sale of the Individual Life reporting unit. Upon closing the fourth quarter of 2012, the Company uncovered an error in its calculation of the transaction gain that resulted in the transaction generating a modest loss. This loss would have resulted in a goodwill impairment in the third quarter; however, this loss was recognized in the fourth quarter as it was immaterial to the respective quarter's financial statements taken as a whole. Accordingly, an impairment loss of $61 was recognized in the fourth quarter of 2012. An additional impairment test was completed for the Individual Life reporting unit as of December 31, 2012 as a result of the anticipated sale of this business unit. No additional write-down of goodwill resulted for the year ended December 31, 2012 as fair value approximated the remaining book value of the reporting unit as of December 31, 2012. The fair value of the Individual Life reporting unit as of October 31, 2012 and December 31, 2012 was based on a negotiated transaction price. The carrying amount of goodwill allocated to the Individual Life reporting unit was $163 as of December 31, 2012. | |
Year Ended December 31, 2011 | |
The Company completed its annual goodwill assessment for the individual reporting units on January 1, 2011 and October 31, 2011, which resulted in no impairment of goodwill. All reporting units passed the first step of both impairment tests with a significant margin. |
Separate_Accounts_Death_Benefi
Separate Accounts, Death Benefits and Other Insurance Benefit Features | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features [Abstract] | ' | ||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features | ' | ||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features | |||||||||||
Changes in the gross GMDB and UL secondary guarantee benefits are as follows: | |||||||||||
GMDB | UL Secondary | ||||||||||
Guarantees | |||||||||||
Liability balance as of January 1, 2013 | $ | 944 | $ | 363 | |||||||
Incurred | 183 | 294 | |||||||||
Paid | (135 | ) | — | ||||||||
Unlock | (116 | ) | 2 | ||||||||
Impact of reinsurance transaction | — | 1,143 | |||||||||
Currency translation adjustment | (27 | ) | — | ||||||||
Liability balance as of December 31, 2013 | $ | 849 | $ | 1,802 | |||||||
Reinsurance recoverable asset, as of January 1, 2013 | $ | 608 | $ | 21 | |||||||
Incurred | 104 | 296 | |||||||||
Paid | (98 | ) | — | ||||||||
Unlock | (81 | ) | — | ||||||||
Impact of reinsurance transaction | — | 1,485 | |||||||||
Reinsurance recoverable asset, as of December 31, 2013 | $ | 533 | $ | 1,802 | |||||||
GMDB | UL Secondary | ||||||||||
Guarantees | |||||||||||
Liability balance as of January 1, 2012 | $ | 1,158 | $ | 228 | |||||||
Incurred | 228 | 113 | |||||||||
Paid | (258 | ) | — | ||||||||
Unlock | (181 | ) | 22 | ||||||||
Currency translation adjustment | (3 | ) | — | ||||||||
Liability balance as of December 31, 2012 | $ | 944 | $ | 363 | |||||||
Reinsurance recoverable asset, as of January 1, 2012 | $ | 724 | $ | 22 | |||||||
Incurred | 121 | (1 | ) | ||||||||
Paid | (121 | ) | — | ||||||||
Unlock | (116 | ) | — | ||||||||
Reinsurance recoverable asset, as of December 31, 2012 | $ | 608 | $ | 21 | |||||||
The following table presents details concerning GMDB and GMIB exposure as of December 31, 2013: | |||||||||||
Individual Variable and Group Annuity Account Value by GMDB/GMIB Type | |||||||||||
Maximum anniversary value (“MAV”) [1] | Account | Net amount | Retained Net | Weighted Average | |||||||
Value | at Risk | Amount | Attained Age of | ||||||||
(“AV”) [8] | (“NAR”) [9] | at Risk | Annuitant | ||||||||
(“RNAR”) [9] | |||||||||||
MAV only | $ | 19,638 | $ | 2,914 | $ | 178 | 69 | ||||
With 5% rollup [2] | 1,610 | 232 | 16 | 69 | |||||||
With Earnings Protection Benefit Rider (“EPB”) [3] | 4,862 | 629 | 19 | 67 | |||||||
With 5% rollup & EPB | 588 | 119 | 5 | 70 | |||||||
Total MAV | 26,698 | 3,894 | 218 | ||||||||
Asset Protection Benefit (APB) [4] | 18,579 | 277 | 55 | 68 | |||||||
Lifetime Income Benefit (LIB) – Death Benefit [5] | 773 | 9 | 2 | 66 | |||||||
Reset [6] (5-7 years) | 3,286 | 74 | 34 | 69 | |||||||
Return of Premium [7] /Other | 12,476 | 71 | 17 | 67 | |||||||
Subtotal U.S. GMDB | $ | 61,812 | $ | 4,325 | $ | 326 | 68 | ||||
Less: General Account Value with U.S. GMBD | 4,349 | ||||||||||
Subtotal Separate Account Liabilities with GMDB | 57,463 | ||||||||||
Separate Account Liabilities without U.S. GMDB | 83,411 | ||||||||||
Total Separate Account Liabilities | $ | 140,874 | |||||||||
Japan GMDB [10], [11] | $ | 12,659 | $ | 167 | $ | — | 69 | ||||
Japan GMIB [10], [11] | $ | 12,456 | $ | 102 | $ | — | 69 | ||||
[1] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). | ||||||||||
[2] | Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums. | ||||||||||
[3] | EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals. | ||||||||||
[4] | APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). | ||||||||||
[5] | LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a benefit amount that ratchets over time, generally based on market performance. | ||||||||||
[6] | Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 (adjusted for withdrawals). | ||||||||||
[7] | ROP GMDB is the greater of current AV and net premiums paid. | ||||||||||
[8] | AV includes the contract holder’s investment in the separate account and the general account. | ||||||||||
[9] | NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. | ||||||||||
[10] | Assumed GMDB includes a ROP and MAV (before age 80) paid in a single lump sum. GMIB is a guarantee to return initial investment, adjusted for earnings liquidity, paid through a fixed annuity, after a minimum deferral period of 10, 15 or 20 years. The GRB related to the Japan GMIB was $11.7 billion as of December 31, 2013. The GRB related to the Japan GMAB and GMWB was $304 as of December 31, 2013. These liabilities are not included in the Separate Account as they are not legally insulated from the general account liabilities of the insurance enterprise. As of December 31, 2013, 100% of NAR is reinsured to an affiliate. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||
[11] | Policies with a guaranteed living benefit (a GMWB in the US or a GMIB in Japan) also have a guaranteed death benefit. The NAR for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR is released. | ||||||||||
For a description of the Company’s guaranteed living benefits that are accounted for at fair value, see Note 3 - Fair Value Measurements of Notes to Consolidated Financial Statements. | |||||||||||
Account balances of contracts with guarantees were invested in variable separate accounts as follows: | |||||||||||
Asset type | December 31, 2013 | December 31, 2012 | |||||||||
Equity securities (including mutual funds) | $ | 52,858 | $ | 58,208 | |||||||
Cash and cash equivalents | 4,605 | 6,940 | |||||||||
Total | $ | 57,463 | $ | 65,148 | |||||||
As of December 31, 2013 and December 31, 2012, approximately 17% and 16%, respectively, of the equity securities above were invested in fixed income securities through these funds and approximately 83% and 84%, respectively, were invested in equity securities through these funds. |
Sales_Inducements_Sales_Induce
Sales Inducements Sales Inducements (Notes) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Sales Inducements [Abstract] | ' | |||||||||
Deferred Sales Inducements [Table Text Block] | ' | |||||||||
The Company offered enhanced crediting rates or bonus payments to contract holders on certain of its individual and group annuity products. The expense associated with offering a bonus is deferred and amortized over the life of the related contract in a pattern consistent with the amortization of deferred policy acquisition costs. Amortization expense associated with expenses previously deferred is recorded over the remaining life of the contract. Consistent with the Unlock, the Company unlocked the amortization of the sales inducement asset. See Note 6 - Deferred Policy Acquisition Costs and Present Value of Future Profits of Notes to Consolidated Financial Statements for more information concerning the Unlock. | ||||||||||
Changes in sales inducement activity are as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance, beginning of period | $ | 118 | $ | 186 | $ | 197 | ||||
Sales inducements deferred | — | 4 | 6 | |||||||
Amortization—Unlock | (3 | ) | (59 | ) | (4 | ) | ||||
Amortization charged to income | (8 | ) | (13 | ) | (13 | ) | ||||
Amortization related to business dispositions [1] | (71 | ) | — | — | ||||||
Balance, end of period | $ | 36 | $ | 118 | $ | 186 | ||||
[1] Includes $22 and $49, related to sale of the Company's Retirement Plans and Individual Life businesses, respectively, in the first quarter of 2013. For further information, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Contingencies Relating to Corporate Litigation and Regulatory Matters | |
Management evaluates each contingent matter separately. A loss is recorded if probable and reasonably estimable. Management establishes reserves for these contingencies at its “best estimate,” or, if no one number within the range of possible losses is more probable than any other, the Company records an estimated liability at the low end of the range of losses. | |
Litigation | |
The Company is involved in claims litigation arising in the ordinary course of business, both as a liability insurer defending or providing indemnity for third-party claims brought against insureds and as an insurer defending coverage claims brought against it. The Company accounts for such activity through the establishment of unpaid loss and loss adjustment expense reserves. Management expects that the ultimate liability, if any, with respect to such ordinary-course claims litigation, after consideration of provisions made for potential losses and costs of defense, will not be material to the consolidated financial condition, results of operations or cash flows of the Company. | |
The Company is also involved in other kinds of legal actions, some of which assert claims for substantial amounts. These actions include, among others and in addition to the matter described below, putative state and federal class actions seeking certification of a state or national class. Such putative class actions have alleged, for example, improper sales practices in connection with the sale of certain life insurance products and improper claim practices with respect to certain group benefits claims. The Company also is involved in individual actions in which punitive damages are sought, such as claims alleging bad faith in the handling of insurance claims. Management expects that the ultimate liability, if any, with respect to such lawsuits, after consideration of provisions made for estimated losses, will not be material to the consolidated financial condition of the Company. Nonetheless, given the large or indeterminate amounts sought in certain of these actions, and the inherent unpredictability of litigation, the outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. | |
Lease Commitments | |
The rent paid to Hartford Fire for operating leases was $2, $17 and $19 for the years ended December 31, 2013, 2012 and 2011, respectively. Future minimum lease commitments as of December 31, 2013 are immaterial. | |
Unfunded Commitments | |
As of December 31, 2013, the Company has outstanding commitments totaling $253, of which $223 is committed to fund limited partnership and other alternative investments, which may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. Additionally, $27 is largely related to commercial whole loans expected to fund in the first half of 2013. The remaining outstanding commitments are related to various funding obligations associated with private placement securities. | |
Guaranty Fund and Other Insurance-related Assessments | |
In all states, insurers licensed to transact certain classes of insurance are required to become members of a guaranty fund. In most states, in the event of the insolvency of an insurer writing any such class of insurance in the state, members of the funds are assessed to pay certain claims of the insolvent insurer. A particular state’s fund assesses its members based on their respective written premiums in the state for the classes of insurance in which the insolvent insurer was engaged. Assessments are generally limited for any year to one or two percent of premiums written per year depending on the state. | |
The Company accounts for guaranty fund and other insurance assessments in accordance with Accounting Standards Codification 405-30, “Accounting by Insurance and Other Enterprises for Insurance-Related Assessments”. Liabilities for guaranty funds and other insurance-related assessments are accrued when an assessment is probable, when it can be reasonably estimated, and when the event obligating the Company to pay an imposed or probable assessment has occurred. Liabilities for guaranty funds and other insurance-related assessments are not discounted and are included as part of other liabilities in the Consolidated Balance Sheets. As of December 31, 2013 and 2012, the liability balance was $21 and $42, respectively. As of December 31, 2013 and 2012, $27 and $27, respectively, related to premium tax offsets were included in other assets. In 2011, the Company recognized $22 for expected assessments related to the Executive Life Company of New York (ELNY) insolvency. | |
Derivative Commitments | |
Certain of the Company’s derivative agreements contain provisions that are tied to the financial strength ratings of the individual legal entity that entered into the derivative agreement as set by nationally recognized statistical rating agencies. If the legal entity’s financial strength were to fall below certain ratings, the counterparties to the derivative agreements could demand immediate and ongoing full collateralization and in certain instances demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement. The settlement amount is determined by netting the derivative positions transacted under each agreement. If the termination rights were to be exercised by the counterparties, it could impact the legal entity’s ability to conduct hedging activities by increasing the associated costs and decreasing the willingness of counterparties to transact with the legal entity. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position as of December 31, 2013, was $844. Of this $844 the legal entities have posted collateral of $945 in the normal course of business. In addition, the Company has posted collateral of $44 associated with a customized GMWB derivative. Based on derivative market values as of December 31, 2013, a downgrade of one level below the current financial strength ratings by either Moody’s or S&P could require approximately an additional $5 to be posted as collateral. Based on derivative market values as of December 31, 2013, a downgrade of two levels below the current financial strength ratings by either Moody’s or S&P would not require additional assets to be posted as collateral. These collateral amounts could change as derivative market values change, as a result of changes in our hedging activities or to the extent changes in contractual terms are negotiated. The nature of the collateral that we would post, if required, would be primarily in the form of U.S. Treasury bills, U.S. Treasury notes and government agency securities. |
Income_Tax
Income Tax | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Income Tax | ' | |||||||||
Income Tax | ||||||||||
Income (loss) from continuing operations before income taxes for the years ended December 31, 2013, 2012 and 2011 included income (loss) from domestic operations of $561, $531 and $(137) , respectively. There was no income (loss) from foreign operations for the years ended December 31, 2013, 2012 and 2011. | ||||||||||
Income tax expense (benefit) is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income tax expense (benefit) | ||||||||||
Current - U.S. Federal | $ | (208 | ) | $ | 139 | $ | (206 | ) | ||
Deferred - U.S. Federal Excluding NOL Carryforward | 405 | (94 | ) | 46 | ||||||
U.S. Net Operating Loss Carryforward | (148 | ) | (9 | ) | (163 | ) | ||||
Total Deferred | 257 | (103 | ) | (117 | ) | |||||
Income tax expense (benefit) | $ | 49 | $ | 36 | $ | (323 | ) | |||
Deferred tax assets (liabilities) include the following as of December 31: | ||||||||||
As of December 31, | ||||||||||
Deferred Tax Assets | 2013 | 2012 | ||||||||
Tax basis deferred policy acquisition costs | $ | 163 | $ | 424 | ||||||
Investment-related items | 1,516 | 1,244 | ||||||||
Insurance product derivatives | 742 | 1,092 | ||||||||
NOL Carryover | 377 | 225 | ||||||||
Minimum tax credit | 327 | 355 | ||||||||
Foreign tax credit carryover | 44 | 33 | ||||||||
Capital loss carryover | — | 5 | ||||||||
Other | 71 | 65 | ||||||||
Total Deferred Tax Assets | 3,240 | 3,443 | ||||||||
Valuation Allowance | — | (53 | ) | |||||||
Net Deferred Tax Assets | 3,240 | 3,390 | ||||||||
Deferred Tax Liabilities | ||||||||||
Financial statement deferred policy acquisition costs and reserves | (650 | ) | (356 | ) | ||||||
Net unrealized gain on investments | (403 | ) | (1,432 | ) | ||||||
Employee benefits | (52 | ) | (45 | ) | ||||||
Depreciable and amortizable assets | (25 | ) | — | |||||||
Total Deferred Tax Liabilities | (1,130 | ) | (1,833 | ) | ||||||
Total Deferred Tax Asset | $ | 2,110 | $ | 1,557 | ||||||
As of December 31, 2013 and 2012, the deferred tax asset included the expected tax benefit attributable to foreign net operating losses of $0 and $221, which have no expiration. The Company had a current income tax recoverable of $80 as of December 31, 2013 and a current income tax payable of $192 as of December 31, 2012. | ||||||||||
If the Company were to follow a “separate entity” approach, the current tax benefit related to any of the Company’s tax attributes realized by virtue of its inclusion in The Hartford’s consolidated tax return would have been recorded directly to surplus rather than income. These benefits were $0, $18 and $0 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
The Company recorded a deferred tax asset valuation allowance that is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. The deferred tax asset valuation allowance was $0 relating mostly to U.S. net operating losses, as of December 31, 2013 and $53, relating mostly to foreign net operating losses, as of December 31, 2012. In assessing the need for a valuation allowance, management considered future taxable temporary difference reversals, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in open carryback years, as well as other tax planning strategies. These tax planning strategies include holding a portion of debt securities with market value losses until recovery, selling appreciated securities to offset capital losses, business considerations such as asset-liability matching, and the sales of certain corporate assets. Management views such tax planning strategies as prudent and feasible and will implement them, if necessary, to realize the deferred tax asset. Based on the availability of additional tax planning strategies identified in 2011, the Company released $56, or 100% of the valuation allowance associated with investment realized capital losses. Future economic conditions and debt market volatility, including increases in interest rates, can adversely impact the Company’s tax planning strategies and in particular the Company’s ability to utilize tax benefits on previously recognized realized capital losses. | ||||||||||
The Company or one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. The Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years prior to 2007. The audit of the years 2007-2011 are expected to conclude in 2015, with no material impact on the consolidated financial condition or results of operations. In addition, in 2011, the Company recorded a tax benefit of $52 as a result of a resolution of a tax matter with the IRS for the computation of the dividends-received deduction (DRD) for years 1998, 2000 and 2001. Management believes that adequate provision has been made in the financial statements for any potential assessments that may result from tax examinations and other tax-related matters for all open tax years. | ||||||||||
The Company’s unrecognized tax benefits are settled with the parent consistent with the terms of a tax sharing agreement. | ||||||||||
A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Tax provision (benefit) at the U.S. federal statutory rate | $ | 196 | $ | 186 | $ | (48 | ) | |||
Dividends-received deduction | (135 | ) | (140 | ) | (201 | ) | ||||
Foreign related investments | (7 | ) | (9 | ) | (15 | ) | ||||
Valuation Allowance | — | — | (56 | ) | ||||||
Other | (5 | ) | (1 | ) | (3 | ) | ||||
Income tax expense (benefit) | $ | 49 | $ | 36 | $ | (323 | ) | |||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
Collateralized Advances | |
The Company became a member of the Federal Home Loan Bank of Boston (“FHLBB”) in May 2011. Membership allows the Company access to collateralized advances, which may be used to support various spread-based business and enhance liquidity management. The Connecticut Department of Insurance (“CTDOI”) will permit the Company to pledge up to $1.25 billion in qualifying assets to secure FHLBB advances for 2014. The amount of advances that can be taken are dependent on the asset types pledged to secure the advances. The pledge limit is recalculated annually based on statutory admitted assets and capital and surplus. The Company would need to seek the prior approval of the CTDOI if there were a desire to exceed these limits. As of December 31, 2013 and 2012, the Company had no advances outstanding under the FHLBB facility. | |
Consumer Notes | |
The Company issued consumer notes through its Retail Investor Notes Program prior to 2009. A consumer note is an investment product distributed through broker-dealers directly to retail investors as medium-term, publicly traded fixed or floating rate, or a combination of fixed and floating rate, notes. Consumer notes are part of the Company’s spread-based business and proceeds are used to purchase investment products, primarily fixed rate bonds. Proceeds are not used for general operating purposes. Consumer notes maturities may extend up to 30 years and have contractual coupons based upon varying interest rates or indexes (e.g. consumer price index) and may include a call provision that allows the Company to extinguish the notes prior to its scheduled maturity date. Certain Consumer notes may be redeemed by the holder in the event of death. Redemptions are subject to certain limitations, including calendar year aggregate and individual limits. The aggregate limit is equal to the greater of $1 or 1% of the aggregate principal amount of the notes as of the end of the prior year. The individual limit is $250 thousand per individual. Derivative instruments are utilized to hedge the Company’s exposure to market risks in accordance with Company policy. | |
As of December 31, 2013, these consumer notes have interest rates ranging from 4% to 6% for fixed notes and, for variable notes, based on December 31, 2013 rates, either consumer price index plus 102 to 247 basis points, or indexed to the S&P 500, Dow Jones Industrials, or the Nikkei 225. The aggregate maturities of Consumer Notes are as follows: $14 in 2014, $32 in 2015, $18 in 2016, $12 in 2017 and $8 thereafter. For 2013, 2012 and 2011, interest credited to holders of consumer notes was $6, $10 and $15, respectively. |
Statutory_Results
Statutory Results | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Insurance [Abstract] | ' | |||||||||
Statutory Results | ' | |||||||||
Statutory Results | ||||||||||
The domestic insurance subsidiaries of the Company prepare their statutory financial statements in conformity with statutory accounting practices prescribed or permitted by the applicable state insurance department which vary materially from U.S. GAAP. Prescribed statutory accounting practices include publications of the National Association of Insurance Commissioners (“NAIC”), as well as state laws, regulations and general administrative rules. The differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP vary between domestic and foreign jurisdictions. The principal differences are that statutory financial statements do not reflect deferred policy acquisition costs and limit deferred income taxes, life benefit reserves predominately use interest rate and mortality assumptions prescribed by the NAIC, bonds are generally carried at amortized cost and reinsurance assets and liabilities are presented net of reinsurance. | ||||||||||
The statutory net income (loss) and surplus was as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Combined statutory net income (loss) | $ | 1,290 | $ | 927 | $ | (669 | ) | |||
Statutory capital and surplus | $ | 5,005 | $ | 5,016 | $ | 5,920 | ||||
Statutory accounting practices do not consolidate the net income (loss) of subsidiaries as performed under U.S. GAAP. Therefore, the combined statutory net income (loss) above presents the total statutory net income of the Company and its other insurance subsidiaries to present a comparable statutory net income (loss). | ||||||||||
Regulatory Capital Requirements | ||||||||||
The Company's and its U.S. insurance companies' states of domicile impose risk-based capital (“RBC”) requirements. The requirements provide a means of measuring the minimum amount of statutory capital and surplus, referred to collectively as capital, appropriate for an insurance company to support its overall business operations based on its size and risk profile. Regulatory compliance is determined by a ratio of a company's total adjusted capital (“TAC”) to its authorized control level RBC (“ACL RBC”). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is two times the ACL RBC (“Company Action Level”). The adequacy of a company's capital is determined by the ratio of a company's TAC to its Company Action Level (known as the RBC ratio). The Company and all of its operating insurance subsidiaries had RBC ratios in excess of the minimum levels required by the applicable insurance regulations. In aggregate, the Company and its domestic life insurance subsidiaries maintain an RBC ratio for the group in excess of 400% of Company Action Level as of December 31, 2013 and 2012. The reporting of RBC ratios is not intended for the purpose of ranking any company or for use in connection with any marketing, advertising of promotional activities. | ||||||||||
Dividend Restrictions | ||||||||||
Dividends to the Company from its insurance subsidiaries are restricted, as is the ability of the Company to pay dividends to its parent company. Future dividend decisions will be based on, and affected by, a number of factors, including the operating results and financial requirements of the Company on a stand-alone basis and the impact of regulatory restrictions. | ||||||||||
The payment of dividends by Connecticut-domiciled insurers is limited under the insurance holding company laws of Connecticut. These laws require notice to and approval by the state insurance commissioner for the declaration or payment of any dividend, which, together with other dividends or distributions made within the preceding twelve months, exceeds the greater of (i) 10% of the insurer’s policyholder surplus as of December 31 of the preceding year or (ii) net income (or net gain from operations, if such company is a life insurance company) for the twelve-month period ending on the thirty-first day of December last preceding, in each case determined under statutory insurance accounting principles. In addition, if any dividend of a Connecticut-domiciled insurer exceeds the insurer’s earned surplus, it requires the prior approval of the Connecticut Insurance Commissioner. The insurance holding company laws of the other jurisdictions in which the Company’s insurance subsidiaries are incorporated (or deemed commercially domiciled) generally contain similar (although in certain instances somewhat more restrictive) limitations on the payment of dividends. | ||||||||||
The Company’s subsidiaries are permitted to pay up to a maximum of approximately $1 billion in dividends in 2014 without prior approval from the applicable insurance commissioner. With respect to dividends to its parent, the Company’s dividend limitation under the holding company laws of Connecticut is $919 in 2014. However, because the Company’s earned surplus is negative as of December 31, 2013, the Company will not be permitted to pay any dividends to its parent in 2014 without prior approval from the Connecticut Insurance Commissioner until such time as earned surplus becomes positive. On February 5, 2013 the Company received approval from the State of Connecticut Insurance Department to receive a $1.1 billion extraordinary dividend from its Connecticut domiciled life insurance subsidiaries, and to pay a $1.2 billion extraordinary dividend to its parent company. These dividends were received and paid on February 22, 2013. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension Plans, Postretirement, Health Care and Life Insurance Benefit and Savings Plans | ' |
Pension Plans, Postretirement, Health Care and Life Insurance Benefit and Savings Plans | |
Pension Plans | |
Hartford Life's employees are included in The Hartford's non-contributory defined benefit pension and postretirement health care and life insurance benefit plans. Effective December 31, 2012, The Hartford amended the defined benefit pension to freeze participation and benefit accruals. Also, The Hartford amended its postretirement health care and life insurance benefit plans for all current employees to no longer provide subsidized coverage for current employees who retire on or after January 1, 2014. | |
Defined benefit pension expense/(income), postretirement health care and life insurance benefits expense/(income) allocated by The Hartford to the Company, was $(1), $(3) and $45 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Investment and Savings Plan | |
Substantially all U.S. employees of the Company are eligible to participate in The Hartford Investment and Savings Plan under which designated contributions may be invested in common stock of The Hartford or certain other investments. The Hartford's contributions include a non-elective contribution of 2% of eligible compensation and a dollar-for-dollar matching contribution of up to 6.0% of eligible compensation contributed by the employee each pay period. The Hartford also maintains a non-qualified savings plan, The Hartford Excess Savings Plan, with the same level of contributions, with respect to employee compensation in excess of the limit that can be recognized under the tax-qualified Investment and Savings Plan. Eligible compensation includes overtime and bonuses but is limited to a total, for the Investment and Savings Plan and Excess Savings Plan combined, of $1 annually. | |
Prior to January 1, 2013, the contributions were matched, up to 3.0% of base salary. In 2012, employees who had earnings of less than $110 thousand also received a contribution of 1.5% of base salary and employees whose prior year earnings were more than $110 thousand received a contribution of 0.5% of base salary. The cost to Hartford Life for this plan was approximately $7, $10 and $9 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock Compensation Plans | ' |
Stock Compensation Plans | |
The Hartford has three primary stock-based compensation plans. The Company is included in these plans and has been allocated compensation expense of $11, $32 and $14 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company’s income tax benefit recognized for stock-based compensation plans was $4, $11 and $5 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company did not capitalize the cost of stock-based compensation. |
Transactions_with_Affiliates
Transactions with Affiliates | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Transactions with Affiliates | ' | |||||||||
Parent Company Transactions | ||||||||||
Transactions of the Company with Hartford Fire Insurance Company, Hartford Holdings and its affiliates relate principally to tax settlements, reinsurance, insurance coverage, rental and service fees, payment of dividends and capital contributions. In addition, an affiliated entity purchased group annuity contracts from the Company to fund structured settlement periodic payment obligations assumed by the affiliated entity as part of claims settlements with property casualty insurance companies and self-insured entities. As of December 31, 2013 and 2012, the Company had $54 and $53 of reserves for claim annuities purchased by affiliated entities. For the years ended December 31, 2013, 2012, and 2011, the Company recorded earned premiums of $8, $28, and $12 for these intercompany claim annuities. In 2008, the Company issued a payout annuity to an affiliate for $2.2 billion of consideration. The Company will pay the benefits associated with this payout annuity over 12 years. | ||||||||||
Substantially all general insurance expenses related to the Company, including rent and employee benefit plan expenses are initially paid by The Hartford. Direct expenses are allocated to the Company using specific identification, and indirect expenses are allocated using other applicable methods. Indirect expenses include those for corporate areas which, depending on type, are allocated based on either a percentage of direct expenses or on utilization. | ||||||||||
Investment advisory agreements between the Company's Mutual Funds subsidiaries and HL Investment Advisors, LLC, an indirect subsidiary of the Company, were terminated effective December 31, 2012 in connection with HLA's reorganization of its Mutual Funds business. The Company no longer has any significant continuing involvement in HLI's Mutual Funds business. | ||||||||||
The Company has issued a guarantee to retirees and vested terminated employees (“Retirees”) of The Hartford Retirement Plan for U.S. Employees (“the Plan”) who retired or terminated prior to January 1, 2004. The Plan is sponsored by The Hartford. The guarantee is an irrevocable commitment to pay all accrued benefits which the Retiree or the Retiree’s designated beneficiary is entitled to receive under the Plan in the event the Plan assets are insufficient to fund those benefits and The Hartford is unable to provide sufficient assets to fund those benefits. The Company believes that the likelihood that payments will be required under this guarantee is remote. | ||||||||||
In 1990, Hartford Fire guaranteed the obligations of the Company with respect to life, accident and health insurance and annuity contracts issued after January 1, 1990. The guarantee was issued to provide an increased level of security to potential purchasers of HLIC’s products. Although the guarantee was terminated in 1997, it still covers policies that were issued from 1990 to 1997. As of December 31, 2013 and 2012, no recoverables have been recorded for this guarantee, as the Company was able to meet these policyholder obligations. | ||||||||||
Reinsurance Assumed from Affiliates | ||||||||||
Prior to June 1, 2009, yen and U.S. dollar based fixed market value adjusted (“MVA”) annuity products, written by HLIKK, were sold to customers in Japan. HLIKK, a wholly owned Japanese subsidiary of Hartford Life, Inc., reinsured to the Company in-force and prospective MVA annuities sold from September 1, 2004 to June 1, 2009. As of December 31, 2013 and 2012, $1.5 billion and $2.1 billion, respectively, of the account value had been assumed by the Company. | ||||||||||
HLAI assumed from HLIKK GMDB on covered contracts that have an associated GMIB rider in force on or after July 31, 2006 and GMIB riders issued on or after April 1, 2005. HLAI assumed certain in-force and prospective GMAB, GMIB and GMDB riders issued on or after February 5, 2007 by HLIKK. HLAI assumed certain in-force and prospective GMIB and GMDB riders issued on or after February 1, 2008 by HLIKK. HLAI assumed certain in-force and prospective GMDB riders issued on or after April 1, 2005 by HLIKK. | ||||||||||
The GMDB reinsurance is accounted for as a Death Benefit and Other Insurance Benefit Reserve which is not reported at fair value. The liability for the assumed GMDB reinsurance was $0 and $22 and the net amount at risk for the assumed GMDB reinsurance was $0.2 billion and $2.7 billion at December 31, 2013 and 2012, respectively. | ||||||||||
While the form of the agreement between HLAI and HLIKK for the GMIB business is reinsurance, in substance and for accounting purposes the agreement is a free standing derivative. As such, the reinsurance agreement for the GMIB business is recorded at fair value on the Company’s balance sheet, with prospective changes in fair value recorded in net realized capital gains (losses) in net income (loss). The fair value of the GMIB liability was $0.5 billion and $1.8 billion at December 31, 2013 and 2012, respectively. | ||||||||||
As of December 31, 2012, HLAI had a reinsurance agreement with Hartford Life Limited, ("HLL"), a wholly owned UK subsidiary of HLAI, that assumed 100% of the risks associated with GMDB and GMWB written by and in-force with HLL as of November 1, 2010. The liability for the assumed GMDB reinsurance was $4 and the net amount at risk for the assumed GMDB reinsurance was $42, as of December 31, 2012. On December 12, 2013, the Company completed the sale of HLIL in a cash transaction to Columbia Insurance Company, a Berkshire Hathaway company. For further information concerning this transaction, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | ||||||||||
While the form of the agreements between HLAI and HLIKK for the GMAB/GMWB business is reinsurance, in substance and for accounting purposes these agreements are free standing derivatives. As such, the reinsurance agreements for the GMAB/GMWB business are recorded at fair value on the Company’s Consolidated Balance Sheets, with prospective changes in fair value recorded in net realized capital gains (losses) in net income (loss). The fair value of the GMAB/GMWB liability was $4 and $0 at December 31, 2013 and 2012, respectively. | ||||||||||
Reinsurance Ceded to Affiliates | ||||||||||
HLAI has a modified coinsurance (“modco”) and coinsurance with funds withheld reinsurance agreement with WRR. HLAI cedes to WRR variable annuity contracts, associated riders, and payout annuities written by HLAI; annuity contracts and associated riders assumed by HLAI under unaffiliated reinsurance agreements; GMAB, GMIB riders and GMDB risks assumed by HLAI from HLIKK; and, up until the sale of HLL on December 12, 2013, GMDB and GMWB riders assumed by HLAI from HLL. | ||||||||||
Under modco, the assets and the liabilities, and under coinsurance with funds withheld, the assets, associated with the reinsured business will remain on the consolidated balance sheet of HLIC in segregated portfolios, and WRR will receive the economic risks and rewards related to the reinsured business through modco and funds withheld adjustments. These adjustments are recorded as an adjustment to operating expenses. | ||||||||||
The impact of this transaction on the Company’s Consolidated Statements of Operations is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Earned premiums | $ | (31 | ) | $ | (58 | ) | $ | (61 | ) | |
Net realized gains (losses) [1] | (1,665 | ) | (2,130 | ) | 483 | |||||
Total revenues | (1,696 | ) | (2,188 | ) | 422 | |||||
Benefits, losses and loss adjustment expenses | (8 | ) | (55 | ) | (50 | ) | ||||
Insurance operating costs and other expenses | (1,158 | ) | (1,442 | ) | 836 | |||||
Total expenses | (1,166 | ) | (1,497 | ) | 786 | |||||
Loss before income taxes | (530 | ) | (691 | ) | (364 | ) | ||||
Income tax benefit | (185 | ) | (242 | ) | (127 | ) | ||||
Net loss | $ | (345 | ) | $ | (449 | ) | $ | (237 | ) | |
[1] Amounts represent the change in valuation of the derivative associated with this transaction. | ||||||||||
The Company's Consolidated Balance Sheets include a modco reinsurance recoverable and a deposit liability, as well as a net reinsurance recoverable that is comprised of an embedded derivative. The balance of the modco reinsurance recoverable, deposit liability and net reinsurance recoverable were $129, $638, $495, respectively, at December 31, 2013 and $1.3 billion, $527, $900, respectively, at December 31, 2012. | ||||||||||
Champlain Life Reinsurance Company | ||||||||||
Effective November 1, 2007, HLAI entered into a modco and coinsurance with funds withheld agreement with Champlain Life Reinsurance Company ("Champlain Life"), an affiliate captive insurance company, to provide statutory surplus relief for certain life insurance policies. The agreement was accounted for as a financing transaction in accordance with U.S. GAAP. Simultaneous with the sale of the Individual Life business to Prudential, HLAI recaptured the business assumed by Champlain Life. As a result, on January 2, 2013, HLAI was relieved of its funds withheld obligation to Champlain Life of $691; HLAI paid a recapture fee of $347 to Champlain Life; and, HLAI recognized a pre-tax gain of $344 ($224 after-tax). HLAI simultaneously ceded the recaptured reserves to Prudential and recognized the gain on recapture as part of the reinsurance loss on disposition. |
Restructuring_and_Other_Costs
Restructuring and Other Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Restructuring, Severance and Other Costs [Abstract] | ' | ||||||||||||
Restructuring and Other Costs | ' | ||||||||||||
Restructuring and Other Costs | |||||||||||||
As a result of a strategic business realignment announced in 2012, The Hartford is currently focusing on its Property & Casualty, Group Benefits and Mutual Funds businesses. In addition, the Company implemented restructuring activities in 2011 across several areas aimed at reducing overall expense levels. The Company intends to substantially complete the related restructuring activities over the next 24 months. For further discussion of the Company's strategic business realignment and related business disposition transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |||||||||||||
Termination benefits related to workforce reductions and lease and other contract terminations have been accrued through December 31, 2013. Additional costs, mainly severance benefits and other related costs and professional fees, expected to be incurred subsequent to December 31, 2013, and asset impairment charges, if any, will be expensed as appropriate. | |||||||||||||
In 2013, The Hartford initiated a plan to consolidate its real estate operations in Connecticut, including the intention to exit certain facilities and relocate employees. The consolidation of real estate in Connecticut is consistent with The Hartford's strategic business realignment and follows the completion of sales of the Retirement Plans and Individual Life businesses. Asset related charges will be incurred over the remaining estimated useful life of facilities, and relocation and other maintenance charges will be recognized as incurred. | |||||||||||||
Restructuring and other costs are expected to approximate $147, pre-tax. As the Company executes on its operational and strategic initiatives, the Company's estimate of and actual costs incurred for restructuring activities may differ from these estimates. | |||||||||||||
Restructuring and other costs, pre-tax incurred by the Company in connection with these activities are as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Severance benefits and related costs | $ | 7 | $ | 93 | |||||||||
Professional fees | 15 | 23 | |||||||||||
Asset impairment charges | 5 | 4 | |||||||||||
Total restructuring and other costs | $ | 27 | $ | 120 | |||||||||
There were no restructuring and other costs incurred by the Company in 2011. | |||||||||||||
Changes in the accrued restructuring liability balance included in other liabilities in the Company's Consolidated Balance Sheets are as follows: | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
Severance Benefits and Related Costs | Professional Fees | Asset Impairment Charges | Total Restructuring and Other Costs | ||||||||||
Balance, beginning of period | $ | 31 | $ | — | $ | — | $ | 31 | |||||
Accruals/provisions | 7 | 15 | 5 | 27 | |||||||||
Payments/write-offs | (37 | ) | (15 | ) | (5 | ) | (57 | ) | |||||
Balance, end of period | $ | 1 | $ | — | $ | — | $ | 1 | |||||
For the year ended December 31, 2012 | |||||||||||||
Severance Benefits and Related Costs | Professional Fees | Asset Impairment Charges | Total Restructuring and Other Costs | ||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | |||||
Accruals/provisions | 93 | 23 | 4 | 120 | |||||||||
Payments/write-offs | (62 | ) | (23 | ) | (4 | ) | (89 | ) | |||||
Balance, end of period | $ | 31 | $ | — | $ | — | $ | 31 | |||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||||
Changes in AOCI, net of tax and DAC, by component consist of the following: | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | 1,752 | $ | 258 | $ | (23 | ) | $ | 1,987 | ||||
OCI before reclassifications | (352 | ) | (94 | ) | 23 | (423 | ) | ||||||
Amounts reclassified from AOCI | (905 | ) | (85 | ) | — | (990 | ) | ||||||
Net OCI | (1,257 | ) | (179 | ) | 23 | (1,413 | ) | ||||||
Ending balance | $ | 495 | $ | 79 | $ | — | $ | 574 | |||||
For the year ended December 31, 2012 | |||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | 632 | $ | 368 | $ | (47 | ) | 953 | |||||
OCI before reclassifications | 1,084 | 6 | 24 | 1,114 | |||||||||
Amounts reclassified from AOCI | 36 | (116 | ) | — | (80 | ) | |||||||
Net OCI | 1,120 | (110 | ) | 24 | 1,034 | ||||||||
Ending balance | $ | 1,752 | $ | 258 | $ | (23 | ) | $ | 1,987 | ||||
For the year ended December 31, 2011 | |||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | (542 | ) | $ | 265 | $ | (45 | ) | (322 | ) | |||
OCI before reclassifications | 1,223 | 156 | (2 | ) | 1,377 | ||||||||
Amounts reclassified from AOCI | (49 | ) | (53 | ) | — | (102 | ) | ||||||
Net OCI | 1,174 | 103 | (2 | ) | 1,275 | ||||||||
Ending balance | $ | 632 | $ | 368 | $ | (47 | ) | $ | 953 | ||||
Reclassifications from AOCI consist of the following: | |||||||||||||
Amount Reclassified from AOCI | |||||||||||||
AOCI | For the year ended December 31, 2013 | For the year ended December 31, 2012 | For the year ended December 31, 2011 | Affected Line Item in the Consolidated Statement of Operations | |||||||||
Net Unrealized Gain on Securities | |||||||||||||
Available-for-sale securities [1] | $ | 1,392 | $ | (55 | ) | $ | 75 | Net realized capital gains (losses) | |||||
1,392 | (55 | ) | 75 | Total before tax | |||||||||
487 | (19 | ) | 26 | Income tax expense | |||||||||
$ | 905 | $ | (36 | ) | $ | 49 | Net income | ||||||
Net Gains on Cash-Flow Hedging Instruments | |||||||||||||
Interest rate swaps [2] | $ | 70 | $ | 85 | $ | 6 | Net realized capital gains (losses) | ||||||
Interest rate swaps | 57 | 97 | 77 | Net investment income | |||||||||
Foreign currency swaps | 4 | (4 | ) | (1 | ) | Net realized capital gains (losses) | |||||||
131 | 178 | 82 | Total before tax | ||||||||||
46 | 62 | 29 | Income tax expense | ||||||||||
$ | 85 | $ | 116 | $ | 53 | Net income | |||||||
Total amounts reclassified from AOCI | $ | 990 | $ | 80 | $ | 102 | Net income | ||||||
[1] Includes $1.5 billion of net unrealized gains on securities relating to the sales of the Retirement Plans and Individual Life businesses. | |||||||||||||
[2] Includes $71 of net gains on cash flow hedging instruments relating to the sales of the Retirement Plans and Individual Life businesses. | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ||||||||||||
Reclassificaiton from A.O.C.I [Table Text Block] | ' | ||||||||||||
[1] Includes $1.5 billion of net unrealized gains on securities relating to the sales of the Retirement Plans and Individual Life businesses. | |||||||||||||
[2] Includes $71 of net gains on cash flow hedging instruments relating to the sales of the Retirement Plans and Individual Life businesses. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||
Discontinued Operations | ' | |||||||||
Discontinued Operations | ||||||||||
On December 12, 2013, the Company completed the sale of HLIL, an indirect wholly-owned subsidiary of the Company. For further information regarding the sale of HLIL, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | ||||||||||
On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. Following the reorganization, the Company will no longer have any significant continuing involvement in HLI's Mutual Funds business. For further discussion of the reorganization of the Mutual Funds business, see Note 1 - Basis of Presentation and Significant Accounting Policies and Note 7 - Goodwill of Notes to Consolidated Financial Statements. | ||||||||||
The Company does not expect these transactions to have a material impact on the Company’s future earnings. The results of operations reflected as discontinued operations in the Consolidated Statements of Operations, consisting of amounts related to HLIL and the Company's Mutual Funds business, are as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
Earned Premiums | $ | (23 | ) | $ | — | $ | — | |||
Fee income and other | 14 | 563 | 609 | |||||||
Net investment income (loss) | ||||||||||
Securities available-for-sale and other | (3 | ) | 10 | 8 | ||||||
Equity securities, trading | 139 | 201 | (14 | ) | ||||||
Total net investment income (loss) | 136 | 211 | (6 | ) | ||||||
Net realized capital gains (losses) | (14 | ) | 68 | 78 | ||||||
Total revenues | 113 | 842 | 681 | |||||||
Benefits, losses and expenses | ||||||||||
Benefits, losses and loss adjustment expenses | 2 | — | (1 | ) | ||||||
Benefits, losses and loss adjustment expenses - returns credited on international variable annuity | 139 | 201 | (14 | ) | ||||||
Amortization of DAC | — | 35 | 47 | |||||||
Insurance operating costs and other expenses | (33 | ) | 410 | 541 | ||||||
Goodwill impairment | — | 149 | — | |||||||
Total benefits, losses and expenses | 108 | 795 | 573 | |||||||
Income (loss) before income taxes | 5 | 47 | 108 | |||||||
Income tax expense (benefit) | (5 | ) | (14 | ) | 50 | |||||
Income (loss) from operations of discontinued operations, net of tax | 10 | 61 | 58 | |||||||
Net realized capital losses on disposal, net of tax | (51 | ) | — | — | ||||||
Income (loss) from discontinued operations, net of tax | $ | (41 | ) | $ | 61 | $ | 58 | |||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Quarterly Results (Unaudited) | ' | ||||||||||||||||||||||||
Quarterly Results (Unaudited) | |||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Total revenues | $ | 2,267 | $ | 198 | $ | 229 | $ | 2,110 | $ | 804 | $ | 1,170 | $ | 335 | $ | 626 | |||||||||
Total benefits, losses and expenses | 1,754 | (60 | ) | 271 | 2,014 | 550 | 948 | 519 | 671 | ||||||||||||||||
Income (loss) from continuing operations, net of tax | 367 | 202 | 11 | 93 | 202 | 173 | (68 | ) | 27 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 19 | 86 | (46 | ) | (6 | ) | (1 | ) | 30 | (13 | ) | (49 | ) | ||||||||||||
Net income (loss) | 386 | 288 | (35 | ) | 87 | 201 | 203 | (81 | ) | (22 | ) | ||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 6 | (1 | ) | — | — | — | — | — | 3 | ||||||||||||||||
Net income (loss) attributable to Hartford Life Insurance Company | $ | 380 | $ | 289 | $ | (35 | ) | $ | 87 | $ | 201 | $ | 203 | $ | (81 | ) | $ | (25 | ) | ||||||
Schedule_I_Summary_of_Investme
Schedule I - Summary of Investments - Other Than Investments in Affiliates | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | ' | |||||||||
Summary of Investments - Other Than Investments in Affiliates | ' | |||||||||
SCHEDULE I | ||||||||||
SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN AFFILIATES | ||||||||||
($ in millions) | ||||||||||
As of December 31, 2013 | ||||||||||
Type of Investment | Cost | Fair | Amount at | |||||||
Value | which shown on | |||||||||
Balance Sheet | ||||||||||
Fixed maturities | ||||||||||
Bonds and notes | ||||||||||
U.S. government and government agencies and authorities (guaranteed and sponsored) | $ | 3,714 | $ | 3,728 | $ | 3,728 | ||||
States, municipalities and political subdivisions | 988 | 965 | 965 | |||||||
Foreign governments | 1,267 | 1,177 | 1,177 | |||||||
Public utilities | 3,368 | 3,579 | 3,579 | |||||||
All other corporate bonds | 12,545 | 13,338 | 13,338 | |||||||
All other mortgage-backed and asset-backed securities | 5,306 | 5,376 | 5,376 | |||||||
Total fixed maturities, available-for-sale | 27,188 | 28,163 | 28,163 | |||||||
Fixed maturities, at fair value using fair value option | 901 | 791 | 791 | |||||||
Total fixed maturities | 28,089 | 28,954 | 28,954 | |||||||
Equity securities | ||||||||||
Common stocks | ||||||||||
Industrial, miscellaneous and all other | 241 | 254 | 254 | |||||||
Non-redeemable preferred stocks | 121 | 118 | 118 | |||||||
Total equity securities, available-for-sale | 362 | 372 | 372 | |||||||
Equity securities, trading | 10 | 12 | 12 | |||||||
Total equity securities | 372 | 384 | 384 | |||||||
Mortgage loans | 3,470 | 3,519 | 3,470 | |||||||
Policy loans | 1,416 | 1,476 | 1,416 | |||||||
Investments in partnerships and trusts | 1,329 | 1,329 | 1,329 | |||||||
Futures, options and miscellaneous | 927 | 270 | 270 | |||||||
Short-term investments | 1,960 | 1,952 | 1,952 | |||||||
Total investments | $ | 37,563 | $ | 37,884 | $ | 37,775 | ||||
Schedule_IV_Schedule_of_Reinsu
Schedule IV - Schedule of Reinsurance | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | ||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies | ' | ||||||||||||||
SCHEDULE IV | |||||||||||||||
REINSURANCE | |||||||||||||||
(In millions) | |||||||||||||||
Gross | Ceded to | Assumed | Net | Percentage of | |||||||||||
Amount | Other | From Other | Amount | Amount | |||||||||||
Companies | Companies | Assumed | |||||||||||||
to Net | |||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||
Life insurance in force | $ | 318,652 | $ | 241,684 | $ | 815 | $ | 77,783 | 1 | % | |||||
Insurance revenues | |||||||||||||||
Life insurance and annuities | $ | 3,238 | $ | 1,714 | $ | 13 | $ | 1,537 | 1 | % | |||||
Accident and health insurance | 264 | 155 | — | 109 | — | % | |||||||||
Total insurance revenues | $ | 3,502 | $ | 1,869 | $ | 13 | $ | 1,646 | 1 | % | |||||
For the year ended December 31, 2012 | |||||||||||||||
Life insurance in force | $ | 355,164 | $ | 151,982 | $ | 781 | $ | 203,963 | — | % | |||||
Insurance revenues | |||||||||||||||
Life insurance and annuities | $ | 3,441 | $ | 517 | $ | 8 | $ | 2,932 | — | % | |||||
Accident and health insurance | 298 | 181 | — | 117 | — | % | |||||||||
Total insurance revenues | $ | 3,739 | $ | 698 | $ | 8 | $ | 3,049 | — | % | |||||
For the year ended December 31, 2011 | |||||||||||||||
Life insurance in force | $ | 316,817 | $ | 130,029 | $ | 1,941 | $ | 188,729 | 1 | % | |||||
Insurance revenues | |||||||||||||||
Life insurance and annuities | $ | 3,842 | $ | 531 | $ | 13 | $ | 3,324 | — | % | |||||
Accident and health insurance | 305 | 202 | — | 103 | — | % | |||||||||
Total insurance revenues | $ | 4,147 | $ | 733 | $ | 13 | $ | 3,427 | — | % | |||||
Schedule_V_Valuation_and_Quali
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Account | ' | |||||||||||||||
SCHEDULE V | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(In millions) | ||||||||||||||||
Balance | Charged to | Translation | Write-offs/ | Balance | ||||||||||||
January 1, | Costs and | Adjustment | Payments/ | December 31, | ||||||||||||
Expenses | Other | |||||||||||||||
2013 | ||||||||||||||||
Valuation allowance on deferred tax asset | $ | 53 | $ | — | $ | — | $ | (53 | ) | $ | — | |||||
Valuation allowance on mortgage loans | 14 | 2 | — | (4 | ) | 12 | ||||||||||
2012 | ||||||||||||||||
Valuation allowance on deferred tax asset | 78 | (25 | ) | — | — | 53 | ||||||||||
Valuation allowance on mortgage loans | 23 | (4 | ) | — | (5 | ) | 14 | |||||||||
2011 | ||||||||||||||||
Valuation allowance on deferred tax asset | 131 | (53 | ) | — | — | 78 | ||||||||||
Valuation allowance on mortgage loans | 62 | (25 | ) | — | (14 | ) | 23 | |||||||||
Subsequent_Event_Notes
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
20. Subsequent Events | |
Effective April 1, 2014, HLAI terminated its reinsurance agreement with White River Life Reinsurance ("WRR"), following receipt of approval from the State of Connecticut Insurance Department ("CTDOI") and Vermont Department of Financial Regulation. As a result, the Company reclassified $310 in aggregate reserves for annuity contracts from funds withheld within Other liabilities to Other policyholder funds and benefits payable. The Company recognized a gain of approximately $215 resulting from the termination of derivatives associated with the reinsurance transaction. In addition, the Company received a capital contribution of approximately $1 billion from The Hartford in support of this transaction as the economics related to HLAI's business are no longer reinsured to WRR. This capital contribution was funded by WRR paying off the $655 surplus note and returning approximately $345 in capital to The Hartford. | |
Effective March 3, 2014 The Hartford made HLA the single nationwide underwriting company for its Group Benefits business by capitalizing HLA to support the Group Benefits business and separating it from the legal entities that support The Hartford's Talcott Resolution operating segment. On January 30, 2014, The Hartford received approval from the CTDOI for HLAI and the Company to dividend approximately $800 of cash and invested assets to HLA and this dividend was paid on February 27, 2014. All of the issued and outstanding equity of the Company was then distributed from HLA to HLI. | |
On April 28, 2014, HLI entered into a Stock Purchase Agreement ("Agreement") to sell to ORIX Life Insurance Corporation ("Buyer"), a subsidiary of ORIX Corporation, a Japanese company, all of the issued and outstanding equity of HLIKK. | |
Under the terms of the Agreement, and subject to regulatory approval, on closing HLIKK will recapture certain risks reinsured to the Company and HLAI by terminating intercompany agreements. Upon closing, Buyer will be responsible for all liabilities for the recaptured business. HLAI will, however, continue to be obligated for approximately $1.1 billion of fixed payout annuities related to the 3Win product formerly written by HLIKK. This recapture transaction is not expected to have a material impact on the Company’s condensed consolidated results of operations, financial position or liquidity. |
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Event [Line Items] | ' |
Subsequent Events [Text Block] | ' |
20. Subsequent Events | |
Effective April 1, 2014, HLAI terminated its reinsurance agreement with White River Life Reinsurance ("WRR"), following receipt of approval from the State of Connecticut Insurance Department ("CTDOI") and Vermont Department of Financial Regulation. As a result, the Company reclassified $310 in aggregate reserves for annuity contracts from funds withheld within Other liabilities to Other policyholder funds and benefits payable. The Company recognized a gain of approximately $215 resulting from the termination of derivatives associated with the reinsurance transaction. In addition, the Company received a capital contribution of approximately $1 billion from The Hartford in support of this transaction as the economics related to HLAI's business are no longer reinsured to WRR. This capital contribution was funded by WRR paying off the $655 surplus note and returning approximately $345 in capital to The Hartford. | |
Effective March 3, 2014 The Hartford made HLA the single nationwide underwriting company for its Group Benefits business by capitalizing HLA to support the Group Benefits business and separating it from the legal entities that support The Hartford's Talcott Resolution operating segment. On January 30, 2014, The Hartford received approval from the CTDOI for HLAI and the Company to dividend approximately $800 of cash and invested assets to HLA and this dividend was paid on February 27, 2014. All of the issued and outstanding equity of the Company was then distributed from HLA to HLI. | |
On April 28, 2014, HLI entered into a Stock Purchase Agreement ("Agreement") to sell to ORIX Life Insurance Corporation ("Buyer"), a subsidiary of ORIX Corporation, a Japanese company, all of the issued and outstanding equity of HLIKK. | |
Under the terms of the Agreement, and subject to regulatory approval, on closing HLIKK will recapture certain risks reinsured to the Company and HLAI by terminating intercompany agreements. Upon closing, Buyer will be responsible for all liabilities for the recaptured business. HLAI will, however, continue to be obligated for approximately $1.1 billion of fixed payout annuities related to the 3Win product formerly written by HLIKK. This recapture transaction is not expected to have a material impact on the Company’s condensed consolidated results of operations, financial position or liquidity. |
Basis_of_Presentation_and_Acco1
Basis of Presentation and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Hartford Life Insurance Company (together with its subsidiaries, “HLIC”, “Company”, “we” or “our”) is a provider of insurance and investment products in the United States (“U.S.”) and is a wholly-owned subsidiary of Hartford Life and Accident Insurance Company (“HLA”). Hartford Life, Inc., a Delaware corporation ("HLI") is the parent of HLA. The Hartford Financial Services Group, Inc. (“The Hartford”) is the ultimate parent of the Company. | |
On January 1, 2013, HLI completed the sale of its Retirement Plans business to Massachusetts Mutual Life Insurance Company ("MassMutual") and on January 2, 2013 HLI completed the sale of its Individual Life insurance business to The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. ("Prudential"). On December 12, 2013, the Company completed the sale of the U.K variable annuity business of Hartford Life International Limited ("HLIL"), an indirect wholly-owned subsidiary. As a result of this transaction, the operations of the Company's U.K. variable annuity business meet the criteria for reporting as discontinued operations as further discussed in Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. For further discussion of these and other such transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | |
On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under Hartford Funds Management Group, Inc., also a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. The Company effected the reorganization by distributing certain Mutual Funds subsidiaries to HLA in the form of a return of capital effective December 31, 2012. The reorganization was accounted for by the Company as a transfer of net assets at book value between entities under common control. | |
In connection with the reorganization of the Mutual Funds business, investment advisory agreements between the Company's Mutual Funds subsidiaries and HL Investment Advisors, LLC, an indirect subsidiary of the Company, were terminated effective December 31, 2012. Following the reorganization, Hartford Funds Management Company, LLC, an indirect subsidiary of HLI, will replace HL Investment Advisors, LLC as the investment advisor for The Hartford's mutual funds. The Mutual Funds reporting segment contributed less than 10% of the net income attributable to HLIC for the year ended December 31, 2012. The carrying value of the subsidiaries distributed was $203 and $116 as of December 31, 2012 and 2011, respectively. For further discussion of the reorganization of the Mutual Funds business, see Note 7 - Goodwill , Note 13 - Transactions with Affiliates, and Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements. | |
The Consolidated Financial Statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”), which differ materially from the accounting practices prescribed by various insurance regulatory authorities. | |
Consolidation | ' |
The Consolidated Financial Statements include the accounts of HLIC, companies in which the Company directly or indirectly has a controlling financial interest and those variable interest entities (“VIEs”) in which the Company is required to consolidate. Entities in which HLIC has significant influence over the operating and financing decisions but are not required to consolidate are reported using the equity method. For further discussions on VIEs, see Note 4 of Notes to Consolidated Financial Statements. Material intercompany transactions and balances between HLIC and its subsidiaries have been eliminated. | |
Discontinued Operations | ' |
The results of operations of a component of the Company that either has been disposed of or is classified as held-for-sale are reported in discontinued operations if the operations and cash flows of the component have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction and the Company will not have any significant continuing involvement in the operations of the component after the disposal transaction. | |
The Company is presenting the operations of certain businesses that meet the criteria for reporting as discontinued operations. Amounts for prior periods have been retrospectively reclassified. For information on the specific businesses and related impacts, see Note 17 - Discontinued Operations of Notes to Consolidated Financial Statements | |
Use of Estimates | ' |
The preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions 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 period. Actual results could differ from those estimates. | |
The most significant estimates include those used in determining estimated gross profits used in the valuation and amortization of assets and liabilities associated with variable annuity and other universal life-type contracts; evaluation of other-than-temporary impairments on available-for-sale securities and valuation allowances on investments; living benefits required to be fair valued; goodwill impairment; valuation of investments and derivative instruments; valuation allowance on deferred tax assets; and contingencies relating to corporate litigation and regulatory matters (see Note 12). The related accounting policies are summarized in the Significant Accounting Policies section of this footnote unless indicated otherwise herein. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the Consolidated Financial Statements. | |
Reclassifications | ' |
Certain reclassifications have been made to prior year financial information to conform to the current year presentation. | |
Segment Information | ' |
he Company currently conducts business in a single reporting segment comprised of business from the Company's U.S. annuity, international annuity, and institutional and private-placement life insurance businesses following the sale of the Retirement Plans and Individual Life businesses in January 2013. In addition, the Company no longer has a Mutual Funds reporting segment following the reorganization of its Mutual Funds business effective December 31, 2012. For further discussion of the Retirement Plans and Individual Life transactions, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. For further discussion of the reorganization of the Mutual Funds business, see the Basis of Presentation section of this footnote. The Company's determination that it operates in a single reporting segment is based on the fact that the Company's chief operating decision maker reviews the Company's financial performance at a consolidated level. | |
Revenue Recognition | ' |
For investment and universal life-type contracts, the amounts collected from policyholders are considered deposits and are not included in revenue. Fee income for universal life-type contracts consists of policy charges for policy administration, cost of insurance charges and surrender charges assessed against policyholders’ account balances and are recognized in the period in which services are provided. For the Company’s traditional life and group disability products premiums are recognized as revenue when due from policyholders. | |
Income Taxes | ' |
The Company recognizes taxes payable or refundable for the current year and deferred taxes for the tax consequences of differences between the financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. | |
The Company is included in The Hartford’s consolidated Federal income tax return. The Company and The Hartford have entered into a tax sharing agreement under which each member in the consolidated U.S. Federal income tax return will make payments between them such that, with respect to any period, the amount of taxes to be paid by the Company, subject to certain tax adjustments, is consistent with the “parent down” approach. Under this approach, the Company’s deferred tax assets and tax attributes are considered realized by it so long as the group is able to recognize (or currently use) the related deferred tax asset or attribute. Thus the need for a valuation allowance is determined at the consolidated return level rather than at the level of the individual entities comprising the consolidated group. | |
Dividends to Policyholders | ' |
Policyholder dividends are paid to certain life insurance policyholders. Policies that receive dividends are referred to as participating policies. Such dividends are accrued using an estimate of the amount to be paid based on underlying contractual obligations under policies and applicable state laws. | |
Participating policies were 2%, 5% and 2% of the total life insurance policies as of December 31, 2013, 2012, and 2011, respectively. Dividends to policyholders were $18, $20 and $17 for the years ended December 31, 2013, 2012, and 2011, respectively. There were no additional amounts of income allocated to participating policyholders. If limitations exist on the amount of net income from participating life insurance contracts that may be distributed to stockholder’s, the policyholder’s share of net income on those contracts that cannot be distributed is excluded from stockholder’s equity by a charge to operations and a credit to a liability. | |
Fair Value | ' |
The following financial instruments are carried at fair value in the Company’s Consolidated Financial Statements: fixed maturity and equity securities, available-for-sale (“AFS”); fixed maturities at fair value using fair value option (“FVO”); equity securities, trading; short-term investments; freestanding and embedded derivatives; certain limited partnerships and other alternative investments; separate account assets and certain other liabilities. For further discussion of fair value, see Note 3 - Fair Value Measurements of Notes to Consolidated Financial Statements. | |
Investments | ' |
Overview | |
The Company’s investments in fixed maturities include bonds, redeemable preferred stock and commercial paper. These investments, along with certain equity securities, which include common and non-redeemable preferred stocks, are classified as AFS and are carried at fair value. The after-tax difference from cost or amortized cost is reflected in stockholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (“AOCI”), after adjustments for the effect of deducting the life and pension policyholders’ share of the immediate participation guaranteed contracts and certain life and annuity deferred policy acquisition costs and reserve adjustments. Fixed maturities for which the Company elected the fair value option are classified as FVO and are carried at fair value with changes in value recorded in realized capital gains and losses on the Company's Consolidated Statements of Operations. The equity investments associated with the variable annuity products are recorded at fair value and are classified as trading with changes in fair value recorded in net investment income. Policy loans are carried at outstanding balance. Mortgage loans are recorded at the outstanding principal balance adjusted for amortization of premiums or discounts and net of valuation allowances. Short-term investments are carried at amortized cost, which approximates fair value. Limited partnerships and other alternative investments are reported at their carrying value with the change in carrying value primarily accounted for under the equity method and accordingly the Company’s share of earnings are included in net investment income; however, the Company also uses investment fund accounting applied to a wholly-owned fund of funds. Recognition of income related to limited partnerships and other alternative investment is delayed due to the availability of the related financial information, as private equity and other funds are generally on a three-month delay and hedge funds are on a one-month delay. Accordingly, income for the years ended December 31, 2013, 2012 and 2011 may not include the full impact of current year changes in valuation of the underlying assets and liabilities of the funds, which are generally obtained from the limited partnerships and other alternative investments’ general partners. Other investments primarily consist of derivatives instruments which are carried at fair value. | |
Recognition and Presentation of Other-Than-Temporary Impairments | |
The Company deems bonds and certain equity securities with debt-like characteristics (collectively “debt securities”) to be other-than-temporarily impaired (“impaired”) if a security meets the following conditions: a) the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, or b) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell or it is more likely than not the Company will be required to sell the security before a recovery in value, a charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security. For those impaired debt securities which do not meet the first condition and for which the Company does not expect to recover the entire amortized cost basis, the difference between the security’s amortized cost basis and the fair value is separated into the portion representing a credit other-than-temporary impairment (“impairment”), which is recorded in net realized capital losses, and the remaining impairment, which is recorded in OCI. Generally, the Company determines a security’s credit impairment as the difference between its amortized cost basis and its best estimate of expected future cash flows discounted at the security’s effective yield prior to impairment. The remaining non-credit impairment, which is recorded in OCI, is the difference between the security’s fair value and the Company’s best estimate of expected future cash flows discounted at the security’s effective yield prior to the impairment, which typically represents current market liquidity and risk premiums. The previous amortized cost basis less the impairment recognized in net realized capital losses becomes the security’s new cost basis. The Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. | |
The Company’s evaluation of whether a credit impairment exists for debt securities includes but is not limited to, the following factors: (a) changes in the financial condition of the security’s underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) changes in the financial condition, credit rating and near-term prospects of the issuer, (d) the extent to which the fair value has been less than the amortized cost of the security and (e) the payment structure of the security. The Company’s best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the security. The Company’s best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, and loan-to-value (“LTV”) ratios. In addition, for structured securities, the Company considers factors including, but not limited to, average cumulative collateral loss rates that vary by vintage year, commercial and residential property value declines that vary by property type and location and commercial real estate delinquency levels. | |
These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer and/or underlying collateral such as changes in the projections of the underlying property value estimates. | |
For equity securities where the decline in the fair value is deemed to be other-than-temporary, a charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the security’s new cost basis. The Company asserts its intent and ability to retain those equity securities deemed to be temporarily impaired until the price recovers. Once identified, these securities are systematically restricted from trading unless approved by investment and accounting professionals. The investment and accounting professionals will only authorize the sale of these securities based on predefined criteria that relate to events that could not have been reasonably foreseen. Examples of the criteria include, but are not limited to, the deterioration in the issuer’s financial condition, security price declines, a change in regulatory requirements or a major business combination or major disposition. | |
The primary factors considered in evaluating whether an impairment exists for an equity security include, but are not limited to: (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. | |
Mortgage Loan Valuation Allowances | |
The Company’s security monitoring process reviews mortgage loans on a quarterly basis to identify potential credit losses. Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. Criteria used to determine if an impairment exists include, but are not limited to: current and projected macroeconomic factors, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historic, current and projected delinquency rates and property values. These assumptions require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the borrower and/or underlying collateral such as changes in the projections of the underlying property value estimates. | |
For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate, (b) the loan’s observable market price or, most frequently, (c) the fair value of the collateral. A valuation allowance has been established for either individual loans or as a projected loss contingency for loans with an LTV ratio of 90% or greater and consideration of other credit quality factors, including DSCR. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the loans continue to perform under the original or restructured terms. Interest income ceases to accrue for loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. Loans may resume accrual status when it is determined that sufficient collateral exists to satisfy the full amount of the loan and interest payments, as well as when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received. | |
Net Realized Capital Gains and Losses | |
Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis, as well as changes in value associated with fixed maturities for which the fair value option was elected. Net realized capital gains and losses also result from fair value changes in derivatives contracts (both free-standing and embedded) that do not qualify, or are not designated, as a hedge for accounting purposes, ineffectiveness on derivatives that qualify for hedge accounting treatment, and the change in value of derivatives in certain fair-value hedge relationships and their associated hedged asset. Impairments and mortgage loan valuation allowances are recognized as net realized capital losses in accordance with the Company’s policies previously discussed. Foreign currency transaction remeasurements are also included in net realized capital gains and losses. | |
Net Investment Income | |
Interest income from fixed maturities and mortgage loans is recognized when earned on the constant effective yield method based on estimated timing of cash flows. The amortization of premium and accretion of discount for fixed maturities also takes into consideration call and maturity dates that produce the lowest yield. For securitized financial assets subject to prepayment risk, yields are recalculated and adjusted periodically to reflect historical and/or estimated future repayments using the retrospective method; however, if these investments are impaired, any yield adjustments are made using the prospective method. Prepayment fees on fixed maturities and mortgage loans are recorded in net investment income when earned. For equity securities, available-for-sale, dividends will be recognized as investment income on the ex-dividend date. Limited partnerships and other alternative investments primarily use the equity method of accounting to recognize the Company’s share of earnings; however, the Company also uses investment fund accounting applied to a wholly-owned fund of funds. For impaired debt securities, the Company accretes the new cost basis to the estimated future cash flows over the expected remaining life of the security by prospectively adjusting the security’s yield, if necessary. The Company’s non-income producing investments were not material for the years ended December 31, 2013, 2012 and 2011. | |
Net investment income on equity securities, trading, includes dividend income and the changes in market value of the securities associated with the variable annuity products. The returns on these policyholder-directed investments inure to the benefit of the variable annuity policyholders but the underlying funds do not meet the criteria for separate account reporting. Accordingly, these assets are reflected in the Company’s general account and the returns credited to the policyholders are reflected in interest credited, a component of benefits, losses and loss adjustment expenses. | |
Derivatives Instruments | ' |
Overview | |
The Company utilizes a variety of over-the-counter ("OTC") derivatives, including transactions cleared through a central clearing house ("OTC-cleared"), and exchange-traded derivative instruments as part of its overall risk management strategy. The types of instruments may include swaps, caps, floors, forwards, futures and options to achieve one of four Company-approved objectives: to hedge risk arising from interest rate, equity market, credit spread and issuer default, price or currency exchange rate risk or volatility; to manage liquidity; to control transaction costs; or to enter into replication transactions. | |
Interest rate, volatility, dividend, credit default and index swaps involve the periodic exchange of cash flows with other parties, at specified intervals, calculated using agreed upon rates or other financial variables and notional principal amounts. Generally, no cash or principal payments are exchanged at the inception of the contract. Typically, at the time a swap is entered into, the cash flow streams exchanged by the counterparties are equal in value. | |
Interest rate cap and floor contracts entitle the purchaser to receive from the issuer at specified dates, the amount, if any, by which a specified market rate exceeds the cap strike interest rate or falls below the floor strike interest rate, applied to a notional principal amount. A premium payment is made by the purchaser of the contract at its inception and no principal payments are exchanged. | |
Forward contracts are customized commitments that specify a rate of interest or currency exchange rate to be paid or received on an obligation beginning on a future start date and are typically settled in cash. | |
Financial futures are standardized commitments to either purchase or sell designated financial instruments, at a future date, for a specified price and may be settled in cash or through delivery of the underlying instrument. Futures contracts trade on organized exchanges. Margin requirements for futures are met by pledging securities or cash, and changes in the futures’ contract values are settled daily in cash. | |
Option contracts grant the purchaser, for a premium payment, the right to either purchase from or sell to the issuer a financial instrument at a specified price, within a specified period or on a stated date. | |
Foreign currency swaps exchange an initial principal amount in two currencies, agreeing to re-exchange the currencies at a future date, at an agreed upon exchange rate. There may also be a periodic exchange of payments at specified intervals calculated using the agreed upon rates and exchanged principal amounts. | |
The Company’s derivative transactions are used in strategies permitted under the derivative use plans required by the State of Connecticut and the State of New York insurance departments. | |
Accounting and Financial Statement Presentation of Derivative Instruments and Hedging Activities | |
Derivative instruments are recognized on the Consolidated Balance Sheets at fair value and are reported in Other Investments and Other Liabilities. For balance sheet presentation purposes, the Company has elected to offset the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty or under a master netting agreement, which provides the Company with the legal right of offset. | |
During 2013, the Company began clearing interest rate swap and certain credit default swap derivative transactions through central clearing houses. OTC-cleared derivatives require initial collateral at the inception of the trade in the form of cash or highly liquid collateral, such as U.S. Treasuries and government agency investments. Central clearing houses also require additional cash collateral as variation margin based on daily market value movements. For information on collateral, see the derivative collateral arrangements section in Note 4 - Investments and Derivative Instruments. In addition, OTC-cleared transactions include price alignment interest either received or paid on the variation margin, which is reflected in net investment income. The Company has also elected to offset the fair value amounts, income accruals and related cash collateral receivables and payables of OTC-cleared derivative instruments based on clearing house agreements. | |
On the date the derivative contract is entered into, the Company designates the derivative as (1) a hedge of the fair value of a recognized asset or liability (“fair value” hedge), (2) a hedge of the variability in cash flows of a forecasted transaction or of amounts to be received or paid related to a recognized asset or liability (“cash flow” hedge), (3) a hedge of a net investment in a foreign operation (“net investment” hedge) or (4) held for other investment and/or risk management purposes, which primarily involve managing asset or liability related risks and do not qualify for hedge accounting. | |
Fair Value Hedges | |
Changes in the fair value of a derivative that is designated and qualifies as a fair value hedge, including foreign-currency fair value hedges, along with the changes in the fair value of the hedged asset or liability that is attributable to the hedged risk, are recorded in current period earnings with any differences between the net change in fair value of the derivative and the hedged item representing the hedge ineffectiveness. Periodic cash flows and accruals of income/expense (“periodic derivative net coupon settlements”) are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Cash Flow Hedges | |
Changes in the fair value of a derivative that is designated and qualifies as a cash flow hedge, including foreign-currency cash flow hedges, are recorded in AOCI and are reclassified into earnings when the variability of the cash flow of the hedged item impacts earnings. Gains and losses on derivative contracts that are reclassified from AOCI to current period earnings are included in the line item in the consolidated statements of operations in which the cash flows of the hedged item are recorded. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Net Investment in a Foreign Operation Hedges | |
Changes in fair value of a derivative used as a hedge of a net investment in a foreign operation, to the extent effective as a hedge, are recorded in the foreign currency translation adjustments account within AOCI. Cumulative changes in fair value recorded in AOCI are reclassified into earnings upon the sale or complete, or substantially complete, liquidation of the foreign entity. Any hedge ineffectiveness is recorded immediately in current period earnings as net realized capital gains and losses. Periodic derivative net coupon settlements are recorded in the line item of the consolidated statements of operations in which the cash flows of the hedged item are recorded. | |
Other Investment and/or Risk Management Activities | |
The Company’s other investment and/or risk management activities primarily relate to strategies used to reduce economic risk or replicate permitted investments and do not receive hedge accounting treatment. Changes in the fair value, including periodic derivative net coupon settlements, of derivative instruments held for other investment and/or risk management purposes are reported in current period earnings as net realized capital gains and losses. | |
Hedge Documentation and Effectiveness Testing | |
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in fair value or cash flow of the hedged item. At hedge inception, the Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking each hedge transaction. The documentation process includes linking derivatives that are designated as fair value, cash flow, or net investment hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions and defining the effectiveness and ineffectiveness testing methods to be used. The Company also formally assesses both at the hedge’s inception and ongoing on a quarterly basis, whether the derivatives that are used in hedging transactions have been and are expected to continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. Hedge effectiveness is assessed primarily using quantitative methods as well as using qualitative methods. Quantitative methods include regression or other statistical analysis of changes in fair value or cash flows associated with the hedge relationship. Qualitative methods may include comparison of critical terms of the derivative to the hedged item. Hedge ineffectiveness of the hedge relationships are measured each reporting period using the “Change in Variable Cash Flows Method”, the “Change in Fair Value Method”, the “Hypothetical Derivative Method”, or the “Dollar Offset Method”. | |
Discontinuance of Hedge Accounting | |
The Company discontinues hedge accounting prospectively when (1) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (2) the derivative is de-designated as a hedging instrument; or (3) the derivative expires or is sold, terminated or exercised. | |
When hedge accounting is discontinued because it is determined that the derivative no longer qualifies as an effective fair-value hedge, the derivative continues to be carried at fair value on the balance sheet with changes in its fair value recognized in current period earnings. Changes in the fair value of the hedged item attributable to the hedged risk is no longer adjusted through current period earnings and the existing basis adjustment is amortized to earnings over the remaining life of the hedged item through the applicable earnings component associated with the hedged item. | |
When hedge accounting is discontinued because the Company becomes aware that it is not probable that the forecasted transaction will occur, the derivative continues to be carried on the balance sheet at its fair value, and gains and losses that were accumulated in AOCI are recognized immediately in earnings. | |
In other situations in which hedge accounting is discontinued on a cash-flow hedge, including those where the derivative is sold, terminated or exercised, amounts previously deferred in AOCI are reclassified into earnings when earnings are impacted by the variability of the cash flow of the hedged item. | |
Embedded Derivatives | |
The Company purchases and issues financial instruments and products that contain embedded derivative instruments. When it is determined that (1) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract, and (2) a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host for measurement purposes. The embedded derivative, which is reported with the host instrument in the consolidated balance sheets, is carried at fair value with changes in fair value reported in net realized capital gains and losses. | |
Credit Risk | |
Credit risk is defined as the risk of financial loss due to uncertainty of an obligor’s or counterparty’s ability or willingness to meet its obligations in accordance with agreed upon terms. Credit exposures are measured using the market value of the derivatives, resulting in amounts owed to the Company by its counterparties or potential payment obligations from the Company to its counterparties. The Company generally requires that OTC derivative contracts, other than certain forward contracts, be governed by International Swaps and Derivatives Association ("ISDA") agreements which are structured by legal entity and by counterparty, and permit right of offset. These agreements require daily collateral settlement based upon agreed upon thresholds. For purposes of daily derivative collateral maintenance, credit exposures are generally quantified based on the prior business day’s market value and collateral is pledged to and held by, or on behalf of, the Company to the extent the current value of the derivatives exceed the contractual thresholds. For the Company’s domestic derivative programs, the maximum uncollateralized threshold for a derivative counterparty for a single legal entity is $10. | |
Cash | ' |
Cash represents cash on hand and demand deposits with banks or other financial institutions. | |
Reinsurance | ' |
The Company cedes insurance to affiliated and unaffiliated insurers in order to limit its maximum losses and to diversify its exposures and provide statutory surplus relief. Such arrangements do not relieve the Company of its primary liability to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company also assumes reinsurance from other insurers. Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). If the ceded transactions do not provide risk transfer, the Company accounts for these transactions as financing transactions. | |
Reinsurance accounting is followed for ceded and assumed transactions that provide indemnification against loss or liability relating to insurance risk (i.e. risk transfer). To meet risk transfer requirements, a reinsurance agreement must include insurance risk, consisting of underwriting, investment, and timing risk, and a reasonable possibility of a significant loss to the reinsurer. If the ceded and assumed transactions do not meet risk transfer requirements, the Company accounts for these transactions as financing transactions. | |
Premiums, benefits, losses and loss adjustment expenses reflect the net effects of ceded and assumed reinsurance transactions. Included in other assets are prepaid reinsurance premiums, which represent the portion of premiums ceded to reinsurers applicable to the unexpired terms of the reinsurance agreements. Included in reinsurance recoverables are balances due from reinsurance companies for paid and unpaid losses and loss adjustment expenses and are presented net of an allowance for uncollectible reinsurance. | |
The Company reinsures certain of its risks to other reinsurers under yearly renewable term, coinsurance, and modified coinsurance arrangements, and variations thereof. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. | |
The Company evaluates the financial condition of its reinsurers and concentrations of credit risk. Reinsurance is placed with reinsurers that meet strict financial criteria established by the Company. The Company entered into two reinsurance transactions upon completion of the sales of its Retirement Plans and Individual Life businesses in January 2013. For further discussion of these transactions, see Note 2 - Business Dispositions and Note 5 - Reinsurance of Notes to Consolidated Financial Statements. | |
Deferred Policy Acquisition Costs and Present Value of Future Profits | ' |
Deferred policy acquisition costs represent costs that are directly related to the successful acquisition of new and renewal insurance contracts and incremental direct costs of contract acquisition that are incurred in transactions with either independent third parties or employees. Such costs primarily include commissions, premium taxes, costs of policy issuance and underwriting, and certain other expenses that are directly related to successfully issued contracts. | |
For life insurance products, the DAC asset, which includes the present value of future profits, related to most universal life-type contracts (primarily variable annuities) and is amortized over the estimated life of the contracts acquired in proportion to the present value of estimated gross profits ("EGPs"). EGPs are also used to amortize other assets and liabilities in the Company’s Consolidated Balance Sheets such as sales inducement assets and unearned revenue reserves. Components of EGPs are used to determine reserves for universal life type contracts (including variable annuities) with death or other insurance benefits such as guaranteed minimum death, guaranteed minimum income and universal life secondary guarantee benefits. These benefits are accounted for and collectively referred to as death and other insurance benefit reserves and are held in addition to the account value liability representing policyholder funds. | |
For most contracts, the Company estimates gross profits over 20 years as EGPs emerging subsequent to that timeframe are immaterial. Products sold in a particular year are aggregated into cohorts. Future gross profits for each cohort are projected over the estimated lives of the underlying contracts, based on future account value projections for variable annuity and variable universal life products. The projection of future account values requires the use of certain assumptions including: separate account returns; separate account fund mix; fees assessed against the contract holder’s account balance; surrender and lapse rates; interest margin; mortality; and the extent and duration of hedging activities and hedging costs. | |
The Company determines EGPs from a single deterministic reversion to mean ("RTM") separate account return projection which is an estimation technique commonly used by insurance entities to project future separate account returns. Through this estimation technique, the Company’s DAC model is adjusted to reflect actual account values at the end of each quarter. Through a consideration of recent market returns, the Company will unlock, or adjust, projected returns over a future period so that the account value returns to the long-term expected rate of return, providing that those projected returns do not exceed certain caps or floors. This Unlock for future separate account returns is determined each quarter. | |
In the third quarter of each year, the Company completes a comprehensive non-market related policyholder behavior assumption study and incorporates the results of those studies into its projection of future gross profits. Additionally, throughout the year, the Company evaluates various aspects of policyholder behavior and periodically revises its policyholder assumptions as credible emerging data indicates that changes are warranted. The Company will continue to evaluate its assumptions related to policyholder behavior as initiatives to reduce the size of the variable annuity business are implemented by management. Upon completion of an assumption study or evaluation of credible new information, the Company will revise its assumptions to reflect its current best estimate. These assumption revisions will change the projected account values and the related EGPs in the DAC, SIA and URR amortization models, as well as, the death and other insurance benefit reserving models. | |
All assumption changes that affect the estimate of future EGPs including the update of current account values, the use of the RTM estimation technique, and policyholder behavior assumptions are considered an Unlock in the period of revision. An Unlock adjusts the DAC, SIA, URR and death and other insurance benefit reserve balances in the Consolidated Balance Sheets with an offsetting benefit or charge in the Consolidated Statements of Operations in the period of the revision. An Unlock revises EGPs to reflect the Company's current best estimate assumptions. The Company also tests the aggregate recoverability of DAC by comparing the existing DAC balance to the present value of future EGPs. An Unlock that results in an after-tax benefit generally occurs as a result of actual experience or future expectations of product profitability being favorable compared to previous estimates. An Unlock that results in an after-tax charge generally occurs as a result of actual experience or future expectations of product profitability being unfavorable compared to previous estimates. | |
Goodwill | ' |
Goodwill represents the excess of costs over the fair value of net assets acquired. Goodwill is not amortized but is reviewed for impairment at least annually or more frequently if events occur or circumstances change that would indicate that a triggering event for a potential impairment has occurred. During the fourth quarter of 2011, the Company changed the date of its annual impairment test for all reporting units to October 31st from January 1st. As a result, all reporting units performed an impairment test on October 31, 2011 in addition to the annual impairment test performed on January 1, 2011. The change was made to be consistent across all of the parent company’s reporting units and to more closely align the impairment testing date with the long-range planning and forecasting process. The Company determined that this change in accounting principle is preferable under the circumstances and does not result in any delay, acceleration or avoidance of impairment. As it was impracticable to objectively determine projected cash flows and related valuation estimates as of each October 31 for periods prior to October 31, 2011 without applying information that has been learned since those periods, the Company prospectively applied the change in the annual goodwill impairment testing date from October 31, 2011. | |
The goodwill impairment test follows a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the carrying value of a reporting unit exceeds its fair value, the second step of the impairment test is performed for purposes of measuring the impairment. In the second step, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit to determine an implied goodwill value. If the carrying amount of the reporting unit’s goodwill exceeds the implied goodwill value, an impairment loss is recognized in an amount equal to that excess. | |
Management’s determination of the fair value of each reporting unit incorporates multiple inputs into discounted cash flow calculations, including assumptions that market participants would make in valuing the reporting unit. Assumptions include levels of economic capital, future business growth, earnings projections, assets under management for certain reporting units, and the weighted average cost of capital used for purposes of discounting. Decreases in the amount of economic capital allocated to a reporting unit, decreases in business growth, decreases in earnings projections and increases in the weighted average cost of capital will all cause a reporting unit’s fair value to decrease. | |
Separate Accounts, Death Benefits and Other Insurance Benefit Features | ' |
The Company records the variable account value portion of variable annuity and variable life insurance products and institutional and governmental investment contracts within separate accounts. Separate account assets are reported at fair value and separate account liabilities are reported at amounts consistent with separate account assets. Investment income and gains and losses from those separate account assets accrue directly to the policyholder, who assumes the related investment risk, and are offset by the related liability changes reported in the same line item in the Consolidated Statements of Operations. The Company earns fees for investment management, certain administrative expenses, and mortality and expense risks assumed which are reported in fee income. | |
Certain contracts classified as universal life-type include death and other insurance benefit features including GMDB offered with variable annuity contracts, or secondary guarantee benefits offered with universal life (“UL”) insurance contracts. GMDBs have been written in various forms as described in this note. UL secondary guarantee benefits ensure that the policy will not terminate, and will continue to provide a death benefit, even if there is insufficient policy value to cover the monthly deductions and charges. These death and other insurance benefit features require an additional liability be held above the account value liability representing the policyholders’ funds. This liability is reported in reserve for future policy benefits in the Company’s Consolidated Balance Sheets. Changes in the death and other insurance benefit reserves are recorded in benefits, losses and loss adjustment expenses in the Company’s Consolidated Statements of Operations. | |
Consistent with the Company’s policy on DAC Unlock, the Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefits, losses and loss adjustment expense. For further information on the DAC Unlock, see Note 6 - Deferred Policy Acquisition Costs and Present Value of Future Benefits. | |
The Company reinsures the GMDBs associated with its in-force block of business. The Company also assumes, through reinsurance, minimum death, income, withdrawal and accumulation benefits offered by an affiliate. The death and other insurance benefit liability is determined by estimating the expected present value of the benefits in excess of the policyholder’s expected account value in proportion to the present value of total expected assessments. The additional death and other insurance benefits and net reinsurance costs are recognized ratably over the accumulation period based on total expected assessments. | |
Reserves for Future Policy Benefits and Unpaid Losses and Loss Adjustment | ' |
Liabilities for the Company’s group life and disability contracts as well its individual term life insurance policies include amounts for unpaid losses and future policy benefits. Liabilities for unpaid losses include estimates of amounts to fully settle known reported claims as well as claims related to insured events that the Company estimates have been incurred but have not yet been reported. Liabilities for future policy benefits are calculated by the net level premium method using interest, withdrawal and mortality assumptions appropriate at the time the policies were issued. The methods used in determining the liability for unpaid losses and future policy benefits are standard actuarial methods recognized by the American Academy of Actuaries. For the tabular reserves, discount rates are based on the Company’s earned investment yield and the morbidity/mortality tables used are standard industry tables modified to reflect the Company’s actual experience when appropriate. In particular, for the Company’s group disability known claim reserves, the morbidity table for the early durations of claim is based exclusively on the Company’s experience, incorporating factors such as gender, elimination period and diagnosis. These reserves are computed such that they are expected to meet the Company’s future policy obligations. Future policy benefits are computed at amounts that, with additions from estimated premiums to be received and with interest on such reserves compounded annually at certain assumed rates, are expected to be sufficient to meet the Company’s policy obligations at their maturities or in the event of an insured’s death. Changes in or deviations from the assumptions used for mortality, morbidity, expected future premiums and interest can significantly affect the Company’s reserve levels and related future operations. | |
Other Policyholder Funds and Benefits Payable | ' |
The Company has classified its fixed and variable annuities and universal life insurance as universal life-type contracts. The liability for universal life-type contracts is equal to the balance that accrues to the benefit of the policyholders as of the financial statement date, including credited interest, amounts that have been assessed to compensate the Company for services to be performed over future periods, and any amounts previously assessed against policyholders that are refundable on termination of the contract. | |
The Company has classified its institutional and governmental products, without life contingencies, including funding agreements, certain structured settlements and guaranteed investment contracts, as investment contracts. The liability for investment contracts is equal to the balance that accrues to the benefit of the contract holder as of the financial statement date, which includes the accumulation of deposits plus credited interest, less withdrawals and amounts assessed through the financial statement date. Contract holder funds include funding agreements held by Variable Interest Entities issuing medium-term notes. | |
Foreign Currency Translation | ' |
Foreign currency translation gains and losses are reflected in stockholders’ equity as a component of accumulated other comprehensive income. The Company’s foreign subsidiaries’ balance sheet accounts are translated at the exchange rates in effect at each year end and income statement accounts are translated at the average rates of exchange prevailing during the year. The national currencies of the international operations are generally their functional currencies. |
Business_Dispositions_Tables
Business Dispositions (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||
Discontinued operations in condensed consolidated statements of operations | ' | |||
As of December 31, 2012 | ||||
Carrying Value | ||||
Total fixed maturities, AFS, at fair value (amortized cost of $13,596) [1] | $ | 15,015 | ||
Equity securities, AFS, at fair value (cost of $27) [2] | 28 | |||
Fixed maturities, at fair value using the FVO [3] | 16 | |||
Mortgage loans (net of allowances for loan losses of $1) | 1,288 | |||
Policy loans, at outstanding balance | 542 | |||
Total invested assets transferred | $ | 16,889 | ||
[1] The market value includes the fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in the net unrealized capital gains (losses). | ||||
[2] Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively. | ||||
[3] All equity securities transferred are included in level 2 of the fair value hierarchy. | ||||
[4] All FVO securities transferred are included in level 3 of the fair value hierarchy. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||
Assets and (liabilities) carried at fair value by hierarchy level | ' | |||||||||||||||||||||||||||
The following tables present assets and (liabilities) carried at fair value by hierarchy level. These disclosures provide information as to the extent to which the Company uses fair value to measure financial instruments and information about the inputs used to value those financial instruments to allow users to assess the relative reliability of the measurements. The following table presents assets and (liabilities) carried at fair value by hierarchy level. | ||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||||||||||||
Markets for | Inputs | Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||
ABS | $ | 1,129 | $ | — | $ | 1,021 | $ | 108 | ||||||||||||||||||||
CDOs | 1,448 | — | 1,020 | 428 | ||||||||||||||||||||||||
CMBS | 2,347 | — | 1,987 | 360 | ||||||||||||||||||||||||
Corporate | 16,917 | — | 16,127 | 790 | ||||||||||||||||||||||||
Foreign government/government agencies | 1,177 | — | 1,139 | 38 | ||||||||||||||||||||||||
States, municipalities and political subdivisions (“Municipal”) | 965 | — | 916 | 49 | ||||||||||||||||||||||||
RMBS | 2,431 | — | 1,633 | 798 | ||||||||||||||||||||||||
U.S. Treasuries | 1,749 | 1,077 | 672 | — | ||||||||||||||||||||||||
Total fixed maturities | 28,163 | 1,077 | 24,515 | 2,571 | ||||||||||||||||||||||||
Fixed maturities, FVO | 791 | — | 613 | 178 | ||||||||||||||||||||||||
Equity securities, trading | 12 | 12 | — | — | ||||||||||||||||||||||||
Equity securities, AFS | 372 | 207 | 114 | 51 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||
Credit derivatives | 9 | — | 11 | (2 | ) | |||||||||||||||||||||||
Foreign exchange derivatives | 14 | — | 14 | — | ||||||||||||||||||||||||
Interest rate derivatives | (57 | ) | — | (57 | ) | — | ||||||||||||||||||||||
U.S. guaranteed minimum withdrawal benefit ("GMWB") hedging instruments | 26 | — | (42 | ) | 68 | |||||||||||||||||||||||
U.S. macro hedge program | 109 | — | — | 109 | ||||||||||||||||||||||||
International program hedging instruments | 171 | — | 173 | (2 | ) | |||||||||||||||||||||||
Total derivative assets [1] | 272 | — | 99 | 173 | ||||||||||||||||||||||||
Short-term investments | 1,952 | 228 | 1,724 | — | ||||||||||||||||||||||||
Limited partnerships and other alternative investments [2] | 468 | — | 414 | 54 | ||||||||||||||||||||||||
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB | (398 | ) | — | 67 | (465 | ) | ||||||||||||||||||||||
Separate account assets [3] | 138,482 | 99,917 | 37,828 | 737 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 170,114 | $ | 101,441 | $ | 65,374 | $ | 3,299 | ||||||||||||||||||||
Percentage of level to total | 100 | % | 60 | % | 38 | % | 2 | % | ||||||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | ||||||||||||||||||||||||||||
Guaranteed living benefits | $ | (576 | ) | $ | — | $ | — | $ | (576 | ) | ||||||||||||||||||
Equity linked notes | (18 | ) | — | — | (18 | ) | ||||||||||||||||||||||
Total other policyholder funds and benefits payable | (594 | ) | — | — | (594 | ) | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||
Credit derivatives | 11 | — | 7 | 4 | ||||||||||||||||||||||||
Equity derivatives | 18 | — | 16 | 2 | ||||||||||||||||||||||||
Foreign exchange derivatives | (382 | ) | — | (382 | ) | — | ||||||||||||||||||||||
Interest rate derivatives | (319 | ) | — | (295 | ) | (24 | ) | |||||||||||||||||||||
U.S. GMWB hedging instruments | 15 | — | (63 | ) | 78 | |||||||||||||||||||||||
U.S. macro hedge program | 30 | — | — | 30 | ||||||||||||||||||||||||
International program hedging instruments | (198 | ) | — | (139 | ) | (59 | ) | |||||||||||||||||||||
Total derivative liabilities [4] | (825 | ) | — | (856 | ) | 31 | ||||||||||||||||||||||
Consumer notes [5] | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (1,421 | ) | $ | — | $ | (856 | ) | $ | (565 | ) | |||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
Total | Quoted Prices | Significant | Significant | |||||||||||||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||||||||||||||
Markets for | Inputs | Inputs | ||||||||||||||||||||||||||
Identical Assets | (Level 2) | (Level 3) | ||||||||||||||||||||||||||
(Level 1) | ||||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||
ABS | $ | 1,673 | $ | — | $ | 1,435 | $ | 238 | ||||||||||||||||||||
CDOs | 2,160 | — | 1,437 | 723 | ||||||||||||||||||||||||
CMBS | 3,912 | — | 3,380 | 532 | ||||||||||||||||||||||||
Corporate | 30,979 | — | 29,639 | 1,340 | ||||||||||||||||||||||||
Foreign government/government agencies | 1,460 | — | 1,426 | 34 | ||||||||||||||||||||||||
States, municipalities and political subdivisions (“Municipal”) | 1,998 | — | 1,829 | 169 | ||||||||||||||||||||||||
RMBS | 4,671 | — | 3,538 | 1,133 | ||||||||||||||||||||||||
U.S. Treasuries | 2,551 | 78 | 2,473 | — | ||||||||||||||||||||||||
Total fixed maturities | 49,404 | 78 | 45,157 | 4,169 | ||||||||||||||||||||||||
Fixed maturities, FVO | 1,010 | 6 | 805 | 199 | ||||||||||||||||||||||||
Equity securities, trading | 1,847 | 1,847 | — | — | ||||||||||||||||||||||||
Equity securities, AFS | 400 | 203 | 142 | 55 | ||||||||||||||||||||||||
Derivative assets | ||||||||||||||||||||||||||||
Credit derivatives | (10 | ) | — | — | (10 | ) | ||||||||||||||||||||||
Equity derivatives | 30 | — | — | 30 | ||||||||||||||||||||||||
Foreign exchange derivatives | 104 | — | 104 | — | ||||||||||||||||||||||||
Interest rate derivatives | 108 | — | 144 | (36 | ) | |||||||||||||||||||||||
U.S. GMWB hedging instruments | 36 | — | (53 | ) | 89 | |||||||||||||||||||||||
U.S. macro hedge program | 186 | — | — | 186 | ||||||||||||||||||||||||
International program hedging instruments | 127 | — | 142 | (15 | ) | |||||||||||||||||||||||
Total derivative assets [1] | 581 | — | 337 | 244 | ||||||||||||||||||||||||
Short-term investments | 2,354 | 242 | 2,112 | — | ||||||||||||||||||||||||
Limited partnerships and other alternative investments | 414 | — | 264 | 150 | ||||||||||||||||||||||||
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB | 1,081 | — | — | 1,081 | ||||||||||||||||||||||||
Separate account assets [3] | 138,497 | 97,976 | 39,938 | 583 | ||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | $ | 195,588 | $ | 100,352 | $ | 88,755 | $ | 6,481 | ||||||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | ||||||||||||||||||||||||||||
Guaranteed living benefits | $ | (3,119 | ) | $ | — | $ | — | $ | (3,119 | ) | ||||||||||||||||||
Equity linked notes | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||||
Total other policyholder funds and benefits payable | (3,127 | ) | — | — | (3,127 | ) | ||||||||||||||||||||||
Derivative liabilities | ||||||||||||||||||||||||||||
Credit derivatives | (6 | ) | — | (20 | ) | 14 | ||||||||||||||||||||||
Equity derivatives | 15 | — | — | 15 | ||||||||||||||||||||||||
Foreign exchange derivatives | (17 | ) | — | (17 | ) | — | ||||||||||||||||||||||
Interest rate derivatives | (359 | ) | — | (338 | ) | (21 | ) | |||||||||||||||||||||
U.S. GMWB hedging instruments | 536 | — | 106 | 430 | ||||||||||||||||||||||||
U.S. macro hedge program | 100 | — | — | 100 | ||||||||||||||||||||||||
International program hedging instruments | (231 | ) | — | (171 | ) | (60 | ) | |||||||||||||||||||||
Total derivative liabilities [4] | 38 | — | (440 | ) | 478 | |||||||||||||||||||||||
Other liabilities | — | — | — | — | ||||||||||||||||||||||||
Consumer notes [5] | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | $ | (3,091 | ) | $ | — | $ | (440 | ) | $ | (2,651 | ) | |||||||||||||||||
[1] | Includes OTC and OTC-cleared derivative instruments in a net asset value position after consideration of the impact of collateral posting requirements, which may be imposed by agreements, clearinghouse rules, and applicable law. At December 31, 2013 and December 31, 2012, $120 and $92, respectively, was netted against the derivative asset value in the Consolidated Balance Sheet and is excluded from the table above. For further information on derivative liabilities, see below in this Note 3. | |||||||||||||||||||||||||||
[2] | Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value. | |||||||||||||||||||||||||||
[3] | As of December 31, 2013 and 2012, excludes approximately $2.4 billion and $3.1 billion, respectively, of investment sales receivable that are not subject to fair value accounting. | |||||||||||||||||||||||||||
[4] | Includes OTC and OTC-cleared derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll forward table included below in this Note, the sum of the derivative asset and liability positions are referred to as “freestanding derivatives” and are presented on a net basis. | |||||||||||||||||||||||||||
[5] | Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes. | |||||||||||||||||||||||||||
Information about significant unobservable inputs used in Level 3 assets measured at fair value | ' | |||||||||||||||||||||||||||
The following tables present information about significant unobservable inputs used in Level 3 assets measured at fair value. | ||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Securities | Unobservable Inputs | |||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | Fair | Predominant | Significant Unobservable Input | Minimum | Maximum | Weighted Average [1] | Impact of | |||||||||||||||||||||
Value | Valuation | Increase in Input | ||||||||||||||||||||||||||
Method | on Fair Value [2] | |||||||||||||||||||||||||||
CMBS | $ | 360 | Discounted cash flows | Spread (encompasses | 99bps | 2,511bps | 446bps | Decrease | ||||||||||||||||||||
prepayment, default risk and loss severity) | ||||||||||||||||||||||||||||
Corporate [3] | 398 | Discounted cash flows | Spread | 119bps | 5,594bps | 332bps | Decrease | |||||||||||||||||||||
Municipal [3] | 29 | Discounted cash flows | Spread | 184bps | 184bps | 184bps | Decrease | |||||||||||||||||||||
RMBS | 798 | Discounted cash flows | Spread | 62bps | 1,748bps | 245bps | Decrease | |||||||||||||||||||||
Constant prepayment rate | — | % | 10 | % | 3 | % | Decrease [4] | |||||||||||||||||||||
Constant default rate | 1 | % | 22 | % | 8 | % | Decrease | |||||||||||||||||||||
Loss severity | — | % | 100 | % | 80 | % | Decrease | |||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Securities | Unobservable Inputs | |||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | Fair | Predominant | Significant Unobservable Input | Minimum | Maximum | Weighted Average [1] | Impact of | |||||||||||||||||||||
Value | Valuation | Increase in Input | ||||||||||||||||||||||||||
Method | on Fair Value [2] | |||||||||||||||||||||||||||
CMBS | $ | 532 | Discounted cash flows | Spread (encompasses | 320bps | 3,615bps | 1,013bps | Decrease | ||||||||||||||||||||
prepayment, default risk and loss severity) | ||||||||||||||||||||||||||||
Corporate [3] | 888 | Discounted cash flows | Spread | 145bps | 900bps | 333bps | Decrease | |||||||||||||||||||||
Municipal | 169 | Discounted cash flows | Spread | 227bps | 344bps | 254bps | Decrease | |||||||||||||||||||||
RMBS | 1,133 | Discounted cash flows | Spread | 54bps | 1,689bps | 379bps | Decrease | |||||||||||||||||||||
Constant prepayment rate | — | % | 12 | % | 2 | % | Decrease [4] | |||||||||||||||||||||
Constant default rate | 1 | % | 24 | % | 8 | % | Decrease | |||||||||||||||||||||
Loss severity | — | % | 100 | % | 80 | % | Decrease | |||||||||||||||||||||
[1] | The weighted average is determined based on the fair value of the securities. | |||||||||||||||||||||||||||
[2] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above. | |||||||||||||||||||||||||||
[3] | Level 3 corporate and municipal securities excludes those for which the Company bases fair value on broker quotations as discussed below. | |||||||||||||||||||||||||||
[4] | Decrease for above market rate coupons and increase for below market rate coupons. | |||||||||||||||||||||||||||
Information about significant unobservable inputs used in Level 3 derivative instruments measured at fair value | ' | |||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||
Freestanding Derivatives | Unobservable Inputs | |||||||||||||||||||||||||||
Fair | Predominant Valuation | Significant | Minimum | Maximum | Impact of | |||||||||||||||||||||||
Value | Method | Unobservable Input | Increase in Input | |||||||||||||||||||||||||
on Fair Value [1] | ||||||||||||||||||||||||||||
Interest rate derivative | ||||||||||||||||||||||||||||
Interest rate swaps | (24 | ) | Discounted cash flows | Swap curve | 4% | 4% | Increase | |||||||||||||||||||||
beyond 30 years | ||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | ||||||||||||||||||||||||||||
Equity options | 72 | Option model | Equity volatility | 21% | 29% | Increase | ||||||||||||||||||||||
Customized swaps | 74 | Discounted cash flows | Equity volatility | 10% | 50% | Increase | ||||||||||||||||||||||
U.S. macro hedge program | ||||||||||||||||||||||||||||
Equity options | 139 | Option model | Equity volatility | 24% | 31% | Increase | ||||||||||||||||||||||
International hedging program [2] | ||||||||||||||||||||||||||||
Equity options | (66 | ) | Option model | Equity volatility | 29% | 37% | Increase | |||||||||||||||||||||
Short interest rate swaptions | (12 | ) | Option model | Interest rate volatility | —% | 1% | Decrease | |||||||||||||||||||||
Long interest rate swaptions | 48 | Option model | Interest rate volatility | 1% | 1% | Increase | ||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||
Freestanding Derivatives | Unobservable Inputs | |||||||||||||||||||||||||||
Fair | Predominant Valuation | Significant | Minimum | Maximum | Impact of | |||||||||||||||||||||||
Value | Method | Unobservable Input | Increase in Input | |||||||||||||||||||||||||
on Fair Value [1] | ||||||||||||||||||||||||||||
Equity derivatives | ||||||||||||||||||||||||||||
Equity options | 45 | Option model | Equity volatility | 13.00% | 24% | Increase | ||||||||||||||||||||||
Interest rate derivative | ||||||||||||||||||||||||||||
Interest rate swaps | (57 | ) | Discounted cash flows | Swap curve | 2.80% | 2.80% | Increase | |||||||||||||||||||||
beyond 30 years | ||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | ||||||||||||||||||||||||||||
Equity options | 281 | Option model | Equity volatility | 10% | 31% | Increase | ||||||||||||||||||||||
Customized swaps | 238 | Discounted cash flows | Equity volatility | 10% | 50% | Increase | ||||||||||||||||||||||
U.S. macro hedge program | ||||||||||||||||||||||||||||
Equity options | 286 | Option model | Equity volatility | 24% | 43% | Increase | ||||||||||||||||||||||
International hedging program | ||||||||||||||||||||||||||||
Equity options | 44 | Option model | Equity volatility | 22% | 33% | Increase | ||||||||||||||||||||||
Long interest rate | (119 | ) | Option model | Interest rate volatility | —% | 1% | Increase | |||||||||||||||||||||
[1] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. | |||||||||||||||||||||||||||
Information about significant unobservable inputs used in Level 3 living benefits measured at fair value | ' | |||||||||||||||||||||||||||
Significant increases in any of the significant unobservable inputs, in isolation, will generally have an increase or decrease correlation with the fair value measurement, as shown in the table. | ||||||||||||||||||||||||||||
Unobservable Inputs | ||||||||||||||||||||||||||||
Significant Unobservable Input | Minimum | Maximum | Impact of Increase in Input | |||||||||||||||||||||||||
on Fair Value Measurement [1] | ||||||||||||||||||||||||||||
Withdrawal Utilization[2] | 20% | 100% | Increase | |||||||||||||||||||||||||
Withdrawal Rates [2] | 0% | 8% | Increase | |||||||||||||||||||||||||
Annuitization utilization [3] | 0% | 100% | Increase | |||||||||||||||||||||||||
Lapse Rates [4] | 0% | 75% | Decrease | |||||||||||||||||||||||||
Reset Elections [5] | 20% | 75% | Increase | |||||||||||||||||||||||||
Equity Volatility [6] | 10% | 50% | Increase | |||||||||||||||||||||||||
[1] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. | |||||||||||||||||||||||||||
[2] | Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn. | |||||||||||||||||||||||||||
[3] | For reinsurance associated with Japan GMIB, range represents assumed cumulative percentages of policyholders annuitizing variable annuity contracts. | |||||||||||||||||||||||||||
[4] | Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business. | |||||||||||||||||||||||||||
[5] | Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base. | |||||||||||||||||||||||||||
[6] | Range represents implied market volatilities for equity indices based on multiple pricing sources. | |||||||||||||||||||||||||||
Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | |||||||||||||||||||||||||||
Fixed Maturities, AFS | Fixed | |||||||||||||||||||||||||||
Maturities, | ||||||||||||||||||||||||||||
Assets | ABS | CDOs | CMBS | Corporate | Foreign | Municipal | RMBS | Total Fixed | FVO | |||||||||||||||||||
govt./govt. | Maturities, | |||||||||||||||||||||||||||
agencies | AFS | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 238 | $ | 723 | $ | 532 | $ | 1,340 | $ | 34 | $ | 169 | $ | 1,133 | $ | 4,169 | $ | 199 | ||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (12 | ) | 18 | (14 | ) | 6 | (1 | ) | — | 39 | 36 | 61 | ||||||||||||||||
Included in OCI [3] | 32 | 110 | 53 | (4 | ) | (3 | ) | (10 | ) | 42 | 220 | — | ||||||||||||||||
Purchases | 25 | 37 | 37 | 75 | 27 | — | 74 | 275 | 14 | |||||||||||||||||||
Settlements | (6 | ) | (113 | ) | (89 | ) | (112 | ) | (4 | ) | — | (134 | ) | (458 | ) | (2 | ) | |||||||||||
Sales | (127 | ) | (341 | ) | (152 | ) | (333 | ) | (13 | ) | (110 | ) | (355 | ) | (1,431 | ) | (94 | ) | ||||||||||
Transfers into Level 3 [4] | 3 | 23 | 36 | 99 | — | — | — | 161 | 3 | |||||||||||||||||||
Transfers out of Level 3 [4] | (45 | ) | (29 | ) | (43 | ) | (281 | ) | (2 | ) | — | (1 | ) | (401 | ) | (3 | ) | |||||||||||
Fair value as of December 31, 2013 | $ | 108 | $ | 428 | $ | 360 | $ | 790 | $ | 38 | $ | 49 | $ | 798 | $ | 2,571 | $ | 178 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (7 | ) | $ | — | $ | (2 | ) | $ | (7 | ) | $ | — | $ | — | $ | (1 | ) | $ | (17 | ) | $ | 44 | |||||
Freestanding Derivatives [5] | ||||||||||||||||||||||||||||
Assets (Liabilities) | Equity | Credit | Equity | Interest | U.S. | U.S. | Intl. | Other Contract Derivatives | Total Free- | |||||||||||||||||||
Securities, | Rate | GMWB | Macro | Program | Standing | |||||||||||||||||||||||
AFS | Hedging | Hedge | Hedging | Derivatives | ||||||||||||||||||||||||
Program | [5] | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 55 | $ | 4 | $ | 45 | $ | (57 | ) | $ | 519 | $ | 286 | $ | (75 | ) | $ | — | $ | 722 | ||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (10 | ) | (1 | ) | (26 | ) | 7 | (372 | ) | (191 | ) | 24 | — | (559 | ) | |||||||||||||
Included in OCI [3] | 6 | — | — | — | — | — | — | — | — | |||||||||||||||||||
Purchases | 7 | — | 1 | — | — | 44 | (25 | ) | — | 20 | ||||||||||||||||||
Settlements | — | (1 | ) | (7 | ) | — | (4 | ) | — | (9 | ) | — | (21 | ) | ||||||||||||||
Sales | (2 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Transfers into Level 3 [4] | — | — | — | — | — | — | (8 | ) | (20 | ) | (28 | ) | ||||||||||||||||
Transfers out of Level 3 [4] | (5 | ) | — | (11 | ) | 26 | 3 | — | 32 | 20 | 70 | |||||||||||||||||
Fair value as of December 31, 2013 | $ | 51 | $ | 2 | $ | 2 | $ | (24 | ) | $ | 146 | $ | 139 | $ | (61 | ) | $ | — | $ | 204 | ||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (9 | ) | $ | (1 | ) | $ | (15 | ) | $ | 2 | $ | (390 | ) | $ | (187 | ) | $ | (170 | ) | $ | — | $ | (761 | ) | |||
Assets | Limited Partnerships and Other Alternative Investments | Reinsurance Recoverable for U.S. GMWB | Separate | |||||||||||||||||||||||||
and Japan | Accounts | |||||||||||||||||||||||||||
GMWB, GMIB, | ||||||||||||||||||||||||||||
and GMAB [6] | ||||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | 150 | $ | 1,081 | $ | 583 | ||||||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (5 | ) | (1,856 | ) | 23 | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | |||||||||||||||||||||||||
Purchases | 64 | — | 250 | |||||||||||||||||||||||||
Settlements | — | 310 | (2 | ) | ||||||||||||||||||||||||
Sales | (9 | ) | — | (88 | ) | |||||||||||||||||||||||
Transfers into Level 3 [4] | — | — | 45 | |||||||||||||||||||||||||
Transfers out of Level 3 [4] | (146 | ) | — | (74 | ) | |||||||||||||||||||||||
Fair value as of December 31, 2013 | $ | 54 | $ | (465 | ) | $ | 737 | |||||||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | (5 | ) | $ | (1,856 | ) | $ | 21 | ||||||||||||||||||||
Other Policyholder Funds and Benefits Payable | ||||||||||||||||||||||||||||
Liabilities | Guaranteed | Equity Linked | Total Other | Consumer | ||||||||||||||||||||||||
Living | Notes | Policyholder Funds | Notes | |||||||||||||||||||||||||
Benefits [7] | and Benefits Payable | |||||||||||||||||||||||||||
Fair value as of January 1, 2013 | $ | (3,119 | ) | $ | (8 | ) | $ | (3,127 | ) | $ | (2 | ) | ||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 2,653 | (10 | ) | 2,643 | — | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | — | ||||||||||||||||||||||||
Settlements [8] | (110 | ) | — | (110 | ) | — | ||||||||||||||||||||||
Fair value as of December 31, 2013 | $ | (576 | ) | $ | (18 | ) | $ | (594 | ) | $ | (2 | ) | ||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2013 [2] [7] | $ | 2,653 | $ | (10 | ) | $ | 2,643 | $ | — | |||||||||||||||||||
The tables below provide a fair value roll forward for the year ended December 31, 2012 for the financial instruments classified as Level 3. | ||||||||||||||||||||||||||||
Fixed Maturities, AFS | ||||||||||||||||||||||||||||
Assets | ABS | CDOs | CMBS | Corporate | Foreign | Municipal | RMBS | Total Fixed | Fixed | |||||||||||||||||||
govt./govt. | Maturities, | Maturities, | ||||||||||||||||||||||||||
agencies | AFS | FVO | ||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | 317 | $ | 328 | $ | 348 | $ | 1,497 | $ | 37 | $ | 382 | $ | 933 | $ | 3,842 | $ | 484 | ||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (2 | ) | (19 | ) | (41 | ) | 2 | — | (5 | ) | (68 | ) | (133 | ) | 106 | |||||||||||||
Included in OCI [3] | 45 | 134 | 89 | (38 | ) | 1 | 34 | 298 | 563 | — | ||||||||||||||||||
Purchases | 18 | — | 18 | 169 | 9 | 174 | 289 | 677 | 1 | |||||||||||||||||||
Settlements | (58 | ) | (36 | ) | (111 | ) | (98 | ) | (4 | ) | — | (125 | ) | (432 | ) | (1 | ) | |||||||||||
Sales | (34 | ) | (1 | ) | (109 | ) | (74 | ) | (11 | ) | (91 | ) | (173 | ) | (493 | ) | (391 | ) | ||||||||||
Transfers into Level 3 [4] | 12 | 317 | 422 | 538 | 2 | — | 2 | 1,293 | — | |||||||||||||||||||
Transfers out of Level 3 [4] | (60 | ) | — | (84 | ) | (656 | ) | — | (325 | ) | (23 | ) | (1,148 | ) | — | |||||||||||||
Fair value as of December 31, 2012 | $ | 238 | $ | 723 | $ | 532 | $ | 1,340 | $ | 34 | $ | 169 | $ | 1,133 | $ | 4,169 | $ | 199 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | (1 | ) | $ | (11 | ) | $ | (17 | ) | $ | (7 | ) | $ | — | $ | (5 | ) | $ | (11 | ) | $ | (52 | ) | $ | (7 | ) | ||
Freestanding Derivatives [5] | ||||||||||||||||||||||||||||
Assets (Liabilities) | Equity | Credit | Equity | Interest | U.S. | U.S. | Intl. | Total Free- | ||||||||||||||||||||
Securities, | Rate | GMWB | Macro | Program | Standing | |||||||||||||||||||||||
AFS | Hedging | Hedge | Hedging | Derivatives [5] | ||||||||||||||||||||||||
Program | ||||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | 56 | $ | (489 | ) | $ | 36 | $ | (91 | ) | $ | 883 | $ | 357 | $ | (35 | ) | $ | 661 | |||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 3 | 155 | (32 | ) | 2 | (431 | ) | (323 | ) | (83 | ) | (712 | ) | |||||||||||||||
Included in OCI [3] | (3 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Purchases | 11 | — | 57 | 1 | 56 | 252 | (60 | ) | 306 | |||||||||||||||||||
Settlements | — | 338 | (16 | ) | — | (12 | ) | — | 95 | 405 | ||||||||||||||||||
Sales | (12 | ) | — | — | — | — | — | — | — | |||||||||||||||||||
Transfers out of Level 3 [4] | — | — | — | 31 | 23 | — | 8 | 62 | ||||||||||||||||||||
Fair value as of December 31, 2012 | $ | 55 | $ | 4 | $ | 45 | $ | (57 | ) | $ | 519 | $ | 286 | $ | (75 | ) | $ | 722 | ||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | 2 | $ | 126 | $ | (8 | ) | $ | (1 | ) | $ | (425 | ) | $ | (322 | ) | $ | (85 | ) | $ | (715 | ) | ||||||
Assets | Limited Partnerships and Other Alternative Investments | Reinsurance Recoverable for U.S. GMWB | Separate Accounts | |||||||||||||||||||||||||
and Japan | ||||||||||||||||||||||||||||
GMWB, GMIB, | ||||||||||||||||||||||||||||
and GMAB [6][9] | ||||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | — | $ | 3,073 | $ | 1,031 | ||||||||||||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | (11 | ) | (2,373 | ) | 37 | |||||||||||||||||||||||
Included in OCI [3] | — | — | — | |||||||||||||||||||||||||
Purchases | 26 | — | 252 | |||||||||||||||||||||||||
Settlements | — | 381 | (1 | ) | ||||||||||||||||||||||||
Sales | — | — | (476 | ) | ||||||||||||||||||||||||
Transfers into Level 3 [4] | 135 | — | 443 | |||||||||||||||||||||||||
Transfers out of Level 3 [4] | — | — | (703 | ) | ||||||||||||||||||||||||
Fair value as of December 31, 2012 | $ | 150 | $ | 1,081 | $ | 583 | ||||||||||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | (11 | ) | $ | (2,373 | ) | $ | 28 | ||||||||||||||||||||
Other Policyholder Funds and Benefits Payable [1] | ||||||||||||||||||||||||||||
Liabilities | Guaranteed | Equity Linked | Total Other | Other | Consumer | |||||||||||||||||||||||
Living | Notes | Policyholder Funds | Liabilities | Notes | ||||||||||||||||||||||||
Benefits [7][9] | and Benefits Payable | |||||||||||||||||||||||||||
Fair value as of January 1, 2012 | $ | (5,776 | ) | $ | (9 | ) | $ | (5,785 | ) | $ | (9 | ) | $ | (4 | ) | |||||||||||||
Total realized/unrealized gains (losses) | ||||||||||||||||||||||||||||
Included in net income [1], [2] | 2,920 | 1 | 2,921 | (34 | ) | 2 | ||||||||||||||||||||||
Included in OCI [3] | — | — | — | — | — | |||||||||||||||||||||||
Settlements [8] | (263 | ) | — | (263 | ) | 43 | — | |||||||||||||||||||||
Fair value as of December 31, 2012 | $ | (3,119 | ) | $ | (8 | ) | $ | (3,127 | ) | $ | — | $ | (2 | ) | ||||||||||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at December 31, 2012 [2] [7] | $ | 2,920 | $ | 1 | $ | 2,921 | $ | — | $ | 2 | ||||||||||||||||||
[1] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||||||||||||||||||||||||||
[2] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | |||||||||||||||||||||||||||
[3] | All amounts are before income taxes and amortization of DAC. | |||||||||||||||||||||||||||
[4] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||||||||||||||||||||||||||
[5] | Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Consolidated Balance Sheet in other investments and other liabilities. | |||||||||||||||||||||||||||
[6] | Includes fair value of reinsurance recoverables of approximately $495 and $900 as of December 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. | |||||||||||||||||||||||||||
[7] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). | |||||||||||||||||||||||||||
[8] | Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See Note 4 - Investments and Derivative Instruments of Notes to Consolidated Financial Statements for additional information. | |||||||||||||||||||||||||||
[9] | ||||||||||||||||||||||||||||
Fair value of assets and liabilities accounted for using the fair value option | ' | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Fixed maturities, FVO | ||||||||||||||||||||||||||||
Corporate | $ | (12 | ) | $ | 9 | |||||||||||||||||||||||
CRE CDOs | 14 | 64 | ||||||||||||||||||||||||||
CMBS | — | (2 | ) | |||||||||||||||||||||||||
Foreign government | (112 | ) | (88 | ) | ||||||||||||||||||||||||
RMBS | — | 5 | ||||||||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||
Credit-linked notes | — | (34 | ) | |||||||||||||||||||||||||
Total realized capital gains (losses) | $ | (110 | ) | $ | (46 | ) | ||||||||||||||||||||||
Fair value of assets and liabilities accounted for using the fair value option | ' | |||||||||||||||||||||||||||
The following table presents the fair value of assets and liabilities accounted for using the fair value option included in the Company's Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Fixed maturities, FVO | ||||||||||||||||||||||||||||
ABS | $ | 3 | $ | — | ||||||||||||||||||||||||
Corporate | 84 | 108 | ||||||||||||||||||||||||||
CRE CDOs | 167 | 193 | ||||||||||||||||||||||||||
CMBS | 8 | 4 | ||||||||||||||||||||||||||
Foreign government | 494 | 699 | ||||||||||||||||||||||||||
Municipals | 1 | 1 | ||||||||||||||||||||||||||
RMBS | 9 | 3 | ||||||||||||||||||||||||||
U.S. government | 25 | 2 | ||||||||||||||||||||||||||
Total fixed maturities, FVO | $ | 791 | $ | 1,010 | ||||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value | ' | |||||||||||||||||||||||||||
The following presents carrying amounts and fair values of the Company's financial instruments not carried at fair value, and not included in the above fair value discussion as of December 31, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Fair Value Hierarchy Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Policy loans | Level 3 | 1,416 | 1,476 | 1,951 | 2,112 | |||||||||||||||||||||||
Mortgage loans | Level 3 | 3,470 | 3,519 | 4,935 | 5,109 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Other policyholder funds and benefits payable [1] | Level 3 | 8,955 | 9,153 | 9,318 | 9,668 | |||||||||||||||||||||||
Consumer notes [2] | Level 3 | 82 | 82 | 159 | 159 | |||||||||||||||||||||||
[1] | Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. | |||||||||||||||||||||||||||
[2] | Excludes amounts carried at fair value and included in disclosures above. |
Investments_and_Derivative_Ins1
Investments and Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Income | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities [1] | $ | 1,253 | $ | 1,953 | $ | 1,927 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | 8 | 11 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans | 172 | 248 | 206 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Policy loans | 82 | 116 | 128 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships and other alternative investments | 119 | 85 | 143 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments [2] | 123 | 199 | 231 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment expenses | (76 | ) | (77 | ) | (73 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities AFS and other | 1,681 | 2,535 | 2,572 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, trading | 2 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net investment income | $ | 1,683 | $ | 2,536 | $ | 2,572 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Includes net investment income on short-term investments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Realized Capital Gains (Losses) | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross gains on sales [1] | $ | 2,196 | $ | 478 | $ | 400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross losses on sales | (700 | ) | (278 | ) | (200 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net OTTI losses recognized in earnings [2] | (45 | ) | (255 | ) | (125 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation allowances on mortgage loans | (1 | ) | 4 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese fixed annuity contract hedges, net [3] | 6 | (36 | ) | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Periodic net coupon settlements on credit derivatives/Japan | (3 | ) | (8 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB derivatives, net | 262 | 519 | (397 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. macro hedge program | (234 | ) | (340 | ) | (216 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total U.S. program | 28 | 179 | (613 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Program [4] | (963 | ) | (1,145 | ) | 639 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total results of variable annuity hedge program | (935 | ) | (966 | ) | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GMIB/GMAB/GMWB reinsurance | 1,107 | 1,233 | (326 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | (1,405 | ) | (1,901 | ) | 375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net [5] | 106 | 248 | (255 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses), before-tax | $ | 326 | $ | (1,481 | ) | $ | (77 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Includes $1.5 billion of gross gains relating to the sales of the Retirement Plans and Individual Life businesses in the year ended December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Includes $173 of intent-to-sell impairments relating to the Retirement Plans and Individual Life businesses sold for the year ended December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Includes for the years ended December 31, 2013, 2012 and 2011, transactional foreign currency re-valuation related to the Japan fixed annuity product of $324, $245, and $(129) , respectively, as well as the change in value related to the derivative hedging instruments and the Japan government FVO securities of $(318), $(281), and $132, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes $(55), $(66), and $0 of transactional foreign currency re-valuation for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales of Available-for-sale Securities | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, AFS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale proceeds | $ | 19,190 | $ | 23,555 | $ | 19,861 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross gains [1] | 1,867 | 521 | 354 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross losses | (421 | ) | (270 | ) | (205 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale proceeds | $ | 81 | $ | 133 | $ | 147 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross gains | 254 | 15 | 50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross losses | (263 | ) | (5 | ) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other-Than-Temporary Impairment Losses | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents a roll-forward of the Company’s cumulative credit impairments on debt securities held as of December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Before-tax) | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | (813 | ) | $ | (1,319 | ) | $ | (1,598 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions for credit impairments recognized on [1]: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities not previously impaired | (14 | ) | (27 | ) | (41 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities previously impaired | (4 | ) | (15 | ) | (47 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reductions for credit impairments previously recognized on: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities that matured or were sold during the period | 403 | 543 | 358 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities due to an increase in expected cash flows | 17 | 5 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities the Company made the decision to sell or more likely than not will be required to sell | 1 | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, end of period | $ | (410 | ) | $ | (813 | ) | $ | (1,319 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-Sale Securities | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company’s AFS securities by type. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-Credit OTTI [1] | Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-Credit OTTI [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | $ | 1,172 | $ | 13 | $ | (56 | ) | $ | 1,129 | $ | (2 | ) | $ | 1,807 | $ | 38 | $ | (172 | ) | $ | 1,673 | $ | (4 | ) | ||||||||||||||||||||||||||||||||||||||||
CDOs [2] | 1,392 | 98 | (41 | ) | 1,448 | — | 2,236 | 61 | (117 | ) | 2,160 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 2,275 | 106 | (34 | ) | 2,347 | (3 | ) | 3,757 | 262 | (107 | ) | 3,912 | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 15,913 | 1,196 | (192 | ) | 16,917 | (6 | ) | 27,774 | 3,426 | (221 | ) | 30,979 | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign govt./govt. agencies | 1,267 | 27 | (117 | ) | 1,177 | — | 1,369 | 120 | (29 | ) | 1,460 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal | 988 | 26 | (49 | ) | 965 | — | 1,808 | 204 | (14 | ) | 1,998 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | 2,419 | 60 | (48 | ) | 2,431 | (3 | ) | 4,590 | 196 | (115 | ) | 4,671 | (28 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 1,762 | 1 | (14 | ) | 1,749 | — | 2,412 | 151 | (12 | ) | 2,551 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, AFS | 27,188 | 1,527 | (551 | ) | 28,163 | (14 | ) | 45,753 | 4,458 | (787 | ) | 49,404 | (62 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | 362 | 35 | (25 | ) | 372 | — | 408 | 28 | (36 | ) | 400 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total AFS securities [3] | $ | 27,550 | $ | 1,562 | $ | (576 | ) | $ | 28,535 | $ | (14 | ) | $ | 46,161 | $ | 4,486 | $ | (823 | ) | $ | 49,804 | $ | (62 | ) | ||||||||||||||||||||||||||||||||||||||||
[1] | Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | As of December 31, 2012 Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Maturity | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the Company’s fixed maturities, AFS, by contractual maturity year. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contractual Maturity | Amortized Cost | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One year or less | $ | 1,615 | $ | 1,639 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Over one year through five years | 5,328 | 5,535 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Over five years through ten years | 4,319 | 4,481 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Over ten years | 8,668 | 9,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | 19,930 | 20,808 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed and asset-backed securities | 7,258 | 7,355 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, AFS | $ | 27,188 | $ | 28,163 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Unrealized Loss Aging | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present the Company’s unrealized loss aging for AFS securities by type and length of time the security was in a continuous unrealized loss position. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | $ | 288 | $ | 286 | $ | (2 | ) | $ | 418 | $ | 364 | $ | (54 | ) | $ | 706 | $ | 650 | $ | (56 | ) | |||||||||||||||||||||||||||||||||||||||||||
CDOs [1] | 64 | 63 | (1 | ) | 1,185 | 1,144 | (40 | ) | 1,249 | 1,207 | (41 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 437 | 423 | (14 | ) | 392 | 372 | (20 | ) | 829 | 795 | (34 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | 2,449 | 2,360 | (89 | ) | 799 | 696 | (103 | ) | 3,248 | 3,056 | (192 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign govt./govt. agencies | 542 | 501 | (41 | ) | 303 | 227 | (76 | ) | 845 | 728 | (117 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal | 508 | 475 | (33 | ) | 99 | 83 | (16 | ) | 607 | 558 | (49 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | 922 | 909 | (13 | ) | 475 | 440 | (35 | ) | 1,397 | 1,349 | (48 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 1,456 | 1,442 | (14 | ) | — | — | — | 1,456 | 1,442 | (14 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, AFS | 6,666 | 6,459 | (207 | ) | 3,671 | 3,326 | (344 | ) | 10,337 | 9,785 | (551 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | 77 | 73 | (4 | ) | 135 | 114 | (21 | ) | 212 | 187 | (25 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities in an unrealized loss position | $ | 6,743 | $ | 6,532 | $ | (211 | ) | $ | 3,806 | $ | 3,440 | $ | (365 | ) | $ | 10,549 | $ | 9,972 | $ | (576 | ) | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | Amortized Cost | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ABS | $ | 77 | $ | 76 | $ | (1 | ) | $ | 787 | $ | 616 | $ | (171 | ) | $ | 864 | $ | 692 | $ | (172 | ) | |||||||||||||||||||||||||||||||||||||||||||
CDOs [1] | 5 | 5 | — | 1,640 | 1,515 | (117 | ) | 1,645 | 1,520 | (117 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
CMBS | 192 | 179 | (13 | ) | 795 | 701 | (94 | ) | 987 | 880 | (107 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate [1] | 614 | 578 | (36 | ) | 1,339 | 1,154 | (185 | ) | 1,953 | 1,732 | (221 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign govt./govt. agencies | 318 | 290 | (28 | ) | 7 | 6 | (1 | ) | 325 | 296 | (29 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal | 65 | 62 | (3 | ) | 98 | 87 | (11 | ) | 163 | 149 | (14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS | 322 | 321 | (1 | ) | 750 | 636 | (114 | ) | 1,072 | 957 | (115 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasuries | 384 | 372 | (12 | ) | — | — | — | 384 | 372 | (12 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturities, AFS | 1,977 | 1,883 | (94 | ) | 5,416 | 4,715 | (693 | ) | 7,393 | 6,598 | (787 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | 9 | 9 | — | 172 | 136 | (36 | ) | 181 | 145 | (36 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total securities in an unrealized loss position | $ | 1,986 | $ | 1,892 | $ | (94 | ) | $ | 5,588 | $ | 4,851 | $ | (729 | ) | $ | 7,574 | $ | 6,743 | $ | (823 | ) | |||||||||||||||||||||||||||||||||||||||||||
[1] | Unrealized losses exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost [1] | Valuation Allowance | Carrying Value | Amortized Cost [1] | Valuation Allowance | Carrying Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial mortgage loans [2] | $ | 3,482 | $ | (12 | ) | $ | 3,470 | $ | 4,949 | $ | (14 | ) | $ | 4,935 | ||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Amortized cost represents carrying value prior to valuation allowances, if any. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | As of December 31, 2012 includes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Allowance for Mortgage Loans | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1 | $ | (14 | ) | $ | (23 | ) | $ | (62 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Additions)/Reversals | (2 | ) | 4 | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deductions | 4 | 5 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31 | $ | (12 | ) | $ | (14 | ) | $ | (23 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage Loans Credit Quality | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table presents the carrying value of the Company’s commercial mortgage loans by LTV and DSCR. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial Mortgage Loans Credit Quality | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan-to-value | Carrying Value | Avg. Debt-Service Coverage Ratio | Carrying Value | Avg. Debt-Service Coverage Ratio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Greater than 80% | $ | 35 | 1.15x | $ | 137 | 0.89x | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
65% - 80% | 777 | 1.94x | 1,717 | 2.27x | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 65% | 2,658 | 2.34x | 3,081 | 2.44x | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total commercial mortgage loans | $ | 3,470 | 2.23x | $ | 4,935 | 2.34x | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Region | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following tables present the carrying value of the Company’s mortgage loans by region and property type. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Region | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
East North Central | $ | 79 | 2.30% | $ | 97 | 2.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Middle Atlantic | 255 | 7.30% | 370 | 7.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mountain | 40 | 1.20% | 62 | 1.30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New England | 163 | 4.70% | 231 | 4.70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pacific | 1,019 | 29.40% | 1,504 | 30.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
South Atlantic | 548 | 15.80% | 1,012 | 20.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
West North Central | 17 | 0.50% | 16 | 0.30% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
West South Central | 144 | 4.10% | 234 | 4.70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other [1] | 1,205 | 34.70% | 1,409 | 28.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 3,470 | 100% | $ | 4,935 | 100% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Primarily represents loans collateralized by multiple properties in various regions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Property Type | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Loans by Property Type | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Percent of Total | Carrying Value | Percent of Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | 93 | 2.7 | % | $ | 109 | 2.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Industrial | 1,182 | 34.1 | % | 1,519 | 30.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lodging | 27 | 0.8 | % | 81 | 1.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 576 | 16.6 | % | 869 | 17.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | 723 | 20.8 | % | 1,120 | 22.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | 745 | 21.5 | % | 1,047 | 21.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 124 | 3.5 | % | 190 | 3.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total mortgage loans | $ | 3,470 | 100 | % | $ | 4,935 | 100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities Primary Beneficiary | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | Total Liabilities [1] | Maximum Exposure to Loss [2] | Total Assets | Total Liabilities [1] | Maximum Exposure to Loss [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CDOs [3] | $ | 12 | $ | 13 | $ | — | $ | 89 | $ | 88 | $ | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment funds [4] | 134 | 20 | 119 | 132 | 20 | 110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited partnerships | 4 | 2 | 2 | 6 | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 150 | $ | 35 | $ | 121 | $ | 227 | $ | 111 | $ | 120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | Included in other liabilities in the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Total assets included in fixed maturities, AFS in the Company’s Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Total assets included in fixed maturities, FVO, short-term investments, and equity, AFS in the Company's Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GMWB reinsurance contracts | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customized swaps | $ | 7,839 | $ | 7,787 | $ | 74 | $ | 238 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity swaps, options, and futures | 4,237 | 5,130 | 44 | 267 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps and futures | 6,615 | 5,705 | (77 | ) | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 18,691 | $ | 18,622 | $ | 41 | $ | 572 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Classification by Balance Sheet Location | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge Designation/ Derivative Type | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2013 | Dec 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 3,215 | $ | 3,863 | $ | 16 | $ | 167 | $ | 49 | $ | 167 | $ | (33 | ) | $ | — | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | 143 | 163 | (5 | ) | (17 | ) | 2 | 3 | (7 | ) | (20 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow hedges | 3,358 | 4,026 | 11 | 150 | 51 | 170 | (40 | ) | (20 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value hedges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 1,261 | 753 | (24 | ) | (55 | ) | 2 | — | (26 | ) | (55 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | — | 40 | — | 16 | — | 16 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total fair value hedges | 1,261 | 793 | (24 | ) | (39 | ) | 2 | 16 | (26 | ) | (55 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-qualifying strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps, swaptions, caps, floors, and futures | 4,633 | 13,432 | (368 | ) | (363 | ) | 123 | 436 | (491 | ) | (799 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps and forwards | 118 | 182 | (4 | ) | (9 | ) | 6 | 5 | (10 | ) | (14 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Japan 3Win foreign currency swaps | 1,571 | 1,816 | (354 | ) | (127 | ) | — | — | (354 | ) | (127 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese fixed annuity hedging instruments | 1,436 | 1,652 | (6 | ) | 224 | 88 | 228 | (94 | ) | (4 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives that purchase credit protection | 243 | 1,539 | (4 | ) | (5 | ) | — | 3 | (4 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives that assume credit risk [1] | 1,507 | 1,981 | 27 | (8 | ) | 28 | 17 | (1 | ) | (25 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives in offsetting positions | 3,501 | 5,341 | (3 | ) | (22 | ) | 35 | 56 | (38 | ) | (78 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity index swaps and options | 131 | 791 | (2 | ) | 35 | 18 | 45 | (20 | ) | (10 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB product derivative [2] | 21,512 | 28,868 | (36 | ) | (1,249 | ) | — | — | (36 | ) | (1,249 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB reinsurance contracts | 4,508 | 5,773 | 29 | 191 | 29 | 191 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | 18,691 | 18,622 | 41 | 572 | 333 | 743 | (292 | ) | (171 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. macro hedge program | 9,934 | 7,442 | 139 | 286 | 178 | 356 | (39 | ) | (70 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
International program product derivatives [2] | — | 1,876 | — | (42 | ) | — | — | — | (42 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
International program hedging instruments | 57,025 | 48,448 | (27 | ) | (105 | ) | 649 | 657 | (676 | ) | (762 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GMAB, GMWB, and GMIB reinsurance contracts | 11,999 | 18,287 | (540 | ) | (1,827 | ) | — | — | (540 | ) | (1,827 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | 29,423 | 44,985 | (427 | ) | 890 | 383 | 1,566 | (810 | ) | (676 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-qualifying strategies | 166,232 | 201,035 | (1,535 | ) | (1,559 | ) | 1,870 | 4,303 | (3,405 | ) | (5,862 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash flow hedges, fair value hedges, and non-qualifying strategies | $ | 170,851 | $ | 205,854 | $ | (1,548 | ) | $ | (1,448 | ) | $ | 1,923 | $ | 4,489 | $ | (3,471 | ) | $ | (5,937 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 196 | $ | 416 | $ | (1 | ) | $ | (20 | ) | $ | — | $ | — | $ | (1 | ) | $ | (20 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other investments | 40,564 | 37,809 | 272 | 581 | 721 | 1,049 | (449 | ) | (468 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 62,590 | 67,765 | (825 | ) | 38 | 789 | 1,683 | (1,614 | ) | (1,645 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer notes | 9 | 26 | (2 | ) | (2 | ) | — | — | (2 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverable | 33,931 | 47,430 | (398 | ) | 1,081 | 413 | 1,757 | (811 | ) | (676 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds and benefits payable | 33,561 | 52,408 | (594 | ) | (3,126 | ) | — | — | (594 | ) | (3,126 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | 170,851 | $ | 205,854 | $ | (1,548 | ) | $ | (1,448 | ) | $ | 1,923 | $ | 4,489 | $ | (3,471 | ) | $ | (5,937 | ) | ||||||||||||||||||||||||||||||||||||||||||||
[1] | The derivative instruments related to this strategy are held for other investment purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | These derivatives are embedded within liabilities and are not held for risk management purposes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | (i) | (ii) | (iii) =i) - (ii) | (iv) | (v) =iii) - (iv) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Amounts Presented in the Statement of Financial Position | Collateral Disallowed for Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Collateral Disallowed for Offset in the Statement of Financial Position | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Derivative Assets [1] | Accrued Interest and Cash Collateral Received [2] | Financial Collateral Received [4] | Net Amount | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Derivative Assets [1] | Accrued Interest and Cash Collateral Received [2] | Financial Collateral Received [4] | Net Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Description | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other investments | $ | 1,510 | $ | 1,290 | $ | 272 | $ | (52 | ) | $ | 121 | $ | 99 | Other investments | $ | 2,732 | $ | 2,238 | $ | 581 | $ | (87 | ) | $ | 490 | $ | 4 | |||||||||||||||||||||||||||||||||||||
Offsetting Liabilities [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Derivative Liabilities [3] | Accrued Interest and Cash Collateral Pledged [3] | Financial Collateral Pledged [4] | Net Amount | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Derivative Liabilities [3] | Accrued Interest and Cash Collateral Pledged [3] | Financial Collateral Pledged [4] | Net Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Description | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | $ | (2,063 | ) | $ | (1,308 | ) | $ | (825 | ) | $ | 70 | $ | (826 | ) | $ | 71 | Other liabilities | $ | (2,113 | ) | $ | (1,759 | ) | $ | 38 | $ | (392 | ) | $ | (300 | ) | $ | (54 | ) | ||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
he following table presents the components of the gain or loss on derivatives that qualify as cash flow hedges: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in OCI | Net Realized Capital Gains (Losses) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
on Derivative (Effective Portion) | Recognized in Income on | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative (Ineffective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | (158 | ) | $ | 26 | $ | 245 | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | 12 | (18 | ) | (5 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | (146 | ) | $ | 8 | $ | 240 | $ | (2 | ) | $ | — | $ | (2 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Reclassified from AOCI | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
into Income (Effective Portion) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Net realized capital gains (losses) | $ | 70 | $ | 85 | $ | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Net investment income (loss) | 57 | 97 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | Net realized capital gains (losses) | 4 | (4 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 131 | $ | 178 | $ | 82 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
he Company recognized in income gains (losses) representing the ineffective portion of fair value hedges as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationships | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative | Hedged | Derivative | Hedged | Derivative | Hedged | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Item | Item | Item | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses) | $ | 27 | $ | (24 | ) | $ | (3 | ) | $ | (3 | ) | $ | (58 | ) | $ | 54 | ||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net realized capital gains (losses) | 1 | (1 | ) | (7 | ) | 7 | (1 | ) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits, losses and loss adjustment expenses | (2 | ) | 2 | (6 | ) | 6 | (22 | ) | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 26 | $ | (23 | ) | $ | (16 | ) | $ | 10 | $ | (81 | ) | $ | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||
[1] | The amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or loss recognized in income on non-qualifying strategies | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
he following table presents the gain or loss recognized in income on non-qualifying strategies: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-qualifying Strategies | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) Recognized within Net Realized Capital Gains (Losses) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps, caps, floors, and forwards | $ | (5 | ) | $ | 26 | $ | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency swaps and forwards | 4 | 10 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japan 3Win foreign currency swaps [1] | (268 | ) | (300 | ) | 31 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Japanese fixed annuity hedging instruments [2] | (207 | ) | (178 | ) | 109 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives that purchase credit protection | (20 | ) | (19 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives that assume credit risk | 46 | 204 | (141 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity index swaps and options | (22 | ) | (31 | ) | (67 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable annuity hedge program | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB product derivatives | 1,306 | 1,430 | (780 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB reinsurance contracts | (192 | ) | (280 | ) | 131 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. GMWB hedging instruments | (852 | ) | (631 | ) | 252 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. macro hedge program | (234 | ) | (340 | ) | (216 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International program hedging instruments | (963 | ) | (1,145 | ) | 639 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GMAB, GMWB, and GMIB reinsurance contracts | 1,107 | 1,233 | (326 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Coinsurance and modified coinsurance reinsurance contracts | (1,405 | ) | (1,901 | ) | 375 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total [3] | $ | (1,705 | ) | $ | (1,922 | ) | $ | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | The associated liability is adjusted for changes in spot rates through realized capital gains and was $250, $189 and $(100) for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The associated liability is adjusted for changes in spot rates through realized capital gains and losses and was $324, $245 and $(129) for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Derivatives Description | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
he following tables present the notional amount, fair value, weighted average years to maturity, underlying referenced credit obligation type and average credit ratings, and offsetting notional amounts and fair value for credit derivatives in which the Company is assuming credit risk as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying Referenced | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Obligation(s) [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Derivative type by derivative | Notional | Fair | Weighted | Type | Average | Offsetting | Offsetting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
risk exposure | Amount [2] | Value | Average | Credit | Notional | Fair Value [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Years to | Rating | Amount [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | $ | 735 | $ | 6 | 2 years | Corporate Credit/ | A | $ | 592 | $ | (4 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Gov. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 24 | — | 1 year | Corporate Credit | CCC | 25 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basket credit default swaps [4] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 1,912 | 25 | 3 years | Corporate Credit | BBB+ | 784 | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 87 | 8 | 5 years | Corporate Credit | BB- | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 235 | (5 | ) | 3 years | CMBS Credit | A | 235 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 115 | (18 | ) | 3 years | CMBS Credit | B- | 115 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded credit derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 150 | 145 | 3 years | Corporate Credit | BBB+ | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total [5] | $ | 3,258 | $ | 161 | $ | 1,751 | $ | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying Referenced | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Obligation(s) [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Derivative type by derivative risk exposure | Notional | Fair | Weighted | Type | Average | Offsetting | Offsetting | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Value | Average | Credit | Notional | Fair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Years to | Rating | Amount | Value [3] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity | [3] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Single name credit default swaps | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | $ | 1,787 | $ | 8 | 3 years | Corporate Credit/ Foreign Gov. | A | $ | 878 | $ | (19 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 114 | (1 | ) | 1 year | Corporate Credit | B+ | 114 | (3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basket credit default swaps [4] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 2,074 | 11 | 2 years | Corporate Credit | BBB+ | 1,326 | (6 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 237 | (12 | ) | 4 years | CMBS Credit | A | 238 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Below investment grade risk exposure | 115 | (27 | ) | 4 years | CMBS Credit | B+ | 115 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Embedded credit derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade risk exposure | 325 | 296 | 4 years | Corporate Credit | BBB- | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total [5] | $ | 4,652 | $ | 275 | $ | 2,671 | $ | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | The average credit ratings are based on availability and the midpoint of the applicable ratings among Moody’s, S&P, and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Notional amount is equal to the maximum potential future loss amount. These derivatives are governed by agreements and clearing house rules and applicable law which include collateral posting requirements. There is no additional specific collateral related to these contracts or recourse provisions included in the contracts to offset losses going forward. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | The Company has entered into offsetting credit default swaps to terminate certain existing credit default swaps, thereby offsetting the future changes in value of, or losses paid related to, the original swap. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes $2.3 billion and $2.4 billion as of December 31, 2013 and 2012, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 3 - Fair Value Measurements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Classification and Carrying Amount of Loaned Securities and Derivative Instruments Collateral Pledged | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. [Member] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Macro hedge program | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The following table represents notional and fair value for the U.S. macro hedge program. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity options and swaps | 9,934 | 7,442 | 139 | 286 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,934 | $ | 7,442 | $ | 139 | $ | 286 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International [Member] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative [Line Items] | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Macro hedge program | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit derivatives | 350 | 350 | 5 | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency forwards [1] | 8,778 | 9,327 | 24 | (87 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency options | 8,408 | 9,710 | (58 | ) | (49 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity futures | 999 | 1,206 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity options | 1,022 | 2,621 | (63 | ) | (105 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity swaps | 3,830 | 2,683 | (95 | ) | (12 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customized swaps | — | 899 | — | (11 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate futures | 566 | 634 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps and swaptions | 33,072 | 21,018 | 160 | 131 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 57,025 | $ | 48,448 | $ | (27 | ) | $ | (105 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | As of December 31, 2013 and 2012 net notional amounts are $(1.6) billion and $0.1 billion, respectively, which include $3.6 billion and $4.7 billion, respectively, related to long positions and $5.2 billion and $4.6 billion, respectively, related to short positions. |
Reinsurance_Tables
Reinsurance (Tables) (USD $) | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | |||||||||
Effects of Reinsurance [Table Text Block] | ' | ' | |||||||||
December, 31 | |||||||||||
Reinsurance Recoverables | 2013 | 2012 | |||||||||
Future policy benefits and unpaid loss and loss adjustment expenses: | |||||||||||
Sold businesses (MassMutual and Prudential) | $ | 18,969 | $ | — | |||||||
Other reinsurers | 825 | 2,893 | |||||||||
Net reinsurance recoverables | $ | 19,794 | $ | 2,893 | |||||||
Reinsurance recoverables | $19,794 | $2,893 | |||||||||
Life insurance fees, earned premiums and other | ' | ' | |||||||||
Net fee income, earned premiums and other were comprised of the following: | |||||||||||
For the years Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Gross fee income, earned premiums and other | $ | 3,502 | $ | 3,739 | $ | 4,147 | |||||
Reinsurance assumed | 13 | 8 | 13 | ||||||||
Reinsurance ceded | (1,869 | ) | (698 | ) | (733 | ) | |||||
Net fee income, earned premiums and other | $ | 1,646 | $ | 3,049 | $ | 3,427 | |||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs and Present Value of Future Profits (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | ' | |||||||||
Changes in deferred policy acquisition costs and present value of future profits | ' | |||||||||
Changes in the DAC balance are as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Balance, beginning of period | $ | 3,072 | $ | 3,448 | $ | 3,694 | ||||
Deferred costs | 16 | 329 | 381 | |||||||
Amortization — DAC | (124 | ) | (280 | ) | (290 | ) | ||||
Amortization — Unlock benefit (charge), pre-tax | (104 | ) | (44 | ) | (137 | ) | ||||
Amortization — DAC from discontinued operations | — | (35 | ) | (47 | ) | |||||
Amortization — DAC related to business dispositions [1] [2] | (2,229 | ) | — | — | ||||||
Adjustments to unrealized gains and losses on securities available-for-sale and other [3] | 58 | (346 | ) | (154 | ) | |||||
Effect of currency translation | — | — | 1 | |||||||
Balance, end of period | $ | 689 | $ | 3,072 | $ | 3,448 | ||||
Separate_Accounts_Death_Benefi1
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Separate Accounts, Death Benefits and Other Insurance Benefit Features [Abstract] | ' | ||||||||||
Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits | ' | ||||||||||
Changes in the gross GMDB and UL secondary guarantee benefits are as follows: | |||||||||||
GMDB | UL Secondary | ||||||||||
Guarantees | |||||||||||
Liability balance as of January 1, 2013 | $ | 944 | $ | 363 | |||||||
Incurred | 183 | 294 | |||||||||
Paid | (135 | ) | — | ||||||||
Unlock | (116 | ) | 2 | ||||||||
Impact of reinsurance transaction | — | 1,143 | |||||||||
Currency translation adjustment | (27 | ) | — | ||||||||
Liability balance as of December 31, 2013 | $ | 849 | $ | 1,802 | |||||||
Reinsurance recoverable asset, as of January 1, 2013 | $ | 608 | $ | 21 | |||||||
Incurred | 104 | 296 | |||||||||
Paid | (98 | ) | — | ||||||||
Unlock | (81 | ) | — | ||||||||
Impact of reinsurance transaction | — | 1,485 | |||||||||
Reinsurance recoverable asset, as of December 31, 2013 | $ | 533 | $ | 1,802 | |||||||
GMDB | UL Secondary | ||||||||||
Guarantees | |||||||||||
Liability balance as of January 1, 2012 | $ | 1,158 | $ | 228 | |||||||
Incurred | 228 | 113 | |||||||||
Paid | (258 | ) | — | ||||||||
Unlock | (181 | ) | 22 | ||||||||
Currency translation adjustment | (3 | ) | — | ||||||||
Liability balance as of December 31, 2012 | $ | 944 | $ | 363 | |||||||
Reinsurance recoverable asset, as of January 1, 2012 | $ | 724 | $ | 22 | |||||||
Incurred | 121 | (1 | ) | ||||||||
Paid | (121 | ) | — | ||||||||
Unlock | (116 | ) | — | ||||||||
Reinsurance recoverable asset, as of December 31, 2012 | $ | 608 | $ | 21 | |||||||
Individual Variable and Group Annuity Account Value By GMDB GMIB Type | ' | ||||||||||
The following table presents details concerning GMDB and GMIB exposure as of December 31, 2013: | |||||||||||
Individual Variable and Group Annuity Account Value by GMDB/GMIB Type | |||||||||||
Maximum anniversary value (“MAV”) [1] | Account | Net amount | Retained Net | Weighted Average | |||||||
Value | at Risk | Amount | Attained Age of | ||||||||
(“AV”) [8] | (“NAR”) [9] | at Risk | Annuitant | ||||||||
(“RNAR”) [9] | |||||||||||
MAV only | $ | 19,638 | $ | 2,914 | $ | 178 | 69 | ||||
With 5% rollup [2] | 1,610 | 232 | 16 | 69 | |||||||
With Earnings Protection Benefit Rider (“EPB”) [3] | 4,862 | 629 | 19 | 67 | |||||||
With 5% rollup & EPB | 588 | 119 | 5 | 70 | |||||||
Total MAV | 26,698 | 3,894 | 218 | ||||||||
Asset Protection Benefit (APB) [4] | 18,579 | 277 | 55 | 68 | |||||||
Lifetime Income Benefit (LIB) – Death Benefit [5] | 773 | 9 | 2 | 66 | |||||||
Reset [6] (5-7 years) | 3,286 | 74 | 34 | 69 | |||||||
Return of Premium [7] /Other | 12,476 | 71 | 17 | 67 | |||||||
Subtotal U.S. GMDB | $ | 61,812 | $ | 4,325 | $ | 326 | 68 | ||||
Less: General Account Value with U.S. GMBD | 4,349 | ||||||||||
Subtotal Separate Account Liabilities with GMDB | 57,463 | ||||||||||
Separate Account Liabilities without U.S. GMDB | 83,411 | ||||||||||
Total Separate Account Liabilities | $ | 140,874 | |||||||||
Japan GMDB [10], [11] | $ | 12,659 | $ | 167 | $ | — | 69 | ||||
Japan GMIB [10], [11] | $ | 12,456 | $ | 102 | $ | — | 69 | ||||
[1] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). | ||||||||||
[2] | Rollup GMDB is the greatest of the MAV, current AV, net premium paid and premiums (adjusted for withdrawals) accumulated at generally 5% simple interest up to the earlier of age 80 years or 100% of adjusted premiums. | ||||||||||
[3] | EPB GMDB is the greatest of the MAV, current AV, or contract value plus a percentage of the contract’s growth. The contract’s growth is AV less premiums net of withdrawals, subject to a cap of 200% of premiums net withdrawals. | ||||||||||
[4] | APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12 months). | ||||||||||
[5] | LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a benefit amount that ratchets over time, generally based on market performance. | ||||||||||
[6] | Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 (adjusted for withdrawals). | ||||||||||
[7] | ROP GMDB is the greater of current AV and net premiums paid. | ||||||||||
[8] | AV includes the contract holder’s investment in the separate account and the general account. | ||||||||||
[9] | NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. | ||||||||||
[10] | Assumed GMDB includes a ROP and MAV (before age 80) paid in a single lump sum. GMIB is a guarantee to return initial investment, adjusted for earnings liquidity, paid through a fixed annuity, after a minimum deferral period of 10, 15 or 20 years. The GRB related to the Japan GMIB was $11.7 billion as of December 31, 2013. The GRB related to the Japan GMAB and GMWB was $304 as of December 31, 2013. These liabilities are not included in the Separate Account as they are not legally insulated from the general account liabilities of the insurance enterprise. As of December 31, 2013, 100% of NAR is reinsured to an affiliate. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||
[11] | Policies with a guaranteed living benefit (a GMWB in the US or a GMIB in Japan) also have a guaranteed death benefit. The NAR for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR is released. | ||||||||||
Account balances of contracts with guarantees | ' | ||||||||||
Account balances of contracts with guarantees were invested in variable separate accounts as follows: | |||||||||||
Asset type | December 31, 2013 | December 31, 2012 | |||||||||
Equity securities (including mutual funds) | $ | 52,858 | $ | 58,208 | |||||||
Cash and cash equivalents | 4,605 | 6,940 | |||||||||
Total | $ | 57,463 | $ | 65,148 | |||||||
Sales_Inducements_Tables
Sales Inducements (Tables) (USD $) | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||||||||
Deferred Sales Inducements [Abstract] | ' | ' | ' | ' | |||||||||
Changes in Deferred Sales Inducements | ' | ' | ' | ' | |||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of period | $ | 118 | $ | 186 | $ | 197 | |||||||
Sales inducements deferred | — | 4 | 6 | ||||||||||
Amortization—Unlock | (3 | ) | (59 | ) | (4 | ) | |||||||
Amortization charged to income | (8 | ) | (13 | ) | (13 | ) | |||||||
Amortization related to business dispositions [1] | (71 | ) | — | — | |||||||||
Balance, end of period | $ | 36 | $ | 118 | $ | 186 | |||||||
Changes in deferred sales inducement | ' | ' | ' | ' | |||||||||
Balance, end of period | $36 | $118 | $186 | $197 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Future minimum lease commitments | ' |
Future minimum lease commitments as of December 31, 2013 are immaterial. |
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Provision benefit for income taxes | ' | |||||||||
Income tax expense (benefit) is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income tax expense (benefit) | ||||||||||
Current - U.S. Federal | $ | (208 | ) | $ | 139 | $ | (206 | ) | ||
Deferred - U.S. Federal Excluding NOL Carryforward | 405 | (94 | ) | 46 | ||||||
U.S. Net Operating Loss Carryforward | (148 | ) | (9 | ) | (163 | ) | ||||
Total Deferred | 257 | (103 | ) | (117 | ) | |||||
Income tax expense (benefit) | $ | 49 | $ | 36 | $ | (323 | ) | |||
Components of deferred tax assets and liabilities | ' | |||||||||
Deferred tax assets (liabilities) include the following as of December 31: | ||||||||||
As of December 31, | ||||||||||
Deferred Tax Assets | 2013 | 2012 | ||||||||
Tax basis deferred policy acquisition costs | $ | 163 | $ | 424 | ||||||
Investment-related items | 1,516 | 1,244 | ||||||||
Insurance product derivatives | 742 | 1,092 | ||||||||
NOL Carryover | 377 | 225 | ||||||||
Minimum tax credit | 327 | 355 | ||||||||
Foreign tax credit carryover | 44 | 33 | ||||||||
Capital loss carryover | — | 5 | ||||||||
Other | 71 | 65 | ||||||||
Total Deferred Tax Assets | 3,240 | 3,443 | ||||||||
Valuation Allowance | — | (53 | ) | |||||||
Net Deferred Tax Assets | 3,240 | 3,390 | ||||||||
Deferred Tax Liabilities | ||||||||||
Financial statement deferred policy acquisition costs and reserves | (650 | ) | (356 | ) | ||||||
Net unrealized gain on investments | (403 | ) | (1,432 | ) | ||||||
Employee benefits | (52 | ) | (45 | ) | ||||||
Depreciable and amortizable assets | (25 | ) | — | |||||||
Total Deferred Tax Liabilities | (1,130 | ) | (1,833 | ) | ||||||
Total Deferred Tax Asset | $ | 2,110 | $ | 1,557 | ||||||
Reconciliation of tax provision at Us federal statutory rate to provision for income taxes | ' | |||||||||
A reconciliation of the tax provision at the U.S. Federal statutory rate to the provision (benefit) for income taxes is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Tax provision (benefit) at the U.S. federal statutory rate | $ | 196 | $ | 186 | $ | (48 | ) | |||
Dividends-received deduction | (135 | ) | (140 | ) | (201 | ) | ||||
Foreign related investments | (7 | ) | (9 | ) | (15 | ) | ||||
Valuation Allowance | — | — | (56 | ) | ||||||
Other | (5 | ) | (1 | ) | (3 | ) | ||||
Income tax expense (benefit) | $ | 49 | $ | 36 | $ | (323 | ) | |||
Statutory_Results_Tables
Statutory Results (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Insurance [Abstract] | ' | |||||||||
Statutory net income and surplus amounts | ' | |||||||||
The statutory net income (loss) and surplus was as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Combined statutory net income (loss) | $ | 1,290 | $ | 927 | $ | (669 | ) | |||
Statutory capital and surplus | $ | 5,005 | $ | 5,016 | $ | 5,920 | ||||
Transactions_with_Affiliates_T
Transactions with Affiliates (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Related Party Transactions [Abstract] | ' | |||||||||
Impact of transactions with affiliates | ' | |||||||||
The impact of this transaction on the Company’s Consolidated Statements of Operations is as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Earned premiums | $ | (31 | ) | $ | (58 | ) | $ | (61 | ) | |
Net realized gains (losses) [1] | (1,665 | ) | (2,130 | ) | 483 | |||||
Total revenues | (1,696 | ) | (2,188 | ) | 422 | |||||
Benefits, losses and loss adjustment expenses | (8 | ) | (55 | ) | (50 | ) | ||||
Insurance operating costs and other expenses | (1,158 | ) | (1,442 | ) | 836 | |||||
Total expenses | (1,166 | ) | (1,497 | ) | 786 | |||||
Loss before income taxes | (530 | ) | (691 | ) | (364 | ) | ||||
Income tax benefit | (185 | ) | (242 | ) | (127 | ) | ||||
Net loss | $ | (345 | ) | $ | (449 | ) | $ | (237 | ) | |
[1] Amounts represent the change in valuation of the derivative associated with this transaction. |
Restructuring_and_Other_Costs_
Restructuring and Other Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Restructuring, Severance and Other Costs [Abstract] | ' | ||||||||||||
Schedule of restructuring and related costs | ' | ||||||||||||
Restructuring and other costs, pre-tax incurred by the Company in connection with these activities are as follows: | |||||||||||||
For the years ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Severance benefits and related costs | $ | 7 | $ | 93 | |||||||||
Professional fees | 15 | 23 | |||||||||||
Asset impairment charges | 5 | 4 | |||||||||||
Total restructuring and other costs | $ | 27 | $ | 120 | |||||||||
Schedule of restructuring liability balance | ' | ||||||||||||
Changes in the accrued restructuring liability balance included in other liabilities in the Company's Consolidated Balance Sheets are as follows: | |||||||||||||
For the year ended December 31, 2013 | |||||||||||||
Severance Benefits and Related Costs | Professional Fees | Asset Impairment Charges | Total Restructuring and Other Costs | ||||||||||
Balance, beginning of period | $ | 31 | $ | — | $ | — | $ | 31 | |||||
Accruals/provisions | 7 | 15 | 5 | 27 | |||||||||
Payments/write-offs | (37 | ) | (15 | ) | (5 | ) | (57 | ) | |||||
Balance, end of period | $ | 1 | $ | — | $ | — | $ | 1 | |||||
For the year ended December 31, 2012 | |||||||||||||
Severance Benefits and Related Costs | Professional Fees | Asset Impairment Charges | Total Restructuring and Other Costs | ||||||||||
Balance, beginning of period | $ | — | $ | — | $ | — | $ | — | |||||
Accruals/provisions | 93 | 23 | 4 | 120 | |||||||||
Payments/write-offs | (62 | ) | (23 | ) | (4 | ) | (89 | ) | |||||
Balance, end of period | $ | 31 | $ | — | $ | — | $ | 31 | |||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | ||||||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | 1,752 | $ | 258 | $ | (23 | ) | $ | 1,987 | ||||
OCI before reclassifications | (352 | ) | (94 | ) | 23 | (423 | ) | ||||||
Amounts reclassified from AOCI | (905 | ) | (85 | ) | — | (990 | ) | ||||||
Net OCI | (1,257 | ) | (179 | ) | 23 | (1,413 | ) | ||||||
Ending balance | $ | 495 | $ | 79 | $ | — | $ | 574 | |||||
For the year ended December 31, 2012 | |||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | 632 | $ | 368 | $ | (47 | ) | 953 | |||||
OCI before reclassifications | 1,084 | 6 | 24 | 1,114 | |||||||||
Amounts reclassified from AOCI | 36 | (116 | ) | — | (80 | ) | |||||||
Net OCI | 1,120 | (110 | ) | 24 | 1,034 | ||||||||
Ending balance | $ | 1,752 | $ | 258 | $ | (23 | ) | $ | 1,987 | ||||
For the year ended December 31, 2011 | |||||||||||||
Net Unrealized Gain on Securities | Net Gain (Loss) on Cash-Flow Hedging Instruments | Foreign Currency Translation Adjustments | Total AOCI | ||||||||||
Beginning balance | $ | (542 | ) | $ | 265 | $ | (45 | ) | (322 | ) | |||
OCI before reclassifications | 1,223 | 156 | (2 | ) | 1,377 | ||||||||
Amounts reclassified from AOCI | (49 | ) | (53 | ) | — | (102 | ) | ||||||
Net OCI | 1,174 | 103 | (2 | ) | 1,275 | ||||||||
Ending balance | $ | 632 | $ | 368 | $ | (47 | ) | $ | 953 | ||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||||
Discontinued Operations | ||||||||||
On December 12, 2013, the Company completed the sale of HLIL, an indirect wholly-owned subsidiary of the Company. For further information regarding the sale of HLIL, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. | ||||||||||
On December 10, 2012, HLA received regulatory approval to reorganize its Mutual Funds business for the purpose of streamlining the business by consolidating the entities that provide services to the Mutual Funds business under a subsidiary of HLI, thereby separating its Mutual Funds business from its insurance business. Following the reorganization, the Company will no longer have any significant continuing involvement in HLI's Mutual Funds business. For further discussion of the reorganization of the Mutual Funds business, see Note 1 - Basis of Presentation and Significant Accounting Policies and Note 7 - Goodwill of Notes to Consolidated Financial Statements. | ||||||||||
The Company does not expect these transactions to have a material impact on the Company’s future earnings. The results of operations reflected as discontinued operations in the Consolidated Statements of Operations, consisting of amounts related to HLIL and the Company's Mutual Funds business, are as follows: | ||||||||||
For the years ended December 31, | ||||||||||
2013 | 2012 | 2011 | ||||||||
Revenues | ||||||||||
Earned Premiums | $ | (23 | ) | $ | — | $ | — | |||
Fee income and other | 14 | 563 | 609 | |||||||
Net investment income (loss) | ||||||||||
Securities available-for-sale and other | (3 | ) | 10 | 8 | ||||||
Equity securities, trading | 139 | 201 | (14 | ) | ||||||
Total net investment income (loss) | 136 | 211 | (6 | ) | ||||||
Net realized capital gains (losses) | (14 | ) | 68 | 78 | ||||||
Total revenues | 113 | 842 | 681 | |||||||
Benefits, losses and expenses | ||||||||||
Benefits, losses and loss adjustment expenses | 2 | — | (1 | ) | ||||||
Benefits, losses and loss adjustment expenses - returns credited on international variable annuity | 139 | 201 | (14 | ) | ||||||
Amortization of DAC | — | 35 | 47 | |||||||
Insurance operating costs and other expenses | (33 | ) | 410 | 541 | ||||||
Goodwill impairment | — | 149 | — | |||||||
Total benefits, losses and expenses | 108 | 795 | 573 | |||||||
Income (loss) before income taxes | 5 | 47 | 108 | |||||||
Income tax expense (benefit) | (5 | ) | (14 | ) | 50 | |||||
Income (loss) from operations of discontinued operations, net of tax | 10 | 61 | 58 | |||||||
Net realized capital losses on disposal, net of tax | (51 | ) | — | — | ||||||
Income (loss) from discontinued operations, net of tax | $ | (41 | ) | $ | 61 | $ | 58 | |||
Discontinued operations in condensed consolidated statements of operations | ' | |||||||||
As of December 31, 2012 | ||||||||||
Carrying Value | ||||||||||
Total fixed maturities, AFS, at fair value (amortized cost of $13,596) [1] | $ | 15,015 | ||||||||
Equity securities, AFS, at fair value (cost of $27) [2] | 28 | |||||||||
Fixed maturities, at fair value using the FVO [3] | 16 | |||||||||
Mortgage loans (net of allowances for loan losses of $1) | 1,288 | |||||||||
Policy loans, at outstanding balance | 542 | |||||||||
Total invested assets transferred | $ | 16,889 | ||||||||
[1] The market value includes the fair value of bifurcated embedded derivative features of certain securities. Changes in fair value are recorded in the net unrealized capital gains (losses). | ||||||||||
[2] Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively. | ||||||||||
[3] All equity securities transferred are included in level 2 of the fair value hierarchy. | ||||||||||
[4] All FVO securities transferred are included in level 3 of the fair value hierarchy. |
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Total revenues | $ | 2,267 | $ | 198 | $ | 229 | $ | 2,110 | $ | 804 | $ | 1,170 | $ | 335 | $ | 626 | |||||||||
Total benefits, losses and expenses | 1,754 | (60 | ) | 271 | 2,014 | 550 | 948 | 519 | 671 | ||||||||||||||||
Income (loss) from continuing operations, net of tax | 367 | 202 | 11 | 93 | 202 | 173 | (68 | ) | 27 | ||||||||||||||||
Income (loss) from discontinued operations, net of tax | 19 | 86 | (46 | ) | (6 | ) | (1 | ) | 30 | (13 | ) | (49 | ) | ||||||||||||
Net income (loss) | 386 | 288 | (35 | ) | 87 | 201 | 203 | (81 | ) | (22 | ) | ||||||||||||||
Less: Net income (loss) attributable to the noncontrolling interest | 6 | (1 | ) | — | — | — | — | — | 3 | ||||||||||||||||
Net income (loss) attributable to Hartford Life Insurance Company | $ | 380 | $ | 289 | $ | (35 | ) | $ | 87 | $ | 201 | $ | 203 | $ | (81 | ) | $ | (25 | ) | ||||||
Basis_of_Presentation_and_Acco2
Basis of Presentation and Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Goodwill impairment loss | ' | $0 | ' |
Total stockholder’s equity | 8,239,000,000 | 10,383,000,000 | ' |
Participating policies of total life insurance | 2.00% | 5.00% | 2.00% |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | ' | ' |
LTV ratio loss contingency valuation allowance | 90.00% | ' | ' |
Participating dividend to policyholders | 18,000,000 | 20,000,000 | 17,000,000 |
Maximum uncollateralized threshold for derivative counter party, single level entity | 10,000,000 | ' | ' |
Gross profit estimates term | '20 years | ' | ' |
Mutual Funds [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Goodwill impairment loss | 10,000,000 | ' | ' |
Mutual funds segment less than, percent | ' | 10.00% | ' |
Entites distributed carrying value | ' | $203,000,000 | $116,000,000 |
Business_Dispositions_Sale_of_
Business Dispositions (Sale of Retirement Plans and Individual Life) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2013 | Dec. 31, 2012 | Jan. 02, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jul. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |||
Hartford Life International Limited [Member] | Hartford Life International Limited [Member] | Retirement Plans [Member] | Retirement Plans [Member] | Retirement Plans [Member] | Retirement Plans [Member] | Individual Life [Member] | Individual Life [Member] | Individual Life [Member] | Individual Life [Member] | Individual Life [Member] | Subsequent Event [Member] | Parent [Member] | Mass Mutual [Member] | Prudential [Member] | Philadelphia Financial Group, Inc. [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||
Retirement Plans [Member] | Individual Life [Member] | Retirement Plans [Member] | Individual Life [Member] | Hartford Life Private Placement LLC [Member] | Mass Mutual [Member] | Prudential [Member] | Mass Mutual [Member] | Prudential [Member] | |||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from Divestiture of Businesses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $285,000,000 | ' | $355,000,000 | ' | ' | ' | ' | $615,000,000 | ' | ' | ' | ' | $590,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
Gain (Loss) on Disposition of Business | ' | ' | ' | ' | ' | ' | ' | ' | 1,561,000,000 | 0 | 0 | ' | 51,000,000 | 45,000,000 | ' | ' | ' | ' | 61,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Gain (Loss) on Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 634,000,000 | ' | ' | ' | ' | 927,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | 69,000,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Disposal Group, Not Discontinued Operation, Reinsurance Loss | ' | ' | ' | ' | ' | ' | ' | ' | 1,491,000,000 | 61,000,000 | 0 | ' | ' | 565,000,000 | ' | ' | ' | ' | 927,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Goodwill | 0 | ' | ' | 163,000,000 | 250,000,000 | ' | ' | ' | 0 | 250,000,000 | ' | ' | ' | ' | ' | ' | 87,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | 335,000,000 | 804,000,000 | 229,000,000 | 2,267,000,000 | 626,000,000 | 1,170,000,000 | 2,110,000,000 | 198,000,000 | 3,655,000,000 | 4,104,000,000 | 5,922,000,000 | ' | ' | ' | 706,000,000 | 766,000,000 | ' | 1,300,000,000 | ' | 1,303,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net Income (Loss) Attributable to Parent | -81,000,000 | 201,000,000 | -35,000,000 | 380,000,000 | -25,000,000 | 203,000,000 | 87,000,000 | 289,000,000 | 465,000,000 | 554,000,000 | 244,000,000 | ' | ' | ' | -39,000,000 | 3,000,000 | ' | ' | ' | 21,000,000 | 85,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net realized capital gain (loss) on disposal, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,000,000 | ' | ' | ' | ' | ||
Policyholder liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,300,000,000 | ' | ' | 9,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Separate accounts liabilities | 57,463,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | 57,463,000,000 | [1],[2] | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 5,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Policy loans, at outstanding balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,300,000,000 | ' | ' | ' | ' | ' | ' | ||
Disposal Group, Including Discontinued Operation, Other Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Sale of Retirement Plans, Transition Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | '24 months | ' | ||
Invested assets transferred, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Disposal Group, Assets of Business Transferred under Modified Coinsurance Arrangement | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | ' | ' | ||
Deferred policy acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other liabilities (includes variable interest entity liabilities of [$0] and $111 ) | 3,788,000,000 | ' | ' | ' | 9,535,000,000 | ' | ' | ' | 3,788,000,000 | 9,535,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Sale of Life Insurance Products, Transition Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | '24 months | ||
Estimated reinsurance loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). | ||||||||||||||||||||||||||||||||
[2] | AV includes the contract holder’s investment in the separate account and the general account. |
Business_Dispositions_Invested
Business Dispositions (Invested Assests Sold) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | $49,804 | [1] | $28,535 | [1] |
Fixed maturities, FVO | 49,404 | 28,163 | ||
Mortgage loans (net of allowances for loan losses of $1) | 4,935 | 3,470 | ||
Policy loans, at outstanding balance | 1,951 | 1,416 | ||
Total fixed maturities, AFS | 45,753 | 27,188 | ||
Equity securities, AFS | 408 | 362 | ||
Mortgage loans (net of allowances for loan losses of $1) | 14 | 12 | ||
Equity securities, AFS | 400 | 372 | ||
Retirement Plans and Individual Life Businesses [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Intent to sell impairment | 173 | ' | ||
Gains on derivatives hedging | 108 | ' | ||
Fair Value | 15,015 | [2] | ' | |
Fixed maturities, FVO | 16 | [3] | ' | |
Mortgage loans (net of allowances for loan losses of $1) | 1,288 | ' | ||
Policy loans, at outstanding balance | 542 | ' | ||
Policy loans, at outstanding balance | 16,889 | ' | ||
Total fixed maturities, AFS | ' | 13,596 | ||
Equity securities, AFS | ' | 27 | ||
Mortgage loans (net of allowances for loan losses of $1) | ' | 1 | ||
Equity securities, AFS | 28 | [4] | ' | |
Asset-backed Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 1,673 | 1,129 | ||
Collateralized Debt Obligations [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 2,160 | [5] | 1,448 | [5] |
Commercial Mortgage Backed Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 3,912 | 2,347 | ||
Corporate Debt Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 30,979 | [5] | 16,917 | [5] |
Foreign Government Debt Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 1,460 | 1,177 | ||
Municipal [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 1,998 | 965 | ||
Residential Mortgage Backed Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 4,671 | 2,431 | ||
US Treasury Securities [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 2,551 | 1,749 | ||
Fair Value, Inputs, Level 2 [Member] | Retirement Plans and Individual Life Businesses [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | 14,400 | ' | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 4,935 | 3,470 | ||
Policy loans, at outstanding balance | 1,951 | 1,416 | ||
Fair Value, Inputs, Level 3 [Member] | Retirement Plans and Individual Life Businesses [Member] | ' | ' | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ||
Fair Value | $657 | ' | ||
[1] | Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||
[2] | Includes $14.4 billion and $657 of securities in level 2 and 3 of the fair value hierarchy, respectively. | |||
[3] | All FVO securities transferred are included in level 3 of the fair value hierarchy. | |||
[4] | All equity securities transferred are included in level 2 of the fair value hierarchy. | |||
[5] | Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other liabilities [Member] | Other liabilities [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | U.S. Treasuries [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, 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U.S. [Member] | U.S. [Member] | International [Member] | International [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other liabilities [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Equity linked notes [Member] | Equity linked notes [Member] | Macro Hedge Program [Member] | Macro Hedge Program [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Derivative Liabilities [Member] | Derivative Liabilities [Member] | Credit derivative [Member] | Credit derivative [Member] | Equity derivative [Member] | Equity derivative [Member] | Foreign exchange derivative [Member] | Foreign exchange derivative [Member] | Interest rate derivatives [Member] | Interest rate derivatives [Member] | ABS [Member] | ABS [Member] | Collateralized Debt Obligations [Member] | Collateralized Debt Obligations [Member] | CMBS [Member] | CMBS [Member] | Corporate [Member] | Corporate [Member] | Foreign Government Debt Securities [Member] | Foreign Government Debt Securities [Member] | Municipal [Member] | Municipal [Member] | RMBS [Member] | RMBS [Member] | U.S. Treasuries [Member] | U.S. Treasuries [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other liabilities [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Equity linked notes [Member] | Equity linked notes [Member] | Macro Hedge Program [Member] | Macro Hedge Program [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Derivative Liabilities [Member] | Derivative Liabilities [Member] | Credit derivative [Member] | Credit derivative [Member] | Equity derivative [Member] | Equity derivative [Member] | Foreign exchange derivative [Member] | Foreign exchange derivative [Member] | Interest rate derivatives [Member] | Interest rate derivatives [Member] | ABS [Member] | ABS [Member] | Collateralized Debt Obligations [Member] | Collateralized Debt Obligations [Member] | CMBS [Member] | CMBS [Member] | Corporate [Member] | Corporate [Member] | Foreign Government Debt Securities [Member] | Foreign Government Debt Securities [Member] | Municipal [Member] | Municipal [Member] | RMBS [Member] | RMBS [Member] | U.S. Treasuries [Member] | U.S. Treasuries [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other liabilities [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Equity linked notes [Member] | Equity linked notes [Member] | Macro Hedge Program [Member] | Macro Hedge Program [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Hedging Derivatives [Member] | Derivative Liabilities [Member] | Derivative Liabilities [Member] | Credit derivative [Member] | Credit derivative [Member] | Equity derivative [Member] | Equity derivative [Member] | Foreign exchange derivative [Member] | Foreign exchange derivative [Member] | Interest rate derivatives [Member] | Interest rate derivatives [Member] | ABS [Member] | ABS [Member] | Collateralized Debt Obligations [Member] | Collateralized Debt Obligations [Member] | CMBS [Member] | CMBS [Member] | Corporate [Member] | Corporate [Member] | Foreign Government Debt Securities [Member] | Foreign Government Debt Securities [Member] | Municipal [Member] | Municipal [Member] | RMBS [Member] | RMBS [Member] | U.S. Treasuries [Member] | U.S. Treasuries [Member] | International [Member] | International [Member] | International [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | ' | ' | $0 | [1] | $0 | [1],[2] | ' | $0 | ' | $0 | [1] | $0 | [1] | ' | $0 | [1],[3] | $0 | [1],[2],[3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | [1],[4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | [4],[5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | ' | ' | 594,000,000 | 3,127,000,000 | [2] | 5,785,000,000 | [2] | 0 | -9,000,000 | 2,000,000 | 2,000,000 | 4,000,000 | 576,000,000 | [3] | 3,119,000,000 | [2],[3] | 5,776,000,000 | [2],[3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -465,000,000 | [4] | 1,081,000,000 | [4] | 3,073,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets accounted for at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, FVO | 28,163,000,000 | 49,404,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,163,000,000 | 49,404,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,129,000,000 | 1,673,000,000 | 1,448,000,000 | 2,160,000,000 | 2,347,000,000 | 3,912,000,000 | 16,917,000,000 | 30,979,000,000 | 1,177,000,000 | 1,460,000,000 | 965,000,000 | 1,998,000,000 | 2,431,000,000 | 4,671,000,000 | 1,749,000,000 | 2,551,000,000 | 1,077,000,000 | 78,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,077,000,000 | 78,000,000 | 24,515,000,000 | 45,157,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,021,000,000 | 1,435,000,000 | 1,020,000,000 | 1,437,000,000 | 1,987,000,000 | 3,380,000,000 | 16,127,000,000 | 29,639,000,000 | 1,139,000,000 | 1,426,000,000 | 916,000,000 | 1,829,000,000 | 1,633,000,000 | 3,538,000,000 | 672,000,000 | 2,473,000,000 | 2,571,000,000 | 4,169,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 108,000,000 | 238,000,000 | 428,000,000 | 723,000,000 | 360,000,000 | 532,000,000 | 790,000,000 | 1,340,000,000 | 38,000,000 | 34,000,000 | 49,000,000 | 169,000,000 | 798,000,000 | 1,133,000,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities, FVO | 791,000,000 | 1,010,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 791,000,000 | 1,010,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 613,000,000 | 805,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,000,000 | 199,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, trading | 12,000,000 | 1,847,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | 1,847,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | 1,847,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities, AFS | 372,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 372,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,000,000 | 203,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 114,000,000 | 142,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,000,000 | 55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,000,000 | 186,000,000 | 171,000,000 | 127,000,000 | 26,000,000 | 36,000,000 | 272,000,000 | [6] | 581,000,000 | [6] | 9,000,000 | -10,000,000 | ' | 30,000,000 | 14,000,000 | 104,000,000 | -57,000,000 | 108,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | [6] | 0 | [6] | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 173,000,000 | 142,000,000 | -42,000,000 | -53,000,000 | 99,000,000 | [6] | 337,000,000 | [6] | 11,000,000 | 0 | ' | 0 | 14,000,000 | 104,000,000 | -57,000,000 | 144,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 109,000,000 | 186,000,000 | -2,000,000 | -15,000,000 | 68,000,000 | 89,000,000 | 173,000,000 | [6] | 244,000,000 | [6] | -2,000,000 | -10,000,000 | ' | 30,000,000 | 0 | 0 | 0 | -36,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | 1,952,000,000 | 2,354,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,952,000,000 | 2,354,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 228,000,000 | 242,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,724,000,000 | 2,112,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Partnerships and Other Alternative Investments | 1,329,000,000 | 1,372,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 468,000,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | [7] | 0 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 414,000,000 | [7] | 264,000,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54,000,000 | [7] | 150,000,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 414,000,000 | [7] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -398,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -465,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance recoverable for U.S. GMWB and Japan GMWB, GMIB, and GMAB | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,081,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,081,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Separate account assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138,482,000,000 | [8] | 138,497,000,000 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99,917,000,000 | [8] | 97,976,000,000 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,828,000,000 | [8] | 39,938,000,000 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 737,000,000 | [8] | 583,000,000 | [8] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||
Total assets accounted for at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 170,114,000,000 | 195,588,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101,441,000,000 | 100,352,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,374,000,000 | 88,755,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,299,000,000 | 6,481,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of level to total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities accounted for at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities accounted for at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,421,000,000 | -3,091,000,000 | -594,000,000 | -3,127,000,000 | 0 | -2,000,000 | [9] | -2,000,000 | [9] | -576,000,000 | -3,119,000,000 | -18,000,000 | -8,000,000 | 30,000,000 | 100,000,000 | -198,000,000 | -231,000,000 | 15,000,000 | 536,000,000 | -825,000,000 | [10] | 38,000,000 | [8] | 11,000,000 | -6,000,000 | 18,000,000 | 15,000,000 | -382,000,000 | -17,000,000 | -319,000,000 | -359,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | [9] | 0 | [9] | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | [10] | 0 | [8] | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -856,000,000 | -440,000,000 | 0 | 0 | 0 | 0 | [9] | 0 | [9] | 0 | 0 | 0 | 0 | 0 | 0 | -139,000,000 | -171,000,000 | -63,000,000 | 106,000,000 | -856,000,000 | [10] | -440,000,000 | [8] | 7,000,000 | -20,000,000 | 16,000,000 | 0 | -382,000,000 | -17,000,000 | -295,000,000 | -338,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -565,000,000 | -2,651,000,000 | -594,000,000 | -3,127,000,000 | 0 | -2,000,000 | [9] | -2,000,000 | [9] | -576,000,000 | -3,119,000,000 | -18,000,000 | -8,000,000 | 30,000,000 | 100,000,000 | -59,000,000 | -60,000,000 | 78,000,000 | 430,000,000 | 31,000,000 | [10] | 478,000,000 | [8] | 4,000,000 | 14,000,000 | 2,000,000 | 15,000,000 | 0 | 0 | -24,000,000 | -21,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||||||||||||||||||||||||||||
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Netted Against Liability Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 204,000,000 | [11] | 722,000,000 | [11] | 661,000,000 | [11] | -61,000,000 | [11] | -75,000,000 | [11] | -35,000,000 | [11] | 146,000,000 | [11] | 519,000,000 | [11] | 883,000,000 | [11] | 2,000,000 | [11] | 4,000,000 | [11] | -489,000,000 | [11] | 2,000,000 | [11] | 45,000,000 | [11] | 36,000,000 | [11] | -24,000,000 | [11] | -57,000,000 | [11] | -91,000,000 | [11] | 0 | 0 | |||||||||||||||||||||||||||||||||||
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Netted Against Liability Transfers into Level Three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,000,000 | ' | ' | $8,000,000 | ' | ' | $0 | ' | ' | $0 | ' | ' | $0 | ' | ' | $0 | ' | ' | ($20,000,000) | ' | |||||||||||||||||||||||||||||||||||||||||||||||||||||
[1] | All amounts are before income taxes and amortization of DAC. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | Includes fair value of reinsurance recoverables of approximately $495 and $900 as of December 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Includes OTC and OTC-cleared derivative instruments in a net asset value position after consideration of the impact of collateral posting requirements, which may be imposed by agreements, clearinghouse rules, and applicable law. At December 31, 2013 and December 31, 2012, $120 and $92, respectively, was netted against the derivative asset value in the Consolidated Balance Sheet and is excluded from the table above. For further information on derivative liabilities, see below in this Note 3. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Represents hedge funds where investment company accounting has been applied to a wholly-owned fund of funds measured at fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[8] | As of December 31, 2013 and 2012, excludes approximately $2.4 billion and $3.1 billion, respectively, of investment sales receivable that are not subject to fair value accounting. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[9] | Represents embedded derivatives associated with non-funding agreement-backed consumer equity-linked notes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[10] | Includes OTC and OTC-cleared derivative instruments in a net negative market value position (derivative liability). In the Level 3 roll forward table included below in this Note, the sum of the derivative asset and liability positions are referred to as “freestanding derivatives†and are presented on a net basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[11] | Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Consolidated Balance Sheet in other investments and other liabilities. |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Measured at Fair Values) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | ($66) | $44 | |
Fair value measurements valuation techniques | 'Option model | 'Option model | |
Fair value measurements significant assumptions | 'Equity volatility | 'Equity volatility | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | 'Increase |
International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Short Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | -12 | ' | |
Fair value measurements significant assumptions | 'Interest rate volatility | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [1] | ' |
International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Long Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 48 | -119 | |
Fair value measurements valuation techniques | 'Option model | 'Option model | |
Fair value measurements significant assumptions | 'Interest rate volatility | 'Interest rate volatility | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | 'Increase |
Maximum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 37.00% | 33.00% | |
Maximum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Short Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 1.00% | ' | |
Maximum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Long Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 1.00% | 1.00% | |
Minimum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 29.00% | 22.00% | |
Minimum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Short Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 0.00% | ' | |
Minimum [Member] | International program hedging instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Long Interest Rate Swaptions [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 1000000.00% | 0.00% | |
US Macro Hedge Program [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 139 | 286 | |
Fair value measurements valuation techniques | 'Option model | 'Option model | |
Fair value measurements significant assumptions | 'Equity volatility | 'Equity volatility | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | 'Increase |
US Macro Hedge Program [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 31.00% | 43.00% | |
US Macro Hedge Program [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 24.00% | 24.00% | |
Free standing Derivatives [Member] | ' | ' | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | |
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Netted Against Liability Transfers into Level Three | 28 | ' | |
CMBS [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 360 | 532 | |
Fair value measurements valuation techniques | 'Discounted cash flows | 'Discounted cash flows | |
Fair value measurements significant assumptions | 'Spread (encompasses prepayment, default risk and loss severity) | 'Spread (encompasses prepayment, default risk and loss severity) | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2] | 'Decrease |
CMBS [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 25.11% | ' | |
CMBS [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 0.99% | ' | |
CMBS [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 4.46% | ' | |
Corporate [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 398 | [3] | 888 |
Fair value measurements valuation techniques | 'Discounted cash flows | [3] | 'Discounted cash flows |
Fair value measurements significant assumptions | 'Spread | [3] | 'Spread |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2],[3] | 'Decrease |
Corporate [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 55.94% | ' | |
Corporate [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 1.19% | ' | |
Corporate [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 3.32% | ' | |
Equity Derivatives [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | ' | 45 | |
Fair value measurements valuation techniques | ' | 'Option model | |
Fair value measurements significant assumptions | ' | 'Equity volatility | |
Positive or negative relationship of change in input to change in fair value measurement | ' | 'Increase | |
Equity Derivatives [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | ' | 24.00% | |
Equity Derivatives [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | ' | 13.00% | |
Interest Rate Derivative [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | -24 | -57 | |
Fair value measurements valuation techniques | 'Discounted cash flows | 'Discounted cash flows | |
Fair value measurements significant assumptions | 'Swap curve beyond 30 years | 'Swap curve beyond 30 years | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | 'Increase |
Interest Rate Derivative [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Interest Rate Volatility | 4.00% | 2.80% | |
Interest Rate Derivative [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Interest Rate Volatility | 4.00% | 2.80% | |
U.S. GMWB Hedging Instruments [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 72 | 281 | |
Fair value measurements valuation techniques | 'Option model | 'Option model | |
Fair value measurements significant assumptions | 'Equity volatility | 'Equity volatility | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | 'Increase |
U.S. GMWB Hedging Instruments [Member] | Customized swaps [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 74 | 238 | |
Fair value measurements valuation techniques | 'Discounted cash flows | 'Discounted cash flows | |
Fair value measurements significant assumptions | 'Equity volatility | 'Equity volatility | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1] | ' |
U.S. GMWB Hedging Instruments [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 29.00% | 31.00% | |
U.S. GMWB Hedging Instruments [Member] | Maximum [Member] | Customized swaps [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 50.00% | 50.00% | |
U.S. GMWB Hedging Instruments [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | Equity options [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 21.00% | 10.00% | |
U.S. GMWB Hedging Instruments [Member] | Minimum [Member] | Customized swaps [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs Equity Volatility | 10.00% | 10.00% | |
Municipal [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 29 | 169 | |
Fair value measurements valuation techniques | 'Discounted cash flows | 'Discounted cash flows | |
Fair value measurements significant assumptions | 'Spread | 'Spread | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2] | 'Decrease |
Municipal [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair value inputs treasury yield | 1.84% | ' | |
Municipal [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair value inputs treasury yield | 1.84% | ' | |
Municipal [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair value inputs treasury yield | 1.84% | ' | |
RMBS [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Assets accounted for at fair value on a recurring basis | 798 | 1,133 | |
Fair value measurements valuation techniques | 'Discounted cash flows | 'Discounted cash flows | |
RMBS Type 1 [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair value measurements significant assumptions | 'Spread | 'Spread | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2] | 'Decrease |
RMBS Type 1 [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 17.48% | ' | |
RMBS Type 1 [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 0.62% | ' | |
RMBS Type 1 [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Inputs [Abstract] | ' | ' | |
Fair Value Inputs, Counterparty Credit Risk | 2.45% | ' | |
RMBS Type 2 [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair value measurements significant assumptions | 'Constant prepayment rate | 'Constant prepayment rate | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease [4] | [2],[4] | 'Decrease [4] |
RMBS Type 2 [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Prepayment Rate | 10.00% | 12.00% | |
RMBS Type 2 [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Prepayment Rate | 0.00% | 0.00% | |
RMBS Type 2 [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Prepayment Rate | 3.00% | [5] | 2.00% |
RMBS Type 3 [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair value measurements significant assumptions | 'Constant default rate | 'Constant default rate | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2] | 'Decrease |
RMBS Type 3 [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Probability of Default | 22.00% | 24.00% | |
RMBS Type 3 [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Probability of Default | 1.00% | 1.00% | |
RMBS Type 3 [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Probability of Default | 8.00% | [5] | 8.00% |
RMBS Type 4 [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair value measurements significant assumptions | 'Loss severity | 'Loss severity | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2] | 'Decrease |
RMBS Type 4 [Member] | Maximum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Loss Severity | 100.00% | 100.00% | |
RMBS Type 4 [Member] | Minimum [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Loss Severity | 0.00% | 0.00% | |
RMBS Type 4 [Member] | Weighted Average [Member] | Income approach Valuation Technique [Member] | Level 3 [Member] | ' | ' | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Abstract] | ' | ' | |
Fair Value Inputs, Loss Severity | 80.00% | [5] | 80.00% |
US Macro Hedge Program [Member] | UNITED STATES | Free standing Derivatives [Member] | ' | ' | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' | |
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Asset Netted Against Liability Transfers into Level Three | $0 | ' | |
[1] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. | ||
[2] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above. | ||
[3] | Level 3 corporate and municipal securities excludes those for which the Company bases fair value on broker quotations as discussed below. | ||
[4] | Decrease for above market rate coupons and increase for below market rate coupons. | ||
[5] | The weighted average is determined based on the fair value of the securities |
Fair_Value_Measurements_Margin
Fair Value Measurements (Margins) (Details) (Level 3 [Member]) | 12 Months Ended | |
Dec. 31, 2013 | ||
Withdrawal Utilization [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1],[2] |
Withdrawal Utilization [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 100.00% | [1] |
Withdrawal Utilization [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 20.00% | [1] |
Withdrawal Rates [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [1],[2] |
Withdrawal Rates [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 8.00% | [1] |
Withdrawal Rates [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 0.00% | [1] |
Annuitizationutilization [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [2],[3] |
Annuitizationutilization [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 100.00% | [3] |
Annuitizationutilization [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 0.00% | [3] |
Lapse Rates [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Decrease | [2],[4] |
Lapse Rates [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 75.00% | [4] |
Lapse Rates [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 0.00% | [4] |
Reset Elections [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [2],[5] |
Reset Elections [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 75.00% | [5] |
Reset Elections [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 20.00% | [5] |
Equity Volatility [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Positive or negative relationship of change in input to change in fair value measurement | 'Increase | [2],[6] |
Equity Volatility [Member] | Maximum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 50.00% | [6] |
Equity Volatility [Member] | Minimum [Member] | ' | |
Fair Value Inputs [Abstract] | ' | |
Range of Values-Unobservable Inputs | 10.00% | [6] |
[1] | Ranges represent assumed cumulative percentages of policyholders taking withdrawals and the annual amounts withdrawn. | |
[2] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. | |
[3] | For reinsurance associated with Japan GMIB, range represents assumed cumulative percentages of policyholders annuitizing variable annuity contracts. | |
[4] | Range represents assumed annual percentages of full surrender of the underlying variable annuity contracts across all policy durations for in force business. | |
[5] | Range represents assumed cumulative percentages of policyholders that would elect to reset their guaranteed benefit base. | |
[6] | Range represents implied market volatilities for equity indices based on multiple pricing sources. |
Fair_Value_Measurements_Fixed_
Fair Value Measurements (Fixed Maturities) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fixed Maturities [Member] | Available-for-sale Securities [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | $4,169 | $3,842 | ||
Total realized/unrealized gains (losses) included in net income | 36 | [1],[2] | -133 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 220 | [3] | 563 | [3] |
Purchases | 275 | 677 | ||
Settlements | -458 | -432 | ||
Sales | -1,431 | -493 | ||
Transfers into Level 3 | 161 | [4] | 1,293 | [4] |
Transfers out of Level 3 | -401 | [4] | -1,148 | [4] |
Fair value, Ending Balance | 2,571 | 4,169 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -17 | [1],[5] | -52 | [1],[5] |
Fixed Maturities [Member] | Residential Mortgage Backed Securities [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 1,133 | 933 | ||
Total realized/unrealized gains (losses) included in net income | 39 | [1],[2] | -68 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 42 | [3] | 298 | [3] |
Purchases | 74 | 289 | ||
Settlements | -134 | -125 | ||
Sales | -355 | -173 | ||
Transfers into Level 3 | 0 | [4] | 2 | [4] |
Transfers out of Level 3 | -1 | [4] | -23 | [4] |
Fair value, Ending Balance | 798 | 1,133 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -1 | [1],[5] | -11 | [1],[5] |
Fixed Maturities [Member] | Municipal [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 169 | 382 | ||
Total realized/unrealized gains (losses) included in net income | 0 | [1],[2] | -5 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | -10 | [3] | 34 | [3] |
Purchases | 0 | 174 | ||
Settlements | 0 | 0 | ||
Sales | -110 | -91 | ||
Transfers into Level 3 | 0 | [4] | 0 | [4] |
Transfers out of Level 3 | 0 | [4] | -325 | [4] |
Fair value, Ending Balance | 49 | 169 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | 0 | [1],[5] | -5 | [1],[5] |
Fixed Maturities [Member] | Foreign Government Debt Securities [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 34 | 37 | ||
Total realized/unrealized gains (losses) included in net income | -1 | [1],[2] | 0 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | -3 | [3] | 1 | [3] |
Purchases | 27 | 9 | ||
Settlements | -4 | -4 | ||
Sales | -13 | -11 | ||
Transfers into Level 3 | 0 | [4] | 2 | [4] |
Transfers out of Level 3 | -2 | [4] | 0 | [4] |
Fair value, Ending Balance | 38 | 34 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | 0 | [1],[5] | 0 | [1],[5] |
Fixed Maturities [Member] | Corporate Debt Securities [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 1,340 | 1,497 | ||
Total realized/unrealized gains (losses) included in net income | 6 | [1],[2] | 2 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | -4 | [3] | -38 | [3] |
Purchases | 75 | 169 | ||
Settlements | -112 | -98 | ||
Sales | -333 | -74 | ||
Transfers into Level 3 | 99 | [4] | 538 | [4] |
Transfers out of Level 3 | -281 | [4] | -656 | [4] |
Fair value, Ending Balance | 790 | 1,340 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -7 | [1],[5] | -7 | [1],[5] |
Fixed Maturities [Member] | CMBS [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 532 | 348 | ||
Total realized/unrealized gains (losses) included in net income | -14 | [1],[2] | -41 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 53 | [3] | 89 | [3] |
Purchases | 37 | 18 | ||
Settlements | -89 | -111 | ||
Sales | -152 | -109 | ||
Transfers into Level 3 | 36 | [4] | 422 | [4] |
Transfers out of Level 3 | -43 | [4] | -84 | [4] |
Fair value, Ending Balance | 360 | 532 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -2 | [1],[5] | -17 | [1],[5] |
Fixed Maturities [Member] | Collateralized Debt Obligations [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 723 | 328 | ||
Total realized/unrealized gains (losses) included in net income | 18 | [1],[2] | -19 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 110 | [3] | 134 | [3] |
Purchases | 37 | 0 | ||
Settlements | -113 | -36 | ||
Sales | -341 | -1 | ||
Transfers into Level 3 | 23 | [4] | 317 | [4] |
Transfers out of Level 3 | -29 | [4] | 0 | [4] |
Fair value, Ending Balance | 428 | 723 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | 0 | [1],[5] | -11 | [1],[5] |
Fixed Maturities [Member] | Asset-backed Securities [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 238 | 317 | ||
Total realized/unrealized gains (losses) included in net income | -12 | [1],[2] | -2 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 32 | [3] | 45 | [3] |
Purchases | 25 | 18 | ||
Settlements | -6 | -58 | ||
Sales | -127 | -34 | ||
Transfers into Level 3 | 3 | [4] | 12 | [4] |
Transfers out of Level 3 | -45 | [4] | -60 | [4] |
Fair value, Ending Balance | 108 | 238 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -7 | [1],[5] | -1 | [1],[5] |
Fixed Maturities, FVO [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair value, Beginning Balance | 199 | 484 | ||
Total realized/unrealized gains (losses) included in net income | 61 | [1],[2] | 106 | [1],[2] |
Total realized/unrealized gains (losses) included in OCI | 0 | [3] | 0 | [3] |
Purchases | 14 | 1 | ||
Settlements | -2 | -1 | ||
Sales | -94 | -391 | ||
Transfers into Level 3 | 3 | [4] | 0 | [4] |
Transfers out of Level 3 | -3 | [4] | 0 | [4] |
Fair value, Ending Balance | 178 | 199 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | 44 | [1],[5] | -7 | [1],[5] |
Monthly N.A.V Calulation [Member] | Limited Partnerships and Other Alternative Investments [Member] | Fair Value, Inputs, Level 3 [Member] | Alternative Assets [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Based on Inputs | $0 | $150 | ||
[1] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | |||
[2] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||
[3] | All amounts are before income taxes and amortization of DAC. | |||
[4] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||
[5] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). |
Fair_Value_Measurements_Freest
Fair Value Measurements (Freestanding Derivatives) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Equity Securities [Member] | Available-for-sale Securities [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair value, Beginning Balance | $55 | $56 | ||
Total realized/unrealized gains (losses) included in net income | -10 | [1],[2] | 3 | [1],[2] |
Fair value, Ending Balance | 51 | 55 | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | -9 | [1],[3] | 2 | [1],[3] |
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 6 | [4] | -3 | [4] |
Purchases | 7 | 11 | ||
Settlements | 0 | 0 | ||
Sales | -2 | -12 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | ' | ||
Transfers out of Level 3 | -5 | [5] | 0 | [5] |
Freestanding Derivatives [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 722 | [6] | 661 | [6] |
Total realized/unrealized gains (losses) included in net income | -559 | [1],[2],[6] | -712 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | 20 | [6] | 306 | [6] |
Settlements | -21 | [6] | 405 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | 70 | [5],[6] | 62 | [5],[6] |
Fair Value, Ending Balance | 204 | [6] | 722 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -761 | [1],[3],[6] | -715 | [1],[3],[6] |
Freestanding Derivatives [Member] | Hedging Derivatives [Member] | International [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | -75 | [6] | -35 | [6] |
Total realized/unrealized gains (losses) included in net income | 24 | [1],[2],[6] | -83 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | -25 | [6] | -60 | [6] |
Settlements | -9 | [6] | 95 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | 32 | [5],[6] | 8 | [5],[6] |
Fair Value, Ending Balance | -61 | [6] | -75 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -170 | [1],[3],[6] | -85 | [1],[3],[6] |
Freestanding Derivatives [Member] | US Macro Hedge Program [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 286 | [6] | 357 | [6] |
Total realized/unrealized gains (losses) included in net income | ' | -323 | [1],[2],[6] | |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | ' | 252 | [6] | |
Settlements | ' | 0 | [6] | |
Sales | ' | 0 | [6] | |
Transfers out of Level 3 | ' | 0 | [5],[6] | |
Fair Value, Ending Balance | 139 | [6] | 286 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | ' | -322 | [1],[3],[6] | |
Freestanding Derivatives [Member] | US Macro Hedge Program [Member] | U.S. [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Total realized/unrealized gains (losses) included in net income | -191 | [1],[2],[6] | ' | |
Purchases | 44 | [6] | ' | |
Settlements | 0 | [6] | ' | |
Sales | 0 | [6] | ' | |
Transfers out of Level 3 | 0 | [5],[6] | ' | |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -187 | [1],[3],[6] | ' | |
Freestanding Derivatives [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Hedging Derivatives [Member] | U.S. [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 519 | [6] | 883 | [6] |
Total realized/unrealized gains (losses) included in net income | -372 | [1],[2],[6] | -431 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | 0 | [6] | 56 | [6] |
Settlements | -4 | [6] | -12 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | 3 | [5],[6] | 23 | [5],[6] |
Fair Value, Ending Balance | 146 | [6] | 519 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -390 | [1],[3],[6] | -425 | [1],[3],[6] |
Freestanding Derivatives [Member] | Credit derivative [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 4 | [6] | -489 | [6] |
Total realized/unrealized gains (losses) included in net income | -1 | [1],[2],[6] | 155 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | 0 | [6] | 0 | [6] |
Settlements | -1 | [6] | 338 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | 0 | [5],[6] | 0 | [5],[6] |
Fair Value, Ending Balance | 2 | [6] | 4 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -1 | [1],[3],[6] | 126 | [1],[3],[6] |
Freestanding Derivatives [Member] | Equity derivative [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 45 | [6] | 36 | [6] |
Total realized/unrealized gains (losses) included in net income | -26 | [1],[2],[6] | -32 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | 1 | [6] | 57 | [6] |
Settlements | -7 | [6] | -16 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | -11 | [5],[6] | 0 | [5],[6] |
Fair Value, Ending Balance | 2 | [6] | 45 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | -15 | [1],[3],[6] | -8 | [1],[3],[6] |
Freestanding Derivatives [Member] | Interest rate derivatives [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | -57 | [6] | -91 | [6] |
Total realized/unrealized gains (losses) included in net income | 7 | [1],[2],[6] | 2 | [1],[2],[6] |
Total realized/unrealized gains (losses) included in OCI | 0 | [4],[6] | 0 | [4],[6] |
Purchases | 0 | [6] | 1 | [6] |
Settlements | 0 | [6] | 0 | [6] |
Sales | 0 | [6] | 0 | [6] |
Transfers out of Level 3 | 26 | [5],[6] | 31 | [5],[6] |
Fair Value, Ending Balance | -24 | [6] | -57 | [6] |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | 2 | [1],[3],[6] | -1 | [1],[3],[6] |
Freestanding Derivatives [Member] | Other Derivatives Contracts [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Beginning Balance | 0 | ' | ||
Total realized/unrealized gains (losses) included in net income | 0 | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | ' | ||
Purchases | 0 | ' | ||
Settlements | 0 | ' | ||
Sales | ' | ' | ||
Transfers out of Level 3 | -20 | ' | ||
Fair Value, Ending Balance | 0 | ' | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | 0 | ' | ||
Income Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities Two [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Measurements, Significant Assumptions | 'Constant prepayment rate | 'Constant prepayment rate | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Relationships of Change | 'Decrease [4] | [7],[8] | 'Decrease [4] | |
Income Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities Three [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Measurements, Significant Assumptions | 'Constant default rate | 'Constant default rate | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Relationships of Change | 'Decrease | [7] | 'Decrease | |
Income Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage Backed Securities Four [Member] | ' | ' | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ||
Fair Value Measurements, Significant Assumptions | 'Loss severity | 'Loss severity | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Relationships of Change | 'Decrease | [7] | 'Decrease | |
Other Policyholder Funds and Benefits Payable [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | [4] | 0 | [2],[4] |
Other Policyholder Funds and Benefits Payable [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | [3],[4] | 0 | [2],[3],[4] |
JAPAN [Member] | Other Policyholder Funds and Benefits Payable [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ' | ' | ||
Roll Forward of Financial Instruments (Assets Netted Against Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | ' | $264 | [2],[3],[4] | |
[1] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | |||
[2] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||
[3] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). | |||
[4] | All amounts are before income taxes and amortization of DAC. | |||
[5] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||
[6] | Derivative instruments are reported in this table on a net basis for asset/(liability) positions and reported in the Consolidated Balance Sheet in other investments and other liabilities. | |||
[7] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table above. | |||
[8] | Decrease for above market rate coupons and increase for below market rate coupons. |
Fair_Value_Measurements_Reinsu
Fair Value Measurements (Reinsurance) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reinsurance Recoverable [Member] | Guaranteed Withdrawal Benefits [Member] | ' | ' | ' | |||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | |||
Fair value, Beginning Balance | $3,073 | $1,081 | [1] | $3,073 | ||
Total realized/unrealized gains (losses) included in net income | -2,373 | -1,856 | [1],[2],[3] | ' | ||
Total realized/unrealized gains (losses) included in OCI | 0 | 0 | [1],[4] | ' | ||
Purchases | 0 | 0 | [1] | ' | ||
Settlements | -381 | 310 | [1] | ' | ||
Sales | 0 | 0 | [1] | ' | ||
Transfers into Level 3 | 0 | 0 | [1],[5] | ' | ||
Transfers out of Level 3 | 0 | 0 | [1],[5] | ' | ||
Fair value, Ending Balance | ' | -465 | [1] | 1,081 | [1] | |
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | ' | -1,856 | [1],[2],[6] | -2,373 | ||
Limited Partnerships and Other Alternative Investments [Member] | Guaranteed Withdrawal Benefits [Member] | ' | ' | ' | |||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | |||
Fair value, Beginning Balance | 0 | [1] | 150 | [1] | 0 | [1] |
Total realized/unrealized gains (losses) included in net income | ' | -5 | [2],[3] | -11 | [1],[2],[3] | |
Total realized/unrealized gains (losses) included in OCI | ' | 0 | [4] | 0 | [1],[4] | |
Purchases | ' | 64 | 26 | [1] | ||
Settlements | ' | 0 | 0 | [1] | ||
Sales | ' | -9 | 0 | [1] | ||
Transfers into Level 3 | ' | 0 | [5] | 135 | [1],[5] | |
Transfers out of Level 3 | ' | -146 | [5] | 0 | [1],[5] | |
Fair value, Ending Balance | ' | 54 | 150 | [1] | ||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | ' | -5 | [2],[6] | -11 | [1],[2],[6] | |
Separate Accounts [Member] | ' | ' | ' | |||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | |||
Fair value, Beginning Balance | 1,031 | 583 | 1,031 | |||
Total realized/unrealized gains (losses) included in net income | ' | 23 | [2],[3] | 37 | [2],[3] | |
Total realized/unrealized gains (losses) included in OCI | ' | 0 | [4] | 0 | [4] | |
Purchases | ' | 250 | 252 | |||
Settlements | ' | -2 | -1 | |||
Sales | ' | -88 | -476 | |||
Transfers into Level 3 | ' | 45 | [5] | 443 | [5] | |
Transfers out of Level 3 | ' | -74 | [5] | -703 | [5] | |
Fair value, Ending Balance | ' | 737 | 583 | |||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at end of period | ' | 21 | [2],[6] | 28 | [2],[6] | |
UNITED STATES | Reinsurance Recoverable [Member] | Guaranteed Withdrawal Benefits [Member] | ' | ' | ' | |||
Roll Forward of Financial Instruments (Assets) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | |||
Total realized/unrealized gains (losses) included in OCI | ($231) | ' | ' | |||
[1] | Includes fair value of reinsurance recoverables of approximately $495 and $900 as of December 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. | |||||
[2] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | |||||
[3] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | |||||
[4] | All amounts are before income taxes and amortization of DAC. | |||||
[5] | Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. | |||||
[6] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). |
Fair_Value_Measurements_Funds_
Fair Value Measurements (Funds and Benefits Payable) (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2012 | ||||||||||
Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Other Liabilities [Member] | Consumer Notes [Member] | Consumer Notes [Member] | Equity linked notes [Member] | Equity linked notes [Member] | Short Interest Rate Swaptions [Member] | Reinsurance Recoverable [Member] | Reinsurance Recoverable [Member] | Reinsurance Recoverable [Member] | |||||||||||
Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Other policyholder funds and benefits payable [Member] | Other policyholder funds and benefits payable [Member] | Fair Value, Inputs, Level 3 [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | UNITED STATES | ||||||||||||||||
Income Approach Valuation Technique [Member] | Guaranteed Minimum Withdrawal Benefit [Member] | ||||||||||||||||||||||
International Program Hedging Instruments [Member] | |||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Based on Inputs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($12) | ' | ' | ' | ||||||||||
Roll Forward of Financial Instruments (Liabilities) Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Fair Value of Financial Instruments (Liabilities), Measured at Fair Value on a Recurring Basis, Beginning Balance | -3,127 | [1] | -5,785 | [1] | -3,119 | [1],[2] | -5,776 | [1],[2] | 9 | -2 | -4 | -8 | [1] | -9 | [1] | ' | ' | ' | ' | ||||
Total realized/unrealized gains (losses) included in net income | 2,643 | [1],[3] | 2,921 | [1],[3] | 2,653 | [1],[2],[3] | 2,920 | [1],[2],[3] | -34 | 0 | [1],[3] | 2 | [1],[3] | -10 | [1],[3] | 1 | [1],[3] | ' | ' | ' | ' | ||
Total realized/unrealized gains (losses) included in OCI | 0 | [4] | 0 | [1],[4] | 0 | [2],[4] | 0 | [1],[2],[4] | 0 | 0 | [4] | 0 | [4] | 0 | [4] | 0 | [1],[4] | ' | 0 | 0 | [4],[5] | -231 | |
Settlements | -110 | [6] | -263 | [1] | -110 | [2],[6] | -263 | [1],[2] | 43 | 0 | [6] | 0 | 0 | [6] | 0 | [1] | ' | ' | ' | ' | |||
Fair Value of Financial Instruments (Liabilities), Measured at Fair Value on a Recurring Basis, Ending Balance | -594 | -3,127 | [1] | -576 | [2] | -3,119 | [1],[2] | 0 | -2 | -2 | -18 | -8 | [1] | ' | ' | ' | ' | ||||||
Changes in unrealized gains (losses) included in net income related to financial instruments still held at June 30 | $2,643 | [2],[3] | $2,921 | [1],[2],[3] | $2,653 | [2],[3] | $2,920 | [1],[2],[3] | $0 | $0 | [2],[3] | $2 | [2],[3] | ($10) | [2],[3] | $1 | [1],[2],[3] | ' | ' | ' | ' | ||
Fair Value Measurements, Significant Assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Interest rate volatility | ' | ' | ' | ||||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value Relationships of Change | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Decrease | [7] | ' | ' | ' | |||||||||
[1] | The Company classifies gains and losses on GMWB reinsurance derivatives and Guaranteed Living Benefit embedded derivatives as unrealized gains (losses) for purposes of disclosure in this table because it is impracticable to track on a contract-by-contract basis the realized gains (losses) for these derivatives and embedded derivatives. | ||||||||||||||||||||||
[2] | Includes both market and non-market impacts in deriving realized and unrealized gains (losses). | ||||||||||||||||||||||
[3] | All amounts in these rows are reported in net realized capital gains (losses). The realized/unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on net income for the Company. All amounts are before income taxes and amortization of DAC. | ||||||||||||||||||||||
[4] | All amounts are before income taxes and amortization of DAC. | ||||||||||||||||||||||
[5] | Includes fair value of reinsurance recoverables of approximately $495 and $900 as of December 31, 2013 and 2012, respectively, related to a transaction entered into with an affiliated captive reinsurer. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements for more information. | ||||||||||||||||||||||
[6] | Settlements of other liabilities reflect the removal of liabilities carried at fair value upon the deconsolidation of a variable interest entity. See Note 4 - Investments and Derivative Instruments of Notes to Consolidated Financial Statements for additional information. | ||||||||||||||||||||||
[7] | Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value Options Reported) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | ($110) | ($46) |
Corporate [Member] | Fixed Maturities, FVO [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | -12 | 9 |
CRE CDOs [Member] | Fixed Maturities, FVO [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | 14 | 64 |
CMBS Credit [Member] | Fixed Maturities, FVO [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | 0 | -2 |
Foreign Government Debt Securities [Member] | Fixed Maturities, FVO [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | -112 | -88 |
RMBS [Member] | Fixed Maturities, FVO [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | 0 | 5 |
Credit-linked notes [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Changes in fair value of assets and liabilities accounted for using the fair value option | $0 | ($34) |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements (Fair Value Options Included) (Details) (Fixed Maturities, FVO [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | $791 | $1,010 |
ABS [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 3 | 0 |
CRE CDOs [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 167 | 193 |
CMBS Credit [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 8 | 108 |
Corporate [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 84 | 4 |
Foreign Government [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 494 | 699 |
Municipals [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 1 | 1 |
RMBS [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | 9 | 3 |
U.S. Government [Member] | ' | ' |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Fair value of assets accounted for using fair value option | $25 | $2 |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Instruments Not Carried at Fair Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Assets not carried at fair value [Abstract] | ' | ' | ||
Policy loans, at outstanding balance | $1,416 | $1,951 | ||
Mortgage loans (net of allowances for loan losses of $1) | 3,470 | 4,935 | ||
Level 3 [Member] | ' | ' | ||
Assets not carried at fair value [Abstract] | ' | ' | ||
Policy loans, at outstanding balance | 1,416 | 1,951 | ||
Mortgage loans (net of allowances for loan losses of $1) | 3,470 | 4,935 | ||
Liabilities not carried at fair value [Abstract] | ' | ' | ||
Other policyholder funds and benefits payable | 8,955 | [1] | 9,318 | [1] |
Consumer notes | 82 | [2] | 159 | [2] |
Policy loans [Member] | Level 3 [Member] | ' | ' | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' | ||
Loans Receivable, Fair Value Disclosure | 1,476 | 2,112 | ||
Mortgage Loans [Member] | Level 3 [Member] | ' | ' | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' | ||
Loans Receivable, Fair Value Disclosure | 3,519 | 5,109 | ||
Other policyholder funds and benefits payable [Member] | Level 3 [Member] | ' | ' | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' | ||
Notes Payable, Fair Value Disclosure | 9,153 | [1] | 9,668 | [1] |
Consumer Notes [Member] | Level 3 [Member] | ' | ' | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' | ||
Notes Payable, Fair Value Disclosure | $82 | [2] | $159 | [2] |
[1] | Excludes group accident and health and universal life insurance contracts, including corporate owned life insurance. | |||
[2] | Excludes amounts carried at fair value and included in disclosures above. |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Derivative [Line Items] | ' | ' | ' |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $0 | ' | ' |
Investment redeemed near-term not to exceed | '90 days | ' | ' |
Behavior Risk Margin | 32,000,000 | 77,000,000 | ' |
Reinsurance recoverables | 19,794,000,000 | 2,893,000,000 | ' |
Outperformance (underperformance) of the underlying actively managed fund compared to indices [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Pre-tax realized gains | 11,000,000 | 29,000,000 | -18,000,000 |
Credit standing adjustment assumption net of reinsurance [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Pre-tax realized gains | 492,000,000 | 499,000,000 | -156,000,000 |
Policyholder Behavior Assumptions [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Pre-tax realized gains | 28,000,000 | 76,000,000 | 13,000,000 |
Net Income Impact [Member] | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' |
Reinsurance recoverables | $495,000,000,000 | $900,000,000,000 | ' |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details Textual 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Percentage difference of sale trade price from prior days price | 3.00% | ' |
Percentage difference of purchase trade price from current days price | 3.00% | ' |
Percentage change of monthly analyses Identify price | 3.00% | ' |
Percentage difference of weekly analyses identify price from published bond | 5.00% | ' |
Fair Value Measurements - Financial Instruments Excluding Guaranteed Living Benefits (Textual) [Abstract] | ' | ' |
Cash collateral liability | $120,000,000 | $100,000,000 |
Investment Sales Receivable | 2,400,000,000 | 3,100,000,000 |
Derivatives priced by valuation models | 97.00% | 98.00% |
Redemption notice period | '90 days | ' |
Period on actual observed returns | '10 years | ' |
Period for fund regression | '3 years | ' |
Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Percentage daily analyses to identify prices | 3.00% | ' |
Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Percentage daily analyses to identify prices | 5.00% | ' |
US Treasury Securities [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | Alternative Assets [Member] | Limited Partnerships and Other Alternative Investments [Member] | Monthly N.A.V Calulation [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Assets accounted for at fair value on a recurring basis | $0 | $150,000,000 |
Investments_and_Derivative_Ins2
Investments and Derivative Instruments (Net Investment Income (Loss)) (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] | ' | ' | ' | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | ($1,190) | ($1,226) | $48 | |||
Securities available-for-sale and other | 1,681 | 2,535 | 2,572 | |||
Equity securities, trading | 2 | 1 | 0 | |||
Total net investment income (loss) | 1,683 | 2,536 | 2,572 | |||
Fixed Maturities [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 1,253 | [1] | 1,953 | [1] | 1,927 | [1] |
Equity Securities, AFS [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 8 | 11 | 10 | |||
Mortgage Loans [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 172 | 248 | 206 | |||
Policy Loans [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 82 | 116 | 128 | |||
Limited Partnerships and Other Alternative Investments [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 119 | 85 | 143 | |||
Other Investments [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | 123 | [2] | 199 | [2] | 231 | [2] |
Investment Expenses [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Securities available-for-sale and other | -76 | -77 | -73 | |||
Retirement Plans and Individual Life Businesses [Member] | ' | ' | ' | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ' | ' | ' | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | $1,500 | ' | ' | |||
[1] | Includes net investment income on short-term investments. | |||||
[2] | Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting. |
Investments_and_Derivative_Ins3
Investments and Derivative Instruments (Net Realized Capital Gains (Losses)) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | ($1,190) | ($1,226) | $48 | |||
Gross gains and losses on sales and impairments reported in AOCI | 1,400 | -55 | 75 | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 365 | 729 | ' | |||
Net realized capital gains (losses) | ' | ' | ' | |||
Gross gains on sales [1] | 2,196 | 478 | 400 | |||
Gross losses on sales | -700 | -278 | -200 | |||
Net OTTI losses recognized in earnings | -45 | [1] | -255 | [1] | -125 | [1] |
Valuation allowances on mortgage loans | -1 | 4 | 25 | |||
Japanese fixed annuity contract hedges, net | 6 | -36 | 3 | |||
Periodic net coupon settlements on credit derivatives/Japan | -3 | -8 | 0 | |||
Results of variable annuity hedge program | 28 | 179 | -613 | |||
Total results of variable annuity hedge program | -935 | -966 | 26 | |||
GMIB/GMAB/GMWB reinsurance | 1,107 | 1,233 | -326 | |||
Coinsurance and modified coinsurance reinsurance contracts | -1,405 | -1,901 | 375 | |||
Other, net | 106 | 248 | -255 | |||
Net realized capital gains (losses), before-tax | 326 | -1,481 | -77 | |||
U.S. [Member] | GMWB derivatives, net [Member] | ' | ' | ' | |||
Net realized capital gains (losses) | ' | ' | ' | |||
Results of variable annuity hedge program | 262 | 519 | -397 | |||
U.S. [Member] | Macro Hedge Program [Member] | ' | ' | ' | |||
Net realized capital gains (losses) | ' | ' | ' | |||
Results of variable annuity hedge program | -234 | -340 | -216 | |||
International [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Foreign Currency Transaction Gain (Loss), before Tax | -55 | -66 | 0 | |||
Net realized capital gains (losses) | ' | ' | ' | |||
Results of variable annuity hedge program | -963 | -1,145 | 639 | |||
JAPAN [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Foreign Currency Transaction Gain (Loss), before Tax | 295 | 205 | -119 | |||
Equity Securities [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | 21 | 36 | ' | |||
Retirement Plans and Individual Life Businesses [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 1,500 | ' | ' | |||
FX revaluation - Japan fixed annuity product [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Foreign Currency Transaction Gain (Loss), before Tax | 324 | 245 | -129 | |||
Change in value of derivatives and Japan FVO securities [Member] | ' | ' | ' | |||
Results of variable annuity hedge program [Line Items] | ' | ' | ' | |||
Foreign Currency Transaction Gain (Loss), before Tax | ($318) | ($281) | $132 | |||
[1] | Includes $173 of intent-to-sell impairments relating to the Retirement Plans and Individual Life businesses sold for the year ended December 31, 2012. |
Investments_and_Derivative_Ins4
Investments and Derivative Instruments (Sales of Available-for-Sale Securities) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fixed maturities, AFS [Member] | ' | ' | ' |
Available for-sale-securities, Gross Realized Gain (Loss) | ' | ' | ' |
Sale proceeds | $19,190,000 | $23,555 | $19,861 |
Gross gains | 1,867,000 | 521 | 354 |
Gross losses | -421,000 | -270 | -205 |
Equity Securities, AFS [Member] | ' | ' | ' |
Available for-sale-securities, Gross Realized Gain (Loss) | ' | ' | ' |
Sale proceeds | 81,000 | 133 | 147 |
Gross gains | 254,000 | 15 | 50 |
Gross losses | ($263,000) | ($5) | $0 |
Investments_and_Derivative_Ins5
Investments and Derivative Instruments (Other-than-Temporary Impairment Losses) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other-Than-Temporary Impairment Losses | ' | ' | ' | |||
Balance, beginning of period | ($813) | ($1,319) | ($1,598) | |||
Securities not previously impaired | -14 | [1] | -27 | [1] | -41 | [1] |
Securities previously impaired | -4 | [1] | -15 | [1] | -47 | [1] |
Securities that matured or were sold during the period | 403 | 543 | 358 | |||
Securities due to an increase in expected cash flows | 17 | 5 | 9 | |||
Balance, end of period | ($410) | ($813) | ($1,319) | |||
[1] | These additions are included in the net OTTI losses recognized in earnings in the Consolidated Statements of Operations. |
Investments_and_Derivative_Ins6
Investments and Derivative Instruments (Available-for-Sale Securities) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | $27,550 | [1] | $46,161 | [1] |
Gross Unrealized Gains | 1,562 | [1] | 4,486 | [1] |
Gross Unrealized Losses | -576 | [1] | -823 | [1] |
Fair Value | 28,535 | [1] | 49,804 | [1] |
Non-Credit OTTI | -14 | [1],[2] | -62 | [1],[2] |
Total fixed maturities, AFS | 27,188 | 45,753 | ||
Equity securities, AFS | 362 | 408 | ||
ABS [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 1,172 | 1,807 | ||
Gross Unrealized Gains | 13 | 38 | ||
Gross Unrealized Losses | -56 | -172 | ||
Fair Value | 1,129 | 1,673 | ||
Non-Credit OTTI | -2 | [2] | -4 | [2] |
Collateralized Debt Obligations [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 1,392 | [3] | 2,236 | [3] |
Gross Unrealized Gains | 98 | [3] | 61 | [3] |
Gross Unrealized Losses | -41 | [3] | -117 | [3] |
Fair Value | 1,448 | [3] | 2,160 | [3] |
Non-Credit OTTI | 0 | [2],[3] | -4 | [2],[3] |
CMBS [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 2,275 | 3,757 | ||
Gross Unrealized Gains | 106 | 262 | ||
Gross Unrealized Losses | -34 | -107 | ||
Fair Value | 2,347 | 3,912 | ||
Non-Credit OTTI | -3 | [2] | -7 | [2] |
Corporate [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 15,913 | [3] | 27,774 | [3] |
Gross Unrealized Gains | 1,196 | [3] | 3,426 | [3] |
Gross Unrealized Losses | -192 | [3] | -221 | [3] |
Fair Value | 16,917 | [3] | 30,979 | [3] |
Non-Credit OTTI | -6 | [2],[3] | -19 | [2],[3] |
Foreign Government Debt Securities [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 1,267 | 1,369 | ||
Gross Unrealized Gains | 27 | 120 | ||
Gross Unrealized Losses | -117 | -29 | ||
Fair Value | 1,177 | 1,460 | ||
Non-Credit OTTI | 0 | [2] | 0 | [2] |
Municipal [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 988 | 1,808 | ||
Gross Unrealized Gains | 26 | 204 | ||
Gross Unrealized Losses | -49 | -14 | ||
Fair Value | 965 | 1,998 | ||
Non-Credit OTTI | 0 | [2] | 0 | [2] |
RMBS [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 2,419 | 4,590 | ||
Gross Unrealized Gains | 60 | 196 | ||
Gross Unrealized Losses | -48 | -115 | ||
Fair Value | 2,431 | 4,671 | ||
Non-Credit OTTI | -3 | [2] | -28 | [2] |
U.S. Treasuries [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Cost or Amortized Cost | 1,762 | 2,412 | ||
Gross Unrealized Gains | 1 | 151 | ||
Gross Unrealized Losses | -14 | -12 | ||
Fair Value | 1,749 | 2,551 | ||
Non-Credit OTTI | 0 | [2] | 0 | [2] |
Fixed maturities, AFS [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Gross Unrealized Gains | 1,527 | 4,458 | ||
Gross Unrealized Losses | -551 | -787 | ||
Fair Value | 28,163 | 49,404 | ||
Non-Credit OTTI | -14 | [2] | -62 | [2] |
Equity Securities, AFS [Member] | ' | ' | ||
Available-for-Sale Securities | ' | ' | ||
Gross Unrealized Gains | 35 | 28 | ||
Gross Unrealized Losses | -25 | -36 | ||
Fair Value | 372 | 400 | ||
Non-Credit OTTI | $0 | [2] | $0 | [2] |
[1] | Includes fixed maturities, AFS and equity securities, AFS relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. | |||
[2] | Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2013 and 2012. | |||
[3] | Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). |
Investments_and_Derivative_Ins7
Investments and Derivative Instruments (Fixed Maturities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Amortized Cost | ' | ' |
One year or less, amortized cost | $1,615 | ' |
Over one year through five years, amortized cost | 5,328 | ' |
Over five years through ten years, amortized cost | 4,319 | ' |
Over ten years, amortized cost | 8,668 | ' |
Subtotal, amortized cost | 19,930 | ' |
Mortgage-backed and asset-backed securities, amortized cost | 7,258 | ' |
Total fixed maturities, AFS, amortized cost | 27,188 | ' |
Available-for-sale Securities, Fair Value | ' | ' |
One year or less, fair value | 1,639 | ' |
Over one year through five years, fair value | 5,535 | ' |
Over five years through ten years, fair value | 4,481 | ' |
Over ten years, fair value | 9,153 | ' |
Subtotal, fair value | 20,808 | ' |
Mortgage-backed and asset-backed securities, fair value | 7,355 | ' |
Total fixed maturities, AFS, fair value | $28,163 | $49,404 |
Investments_and_Derivative_Ins8
Investments and Derivative Instruments (Security Unrealized Loss Aging) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | $6,743 | $1,986 | ||
Less Than 12 Months, Fair Value | 6,532 | 1,892 | ||
12 Months or More, Amortized Cost | 3,806 | 5,588 | ||
12 Months or More, Fair Value | 3,440 | 4,851 | ||
12 Months or More, Unrealized Losses | -365 | -729 | ||
Amortized Cost | 10,549 | 7,574 | ||
Fair Value | 9,972 | 6,743 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -211 | -94 | ||
Unrealized Losses | -576 | -823 | ||
ABS [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 288 | 77 | ||
Less Than 12 Months, Fair Value | 286 | 76 | ||
12 Months or More, Amortized Cost | 418 | 787 | ||
12 Months or More, Fair Value | 364 | 616 | ||
12 Months or More, Unrealized Losses | -54 | -171 | ||
Amortized Cost | 706 | 864 | ||
Fair Value | 650 | 692 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -2 | -1 | ||
Unrealized Losses | -56 | -172 | ||
Collateralized Debt Obligations [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 64 | [1] | 5 | |
Less Than 12 Months, Fair Value | 63 | 5 | ||
12 Months or More, Amortized Cost | 1,185 | [1] | 1,640 | |
12 Months or More, Fair Value | 1,144 | [1] | 1,515 | |
12 Months or More, Unrealized Losses | -40 | [1] | -117 | |
Amortized Cost | 1,249 | [1] | 1,645 | |
Fair Value | 1,207 | [1] | 1,520 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -1 | 0 | ||
Unrealized Losses | -41 | [1] | -117 | |
CMBS [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 437 | 192 | ||
Less Than 12 Months, Fair Value | 423 | 179 | ||
12 Months or More, Amortized Cost | 392 | 795 | ||
12 Months or More, Fair Value | 372 | 701 | ||
12 Months or More, Unrealized Losses | -20 | -94 | ||
Amortized Cost | 829 | 987 | ||
Fair Value | 795 | 880 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -14 | -13 | ||
Unrealized Losses | -34 | -107 | ||
Corporate [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 2,449 | 614 | [1] | |
Less Than 12 Months, Fair Value | 2,360 | [1] | 578 | [1] |
12 Months or More, Amortized Cost | 799 | 1,339 | [1] | |
12 Months or More, Fair Value | 696 | 1,154 | [1] | |
12 Months or More, Unrealized Losses | -103 | -185 | [1] | |
Amortized Cost | 3,248 | 1,953 | [1] | |
Fair Value | 3,056 | 1,732 | [1] | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -89 | -36 | [1] | |
Unrealized Losses | -192 | -221 | [1] | |
Foreign Government Debt Securities [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 542 | 318 | ||
Less Than 12 Months, Fair Value | 501 | 290 | ||
12 Months or More, Amortized Cost | 303 | 7 | ||
12 Months or More, Fair Value | 227 | 6 | ||
12 Months or More, Unrealized Losses | -76 | -1 | ||
Amortized Cost | 845 | 325 | ||
Fair Value | 728 | 296 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -41 | -28 | ||
Unrealized Losses | -117 | -29 | ||
Municipal [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 508 | 65 | ||
Less Than 12 Months, Fair Value | 475 | 62 | ||
12 Months or More, Amortized Cost | 99 | 98 | ||
12 Months or More, Fair Value | 83 | 87 | ||
12 Months or More, Unrealized Losses | -16 | -11 | ||
Amortized Cost | 607 | 163 | ||
Fair Value | 558 | 149 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -33 | -3 | ||
Unrealized Losses | -49 | -14 | ||
RMBS [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 922 | 322 | ||
Less Than 12 Months, Fair Value | 909 | 321 | ||
12 Months or More, Amortized Cost | 475 | 750 | ||
12 Months or More, Fair Value | 440 | 636 | ||
12 Months or More, Unrealized Losses | -35 | -114 | ||
Amortized Cost | 1,397 | 1,072 | ||
Fair Value | 1,349 | 957 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -13 | -1 | ||
Unrealized Losses | -48 | -115 | ||
U.S. Treasuries [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 1,456 | 384 | ||
Less Than 12 Months, Fair Value | 1,442 | 372 | ||
12 Months or More, Amortized Cost | 0 | 0 | ||
12 Months or More, Fair Value | 0 | 0 | ||
12 Months or More, Unrealized Losses | 0 | ' | ||
Amortized Cost | 1,456 | 384 | ||
Fair Value | 1,442 | 372 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -14 | -12 | ||
Unrealized Losses | -14 | -12 | ||
Fixed maturities, AFS [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 6,666 | 1,977 | ||
Less Than 12 Months, Fair Value | 6,459 | 1,883 | ||
12 Months or More, Amortized Cost | 3,671 | 5,416 | ||
12 Months or More, Fair Value | 3,326 | 4,715 | ||
12 Months or More, Unrealized Losses | -344 | -693 | ||
Amortized Cost | 10,337 | 7,393 | ||
Fair Value | 9,785 | 6,598 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -207 | -94 | ||
Unrealized Losses | -551 | -787 | ||
Equity Securities [Member] | ' | ' | ||
Security Unrealized Loss Aging | ' | ' | ||
Less Than 12 Months, Amortized Cost | 77 | 9 | ||
Less Than 12 Months, Fair Value | 73 | 9 | ||
12 Months or More, Amortized Cost | 135 | 172 | ||
12 Months or More, Fair Value | 114 | 136 | ||
12 Months or More, Unrealized Losses | -21 | -36 | ||
Amortized Cost | 212 | 181 | ||
Fair Value | 187 | 145 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | -4 | 0 | ||
Unrealized Losses | ($25) | ($36) | ||
[1] | Unrealized losses exclude the fair value of bifurcated embedded derivative features of certain securities. Subsequent changes in value will be recorded in net realized capital gains (losses). |
Investments_and_Derivative_Ins9
Investments and Derivative Instruments (Mortgage Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ' | ' | ||
Fair value of securities on deposit | $13 | $14 | ' | ' | ||
Number of delinquent loans | 0 | 1 | ' | ' | ||
Mortgage Loans by Major Types | ' | ' | ' | ' | ||
Valuation Allowance | -12 | -14 | ' | ' | ||
Carrying Value | 3,470 | 4,935 | ' | ' | ||
Commercial [Member] | ' | ' | ' | ' | ||
Mortgage Loans by Major Types | ' | ' | ' | ' | ||
Amortized Cost | 3,482 | [1],[2] | 4,949 | [1],[2] | ' | ' |
Valuation Allowance | -12 | [2] | -14 | [2] | -23 | -62 |
Carrying Value | $3,470 | [2] | $4,935 | [2] | ' | ' |
[1] | Amortized cost represents carrying value prior to valuation allowances, if any. | |||||
[2] | ludes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. |
Recovered_Sheet1
Investments and Derivative Instruments (Valuation Allowance Mortgage Loans) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Movement in Valuation allowance and reserves | ' | ' | ' | ||
Balance, end of period | ($12) | ($14) | ' | ||
Commercial [Member] | ' | ' | ' | ||
Movement in Valuation allowance and reserves | ' | ' | ' | ||
Balance, beginning of period | -14 | [1] | -23 | -62 | |
(Additions)/Reversals | -2 | 4 | 25 | ||
Deductions | 4 | 5 | 14 | ||
Balance, end of period | ($12) | [1] | ($14) | [1] | ($23) |
[1] | ludes commercial mortgage loans relating to the sales of the Retirement Plans and Individual Life businesses; see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further discussion of these transactions. |
Recovered_Sheet2
Investments and Derivative Instruments (Carry Value of Commercial Mortgage Loans) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commercial Mortgage Loans Credit Quality | ' | ' |
Avg Debt-Service Coverage Ratio | 2.23 | ' |
Commercial [Member] | ' | ' |
Commercial Mortgage Loans Credit Quality | ' | ' |
Carrying Value | $3,470 | $4,935 |
Avg Debt-Service Coverage Ratio | 2.23 | 2.34 |
Greater than 80% [Member] | Commercial [Member] | ' | ' |
Commercial Mortgage Loans Credit Quality | ' | ' |
Carrying Value | 35 | 137 |
Avg Debt-Service Coverage Ratio | 1.15 | 0.89 |
65% - 80% [Member] | Commercial [Member] | ' | ' |
Commercial Mortgage Loans Credit Quality | ' | ' |
Carrying Value | 777 | 1,717 |
Avg Debt-Service Coverage Ratio | 1.94 | 2.27 |
Less than 65% [Member] | Commercial [Member] | ' | ' |
Commercial Mortgage Loans Credit Quality | ' | ' |
Carrying Value | $2,658 | $3,081 |
Avg Debt-Service Coverage Ratio | 2.34 | 2.44 |
Recovered_Sheet3
Investments and Derivative Instruments (Mortgage Loans by Region) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | $3,470 | $4,935 | ||
Percent of Total | 100.00% | 100.00% | ||
East North Central [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 79 | 97 | ||
Percent of Total | 2.30% | 2.00% | ||
Middle Atlantic [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 255 | 370 | ||
Percent of Total | 7.30% | 7.50% | ||
Mountain [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 40 | 62 | ||
Percent of Total | 1.20% | 1.30% | ||
New England [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 163 | 231 | ||
Percent of Total | 4.70% | 4.70% | ||
Pacific [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 1,019 | 1,504 | ||
Percent of Total | 29.40% | 30.50% | ||
South Atlantic [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 548 | 1,012 | ||
Percent of Total | 15.80% | 20.50% | ||
West North Central [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 17 | 16 | ||
Percent of Total | 0.50% | 0.30% | ||
West South Central [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | 144 | 234 | ||
Percent of Total | 4.10% | 4.70% | ||
Other [Member] | ' | ' | ||
Schedule of Available-for-sale Securities Mortgage Loans [Line Items] | ' | ' | ||
Mortgage loans (net of allowances for loan losses of $1) | $1,205 | [1] | $1,409 | [1] |
Percent of Total | 34.70% | [1] | 28.50% | [1] |
[1] | Primarily represents loans collateralized by multiple properties in various regions. |
Recovered_Sheet4
Investments and Derivative Instruments (Mortgage Loans by Property Type) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | $3,470 | $4,935 |
Percent of Total | 100.00% | 100.00% |
Agricultural [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 93 | 109 |
Percent of Total | 2.70% | 2.20% |
Industrial [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 1,182 | 1,519 |
Percent of Total | 34.10% | 30.80% |
Lodging [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 27 | 81 |
Percent of Total | 0.80% | 1.60% |
Multifamily [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 576 | 869 |
Percent of Total | 16.60% | 17.60% |
Office [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 723 | 1,120 |
Percent of Total | 20.80% | 22.70% |
Retail [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | 745 | 1,047 |
Percent of Total | 21.50% | 21.20% |
Other [Member] | ' | ' |
Mortgage Loans by Property Type | ' | ' |
Mortgage loans (net of allowances for loan losses of $1) | $124 | $190 |
Percent of Total | 3.50% | 3.90% |
Recovered_Sheet5
Investments and Derivative Instruments (Maximum Exposure to VIEs) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Variable Interest Entities Primary Beneficiary | ' | ' | ||
Total Liabilities | $35 | [1] | $111 | [1] |
Variable Interest Entity Assets Included in Limited Partnerships and Other Alternative Investments | 4 | 6 | ||
Consolidated VIEs [Member] | ' | ' | ||
Variable Interest Entities Primary Beneficiary | ' | ' | ||
Total Assets | 150 | 227 | ||
Maximum Exposure to Loss | 121 | [2] | 120 | [2] |
Collateralized Debt Obligations [Member] | Consolidated VIEs [Member] | ' | ' | ||
Variable Interest Entities Primary Beneficiary | ' | ' | ||
Total Assets | 12 | [3] | 89 | [3] |
Total Liabilities | 13 | [1],[3] | 88 | [1],[3] |
Maximum Exposure to Loss | 0 | [2],[3] | 7 | [2],[3] |
Investment Fund [Member] | Consolidated VIEs [Member] | ' | ' | ||
Variable Interest Entities Primary Beneficiary | ' | ' | ||
Total Assets | 134 | [4] | 132 | [4] |
Total Liabilities | 20 | [1],[4] | 20 | [1],[4] |
Maximum Exposure to Loss | 119 | [2],[4] | 110 | [2],[4] |
Limited partnerships [Member] | Consolidated VIEs [Member] | ' | ' | ||
Variable Interest Entities Primary Beneficiary | ' | ' | ||
Total Liabilities | 2 | [1] | 3 | [1] |
Maximum Exposure to Loss | $2 | [2] | $3 | [2] |
[1] | Included in other liabilities in the Company’s Consolidated Balance Sheets. | |||
[2] | The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment. | |||
[3] | Total assets included in fixed maturities, AFS in the Company’s Consolidated Balance Sheets. | |||
[4] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjhjYzdkNmIxNGY0MTQ5ZjU5NDY5NjJkMzY4ZDFiOWMyfFRleHRTZWxlY3Rpb246NjhBNUIyNTJGMjFDRTk2M0Q5MjI3Nzc1M0ZBNTRBOTIM} |
Recovered_Sheet6
Investments and Derivative Instruments (US Hedging Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
GMWB reinsurance contracts | ' | ' |
Notional Amount | $4,500 | $5,100 |
UNITED STATES | GMWB Hedging Instruments [Member] | Customized Swaps [Member] | ' | ' |
GMWB reinsurance contracts | ' | ' |
Notional Amount | 7,839 | 7,787 |
Fair Value | 74 | 238 |
UNITED STATES | GMWB Hedging Instruments [Member] | Equity Swaps, Options and Futures [Member] | ' | ' |
GMWB reinsurance contracts | ' | ' |
Notional Amount | 4,237 | 5,130 |
Fair Value | 44 | 267 |
UNITED STATES | GMWB Hedging Instruments [Member] | Interest Rate Swaps and Futures [Member] | ' | ' |
GMWB reinsurance contracts | ' | ' |
Notional Amount | 6,615 | 5,705 |
Fair Value | -77 | 67 |
UNITED STATES | Macro Hedge Program [Member] | Stock Option [Member] | ' | ' |
GMWB reinsurance contracts | ' | ' |
Notional Amount | 9,934 | 7,442 |
Fair Value | $139 | $286 |
Recovered_Sheet7
Investments and Derivative Instruments (International Hedging Instruments) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Macro hedge program | ' | ' | ||
Notional Amount | $4,500 | $5,100 | ||
International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 57,025 | 48,448 | ||
Fair Value | -27 | -105 | ||
Other Credit Derivatives [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 350 | 350 | ||
Fair Value | 5 | 28 | ||
Foreign Exchange Forward [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 8,778 | [1] | 9,327 | [1] |
Fair Value | 24 | [1] | -87 | [1] |
Currency options [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 8,408 | 9,710 | ||
Fair Value | -58 | -49 | ||
Equity futures [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 999 | 1,206 | ||
Fair Value | 0 | 0 | ||
Equity options [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 1,022 | 2,621 | ||
Fair Value | -63 | -105 | ||
Equity swaps [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 3,830 | 2,683 | ||
Fair Value | -95 | -12 | ||
Customized Swaps [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 0 | 899 | ||
Fair Value | 0 | -11 | ||
Interest rate futures [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 566 | 634 | ||
Fair Value | 0 | 0 | ||
Interest Rate Swaps and Swaptions [Member] | International Program Hedging Instruments [Member] | ' | ' | ||
Macro hedge program | ' | ' | ||
Notional Amount | 33,072 | 21,018 | ||
Fair Value | $160 | $131 | ||
[1] | As of December 31, 2013 and 2012 net notional amounts are $(1.6) billion and $0.1 billion, respectively, which include $3.6 billion and $4.7 billion, respectively, related to long positions and $5.2 billion and $4.6 billion, respectively, related to short positions. |
Recovered_Sheet8
Investments and Derivative Instruments (Derivative Balance Sheet Classification) (Details) (USD $) | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivative [Line Items] | ' | ' | ' | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | $110 | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 4,500 | 5,100 | ||
Cash Flow Hedging Interest Rate Swaps [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 3,215 | 3,863 | ||
Net Derivatives, Fair Value | ' | 16 | 167 | ||
Asset Derivatives, Fair Value | ' | 49 | 167 | ||
Liability Derivatives, Fair Value | ' | -33 | 0 | ||
Cash flow hedges foreign currency swaps [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 143 | 163 | ||
Net Derivatives, Fair Value | ' | -5 | -17 | ||
Asset Derivatives, Fair Value | ' | 2 | 3 | ||
Liability Derivatives, Fair Value | ' | -7 | -20 | ||
Fair Value Hedging Interest Rate Swaps [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 1,261 | 753 | ||
Net Derivatives, Fair Value | ' | -24 | -55 | ||
Asset Derivatives, Fair Value | ' | 2 | 0 | ||
Liability Derivatives, Fair Value | ' | -26 | -55 | ||
Fair value hedges - Foreign currency swaps [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 0 | 40 | ||
Net Derivatives, Fair Value | ' | 0 | 16 | ||
Asset Derivatives, Fair Value | ' | 0 | 16 | ||
Liability Derivatives, Fair Value | ' | 0 | 0 | ||
Interest Rate Swaps Caps Floors and Futures [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 4,633 | 13,432 | ||
Net Derivatives, Fair Value | ' | -368 | -363 | ||
Asset Derivatives, Fair Value | ' | 123 | 436 | ||
Liability Derivatives, Fair Value | ' | -491 | -799 | ||
Foreign Currency Swaps and Forwards Non-qualifying as Hedges [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 118 | 182 | ||
Net Derivatives, Fair Value | ' | -4 | -9 | ||
Asset Derivatives, Fair Value | ' | 6 | 5 | ||
Liability Derivatives, Fair Value | ' | -10 | -14 | ||
Credit Derivatives that Purchase Credit Protection [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 243 | 1,539 | ||
Net Derivatives, Fair Value | ' | -4 | -5 | ||
Asset Derivatives, Fair Value | ' | 0 | 3 | ||
Liability Derivatives, Fair Value | ' | -4 | -8 | ||
Credit Derivatives that Assume Credit Risk [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 1,507 | [1] | 1,981 | [1] |
Net Derivatives, Fair Value | ' | 27 | [1] | -8 | [1] |
Asset Derivatives, Fair Value | ' | 28 | [1] | 17 | [1] |
Liability Derivatives, Fair Value | ' | -1 | [1] | -25 | [1] |
Credit Derivatives in Offsetting Positions [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 3,501 | 5,341 | ||
Net Derivatives, Fair Value | ' | -3 | -22 | ||
Asset Derivatives, Fair Value | ' | 35 | 56 | ||
Liability Derivatives, Fair Value | ' | -38 | -78 | ||
Equity index swaps options [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 131 | 791 | ||
Net Derivatives, Fair Value | ' | -2 | 35 | ||
Asset Derivatives, Fair Value | ' | 18 | 45 | ||
Liability Derivatives, Fair Value | ' | -20 | -10 | ||
International program product derivatives [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 0 | [2] | 1,876 | [2] |
Net Derivatives, Fair Value | ' | 0 | [2] | -42 | [2] |
Asset Derivatives, Fair Value | ' | 0 | [2] | 0 | [2] |
Liability Derivatives, Fair Value | ' | 0 | [2] | -42 | [2] |
International program hedging instruments [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 57,025 | 48,448 | ||
Net Derivatives, Fair Value | ' | -27 | -105 | ||
Asset Derivatives, Fair Value | ' | 649 | 657 | ||
Liability Derivatives, Fair Value | ' | -676 | -762 | ||
GMAB, GMWB, and GMIB Reinsurance Contracts [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 11,999 | 18,287 | ||
Net Derivatives, Fair Value | ' | -540 | -1,827 | ||
Asset Derivatives, Fair Value | ' | 0 | 0 | ||
Liability Derivatives, Fair Value | ' | -540 | -1,827 | ||
Fixed maturities, AFS [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 196 | 416 | ||
Net Derivatives, Fair Value | ' | -1 | -20 | ||
Asset Derivatives, Fair Value | ' | 0 | 0 | ||
Liability Derivatives, Fair Value | ' | -1 | -20 | ||
Other Investments [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 40,564 | 37,809 | ||
Net Derivatives, Fair Value | ' | 272 | 581 | ||
Asset Derivatives, Fair Value | ' | 721 | 1,049 | ||
Liability Derivatives, Fair Value | ' | -449 | -468 | ||
Other liabilities [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 62,590 | 67,765 | ||
Net Derivatives, Fair Value | ' | -825 | 38 | ||
Asset Derivatives, Fair Value | ' | 789 | 1,683 | ||
Liability Derivatives, Fair Value | ' | -1,614 | -1,645 | ||
Consumer Notes [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 9 | 26 | ||
Net Derivatives, Fair Value | ' | -2 | -2 | ||
Asset Derivatives, Fair Value | ' | 0 | 0 | ||
Liability Derivatives, Fair Value | ' | -2 | -2 | ||
Reinsurance Recoverables [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 33,931 | 47,430 | ||
Net Derivatives, Fair Value | ' | -398 | 1,081 | ||
Asset Derivatives, Fair Value | ' | 413 | 1,757 | ||
Liability Derivatives, Fair Value | ' | -811 | -676 | ||
Other policyholder funds and benefits payable [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 33,561 | 52,408 | ||
Net Derivatives, Fair Value | ' | -594 | -3,126 | ||
Asset Derivatives, Fair Value | ' | 0 | 0 | ||
Liability Derivatives, Fair Value | ' | -594 | -3,126 | ||
JAPAN [Member] | 3 Win Related Foreign Currency Swaps [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 1,571 | 1,816 | ||
Net Derivatives, Fair Value | ' | -354 | -127 | ||
Asset Derivatives, Fair Value | ' | 0 | 0 | ||
Liability Derivatives, Fair Value | ' | -354 | -127 | ||
JAPAN [Member] | Fixed annuity hedging instruments [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 1,436 | 1,652 | ||
Net Derivatives, Fair Value | ' | -6 | 224 | ||
Asset Derivatives, Fair Value | ' | 88 | 228 | ||
Liability Derivatives, Fair Value | ' | -94 | -4 | ||
UNITED STATES | GMWB hedging instruments [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 18,691 | 18,622 | ||
Net Derivatives, Fair Value | ' | 41 | 572 | ||
Asset Derivatives, Fair Value | ' | 333 | 743 | ||
Liability Derivatives, Fair Value | ' | -292 | -171 | ||
UNITED STATES | Macro Hedge Program [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 9,934 | 7,442 | ||
Net Derivatives, Fair Value | ' | 139 | 286 | ||
Asset Derivatives, Fair Value | ' | 178 | 356 | ||
Liability Derivatives, Fair Value | ' | -39 | -70 | ||
UNITED STATES | GMWB product derivatives [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 21,512 | [2] | 28,868 | [2] |
Net Derivatives, Fair Value | ' | -36 | [2] | -1,249 | [2] |
Asset Derivatives, Fair Value | ' | 0 | [2] | 0 | [2] |
Liability Derivatives, Fair Value | ' | -36 | [2] | -1,249 | [2] |
UNITED STATES | GMWB Reinsurance [Member] | ' | ' | ' | ||
Derivative Classification by Hedge Destination and Derivative Type | ' | ' | ' | ||
Notional Amount | ' | 4,508 | 5,773 | ||
Net Derivatives, Fair Value | ' | 29 | 191 | ||
Asset Derivatives, Fair Value | ' | 29 | 191 | ||
Liability Derivatives, Fair Value | ' | $0 | $0 | ||
[1] | The derivative instruments related to this strategy are held for other investment purposes. | ||||
[2] | These derivatives are embedded within liabilities and are not held for risk management purposes. |
Recovered_Sheet9
Investments and Derivative Instruments (Cash Flow Hedges) (Details) (Cash Flow Hedging [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $131 | $178 | $82 |
Interest Rate Swap [Member] | ' | ' | ' |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | -158 | 26 | 245 |
Net Realized Capital Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | -2 | 0 | -2 |
Interest Rate Swap [Member] | Net realized capital gains (losses) [Member] | ' | ' | ' |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 70 | 85 | 6 |
Interest Rate Swap [Member] | Net Investment Income [Member] | ' | ' | ' |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 57 | 97 | 77 |
Foreign Currency Swap [Member] | ' | ' | ' |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | 12 | -18 | -5 |
Net Realized Capital Gains (Losses) Recognized in Income on Derivative (Ineffective Portion) | 0 | 0 | 0 |
Foreign Currency Swap [Member] | Net realized capital gains (losses) [Member] | ' | ' | ' |
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $4 | ($4) | ($1) |
Recovered_Sheet10
Investments and Derivative Instruments (Fair Value Hedges) (Details) (Fair value hedges [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Interest Rate Swap [Member] | Net realized capital gains (losses) [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Gain or (Loss) Recognized in Income, Derivative | $27 | [1] | ($3) | [1] | ($58) | [1] |
Gain or (Loss) Recognized in Income, Hedged Item | -24 | [1] | -3 | [1] | 54 | [1] |
Foreign Currency Swap [Member] | Net realized capital gains (losses) [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Gain or (Loss) Recognized in Income, Derivative | 1 | [1] | -7 | [1] | -1 | [1] |
Gain or (Loss) Recognized in Income, Hedged Item | -1 | [1] | 7 | [1] | 1 | [1] |
Foreign Currency Swap [Member] | Benefits, losses and loss adjustment [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Gain or (Loss) Recognized in Income, Derivative | -2 | [1] | -6 | [1] | -22 | [1] |
Gain or (Loss) Recognized in Income, Hedged Item | $2 | [1] | $6 | [1] | $22 | [1] |
[1] | he amounts presented do not include the periodic net coupon settlements of the derivative or the coupon income (expense) related to the hedged item. The net of the amounts presented represents the ineffective portion of the hedge. |
Recovered_Sheet11
Investments and Derivative Instruments (Non-qualifying Strategies) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Interest rate swaps, caps, floors and forwards [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | ($5) | $26 | $20 | |||
Foreign currency swaps and forwards [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | 4 | 10 | 1 | |||
3 Win Related Foreign Currency Swaps [Member] | JAPAN [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -268 | [1] | -300 | [1] | 31 | [1] |
Fixed annuity hedging instruments [Member] | JAPAN [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -207 | [2] | -178 | [2] | 109 | [2] |
Credit Derivatives that Purchase Credit Protection [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -20 | -19 | -8 | |||
Credit Derivatives that Assume Credit Risk [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | 46 | 204 | -141 | |||
Equity index swaps and options [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -22 | -31 | -67 | |||
GMWB product derivatives [Member] | U.S. [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | 1,306 | 1,430 | -780 | |||
GMWB Reinsurance [Member] | U.S. [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -192 | -280 | 131 | |||
GMWB hedging instruments [Member] | U.S. [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -852 | -631 | 252 | |||
Macro Hedge Program [Member] | U.S. [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -234 | -340 | -216 | |||
International program hedging instruments [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | -963 | -1,145 | 639 | |||
GMAB, GMWB, and GMIB Reinsurance Contracts [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | 1,107 | 1,233 | -326 | |||
Coinsurance and Modified Coinsurance Reinsurance Contracts [Member] | ' | ' | ' | |||
Derivative Instruments Gain (Loss) [Line Items] | ' | ' | ' | |||
Pre-tax realized gains | ($1,405) | ($1,901) | $375 | |||
[1] | he associated liability is adjusted for changes in spot rates through realized capital gains and was $250, $189 and $(100) for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
[2] | he associated liability is adjusted for changes in spot rates through realized capital gains and losses and was $324, $245 and $(129) for the years ended December 31, 2013, 2012, and 2011, respectively. |
Recovered_Sheet12
Investments and Derivative Instruments (Credit Risk through Credit Derivatives) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | $4,500 | $5,100 | ||
Corporate Credit/Foreign Gov. [Member] | Single Name Credit Default Swaps [Member] | Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 735 | [1] | 1,787 | [1] |
Fair Value | 6 | 8 | ||
Weighted Average Years to Maturity | '2 years | '3 years | ||
Underlying Referenced Credit Obligation Type | 'Corporate Credit/ Foreign Gov. | [2] | 'Corporate Credit/ Foreign Gov. | [2] |
Average Credit Rating | 'A | [2] | 'A | [2] |
Offsetting Notional Amount | 592 | [3] | 878 | [3] |
Offsetting Fair Value | -4 | [3] | -19 | [3] |
Corporate Credit [Member] | Single Name Credit Default Swaps [Member] | Below Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 24 | [1] | 114 | [1] |
Fair Value | 0 | -1 | ||
Weighted Average Years to Maturity | '1 year | '1 year | ||
Underlying Referenced Credit Obligation Type | 'Corporate Credit | [2] | 'Corporate Credit | [2] |
Average Credit Rating | 'CCC | [2] | 'B+ | [2] |
Offsetting Notional Amount | 25 | [3] | 114 | [3] |
Offsetting Fair Value | 0 | [3] | -3 | [3] |
Corporate Credit [Member] | Basket Credit Default Swaps [Member] | Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 1,912 | [1],[4] | 2,074 | [1],[4] |
Fair Value | 25 | [4] | 11 | [4] |
Weighted Average Years to Maturity | '3 years | [4] | '2 years | [4] |
Underlying Referenced Credit Obligation Type | 'Corporate Credit | [2],[4] | 'Corporate Credit | [2],[4] |
Average Credit Rating | 'BBB+ | [2],[4] | 'BBB+ | [2],[4] |
Offsetting Notional Amount | 784 | [3],[4] | 1,326 | [3],[4] |
Offsetting Fair Value | -10 | [3],[4] | -6 | [3],[4] |
Corporate Credit [Member] | Basket Credit Default Swaps [Member] | Below Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | ' | 115 | [1],[4] | |
Fair Value | ' | -27 | [4] | |
Weighted Average Years to Maturity | ' | '4 years | [4] | |
Underlying Referenced Credit Obligation Type | ' | 'CMBS Credit | [2],[4] | |
Average Credit Rating | ' | 'B+ | [2],[4] | |
Offsetting Notional Amount | ' | 115 | [3],[4] | |
Offsetting Fair Value | ' | 27 | [3],[4] | |
Corporate Credit [Member] | Embedded Credit Derivatives [Member] | Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 150 | [1] | 325 | [1] |
Fair Value | 145 | 296 | ||
Weighted Average Years to Maturity | '3 years | '4 years | ||
Underlying Referenced Credit Obligation Type | 'Corporate Credit | [2] | 'Corporate Credit | [2] |
Average Credit Rating | 'BBB+ | [2] | 'BBB- | [2] |
Offsetting Notional Amount | 0 | [3] | 0 | [3] |
Offsetting Fair Value | 0 | [3] | 0 | [3] |
CMBS Credit [Member] | Basket Credit Default Swaps [Member] | Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 235 | [1],[4] | 237 | [1],[4] |
Fair Value | -5 | [4] | -12 | [4] |
Weighted Average Years to Maturity | '3 years | [4] | '4 years | [4] |
Underlying Referenced Credit Obligation Type | 'CMBS Credit | [2],[4] | 'CMBS Credit | [2],[4] |
Average Credit Rating | 'A | [2],[4] | 'A | [2],[4] |
Offsetting Notional Amount | 235 | [3],[4] | 238 | [3],[4] |
Offsetting Fair Value | 5 | [3],[4] | 12 | [3],[4] |
CMBS Credit [Member] | Basket Credit Default Swaps [Member] | Below Investment Grade Risk Exposure [Member] | Credit [Member] | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Amount | 115 | [1],[4] | ' | |
Fair Value | -18 | [4] | ' | |
Weighted Average Years to Maturity | '3 years | [4] | ' | |
Underlying Referenced Credit Obligation Type | 'CMBS Credit | [2],[4] | ' | |
Average Credit Rating | 'B- | [2],[4] | ' | |
Offsetting Notional Amount | 115 | [3],[4] | ' | |
Offsetting Fair Value | $18 | [3],[4] | ' | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjhjYzdkNmIxNGY0MTQ5ZjU5NDY5NjJkMzY4ZDFiOWMyfFRleHRTZWxlY3Rpb246NjRDOUIzNDRBQUY2NDIyOUQyQ0E3Nzc1M0Y0N0YzMTgM} | |||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjhjYzdkNmIxNGY0MTQ5ZjU5NDY5NjJkMzY4ZDFiOWMyfFRleHRTZWxlY3Rpb246Nzg2QzIwODI3Njk2NEUzNzAxRjE3Nzc1M0Y0NzgwRUUM} | |||
[3] | p | |||
[4] | ncludes $2.3 billion and $2.4 billion as of December 31, 2013 and 2012, respectively, of standard market indices of diversified portfolios of corporate issuers referenced through credit default swaps. These swaps are subsequently valued based upon the observable standard market index.[5]Excludes investments that contain an embedded credit derivative for which the Company has elected the fair value option. For further discussion, see the Fair Value Option section in Note 3 - Fair Value Measurements. |
Recovered_Sheet13
Investments and Derivative Instruments (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Security | loans | Security | loans | ||||||||||||
loans | loans | ||||||||||||||
Collateral Obtained off of Fair Value of Securities Transferred, Percentage | 95.00% | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ||||
Percentage of largest exposure to invested assets | 10.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ||||
Exposures in commercial real estate sector percentage of invested assets | 9.00% | ' | ' | ' | 10.00% | ' | ' | ' | 9.00% | 10.00% | ' | ||||
Company's exposures in municipal investments sector percentage of invested assets | 8.00% | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | 8.00% | ' | ||||
Company's exposures in basic industry sector percentage of invested assets | 7.00% | ' | ' | ' | 8.00% | ' | ' | ' | 7.00% | 8.00% | ' | ||||
Number of securities included in AFS securities in unrealized loss position | 1,007 | ' | ' | ' | ' | ' | ' | ' | 1,007 | ' | ' | ||||
Percentage of gross unrealized losses depressed | 89.00% | ' | ' | ' | ' | ' | ' | ' | 89.00% | ' | ' | ||||
Securities depressed to cost or amortized cost lower limit | 20.00% | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ||||
Number of years to maturity for securities concentrated in financial services sector | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ||||
Carrying value of mortgage loans valuation allowance | $86,000,000 | ' | ' | ' | $189,000,000 | ' | ' | ' | $86,000,000 | $189,000,000 | ' | ||||
Debt securities carrying amount | 53,000,000 | ' | ' | ' | 47,000,000 | ' | ' | ' | 53,000,000 | 47,000,000 | ' | ||||
Subsequent impairment | 3,000,000 | ' | ' | ' | 3,000,000 | ' | ' | ' | 3,000,000 | 3,000,000 | ' | ||||
Current weighted average loan to value ratio of commercial mortgage loan | 57.00% | ' | ' | ' | ' | ' | ' | ' | 57.00% | ' | ' | ||||
Weighted average loan to value ratio of commercial mortgage loan | 63.00% | ' | ' | ' | ' | ' | ' | ' | 63.00% | ' | ' | ||||
Avg Debt-Service Coverage Ratio | 2.23 | ' | ' | ' | ' | ' | ' | ' | 2.23 | ' | ' | ||||
Number of delinquent loans | 0 | ' | ' | ' | 1 | ' | ' | ' | 0 | 1 | ' | ||||
Limited Partnerships and Other Alternative Investments | 1,329,000,000 | ' | ' | ' | 1,372,000,000 | ' | ' | ' | 1,329,000,000 | 1,372,000,000 | ' | ||||
Assets | 202,715,000,000 | ' | ' | ' | 215,891,000,000 | ' | ' | ' | 202,715,000,000 | 215,891,000,000 | ' | ||||
Liabilities | 194,476,000,000 | ' | ' | ' | 205,508,000,000 | ' | ' | ' | 194,476,000,000 | 205,508,000,000 | ' | ||||
Net Investment Income | ' | ' | ' | ' | ' | ' | ' | ' | 1,683,000,000 | 2,536,000,000 | 2,572,000,000 | ||||
Net income attributable to Hartford Life Insurance Company | -81,000,000 | 201,000,000 | -35,000,000 | 380,000,000 | -25,000,000 | 203,000,000 | 87,000,000 | 289,000,000 | 465,000,000 | 554,000,000 | 244,000,000 | ||||
Notional Amount | 4,500,000,000 | ' | ' | ' | 5,100,000,000 | ' | ' | ' | 4,500,000,000 | 5,100,000,000 | ' | ||||
Cash flow hedge gain (loss) to be reclassified within | ' | ' | ' | ' | ' | ' | ' | ' | 46,000,000 | ' | ' | ||||
Cash collateral received | 171 | ' | ' | ' | 607 | ' | ' | ' | 171 | 607 | ' | ||||
Fair value of securities on deposit | 13,000,000 | ' | ' | ' | 14,000,000 | ' | ' | ' | 13,000,000 | 14,000,000 | ' | ||||
Variable interest entity liabilities for other liabilities | 35,000,000 | [1] | ' | ' | ' | 111,000,000 | [1] | ' | ' | ' | 35,000,000 | [1] | 111,000,000 | [1] | ' |
Net income (loss) | -81,000,000 | 201,000,000 | -35,000,000 | 386,000,000 | -22,000,000 | 203,000,000 | 87,000,000 | 288,000,000 | 471,000,000 | 556,000,000 | 244,000,000 | ||||
Gross gains and losses on sales and impairments reported in AOCI | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | -55,000,000 | 75,000,000 | ||||
Total stockholder’s equity | 8,239,000,000 | ' | ' | ' | 10,383,000,000 | ' | ' | ' | 8,239,000,000 | 10,383,000,000 | ' | ||||
Percentage of Stockholders' Equity to Credit Concentration Risk | 10.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ||||
Pledged Financial Instruments, Not Separately Reported, Securities for Repurchase Agreements | 923 | ' | ' | ' | ' | ' | ' | ' | 923 | ' | ' | ||||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | 923 | ' | ' | ' | ' | ' | ' | ' | 923 | ' | ' | ||||
Disposal Group, Assets of Business Transferred under Modified Coinsurance Arrangement | 1,300,000,000 | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ||||
Securities Received as Collateral | 121 | ' | ' | ' | 490 | ' | ' | ' | 121 | 490 | ' | ||||
Fair Value of Securities Received as Collateral that Can be Resold or Repledged | 117 | ' | ' | ' | 348 | ' | ' | ' | 117 | 348 | ' | ||||
Securities Received as Collateral, Amount Repledged and Sold | ' | ' | ' | ' | ' | ' | ' | ' | 39 | 0 | ' | ||||
Fixed Maturities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Fair value collateral pledged | 865,000,000 | ' | ' | ' | 370,000,000 | ' | ' | ' | 865,000,000 | 370,000,000 | ' | ||||
Equity Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Change in unrealized holding gain (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 0 | 1,000,000 | ||||
Government of Japan Government of United Kingdom And T And T Inc [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of largest exposure to invested assets | 3.00% | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ||||
Jp Morgan Chase and Co Wells Fargo and Co and At and T Inc [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of largest exposure to invested assets | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | 2.00% | ' | ||||
Commercial [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Investment delinquency period | ' | ' | ' | ' | ' | ' | ' | ' | '90 days or more | ' | ' | ||||
Limited Partner [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Limited Partnerships and Other Alternative Investments | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ||||
Outstanding commitments to fund limited partnership and other alternative investments | 223,000,000 | ' | ' | ' | ' | ' | ' | ' | 223,000,000 | ' | ' | ||||
Aggregate investment loss percentage of Company's pre-tax consolidated net income, minimum | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ||||
Assets | 77,200,000,000 | ' | ' | ' | 75,300,000,000 | ' | ' | ' | 77,200,000,000 | 75,300,000,000 | ' | ||||
Liabilities | 10,700,000,000 | ' | ' | ' | 9,600,000,000 | ' | ' | ' | 10,700,000,000 | 9,600,000,000 | ' | ||||
Net Investment Income | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000,000 | 900,000,000 | 1,000,000 | ||||
Net income attributable to Hartford Life Insurance Company | ' | ' | ' | ' | ' | ' | ' | ' | 7,100,000,000 | 6,500,000,000 | 8,100,000,000 | ||||
International Program Hedging Instruments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | 57,025,000,000 | ' | ' | ' | 48,448,000,000 | ' | ' | ' | 57,025,000,000 | 48,448,000,000 | ' | ||||
International Program Hedging Instruments [Member] | Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | 8,778,000,000 | [2] | ' | ' | ' | 9,327,000,000 | [2] | ' | ' | ' | 8,778,000,000 | [2] | 9,327,000,000 | [2] | ' |
International Program Hedging Instruments [Member] | Equity Swap [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | 3,830,000,000 | ' | ' | ' | 2,683,000,000 | ' | ' | ' | 3,830,000,000 | 2,683,000,000 | ' | ||||
International Program Hedging Instruments [Member] | Net Hedge Position [Member] | Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | -1,600,000,000 | ' | ' | ' | 100,000,000 | ' | ' | ' | -1,600,000,000 | 100,000,000 | ' | ||||
International Program Hedging Instruments [Member] | Long Hedge Position [Member] | Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | 3,600,000,000 | ' | ' | ' | 4,700,000,000 | ' | ' | ' | 3,600,000,000 | 4,700,000,000 | ' | ||||
International Program Hedging Instruments [Member] | Short Hedge Position [Member] | Foreign Exchange Forward [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Notional Amount | 5,200,000,000 | ' | ' | ' | 4,600,000,000 | ' | ' | ' | 5,200,000,000 | 4,600,000,000 | ' | ||||
Basket Credit Default Swaps [Member] | Standard Market Indices of Diversified Portfolios [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Standard market indices of diversified portfolios of corporate issuers | 2,300,000,000 | ' | ' | ' | 2,400,000,000 | ' | ' | ' | 2,300,000,000 | 2,400,000,000 | ' | ||||
JAPAN [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of largest exposure to invested assets | 2.00% | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ||||
Total stockholder’s equity | 0 | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ||||
Percentage of Stockholders' Equity to Credit Concentration Risk | 10.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ||||
JAPAN [Member] | Three Win Related Foreign Currency Swaps [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Associated liability adjusted for changes in spot rates through realized capital gain | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | 189,000,000 | -100,000,000 | ||||
JAPAN [Member] | Fixed annuity hedging instruments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Associated liability adjusted for changes in spot rates through realized capital gain | ' | ' | ' | ' | ' | ' | ' | ' | 324,000,000 | 245,000,000 | -129,000,000 | ||||
Retirement Plans [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
OTTI losses recognized in other comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 173,000,000 | ' | ' | ||||
Fixed Maturities AFS [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Secured Debt, Dollar Rolls | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ||||
Other Liabilities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Secured Debt, Dollar Rolls | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ||||
Derivative Liability, Fair Value, Net | ($826,000,000) | ' | ' | ' | ' | ' | ' | ' | ($826,000,000) | ' | ' | ||||
[1] | Included in other liabilities in the Company’s Consolidated Balance Sheets. | ||||||||||||||
[2] | As of December 31, 2013 and 2012 net notional amounts are $(1.6) billion and $0.1 billion, respectively, which include $3.6 billion and $4.7 billion, respectively, related to long positions and $5.2 billion and $4.6 billion, respectively, related to short positions. |
Recovered_Sheet14
Investments and Derivative Instruments Investments and Derivative Instruments (Offsetting) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Offsetting Assets [Line Items] | ' | ' |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $120,000,000 | $100,000,000 |
Other Investments [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative Asset, Fair Value, Gross Asset | 1,510,000,000 | 2,732,000,000 |
Derivative Asset | 272,000,000 | ' |
Derivative Accrued Interest and Collateral Assets After Offsetting | -52,000,000 | -87,000,000 |
Derivative Asset, Fair Value of Collateral | ' | 490,000,000 |
Derivative Asset, Fair Value of Collateral | 121,000,000 | ' |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1,290,000,000 | 4,000,000 |
Derivative, Fair Value, Net | 99,000,000 | ' |
Derivative Asset, Fair Value, Gross Liability | ' | 2,238,000,000 |
Derivative Asset | ' | 581,000,000 |
Other Liabilities [Member] | ' | ' |
Offsetting Assets [Line Items] | ' | ' |
Derivative Liability, Fair Value, Gross Asset | -2,063,000,000 | -2,113,000,000 |
Derivative Asset | -825,000,000 | ' |
Derivative Liability, Fair Value, Gross Liability | -826,000,000 | ' |
Derivative Accrued Interest and Collateral Liabilities After Offsetting | 70,000,000 | -392,000,000 |
Derivative Liability, Fair Value of Collateral | ' | -300,000,000 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | -1,308,000,000 | -54,000,000 |
Derivative, Fair Value, Net | 71,000,000 | ' |
Derivative Liability, Fair Value, Gross Liability | ' | -1,759,000,000 |
Derivative Liability | ' | $38,000,000 |
Reinsurance_Details
Reinsurance (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Reinsurance recoverables | $19,794,000,000 | $2,893,000,000 | ' |
Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 0.00% |
Life Insurance in Force Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 1.00% |
Life insurance fees, earned premiums and other | ' | ' | ' |
Gross fee income, earned premiums and other | 3,502,000,000 | 3,739,000,000 | 4,147,000,000 |
Reinsurance assumed | 13,000,000 | 8,000,000 | 13,000,000 |
Reinsurance ceded | -1,869,000,000 | -698,000,000 | -733,000,000 |
Net fee income, earned premiums and other | 1,646,000,000 | 3,049,000,000 | 3,427,000,000 |
Earned premiums | 184,000,000 | 93,000,000 | 244,000,000 |
Group Life and Accident [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Ceded premiums written | 71 | 94 | 106 |
Life Insurance and Annuities [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Reinsurance recoverables | 825,000,000 | 2,893,000,000 | ' |
Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 0.00% |
Life insurance fees, earned premiums and other | ' | ' | ' |
Reinsurance assumed | 13,000,000 | 8,000,000 | 13,000,000 |
Reinsurance ceded | ' | -517,000,000 | -531,000,000 |
Earned premiums | 1,537,000,000 | 2,932,000,000 | 3,324,000,000 |
Accident and Health Insurance Segment [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Ceded premiums written | 152 | 177 | 191 |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Life insurance fees, earned premiums and other | ' | ' | ' |
Reinsurance assumed | 0 | 0 | 0 |
Reinsurance ceded | -155,000,000 | -181,000,000 | -202,000,000 |
Earned premiums | 109,000,000 | 117,000,000 | 103,000,000 |
Individual Life [Member] | Prudential [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Reinsurance recoverables | 0 | ' | ' |
Retirement Plans and Individual Life Businesses [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Reinsurance recoverables | 18,969,000,000 | 0 | ' |
Retirement Plans and Individual Life Businesses [Member] | Life Insurance and Annuities [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Reinsurance recoverables | $19,794,000,000 | $2,893,000,000 | ' |
Reinsurance_Details_Textual
Reinsurance (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair Value of Assets Held in Trust [Line Items] | ' | ' | ' |
Percentage of Stockholders' Equity to Credit Concentration Risk | 10.00% | ' | ' |
Life insurance recoveries on ceded reinsurance contracts | $915 | $302 | $252 |
Professional fees | 15,000,000 | 23,000,000 | ' |
Reinsurance effect on claims and benefits incurred, amount ceded | 31 | 58 | 61 |
Reinsurance recoverables | 19,794,000,000 | 2,893,000,000 | ' |
Individual Life [Member] | ' | ' | ' |
Fair Value of Assets Held in Trust [Line Items] | ' | ' | ' |
Reinsurance Recoverables, Percentage of Total | 29.00% | ' | ' |
Mass Mutual [Member] | Retirement Plans [Member] | ' | ' | ' |
Fair Value of Assets Held in Trust [Line Items] | ' | ' | ' |
Fair Value of Assets Held in Trust | 0 | ' | ' |
Prudential [Member] | Individual Life [Member] | ' | ' | ' |
Fair Value of Assets Held in Trust [Line Items] | ' | ' | ' |
Fair Value of Assets Held in Trust | 0 | ' | ' |
Reinsurance recoverables | $0 | ' | ' |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs and Present Value of Future Profits (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Retirement Plans [Member] | Retirement Plans [Member] | Individual Life [Member] | Individual Life [Member] | Retirement Plans and Individual Life Businesses [Member] | Retirement Plans and Individual Life Businesses [Member] | Retirement Plans and Individual Life Businesses [Member] | |||||||
Disposition of DAC asset | ' | $16,000,000 | ' | ' | $0 | ' | $0 | $2,229,000,000 | $0 | $0 | |||
Balance, end of period | 689,000,000 | 3,072,000,000 | 3,448,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
Amortization — DAC from discontinued operations | 0 | -35,000,000 | -47,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
Effect of currency translation | 0 | [1] | 0 | [1] | 1,000,000 | [1] | ' | ' | ' | ' | ' | ' | ' |
Adjustments to unrealized gains and losses on securities available-for-sale and other | 58,000,000 | -346,000,000 | -154,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
Amortization — Unlock benefit (charge), pre-tax | -104,000,000 | [2] | -44,000,000 | [2] | -137,000,000 | [2] | ' | ' | ' | ' | ' | ' | ' |
Amortization — DAC | -124,000,000 | -280,000,000 | -290,000,000 | -352 | ' | -2,374 | ' | ' | ' | ' | |||
Deferred costs | 16,000,000 | 329,000,000 | 381,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
Balance, beginning of period | $3,072,000,000 | $3,448,000,000 | $3,694,000,000 | ' | ' | ' | ' | ' | ' | ' | |||
[1] | [2]Includes previously unrealized gains on securities AFS of $148 and $349 recognized upon the sale of the Retirement Plans and Individual Life businesses, respectively, in the first quarter of 2013. | ||||||||||||
[2] | [1]Includes accelerated amortization of $352 and $2,374 recognized upon the sale of the Retirement Plans and Individual Life businesses, respectively, in the first quarter of 2013. For further information, see Note 2 - Business Dispositions of Notes to Consolidated Financial Statements. |
Deferred_Policy_Acquisition_Co3
Deferred Policy Acquisition Costs and Present Value of Future Profits (Details Textual) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | JPY (¥) | |
Deferred Policy Acquisition Costs and Present Value of Future Profits [Abstract] | ' | ' |
Estimated future net amortization expense of present value of future profits in 2013 | $5 | ' |
Estimated future net amortization expense of present value of future profits in 2014 | 4 | ' |
Estimated future net amortization expense of present value of future profits in 2015 | 4 | ' |
Estimated future net amortization expense of present value of future profits in 2016 | 3 | ' |
Estimated future net amortization expense of present value of future profits in 2017 | ' | ¥ 3 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Retirement [Member] | Mutual Funds [Member] | Retirement Plans [Member] | Retirement Plans [Member] | Retirement Plans [Member] | Individual Life [Member] | Individual Life [Member] | Individual Life [Member] | Individual Life [Member] | |||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | ($51,000,000) | $0 | $0 | ' | $87 | ' | ' | ' | ' | ' | $163 | ' | ' |
Goodwill written off related to sale | ' | ' | ' | ' | ' | 159,000,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill impairment loss | ' | 0 | ' | ' | ' | 10,000,000 | 0 | ' | ' | 61,000,000 | ' | 61,000,000 | 0 |
Goodwill | $0 | $250,000,000 | ' | $163,000,000 | ' | $149,000,000 | $87,000,000 | $87,000,000 | ' | ' | ' | ' | $163,000,000 |
Annual impairment test margin, percent | ' | ' | ' | ' | ' | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' |
Separate_Accounts_Death_Benefi2
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Guaranteed Minimum Death Benefit [Member] | ' | ' |
Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits | ' | ' |
Liability, beginning balance | $944 | $1,158 |
Incurred | 183 | 228 |
Paid | -135 | -258 |
Unlock | 116 | 181 |
Currency Translation Adjustment | -27 | -3 |
Liability, ending balance | 849 | 944 |
Reinsurance recoverable asset, beginning balance | 608 | 724 |
Incurred | 104 | 121 |
Paid | -98 | -121 |
Unlock | -81 | -116 |
Reinsurance recoverable asset, ending balance | 533 | 608 |
Secondary Guarantees [Member] | Universal Life [Member] | ' | ' |
Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits | ' | ' |
Liability, beginning balance | 363 | 228 |
Incurred | 294 | 113 |
Paid | 0 | ' |
Unlock | -2 | -22 |
Currency Translation Adjustment | 0 | 0 |
Liability, ending balance | 1,802 | 363 |
Reinsurance recoverable asset, beginning balance | 21 | 22 |
Incurred | 296 | -1 |
Paid | 0 | ' |
Unlock | 0 | ' |
Reinsurance recoverable asset, ending balance | 1,802 | 21 |
UNITED STATES | Guaranteed Minimum Death Benefit [Member] | ' | ' |
Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits | ' | ' |
Liabilities for Guarantees on Long-Duration contracts, Reinsurance Transaction Impact | ' | ' |
Reinsurance Recoverable Asset Impact of Reinsurance Transaction | ' | ' |
Universal Life [Member] | Guaranteed Minimum Death Benefit [Member] | ' | ' |
Changes in the gross U.S. GMDB, International GMDB/GMIB, and UL secondary guarantee benefits | ' | ' |
Liabilities for Guarantees on Long-Duration contracts, Reinsurance Transaction Impact | 1,143 | ' |
Reinsurance Recoverable Asset Impact of Reinsurance Transaction | $1,485 | ' |
Separate_Accounts_Death_Benefi3
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Annuity Account Value) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | ||||||||||||
MAV Only [Member] | With 5% rollup [Member] | With Earnings Protection Benefit Rider (EPB) [Member] | With 5% rollup & EPB [Member] | Asset Protection Benefit ("APB") [Member] | Lifetime Income Benefit ("LIB") - Death Benefit [Member] | Reset [Member] | Return of Premium ("ROP")/Other [Member] | Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | |||||||||||||||
U.S. [Member] | JAPAN [Member] | JAPAN [Member] | |||||||||||||||||||||||
Individual Variable and Group Annuity Account Value by GMDB/GMIB Type | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||
Account Value ("AV") | $26,698,000,000 | [1],[2] | ' | $19,638,000,000 | [1],[2] | $1,610,000,000 | [1],[2] | $4,862,000,000 | [1],[2] | $588,000,000 | [1],[2] | $18,579,000,000 | [1],[2],[3] | $773,000,000 | [1],[2],[4] | $3,286,000,000 | [1],[2],[5] | $12,476,000,000 | [1],[2],[6] | $61,812,000,000 | [1],[2] | $12,659,000,000 | [1],[2],[7],[8] | $12,456,000,000 | [1],[2],[7],[8] |
Net Amount at Risk ("NAR") | 3,894,000,000 | [1],[9] | ' | 2,914,000,000 | [1],[9] | 232,000,000 | [1],[2] | 629,000,000 | [1],[2] | 119,000,000 | [1],[2] | 277,000,000 | [1],[3],[9] | 9,000,000 | [1],[4],[9] | 74,000,000 | [1],[5],[9] | 71,000,000 | [1],[6],[9] | 4,325,000,000 | [1],[9] | 167,000,000 | [1],[7],[8],[9] | 102,000,000 | [1],[7],[8],[9] |
Retained Net Amount at Risk ("RNAR") | 218,000,000 | [1],[9] | ' | 178,000,000 | [1],[9] | 16,000,000 | [1],[2] | 19,000,000 | [1],[2] | 5,000,000 | [1],[2] | 55,000,000 | [1],[3],[9] | 2,000,000 | [1],[4],[9] | 34,000,000 | [1],[5],[9] | 17,000,000 | [1],[6],[9] | 326,000,000 | [1],[9] | 0 | [1],[7],[8],[9] | 0 | [1],[7],[8],[9] |
Weighted Average Attained Age of Annuitant | ' | ' | '69 years | [1] | '69 years | [1],[2] | '67 years | [1],[2] | '70 years | [1],[2] | '68 years | [1],[3] | '66 years | [1],[4] | '69 years | [1],[5] | '67 years | [1],[6] | '68 years | [1] | '69 years | [1],[7],[8] | '69 years | [1],[7],[8] | |
Less: General Account Value with U.S. GMBD | 4,349,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Subtotal Separate Account Liabilities with GMDB | 57,463,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Separate Account Liabilities without U.S. GMDB | 83,411,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Total Separate Account Liabilities | $140,874,000,000 | [1],[2] | $141,558,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
[1] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). | ||||||||||||||||||||||||
[2] | AV includes the contract holder’s investment in the separate account and the general account. | ||||||||||||||||||||||||
[3] | APB GMDB is the greater of current AV or MAV, not to exceed current AV plus 25% times the greater of net premiums and MAV (each adjusted for premiums in the past 12Â months). | ||||||||||||||||||||||||
[4] | LIB GMDB is the greatest of current AV, net premiums paid, or for certain contracts a benefit amount that ratchets over time, generally based on market performance. | ||||||||||||||||||||||||
[5] | Reset GMDB is the greatest of current AV, net premiums paid and the most recent five to seven year anniversary AV before age 80 (adjusted for withdrawals). | ||||||||||||||||||||||||
[6] | ROP GMDB is the greater of current AV and net premiums paid. | ||||||||||||||||||||||||
[7] | Policies with a guaranteed living benefit (a GMWB in the US or a GMIB in Japan) also have a guaranteed death benefit. The NAR for each benefit is shown, however these benefits are not additive. When a policy terminates due to death, any NAR related to GMWB or GMIB is released. Similarly, when a policy goes into benefit status on a GMWB or GMIB, its GMDB NAR is released. | ||||||||||||||||||||||||
[8] | Assumed GMDB includes a ROP and MAV (before age 80) paid in a single lump sum. GMIB is a guarantee to return initial investment, adjusted for earnings liquidity, paid through a fixed annuity, after a minimum deferral period of 10, 15 or 20 years. The GRB related to the Japan GMIB was $11.7 billion as of December 31, 2013. The GRB related to the Japan GMAB and GMWB was $304 as of December 31, 2013. These liabilities are not included in the Separate Account as they are not legally insulated from the general account liabilities of the insurance enterprise. As of December 31, 2013, 100% of NAR is reinsured to an affiliate. See Note 13 - Transactions with Affiliates of Notes to Consolidated Financial Statements. | ||||||||||||||||||||||||
[9] | NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. |
Separate_Accounts_Death_Benefi4
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Account Balances of Contracts with Guarantees) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ' | ' |
Variable separate accounts | $57,463 | $65,148 |
Equity securities (including mutual funds) [Member] | ' | ' |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ' | ' |
Variable separate accounts | 52,858 | 58,208 |
Cash and cash equivalents [Member] | ' | ' |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ' | ' |
Variable separate accounts | $4,605 | $6,940 |
Separate_Accounts_Death_Benefi5
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Anniversy period of account value prior to insurer age minimum | '5 years | ' |
Anniverary period of account value prior to insurer age maximum | '7 years | ' |
Percentage of GMDB retained net amount of risk reinsured to a Hartford affiliate | 100.00% | ' |
Age of insurer up to return of premium and MAV | '80 years | ' |
Invested in fixed income securities | 17.00% | 16.00% |
Invested in equity securities | 83.00% | 84.00% |
MAV Only [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Age of insurer up to adjusted for withdrawals | '80 years | ' |
With 5% rollup [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Age of insurer up to adjusted for withdrawals | '80 years | ' |
Simple interest up to the earlier of age 80 | 5.00% | ' |
Adjusted premiums | 100.00% | ' |
With Earnings Protection Benefit Rider (EPB) [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Premiums net of withdrawals | 200.00% | ' |
Asset Protection Benefit ("APB") [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Greater of net premiums and MAV | 25.00% | ' |
Number of past months adjusted for premiums | '12 months | ' |
Reset [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Age of insurer up to adjusted for withdrawals | '80 years | ' |
Guaranteed Minimum Income Benefit [Member] | JAPAN [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Guaranteed remaining balance | 11,700 | ' |
Minimum deferral period for return initial investment of income benefit | '10 years | ' |
Minimum deferral period for earnings liquidity of income benefit | '15 years | ' |
Minimum deferral period for fixed annuity of income benefit | '20 years | ' |
Guaranteed Minimum Withdrawal Benefit [Member] | JAPAN [Member] | ' | ' |
Separate Accounts, Death Benefits and Other Insurance Benefit Features (Textual) [Abstract] | ' | ' |
Guaranteed remaining balance | 304 | ' |
Sales_Inducements_Details
Sales Inducements (Details) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retirement Plans [Member] | Retirement Plans and Individual Life Businesses [Member] | Retirement Plans and Individual Life Businesses [Member] | Retirement Plans and Individual Life Businesses [Member] | Retirement Plans and Individual Life Businesses [Member] | |||||
Balance, beginning of period | $118,000,000 | $186,000,000 | $197,000,000 | $36,000,000 | ' | ' | ' | ' | ' |
Sales inducements deferred | 0 | 4,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' |
Amortization Unlock | 3,000,000 | 59,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' |
Deferred Sales Inducements, Amortization Expense | $8,000,000 | $13,000,000 | $13,000,000 | ' | ($22) | ($49) | $71,000,000 | $0 | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Future minimum lease commitments | ' | ' | ' |
Total rental expenses on operating leases | $2 | $17 | $19 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 |
Guarantor Obligations [Line Items] | ' | ' | ' |
Derivative, Net Liability Position, Aggregate Fair Value | $844 | ' | ' |
Total unfunded commitments | 253 | ' | ' |
Commitments to fund limited partnership and other alternative investments | 223 | ' | ' |
Commitments to fund mortgage loans | 27 | ' | ' |
Collateral posted by insurance operating entities | 945 | ' | ' |
Notional Amount | 4,500 | ' | 5,100 |
Minimum percentage of premiums written per year | 1.00% | ' | ' |
Maximum percentage of premiums written per year | 2.00% | ' | ' |
Liabilities for guaranty fund and other insurance-related assessments | 21 | ' | 42 |
Premium tax offsets | 27 | ' | 27 |
Expected assessment related to executive insurance plan | ' | 0 | ' |
GMWB Derivative [Member] | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' |
Collateral payment, preventing termination | 44 | ' | ' |
Double Notch Downgrade [Member] | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' |
Additional assets to be posted as collateral | $5 | ' | ' |
Income_Tax_Expense_Benefit_Det
Income Tax (Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit) | ' | ' | ' |
Current - U.S. Federal income tax expense (benefit) | ($208) | $139 | ($206) |
Deferred - U.S. Federal income tax expense (benefit) excluding NOL carryforward | 405 | -94 | 46 |
Deferred income tax expense (benefit) - net operating loss carryforward | -148 | -9 | -163 |
Total deferred income tax expense (benefit) | 257 | -103 | -117 |
Total income tax expense (benefit) | $49 | $36 | ($323) |
Income_Tax_Deferred_Tax_Assets
Income Tax (Deferred Tax Assets (Liabilities)) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Tax basis deferred policy acquisition costs | $163 | $424 |
Investment-related items | 1,516 | 1,244 |
Insurance product derivatives | 742 | 1,092 |
NOL Carryover | 377 | 225 |
Minimum tax credit | 327 | 355 |
Foreign tax credit carryover | 44 | 33 |
Capital loss carryover | 0 | 5 |
Other | 71 | 65 |
Total Deferred Tax Assets | 3,240 | 3,443 |
Valuation Allowance | 0 | -53 |
Net Deferred Tax Assets | 3,240 | 3,390 |
Deferred Tax Liabilities | ' | ' |
Financial statement deferred policy acquisition costs and reserves | -650 | -356 |
Net unrealized gain on investments | -403 | -1,432 |
Employee benefits | -52 | -45 |
Deferred Tax Liabilities Other Depreciable and Amortizable Assets | -25 | 0 |
Total Deferred Tax Liabilities | -1,130 | -1,833 |
Total Deferred Tax Asset | $2,110 | $1,557 |
Income_Tax_Reconciliation_of_T
Income Tax (Reconciliation of Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of the tax provision at the U.S. Federal statutory rate to the provision for income taxes | ' | ' | ' |
Tax provision (benefit) at the U.S. federal statutory rate | $196 | $186 | ($48) |
Dividends-received deduction | -135 | -140 | -201 |
Foreign related investments | -7 | -9 | -15 |
Valuation Allowance | 0 | 0 | -56 |
Other | -5 | -1 | -3 |
Total income tax expense (benefit) | $49 | $36 | ($323) |
Income_Tax_Details_Textual
Income Tax (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income loss from domestic operations | ' | $561 | $531 | ($137) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | ' | 0 | ' | 0 |
Expected tax benefit attributable to net operating losses | ' | 0 | 221 | ' |
Current income tax receivable | ' | 80 | -192 | ' |
Deferred income tax expense (benefit) | ' | 0 | -18 | 0 |
Deferred tax asset, valuation allowance | ' | 0 | ' | ' |
Amount of valuation allowance released | 56 | ' | ' | ' |
Percentage of valuation allowance released associated with investment realized capital losses | 100.00% | ' | ' | ' |
Net Deferred Tax Asset | ' | 2,110 | 1,557 | ' |
Dividends received deduction settlement benefit | $52 | ' | ' | ' |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
Financial instruments owned and pledged as collateral | $1,250,000,000 | ' | ' |
Maximum possible extended period of maturity consumer notes | '30 years | ' | ' |
Consumer Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Aggregate redemption limit of consumer notes | 1,000,000 | ' | ' |
aggregate redemption limit of consumer notes, percent | 1.00% | ' | ' |
Individual redemption limit of consumer notes | 250,000 | ' | ' |
Interest rate on fixed consumer notes, minimum | 4.00% | ' | ' |
Interest rate on fixed consumer notes, maximum | 6.00% | ' | ' |
Long-term debt 2014 Repayments | 14,000,000 | ' | ' |
Long-term debt, maturities, 2015 Repayments | 32,000,000 | ' | ' |
Long-term debt, maturities, 2016 Repayments | 18,000,000 | ' | ' |
Long-term debt, maturities, 2017 Repayments | 12,000,000 | ' | ' |
Long-term debt, maturities, thereafter repayments | 8,000,000 | ' | ' |
Interest credited to consumer notes holders | $6,000,000 | $10,000,000 | $15,000,000 |
Minimum [Member] | Consumer Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Consumer Price Index, Basis Points | 102 | ' | ' |
Maximum [Member] | Consumer Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Consumer Price Index, Basis Points | 247 | ' | ' |
Statutory_Results_Details
Statutory Results (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 30, 2013 | Mar. 30, 2013 | |
Connecticut Domiciled Life Insurance Subsidiaries [Member] | Parent Company [Member] | ||||
Statutory Accounting Practices [Line Items] | ' | ' | ' | ' | ' |
Extrordinary dividend | ' | ' | ' | $1,100,000,000 | $1,200,000,000 |
Statutory Results [Abstract] | ' | ' | ' | ' | ' |
Combined statutory net income (loss) | 1,290,000 | 927,000 | -669,000 | ' | ' |
Statutory capital and surplus | 5,005,000 | 5,016,000 | 5,920,000 | ' | ' |
Percent available for dividend distribution without prior approval from regulatory agency | 10.00% | ' | ' | ' | ' |
Amount available for dividend distribution without prior approval from regulatory agency | 1,000,000,000 | ' | ' | ' | ' |
Amount available for dividend distribution with approval from regulatory agencies | $919,000,000 | ' | ' | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension plans and postretirement health care and life insurance benefit plans (Textual) [Abstract] | ' | ' | ' |
Postretirement health care and life insurance benefits expense | ($1,000,000) | ($3,000,000) | $45,000,000 |
Contributions matched to base salary of employee by company | 6.00% | ' | ' |
Earning of employees below and above limit | 1,000,000 | 110,000 | ' |
Contribution percentage of base salary related to earning of employees below limit | 1.50% | ' | ' |
Contribution percentage of base salary related to earning of employees above limit | 0.50% | ' | ' |
Cost to company related to contribution pension plan | $7,000,000 | $10,000,000 | $9,000,000 |
Stock_Compensation_Plans_Detai
Stock Compensation Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock based Compensation Plans | ' | ' | ' |
Stock-based compensation plans expense | $11 | $32 | $14 |
Income tax benefit recognized for stock-based compensation | $4 | $11 | $5 |
Transactions_with_Affiliates_R
Transactions with Affiliates (Related Party Transaction Event on Statement of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
hig_DisposalGroupNotDiscontinuedOperationGainLossOnDisposalNetOfTax | ' | ' | ' | ' | ' | ' | ' | ' | $224 | ' | ' | |||
Related Party Transaction, Expenses from Transactions with Related Party | ' | ' | ' | ' | ' | ' | ' | ' | 347 | ' | ' | |||
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | 184,000,000 | 93,000,000 | 244,000,000 | |||
Net realized gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | 326,000,000 | -1,481,000,000 | -77,000,000 | |||
Total revenues | 335,000,000 | 804,000,000 | 229,000,000 | 2,267,000,000 | 626,000,000 | 1,170,000,000 | 2,110,000,000 | 198,000,000 | 3,655,000,000 | 4,104,000,000 | 5,922,000,000 | |||
Benefits, losses and loss adjustment expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,758,000,000 | 2,900,000,000 | 3,108,000,000 | |||
Insurance operating costs and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | -401,000,000 | 268,000,000 | 2,507,000,000 | |||
Total expenses | 519,000,000 | 550,000,000 | 271,000,000 | 1,754,000,000 | 671,000,000 | 948,000,000 | 2,014,000,000 | -60,000,000 | 3,094,000,000 | 3,573,000,000 | 6,059,000,000 | |||
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 561,000,000 | 531,000,000 | -137,000,000 | |||
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 49,000,000 | 36,000,000 | -323,000,000 | |||
Net income | -81,000,000 | 201,000,000 | -35,000,000 | 386,000,000 | -22,000,000 | 203,000,000 | 87,000,000 | 288,000,000 | 471,000,000 | 556,000,000 | 244,000,000 | |||
Hartford Life Insurance K.K. [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Assumed Liability for Unpaid Claims and Claims Adjustment Expense | 1,500,000,000 | ' | ' | ' | 2,100,000,000 | ' | ' | ' | 1,500,000,000 | 2,100,000,000 | ' | |||
Hartford Life and Annuity Insurance Company [Member] | White River Life Reinsurance (WRR) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Earned premiums | ' | ' | ' | ' | ' | ' | ' | ' | -31,000,000 | -58,000,000 | -61,000,000 | |||
Net realized gains (losses) | ' | ' | ' | ' | ' | ' | ' | ' | -1,665,000,000 | [1] | -2,130,000,000 | [1] | 483,000,000 | [1] |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | -1,696,000,000 | -2,188,000,000 | 422,000,000 | |||
Benefits, losses and loss adjustment expenses | ' | ' | ' | ' | ' | ' | ' | ' | -8,000,000 | -55,000,000 | -50,000,000 | |||
Insurance operating costs and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | -1,158,000,000 | -1,442,000,000 | 836,000,000 | |||
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | -1,166,000,000 | -1,497,000,000 | 786,000,000 | |||
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -530,000,000 | -691,000,000 | -364,000,000 | |||
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -185,000,000 | -242,000,000 | -127,000,000 | |||
Income (Loss) from Continuing Operations Attributable to Parent | ' | ' | ' | ' | ' | ' | ' | ' | -345,000,000 | -449,000,000 | ' | |||
Net income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($237,000,000) | |||
[1] | Amounts represent the change in valuation of the derivative associated with this transaction. |
Transactions_with_Affiliates_D
Transactions with Affiliates (Details Textual) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2013 | Dec. 31, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Affiliated Entity [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | Hartford Life and Annuity Insurance Company [Member] | HLAI [Member] | Net Income Impact [Member] | Net Income Impact [Member] | ||||||
Hartford Life Liimited Ireland (HLL) | Hartford Life Liimited Ireland (HLL) | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life Insurance K.K. [Member] | Hartford Life International Limited [Member] | White River Life Reinsurance (WRR) [Member] | White River Life Reinsurance (WRR) [Member] | ||||||||||||||||
Guaranteed Minimum Accumulation Benefit and Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Accumulation Benefit and Guaranteed Minimum Withdrawal Benefit [Member] | Guaranteed Minimum Accumulation Benefit [Member] | Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Death Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Income Benefit [Member] | Guaranteed Minimum Death Benefit [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $344 | ' | ' | |
Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Life Insurance in Force Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | |
Assumed Liability for Unpaid Claims and Claims Adjustment Expense | ' | ' | ' | ' | ' | 54,000,000 | 53,000,000 | ' | 1,500,000,000 | 2,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Assumed Premiums Earned | 13,000,000 | 8,000,000 | 13,000,000 | ' | ' | 8,000,000 | 28,000,000 | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payout annuity | ' | ' | ' | ' | 2,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payout annuity period | ' | ' | ' | ' | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Reinsurance assumed risk | 3,894,000,000 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,700,000,000 | ' | ' | ' | ' | 42 | ' | ' | ' | ' | ' |
Derivative Liability, Fair Value, Gross Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | 1,800,000,000 | ' | ' | ' | ' | ' | ' | |
Derivative Liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 0 | ' | ' | ' | ' | ' | 0 | 22 | 4 | ' | ' | ' | ' | ' | |
Reinsurance Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 129,000,000,000 | 1,300,000,000 | ' | ' | ' | |
Deposit liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 638,000,000 | 527,000,000,000 | ' | ' | ' | |
Reinsurance recoverables | 19,794,000,000 | 2,893,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 495,000,000,000 | 900,000,000,000 | |
Funds Held under Reinsurance Agreements, Liability | ' | ' | ' | $691 | ' | ' | ' | ' | ' | ' | $310,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | NAR is defined as the guaranteed benefit in excess of the current AV. RNAR is NAR reduced for reinsurance. NAR and RNAR are highly sensitive to equity market movements and increase when equity markets decline. | ||||||||||||||||||||||||||
[2] | MAV GMDB is the greatest of current AV, net premiums paid and the highest AV on any anniversary before age 80 (adjusted for withdrawals). |
Restructuring_and_Other_Costs_1
Restructuring and Other Costs (Pre-tax Incurred) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Reserve | $1 | $31 | ' |
Payments for Restructuring | 57 | 89 | ' |
Severance benefits and related costs | 7 | 93 | ' |
Professional fees | 15 | 23 | ' |
Asset impairment charges | 5 | 4 | ' |
Total restructuring and other costs | 27 | 120 | ' |
Professional Fees [Member] (Deprecated 2013-01-31) | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Reserve | 0 | 0 | 0 |
Payments for Restructuring | 15 | 23 | ' |
Total restructuring and other costs | $15 | $23 | ' |
Restructuring_and_Other_Costs_2
Restructuring and Other Costs (Accrued Restructuring Liability) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning of period | $31 | ' |
Accruals/provisions | 27 | 120 |
Payments/write-offs | -57 | -89 |
Balance, end of period | 1 | 31 |
Severance Benefit and Related Costs [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning of period | 31 | ' |
Accruals/provisions | 7 | 93 |
Payments/write-offs | -37 | -62 |
Balance, end of period | 1 | 31 |
Professional Fees [Member] (Deprecated 2013-01-31) | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning of period | 0 | 0 |
Accruals/provisions | 15 | 23 |
Payments/write-offs | -15 | -23 |
Balance, end of period | 0 | 0 |
Asset Impairment Charges [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Balance, beginning of period | 0 | ' |
Accruals/provisions | 5 | 4 |
Payments/write-offs | -5 | -4 |
Balance, end of period | $0 | $0 |
Restructuring_and_Other_Costs_3
Restructuring and Other Costs (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring and related expected cost | $147 |
Minimum [Member] | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Number of months to complete restructuring plan | '24 months |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net realized capital gains (losses), excluding net OTTI losses recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | ($1,190) | ($1,226) | $48 | ' |
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 561 | 531 | -137 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 574 | ' | ' | ' | 1,987 | ' | ' | ' | 574 | 1,987 | 953 | -322 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -423 | 1,114 | 1,377 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -990 | -80 | -102 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | -2 | ' |
Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -1,413 | 1,034 | 1,275 | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -47 | -45 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,120 | 1,174 | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | -110 | 103 | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 49 | 36 | -323 | ' |
Net income (loss) | -81 | 201 | -35 | 386 | -22 | 203 | 87 | 288 | 471 | 556 | 244 | ' |
Gain (Loss) on Derivative Instruments, Net, Pretax | ' | ' | ' | ' | ' | ' | ' | 110 | ' | ' | ' | ' |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ' | ' | ' | ' | 1,752 | ' | ' | ' | ' | 1,752 | 632 | -542 |
Net realized capital gains (losses), excluding net OTTI losses recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | 1,392 | -55 | 75 | ' |
Income (loss) from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,392 | -55 | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 495 | ' | ' | ' | 1,752 | ' | ' | ' | 495 | 1,752 | 632 | ' |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -352 | 1,084 | 1,223 | ' |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ' | ' | ' | ' | ' | ' | ' | '-94 | '6 | '156 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -905 | 36 | -49 | ' |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | 23 | 24 | -2 | ' |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 79 | ' | ' | ' | 258 | ' | ' | ' | 79 | 258 | 368 | ' |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 0 | ' | ' | ' | -23 | ' | ' | ' | 0 | -23 | -47 | ' |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -1,257 | ' | ' | ' |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -179 | ' | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 487 | -19 | 26 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 905 | -36 | 49 | ' |
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | -23 | ' | ' | ' | ' | -23 | ' | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | ' | ' | ' | 258 | ' | ' | ' | ' | 258 | 368 | 265 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ' | ' | ' | ' | ' | ' | ' | ' | -85 | -116 | -53 | ' |
Cash Flow Hedging [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | ' | ' | ' | ' | 131 | 178 | 82 | ' |
Cash Flow Hedging [Member] | Interest Income [Member] | Interest Rate Swap [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | ' | ' | ' | ' | 57 | 97 | 77 | ' |
Cash Flow Hedging [Member] | Net Realized Capital Gain Loss [Member] | Interest Rate Swap [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | ' | ' | ' | ' | 70 | 85 | 6 | ' |
Cash Flow Hedging [Member] | Net Realized Capital Gain Loss [Member] | Currency Swap [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | ' | ' | ' | ' | ' | ' | ' | ' | 4 | -4 | -1 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 990 | 80 | 102 | ' |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 46 | 62 | 29 | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 85 | 116 | 53 | ' |
Retirement Plans and Individual Life Businesses [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net realized capital gains (losses), excluding net OTTI losses recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | ' |
Gain (Loss) on Derivative Instruments, Net, Pretax | ' | ' | ' | ' | ' | ' | ' | ' | $71 | ' | ' | ' |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Disposal Group, Including Discontinued Opeation, Earned Premium | ($23) | $0 | $0 |
Revenue | ' | ' | ' |
Fee income and other | 14 | 563 | 609 |
Net investment income (loss) | ' | ' | -6 |
Disposal Group, Including Discontinued Operation, Net Investment Income, Securities Available-for-sale and Other | -3 | 10 | 8 |
Disposal Group, Including Discontinued Operation, Net Investment Income, Equity Securities, Trading | 139 | 201 | -14 |
Disposal Group Including Discontinued Operations, Net Investment Income | 136 | 211 | ' |
Net realized capital gains | -14 | 68 | 78 |
Total revenues | 113 | 842 | 681 |
Benefits, losses and expenses | ' | ' | ' |
Benefits, losses and loss adjustment expenses | -33 | 410 | 541 |
Disposal Group, Including Discontinued Operation Benefits, Losses and Loss Adjustment Expenses, Returns Credited on International Variable Annuities | 139 | 201 | -14 |
Disposal Group, Including Discontinued Operation, Benefits Losses and Loss Adjustment Expenses | 2 | 0 | -1 |
Amortization of DAC | 0 | 35 | 47 |
Goodwill impairment | 0 | 149 | 0 |
Total benefits, losses and expenses | 108 | 795 | 573 |
Income (loss) before income taxes | 5 | 47 | 108 |
Income tax expense (benefit) | -5 | -14 | 50 |
Income (loss) from operations of discontinued operations, net of tax | 10 | 61 | 58 |
Net realized capital gain on disposal, net of tax | -51 | 0 | 0 |
Income (loss) from discontinued operations, net of tax | ($41) | $61 | $58 |
Quarterly_Results_Unaudited_De
Quarterly Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $335 | $804 | $229 | $2,267 | $626 | $1,170 | $2,110 | $198 | $3,655 | $4,104 | $5,922 |
Total benefits, losses and expenses | 519 | 550 | 271 | 1,754 | 671 | 948 | 2,014 | -60 | 3,094 | 3,573 | 6,059 |
Income (loss) from continuing operations, net of tax | -68 | 202 | 11 | 367 | 27 | 173 | 93 | 202 | 512 | 495 | 186 |
Income (loss) from discontinued operations, net of tax | -13 | -1 | -46 | 19 | -49 | 30 | -6 | 86 | ' | ' | 58 |
Net income (loss) | -81 | 201 | -35 | 386 | -22 | 203 | 87 | 288 | 471 | 556 | 244 |
Less: Net income (loss) attributable to the noncontrolling interest | 0 | 0 | 0 | 6 | 3 | 0 | 0 | -1 | 6 | 2 | 0 |
Net income (loss) attributable to Hartford Life Insurance Company | ($81) | $201 | ($35) | $380 | ($25) | $203 | $87 | $289 | $465 | $554 | $244 |
Schedule_I_Summary_of_Investme1
Schedule I - Summary of Investments - Other Than Investments in Affiliates (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | $37,563 |
Fair Value | 37,884 |
Amount at which shown on Balance Sheet | 37,775 |
U.S. government and government agencies and authorities (guaranteed and sponsored) [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 3,714 |
Fair Value | 3,728 |
Amount at which shown on Balance Sheet | 3,728 |
Municipal [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 988 |
Fair Value | 965 |
Amount at which shown on Balance Sheet | 965 |
Foreign governments [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 1,267 |
Fair Value | 1,177 |
Amount at which shown on Balance Sheet | 1,177 |
Public utilities [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 3,368 |
Fair Value | 3,579 |
Amount at which shown on Balance Sheet | 3,579 |
All other corporate bonds [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 12,545 |
Fair Value | 13,338 |
Amount at which shown on Balance Sheet | 13,338 |
All other mortgage backed and asset backed securities [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 5,306 |
Fair Value | 5,376 |
Amount at which shown on Balance Sheet | 5,376 |
Fixed Maturities AFS [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 27,188 |
Fair Value | 28,163 |
Amount at which shown on Balance Sheet | 28,163 |
Fixed Maturities, FVO [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 901 |
Fair Value | 791 |
Amount at which shown on Balance Sheet | 791 |
Fixed Maturities [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 28,089 |
Fair Value | 28,954 |
Amount at which shown on Balance Sheet | 28,954 |
Industrial, miscellaneous and all other [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 241 |
Fair Value | 254 |
Amount at which shown on Balance Sheet | 254 |
Non-redeemable preferred stocks [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 121 |
Fair Value | 118 |
Amount at which shown on Balance Sheet | 118 |
Total equity securities, available-for-sale [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 362 |
Fair Value | 372 |
Amount at which shown on Balance Sheet | 372 |
Equity securities, trading [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 10 |
Fair Value | 12 |
Amount at which shown on Balance Sheet | 12 |
Equity Securities [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 372 |
Fair Value | 384 |
Amount at which shown on Balance Sheet | 384 |
Mortgage loans [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 3,470 |
Fair Value | 3,519 |
Amount at which shown on Balance Sheet | 3,470 |
Policy Loans [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 1,416 |
Fair Value | 1,476 |
Amount at which shown on Balance Sheet | 1,416 |
Investments in partnerships and trusts [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 1,329 |
Fair Value | 1,329 |
Amount at which shown on Balance Sheet | 1,329 |
Futures Options and Miscellaneous [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 927 |
Fair Value | 270 |
Amount at which shown on Balance Sheet | 270 |
Short-term Investments [Member] | ' |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ' |
Cost | 1,960 |
Fair Value | 1,952 |
Amount at which shown on Balance Sheet | $1,952 |
Schedule_IV_Schedule_of_Reinsu1
Schedule IV - Schedule of 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] | ' | ' | ' |
Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 0.00% |
Direct Premiums Earned | $3,502 | $3,739 | $4,147 |
Ceded Premiums Earned | 1,869 | 698 | 733 |
Ceded Premiums Earned | 241,684 | 151,982 | 130,029 |
Assumed Premiums, Life Insurance in Force | 815 | 781 | 1,941 |
Premiums, Net, Life Insurance in Force | 77,783 | 203,963 | 188,729 |
Life Insurance in Force Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 1.00% |
Direct Premiums, Life Insurance in Force | 318,652 | 355,164 | 316,817 |
Assumed Premiums Earned | 13 | 8 | 13 |
Earned premiums | 184 | 93 | 244 |
Life Insurance and Annuities [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Premiums, Percentage Assumed to Net | 1.00% | 0.00% | 0.00% |
Direct Premiums Earned | 3,238 | 3,441 | 3,842 |
Ceded Premiums Earned | ' | 517 | 531 |
Ceded Premiums Earned | 1,714 | ' | ' |
Assumed Premiums Earned | 13 | 8 | 13 |
Earned premiums | 1,537 | 2,932 | 3,324 |
Accident and Health Insurance Segment [Member] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Premiums, Percentage Assumed to Net | 0.00% | 0.00% | 0.00% |
Direct Premiums Earned | 264 | 298 | 305 |
Ceded Premiums Earned | 155 | 181 | 202 |
Assumed Premiums Earned | 0 | 0 | 0 |
Earned premiums | 109 | 117 | 103 |
Property and Casualty Other Operations [Member] | Life Annuity Accident and Health Insurance Product [Domain] | ' | ' | ' |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ' | ' | ' |
Supplementary Insurance Information Earned Premiums Fee Income and Other | $1,646 | $3,049 | $3,427 |
Schedule_V_Valuation_and_Quali1
Schedule V - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Movement in Valuation allowance and reserves | ' | ' | ' |
Valuation allowance, deferred tax | $0 | $0 | ($56) |
Balance, December 31 | 0 | ' | ' |
Valuation allowance on deferred tax asset [Member] | ' | ' | ' |
Movement in Valuation allowance and reserves | ' | ' | ' |
Balance, January 1 | 53 | 78 | 131 |
Valuation allowance, deferred tax | 0 | -25 | -53 |
Translation Adjustment | 0 | 0 | 0 |
Write-offs/ Payments/ Other | -53 | 0 | 0 |
Balance, December 31 | 0 | 53 | 78 |
Valuation allowance on mortgage loans [Member] | ' | ' | ' |
Movement in Valuation allowance and reserves | ' | ' | ' |
Balance, January 1 | 14 | 23 | 62 |
Charged to Costs and Expenses | 2 | -4 | -25 |
Translation Adjustment | 0 | 0 | ' |
Write-offs/ Payments/ Other | -4 | -5 | -14 |
Balance, December 31 | $12 | $14 | $23 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 02, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Hartford Life and Annuity Insurance Company [Member] | Hartford Life Insurance Company and Hartford Life and Annuity Insurance Company [Member] | Hartford Life Insurance K.K. [Member] | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Contract Termination | ' | ' | ' | ' | $215,000,000 | ' | ' |
Capital contributions (to) from parent | -1,200,000,000 | ' | ' | ' | 1,000,000,000 | ' | ' |
Dividends Received From Subsidiaries | ' | ' | ' | ' | ' | 800,000,000 | ' |
Fixed payout annuities obligation after sale | ' | ' | ' | ' | ' | ' | 1,100,000,000 |
Funds Held under Reinsurance Agreements, Liability | ' | ' | ' | $691 | $310,000,000 | ' | ' |