GENWORTH FINANCIAL INC, 10-Q filed on 8/2/2011
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2011
Jul. 25, 2011
Document and Entity Information
 
 
Document Type
10-Q 
 
Amendment Flag
FALSE 
 
Document Period End Date
Jun. 30, 2011 
 
Document Fiscal Year Focus
2011 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
GNW 
 
Entity Registrant Name
GENWORTH FINANCIAL INC 
 
Entity Central Index Key
0001276520 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
490,716,493 
Condensed Consolidated Statements of Income (USD $)
In Millions, except Per Share data
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Revenues:
 
 
 
 
Premiums
$ 1,455 
$ 1,470 
$ 2,892 
$ 2,940 
Net investment income
881 
823 
1,711 
1,588 
Net investment gains (losses)
(40)
(139)
(68)
(209)
Insurance and investment product fees and other
359 
256 
688 
512 
Total revenues
2,655 
2,410 
5,223 
4,831 
Benefits and expenses:
 
 
 
 
Benefits and other changes in policy reserves
1,672 
1,340 
3,081 
2,655 
Interest credited
204 
211 
405 
424 
Acquisition and operating expenses, net of deferrals
514 
499 
1,014 
974 
Amortization of deferred acquisition costs and intangibles
197 
179 
382 
363 
Interest expense
134 
109 
261 
224 
Total benefits and expenses
2,721 
2,338 
5,143 
4,640 
Income (loss) before income taxes
(66)
72 
80 
191 
Provision (benefit) for income taxes
(6)
(5)
24 
(98)
Net income (loss)
(60)
77 
56 
289 
Less: net income attributable to noncontrolling interests
36 
35 
70 
69 
Net income (loss) available to Genworth Financial, Inc.'s common stockholders
(96)
42 
(14)
220 
Net income available to Genworth Financial, Inc.'s common stockholders per common share:
 
 
 
 
Basic
$ (0.20)1
$ 0.09 1
$ (0.03)1
$ 0.45 1
Diluted
$ (0.20)1
$ 0.08 1
$ (0.03)1
$ 0.45 1
Weighted-average common shares outstanding:
 
 
 
 
Basic
490.6 
489.1 
490.4 
489.0 
Diluted
490.6 2
494.2 2
490.4 2
493.9 2
Supplemental disclosures:
 
 
 
 
Total other-than-temporary impairments
(28)
(24)
(59)
(101)
Portion of other-than-temporary impairments included in other comprehensive income (loss)
(27)
(3)
(30)
Net other-than-temporary impairments
(26)
(51)
(62)
(131)
Other investment gains (losses)
(14)
(88)
(6)
(78)
Total net investment gains (losses)
$ (40)
$ (139)
$ (68)
$ (209)
[2] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, we were required to use basic weighted-average common shares outstanding in the calculation for the three and six months ended June 30, 2011 diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 3.7 million and 4.0 million, respectively, would have been antidilutive to the calculation. If we had not incurred a net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, 2011, dilutive potential common shares would have been 494.3 million and 494.4 million, respectively.
Condensed Consolidated Balance Sheets (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Assets
 
 
Fixed maturity securities available-for-sale, at fair value
$ 56,221 
$ 55,183 
Equity securities available-for-sale, at fair value
374 
332 
Commercial mortgage loans
6,432 
6,718 
Restricted commercial mortgage loans related to securitization entities
457 
507 
Policy loans
1,542 
1,471 
Other invested assets
3,301 
3,854 
Restricted other invested assets related to securitization entities ($378 and $370 at fair value)
379 
372 
Total investments
68,706 
68,437 
Cash and cash equivalents
2,831 
3,132 
Accrued investment income
693 
733 
Deferred acquisition costs
7,362 
7,256 
Intangible assets
692 
741 
Goodwill
1,333 
1,329 
Reinsurance recoverable
16,999 
17,191 
Other assets
988 
810 
Deferred tax asset
1,291 
1,100 
Separate account assets
11,452 
11,666 
Total assets
112,347 
112,395 
Liabilities and stockholders' equity
 
 
Future policy benefits
31,177 
30,717 
Policyholder account balances
26,115 
26,978 
Liability for policy and contract claims
7,327 1
6,933 1
Unearned premiums
4,563 
4,541 
Other liabilities ($145 and $150 other liabilities related to securitization entities)
5,637 
6,085 
Borrowings related to securitization entities ($58 and $51 at fair value)
452 
494 
Non-recourse funding obligations
3,374 
3,437 
Long-term borrowings
4,755 
4,952 
Deferred tax liability
1,937 
1,621 
Separate account liabilities
11,452 
11,666 
Total liabilities
96,789 
97,424 
Commitments and contingencies
 
 
Stockholders' equity:
 
 
Class A common stock, $0.001 par value; 1.5 billion shares authorized; 579 million and 578 million shares issued as of June 30, 2011 and December 31, 2010, respectively; 491 million and 490 million shares outstanding as of June 30, 2011 and December 31, 2010, respectively
Additional paid-in capital
12,110 
12,095 
Net unrealized investment gains (losses):
 
 
Net unrealized gains (losses) on securities not other-than-temporarily impaired
352 
21 
Net unrealized gains (losses) on other-than-temporarily impaired securities
(116)
(121)
Net unrealized investment gains (losses)
236 
(100)
Derivatives qualifying as hedges
943 
924 
Foreign currency translation and other adjustments
883 
668 
Total accumulated other comprehensive income (loss)
2,062 
1,492 
Retained earnings
2,959 
2,973 
Treasury stock, at cost (88 million shares as of June 30, 2011 and December 31, 2010)
(2,700)
(2,700)
Total Genworth Financial, Inc.'s stockholders' equity
14,432 
13,861 
Noncontrolling interests
1,126 
1,110 
Total stockholders' equity
15,558 
14,971 
Total liabilities and stockholders' equity
$ 112,347 
$ 112,395 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data
Jun. 30, 2011
Dec. 31, 2010
Condensed Consolidated Balance Sheets
 
 
Restricted other invested assets related to securitization entities
$ 378 1
$ 370 
Other liabilities related to securitization entities
145 
150 
Borrowings related to securitization entities
$ 58 
$ 51 
Class A common stock, par value
$ 0.001 
$ 0.001 
Class A common stock, shares authorized
1,500,000,000 
1,500,000,000 
Class A common stock, shares issued
579,000,000 
578,000,000 
Class A common stock, shares outstanding
491,000,000 
490,000,000 
Treasury stock, shares
88,000,000 
88,000,000 
Condensed Consolidated Statements of Changes in Stockholders' Equity (USD $)
In Millions
Common Stock [Member]
Additional Paid-in Capital [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Treasury Stock, at Cost [Member]
Total Genworth Financial, Inc.'s Stockholders' Equity [Member]
Noncontrolling Interests [Member]
Total
Balances at Dec. 31, 2009
$ 1 
$ 12,034 
$ (164)
$ 3,105 
$ (2,700)
$ 12,276 
$ 1,074 
$ 13,350 
Cumulative effect of change in accounting, net of taxes and other adjustments
 
 
91 
(104)
 
(13)
 
(13)
Comprehensive income (loss):
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
220 
 
220 
69 
289 
Net unrealized gains (losses) on securities not other-than-temporarily impaired
 
 
1,268 
 
 
1,268 
1,277 
Net unrealized gains (losses) on other-than-temporarily impaired securities
 
 
68 
 
 
68 
 
68 
Derivatives qualifying as hedges
 
 
360 
 
 
360 
 
360 
Foreign currency translation and other adjustments
 
 
(292)
 
 
(292)
(15)
(307)
Total comprehensive income (loss)
 
 
 
 
 
 
 
1,687 
Dividends to noncontrolling interests
 
 
 
 
 
 
(21)
(21)
Stock-based compensation expense and exercises and other
 
24 
 
 
 
24 
 
24 
Other capital transactions
 
20 
 
 
 
20 
 
20 
Balances at Jun. 30, 2010
12,078 
1,331 
3,221 
(2,700)
13,931 
1,116 
15,047 
Balances at Dec. 31, 2010
12,095 
1,492 
2,973 
(2,700)
13,861 
1,110 
14,971 
Repurchase of subsidiary shares
 
 
 
 
 
 
(71)
(71)
Comprehensive income (loss):
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
(14)
 
(14)
70 
56 
Net unrealized gains (losses) on securities not other-than-temporarily impaired
 
 
331 
 
 
331 
336 
Net unrealized gains (losses) on other-than-temporarily impaired securities
 
 
 
 
 
Derivatives qualifying as hedges
 
 
19 
 
 
19 
 
19 
Foreign currency translation and other adjustments
 
 
215 
 
 
215 
36 
251 
Total comprehensive income (loss)
 
 
 
 
 
 
 
667 
Dividends to noncontrolling interests
 
 
 
 
 
 
(24)
(24)
Stock-based compensation expense and exercises and other
 
15 
 
 
 
15 
 
15 
Balances at Jun. 30, 2011
$ 1 
$ 12,110 
$ 2,062 
$ 2,959 
$ (2,700)
$ 14,432 
$ 1,126 
$ 15,558 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions
6 Months Ended
Jun. 30,
2011
2010
Cash flows from operating activities:
 
 
Net income
$ 56 
$ 289 
Adjustments to reconcile net income to net cash from operating activities:
 
 
Amortization of fixed maturity discounts and premiums and limited partnerships
(53)
Net investment losses (gains)
68 
209 
Charges assessed to policyholders
(327)
(233)
Acquisition costs deferred
(449)
(392)
Amortization of deferred acquisition costs and intangibles
382 
363 
Deferred income taxes
(85)
(173)
Net increase in trading securities, held-for-sale investments and derivative instruments
79 
119 
Stock-based compensation expense
16 
23 
Change in certain assets and liabilities:
 
 
Accrued investment income and other assets
(83)
24 
Insurance reserves
1,281 
1,208 
Current tax liabilities
(211)
Other liabilities and other policy-related balances
(48)
(674)
Net cash from operating activities
842 
557 
Cash flows from investing activities:
 
 
Fixed maturity securities
3,069 
2,057 
Commercial mortgage loans
411 
263 
Restricted commercial mortgage loans related to securitization entities
49 
27 
Proceeds from sales of investments:
 
 
Fixed maturity and equity securities
1,893 
2,393 
Purchases and originations of investments:
 
 
Fixed maturity and equity securities
(5,183)
(6,867)
Commercial mortgage loans
(142)
(23)
Other invested assets, net
(28)
1,491 
Policy loans, net
(71)
(64)
Payments for businesses purchased, net of cash acquired
(4)
 
Net cash from investing activities
(6)
(723)
Cash flows from financing activities:
 
 
Deposits to universal life and investment contracts
1,221 
1,174 
Withdrawals from universal life and investment contracts
(2,123)
(1,734)
Short-term borrowings and other, net
137 
(285)
Redemption and repurchase of non-recourse funding obligations
(45)
(6)
Proceeds from the issuance of long-term debt
545 
660 
Repayment and repurchase of long-term debt
(760)
 
Repayment of borrowings related to securitization entities
(49)
(31)
Repurchase of subsidiary shares
(71)
 
Dividends paid to noncontrolling interests
(24)
(21)
Net cash from financing activities
(1,169)
(243)
Effect of exchange rate changes on cash and cash equivalents
32 
(7)
Net change in cash and cash equivalents
(301)
(416)
Cash and cash equivalents at beginning of period
3,132 
5,002 
Cash and cash equivalents at end of period
$ 2,831 
$ 4,586 
Formation of Genworth and Basis of Presentation
Formation of Genworth and Basis of Presentation

(1) Formation of Genworth and Basis of Presentation

Genworth Financial, Inc. ("Genworth") was incorporated in Delaware on October 23, 2003. The accompanying condensed financial statements include on a consolidated basis the accounts of Genworth and our affiliate companies in which we hold a majority voting interest or where we are the primary beneficiary of a variable interest entity, which we refer to as the "Company," "we," "us" or "our" unless the context otherwise requires. All intercompany accounts and transactions have been eliminated in consolidation.

We have the following three operating segments:

 

  Retirement and Protection. We offer and/or manage a variety of protection, wealth management and retirement income products. Our primary insurance products include life and long-term care insurance. Additionally, we offer other Medicare supplement insurance products, as well as care coordination services for our long-term care policyholders. Our wealth management and retirement income products include: a variety of managed account programs and advisor services, financial planning services and fixed deferred and immediate individual annuities. We previously offered variable deferred annuities and group variable annuities offered through retirement plans.

 

  International. We offer mortgage and lifestyle protection insurance products and related services in multiple markets. We are a leading provider of mortgage insurance products in Canada, Australia, Mexico and multiple European countries. Our products predominantly insure prime-based, individually underwritten residential mortgage loans, also known as flow mortgage insurance. On a limited basis, we also provide mortgage insurance on a structured, or bulk, basis that aids in the sale of mortgages to the capital markets and helps lenders manage capital and risk. We are a leading provider of protection coverages primarily associated with certain financial obligations (referred to as lifestyle protection) in multiple European countries. These lifestyle protection insurance products primarily help consumers meet specified payment obligations should they become unable to pay due to accident, illness, involuntary unemployment, disability or death.

 

  U.S. Mortgage Insurance. In the United States, we offer mortgage insurance products predominantly insuring prime-based, individually underwritten residential mortgage loans, also known as flow mortgage insurance. We selectively provide mortgage insurance on a structured, or bulk, basis with essentially all of our bulk writings prime-based. Additionally, we offer services, analytical tools and technology that enable lenders to operate efficiently and manage capital and risk.

We also have Corporate and Other activities which include debt financing expenses that are incurred at our holding company level, unallocated corporate income and expenses, eliminations of inter-segment transactions and the results of non-strategic products that are managed outside of our operating segments. Our non-strategic products include our institutional and corporate-owned life insurance products. Institutional products consist of: funding agreements, funding agreements backing notes ("FABNs") and guaranteed investment contracts ("GICs").

In January 2011, we discontinued new sales of retail and group variable annuities while continuing to service our existing blocks of business. We continue to offer fixed annuities.

The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ from those estimates. These condensed consolidated financial statements include all adjustments considered necessary by management to present a fair statement of the financial position, results of operations and cash flows for the periods presented. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. The condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and related notes contained in our 2010 Annual Report on Form 10-K. Certain prior year amounts have been reclassified to conform to the current year presentation.

Accounting Pronouncements
Accounting Pronouncements

(2) Accounting Pronouncements

Recently Adopted

On January 1, 2011, we adopted new accounting guidance related to goodwill impairment testing when a reporting unit's carrying value is zero or negative. This guidance did not impact our consolidated financial statements upon adoption, as all of our reporting units with goodwill balances have positive carrying values.

On January 1, 2011, we adopted new accounting guidance related to how investments held through separate accounts affect an insurer's consolidation analysis of those investments. The adoption of this new accounting guidance did not have a material impact on our consolidated financial statements.

On January 1, 2011, we adopted new accounting guidance related to additional disclosures about purchases, sales, issuances and settlements in the rollforward of Level 3 fair value measurements. The adoption of this new accounting guidance did not have a material impact on our consolidated financial statements.

Not Yet Adopted

In June 2011, the Financial Accounting Standards Board (the "FASB") issued new accounting guidance requiring presentation of the components of net income (loss), the components of other comprehensive income (loss) ("OCI") and total comprehensive income either in a single continuous statement of comprehensive income (loss) or in two separate but consecutive statements. This new accounting guidance is effective for us on January 1, 2012. We do not expect the adoption of this accounting guidance to have a material impact on our consolidated financial results.

In May 2011, the FASB issued new accounting guidance for fair value measurements. This new accounting guidance clarifies existing fair value measurement requirements and changes certain fair value measurement principles and disclosure requirements that will be effective for us on January 1, 2012. We have not yet determined the impact this accounting guidance will have on our consolidated financial statements.

In April 2011, the FASB issued new accounting guidance for troubled debt restructurings. This new accounting guidance and related disclosures will be effective for us on July 1, 2011. The adoption of this accounting guidance will not have a material impact on our consolidated financial statements.

In April 2011, the FASB issued new accounting guidance for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. The new guidance removes the requirement to consider a transferor's ability to fulfill its contractual rights from the criteria when determining effective control and is effective, for us, prospectively to any transactions occurring on or after January 1, 2012. We do not expect the adoption of this accounting guidance to have a material impact on our consolidated financial statements.

In October 2010, the FASB issued new accounting guidance related to accounting for costs associated with acquiring or renewing insurance contracts. This new accounting guidance will be effective for us on January 1, 2012. When adopted, we expect to defer fewer costs. The new guidance is effective prospectively with retrospective adoption allowed. We intend to adopt this new guidance retrospectively. We have not yet determined the impact this accounting guidance will have on our consolidated financial statements.

Earnings (Loss) Per Share
Earnings Per Share

(3) Earnings (Loss) Per Share

Basic and diluted earnings (loss) per share are calculated by dividing each income (loss) category presented below by the weighted-average basic and diluted shares outstanding for the periods indicated:

 

Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions, except per share amounts)

       2011             2010          2011     2010  

Net income (loss)

   $ (60   $ 77       $ 56      $ 289   

Less: net income attributable to noncontrolling interests

     36        35         70        69   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders

   $ (96   $ 42       $ (14   $ 220   
                                 

Basic per common share:

         

Net income (loss)

   $ (0.12   $ 0.16       $ 0.11      $ 0.59   

Less: net income attributable to noncontrolling interests

     0.07        0.07         0.14        0.14   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders (1)

   $ (0.20   $ 0.09       $ (0.03   $ 0.45   
                                 

Diluted per common share:

         

Net income (loss)

   $ (0.12   $ 0.16       $ 0.11      $ 0.59   

Less: net income attributable to noncontrolling interests

     0.07        0.07         0.14        0.14   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders (1)

   $ (0.20   $ 0.08       $ (0.03   $ 0.45   
                                 

Weighted-average shares used in basic earnings per common share calculations

     490.6        489.1         490.4        489.0   

Potentially dilutive securities:

         

Stock options, restricted stock units and stock appreciation rights

     —          5.1         —          4.9   
                                 

Weighted-average shares used in diluted earnings per common share calculations (2)

     490.6        494.2         490.4        493.9   
                                 

(1) 

May not total due to whole number calculation.

(2) 

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, we were required to use basic weighted-average common shares outstanding in the calculation for the three and six months ended June 30, 2011 diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 3.7 million and 4.0 million, respectively, would have been antidilutive to the calculation. If we had not incurred a net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, 2011, dilutive potential common shares would have been 494.3 million and 494.4 million, respectively.

Investments
Investments

(4) Investments

(a) Net Investment Income

Sources of net investment income were as follows for the periods indicated:

 

                                 
     Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Fixed maturity securities—taxable

   $ 693      $ 646      $ 1,363      $ 1,272   

Fixed maturity securities—non-taxable

     10        16        21        32   

Commercial mortgage loans

     92        99        184        203   

Restricted commercial mortgage loans related to securitization entities

     9        10        19        20   

Equity securities

     10        5        13        7   

Other invested assets

     55        39        89        37   

Restricted other invested assets related to securitization entities

     —          —          —          1   

Policy loans

     30        28        59        55   

Cash, cash equivalents and short-term investments

     6        4        12        9   
                                  

Gross investment income before expenses and fees

     905        847        1,760        1,636   

Expenses and fees

     (24     (24     (49     (48
                                  

Net investment income

   $ 881      $ 823      $ 1,711      $ 1,588   
                                  

(b) Net Investment Gains (Losses)

The following table sets forth net investment gains (losses) for the periods indicated:

 

                                 
     Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

        2011              2010           2011         2010    

Available-for-sale securities:

                                

Realized gains

   $ 25      $ 53      $ 54      $ 76   

Realized losses

     (34     (36     (65     (74
    

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on available-for-sale securities

     (9     17        (11     2   
    

 

 

   

 

 

   

 

 

   

 

 

 

Impairments:

                                

Total other-than-temporary impairments

     (28     (24     (59     (101

Portion of other-than-temporary impairments included in other comprehensive income (loss)

     2        (27     (3     (30
    

 

 

   

 

 

   

 

 

   

 

 

 

Net other-than-temporary impairments

     (26     (51     (62     (131
    

 

 

   

 

 

   

 

 

   

 

 

 

Trading securities

     14        (4     25        2   

Commercial mortgage loans

     2        (18     1        (22

Net gains (losses) related to securitization entities

     (5     (47     5        (36

Derivative instruments (1)

     (15     (38     (25     (46

Other

     (1     2        (1     22   
    

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

   $ (40   $ (139   $ (68   $ (209
    

 

 

   

 

 

   

 

 

   

 

 

 

(1) 

See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).

 

We generally intend to hold securities in unrealized loss positions until they recover. However, from time to time, our intent on an individual security may change, based upon market or other unforeseen developments. In such instances, we sell securities in the ordinary course of managing our portfolio to meet diversification, credit quality, yield and liquidity requirements. If a loss is recognized from a sale subsequent to a balance sheet date due to these unexpected developments, the loss is recognized in the period in which we determined that we have the intent to sell the securities or it is more likely than not that we will be required to sell the securities prior to recovery. The aggregate fair value of securities sold at a loss during the three months ended June 30, 2011 and 2010 was $294 million and $858 million, respectively, which was approximately 91% and 96%, respectively, of book value. The aggregate fair value of securities sold at a loss during the six months ended June 30, 2011 and 2010 was $691 million and $1,416 million, respectively, which was approximately 93% and 95%, respectively, of book value.

 

The following represents the activity for credit losses recognized in net income (loss) on debt securities where an other-than-temporary impairment was identified and a portion of other-than-temporary impairments was included in OCI as of or for the periods indicated:

 

                                 
     As of or for the
three months ended
June 30,
    As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Beginning balance

   $ 755      $ 1,025      $ 784      $ 1,059   

Additions:

                                

Other-than-temporary impairments not previously recognized

     1        11        4        31   

Increases related to other-than-temporary impairments previously recognized

     17        32        48        78   

Reductions:

                                

Securities sold, paid down or disposed

     (47     (90     (110     (190
                                  

Ending balance

   $ 726      $ 978      $ 726      $ 978   
                                  

(c) Unrealized Investment Gains and Losses

Net unrealized gains and losses on available-for-sale investment securities reflected as a separate component of accumulated other comprehensive income (loss) were as follows as of the dates indicated:

 

                 

(Amounts in millions)

   June 30, 2011     December 31, 2010  

Net unrealized gains (losses) on investment securities:

                

Fixed maturity securities

   $ 1,141      $ 511   

Equity securities

     21        9   

Other invested assets

     (24     (22
                  

Subtotal

     1,138        498   

Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves

     (694     (583

Income taxes, net

     (153     35   
                  

Net unrealized investment gains (losses)

     291        (50

Less: net unrealized investment gains (losses) attributable to noncontrolling interests

     55        50   
                  

Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.

   $ 236      $ (100
                  

The change in net unrealized gains (losses) on available-for-sale securities reported in accumulated other comprehensive income (loss) was as follows as of or for the periods indicated:

 

                 
     As of or for the
three months ended
June 30,
 

(Amounts in millions)

   2011     2010  

Beginning balance

   $ (37   $ (860

Unrealized gains (losses) arising during the period:

                

Unrealized gains (losses) on investment securities

     555        1,498   

Adjustment to deferred acquisition costs

     (36     (80

Adjustment to present value of future profits

     (15     (51

Adjustment to sales inducements

     (3     (10

Adjustment to benefit reserves

     (94     —     

Provision for income taxes

     (142     (480
                  

Change in unrealized gains (losses) on investment securities

     265        877   

Reclassification adjustments to net investment (gains) losses, net of taxes of $(13) and $(11)

     22        22   
                  

Change in net unrealized investment gains (losses)

     287        899   

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     14        10   
                  

Ending balance

   $ 236      $ 29   
                  

 

                 
     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2011     2010  

Beginning balance

   $ (100   $ (1,398

Cumulative effect of change in accounting

             91   

Unrealized gains (losses) arising during the period:

                

Unrealized gains (losses) on investment securities

     567        2,261   

Adjustment to deferred acquisition costs

     (57     (193

Adjustment to present value of future profits

     (16     (81

Adjustment to sales inducements

     (7     (26

Adjustment to benefit reserves

     (31     —     

Provision for income taxes

     (162     (700
                  

Change in unrealized gains (losses) on investment securities

     294        1,261   

Reclassification adjustments to net investment (gains) losses, net of taxes of $(26) and $(45)

     47        84   
                  

Change in net unrealized investment gains (losses)

     341        1,436   

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     5        9   
                  

Ending balance

   $ 236      $ 29   
                  

 

 

        (d) Fixed Maturity and Equity Securities

         As of June 30, 2011, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

 

                                                 

(Amounts in millions)

   Amortized
cost or
cost
     Gross unrealized gains      Gross unrealized losses     Fair
value
 
      Not  other-than-
temporarily
impaired
     Other-than-
temporarily
impaired
     Not  other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
   

Fixed maturity securities:

                                                   

U.S. government, agencies and government-sponsored enterprises

   $ 3,548       $ 153       $ —         $ (19   $ —        $ 3,682   

Tax-exempt

     940         19         —           (94     —          865   

Government—non-U.S.

     2,265         128         —           (4     —          2,389   

U.S. corporate

     23,081         1,260         13         (307     —          24,047   

Corporate—non-U.S.

     14,038         530         —           (139     (1     14,428   

Residential mortgage-backed

     5,252         174         15         (268     (190     4,983   

Commercial mortgage-backed

     3,767         135         6         (153     (34     3,721   

Other asset-backed

     2,172         22         —           (86     (2     2,106   
                                                     

Total fixed maturity securities

     55,063         2,421         34         (1,070     (227     56,221   

Equity securities

     352         25         —           (3     —          374   
                                                     

Total available-for-sale securities

   $ 55,415       $ 2,446       $ 34       $ (1,073   $ (227   $ 56,595   
                                                     

As of December 31, 2010, the amortized cost or cost, gross unrealized gains (losses) and fair value of our fixed maturity and equity securities classified as available-for-sale were as follows:

 

                                                 

(Amounts in millions)

   Amortized
cost or
cost
     Gross unrealized gains      Gross unrealized losses     Fair
value
 
      Not  other-than-
temporarily
impaired
     Other-than-
temporarily
impaired
     Not  other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
   

Fixed maturity securities:

                                                   

U.S. government, agencies and government-sponsored enterprises

   $ 3,568       $ 145       $ —         $ (8   $ —        $ 3,705   

Tax-exempt

     1,124         19         —           (113     —          1,030   

Government—non-U.S.

     2,257         118         —           (6     —          2,369   

U.S. corporate

     23,282         1,123         10         (448     —          23,967   

Corporate—non-U.S.

     13,180         485         —           (167     —          13,498   

Residential mortgage-backed

     4,821         116         18         (304     (196     4,455   

Commercial mortgage-backed

     3,936         132         6         (286     (45     3,743   

Other asset-backed

     2,494         18         —           (94     (2     2,416   
                                                     

Total fixed maturity securities

     54,662         2,156         34         (1,426     (243     55,183   

Equity securities

     323         13         —           (4     —          332   
                                                     

Total available-for-sale securities

   $ 54,985       $ 2,169       $ 34       $ (1,430   $ (243   $ 55,515   
                                                     

 

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of June 30, 2011:

 

                                                                         
    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(1)
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(2)
    Number of
securities
 

Description of Securities

                                                                       

Fixed maturity securities:

                                                                       

U.S. government, agencies and government-sponsored enterprises

  $ 1,002      $ (19     43      $ —        $ —          —        $ 1,002      $ (19     43   

Tax-exempt

    114        (3     31        253        (91     88        367        (94     119   

Government—non-U.S.

    189        (3     58        11        (1     5        200        (4     63   

U.S. corporate

    2,933        (94     337        1,712        (213     150        4,645        (307     487   

Corporate—non-U.S.

    1,896        (65     276        854        (75     78        2,750        (140     354   

Residential mortgage-backed

    450        (19     92        884        (439     373        1,334        (458     465   

Commercial mortgage-backed

    361        (17     51        1,034        (170     180        1,395        (187     231   

Other asset-backed

    113        (5     20        343        (83     39        456        (88     59   
                                                                         

Subtotal, fixed maturity securities

    7,058        (225     908        5,091        (1,072     913        12,149        (1,297     1,821   

Equity securities

    83        (2     54        10        (1     10        93        (3     64   
                                                                         

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                         

% Below cost—fixed maturity securities:

                                                                       

<20% Below cost

  $ 6,969      $ (190     883      $ 3,966      $ (354     544      $ 10,935      $ (544     1,427   

20%-50% Below cost

    89        (34     20        986        (432     249        1,075        (466     269   

>50% Below cost

    —          (1     5        139        (286     120        139        (287     125   
                                                                         

Total fixed maturity securities

    7,058        (225     908        5,091        (1,072     913        12,149        (1,297     1,821   
                                                                         

% Below cost—equity securities:

                                                                       

<20% Below cost

    78        (1     53        10        (1     10        88        (2     63   

20%-50% Below cost

    5        (1     1        —          —          —          5        (1     1   

>50% Below cost

    —          —          —          —          —          —          —          —          —     
                                                                         

Total equity securities

    83        (2     54        10        (1     10        93        (3     64   
                                                                         

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                         

Investment grade

  $ 6,837      $ (217     863      $ 3,616      $ (505     527      $ 10,453      $ (722     1,390   

Below investment grade (3)

    304        (10     99        1,485        (568     396        1,789        (578     495   
                                                                         

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                         

(1) 

Amounts included $222 million of unrealized losses on other-than-temporarily impaired securities.

(2) 

Amounts included $227 million of unrealized losses on other-than-temporarily impaired securities.

(3) 

Amounts that have been in a continuous loss position for 12 months or more included $208 million of unrealized losses on other-than-temporarily impaired securities.

 

As indicated in the table above, the majority of the securities in a continuous unrealized loss position for less than 12 months were investment grade and less than 20% below cost. These unrealized losses were primarily attributable to credit spreads that have widened since acquisition for corporate securities across various industry sectors, including finance and insurance as well as transportation. For securities that have been in a continuous unrealized loss for less than 12 months, the average fair value percentage below cost was approximately 3% as of June 30, 2011.

Fixed Maturity Securities In A Continuous Unrealized Loss Position For 12 Months Or More

Of the $354 million of unrealized losses on fixed maturity securities in a continuous unrealized loss for 12 months or more that were less than 20% below cost, the weighted-average rating was "BBB" and approximately 75% of the unrealized losses were related to investment grade securities as of June 30, 2011. These unrealized losses were attributable to the widening of credit spreads for these securities since acquisition, primarily associated with corporate securities in the finance and insurance sector as well as mortgaged-back and asset-backed securities. The average fair value percentage below cost for these securities was approximately 8% as of June 30, 2011. See below for additional discussion related to fixed maturity securities that have been in a continuous loss position for 12 months or more with a fair value that was more than 20% below cost.

The following tables present the concentration of gross unrealized losses and fair values of fixed maturity securities that were more than 20% below cost and in a continuous loss position for 12 months or more by asset class as of June 30, 2011:

 

                                                                 
    Investment Grade  
    20% to 50%     Greater than 50%  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
 

Fixed maturity securities:

                                                               

Tax-exempt

  $ 184      $ (78     6     55      $ —        $ —          —       —     

Government—non-U.S.

    2        (1     —          1        —          —          —          —     

U.S. corporate

    77        (30     2        4        14        (26     2        1   

Corporate—non-U.S.

    66        (20     2        4        —          —          —          —     

Structured securities:

                                                               

Residential mortgage-backed

    56        (23     2        21        12        (27     2        14   

Commercial mortgage-backed

    80        (30     2        9        2        (3     —          5   

Other asset-backed

    4        (1     —          1       1        (1     —          1   
                                                                 

Total structured securities

    140        (54     4        31        15        (31     2        20   
                                                                 

Total

  $ 469      $ (183     14     95      $ 29      $ (57     4     21   
                                                                 

 

                                                                 
    Below Investment Grade  
    20% to 50%     Greater than 50%  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
 

Fixed maturity securities:

                                                               

Tax-exempt

  $ —        $ —          —       —        $ —        $ —          —       —     

U.S. corporate

    14        (6     —          2        —          —          —          —     

Structured securities:

                                                               

Residential mortgage-backed

    342        (168     13       124        82        (184     14        81   

Commercial mortgage-backed

    61        (22     2        23        17        (33     3        16   

Other asset-backed

    100        (53     4        5        11        (12     1        2   
                                                                 

Total structured securities

    503        (243     19        152        110        (229     18        99   
                                                                 

Total

  $ 517      $ (249     19     154      $ 110      $ (229     18     99   
                                                                 

For all securities in an unrealized loss position, we expect to recover the amortized cost based on our estimate of cash flows to be collected. We do not intend to sell and it is not more likely than not that we will be required to sell these securities prior to recovering our amortized cost. See below for further discussion of gross unrealized losses by asset class.

Tax-Exempt Securities

As indicated in the table above, $78 million of gross unrealized losses were related to tax-exempt securities that have been in a continuous unrealized loss position for more than 12 months and were more than 20% below cost. The unrealized losses for tax-exempt securities represent municipal bonds that were diversified by state as well as municipality or political subdivision within those states. Of these tax-exempt securities, the average unrealized loss was approximately $1 million which represented an average of 30% below cost. The unrealized losses primarily related to widening of credit spreads on these securities since acquisition as a result of higher risk premiums being attributed to these securities from uncertainty in many political subdivisions related to special revenues supporting these obligations as well as certain securities having longer duration that may be viewed as less desirable in the current market place. Additionally, the fair value of certain of these securities has been negatively impacted as a result of having certain bond insurers associated with the security. In our analysis of impairment for these securities, we expect to recover our amortized cost from the cash flows of the underlying securities before any guarantee support. However, the existence of these guarantees may negatively impact the value of the debt security in certain instances. We performed an analysis of these securities and the underlying activities that are expected to support the cash flows and determined we expect to recover our amortized cost.

 

Corporate Debt Securities

The following tables present the concentration of gross unrealized losses and fair values related to corporate debt fixed maturity securities that were more than 20% below cost and in a continuous loss position for 12 months or more by industry as of June 30, 2011:

 

                                                                 
     Investment Grade  
     20% to 50%      Greater than 50%  

(Dollar amounts in millions)

   Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
     Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
 

Industry:

                                                                   

Finance and insurance

   $ 139       $ (49     4     7       $ —         $ —          —       —     

Transportation

     —           —          —          —           14         (26     2        1   

Other

     4         (1     —          1         —           —          —          —     
                                                                     

Total

   $ 143       $ (50     4     8       $ 14       $ (26     2     1   
                                                                     
   
     Below Investment Grade  
     20% to 50%      Greater than 50%  

(Dollar amounts in millions)

   Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
     Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
 

Industry:

                                                                   

Finance and insurance

   $ 14       $ (6     —       2       $ —         $ —          —       —     

Consumer – cyclical

     —           —          —          —           —           —          —          —     

Transportation

     —           —          —          —           —           —          —          —     
                                                                     

Total

   $ 14       $ (6     —       2       $ —         $ —          —       —     
                                                                     

 

         Of the total unrealized losses of $82 million for corporate fixed maturity securities presented in the preceding tables, $55 million, or 67%, of the unrealized losses related to issuers in the finance and insurance sector that were 26% below cost on average. Given the current market conditions, including current financial industry events and uncertainty around global economic conditions, the fair value of these debt securities has declined due to credit spreads that have widened since acquisition. In our examination of these securities, we considered all available evidence, including the issuers' financial condition and current industry events to develop our conclusion on the amount and timing of the cash flows expected to be collected. Based on this evaluation, we determined that the unrealized losses on these debt securities represented temporary impairments as of June 30, 2011. Of the $55 million of unrealized losses related to the finance and insurance industry, $28 million related to financial hybrid securities on which a debt impairment model was employed. Most of our hybrid securities retained a credit rating of investment grade. The fair value of these hybrid securities has been impacted by credit spreads that have widened since acquisition and reflect uncertainty surrounding the extent and duration of government involvement, potential capital restructuring of these institutions, and continued but diminishing risk that income payments may be deferred. We continue to receive our contractual payments and expect to fully recover our amortized cost.

          As presented in the table above, we also had one security related to the transportation industry that had a total unrealized loss of $26 million that was 65% below cost as of June 30, 2011. The issuer of this security has diverse holdings in long-term franchises on toll roads, bridges and tunnels in economically important regions. Our security holding represented a senior interest that benefits from structural enhancements that protect our rights to the issuer's cash flows. In our evaluation of the issuer, we believed there were sufficient assets and cash flows for the issuer to continue to make their contractual payments and that resulted in our conclusion that we will recover the amortized cost despite the fair value of this security being greater than 50% below cost.

We expect that our investments in corporate securities will continue to perform in accordance with our expectations about the amount and timing of estimated cash flows. Although we do not anticipate such events, it is at least reasonably possible that issuers of our investments in corporate securities will perform worse than current expectations. Such events may lead us to recognize write-downs within our portfolio of corporate securities in the future.

Structured Securities

Of the $557 million of unrealized losses related to structured securities that have been in an unrealized loss position for 12 months or more and were more than 20% below cost, $192 million related to other-than-temporarily-impaired securities where the unrealized losses represented the non-credit portion of the impairment. The extent and duration of the unrealized loss position on our structured securities is due to the ongoing concern and uncertainty about the residential and commercial real estate market and unemployment, resulting in credit spreads that have widened since acquisition. Additionally, the fair value of certain structured securities has been significantly impacted from high risk premiums being incorporated into the valuation as a result of the amount of potential losses that may be absorbed by the security in the event of additional deterioration in the housing market.

While we considered the length of time each security had been in an unrealized loss position, the extent of the unrealized loss position and any significant declines in fair value subsequent to the balance sheet date in our evaluation of impairment for each of these individual securities, the primary factor in our evaluation of impairment is the expected performance for each of these securities. Our evaluation of expected performance is based on the historical performance of the associated securitization trust as well as the historical performance of the underlying collateral. Our examination of the historical performance of the securitization trust included consideration of the following factors for each class of securities issued by the trust: i) the payment history, including failure to make scheduled payments; ii) current payment status; iii) current and historical outstanding balances; iv) current levels of subordination and losses incurred to-date; and v) characteristics of the underlying collateral. Our examination of the historical performance of the underlying collateral included: i) historical default rates, delinquency rates, voluntary and involuntary prepayments and severity of losses, including recent trends in this information; ii) current payment status; iii) loan to collateral value ratios, as applicable; iv) vintage; and v) other underlying characteristics such as current financial condition.

We used our assessment of the historical performance of both the securitization trust and the underlying collateral for each security, along with third-party sources, when available, to develop our best estimate of cash flows expected to be collected. These estimates reflect projections for future delinquencies, prepayments, defaults and losses for the assets that collateralize the securitization trust and are used to determine the expected cash flows for our security, based on the payment structure of the trust. Our projection of expected cash flows is primarily based on the expected performance of the underlying assets that collateralize the securitization trust and is not directly impacted by the rating of our security. While we consider the rating of the security as an indicator of the financial condition of the issuer, this factor does not have a significant impact on our expected cash flows for each security. In limited circumstances, our expected cash flows include expected payments from reliable financial guarantors where we believe the financial guarantor will have sufficient assets to pay claims under the financial guarantee when the cash flows from the securitization trust are not sufficient to make scheduled payments. We then discount the expected cash flows using the effective yield of each security to determine the present value of expected cash flows.

Based on this evaluation, the present value of expected cash flows was greater than or equal to the amortized cost for each security. Accordingly, we determined that the unrealized losses on each of our structured securities represented temporary impairments as of June 30, 2011.

Despite the considerable analysis and rigor employed on our structured securities, it is at least reasonably possible that the underlying collateral of these investments will perform worse than current market expectations. Such events may lead to adverse changes in cash flows on our holdings of structured securities and future write-downs within our portfolio of structured securities.

 

The following table presents the gross unrealized losses and fair values of our investment securities, aggregated by investment type and length of time that individual investment securities have been in a continuous unrealized loss position, as of December 31, 2010:

 

                                                                         
     Less than 12 months      12 months or more      Total  

(Dollar amounts in millions)

   Fair
value
     Gross
unrealized
losses
    Number  of
securities
     Fair
value
     Gross
unrealized
losses (1)
    Number  of
securities
     Fair
value
     Gross
unrealized
losses (2)
    Number  of
securities
 

Description of Securities

                                                                             

Fixed maturity securities:

                                                                             

U.S. government, agencies and government-sponsored enterprises

   $ 545       $ (8     36       $ —         $ —          —         $ 545       $ (8     36   

Tax-exempt

     285         (12     101         244         (101     90         529         (113     191   

Government—non-U.S.

     431         (5     69         21         (1     7         452         (6     76   

U.S. corporate

     3,615         (125     443         2,338         (323     191         5,953         (448     634   

Corporate—non-U.S.

     2,466         (53     296         1,141         (114     102         3,607         (167     398   

Residential mortgage-backed

     461         (23     92         1,031         (477     416         1,492         (500     508   

Commercial mortgage-backed

     177         (8     26         1,167         (323     225         1,344         (331     251   

Other asset-backed

     401         (2     37         512         (94     53         913         (96     90   
                                                                               

Subtotal, fixed maturity securities

     8,381         (236     1,100         6,454         (1,433     1,084         14,835         (1,669     2,184   

Equity securities

     77         (3     48         5         (1     4         82         (4     52   
                                                                               

Total for securities in an unrealized loss position

   $ 8,458       $ (239     1,148       $ 6,459       $ (1,434     1,088       $ 14,917       $ (1,673     2,236   
                                                                               

% Below cost—fixed maturity securities:

                                                                             

<20% Below cost

   $ 8,359       $ (226     1,076       $ 4,852       $ (418     588       $ 13,211       $ (644     1,664   

20%-50% Below cost

     22         (8     18         1,428         (652     328         1,450         (660     346   

>50% Below cost

     —           (2     6         174         (363     168         174         (365     174   
                                                                               

Total fixed maturity securities

     8,381         (236     1,100         6,454         (1,433     1,084         14,835         (1,669     2,184   
                                                                               

% Below cost—equity securities:

                                                                             

<20% Below cost

     72         (2     47         5         (1     4         77         (3     51   

20%-50% Below cost

     5        (1 )     1         —           —          —           5        (1 )     1  
                                                                               

Total equity securities

     77         (3     48         5         (1     4         82         (4     52   
                                                                               

Total for securities in an unrealized loss position

   $ 8,458       $ (239     1,148       $ 6,459       $ (1,434     1,088       $ 14,917       $ (1,673     2,236   
                                                                               
                   

Investment grade

   $ 8,249       $ (231     1,060       $ 4,850       $ (764     683       $ 13,099       $ (995     1,743   

Below investment grade (3)

     209         (8     88         1,609         (670     405         1,818         (678     493   
                                                                               

Total for securities in an unrealized loss position

   $ 8,458       $ (239     1,148       $ 6,459       $ (1,434     1,088       $ 14,917       $ (1,673     2,236   
                                                                               

(1) 

Amounts included $240 million of unrealized losses on other-than-temporarily impaired securities.

(2) 

Amounts included $243 million of unrealized losses on other-than-temporarily impaired securities.

(3) 

Amounts that have been in a continuous loss position for 12 months or more included $213 million of unrealized losses on other-than-temporarily impaired securities.

 

The scheduled maturity distribution of fixed maturity securities as of June 30, 2011 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties.

 

                 

(Amounts in millions)

   Amortized
cost or
cost
     Fair
value
 

Due one year or less

   $ 2,831       $ 2,857   

Due after one year through five years

     11,766         12,103   

Due after five years through ten years

     9,570         10,031   

Due after ten years

     19,705         20,420   
                   

Subtotal

     43,872         45,411   

Residential mortgage-backed

     5,252         4,983   

Commercial mortgage-backed

     3,767         3,721   

Other asset-backed

     2,172         2,106   
                   

Total

   $ 55,063       $ 56,221   
                   

As of June 30, 2011, $4,505 million of our investments (excluding mortgage-backed and asset-backed securities) were subject to certain call provisions.

As of June 30, 2011, securities issued by finance and insurance, utilities and energy, and consumer—non-cyclical industry groups represented approximately 22%, 22% and 11% of our domestic and foreign corporate fixed maturity securities portfolio, respectively. No other industry group comprised more than 10% of our investment portfolio. This portfolio is widely diversified among various geographic regions in the United States and internationally, and is not dependent on the economic stability of one particular region.

 

As of June 30, 2011, we did not hold any fixed maturity securities in any single issuer, other than securities issued or guaranteed by the U.S. government, which exceeded 10% of stockholders' equity.

 

 

(e) Commercial Mortgage Loans

Our mortgage loans are collateralized by commercial properties, including multi-family residential buildings. The carrying value of commercial mortgage loans is stated at original cost net of prepayments, amortization and allowance for loan losses.

We diversify our commercial mortgage loans by both property type and geographic region. The following tables set forth the distribution across property type and geographic region for commercial mortgage loans as of the dates indicated:

 

                                 
     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

                                

Retail

   $ 1,912        30   $ 1,974        29

Office

     1,757        27        1,850        27   

Industrial

     1,753        27        1,788        26   

Apartments

     718        11        725        11   

Mixed use/other

     345        5        435        7   
                                  

Subtotal

     6,485        100     6,772        100
                                  

Unamortized balance of loan origination fees and costs

     4                5           

Allowance for losses

     (57             (59        
                                  

Total

   $ 6,432              $ 6,718           
                                  
     
     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

                                

South Atlantic

   $ 1,624        25   $ 1,583        23

Pacific

     1,615        25        1,769        26   

Middle Atlantic

     865        13        937        14   

East North Central

     577        9        612        9   

Mountain

     516        8        540        8   

New England

     422        7        482        7   

West North Central

     349        5        369        6   

West South Central

     348        5        297        4   

East South Central

     169        3        183        3   
                                  

Subtotal

     6,485        100     6,772        100
                                  

Unamortized balance of loan origination fees and costs

     4                5           

Allowance for losses

     (57             (59        
                                  

Total

   $ 6,432              $ 6,718           
                                  

 

The following tables set forth the aging of past due commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   31 – 60  days
past due
    61 – 90  days
past due
    Greater than
90 days past
due
    Total
past  due
    Current     Total  

Property type:

                                                

Retail

   $ 9      $ —        $ 5     $ 14      $ 1,898      $ 1,912   

Office

     4        —          18        22        1,735        1,757   

Industrial

     2        —          10        12        1,741        1,753   

Apartments

     —          —          —          —          718        718   

Mixed use/other

     —          —          —          —          345        345   
                                                  

Total recorded investment

   $ 15      $ —        $ 33      $ 48      $ 6,437      $ 6,485   
                                                  

% of total commercial mortgage loans

     —       —       1     1     99     100
                                                  
   
     December 31, 2010  

(Amounts in millions)

   31 – 60  days
past due
    61 – 90  days
past due
    Greater than
90 days past
due
    Total
past  due
    Current     Total  

Property type:

                                                

Retail

   $ —        $ —        $ —        $ —        $ 1,974      $ 1,974   

Office

     —          —          12        12        1,838        1,850   

Industrial

     —          6        27        33        1,755        1,788   

Apartments

     —          —          —          —          725        725   

Mixed use/other

     —          —          —          —          435        435   
                                                  

Total recorded investment

   $ —        $ 6      $ 39      $ 45      $ 6,727      $ 6,772   
                                                  

% of total commercial mortgage loans

     —       —       1     1     99     100
                                                  

 

          As of June 30, 2011 and December 31, 2010, we had no commercial mortgage loans that were past due for more than 90 days and still accruing interest.

           During 2011 and 2010, we modified or extended 11 and 13, respectively, commercial mortgage loans with a total carrying value of $36 million and $98 million, respectively. All of these modifications or extensions were based on current market interest rates, did not result in any forgiveness in the outstanding principal amount owed by the borrower and were not considered troubled debt restructurings.

The following table sets forth the commercial mortgage loans on nonaccrual status by property type as of the dates indicated:

 

                 

(Amounts in millions)

   June 30,
2011
     December 31,
2010
 

Property type:

                 

Retail

   $ 5       $ —     

Office

     18         12   

Industrial

     10         27   

Apartments

     —           —     

Mixed use/other

     —           —     
                   

Total recorded investment

   $ 33       $ 39   
                   

 

The following table sets forth the allowance for credit losses and recorded investment in commercial mortgage loans for the periods indicated:

 

                 

(Amounts in millions)

   Three months ended
June  30, 2011
    Six months ended
June  30, 2011
 

Allowance for credit losses:

                

Beginning balance

   $ 58      $ 59   

Charge-offs

     (4     (5

Recoveries

     —          —     

Provision

     3        3   
                  

Ending balance

   $ 57      $ 57   
                  

Ending allowance for individually impaired loans

   $ —        $ —     
                  

Ending allowance for loans not individually impaired that were evaluated collectively for impairment

   $ 57      $ 57   
                  
     

Recorded investment:

                

Ending balance

   $ 6,485      $ 6,485   
                  

Ending balance of individually impaired loans

   $ 13      $ 13   
                  

Ending balance of loans not individually impaired that were evaluated collectively for impairment

   $ 6,472      $ 6,472   
                  

The following table presents the activity in the allowance for losses for the periods indicated:

The following tables set forth our individually impaired commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   Recorded
investment
     Unpaid
principal
balance
     Charge-
offs
     Related
allowance
     Average
recorded
investment
     Interest
income
recognized
 

Property type:

                                                     

Retail

   $ 3       $ 4       $ 1       $ —         $ 2       $ —     

Office

     10         13         3         —         $ 10         —     

Industrial

     —           —           —           —         $ —           —     

Apartments

     —           —           —           —         $ —           —     

Mixed use/other

     —           —           —           —         $ —           —     
                                                       

Total

   $ 13       $ 17       $ 4       $ —         $ 6       $ —     
                                                       

 

                                                 
     December 31, 2010  

(Amounts in millions)

   Recorded
investment
     Unpaid
principal
balance
     Charge-
offs
     Related
allowance
     Average
recorded
investment
     Interest
income
recognized
 

Property type:

                                                     

Retail

   $ 5       $ 8       $ 3       $ —         $ 2       $ —     

Office

     6         8         2         —         $ 2         —     

Industrial

     19         24         5         —         $ 3         —     

Apartments

     —           —           —           —         $ —           —     

Mixed use/other

     —           —           —           —         $ —           —     
                                                       

Total

   $ 30       $ 40       $ 10       $ —         $ 3       $ —     
                                                       

 

           In evaluating the credit quality of commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. Certain risks associated with commercial mortgages loans can be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower's liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments.

 

The following tables set forth the loan-to-value of commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100% (1)
    Total  

Property type:

                                                

Retail

   $ 458      $ 247      $ 847      $ 322      $ 38      $ 1,912   

Office

     321        294        605        365        172        1,757   

Industrial

     498        329        613        283        30        1,753   

Apartments

     147        191        304        61        15        718   

Mixed use/other

     83        40        72        140        10        345   
                                                  

Total recorded investment

   $ 1,507      $ 1,101      $ 2,441      $ 1,171      $ 265      $ 6,485   
                                                  

% of total

     23     17     38     18     4     100
                                                  

Weighted-average debt service coverage ratio

     2.28        1.86        2.16        1.80        1.56        2.05   
                                                  

(1) 

Included $13 million of impaired loans and $252 million of loans in good standing, with a total weighted-average loan-to-value of 119%, where borrowers continued to make timely payments and have no history of delinquencies or distress.

 

                                                 
     December 31, 2010  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100% 
(1)
    Total  

Property type:

                                                

Retail

   $ 477      $ 287      $ 805      $ 363      $ 42      $ 1,974   

Office

     320        327        612        446        145        1,850   

Industrial

     431        361        625        284        87        1,788   

Apartments

     99        172        321        133        —          725   

Mixed use/other

     123        10        63        221        18        435   
                                                  

Total recorded investment

   $ 1,450      $ 1,157      $ 2,426      $ 1,447      $ 292      $ 6,772   
                                                  

% of total

     22     17     36     21     4     100
                                                  

Weighted-average debt service coverage ratio

     2.24        1.99        1.79        2.42        0.75        2.01   
                                                  

(1) 

Included $25 million of impaired loans and $267 million of loans in good standing, with a total weighted-average loan-to-value of 117%, where borrowers continued to make timely payments and have no history of delinquencies or distress.

The following tables set forth the debt service coverage ratio for fixed rate commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 92      $ 357      $ 412      $ 587      $ 352      $ 1,800   

Office

     194        135        268        432        553        1,582   

Industrial

     242        226        316        596        355        1,735   

Apartments

     12        91        79        301        168        651   

Mixed use/other

     56        17        11        71        91        246   
                                                  

Total recorded investment

   $ 596      $ 826      $ 1,086      $ 1,987      $ 1,519      $ 6,014   
                                                  

% of total

     10     14     18     33     25     100
                                                  

Weighted-average loan-to-value

     84     72     66     60     51     63
                                                  
   
     December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 125      $ 317      $ 490      $ 512      $ 415      $ 1,859   

Office

     176        186        238        524        547        1,671   

Industrial

     260        166        292        698        346        1,762   

Apartments

     7        62        160        290        135        654   

Mixed use/other

     49        12        17        78        94        250   
                                                  

Total recorded investment

   $ 617      $ 743      $ 1,197      $ 2,102      $ 1,537      $ 6,196   
                                                  

% of total

     10     12     19     34     25     100
                                                  

Weighted-average loan-to-value

     90     71     68     62     50     64
                                                  

The following tables set forth the debt service coverage ratio for floating rate commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater than
2.00
    Total  

Property type:

                                                

Retail

   $ —        $ —        $ 1     $ —        $ 111      $ 112   

Office

     —          —          8       —          167        175   

Industrial

     1        —          —          6        11        18   

Apartments

     —          —          —          29        38        67   

Mixed use/other

     —          4        —          —          95        99   
                                                  

Total recorded investment

   $ 1      $ 4      $ 9     $ 35      $ 422      $ 471   
                                                  

% of total

     —       1     2     7     90     100
                                                  

Weighted-average loan-to-value

     47     77     26     77     79     77
                                                  
   
     December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater than
2.00
    Total  

Property type:

                                                

Retail

   $ —        $ —        $ —        $ 2      $ 113      $ 115   

Office

     —          —          —          57        122        179   

Industrial

     1        5        —          1        19        26   

Apartments

     —          4        —          21        46        71   

Mixed use/other

     —          —          —          —          185        185   
                                                  

Total recorded investment

   $ 1      $ 9      $ —        $ 81      $ 485      $ 576   
                                                  

% of total

     —       2     —       14     84     100
                                                  

Weighted-average loan-to-value

     30     62     —       83     77     78
                                                  

          (f) Restricted Commercial Mortgage Loans Related To Securitization Entities

The following tables set forth additional information regarding our restricted commercial mortgage loans related to securitization entities as of the dates indicated:

 

                                 
     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

                                

Retail

   $ 175        38   $ 182        36

Industrial

     113        24        124        24   

Office

     101        22        117        23   

Apartments

     62        14        64        13   

Mixed use/other

     8        2        22        4   
                                  

Subtotal

     459        100     509        100
                                  

Allowance for losses

     (2             (2        
                                  

Total

   $ 457              $ 507           
                                  
     
     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

                                

South Atlantic

   $ 160        35   $ 189        37

Pacific

     77        17        90        18   

Middle Atlantic

     71        15        70        14   

East North Central

     48        10        51        10   

Mountain

     31        7        32        6   

East South Central

     30        7        32        6   

West North Central

     29        6        31        6   

West South Central

     12        3        13        3   

New England

     1        —          1        —     
                                  

Subtotal

     459        100     509        100
                                  

Allowance for losses

     (2             (2        
                                  

Total

   $ 457              $ 507           
                                  

 

Of our restricted commercial mortgage loans as of June 30, 2011, $457 million were current, $1 million were 61 to 90 days past due and $1 million were past due for more than 90 days and still accruing interest. As of December 31, 2010, all restricted commercial mortgage loans were current and there were no restricted commercial mortgage loans on nonaccrual status.

 

          As of June 30, 2011 and December 31, 2010, loans not individually impaired that were evaluated collectively for impairment were $458 million and $509 million, respectively, of the total recorded investment of restricted commercial mortgage loans of $459 million and $509 million, respectively. There was no provision for credit losses recorded during the three months ended June 30, 2011 or 2010 related to restricted commercial mortgage loans. There was no provision for credit losses recorded during the six months ended June 30, 2011 related to restricted commercial mortgage loans. A provision for credit losses of $2 million was recorded during the six months ended June 30, 2010 related to restricted commercial mortgage loans, which reflected our ending allowance for credit losses balance and was required upon consolidation of securitization entities as of January 1, 2010.

           In evaluating the credit quality of restricted commercial mortgage loans, we assess the performance of the underlying loans using both quantitative and qualitative criteria. The risks associated with restricted commercial mortgage loans can typically be evaluated by reviewing both the loan-to-value and debt service coverage ratio to understand both the probability of the borrower not being able to make the necessary loan payments as well as the ability to sell the underlying property for an amount that would enable us to recover our unpaid principal balance in the event of default by the borrower. The average loan-to-value ratio is based on our most recent estimate of the fair value for the underlying property which is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A lower loan-to-value indicates that our loan value is more likely to be recovered in the event of default by the borrower if the property was sold. The debt service coverage ratio is based on "normalized" annual net operating income of the property compared to the payments required under the terms of the loan. Normalization allows for the removal of annual one-time events such as capital expenditures, prepaid or late real estate tax payments or non-recurring third-party fees (such as legal, consulting or contract fees). This ratio is evaluated at least annually and updated more frequently if necessary to better indicate risk associated with the loan. A higher debt service coverage ratio indicates the borrower is less likely to default on the loan. The debt service coverage ratio should not be used without considering other factors associated with the borrower, such as the borrower's liquidity or access to other resources that may result in our expectation that the borrower will continue to make the future scheduled payments.

The following tables set forth the loan-to-value of restricted commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100%
    Total  

Property type:

                                                

Retail

   $ 147      $ 25      $ —        $ —        $ 3      $ 175   

Industrial

     97        8        6        —          2        113   

Office

     87        7        5        1        1        101   

Apartments

     34        9        —          19        —          62   

Mixed use/other

     8        —          —          —          —          8   
                                                  

Total recorded investment

   $ 373      $ 49      $ 11      $ 20      $ 6      $ 459   
                                                  

% of total

     82     11     2     4     1     100
                                                  

Weighted-average debt service coverage ratio

     1.74        1.46        1.26        0.93        0.47        1.65   
                                                  
                                                 
   
     December 31, 2010  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100%
    Total  

Property type:

                                                

Retail

   $ 141      $ 34      $ 1      $ 3      $ 3      $ 182   

Industrial

     108        8        4        2        2        124   

Office

     90        19        5        3        —          117   

Apartments

     35        9        —          20        —          64   

Mixed use/other

     17        5        —          —          —          22   
                                                  

Total recorded investment

   $ 391      $ 75      $ 10      $ 28      $ 5      $ 509   
                                                  

% of total

     77     15     2     5     1     100
                                                  

Weighted-average debt service coverage ratio

     1.82        1.35        1.05        1.18        0.52        1.69   
                                                  

 

The following tables set forth the debt service coverage ratio for fixed rate restricted commercial mortgage loans by property type as of the dates indicated:

 

                                                 
     June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 7      $ 48      $ 66      $ 21      $ 33      $ 175   

Industrial

     20        24        27        11        31        113   

Office

     12        12        39        25        13        101   

Apartments

     12        10        20        15        5        62   

Mixed use/other

     —          —          3        —          5        8   
                                                  

Total recorded investment

   $ 51      $ 94      $ 155      $ 72      $ 87      $ 459   
                                                  

% of total

     11     21     34     15     19     100
                                                  

Weighted-average loan-to-value

     63     39     37     43     31     40
                                                  
                                                 
   
     December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 14      $ 6      $ 52      $ 77      $ 33      $ 182   

Industrial

     11        9        25        50        29        124   

Office

     14        14        23        45        21        117   

Apartments

     —          21        10        26        7        64   

Mixed use/other

     —          —          7        11        4        22   
                                                  

Total recorded investment

   $ 39      $ 50      $ 117      $ 209      $ 94      $ 509   
                                                  

% of total

     8     10     23     41     18     100
                                                  

Weighted-average loan-to-value

     65     55     42     41     31     43
                                                  

There were no floating rate restricted commercial mortgage loans as of June 30, 2011 or December 31, 2010.

(g) Restricted Other Invested Assets Related To Securitization Entities

We have consolidated securitization entities that hold certain investments that are recorded as restricted other invested assets related to securitization entities. The consolidated securitization entities hold certain investments as trading securities whereby the changes in fair value are recorded in current period income (loss). The trading securities are comprised of asset-backed securities, including residual interest in certain policy loan securitization entities and highly rated bonds that are primarily backed by credit card receivables.

Derivative Instruments
Derivative Instruments

(5) Derivative Instruments

Our business activities routinely deal with fluctuations in interest rates, equity prices, currency exchange rates and other asset and liability prices. We use derivative instruments to mitigate or reduce certain of these risks. We have established policies for managing each of these risks, including prohibitions on derivatives market-making and other speculative derivatives activities. These policies require the use of derivative instruments in concert with other techniques to reduce or mitigate these risks. While we use derivatives to mitigate or reduce risks, certain derivatives do not meet the accounting requirements to be designated as hedging instruments and are denoted as "derivatives not designated as hedges" in the following disclosures. For derivatives that meet the accounting requirements to be designated as hedges, the following disclosures for these derivatives are denoted as "derivatives designated as hedges," which include both cash flow and fair value hedges.

 

The following table sets forth our positions in derivative instruments as of the dates indicated:

 

   

Derivative assets

   

Derivative liabilities

 

(Amounts in millions)

 

Balance

sheet classification

  Fair value    

Balance

sheet classification

  Fair value  
    June 30,
2011
    December 31,
2010
      June 30,
2011
    December 31,
2010
 

Derivatives designated as hedges

           

Cash flow hedges:

           

Interest rate swaps

  Other invested assets   $ 264      $ 222      Other liabilities   $ 62      $ 56   

Inflation indexed swaps

  Other invested assets     —          —        Other liabilities     61        33   

Foreign currency swaps

  Other invested assets     —          205      Other liabilities     —          —     
                                   

Total cash flow hedges

      264        427          123        89   
                                   

Fair value hedges:

           

Interest rate swaps

  Other invested assets     69        95      Other liabilities     4        8   

Foreign currency swaps

  Other invested assets     46        35      Other liabilities     —          —     
                                   

Total fair value hedges

      115        130          4        8   
                                   

Total derivatives designated as hedges

      379        557          127        97   
                                   

Derivatives not designated as hedges

           

Interest rate swaps

  Other invested assets     386        446      Other liabilities     21        74   

Equity return swaps

  Other invested assets     6        —        Other liabilities     1        3   

Interest rate swaps related to securitization entities

  Restricted other invested assets     —          —        Other liabilities     18        19   

Interest rate swaptions

  Other invested assets     —          —        Other liabilities     —          —     

Credit default swaps

  Other invested assets     9        11      Other liabilities     9        7   

Credit default swaps related to securitization entities

  Restricted other invested assets     —          —        Other liabilities     126        129   

Equity index options

  Other invested assets     40        33      Other liabilities     —          3   

Financial futures

  Other invested assets     —          —        Other liabilities     —          —     

Other foreign currency contracts

  Other invested assets     —          —        Other liabilities     12        —     

Reinsurance embedded derivatives (1)

  Other assets     —          1      Other liabilities     1        —     

GMWB embedded derivatives

  Reinsurance recoverable (2)     (5     (5   Policyholder account balances (3)     113        121   
                                   

Total derivatives not designated as hedges

      436        486          301        356   
                                   

Total derivatives

    $ 815      $ 1,043        $ 428      $ 453   
                                   

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities.

(3) 

Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

The fair value of derivative positions presented above was not offset by the respective collateral amounts retained or provided under these agreements. The amounts recognized for derivative counterparty collateral retained by us was recorded in other invested assets with a corresponding amount recorded in other liabilities to represent our obligation to return the collateral retained by us.

 

The activity associated with derivative instruments can generally be measured by the change in notional value over the periods presented. However, for GMWB embedded derivatives, the change between periods is best illustrated by the number of policies. The following tables represent activity associated with derivative instruments as of the dates indicated:

 

(Notional in millions)

 

Measurement

   December 31,
2010
     Additions      Maturities/
terminations
    June 30, 2011  

Derivatives designated as hedges

            

Cash flow hedges:

            

Interest rate swaps

  Notional    $ 12,355       $ 995       $ (157   $ 13,193   

Inflation indexed swaps

  Notional      525         16         —          541   

Foreign currency swaps

  Notional      491         —           (491 )     —     
                                    

Total cash flow hedges

       13,371         1,011         (648     13,734   
                                    

Fair value hedges:

            

Interest rate swaps

  Notional      1,764         —           (405     1,359   

Foreign currency swaps

  Notional      85         —           —          85   
                                    

Total fair value hedges

       1,849         —           (405     1,444   
                                    

Total derivatives designated as hedges

       15,220         1,011         (1,053     15,178   
                                    

Derivatives not designated as hedges

            

Interest rate swaps

  Notional      7,681         314         (1,550     6,445   

Equity return swaps

  Notional      208         139         —          347   

Interest rate swaps related to securitization entities

  Notional      129         —           (6     123   

Interest rate swaptions

  Notional      200         —           (200     —     

Credit default swaps

  Notional      1,195         115         (100     1,210   

Credit default swaps related to securitization entities

  Notional      317         —           —          317   

Equity index options

  Notional      744         521         (480     785   

Financial futures

  Notional      3,937         2,687         (3,463     3,161   

Other foreign currency contracts

  Notional      521         185         (535     171   

Reinsurance embedded derivatives

  Notional      72         89         —          161   
                                    

Total derivatives not designated as hedges

       15,004         4,050         (6,334     12,720   
                                    

Total derivatives

     $ 30,224       $ 5,061       $ (7,387   $ 27,898   
                                    

(Number of policies)

 

Measurement

   December 31,
2010
     Additions      Terminations     June 30, 2011  

Derivatives not designated as hedges

            

GMWB embedded derivatives

  Policies      49,566         690         (1,326     48,930   

 

Approximately $125 million of notional value above is related to derivatives with counterparties that can be terminated at the option of the derivative counterparty and represented a net fair value asset of $1 million as of June 30, 2011.

Cash Flow Hedges

Certain derivative instruments are designated as cash flow hedges. The changes in fair value of these instruments are recorded as a component of OCI. We designate and account for the following as cash flow hedges when they have met the effectiveness requirements: (i) various types of interest rate swaps to convert floating rate investments to fixed rate investments; (ii) various types of interest rate swaps to convert floating rate liabilities into fixed rate liabilities; (iii) receive U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments; (iv) pay U.S. dollar fixed on foreign currency swaps to hedge the foreign currency cash flow exposure on liabilities denominated in foreign currencies; (v) forward starting interest rate swaps to hedge against changes in interest rates associated with future fixed-rate bond purchases and/or interest income; and (vi) other instruments to hedge the cash flows of various forecasted transactions.

 

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2011:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
     Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 113       $ (6   Net investment income    $ 2       Net investment gains (losses)

Interest rate swaps hedging liabilities

     —           1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     1         (4   Interest expense      —         Net investment gains (losses)
                               

Total

   $ 114       $ (9      $ 2      
                               

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2010:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
    Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 599      $ 4      Net investment
income
   $ 15       Net investment gains (losses)

Interest rate swaps hedging liabilities

     (3     1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     6        (2   Interest expense      —         Net investment gains (losses)
                              

Total

   $ 602      $ 3         $ 15      
                              

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2011:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
     Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 12       $ (11   Net investment income    $ —         Net investment gains (losses)

Interest rate swaps hedging liabilities

     —           1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     4         (5   Interest expense      —         Net investment gains (losses)
                               

Total

   $ 16       $ (15      $ —        
                               

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

 

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2010:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
    Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 563      $ 8      Net investment
income
   $ 12       Net investment
gains (losses)

Interest rate swaps hedging assets

     —          1      Net investment
gains (losses)
     —         Net investment
gains (losses)

Interest rate swaps hedging liabilities

     (3     1      Interest expense      —         Net investment
gains (losses)

Foreign currency swaps

     7        (4   Interest expense      —         Net investment
gains (losses)
                              

Total

   $ 567      $ 6         $ 12      
                              

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The total of derivatives designated as cash flow hedges of $943 million, net of taxes, recorded in stockholders' equity as of June 30, 2011 is expected to be reclassified to future net income (loss), concurrently with and primarily offsetting changes in interest expense and interest income on floating-rate instruments and interest income on future fixed-rate bond purchases. Of this amount, $23 million, net of taxes, is expected to be reclassified to net income (loss) in the next 12 months. Actual amounts may vary from this amount as a result of market conditions. All forecasted transactions associated with qualifying cash flow hedges are expected to occur by 2045. No amounts were reclassified to net income (loss) during the six months ended June 30, 2011 in connection with forecasted transactions that were no longer considered probable of occurring.

Fair Value Hedges

Certain derivative instruments are designated as fair value hedges. The changes in fair value of these instruments are recorded in net income (loss). In addition, changes in the fair value attributable to the hedged portion of the underlying instrument are reported in net income (loss). We designate and account for the following as fair value hedges when they have met the effectiveness requirements: (i) interest rate swaps to convert fixed rate investments to floating rate investments; (ii) interest rate swaps to convert fixed rate liabilities into floating rate liabilities; (iii) cross currency swaps to convert non-U.S. dollar fixed rate liabilities to floating rate U.S. dollar liabilities; and (iv) other instruments to hedge various fair value exposures of investments.

The following table provides information about the pre-tax income (loss) effects of fair value hedges and related hedged items for the three months ended June 30, 2011:

 

     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in

net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 1      Net investment gains (losses)    $ (2   Net investment
income
   $ (1   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (7   Net investment gains (losses)      17      Interest credited      7      Net investment gains (losses)

Foreign currency swaps

     11      Net investment gains (losses)      —        Interest credited      (11   Net investment gains (losses)
                                

Total

   $ 5         $ 15         $ (5  
                                

 

The following table provides information about the pre-tax income (loss) effects of fair value hedges and related hedged items for the three months ended June 30, 2010:

 

     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 1      Net investment gains (losses)    $ (3   Net investment income    $ (1   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (6   Net investment gains (losses)      25      Interest credited      6      Net investment gains (losses)

Foreign currency swaps

     (2   Net investment gains (losses)      1      Interest credited      2      Net investment gains (losses)
                                

Total

   $ (7      $ 23         $ 7     
                                

The following table provides information about the pre-tax income (loss) effects of fair value hedges and related hedged items for the six months ended June 30, 2011:

 

     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in

net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 2      Net investment gains (losses)    $ (5   Net investment
income
   $ (2   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (29   Net investment gains (losses)      37      Interest credited      29      Net investment gains (losses)

Foreign currency swaps

     11      Net investment gains (losses)      1      Interest credited      (12   Net investment gains (losses)
                                

Total

   $ (16      $ 33         $ 15     
                                

The following table provides information about the pre-tax income (loss) effects of fair value hedges and related hedged items for the six months ended June 30, 2010:

 

     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 2      Net investment gains (losses)    $ (6   Net investment income    $ (2   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (7   Net investment gains (losses)      50      Interest credited      7      Net investment gains (losses)

Foreign currency swaps

     (4   Net investment gains (losses)      2      Interest credited      4      Net investment gains (losses)
                                

Total

   $ (9      $ 46         $ 9     
                                

The difference between the gain (loss) recognized for the derivative instrument and the hedged item presented above represents the net ineffectiveness of the fair value hedging relationships. The other impacts presented above represent the net income (loss) effects of the derivative instruments that are presented in the same location as the income (loss) activity from the hedged item. There were no amounts excluded from the measurement of effectiveness.

 

Derivatives Not Designated As Hedges

We also enter into certain non-qualifying derivative instruments such as: (i) interest rate swaps, swaptions and financial futures to mitigate interest rate risk as part of managing regulatory capital positions; (ii) credit default swaps to enhance yield and reproduce characteristics of investments with similar terms and credit risk; (iii) equity index options, equity return swaps, interest rate swaps and financial futures to mitigate the risks associated with liabilities that have guaranteed minimum benefits; (iv) interest rate swaps where the hedging relationship does not qualify for hedge accounting; (v) credit default swaps to mitigate loss exposure to certain credit risk; (vi) foreign currency forward contracts to mitigate currency risk associated with future dividends from certain foreign subsidiaries to our holding company; and (vii) equity index options and credit default swaps to mitigate certain macroeconomic risks associated with certain foreign subsidiaries. Additionally, we provide GMWBs on certain products that are required to be bifurcated as embedded derivatives and have reinsurance agreements with certain features that are required to be bifurcated as embedded derivatives.

We also have derivatives related to securitization entities where we were required to consolidate the related securitization entity as a result of our involvement in the structure. The counterparties for these derivatives typically only have recourse to the securitization entity. The interest rate swaps used for these entities are typically used to effectively convert the interest payments on the assets of the securitization entity to the same basis as the interest rate on the borrowings issued by the securitization entity. Credit default swaps are utilized in certain securitization entities to enhance the yield payable on the borrowings issued by the securitization entity and also include a settlement feature that allows the securitization entity to provide the par value of assets in the securitization entity for the amount of any losses incurred under the credit default swap.

The following table provides the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated:

 

     Three months ended June 30,    

Classification of gain (loss) recognized
in net income (loss)

(Amounts in millions)

   2011     2010    

Interest rate swaps

   $ 2      $ 63      Net investment gains (losses)

Equity return swaps

     (6     —        Net investment gains (losses)

Interest rate swaps related to securitization entities

     (4     (9   Net investment gains (losses)

Interest rate swaptions

     —          35      Net investment gains (losses)

Credit default swaps

     —          (32   Net investment gains (losses)

Credit default swaps related to securitization entities

     (4     (46   Net investment gains (losses)

Equity index options

     (9     50      Net investment gains (losses)

Financial futures

     34        105      Net investment gains (losses)

Other foreign currency contracts

     (4     2      Net investment gains (losses)

Reinsurance embedded derivatives

     (1     2      Net investment gains (losses)

GMWB embedded derivatives

     (33     (278   Net investment gains (losses)
                  

Total derivatives not designated as hedges

   $ (25   $ (108  
                  

 

The following table provides the pre-tax gain (loss) recognized in net income (loss) for the effects of derivatives not designated as hedges for the periods indicated:

 

     Six months ended June 30,    

Classification of gain (loss) recognized
in net income (loss)

(Amounts in millions)

   2011     2010    

Interest rate swaps

   $ 4      $ 57      Net investment gains (losses)

Equity return swaps

     (10     —        Net investment gains (losses)

Interest rate swaps related to securitization entities

     (3     (12   Net investment gains (losses)

Interest rate swaptions

     —          57      Net investment gains (losses)

Credit default swaps

     3        (27   Net investment gains (losses)

Credit default swaps related to securitization entities

     5        (41   Net investment gains (losses)

Equity index options

     (28     23      Net investment gains (losses)

Financial futures

     (5     72      Net investment gains (losses)

Other foreign currency contracts

     (13     (1   Net investment gains (losses)

Reinsurance embedded derivatives

     (1     2      Net investment gains (losses)

GMWB embedded derivatives

     26        (242   Net investment gains (losses)
                  

Total derivatives not designated as hedges

   $ (22   $ (112  
                  

Derivative Counterparty Credit Risk

As of June 30, 2011 and December 31, 2010, net fair value assets by counterparty totaled $691 million and $888 million, respectively. As of June 30, 2011 and December 31, 2010, net fair value liabilities by counterparty totaled $186 million and $172 million, respectively. As of June 30, 2011 and December 31, 2010, we retained collateral of $704 million and $794 million, respectively, related to these agreements, including over collateralization of $86 million and $29 million, respectively, from certain counterparties. As of June 30, 2011 and December 31, 2010, we posted $23 million and $30 million, respectively, of collateral to derivative counterparties, including over collateralization of $1 million and $11 million, respectively. For derivatives related to securitization entities, there are no arrangements that require either party to provide collateral and the recourse of the derivative counterparty is typically limited to the assets held by the securitization entity and there is no recourse to any entity other than the securitization entity.

Except for derivatives related to securitization entities, all of our master swap agreements contain credit downgrade provisions that allow either party to assign or terminate derivative transactions if the other party's long-term unsecured debt rating or financial strength rating is below the limit defined in the applicable agreement. If the downgrade provisions had been triggered as of June 30, 2011 and December 31, 2010, we could have been allowed to claim up to $73 million and $123 million, respectively, from counterparties and required to disburse up to $20 million and $5 million, respectively. This represented the net fair value of gains and losses by counterparty, less available collateral held, and did not include any fair value gains or losses for derivatives related to securitization entities.

Credit Derivatives

We sell protection under single name credit default swaps and credit default swap index tranches in combination with purchasing securities to replicate characteristics of similar investments based on the credit quality and term of the credit default swap. Credit default triggers for both indexed reference entities and single name reference entities follow the Credit Derivatives Physical Settlement Matrix published by the International Swaps and Derivatives Association. Under these terms, credit default triggers are defined as bankruptcy, failure to pay or restructuring, if applicable. Our maximum exposure to credit loss equals the notional value for credit default swaps. In the event of default for credit default swaps, we are typically required to pay the protection holder the full notional value less a recovery rate determined at auction.

In addition to the credit derivatives discussed above, we also have credit derivative instruments related to securitization entities that we consolidated in 2010. These derivatives represent a customized index of reference entities with specified attachment points for certain derivatives. The credit default triggers are similar to those described above. In the event of default, the securitization entity will provide the counterparty with the par value of assets held in the securitization entity for the amount of incurred loss on the credit default swap. The maximum exposure to loss for the securitization entity is the notional value of the derivatives. Certain losses on these credit default swaps would be absorbed by the third-party noteholders of the securitization entity and the remaining losses on the credit default swaps would be absorbed by our portion of the notes issued by the securitization entity.

 

The following table sets forth our credit default swaps where we sell protection on single name reference entities and the fair values as of the dates indicated:

 

     June 30, 2011      December 31, 2010  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Reference entity credit rating and maturity:

                 

AAA

                 

Matures after one year through five years

   $ 5       $ —         $ —         $ 5       $ —         $ —     

AA

                 

Matures after one year through five years

     6         —           —           6         —           —     

Matures after five years through ten years

     5         —           —           5         —           —     

A

                 

Matures after one year through five years

     37         1         —           37         1         —     

Matures after five years through ten years

     10         —           —           5         —           —     

BBB

                 

Matures after one year through five years

     68         1         —           68         2         —     

Matures after five years through ten years

     24         —           —           29         —           —     
                                                     

Total credit default swaps on single name reference entities

   $ 155       $ 2       $ —         $ 155       $ 3       $ —     
                                                     

 

The following table sets forth our credit default swaps where we sell protection on credit default swap index tranches and the fair values as of the dates indicated:

 

     June 30, 2011      December 31, 2010  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Original index tranche attachment/detachment point and maturity:

                 

9% – 12% matures after one year through five years (1)

   $ 300       $ 1       $ 4       $ 300       $ —         $ 3   

10% – 15% matures after one year through five years (2)

     250         3         —           250         4         —     

12% – 22% matures after five years through ten years (3)

     248         —           5         248         —           4   

15% – 30% matures after five years through ten years (4)

     127         —           —           127         2         —     
                                                     

Total credit default swap index tranches

     925         4         9         925         6         7   
                                                     

Customized credit default swap index tranches related to securitization entities:

                 

Portion backing third-party borrowings maturing 2017 (5)

     17         —           7         17         —           8   

Portion backing our interest maturing 2017 (6)

     300         —           119         300         —           121   
                                                     

Total customized credit default swap index tranches related to securitization entities

     317         —           126         317         —           129   
                                                     

Total credit default swaps on index tranches

   $ 1,242       $ 4       $ 135       $ 1,242       $ 6       $ 136   
                                                     

(1) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 9% – 12%.

(2) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 10% – 15%.

(3) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 12% – 22%.

(4) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 14.8% – 30.3%.

(5) 

Original notional value was $39 million.

(6) 

Original notional value was $300 million.

Fair Value of Financial Instruments
Fair Value of Financial Instruments

(6) Fair Value of Financial Instruments

Assets and liabilities that are reflected in the accompanying consolidated financial statements at fair value are not included in the following disclosure of fair value. Such items include cash and cash equivalents, investment securities, separate accounts, securities held as collateral and derivative instruments. Other financial assets and liabilities—those not carried at fair value—are discussed below. Apart from certain of our borrowings and certain marketable securities, few of the instruments discussed below are actively traded and their fair values must often be determined using models. The fair value estimates are made at a specific point in time, based upon available market information and judgments about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument, nor do they consider the tax impact of the realization of unrealized gains or losses. In many cases, the fair value estimates cannot be substantiated by comparison to independent markets.

The basis on which we estimate fair value is as follows:

Commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates.

Restricted commercial mortgage loans. Based on recent transactions and/or discounted future cash flows, using current market rates.

Other invested assets. Based on comparable market transactions, discounted future cash flows, quoted market prices and/or estimates using the most recent data available for the related instrument. Primarily represents short-term investments, limited partnerships accounted for under the cost method.

Long-term borrowings. Based on market quotes or comparable market transactions.

 

Non-recourse funding obligations. Based on the then current coupon, revalued based on the London Interbank Offered Rate ("LIBOR") and current spread assumption based on commercially available data. The model is a floating rate coupon model using the spread assumption to derive the valuation.

Borrowings related to securitization entities. Based on market quotes or comparable market transactions.

Investment contracts. Based on expected future cash flows, discounted at current market rates for annuity contracts or institutional products.

The following represents the fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:

 

(Amounts in millions)

   June 30, 2011      December 31, 2010  
   Notional
amount
    Carrying
amount
     Fair
value
     Notional
amount
    Carrying
amount
     Fair
value
 

Assets:

               

Commercial mortgage loans

   $   (1)    $ 6,432       $ 6,742       $   (1)    $ 6,718       $ 6,896   

Restricted commercial mortgage loans

          (1)      457         506              (1)      507         554   

Other invested assets

          (1)      282         293              (1)      267         272   

Liabilities:

               

Long-term borrowings (2)

          (1)      4,755         4,766              (1)      4,952         4,928   

Non-recourse funding obligations (2)

          (1)      3,374         2,339              (1)      3,437         2,170   

Borrowings related to securitization entities

          (1)      394         417              (1)      443         467   

Investment contracts

          (1)      18,728         19,365              (1)      19,772         20,471   

Other firm commitments:

               

Commitments to fund limited partnerships

     90        —           —           110        —           —     

Ordinary course of business lending commitments

     49        —           —           28        —           —     

(1) 

These financial instruments do not have notional amounts.

(2) 

See note 8 for additional information related to borrowings.

Recurring Fair Value Measurements

We have fixed maturity, equity and trading securities, derivatives, embedded derivatives, securities held as collateral, separate account assets and certain other financial instruments, which are carried at fair value. Below is a description of the valuation techniques and inputs used to determine fair value by class of instrument.

Fixed maturity, equity and trading securities

The valuations of fixed maturity, equity and trading securities are determined using a market approach, income approach or a combination of the market and income approach depending on the type of instrument and availability of information.

We utilize certain third-party data providers when determining fair value. We consider information obtained from third-party pricing services as well as third-party broker provided prices, or broker quotes, in our determination of fair value. Additionally, we utilize internal models to determine the valuation of securities using an income approach where the inputs are based on third-party provided market inputs. While we consider the valuations provided by third-party pricing services and broker quotes, management determines the fair value of our investment securities after considering all relevant and available information. We also obtain an understanding of the valuation methodologies and procedures used by third-party data providers to ensure sufficient understanding to evaluate the valuation data received and determine the appropriate fair value.

In general, we first obtain valuations from pricing services. If a price is not supplied by a pricing service, we will typically seek a broker quote. For certain private fixed maturity securities where we do not obtain valuations from pricing services, we utilize an internal model to determine fair value since transactions for identical securities are not readily observable and these securities are not typically valued by pricing services. For all securities, excluding certain private fixed maturity securities, if neither a pricing service nor broker quote valuation is available, we determine fair value using internal models.

 

For pricing services, we obtain an understanding of the pricing methodologies and procedures for each type of instrument. In general, a pricing service does not provide a price for a security if sufficient information is not readily available to determine fair value or if such security is not in the specific sector or class covered by a particular pricing service. Given our understanding of the pricing methodologies and procedures of pricing services, the securities valued by pricing services are typically classified as Level 2 unless we determine the valuation process for a security or group of securities utilizes significant unobservable inputs.

For private fixed maturity securities, we utilize an internal model to determine fair value and utilize public bond spreads by sector, rating and maturity to develop the market rate that would be utilized for a similar public bond. We then add an additional premium to the public bond spread to adjust for the liquidity and other features of our private placements. We utilize the estimated market yield to discount the expected cash flows of the security to determine fair value. We assign each security an internal rating to determine the appropriate public bond spread that should be utilized in the valuation. While we generally consider the public bond spreads by sector and maturity to be observable inputs, we evaluate the similarities of our private placement with the public bonds to determine whether the spreads utilized would be considered observable inputs for the private placement being valued. To determine the significance of unobservable inputs, we calculate the impact on the valuation from the unobservable input and will classify a security as Level 3 when the impact on the valuation exceeds 10%.

For broker quotes, we consider the valuation methodology utilized by the third party but cannot typically obtain sufficient evidence to determine the valuation does not include significant unobservable inputs. Accordingly, we typically classify the securities where fair value is based on our consideration of broker quotes as Level 3 measurements.

For remaining securities priced using internal models, we maximize the use of observable inputs but typically utilize significant unobservable inputs to determine fair value. Accordingly, the valuations are typically classified as Level 3.

 

The following tables summarize the primary sources considered when determining fair value of each class of fixed maturity securities as of the dates indicated:

 

     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

U.S. government, agencies and government-sponsored enterprises:

           

Pricing services

   $ 3,669       $ —         $ 3,669       $ —     

Internal models

     13         —           —           13   
                                   

Total U.S. government, agencies and government-sponsored enterprises

     3,682         —           3,669         13   
                                   

Tax-exempt:

           

Pricing services

     865         —           865         —     
                                   

Total tax-exempt

     865         —           865         —     
                                   

Government—non-U.S.:

           

Pricing services

     2,378         —           2,378         —     

Internal models

     11         —           10         1   
                                   

Total government—non-U.S.

     2,389         —           2,388         1   
                                   

U.S. corporate:

           

Pricing services

     20,787         —           20,787         —     

Broker quotes

     277         —           —           277   

Internal models

     2,983         —           2,311         672   
                                   

Total U.S. corporate

     24,047         —           23,098         949   
                                   

Corporate—non-U.S.:

           

Pricing services

     12,568         —           12,568         —     

Broker quotes

     86         —           —           86   

Internal models

     1,774         —           1,489         285   
                                   

Total corporate—non-U.S.

     14,428         —           14,057         371   
                                   

Residential mortgage-backed:

           

Pricing services

     4,859         —           4,859         —     

Broker quotes

     63         —           —           63   

Internal models

     61         —           —           61   
                                   

Total residential mortgage-backed

     4,983         —           4,859         124   
                                   

Commercial mortgage-backed:

           

Pricing services

     3,678         —           3,678         —     

Broker quotes

     16         —           —           16   

Internal models

     27         —           —           27   
                                   

Total commercial mortgage-backed

     3,721         —           3,678         43   
                                   

Other asset-backed:

           

Pricing services

     1,840         —           1,840         —     

Broker quotes

     265         —           —           265   

Internal models

     1         —           1         —     
                                   

Total other asset-backed

     2,106         —           1,841         265   
                                   

Total fixed maturity securities

   $ 56,221       $ —         $ 54,455       $ 1,766   
                                   

 

     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

U.S. government, agencies and government-sponsored enterprises:

           

Pricing services

   $ 3,688       $ —         $ 3,688       $ —     

Internal models

     17         —           6         11   
                                   

Total U.S. government, agencies and government-sponsored enterprises

     3,705         —           3,694         11   
                                   

Tax-exempt:

           

Pricing services

     1,030         —           1,030         —     
                                   

Total tax-exempt

     1,030         —           1,030         —     
                                   

Government—non-U.S.:

           

Pricing services

     2,357         —           2,357         —     

Internal models

     12         —           11         1   
                                   

Total government—non-U.S.

     2,369         —           2,368         1   
                                   

U.S. corporate:

           

Pricing services

     20,563         —           20,563         —     

Broker quotes

     235         —           —           235   

Internal models

     3,169         —           2,304         865   
                                   

Total U.S. corporate

     23,967         —           22,867         1,100   
                                   

Corporate—non-U.S.:

           

Pricing services

     11,584         —           11,584         —     

Broker quotes

     113         —           —           113   

Internal models

     1,801         —           1,546         255   
                                   

Total corporate—non-U.S.

     13,498         —           13,130         368   
                                   

Residential mortgage-backed:

           

Pricing services

     4,312         —           4,312         —     

Broker quotes

     72         —           —           72   

Internal models

     71         —           —           71   
                                   

Total residential mortgage-backed

     4,455         —           4,312         143   
                                   

Commercial mortgage-backed:

           

Pricing services

     3,693         —           3,693         —     

Broker quotes

     16         —           —           16   

Internal models

     34         —           —           34   
                                   

Total commercial mortgage-backed

     3,743         —           3,693         50   
                                   

Other asset-backed:

           

Pricing services

     2,241         —           2,143         98   

Broker quotes

     169         —           —           169   

Internal models

     6         —           5         1   
                                   

Total other asset-backed

     2,416         —           2,148         268   
                                   

Total fixed maturity securities

   $ 55,183       $ —         $ 53,242       $ 1,941   
                                   

 

The following tables summarize the primary sources considered when determining fair value of equity securities as of the dates indicated:

 

     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 268       $ 260       $ 8       $ —     

Broker quotes

     6         —           —           6   

Internal models

     100         —           —           100   
                                   

Total equity securities

   $ 374       $ 260       $ 8       $ 106   
                                   
     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 245       $ 240       $ 5       $ —     

Broker quotes

     6         —           —           6   

Internal models

     81         —           —           81   
                                   

Total equity securities

   $ 332       $ 240       $ 5       $ 87   
                                   

The following tables summarize the primary sources considered when determining fair value of trading securities as of the dates indicated:

 

     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 316       $ —         $ 316       $ —     

Broker quotes

     291         —           —           291   
                                   

Total trading securities

   $ 607       $ —         $ 316       $ 291   
                                   
     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 348       $ —         $ 348       $ —     

Broker quotes

     230         —           —           230   

Internal models

     99         —           —           99   
                                   

Total trading securities

   $ 677       $ —         $ 348       $ 329   
                                   

Restricted other invested assets related to securitization entities

We have trading securities related to securitization entities that are classified as restricted other invested assets and are carried at fair value. The trading securities represent asset-backed securities. The valuation for trading securities is determined using a market approach and/or an income approach depending on the availability of information. For certain highly rated asset-backed securities, there is observable market information for transactions of the same or similar instruments and is provided to us by a third-party pricing service and is classified as Level 2. For certain securities that are not actively traded, we determine fair value after considering third-party broker provided prices or discounted expected cash flows using current yields for similar securities and classify these valuations as Level 3.

Securities lending and derivative counterparty collateral

The fair value of securities held as collateral is primarily based on Level 2 inputs from market information for the collateral that is held on our behalf by the custodian. We determine fair value after considering prices obtained by third-party pricing services.

         Separate account assets

The fair value of separate account assets is based on the quoted prices of the underlying fund investments and, therefore, represents Level 1 pricing.

Derivatives

In determining the fair value of derivatives, we consider the counterparty collateral arrangements and rights of set-off when determining whether any incremental adjustment should be made for both the counterparty's and our non-performance risk. As a result of these counterparty arrangements, we determined no adjustment for our non-performance risk was required to our derivative liabilities.

Interest rate swaps. The valuation of interest rate swaps is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2. For certain interest rate swaps, the inputs into the valuation also include the total returns of certain bonds that would primarily be considered an observable input and result in the derivative being classified as Level 2. For certain other swaps, there are features that provide an option to the counterparty to terminate the swap at specified dates and would be considered a significant unobservable input and results in the fair value measurement of the derivative being classified as Level 3.

Interest rate swaps related to securitization entities. The valuation of interest rate swaps related to securitization entities is determined using an income approach. The primary input into the valuation represents the forward interest rate swap curve, which is generally considered an observable input, and results in the derivative being classified as Level 2.

Inflation indexed swaps. The valuation of inflation indexed swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and consumer price index, which are generally considered observable inputs, and results in the derivative being classified as Level 2.

Interest rate swaptions. The valuation of interest rate swaptions is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, which is generally considered an observable input, forward interest rate volatility and time value component associated with the optionality in the derivative. As a result of the significant unobservable inputs associated with the forward interest rate volatility input, the derivative is classified as Level 3.

Foreign currency swaps. The valuation of foreign currency swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and foreign currency exchange rates, both of which are considered an observable input, and results in the derivative being classified as Level 2.

Credit default swaps. We have both single name credit default swaps and index tranche credit default swaps. For single name credit default swaps, we utilize an income approach to determine fair value based on using current market information for the credit spreads of the reference entity, which is considered observable inputs based on the reference entities of our derivatives and results in these derivatives being classified as Level 2. For index tranche credit default swaps, we utilize an income approach that utilizes current market information related to credit spreads and expected defaults and losses associated with the reference entities that comprise the respective index associated with each derivative. There are significant unobservable inputs associated with the timing and amount of losses from the reference entities as well as the timing or amount of losses, if any, that will be absorbed by our tranche. Accordingly, the index tranche credit default swaps are classified as Level 3.

Credit default swaps related to securitization entities. Credit default swaps related to securitization entities represent customized index tranche credit default swaps and are valued using a similar methodology as described above for index tranche credit default swaps. We determine fair value of these credit default swaps after considering both the valuation methodology described above as well as the valuation provided by the derivative counterparty. In addition to the valuation methodology and inputs described for index tranche credit default swaps, these customized credit default swaps contain a feature that permits the securitization entity to provide the par value of underlying assets in the securitization entity to settle any losses under the credit default swap. The valuation of this settlement feature is dependent upon the valuation of the underlying assets and the timing and amount of any expected loss on the credit default swap, which is considered a significant unobservable input. Accordingly, these customized index tranche credit default swaps related to securitization entities are classified as Level 3.

Equity index options. We have equity index options associated with various equity indices. The valuation of equity index options is determined using an income approach. The primary inputs into the valuation represent forward interest rate volatility and time value component associated with the optionality in the derivative, which are considered significant unobservable inputs in most instances. The equity index volatility surface is determined based on market information that is not readily observable and is developed based upon inputs received from several third-party sources. Accordingly, these options are classified as Level 3.

Financial futures. The fair value of financial futures is based on the closing exchange prices. Accordingly, these financial futures are classified as Level 1. The period end valuation is zero as a result of settling the margins on these contracts on a daily basis.

Equity return swaps. The valuation of equity return swaps is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve and underlying equity index values, which are generally considered observable inputs, and results in the derivative being classified as Level 2.

Other foreign currency contracts. We have certain foreign currency options classified as other foreign currency contracts. The valuation of foreign currency options is determined using an income approach. The primary inputs into the valuation represent the forward interest rate swap curve, foreign currency exchange rates, forward interest rate, foreign currency exchange rate volatility, foreign equity index volatility and time value component associated with the optionality in the derivative. As a result of the significant unobservable inputs associated with the forward interest rate, foreign currency exchange rate volatility and foreign equity index volatility inputs, the derivative is classified as Level 3. We also have foreign currency forward contracts where the valuation is determined using an income approach. The primary inputs into the valuation represent the forward foreign currency exchange rates, which are generally considered observable inputs and results in the derivative being classified as Level 2.

 

Reinsurance embedded derivatives

We have certain reinsurance agreements that result in a reinsurance counterparty holding assets for our benefit where this feature is considered an embedded derivative requiring bifurcation. As a result, we measure the embedded derivatives at fair value with changes in fair value being recorded in income (loss). Fair value is determined by comparing the fair value and cost basis of the underlying assets. The underlying assets are primarily comprised of highly rated investments and result in the fair value of the embedded derivatives being classified as Level 2.

GMWB embedded derivatives

We are required to bifurcate an embedded derivative for certain features associated with annuity products and related reinsurance agreements where we provide a GMWB to the policyholder and are required to record the GMWB embedded derivative at fair value. The valuation of our GMWB embedded derivative is based on an income approach that incorporates inputs such as forward interest rates, equity index volatility, equity index and fund correlation, and policyholder assumptions such as utilization, lapse and mortality. In addition to these inputs, we also consider risk and expense margins when determining the projected cash flows that would be determined by another market participant. While the risk and expense margins are considered in determining fair value, these inputs do not have a significant impact on the valuation.

For GMWB liabilities, non-performance risk is integrated into the discount rate. Prior to the third quarter of 2010, the discount rate was based on the swap curve, which incorporated the non-performance risk of our GMWB liabilities. Beginning in 2009, the swap curve dropped below the U.S. Treasury curve at certain points on the longer end of the curve, and in 2010, the points below the U.S. Treasury curve expanded to several points beyond 10 years. For these points on the curve, we utilized the U.S. Treasury curve as our discount rate through the second quarter of 2010. Beginning in the third quarter of 2010, we revised our discount rate to reflect market credit spreads that represent an adjustment for the non-performance risk of the GMWB liabilities. The credit spreads included in our discount rate range from 60 to 80 basis points over the most relevant points on the U.S. Treasury curve. As of June 30, 2011 and December 31, 2010, the impact of non-performance risk resulted in a lower fair value of our GMWB liabilities of $44 million.

To determine the appropriate discount rate to reflect the non-performance risk of the GMWB liabilities, we evaluate the non-performance risk in our liabilities based on a hypothetical exit market transaction as there is no exit market for these types of liabilities. A hypothetical exit market can be viewed as a hypothetical transfer of the liability to another similarly rated insurance company which would closely resemble a reinsurance transaction. Another hypothetical exit market transaction can be viewed as a hypothetical transaction from the perspective of the GMWB policyholder. We believe that a hypothetical exit market participant would use a similar discount rate as described above to value the liabilities.

For equity index volatility, we determine the projected equity market volatility using both historical volatility and projected near-term equity market volatility with more significance being placed on projected and recent historical data.

 

Equity index and fund correlations are determined based on historical price observations for the fund and equity index.

For policyholder assumptions, we use our expected lapse, mortality and utilization assumptions and update these assumptions for our actual experience, as necessary. For our lapse assumption, we adjust our base lapse assumption by policy based on a combination of the policyholder's current account value and GMWB benefit.

We classify the GMWB valuation as Level 3 based on having significant unobservable inputs. We evaluate the inputs and methodologies used to determine fair value based on how we expect a market participant would determine exit value. As stated above, there is no exit market or market participants for the GMWB embedded derivatives. Accordingly, we evaluate our inputs and resulting fair value based on a hypothetical exit market and hypothetical market participants. A hypothetical exit market could be viewed as a transaction that would closely resemble reinsurance. While reinsurance transactions for this type of product are not an observable input, we consider this type of hypothetical exit market, as appropriate, when evaluating our inputs and determining that our inputs are consistent with that of a hypothetical market participant.

Borrowings related to securitization entities

We record certain borrowings related to securitization entities at fair value. The fair value of these borrowings is determined using either a market approach or income approach, depending on the instrument and availability of market information. Given the unique characteristics of the securitization entities that issued these borrowings as well as the lack of comparable instruments, we determine fair value considering the valuation of the underlying assets held by the securitization entities and any derivatives, as well as any unique characteristics of the borrowings that may impact the valuation. After considering all relevant inputs, we determine fair value of the borrowings using the net valuation of the underlying assets and derivatives that are backing the borrowings. Accordingly, these instruments are classified as Level 3.

 

The following tables set forth our assets and liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

 

     June 30, 2011  

(Amounts in millions)

   Total     Level 1      Level 2     Level 3  

Assets

         

Investments:

         

Fixed maturity securities:

         

U.S. government, agencies and government-sponsored enterprises

   $ 3,682      $ —         $ 3,669      $ 13   

Tax-exempt

     865        —           865        —     

Government—non-U.S.

     2,389        —           2,388        1   

U.S. corporate

     24,047        —           23,098        949   

Corporate—non-U.S.

     14,428        —           14,057        371   

Residential mortgage-backed

     4,983        —           4,859        124   

Commercial mortgage-backed

     3,721        —           3,678        43   

Other asset-backed

     2,106        —           1,841        265   
                                 

Total fixed maturity securities

     56,221        —           54,455        1,766   
                                 

Equity securities

     374        260         8        106   
                                 

Other invested assets:

         

Trading securities

     607        —           316        291   

Derivative assets:

         

Interest rate swaps

     719        —           715        4   

Foreign currency swaps

     46        —           46        —     

Credit default swaps

     9        —           5        4   

Equity index options

     40        —           —          40   

Equity return swaps

     6        —           6        —     
                                 

Total derivative assets

     820        —           772        48   
                                 

Securities lending collateral

     554        —           554        —     

Derivatives counterparty collateral

     522        —           522        —     
                                 

Total other invested assets

     2,503        —           2,164        339   
                                 

Restricted other invested assets related to securitization entities

     378        —           203        175   

Other assets (1)

     (1     —           (1     —     

Reinsurance recoverable (2)

     (5     —           —          (5

Separate account assets

     11,452        11,452         —          —     
                                 

Total assets

   $ 70,922      $ 11,712       $ 56,829      $ 2,381   
                                 

Liabilities

         

Policyholder account balances (3)

   $ 113      $ —         $ —        $ 113   

Derivative liabilities:

         

Interest rate swaps

     87        —           87        —     

Interest rate swaps related to securitization entities

     18        —           18        —     

Inflation indexed swaps

     61        —           61        —     

Credit default swaps

     9        —           —          9   

Credit default swaps related to securitization entities

     126        —           —          126   

Equity return swaps

     1        —           1        —     

Other foreign currency contracts

     12        —           12        —     
                                 

Total derivative liabilities

     314        —           179        135   

Borrowings related to securitization entities

     58        —           —          58   
                                 

Total liabilities

   $ 485      $ —         $ 179      $ 306   
                                 

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(3) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

     December 31, 2010  

(Amounts in millions)

   Total     Level 1      Level 2      Level 3  

Assets

          

Investments:

          

Fixed maturity securities:

          

U.S. government, agencies and government-sponsored enterprises

   $ 3,705      $ —         $ 3,694       $ 11   

Tax-exempt

     1,030        —           1,030         —     

Government—non-U.S.

     2,369        —           2,368         1   

U.S. corporate

     23,967        —           22,867         1,100   

Corporate—non-U.S.

     13,498        —           13,130         368   

Residential mortgage-backed

     4,455        —           4,312         143   

Commercial mortgage-backed

     3,743        —           3,693         50   

Other asset-backed

     2,416        —           2,148         268   
                                  

Total fixed maturity securities

     55,183        —           53,242         1,941   
                                  

Equity securities

     332        240         5         87   
                                  

Other invested assets:

          

Trading securities

     677        —           348         329   

Derivative assets:

          

Interest rate swaps

     763        —           758         5   

Foreign currency swaps

     240        —           240         —     

Credit default swaps

     11        —           5         6   

Equity index options

     33        —           —           33   
                                  

Total derivative assets

     1,047        —           1,003         44   
                                  

Securities lending collateral

     772        —           772         —     

Derivatives counterparty collateral

     630        —           630         —     
                                  

Total other invested assets

     3,126        —           2,753         373   
                                  

Restricted other invested assets related to securitization entities

     370        —           199         171   

Other assets (1)

     1        —           1         —     

Reinsurance recoverable (2)

     (5     —           —           (5

Separate account assets

     11,666        11,666         —           —     
                                  

Total assets

   $ 70,673      $ 11,906       $ 56,200       $ 2,567   
                                  

Liabilities

          

Policyholder account balances (3)

   $ 121      $ —         $ —         $ 121   

Derivative liabilities:

          

Interest rate swaps

     138        —           138         —     

Interest rate swaps related to securitization entities

     19        —           19         —     

Inflation indexed swaps

     33        —           33         —     

Credit default swaps

     7        —           —           7   

Credit default swaps related to securitization entities

     129        —           —           129   

Equity index options

     3        —           —           3   

Equity return swaps

     3        —           3         —     
                                  

Total derivative liabilities

     332        —           193         139   

Borrowings related to securitization entities

     51        —           —           51   
                                  

Total liabilities

   $ 504      $ —         $ 193       $ 311   
                                  

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(3) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. Our assessment of whether or not there were significant unobservable inputs related to fixed maturity securities was based on our observations obtained through the course of managing our investment portfolio, including interaction with other market participants, observations related to the availability and consistency of pricing, and understanding of general market activity such as new issuance and the level of secondary market trading for a class of securities. Additionally, we considered data obtained from third-party pricing sources to determine whether our estimated values incorporate significant unobservable inputs that would result in the valuation being classified as Level 3.

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2011
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
in Level  3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total gains
(losses)
included in
net income
(loss)

attributable
to assets
still held
 
    Included in
net
income (loss)
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1      $ —        $ —        $ —        $ —        $ —        $ —        $ 12      $ —        $ 13      $ —     

Government—non-U.S.

    1        —          —          —          —          —          —          —          —          1        —     

U.S. corporate (1)

    715        4        9        27        (5     —          (18     236        (19     949        4   

Corporate—non-U.S. (1)

    202        1        —          15        (10     —          (2     165        —          371        1   

Residential mortgage-backed

    135        —          (10     3       —          —          (4     —          —          124        —     

Commercial mortgage-backed

    42        —          2        —          —          —          (1     —          —          43        —     

Other asset-backed

    263        —          7        —          —          —          (5     —          —          265        —     
                                                                                       

Total fixed maturity securities

    1,359        5        8        45        (15     —          (30     413        (19     1,766        5   
                                                                                       

Equity securities

    87        —          —          24        (5 )     —          —          —          —          106        —     
                                                                                       

Other invested assets:

                     

Trading securities

    338        7        —          —          (41 )     —          (13     —          —          291        7   

Derivative assets:

                     

Interest rate swaps

    3        1        —          —          —          —          —          —          —          4        1   

Credit default swaps

    6        (2     —          —          —          —          —          —          —          4        (2 )

Equity index options

    32        (8     —          15        —          —          1        —          —          40        (8
                                                                                       

Total derivative assets

    41        (9     —          15        —          —          1        —          —          48        (9
                                                                                       

Total other invested assets

    379        (2     —          15        (41     —          (12     —          —          339        (2
                                                                                       

Restricted other invested assets related to securitization entities

    175        —          —          —          —          —          —          —          —          175        —     

Reinsurance recoverable (2)

    (7     1        —          —          —          1        —          —          —          (5     1   
                                                                                       

Total Level 3 assets

  $ 1,993      $ 4      $ 8      $ 84     $ (61   $ 1      $ (42   $ 413      $ (19   $ 2,381      $ 4   
                                                                                       

(1) 

The transfers in and out of Level 3 were primarily related to private fixed rate U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations for transfers in or no longer having significant impact on certain valuations for transfers out.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

   Beginning
balance
as of
April 1,
2010
    Total realized and
unrealized gains
(losses)
     Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level  3  (1)
     Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2010
     Total gains
(losses)
included in
net income
(loss)

attributable
to assets
still held
 
     Included in
net  income
(loss)
    Included
in OCI
              

Fixed maturity securities:

                   

U.S. government, agencies and government- sponsored enterprises

   $ 8      $ —        $ —         $ (1   $ 6       $ (4   $ 9       $ —     

Tax-exempt

     2        —          —           —          —           (2     —           —     

Government—non-U.S.

     1        —          1         —          16         —          18         —     

U.S. corporate

     906        11        19         (29     653         (40     1,520         4   

Corporate—non-U.S.

     508        —          7         2        294         (91     720         —     

Residential mortgage- backed

     171        —          —           (26     1         (84     62         —     

Commercial mortgage- backed

     47        —          10         (1     11         (8     59         —     

Other asset-backed

     409        (8     2         (14     —           (28     361         (8
                                                                   

Total fixed maturity securities

     2,052        3        39         (69     981         (257     2,749         (4
                                                                   

Equity securities

     67        —          1         1        —           (60     9         —     
                                                                   

Other invested assets:

                   

Trading securities

     142        (7     —           1        —           —          136         (7

Derivative assets:

                   

Interest rate swaps

     4        5        —           —          —           —          9         5   

Interest rate swaptions

     14        24        —           (34     —           —          4         24   

Credit default swaps

     7        (7     —           —          —           —          —           (7

Equity index options

     34        46        —           17        —           —          97         46   

Other foreign currency contracts

     4        (3     —           —          —           —          1         (3
                                                                   

Total derivative assets

     63        65        —           (17     —           —          111         65   
                                                                   

Total other invested assets

     205        58        —           (16     —           —          247         58   
                                                                   

Restricted other invested assets related to securitization entities 

     174        (2     2         —          —           —          174         (2

Reinsurance recoverable (2)

     (6     15        —           —          —           —          9         15   
                                                                   

Total Level 3 assets

   $ 2,492      $ 74      $ 42       $ (84   $ 981       $ (317   $ 3,188       $ 67   
                                                                   

(1) 

The transfer into Level 3 was primarily related to private fixed U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of
January 1,
2011
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
in Level  3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total gains
(losses)
included in
net income
(loss)

attributable
to assets
still held
 
    Included in
net
income (loss)
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 11      $ —        $ —        $ —        $ —        $ —        $ —        $ 12      $ (10   $ 13      $ —     

Government—non-U.S.

    1        —          —          —          —          —          —          —          —          1        —     

U.S. corporate (1)

    1,100        8        6        30        (5     —          (63     252        (379     949        8   

Corporate—non-U.S. (1)

    368        (11     (3     40        (35     —          (7     205        (186     371        (10

Residential mortgage-backed

    143        (1     (8     3        —          —          (12     —          (1     124        (1

Commercial mortgage-backed

    50        —          2        —          —          —          (9     —          —          43        —     

Other asset-backed

    268        (1     9        8        (8     —          (26     15        —          265        (1
                                                                                       

Total fixed maturity securities

    1,941        (5     6        81        (48     —          (117     484        (576     1,766        (4
                                                                                       

Equity securities

    87        1        1        24        (5     —          (2     —          —          106        —     
                                                                                       

Other invested assets:

                     

Trading securities

    329        16        —          5        (41 )     —          (18     —          —          291        16  

Derivative assets:

                     

Interest rate swaps

    5        (1     —          —          —          —          —          —          —          4        (1

Credit default swaps

    6        (2     —          —          —          —          —          —          —          4        (2

Equity index options

    33        (27     —          39        —          —          (5     —          —          40        (27
                                                                                       

Total derivative assets

    44        (30     —          39        —          —          (5     —          —          48        (30
                                                                                       

Total other invested assets

    373        (14     —          44        (41     —          (23     —          —          339        (14
                                                                                       

Restricted other invested assets related to securitization entities

    171        4        —          —          —          —          —          —          —          175        4   

Reinsurance recoverable (2)

    (5     (2     —          —          —          2        —          —          —          (5     (2
                                                                                       

Total Level 3 assets

  $ 2,567      $ (16   $ 7      $ 149      $ (94   $ 2      $ (142 )   $ 484      $ (576   $ 2,381      $ (16
                                                                                       

(1) 

The transfers in and out of Level 3 were primarily related to private fixed rate U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations for transfers in or no longer having significant impact on certain valuations for transfers out.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

(Amounts in millions)

   Beginning
balance
as of
January 1,
2010
    Total realized and
unrealized gains
(losses)
     Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level  3 
     Transfer
out of
Level 3  (1)
    Ending
balance
as of
June 30,
2010
     Total gains
(losses)
included in
net income
(loss)

attributable
to assets
still held
 
     Included in
net income
(loss)
    Included
in OCI
              

Fixed maturity securities:

                   

U.S. government, agencies and government-sponsored enterprises

   $ 16      $ —        $ —         $ (2   $ 9       $ (14   $ 9       $ —     

Tax-exempt

     2        —          —           —          —           (2     —           —     

Government—non-U.S.

     7        —          1         —          16         (6     18         —     

U.S. corporate

     1,073        11        34         31        678         (307     1,520         8   

Corporate—non-U.S.

     504        1        8         11        353         (157     720         1   

Residential mortgage- backed

     1,481        —          3         80        1         (1,503     62         —     

Commercial mortgage- backed

     3,558        1        14         (63     11         (3,462     59         —     

Other asset-backed

     1,419        (24     23         (18     10         (1,049     361         (24
                                                                   

Total fixed maturity securities

     8,060        (11     83         39        1,078         (6,500     2,749         (15
                                                                   

Equity securities

     9        —          —           8        52         (60     9         —     
                                                                   

Other invested assets:

                   

Trading securities

     145        1        —           (10     —           —          136         1   

Derivative assets:

                   

Interest rate swaps

     3        6        —           —          —           —          9         6   

Interest rate swaptions

     54        15        —           (65     —           —          4         15   

Credit default swaps

     6        (6     —           —          —           —          —           (6

Equity index options

     39        22        —           36        —           —          97         22   

Other foreign currency contracts

     8        (7     —           —          —           —          1         (7
                                                                   

Total derivative assets

     110        30        —           (29     —           —          111         30   
                                                                   

Total other invested assets

     255        31        —           (39     —           —          247         31   
                                                                   

Restricted other invested assets related to securitization entities

     —          (2     2         —          174         —          174         (2

Reinsurance recoverable (2)

     (5     14        —           —          —           —          9         14   
                                                                   

Total Level 3 assets

   $ 8,319      $ 32      $ 85       $ 8      $ 1,304       $ (6,560   $ 3,188       $ 28   
                                                                   

(1) 

During 2010, primary market issuance and secondary market activity for commercial and non-agency residential mortgage-backed and other asset-backed securities increased the market observable inputs used to establish fair values for similar securities. These factors, along with more consistent pricing from third-party sources, resulted in our conclusion that there is sufficient trading activity in similar instruments to support classifying certain mortgage-backed and asset-backed securities as Level 2.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

 

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

(Amounts in millions)

  Beginning
balance
as of
April 1,
2011
    Total realized and
unrealized (gains)
losses
    Purchases     Sales     Issuances     Settlements     Transfer
in Level  3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total  (gains)
losses
included in
net (income)
loss

attributable
to liabilities
still held
 
    Included in
net  (income)
loss
    Included
in OCI
                 

Policyholder account balances (1)

  $ 69      $ 34      $ —        $ —        $ —        $ 10      $ —        $ —        $ —        $ 113      $ 34  

Derivative liabilities:

                     

Credit default swaps

    7        2        —          —          —          —          —          —          —          9        2   

Credit default swaps related to securitization entities

    120        6        —          —          —          —          —          —          —          126        6   
                                                                                       

Total derivative liabilities

    127        8        —          —          —          —          —          —          —          135        8   
                                                                                       

Borrowings related to securitization entities

    58        —          —          —          —          —          —          —          —          58        —     
                                                                                       

Total Level 3 liabilities

  $ 254      $ 42      $ —        $ —        $ —        $ 10      $ —        $ —        $ —        $ 306      $ 42   
                                                                                       

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

(Amounts in millions)

   Beginning
balance
as of
April 1,
2010
     Total realized and
unrealized (gains)
losses
     Purchases,
sales,
issuances

and
settlements,
net
    Transfer
in Level  3
     Transfer
out of
Level 3
     Ending
balance
as of
June 30,
2010
     Total  (gains)
losses
included in
net (income)
loss

attributable
to liabilities
still held
 
      Included in
net  (income)
loss
    Included
in OCI
               

Policyholder account balances (1)

   $ 145       $ 294      $ —         $ 8      $ —         $ —         $ 447       $ 294   

Derivative liabilities:

                     

Interest rate swaptions

     18         (10     —           (8     —           —           —           (10

Credit default swaps

     1         25        —           —          —           —           26         25   

Credit default swaps related to securitization entities (2)

     118         46        —           (5     —           —           159         46   

Equity index options

     4         (3     —           (1     —           —           —           (3
                                                                     

Total derivative liabilities

     141         58        —           (14     —           —           185         58   
                                                                     

Borrowings related to securitization entities

     58         (7     —           —          —           —           51         (6
                                                                     

Total Level 3 liabilities

   $ 344       $ 345      $ —         $ (6   $ —         $ —         $ 683       $ 346   
                                                                     

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of or for the dates indicated:

 

    Beginning
balance
as of
January 1,
2011
    Total realized and
unrealized (gains)
losses
                      Settlements     Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
    Purchases     Sales     Issuances            

Policyholder account balances (1)

  $ 121      $ (28   $ —        $ —        $ —        $ 20      $ —        $ —        $ —        $ 113      $ (27

Derivative liabilities:

                     

Credit default swaps

    7        —          —          3        —          —          (1     —          —          9        —     

Credit default swaps related to securitization entities

    129        (3     —          —          —          —          —          —          —          126        (3

Equity index options

    3        —          —          —          —          —          (3     —          —          —          —     
                                                                                       

Total derivative liabilities

    139        (3     —          3        —          —          (4     —          —          135        (3
                                                                                       

Borrowings related to securitization entities

    51        7        —          —          —          —          —          —          —          58        7   
                                                                                       

Total Level 3 liabilities

  $ 311      $ (24   $ —        $ 3      $ —        $ 20      $ (4   $ —        $ —        $ 306      $ (23
                                                                                       

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

 

    Beginning
balance
as of
January 1,
2010
    Total realized and
unrealized (gains)
losses
    Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2010
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
           

Policyholder account balances (1)

  $ 175      $ 255      $ —        $ 17      $ —        $ —        $ 447      $ 255   

Derivative liabilities:

               

Interest rate swaps

    2        (2     —          —          —          —          —          (2

Interest rate swaptions

    67        (42     —          (25     —          —          —          (42

Credit default swaps

    —          26        —          —          —          —          26        26   

Credit default swaps related to securitization entities

    —          41        —          (3     121        —          159        41   

Equity index options

    2        (1     —          (1     —          —          —          (1
                                                               

Total derivative liabilities

    71        22        —          (29     121        —          185        22   
                                                               

Borrowings related to securitization entities

    —          (8     —          —          59        —          51        (8
                                                               

Total Level 3 liabilities

  $ 246      $ 269      $ —        $ (12   $ 180      $ —        $ 683      $ 269   
                                                               

Realized and unrealized gains (losses) on Level 3 assets and liabilities are primarily reported in either net investment gains (losses) within the consolidated statements of income or OCI within stockholders' equity based on the appropriate accounting treatment for the instrument.

 

Purchases, sales, issuances and settlements represent the activity that occurred during the period that results in a change of the asset or liability but does not represent changes in fair value for the instruments held at the beginning of the period. Such activity primarily consists of purchases, sales and settlements of fixed maturity, equity and trading securities and purchases, issuances and settlements of derivative instruments.

Issuances and settlements presented for policyholder account balances represent the issuances and settlements of embedded derivatives associated with our GMWB liabilities where: issuances are characterized as the change in fair value associated with the product fees recognized that are attributed to the embedded derivative to equal the expected future benefit costs upon issuance and settlements are characterized as the change in fair value upon exercising the embedded derivative instrument, effectively representing a settlement of the embedded derivative instrument. We have shown these changes in fair value separately based on the classification of this activity as effectively issuing and settling the embedded derivative instrument with all remaining changes in the fair value of these embedded derivative instruments being shown separately in the category labeled "included in net (income) loss" in the tables presented above.

The amount presented for unrealized gains (losses) for assets and liabilities still held as of the reporting date primarily represents impairments for available-for-sale securities, changes in fair value of trading securities and certain derivatives and changes in fair value of embedded derivatives associated with our GMWB liabilities that existed as of the reporting date, which were recorded in net investment gains (losses), and accretion on certain fixed maturity securities which was recorded in net investment income.

Commitments and Contingencies
Commitments and Contingencies

(7) Commitments and Contingencies

(a) Litigation

We face the risk of litigation and regulatory investigations and actions in the ordinary course of operating our businesses, including class action lawsuits. Our pending legal and regulatory actions include proceedings specific to us and others generally applicable to business practices in the industries in which we operate. In our insurance operations, we are, have been, or may become subject to class actions and individual suits alleging, among other things, issues relating to sales or underwriting practices, increases to in-force long-term care insurance premiums, payment of contingent or other sales commissions, bidding practices in connection with our management and administration of a third-party's municipal guaranteed investment contract business, claims payments and procedures, product design, product disclosure, administration, additional premium charges for premiums paid on a periodic basis, denial or delay of benefits, charging excessive or impermissible fees on products, recommending unsuitable products to customers, our pricing structures and business practices in our mortgage insurance businesses, such as captive reinsurance arrangements with lenders and contract underwriting services, violations of the Real Estate Settlement and Procedures Act of 1974 or related state anti-inducement laws, and breaching fiduciary or other duties to customers. Plaintiffs in class action and other lawsuits against us may seek very large or indeterminate amounts which may remain unknown for substantial periods of time. In our investment-related operations, we are subject to litigation involving commercial disputes with counterparties. We are also subject to litigation arising out of our general business activities such as our contractual and employment relationships. In addition, we are also subject to various regulatory inquiries, such as information requests, subpoenas, books and record examinations and market conduct and financial examinations from state, federal and international regulators and other authorities. A substantial legal liability or a significant regulatory action against us could have an adverse effect on our financial condition and results of operations. Moreover, even if we ultimately prevail in the litigation, regulatory action or investigation, we could suffer significant reputational harm, which could have an adverse effect on our business, financial condition or results of operations. At this time, it is not feasible to predict, nor determine the ultimate outcomes of any pending investigations and legal proceedings, nor to provide reasonable ranges of possible losses.

 

On June 22, 2011, we received a subpoena from the office of the New York Attorney General, relating to an industry-wide investigation of unclaimed property and escheatment practices and procedures. In addition to the subpoena, other state regulators are conducting reviews and examinations on the same subject. We are cooperating with these requests and inquiries.

As previously disclosed, in December 2009, one of our non-insurance subsidiaries, one of the subsidiary's officers and Genworth Financial, Inc. were named in a putative class action lawsuit captioned Michael J. Goodman and Linda Brown v. Genworth Financial Wealth Management, Inc., et al, in the United States District Court for the Eastern District of New York. In response to our motion to dismiss the complaint in its entirety, the Court granted on March 30, 2011 the motion to dismiss the state law fiduciary duty claim and denied the motion to dismiss the remaining federal claims. We continue to vigorously defend this action.

(b) Commitments

As of June 30, 2011, we were committed to fund $90 million in limited partnership investments and $49 million in U.S. commercial mortgage loan investments.

Borrowings and Other Financings
Borrowings and Other Financings

(8) Borrowings and Other Financings

Revolving Credit Facilities

We have two five-year revolving credit facilities that mature in May 2012 and August 2012. These facilities bear variable interest rates based on one-month LIBOR plus a margin and we have access to $1.9 billion under these facilities. As of June 30, 2011, we had no borrowings under these facilities; however, we utilized $279 million under these facilities primarily for the issuance of letters of credit for the benefit of one of our life insurance subsidiaries. As of December 31, 2010, we had no borrowings under these facilities; however, we utilized $56 million under these facilities primarily for the issuance of letters of credit for the benefit of one of our lifestyle protection insurance subsidiaries.

Long-Term Notes

In June 2011, our indirect wholly-owned subsidiary, Genworth Financial Mortgage Insurance Pty Limited, issued AUD$140 million of subordinated floating rate notes due 2021 with an interest rate of three-month Bank Bill Swap reference rate plus a margin of 4.75%. Genworth Financial Mortgage Insurance Pty Limited expects to use the proceeds it receives from this transaction for general corporate purposes.

During the second quarter of 2011, we repaid ¥57.0 billion of senior notes that matured in June 2011, plus accrued interest. In addition, the arrangements to swap our obligations under these notes to a U.S. dollar obligation matured. These swaps had a notional principal amount of $491 million with interest at a rate of 4.84% per year. Upon maturity of these swaps, we received $212 million from the derivative counterparty resulting in a net repayment of $491 million of principal related to these notes.

In March 2011, we issued senior notes having an aggregate principal amount of $400 million, with an interest rate equal to 7.625% per year payable semi-annually, and maturing in September 2021 ("2021 Notes"). The 2021 Notes are our direct, unsecured obligations and will rank equally with all of our existing and future unsecured and unsubordinated obligations. We have the option to redeem all or a portion of the 2021 Notes at any time with proper notice to the note holders at a price equal to the greater of 100% of principal or the sum of the present value of the remaining scheduled payments of principal and interest discounted at the then-current treasury rate plus an applicable spread. The net proceeds of $397 million from the issuance of the 2021 Notes were used for general corporate purposes.

Mandatorily Redeemable Preferred Stock

On June 1, 2011, we redeemed all the remaining outstanding shares of the Series A Preferred Stock at a price of $50 per share, plus unpaid dividends accrued to the date of redemption, for $57 million.

Non-Recourse Funding Obligations

As of June 30, 2011, we had $3.4 billion of fixed and floating rate non-recourse funding obligations outstanding backing additional statutory reserves. In the second quarter of 2011, we repurchased principal of $57 million of notes secured by our non-recourse funding obligations, plus accrued interest, for a pre-tax gain of $17 million. As of June 30, 2011 and December 31, 2010, the weighted-average interest rates on our non-recourse funding obligations were 1.33% and 1.44%, respectively.

Income Taxes
Income Taxes

(9) Income Taxes

The reconciliation of the federal statutory tax rate to the effective income tax rate was as follows for the periods indicated:

 

     Three months ended
June  30,
    Six months ended
June  30,
 
     2011     2010     2011     2010  

Statutory U.S. federal income tax rate

     35.0     35.0     35.0     35.0

Increase (reduction) in rate resulting from:

        

State income tax, net of federal income tax effect

     (2.4     —          4.3        (2.1

Benefit on tax favored investments

     (0.4     (8.0     (4.5     (7.1

Effect of foreign operations

     (24.8     (33.7     (5.9     (21.3

Non-deductible expenses

     1.2        2.2        0.2        0.5   

Interest on uncertain tax positions

     (0.4     (2.4     0.4        (2.3

Tax benefits related to separation from our former parent

     —          —          —          (55.8

Other, net

     0.9       —          0.5        1.8   
                                

Effective rate

     9.1     (6.9 )%      30.0     (51.3 )% 
                                

For the three months ended June 30, 2011, the effective tax rate increased compared to the prior year primarily due to higher taxes in the current year as a result of a Canadian legislative change and an Australian tax legislation benefit in the prior year. The Canadian legislation change passed in June 2011 will eliminate the Canadian government guarantee fund. The elimination of the guarantee fund is expected to increase the effective tax rate on our U.S. GAAP earnings as prior deductions for contributions to the fund lowered the effective tax rate on U.S. GAAP earnings.

For the six months ended June 30, 2011, the effective tax rate increased from the prior year primarily due to changes in uncertain tax benefits related to our 2004 separation from our former parent, General Electric ("GE"). At the time of the separation, we made certain joint tax elections and realized certain tax benefits. During the first quarter of 2010, the Internal Revenue Service ("IRS") completed an examination of GE's 2004 tax return, including these tax impacts. Therefore, $106 million of previously uncertain tax benefits related to separation became certain and we recognized those in the first quarter of 2010. Additionally, we recorded $20 million as additional paid-in capital related to our 2004 separation. The effective tax rate also increased due to higher taxes in the current year pursuant to the Canadian legislative change as compared to an Australian tax legislative benefit in the prior year.

Segment Information
Segment Information

(10) Segment Information

We conduct our operations in three operating business segments: (1) Retirement and Protection, which includes our life insurance, long-term care insurance, wealth management products and services and retirement income products; (2) International, which includes international mortgage and lifestyle protection insurance; and (3) U.S. Mortgage Insurance.

We also have Corporate and Other activities which include interest and other debt financing expenses, other corporate income and expenses not allocated to the segments, the results of non-strategic products that are managed outside of our operating segments, and eliminations of inter-segment transactions.

We use the same accounting policies and procedures to measure segment income (loss) and assets as our consolidated net income (loss) and assets. Our chief operating decision maker evaluates segment performance and allocates resources on the basis of "net operating income (loss) available to Genworth Financial, Inc.'s common stockholders." We define net operating income (loss) available to Genworth Financial, Inc.'s common stockholders as income (loss) from continuing operations excluding net income attributable to noncontrolling interests, after-tax net investment gains (losses) and other adjustments and infrequent or unusual non-operating items. We exclude net investment gains (losses) and infrequent or unusual non-operating items because we do not consider them to be related to the operating performance of our segments and Corporate and Other activities. A component of our net investment gains (losses) is the result of impairments, the size and timing of which can vary significantly depending on market credit cycles. In addition, the size and timing of other investment gains (losses) can be subject to our discretion and are influenced by market opportunities, as well as asset-liability matching considerations. Infrequent or unusual non-operating items are also excluded from net operating income (loss) available to Genworth Financial, Inc.'s common stockholders if, in our opinion, they are not indicative of overall operating trends. While some of these items may be significant components of net income (loss) available to Genworth Financial, Inc.'s common stockholders in accordance with U.S. GAAP, we believe that net operating income (loss) available to Genworth Financial, Inc.'s common stockholders, and measures that are derived from or incorporate net operating income (loss) available to Genworth Financial, Inc.'s common stockholders, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. However, net operating income (loss) available to Genworth Financial, Inc.'s common stockholders is not a substitute for net income (loss) available to Genworth Financial, Inc.'s common stockholders determined in accordance with U.S. GAAP. In addition, our definition of net operating income (loss) available to Genworth Financial, Inc.'s common stockholders may differ from the definitions used by other companies.

 

There were no infrequent or unusual non-operating items excluded from net operating income (loss) available to Genworth Financial, Inc.'s common stockholders during the periods presented other than a $106 million tax benefit related to separation from our former parent recorded in the first quarter of 2010.

The following is a summary of revenues for our segments and Corporate and Other activities for the periods indicated:

 

     Three months ended
June  30,
    Six months ended
June  30,
 

(Amounts in millions)

   2011      2010     2011      2010  

Revenues:

          

Retirement and Protection

   $ 1,784       $ 1,643      $ 3,522       $ 3,236   

International

     658         622        1,290         1,273   

U.S. Mortgage Insurance

     170         181        347         362   

Corporate and Other

     43         (36     64         (40
                                  

Total revenues

   $ 2,655       $ 2,410      $ 5,223       $ 4,831   
                                  

The following is a summary of net operating income (loss) available to Genworth Financial, Inc.'s common stockholders for our segments and Corporate and Other activities and a reconciliation of net operating income (loss) available to Genworth Financial, Inc.'s common stockholders for our segments and Corporate and Other activities to net income (loss) for the periods indicated:

 

     Three months ended
June  30,
    Six months ended
June  30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Retirement and Protection's net operating income

   $ 149      $ 114      $ 276      $ 236   

International's net operating income

     107        105        231        196   

U.S. Mortgage Insurance's net operating loss

     (253     (40     (334     (76

Corporate and Other's net operating loss

     (77     (61     (149     (124
                                

Net operating income (loss) available to Genworth Financial, Inc.'s common stockholders

     (74     118        24        232   

Net investment gains (losses), net of taxes and other adjustments

     (22     (76     (38     (118

Net tax benefit related to separation from our former parent

     —          —          —          106   
                                

Net income (loss) available to Genworth Financial, Inc.'s common stockholders

     (96     42        (14     220   

Add: net income attributable to noncontrolling interests

     36        35        70        69   
                                

Net income (loss)

   $ (60   $ 77      $ 56      $ 289   
                                

The following is a summary of total assets for our segments and Corporate and Other activities as of the dates indicated:

 

(Amounts in millions)

   June 30,
2011
     December 31,
2010
 

Assets:

     

Retirement and Protection

   $ 87,119       $ 86,352   

International

     12,834         12,422   

U.S. Mortgage Insurance

     4,048         3,875   

Corporate and Other

     8,346         9,746   
                 

Total assets

   $ 112,347       $ 112,395   
                 
Liability For Policy And Contract Claims
Liability for Policy and Contract Claims

(11) Liability for Policy and Contract Claims

The following table sets forth changes in the liability for policy and contract claims for the dates indicated:

 

     As of or for the six
months ended
June 30,
 

(Amounts in millions)

   2011 (1)     2010 (2)  

Beginning balance

   $ 6,933      $ 6,567   

Less reinsurance recoverables

     (1,654     (1,769
  

 

 

   

 

 

 

Net beginning balance

     5,279        4,798   
  

 

 

   

 

 

 

Incurred related to insured events of:

    

Current year

     1,720        1,641   

Prior years

     494        120   
  

 

 

   

 

 

 

Total incurred

     2,214        1,761   
  

 

 

   

 

 

 

Paid related to insured events of:

    

Current year

     (475     (452

Prior years

     (1,373     (1,539
  

 

 

   

 

 

 

Total paid

     (1,848     (1,991
  

 

 

   

 

 

 

Interest on liability for policy and contract claims

     67        59   

Foreign currency translation

     37        (63
  

 

 

   

 

 

 

Net ending balance

     5,749        4,564   

Add reinsurance recoverables

     1,578        1,738   
  

 

 

   

 

 

 

Ending balance

   $ 7,327      $ 6,302   
  

 

 

   

 

 

 

(1) 

Current year reserves related to our U.S. Mortgage Insurance segment for the six months ended June 30, 2011 were reduced by loss mitigation activities of $22 million related to workouts, loan modifications and pre-sales. Loss mitigation actions related to prior year delinquencies resulted in a reduction of expected losses of $230 million to date, including $211 million related to workouts, loan modifications and pre-sales, and $19 million related to rescissions, net of reinstatements of $49 million.

(2) 

Current year reserves related to our U.S. Mortgage Insurance segment for the six months ended June 30, 2010 were reduced by loss mitigation activities of $97 million, including $94 million related to workouts, loan modifications and pre-sales, and $3 million related to rescissions, net of reinstatements. Loss mitigation actions related to prior year delinquencies resulted in a reduction of expected losses of $353 million to date, including $201 million related to workouts, loan modifications and pre-sales, and $152 million related to rescissions, net of reinstatements of $107 million.

We establish reserves for the ultimate cost of settling claims on reported and unreported insured events that have occurred on or before the respective reporting period. These liabilities are associated primarily with our mortgage, long-term care and lifestyle protection insurance products and represent our best estimates of the liabilities at the time based on known facts, historical trends of claim payments and other external factors, such as various trends in economic conditions, housing prices, employment rates, mortality, morbidity and medical costs.

While the liability for policy and contract claims represents our current best estimates, there may be additional adjustments to these amounts based on information and trends not presently known. Such adjustments, reflecting any variety of new and adverse or favorable trends, could possibly be significant, exceeding the currently recorded reserves by an amount that could be material to our results of operations, financial condition and liquidity. For example, in our U.S. mortgage insurance business, the amount and rate at which home prices, employment levels and cure rates for delinquent loans change could result in additional changes to reserves in future periods.

 

As of June 30, 2011, the increase in the ending liability for policy and contract claims was largely related to our U.S. Mortgage Insurance segment due to a reserve strengthening in the second quarter of 2011. In addition, our long-term care insurance business increased as a result of growth of the in-force block and claims experience including the severity and duration of existing claims.

During the six months ended June 30, 2011, we strengthened prior year reserves by $494 million as a result of changes in estimates related to prior year insured events and the development of information and trends not previously known when establishing the reserves in prior periods.

During the six months ended June 30, 2011, we increased prior year reserves in our U.S. Mortgage Insurance segment by $382 million from $2,282 million as of December 31, 2010. During the second quarter of 2011, we strengthened reserves by $299 million as a result of worsening trends in recent experience in the quarter as well as market trends in an environment of continuing weakness in the U.S. residential real estate market. These trends reflected a decline in cure rates in the second quarter of 2011 for delinquent loans and continued aging trends in the delinquent loan inventory. These trends were associated with a range of factors, including slow-moving pipelines of mortgages in some stage of foreclosure and delinquent loans under consideration for loan modifications. Specifically, reduced cure rates were driven by lower borrower self-cures and lower levels of lender loan modifications outside of government-sponsored modification programs. The decline in cure rates was also concentrated in earlier term delinquencies at a level higher than expected or historically experienced. In our U.S. Mortgage Insurance segment, loss mitigation actions that occurred during the six months ended June 30, 2011 resulted in a reduction of expected losses of $252 million.

During the six months ended June 30, 2011, we increased prior year claim reserves related to our long-term care insurance business by $144 million from $3,678 million as of December 31, 2010. In the current stressed economic environment, we have experienced an increase in severity and duration of claims associated with observed loss development which contributed to the reserve increase.

For our other businesses, the remaining favorable development during the six months ended June 30, 2011 related to refinements to our estimates as part of our reserving process on both reported and unreported insured events occurring in the prior year that were not significant.

As of June 30, 2010, the decrease in the ending liability for policy and contract claims was largely related to our U.S. Mortgage Insurance segment due principally to a substantial decrease in flow delinquencies, coupled with a settlement that was reached with a GSE counterparty regarding certain bulk Alt-A business in the first quarter of 2010. In our U.S. Mortgage Insurance segment, loss mitigation actions that occurred during the six months ended June 30, 2010 resulted in a reduction of expected losses of $450 million. Our international mortgage insurance business also decreased from favorable global economic and housing market conditions. These decreases were partially offset by an increase related to our long-term care insurance business as a result of growth of the in-force block and claims experience, including the severity and duration of existing claims.

During the six months ended June 30, 2010, we strengthened prior year reserves by $120 million primarily related to our long-term care insurance business. During the six months ended June 30, 2010, we increased prior year reserves in our long-term care insurance business by $109 million from $3,188 million as of December 31, 2009. We experienced an increase in severity and duration of claims associated with observed loss development which contributed to the reserve increase.

 

For our other businesses, the remaining unfavorable development during the six months ended June 30, 2010 related to refinements to our estimates as part of our reserving process on both reported and unreported insured events occurring in the prior year that were not significant.

Sale of Medicare Supplement Insurance Business
Sale of Medicare Supplement Insurance Business

(12) Sale of Medicare Supplement Insurance Business

In June 2011, we reached an agreement to sell our Medicare supplement insurance business for $290 million in cash, subject to customary adjustments based on the amount of capital in the business at closing. We expect to recognize a realized gain on the sale, with the closing of the sale expected to occur in the fourth quarter of 2011. Our Medicare supplement insurance business is included in our long-term care insurance business in our Retirement and Protection segment. The transaction includes the sale of Continental Life Insurance Company of Brentwood, Tennessee and its subsidiary, American Continental Insurance Company, and the reinsurance of the Medicare supplement insurance in-force business written by other Genworth life insurance subsidiaries.

Noncontrolling Interests
Noncontrolling Interests

(13) Noncontrolling Interests

In June 2011, Genworth MI Canada Inc. ("Genworth Canada"), our indirect subsidiary, repurchased approximately 6.2 million common shares for CAD$160 million through a substantial issuer bid. Brookfield Life Assurance Company Limited, our indirect wholly-owned subsidiary, participated in the issuer bid by making a proportionate tender and received CAD$90 million and continues to hold approximately 57.5% of the outstanding common shares of Genworth Canada.

Earnings (Loss) Per Share (Tables)
Earnings Per Share
Three months ended
June 30,
     Six months ended
June 30,
 

(Amounts in millions, except per share amounts)

       2011             2010          2011     2010  

Net income (loss)

   $ (60   $ 77       $ 56      $ 289   

Less: net income attributable to noncontrolling interests

     36        35         70        69   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders

   $ (96   $ 42       $ (14   $ 220   
                                 

Basic per common share:

         

Net income (loss)

   $ (0.12   $ 0.16       $ 0.11      $ 0.59   

Less: net income attributable to noncontrolling interests

     0.07        0.07         0.14        0.14   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders (1)

   $ (0.20   $ 0.09       $ (0.03   $ 0.45   
                                 

Diluted per common share:

         

Net income (loss)

   $ (0.12   $ 0.16       $ 0.11      $ 0.59   

Less: net income attributable to noncontrolling interests

     0.07        0.07         0.14        0.14   
                                 

Net income (loss) available to Genworth Financial, Inc.'s common stockholders (1)

   $ (0.20   $ 0.08       $ (0.03   $ 0.45   
                                 

Weighted-average shares used in basic earnings per common share calculations

     490.6        489.1         490.4        489.0   

Potentially dilutive securities:

         

Stock options, restricted stock units and stock appreciation rights

     —          5.1         —          4.9   
                                 

Weighted-average shares used in diluted earnings per common share calculations (2)

     490.6        494.2         490.4        493.9   
                                 

(1) 

May not total due to whole number calculation.

(2) 

Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, we were required to use basic weighted-average common shares outstanding in the calculation for the three and six months ended June 30, 2011 diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 3.7 million and 4.0 million, respectively, would have been antidilutive to the calculation. If we had not incurred a net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, 2011, dilutive potential common shares would have been 494.3 million and 494.4 million, respectively.

Investments (Tables)
3 Months Ended
Jun. 30, 2011
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Investments
 
 
 
Net Investment Income
 
 
Net Investment Gains (Losses)
 
 
Credit Losses Recognized in Net Income
 
 
Unrealized Investment Gains and Losses
 
 
Change in Net Unrealized Gains (Losses) on Available-for-Sale Investment Securities Reported in AOCI
 
Fixed Maturity and Equity Securities
 
Gross Unrealized Losses and Fair Values of Investment Securities
 
Fixed Maturity Securities More than 20% Below Cost and in a Continuous Loss Position for 12 Months or More by Asset Class
 
 
Corporate Debt Securities More than 20% Below Cost and in a Continuous Loss Position for 12 Months or More by Industry
 
 
Maturity Distribution of Fixed Maturity Securities
 
 
Commercial Mortgage Loans by Property Type
 
 
Commercial Mortgage Loans by Geographic Region
 
 
Aging of Past Due Commercial Mortgage Loans by Property Type
 
Nonaccrual Status of Commercial Mortgage Loans by Property Type
 
 
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans
 
 
Activity in Allowance for Losses During the Period
 
 
Impaired Commercial Mortgage Loans by Property Type
 
Average Loan-to-Value of Commercial Mortgage Loans by Property Type
 
Debt Service Coverage Ratio for Fixed Rate Commercial Mortgage Loans by Property Type
 
Debt Service Coverage Ratio for Floating Rate Commercial Mortgage Loans by Property Type
 
Restricted Commercial Mortgage Loans by Property Type
 
 
Restricted Commercial Mortgage Loans by Geographic Region
 
 
Average Loan-to-Value of Restricted Commercial Mortgage Loans by Property Type
 
Debt Service Coverage Ratio for Fixed Rate Restricted Commercial Mortgage Loans by Property Type
 
                                 
     Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Fixed maturity securities—taxable

   $ 693      $ 646      $ 1,363      $ 1,272   

Fixed maturity securities—non-taxable

     10        16        21        32   

Commercial mortgage loans

     92        99        184        203   

Restricted commercial mortgage loans related to securitization entities

     9        10        19        20   

Equity securities

     10        5        13        7   

Other invested assets

     55        39        89        37   

Restricted other invested assets related to securitization entities

     —          —          —          1   

Policy loans

     30        28        59        55   

Cash, cash equivalents and short-term investments

     6        4        12        9   
                                  

Gross investment income before expenses and fees

     905        847        1,760        1,636   

Expenses and fees

     (24     (24     (49     (48
                                  

Net investment income

   $ 881      $ 823      $ 1,711      $ 1,588   
                                  
   Three months ended
June 30,
    Six months ended
June 30,
 

(Amounts in millions)

        2011              2010           2011         2010    

Available-for-sale securities:

        

Realized gains

   $ 25      $ 53      $ 54      $ 76   

Realized losses

     (34     (36     (65     (74
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized gains (losses) on available-for-sale securities

     (9     17        (11     2   
  

 

 

   

 

 

   

 

 

   

 

 

 

Impairments:

        

Total other-than-temporary impairments

     (28     (24     (59     (101

Portion of other-than-temporary impairments included in other comprehensive income (loss)

     2        (27     (3     (30
  

 

 

   

 

 

   

 

 

   

 

 

 

Net other-than-temporary impairments

     (26     (51     (62     (131
  

 

 

   

 

 

   

 

 

   

 

 

 

Trading securities

     14        (4     25        2   

Commercial mortgage loans

     2        (18     1        (22

Net gains (losses) related to securitization entities

     (5     (47     5        (36

Derivative instruments (1)

     (15     (38     (25     (46

Other

     (1     2        (1     22   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment gains (losses)

   $ (40   $ (139   $ (68   $ (209
  

 

 

   

 

 

   

 

 

   

 

 

 

(1) 

See note 5 for additional information on the impact of derivative instruments included in net investment gains (losses).

                                 
     As of or for the
three months ended
June 30,
    As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Beginning balance

   $ 755      $ 1,025      $ 784      $ 1,059   

Additions:

                                

Other-than-temporary impairments not previously recognized

     1        11        4        31   

Increases related to other-than-temporary impairments previously recognized

     17        32        48        78   

Reductions:

                                

Securities sold, paid down or disposed

     (47     (90     (110     (190
                                  

Ending balance

   $ 726      $ 978      $ 726      $ 978   
                                  
                 

(Amounts in millions)

   June 30, 2011     December 31, 2010  

Net unrealized gains (losses) on investment securities:

                

Fixed maturity securities

   $ 1,141      $ 511   

Equity securities

     21        9   

Other invested assets

     (24     (22
                  

Subtotal

     1,138        498   

Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves

     (694     (583

Income taxes, net

     (153     35   
                  

Net unrealized investment gains (losses)

     291        (50

Less: net unrealized investment gains (losses) attributable to noncontrolling interests

     55        50   
                  

Net unrealized investment gains (losses) attributable to Genworth Financial, Inc.

   $ 236      $ (100
                  
                 
     As of or for the
three months ended
June 30,
 

(Amounts in millions)

   2011     2010  

Beginning balance

   $ (37   $ (860

Unrealized gains (losses) arising during the period:

                

Unrealized gains (losses) on investment securities

     555        1,498   

Adjustment to deferred acquisition costs

     (36     (80

Adjustment to present value of future profits

     (15     (51

Adjustment to sales inducements

     (3     (10

Adjustment to benefit reserves

     (94     —     

Provision for income taxes

     (142     (480
                  

Change in unrealized gains (losses) on investment securities

     265        877   

Reclassification adjustments to net investment (gains) losses, net of taxes of $(13) and $(11)

     22        22   
                  

Change in net unrealized investment gains (losses)

     287        899   

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     14        10   
                  

Ending balance

   $ 236      $ 29   
                  
                 
     As of or for the
six months ended
June 30,
 

(Amounts in millions)

   2011     2010  

Beginning balance

   $ (100   $ (1,398

Cumulative effect of change in accounting

             91   

Unrealized gains (losses) arising during the period:

                

Unrealized gains (losses) on investment securities

     567        2,261   

Adjustment to deferred acquisition costs

     (57     (193

Adjustment to present value of future profits

     (16     (81

Adjustment to sales inducements

     (7     (26

Adjustment to benefit reserves

     (31     —     

Provision for income taxes

     (162     (700
                  

Change in unrealized gains (losses) on investment securities

     294        1,261   

Reclassification adjustments to net investment (gains) losses, net of taxes of $(26) and $(45)

     47        84   
                  

Change in net unrealized investment gains (losses)

     341        1,436   

Less: change in net unrealized investment gains (losses) attributable to noncontrolling interests

     5        9   
                  

Ending balance

   $ 236      $ 29   
                  
                                                 

(Amounts in millions)

   Amortized
cost or
cost
     Gross unrealized gains      Gross unrealized losses     Fair
value
 
      Not  other-than-
temporarily
impaired
     Other-than-
temporarily
impaired
     Not  other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
   

Fixed maturity securities:

                                                   

U.S. government, agencies and government-sponsored enterprises

   $ 3,548       $ 153       $ —         $ (19   $ —        $ 3,682   

Tax-exempt

     940         19         —           (94     —          865   

Government—non-U.S.

     2,265         128         —           (4     —          2,389   

U.S. corporate

     23,081         1,260         13         (307     —          24,047   

Corporate—non-U.S.

     14,038         530         —           (139     (1     14,428   

Residential mortgage-backed

     5,252         174         15         (268     (190     4,983   

Commercial mortgage-backed

     3,767         135         6         (153     (34     3,721   

Other asset-backed

     2,172         22         —           (86     (2     2,106   
                                                     

Total fixed maturity securities

     55,063         2,421         34         (1,070     (227     56,221   

Equity securities

     352         25         —           (3     —          374   
                                                     

Total available-for-sale securities

   $ 55,415       $ 2,446       $ 34       $ (1,073   $ (227   $ 56,595   
                                                     
                                                 

(Amounts in millions)

   Amortized
cost or
cost
     Gross unrealized gains      Gross unrealized losses     Fair
value
 
      Not  other-than-
temporarily
impaired
     Other-than-
temporarily
impaired
     Not  other-than-
temporarily
impaired
    Other-than-
temporarily
impaired
   

Fixed maturity securities:

                                                   

U.S. government, agencies and government-sponsored enterprises

   $ 3,568       $ 145       $ —         $ (8   $ —        $ 3,705   

Tax-exempt

     1,124         19         —           (113     —          1,030   

Government—non-U.S.

     2,257         118         —           (6     —          2,369   

U.S. corporate

     23,282         1,123         10         (448     —          23,967   

Corporate—non-U.S.

     13,180         485         —           (167     —          13,498   

Residential mortgage-backed

     4,821         116         18         (304     (196     4,455   

Commercial mortgage-backed

     3,936         132         6         (286     (45     3,743   

Other asset-backed

     2,494         18         —           (94     (2     2,416   
                                                     

Total fixed maturity securities

     54,662         2,156         34         (1,426     (243     55,183   

Equity securities

     323         13         —           (4     —          332   
                                                     

Total available-for-sale securities

   $ 54,985       $ 2,169       $ 34       $ (1,430   $ (243   $ 55,515   
                                                     

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(1)
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(2)
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 1,002      $ (19     43      $ —        $ —          —        $ 1,002      $ (19     43   

Tax-exempt

    114        (3     31        253        (91     88        367        (94     119   

Government—non-U.S.

    189        (3     58        11        (1     5        200        (4     63   

U.S. corporate

    2,933        (94     337        1,712        (213     150        4,645        (307     487   

Corporate—non-U.S.

    1,896        (65     276        854        (75     78        2,750        (140     354   

Residential mortgage-backed

    450        (19     92        884        (439     373        1,334        (458     465   

Commercial mortgage-backed

    361        (17     51        1,034        (170     180        1,395        (187     231   

Other asset-backed

    113        (5     20        343        (83     39        456        (88     59   
                                                                       

Subtotal, fixed maturity securities

    7,058        (225     908        5,091        (1,072     913        12,149        (1,297     1,821   

Equity securities

    83        (2     54        10        (1     10        93        (3     64   
                                                                       

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                       

% Below cost—fixed maturity securities:

                 

<20% Below cost

  $ 6,969      $ (190     883      $ 3,966      $ (354     544      $ 10,935      $ (544     1,427   

20%-50% Below cost

    89        (34     20        986        (432     249        1,075        (466     269   

>50% Below cost

    —          (1     5        139        (286     120        139        (287     125   
                                                                       

Total fixed maturity securities

    7,058        (225     908        5,091        (1,072     913        12,149        (1,297     1,821   
                                                                       

% Below cost—equity securities:

                 

<20% Below cost

    78        (1     53        10        (1     10        88        (2     63   

20%-50% Below cost

    5        (1     1        —          —          —          5        (1     1   

>50% Below cost

    —          —          —          —          —          —          —          —          —     
                                                                       

Total equity securities

    83        (2     54        10        (1     10        93        (3     64   
                                                                       

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                       

Investment grade

  $ 6,837      $ (217     863      $ 3,616      $ (505     527      $ 10,453      $ (722     1,390   

Below investment grade (3)

    304        (10     99        1,485        (568     396        1,789        (578     495   
                                                                       

Total for securities in an unrealized loss position

  $ 7,141      $ (227     962      $ 5,101      $ (1,073     923      $ 12,242      $ (1,300     1,885   
                                                                       

(1) 

Amounts included $222 million of unrealized losses on other-than-temporarily impaired securities.

(2) 

Amounts included $227 million of unrealized losses on other-than-temporarily impaired securities.

(3) 

Amounts that have been in a continuous loss position for 12 months or more included $208 million of unrealized losses on other-than-temporarily impaired securities.

    Less than 12 months     12 months or more     Total  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(1)
    Number of
securities
    Fair
value
    Gross
unrealized
losses
(2)
    Number of
securities
 

Description of Securities

                 

Fixed maturity securities:

                 

U.S. government, agencies and government-sponsored enterprises

  $ 545      $ (8     36      $ —        $ —          —        $ 545      $ (8     36   

Tax-exempt

    285        (12     101        244        (101     90        529        (113     191   

Government—non-U.S.

    431        (5     69        21        (1     7        452        (6     76   

U.S. corporate

    3,615        (125     443        2,338        (323     191        5,953        (448     634   

Corporate—non-U.S.

    2,466        (53     296        1,141        (114     102        3,607        (167     398   

Residential mortgage-backed

    461        (23     92        1,031        (477     416        1,492        (500     508   

Commercial mortgage-backed

    177        (8     26        1,167        (323     225        1,344        (331     251   

Other asset-backed

    401        (2     37        512        (94     53        913        (96     90   
                                                                       

Subtotal, fixed maturity securities

    8,381        (236     1,100        6,454        (1,433     1,084        14,835        (1,669     2,184   

Equity securities

    77        (3     48        5        (1     4        82        (4     52   
                                                                       

Total for securities in an unrealized loss position

  $ 8,458      $ (239     1,148      $ 6,459      $ (1,434     1,088      $ 14,917      $ (1,673     2,236   
                                                                       

% Below cost—fixed maturity securities:

                 

<20% Below cost

  $ 8,359      $ (226     1,076      $ 4,852      $ (418     588      $ 13,211      $ (644     1,664   

20%-50% Below cost

    22        (8     18        1,428        (652     328        1,450        (660     346   

>50% Below cost

    —          (2     6        174        (363     168        174        (365     174   
                                                                       

Total fixed maturity securities

    8,381        (236     1,100        6,454        (1,433     1,084        14,835        (1,669     2,184   
                                                                       

% Below cost—equity securities:

                 

<20% Below cost

    72        (2     47        5        (1     4        77        (3     51   

20%-50% Below cost

    5       (1 )     1        —          —          —          5       (1 )     1  
                                                                       

Total equity securities

    77        (3     48        5        (1     4        82        (4     52   
                                                                       

Total for securities in an unrealized loss position

  $ 8,458      $ (239     1,148      $ 6,459      $ (1,434     1,088      $ 14,917      $ (1,673     2,236   
                                                                       

Investment grade

  $ 8,249      $ (231     1,060      $ 4,850      $ (764     683      $ 13,099      $ (995     1,743   

Below investment grade (3)

    209        (8     88        1,609        (670     405        1,818        (678     493   
                                                                       

Total for securities in an unrealized loss position

  $ 8,458      $ (239     1,148      $ 6,459      $ (1,434     1,088      $ 14,917      $ (1,673     2,236   
                                                                       

(1) 

Amounts included $240 million of unrealized losses on other-than-temporarily impaired securities.

(2) 

Amounts included $243 million of unrealized losses on other-than-temporarily impaired securities.

(3) 

Amounts that have been in a continuous loss position for 12 months or more included $213 million of unrealized losses on other-than-temporarily impaired securities.

    Investment Grade  
    20% to 50%     Greater than 50%  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
 

Fixed maturity securities:

               

Tax-exempt

  $ 184      $ (78     6     55      $ —        $ —          —       —     

Government—non-U.S.

    2        (1     —          1        —          —          —          —     

U.S. corporate

    77        (30     2        4        14        (26     2        1   

Corporate—non-U.S.

    66        (20     2        4        —          —          —          —     

Structured securities:

               

Residential mortgage-backed

    56        (23     2        21        12        (27     2        14   

Commercial mortgage-backed

    80        (30     2        9        2        (3     —          5   

Other asset-backed

    4        (1     —          1       1        (1     —          1   
                                                               

Total structured securities

    140        (54     4        31        15        (31     2        20   
                                                               

Total

  $ 469      $ (183     14     95      $ 29      $ (57     4     21   
                                                               

 

    Below Investment Grade  
    20% to 50%     Greater than 50%  

(Dollar amounts in millions)

  Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
    Fair
value
    Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number of
securities
 

Fixed maturity securities:

               

Tax-exempt

  $ —        $ —          —       —        $ —        $ —          —       —     

U.S. corporate

    14        (6     —          2        —          —          —          —     

Structured securities:

               

Residential mortgage-backed

    342        (168     13       124        82        (184     14        81   

Commercial mortgage-backed

    61        (22     2        23        17        (33     3        16   

Other asset-backed

    100        (53     4        5        11        (12     1        2   
                                                               

Total structured securities

    503        (243     19        152        110        (229     18        99   
                                                               

Total

  $ 517      $ (249     19     154      $ 110      $ (229     18     99   
                                                               
                                                                 
     Investment Grade  
     20% to 50%      Greater than 50%  

(Dollar amounts in millions)

   Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
     Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
 

Industry:

                                                                   

Finance and insurance

   $ 139       $ (49     4     7       $ —         $ —          —       —     

Transportation

     —           —          —          —           14         (26     2        1   

Other

     4         (1     —          1         —           —          —          —     
                                                                     

Total

   $ 143       $ (50     4     8       $ 14       $ (26     2     1   
                                                                     
   
     Below Investment Grade  
     20% to 50%      Greater than 50%  

(Dollar amounts in millions)

   Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
     Fair
value
     Gross
unrealized
losses
    % of total
gross
unrealized
losses
    Number  of
securities
 

Industry:

                                                                   

Finance and insurance

   $ 14       $ (6     —       2       $ —         $ —          —       —     

Consumer – cyclical

     —           —          —          —           —           —          —          —     

Transportation

     —           —          —          —           —           —          —          —     
                                                                     

Total

   $ 14       $ (6     —       2       $ —         $ —          —       —     
                                                                     
                 

(Amounts in millions)

   Amortized
cost or
cost
     Fair
value
 

Due one year or less

   $ 2,831       $ 2,857   

Due after one year through five years

     11,766         12,103   

Due after five years through ten years

     9,570         10,031   

Due after ten years

     19,705         20,420   
                   

Subtotal

     43,872         45,411   

Residential mortgage-backed

     5,252         4,983   

Commercial mortgage-backed

     3,767         3,721   

Other asset-backed

     2,172         2,106   
                   

Total

   $ 55,063       $ 56,221   
                   
     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

        

Retail

   $ 1,912        30   $ 1,974        29

Office

     1,757        27        1,850        27   

Industrial

     1,753        27        1,788        26   

Apartments

     718        11        725        11   

Mixed use/other

     345        5        435        7   
                                

Subtotal

     6,485        100     6,772        100
                    

Unamortized balance of loan origination fees and costs

     4          5     

Allowance for losses

     (57       (59  
                    

Total

   $ 6,432        $ 6,718     
                    

 

   June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

        

South Atlantic

   $ 1,624        25   $ 1,583        23

Pacific

     1,615        25        1,769        26   

Middle Atlantic

     865        13        937        14   

East North Central

     577        9        612        9   

Mountain

     516        8        540        8   

New England

     422        7        482        7   

West North Central

     349        5        369        6   

West South Central

     348        5        297        4   

East South Central

     169        3        183        3   
                                

Subtotal

     6,485        100     6,772        100
                    

Unamortized balance of loan origination fees and costs

     4          5     

Allowance for losses

     (57       (59  
                    

Total

   $ 6,432        $ 6,718     
                    

     June 30, 2011  

(Amounts in millions)

   31 – 60 days
past due
    61 – 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ 9      $ —        $ 5     $ 14      $ 1,898      $ 1,912   

Office

     4        —          18        22        1,735        1,757   

Industrial

     2        —          10        12        1,741        1,753   

Apartments

     —          —          —          —          718        718   

Mixed use/other

     —          —          —          —          345        345   
                                                

Total recorded investment

   $ 15      $ —        $ 33      $ 48      $ 6,437      $ 6,485   
                                                

% of total commercial mortgage loans

     —       —       1     1     99     100
                                                
   December 31, 2010  

(Amounts in millions)

   31 – 60 days
past due
    61 – 90 days
past due
    Greater than
90 days past
due
    Total
past due
    Current     Total  

Property type:

            

Retail

   $ —        $ —        $ —        $ —        $ 1,974      $ 1,974   

Office

     —          —          12        12        1,838        1,850   

Industrial

     —          6        27        33        1,755        1,788   

Apartments

     —          —          —          —          725        725   

Mixed use/other

     —          —          —          —          435        435   
                                                

Total recorded investment

   $ —        $ 6      $ 39      $ 45      $ 6,727      $ 6,772   
                                                

% of total commercial mortgage loans

     —       —       1     1     99     100
                                                
                 

(Amounts in millions)

   June 30,
2011
     December 31,
2010
 

Property type:

                 

Retail

   $ 5       $ —     

Office

     18         12   

Industrial

     10         27   

Apartments

     —           —     

Mixed use/other

     —           —     
                   

Total recorded investment

   $ 33       $ 39   
                   
                 

(Amounts in millions)

   Three months ended
June  30, 2011
    Six months ended
June  30, 2011
 

Allowance for credit losses:

                

Beginning balance

   $ 58      $ 59   

Charge-offs

     (4     (5

Recoveries

     —          —     

Provision

     3        3   
                  

Ending balance

   $ 57      $ 57   
                  

Ending allowance for individually impaired loans

   $ —        $ —     
                  

Ending allowance for loans not individually impaired that were evaluated collectively for impairment

   $ 57      $ 57   
                  
     

Recorded investment:

                

Ending balance

   $ 6,485      $ 6,485   
                  

Ending balance of individually impaired loans

   $ 13      $ 13   
                  

Ending balance of loans not individually impaired that were evaluated collectively for impairment

   $ 6,472      $ 6,472   
                  

     June 30, 2011  

(Amounts in millions)

   Recorded
investment
     Unpaid
principal
balance
     Charge-
offs
     Related
allowance
     Average
recorded
investment
     Interest
income
recognized
 

Property type:

                 

Retail

   $ 3       $ 4       $ 1       $ —         $ 2       $ —     

Office

     10         13         3         —         $ 10         —     

Industrial

     —           —           —           —         $ —           —     

Apartments

     —           —           —           —         $ —           —     

Mixed use/other

     —           —           —           —         $ —           —     
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

 

Total

   $ 13       $ 17       $ 4       $ —         $ 6       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

 

     December 31, 2010  

(Amounts in millions)

   Recorded
investment
     Unpaid
principal
balance
     Charge-
offs
     Related
allowance
     Average
recorded
investment
     Interest
income
recognized
 

Property type:

                 

Retail

   $ 5       $ 8       $ 3       $ —         $ 2       $ —     

Office

     6         8         2         —         $ 2         —     

Industrial

     19         24         5         —         $ 3         —     

Apartments

     —           —           —           —         $ —           —     

Mixed use/other

     —           —           —           —         $ —           —     
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

 

Total

   $ 30       $ 40       $ 10       $ —         $ 3       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

       

 

 

 

     June 30, 2011  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100% 
(1)
    Total  

Property type:

            

Retail

   $ 458      $ 247      $ 847      $ 322      $ 38      $ 1,912   

Office

     321        294        605        365        172        1,757   

Industrial

     498        329        613        283        30        1,753   

Apartments

     147        191        304        61        15        718   

Mixed use/other

     83        40        72        140        10        345   
                                                

Total recorded investment

   $ 1,507      $ 1,101      $ 2,441      $ 1,171      $ 265      $ 6,485   
                                                

% of total

     23     17     38     18     4     100
                                                

Weighted-average debt service coverage ratio

     2.28        1.86        2.16        1.80        1.56        2.05   
                                                

(1) 

Included $13 million of impaired loans and $252 million of loans in good standing, with a total weighted-average loan-to-value of 119%, where borrowers continued to make timely payments and have no history of delinquencies or distress.

     December 31, 2010  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100% 
(1)
    Total  

Property type:

            

Retail

   $ 477      $ 287      $ 805      $ 363      $ 42      $ 1,974   

Office

     320        327        612        446        145        1,850   

Industrial

     431        361        625        284        87        1,788   

Apartments

     99        172        321        133        —          725   

Mixed use/other

     123        10        63        221        18        435   
                                                

Total recorded investment

   $ 1,450      $ 1,157      $ 2,426      $ 1,447      $ 292      $ 6,772   
                                                

% of total

     22     17     36     21     4     100
                                                

Weighted-average debt service coverage ratio

     2.24        1.99        1.79        2.42        0.75        2.01   
                                                

(1) 

Included $25 million of impaired loans and $267 million of loans in good standing, with a total weighted-average loan-to-value of 117%, where borrowers continued to make timely payments and have no history of delinquencies or distress.

   June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

            

Retail

   $ 92      $ 357      $ 412      $ 587      $ 352      $ 1,800   

Office

     194        135        268        432        553        1,582   

Industrial

     242        226        316        596        355        1,735   

Apartments

     12        91        79        301        168        651   

Mixed use/other

     56        17        11        71        91        246   
                                                

Total recorded investment

   $ 596      $ 826      $ 1,086      $ 1,987      $ 1,519      $ 6,014   
                                                

% of total

     10     14     18     33     25     100
                                                

Weighted-average loan-to-value

     84     72     66     60     51     63
                                                

   December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

            

Retail

   $ 125      $ 317      $ 490      $ 512      $ 415      $ 1,859   

Office

     176        186        238        524        547        1,671   

Industrial

     260        166        292        698        346        1,762   

Apartments

     7        62        160        290        135        654   

Mixed use/other

     49        12        17        78        94        250   
                                                

Total

   $ 617      $ 743      $ 1,197      $ 2,102      $ 1,537      $ 6,196   
                                                

% of total recorded investment

     10     12     19     34     25     100
                                                

Weighted-average loan-to-value

     90     71     68     62     50     64
                                                

     June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ —        $ —        $ 1     $ —        $ 111      $ 112   

Office

     —          —          8       —          167        175   

Industrial

     1        —          —          6        11        18   

Apartments

     —          —          —          29        38        67   

Mixed use/other

     —          4        —          —          95        99   
                                                

Total recorded investment

   $ 1      $ 4      $ 9     $ 35      $ 422      $ 471   
                                                

% of total

     —       1     2     7     90     100
                                                

Weighted-average loan-to-value

     47     77     26     77     79     77
                                                

   December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater than
2.00
    Total  

Property type:

            

Retail

   $ —        $ —        $ —        $ 2      $ 113      $ 115   

Office

     —          —          —          57        122        179   

Industrial

     1        5        —          1        19        26   

Apartments

     —          4        —          21        46        71   

Mixed use/other

     —          —          —          —          185        185   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recorded investment

   $ 1      $ 9      $ —        $ 81      $ 485      $ 576   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

% of total

     —       2     —       14     84     100
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average loan-to-value

     30     62     —       83     77     78
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

     June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Property type:

        

Retail

   $ 175        38   $ 182        36

Industrial

     113        24        124        24   

Office

     101        22        117        23   

Apartments

     62        14        64        13   

Mixed use/other

     8        2        22        4   
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     459        100     509        100
    

 

 

     

 

 

 

Allowance for losses

     (2       (2  
  

 

 

     

 

 

   

Total

   $ 457        $ 507     
  

 

 

     

 

 

   
   June 30, 2011     December 31, 2010  

(Amounts in millions)

   Carrying
value
    % of
total
    Carrying
value
    % of
total
 

Geographic region:

        

South Atlantic

   $ 160        35   $ 189        37

Pacific

     77        17        90        18   

Middle Atlantic

     71        15        70        14   

East North Central

     48        10        51        10   

Mountain

     31        7        32        6   

East South Central

     30        7        32        6   

West North Central

     29        6        31        6   

West South Central

     12        3        13        3   

New England

     1        —          1        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Subtotal

     459        100     509        100
    

 

 

     

 

 

 

Allowance for losses

     (2       (2  
  

 

 

     

 

 

   

Total

   $ 457        $ 507     
  

 

 

     

 

 

   

 

                                                 
     June 30, 2011  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100%
    Total  

Property type:

                                                

Retail

   $ 147      $ 25      $ —        $ —        $ 3      $ 175   

Industrial

     97        8        6        —          2        113   

Office

     87        7        5        1        1        101   

Apartments

     34        9        —          19        —          62   

Mixed use/other

     8        —          —          —          —          8   
                                                  

Total recorded investment

   $ 373      $ 49      $ 11      $ 20      $ 6      $ 459   
                                                  

% of total

     82     11     2     4     1     100
                                                  

Weighted-average debt service coverage ratio

     1.74        1.46        1.26        0.93        0.47        1.65   
                                                  
                                                 
   
     December 31, 2010  

(Amounts in millions)

   0% – 50%     51% – 60%     61% – 75%     76% – 100%     Greater
than 100%
    Total  

Property type:

                                                

Retail

   $ 141      $ 34      $ 1      $ 3      $ 3      $ 182   

Industrial

     108        8        4        2        2        124   

Office

     90        19        5        3        —          117   

Apartments

     35        9        —          20        —          64   

Mixed use/other

     17        5        —          —          —          22   
                                                  

Total recorded investment

   $ 391      $ 75      $ 10      $ 28      $ 5      $ 509   
                                                  

% of total

     77     15     2     5     1     100
                                                  

Weighted-average debt service coverage ratio

     1.82        1.35        1.05        1.18        0.52        1.69   
                                                  
                                                 
     June 30, 2011  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 7      $ 48      $ 66      $ 21      $ 33      $ 175   

Industrial

     20        24        27        11        31        113   

Office

     12        12        39        25        13        101   

Apartments

     12        10        20        15        5        62   

Mixed use/other

     —          —          3        —          5        8   
                                                  

Total recorded investment

   $ 51      $ 94      $ 155      $ 72      $ 87      $ 459   
                                                  

% of total

     11     21     34     15     19     100
                                                  

Weighted-average loan-to-value

     63     39     37     43     31     40
                                                  
                                                 
   
     December 31, 2010  

(Amounts in millions)

   Less than 1.00     1.00 – 1.25     1.26 – 1.50     1.51 – 2.00     Greater
than 2.00
    Total  

Property type:

                                                

Retail

   $ 14      $ 6      $ 52      $ 77      $ 33      $ 182   

Industrial

     11        9        25        50        29        124   

Office

     14        14        23        45        21        117   

Apartments

     —          21        10        26        7        64   

Mixed use/other

     —          —          7        11        4        22   
                                                  

Total recorded investment

   $ 39      $ 50      $ 117      $ 209      $ 94      $ 509   
                                                  

% of total

     8     10     23     41     18     100
                                                  

Weighted-average loan-to-value

     65     55     42     41     31     43
                                                  
Derivative Instruments (Tables)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Derivative Instruments
 
 
 
 
Schedule of Positions in Derivative Instruments
 
 
 
Activity Associated with Derivative Instruments
 
 
 
Schedule of Pre-Tax Income (Loss) Effects of Cash Flow Hedges
 
 
 
Schedule of Pre-Tax Income (Loss) Effects of Fair Value Hedges and Related Hedged Items
Schedule of Pre-Tax Gain (Loss) Recognized in Net Income (Loss) for the Effects of Derivatives not Designated as Hedges
 
 
Schedule of Credit Default Swaps Where We Sell Protection on Single Name Reference Entities and Fair Values
 
 
 
Schedule of Credit Default Swaps Where We Sell Protection on Credit Default Swap Index Tranches and Fair Values
 
 
 
   

Derivative assets

   

Derivative liabilities

 

(Amounts in millions)

 

Balance

sheet classification

  Fair value    

Balance

sheet classification

  Fair value  
    June 30,
2011
    December 31,
2010
      June 30,
2011
    December 31,
2010
 

Derivatives designated as hedges

           

Cash flow hedges:

           

Interest rate swaps

  Other invested assets   $ 264      $ 222      Other liabilities   $ 62      $ 56   

Inflation indexed swaps

  Other invested assets     —          —        Other liabilities     61        33   

Foreign currency swaps

  Other invested assets     —          205      Other liabilities     —          —     
                                   

Total cash flow hedges

      264        427          123        89   
                                   

Fair value hedges:

           

Interest rate swaps

  Other invested assets     69        95      Other liabilities     4        8   

Foreign currency swaps

  Other invested assets     46        35      Other liabilities     —          —     
                                   

Total fair value hedges

      115        130          4        8   
                                   

Total derivatives designated as hedges

      379        557          127        97   
                                   

Derivatives not designated as hedges

           

Interest rate swaps

  Other invested assets     386        446      Other liabilities     21        74   

Equity return swaps

  Other invested assets     6        —        Other liabilities     1        3   

Interest rate swaps related to securitization entities

  Restricted other invested assets     —          —        Other liabilities     18        19   

Interest rate swaptions

  Other invested assets     —          —        Other liabilities     —          —     

Credit default swaps

  Other invested assets     9        11      Other liabilities     9        7   

Credit default swaps related to securitization entities

  Restricted other invested assets     —          —        Other liabilities     126        129   

Equity index options

  Other invested assets     40        33      Other liabilities     —          3   

Financial futures

  Other invested assets     —          —        Other liabilities     —          —     

Other foreign currency contracts

  Other invested assets     —          —        Other liabilities     12        —     

Reinsurance embedded derivatives (1)

  Other assets     —          1      Other liabilities     1        —     

GMWB embedded derivatives

  Reinsurance recoverable (2)     (5     (5   Policyholder account balances (3)     113        121   
                                   

Total derivatives not designated as hedges

      436        486          301        356   
                                   

Total derivatives

    $ 815      $ 1,043        $ 428      $ 453   
                                   

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our guaranteed minimum withdrawal benefits ("GMWB") liabilities.

(3) 

Represents the embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

(Notional in millions)

 

Measurement

   December 31,
2010
     Additions      Maturities/
terminations
    June 30, 2011  

Derivatives designated as hedges

            

Cash flow hedges:

            

Interest rate swaps

  Notional    $ 12,355       $ 995       $ (157   $ 13,193   

Inflation indexed swaps

  Notional      525         16         —          541   

Foreign currency swaps

  Notional      491         —           (491 )     —     
                                    

Total cash flow hedges

       13,371         1,011         (648     13,734   
                                    

Fair value hedges:

            

Interest rate swaps

  Notional      1,764         —           (405     1,359   

Foreign currency swaps

  Notional      85         —           —          85   
                                    

Total fair value hedges

       1,849         —           (405     1,444   
                                    

Total derivatives designated as hedges

       15,220         1,011         (1,053     15,178   
                                    

Derivatives not designated as hedges

            

Interest rate swaps

  Notional      7,681         314         (1,550     6,445   

Equity return swaps

  Notional      208         139         —          347   

Interest rate swaps related to securitization entities

  Notional      129         —           (6     123   

Interest rate swaptions

  Notional      200         —           (200     —     

Credit default swaps

  Notional      1,195         115         (100     1,210   

Credit default swaps related to securitization entities

  Notional      317         —           —          317   

Equity index options

  Notional      744         521         (480     785   

Financial futures

  Notional      3,937         2,687         (3,463     3,161   

Other foreign currency contracts

  Notional      521         185         (535     171   

Reinsurance embedded derivatives

  Notional      72         89         —          161   
                                    

Total derivatives not designated as hedges

       15,004         4,050         (6,334     12,720   
                                    

Total derivatives

     $ 30,224       $ 5,061       $ (7,387   $ 27,898   
                                    

(Number of policies)

 

Measurement

   December 31,
2010
     Additions      Terminations     June 30, 2011  

Derivatives not designated as hedges

            

GMWB embedded derivatives

  Policies      49,566         690         (1,326     48,930   

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2011:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
     Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 113       $ (6   Net investment income    $ 2       Net investment gains (losses)

Interest rate swaps hedging liabilities

     —           1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     1         (4   Interest expense      —         Net investment gains (losses)
                               

Total

   $ 114       $ (9      $ 2      
                               

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the three months ended June 30, 2010:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
    Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 599      $ 4      Net investment
income
   $ 15       Net investment gains (losses)

Interest rate swaps hedging liabilities

     (3     1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     6        (2   Interest expense      —         Net investment gains (losses)
                              

Total

   $ 602      $ 3         $ 15      
                              

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2011:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
     Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 12       $ (11   Net investment income    $ —         Net investment gains (losses)

Interest rate swaps hedging liabilities

     —           1      Interest expense      —         Net investment gains (losses)

Foreign currency swaps

     4         (5   Interest expense      —         Net investment gains (losses)
                               

Total

   $ 16       $ (15      $ —        
                               

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

 

The following table provides information about the pre-tax income (loss) effects of cash flow hedges for the six months ended June 30, 2010:

 

(Amounts in millions)

   Gain (loss)
recognized in OCI
    Gain (loss)
reclassified into
net income (loss)
from OCI
   

Classification of gain
(loss) reclassified into
net income (loss)

   Gain (loss)
recognized in
net income (loss) (1)
    

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 563      $ 8      Net investment
income
   $ 12       Net investment
gains (losses)

Interest rate swaps hedging assets

     —          1      Net investment
gains (losses)
     —         Net investment
gains (losses)

Interest rate swaps hedging liabilities

     (3     1      Interest expense      —         Net investment
gains (losses)

Foreign currency swaps

     7        (4   Interest expense      —         Net investment
gains (losses)
                              

Total

   $ 567      $ 6         $ 12      
                              

(1) 

Represents ineffective portion of cash flow hedges as there were no amounts excluded from the measurement of effectiveness.

     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in

net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 1      Net investment gains (losses)    $ (2   Net investment
income
   $ (1   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (7   Net investment gains (losses)      17      Interest credited      7      Net investment gains (losses)

Foreign currency swaps

     11      Net investment gains (losses)      —        Interest credited      (11   Net investment gains (losses)
                                

Total

   $ 5         $ 15         $ (5  
                                
     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 1      Net investment gains (losses)    $ (3   Net investment income    $ (1   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (6   Net investment gains (losses)      25      Interest credited      6      Net investment gains (losses)

Foreign currency swaps

     (2   Net investment gains (losses)      1      Interest credited      2      Net investment gains (losses)
                                

Total

   $ (7      $ 23         $ 7     
                                
     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in

net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 2      Net investment gains (losses)    $ (5   Net investment
income
   $ (2   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (29   Net investment gains (losses)      37      Interest credited      29      Net investment gains (losses)

Foreign currency swaps

     11      Net investment gains (losses)      1      Interest credited      (12   Net investment gains (losses)
                                

Total

   $ (16      $ 33         $ 15     
                                
     Derivative instrument    Hedged item

(Amounts in millions)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

   Other impacts
to net
income (loss)
   

Classification
of other
impacts to
net income (loss)

   Gain (loss)
recognized in
net income (loss)
   

Classification of gain
(loss) recognized in
net income (loss)

Interest rate swaps hedging assets

   $ 2      Net investment gains (losses)    $ (6   Net investment income    $ (2   Net investment gains (losses)

Interest rate swaps hedging liabilities

     (7   Net investment gains (losses)      50      Interest credited      7      Net investment gains (losses)

Foreign currency swaps

     (4   Net investment gains (losses)      2      Interest credited      4      Net investment gains (losses)
                                

Total

   $ (9      $ 46         $ 9     
                                
     Three months ended June 30,    

Classification of gain (loss) recognized
in net income (loss)

(Amounts in millions)

   2011     2010    

Interest rate swaps

   $ 2      $ 63      Net investment gains (losses)

Equity return swaps

     (6     —        Net investment gains (losses)

Interest rate swaps related to securitization entities

     (4     (9   Net investment gains (losses)

Interest rate swaptions

     —          35      Net investment gains (losses)

Credit default swaps

     —          (32   Net investment gains (losses)

Credit default swaps related to securitization entities

     (4     (46   Net investment gains (losses)

Equity index options

     (9     50      Net investment gains (losses)

Financial futures

     34        105      Net investment gains (losses)

Other foreign currency contracts

     (4     2      Net investment gains (losses)

Reinsurance embedded derivatives

     (1     2      Net investment gains (losses)

GMWB embedded derivatives

     (33     (278   Net investment gains (losses)
                  

Total derivatives not designated as hedges

   $ (25   $ (108  
                  
     Six months ended June 30,    

Classification of gain (loss) recognized
in net income (loss)

(Amounts in millions)

   2011     2010    

Interest rate swaps

   $ 4      $ 57      Net investment gains (losses)

Equity return swaps

     (10     —        Net investment gains (losses)

Interest rate swaps related to securitization entities

     (3     (12   Net investment gains (losses)

Interest rate swaptions

     —          57      Net investment gains (losses)

Credit default swaps

     3        (27   Net investment gains (losses)

Credit default swaps related to securitization entities

     5        (41   Net investment gains (losses)

Equity index options

     (28     23      Net investment gains (losses)

Financial futures

     (5     72      Net investment gains (losses)

Other foreign currency contracts

     (13     (1   Net investment gains (losses)

Reinsurance embedded derivatives

     (1     2      Net investment gains (losses)

GMWB embedded derivatives

     26        (242   Net investment gains (losses)
                  

Total derivatives not designated as hedges

   $ (22   $ (112  
                  
     June 30, 2011      December 31, 2010  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Reference entity credit rating and maturity:

                 

AAA

                 

Matures after one year through five years

   $ 5       $ —         $ —         $ 5       $ —         $ —     

AA

                 

Matures after one year through five years

     6         —           —           6         —           —     

Matures after five years through ten years

     5         —           —           5         —           —     

A

                 

Matures after one year through five years

     37         1         —           37         1         —     

Matures after five years through ten years

     10         —           —           5         —           —     

BBB

                 

Matures after one year through five years

     68         1         —           68         2         —     

Matures after five years through ten years

     24         —           —           29         —           —     
                                                     

Total credit default swaps on single name reference entities

   $ 155       $ 2       $ —         $ 155       $ 3       $ —     
                                                     

     June 30, 2011      December 31, 2010  

(Amounts in millions)

   Notional
value
     Assets      Liabilities      Notional
value
     Assets      Liabilities  

Original index tranche attachment/detachment point and maturity:

                 

9% – 12% matures after one year through five years (1)

   $ 300       $ 1       $ 4       $ 300       $ —         $ 3   

10% – 15% matures after one year through five years (2)

     250         3         —           250         4         —     

12% – 22% matures after five years through ten years (3)

     248         —           5         248         —           4   

15% – 30% matures after five years through ten years (4)

     127         —           —           127         2         —     
                                                     

Total credit default swap index tranches

     925         4         9         925         6         7   
                                                     

Customized credit default swap index tranches related to securitization entities:

                 

Portion backing third-party borrowings maturing 2017 (5)

     17         —           7         17         —           8   

Portion backing our interest maturing 2017 (6)

     300         —           119         300         —           121   
                                                     

Total customized credit default swap index tranches related to securitization entities

     317         —           126         317         —           129   
                                                     

Total credit default swaps on index tranches

   $ 1,242       $ 4       $ 135       $ 1,242       $ 6       $ 136   
                                                     

(1) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 9% – 12%.

(2) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 10% – 15%.

(3) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 12% – 22%.

(4) 

The current attachment/detachment as of June 30, 2011 and December 31, 2010 was 14.8% – 30.3%.

(5) 

Original notional value was $39 million.

(6) 

Original notional value was $300 million.

Fair Value of Financial Instruments (Tables)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
12 Months Ended
Dec. 31, 2010
Fair Value of Financial Instruments
 
 
 
 
 
Fair Value Financial Instruments Not Required to be Carried at Fair Value
 
 
 
 
Primary Sources Considered When Determining Fair Value of Each Class of Fixed Maturity Securities
 
 
 
Primary Sources Considered When Determining Fair Value of Equity Securities
 
 
 
 
Primary Sources Considered When Determining Fair Value of Trading Securities
 
 
 
 
Assets and Liabilities That are Measured at Fair Value on a Recurring Basis
 
 
 
Assets Measured at Fair Value on a Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value
 
Liabilities Measured at Fair Value on a Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value
 

(Amounts in millions)

   June 30, 2011      December 31, 2010  
   Notional
amount
    Carrying
amount
     Fair
value
     Notional
amount
    Carrying
amount
     Fair
value
 

Assets:

               

Commercial mortgage loans

   $   (1)    $ 6,432       $ 6,742       $   (1)    $ 6,718       $ 6,896   

Restricted commercial mortgage loans

          (1)      457         506              (1)      507         554   

Other invested assets

          (1)      282         293              (1)      267         272   

Liabilities:

               

Long-term borrowings (2)

          (1)      4,755         4,766              (1)      4,952         4,928   

Non-recourse funding obligations (2)

          (1)      3,374         2,339              (1)      3,437         2,170   

Borrowings related to securitization entities

          (1)      394         417              (1)      443         467   

Investment contracts

          (1)      18,728         19,365              (1)      19,772         20,471   

Other firm commitments:

               

Commitments to fund limited partnerships

     90        —           —           110        —           —     

Ordinary course of business lending commitments

     49        —           —           28        —           —     

(1) 

These financial instruments do not have notional amounts.

(2) 

See note 8 for additional information related to borrowings.

     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

U.S. government, agencies and government-sponsored enterprises:

           

Pricing services

   $ 3,669       $ —         $ 3,669       $ —     

Internal models

     13         —           —           13   
                                   

Total U.S. government, agencies and government-sponsored enterprises

     3,682         —           3,669         13   
                                   

Tax-exempt:

           

Pricing services

     865         —           865         —     
                                   

Total tax-exempt

     865         —           865         —     
                                   

Government—non-U.S.:

           

Pricing services

     2,378         —           2,378         —     

Internal models

     11         —           10         1   
                                   

Total government—non-U.S.

     2,389         —           2,388         1   
                                   

U.S. corporate:

           

Pricing services

     20,787         —           20,787         —     

Broker quotes

     277         —           —           277   

Internal models

     2,983         —           2,311         672   
                                   

Total U.S. corporate

     24,047         —           23,098         949   
                                   

Corporate—non-U.S.:

           

Pricing services

     12,568         —           12,568         —     

Broker quotes

     86         —           —           86   

Internal models

     1,774         —           1,489         285   
                                   

Total corporate—non-U.S.

     14,428         —           14,057         371   
                                   

Residential mortgage-backed:

           

Pricing services

     4,859         —           4,859         —     

Broker quotes

     63         —           —           63   

Internal models

     61         —           —           61   
                                   

Total residential mortgage-backed

     4,983         —           4,859         124   
                                   

Commercial mortgage-backed:

           

Pricing services

     3,678         —           3,678         —     

Broker quotes

     16         —           —           16   

Internal models

     27         —           —           27   
                                   

Total commercial mortgage-backed

     3,721         —           3,678         43   
                                   

Other asset-backed:

           

Pricing services

     1,840         —           1,840         —     

Broker quotes

     265         —           —           265   

Internal models

     1         —           1         —     
                                   

Total other asset-backed

     2,106         —           1,841         265   
                                   

Total fixed maturity securities

   $ 56,221       $ —         $ 54,455       $ 1,766   
                                   
     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

U.S. government, agencies and government-sponsored enterprises:

           

Pricing services

   $ 3,688       $ —         $ 3,688       $ —     

Internal models

     17         —           6         11   
                                   

Total U.S. government, agencies and government-sponsored enterprises

     3,705         —           3,694         11   
                                   

Tax-exempt:

           

Pricing services

     1,030         —           1,030         —     
                                   

Total tax-exempt

     1,030         —           1,030         —     
                                   

Government—non-U.S.:

           

Pricing services

     2,357         —           2,357         —     

Internal models

     12         —           11         1   
                                   

Total government—non-U.S.

     2,369         —           2,368         1   
                                   

U.S. corporate:

           

Pricing services

     20,563         —           20,563         —     

Broker quotes

     235         —           —           235   

Internal models

     3,169         —           2,304         865   
                                   

Total U.S. corporate

     23,967         —           22,867         1,100   
                                   

Corporate—non-U.S.:

           

Pricing services

     11,584         —           11,584         —     

Broker quotes

     113         —           —           113   

Internal models

     1,801         —           1,546         255   
                                   

Total corporate—non-U.S.

     13,498         —           13,130         368   
                                   

Residential mortgage-backed:

           

Pricing services

     4,312         —           4,312         —     

Broker quotes

     72         —           —           72   

Internal models

     71         —           —           71   
                                   

Total residential mortgage-backed

     4,455         —           4,312         143   
                                   

Commercial mortgage-backed:

           

Pricing services

     3,693         —           3,693         —     

Broker quotes

     16         —           —           16   

Internal models

     34         —           —           34   
                                   

Total commercial mortgage-backed

     3,743         —           3,693         50   
                                   

Other asset-backed:

           

Pricing services

     2,241         —           2,143         98   

Broker quotes

     169         —           —           169   

Internal models

     6         —           5         1   
                                   

Total other asset-backed

     2,416         —           2,148         268   
                                   

Total fixed maturity securities

   $ 55,183       $ —         $ 53,242       $ 1,941   
                                   
     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 268       $ 260       $ 8       $ —     

Broker quotes

     6         —           —           6   

Internal models

     100         —           —           100   
                                   

Total equity securities

   $ 374       $ 260       $ 8       $ 106   
                                   
     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 245       $ 240       $ 5       $ —     

Broker quotes

     6         —           —           6   

Internal models

     81         —           —           81   
                                   

Total equity securities

   $ 332       $ 240       $ 5       $ 87   
                                   
     June 30, 2011  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 316       $ —         $ 316       $ —     

Broker quotes

     291         —           —           291   
                                   

Total trading securities

   $ 607       $ —         $ 316       $ 291   
                                   
     December 31, 2010  

(Amounts in millions)

   Total      Level 1      Level 2      Level 3  

Pricing services

   $ 348       $ —         $ 348       $ —     

Broker quotes

     230         —           —           230   

Internal models

     99         —           —           99   
                                   

Total trading securities

   $ 677       $ —         $ 348       $ 329   
                                   

     June 30, 2011  

(Amounts in millions)

   Total     Level 1      Level 2     Level 3  

Assets

         

Investments:

         

Fixed maturity securities:

         

U.S. government, agencies and government-sponsored enterprises

   $ 3,682      $ —         $ 3,669      $ 13   

Tax-exempt

     865        —           865        —     

Government—non-U.S.

     2,389        —           2,388        1   

U.S. corporate

     24,047        —           23,098        949   

Corporate—non-U.S.

     14,428        —           14,057        371   

Residential mortgage-backed

     4,983        —           4,859        124   

Commercial mortgage-backed

     3,721        —           3,678        43   

Other asset-backed

     2,106        —           1,841        265   
                                 

Total fixed maturity securities

     56,221        —           54,455        1,766   
                                 

Equity securities

     374        260         8        106   
                                 

Other invested assets:

         

Trading securities

     607        —           316        291   

Derivative assets:

         

Interest rate swaps

     719        —           715        4   

Foreign currency swaps

     46        —           46        —     

Credit default swaps

     9        —           5        4   

Equity index options

     40        —           —          40   

Equity return swaps

     6        —           6        —     
                                 

Total derivative assets

     820        —           772        48   
                                 

Securities lending collateral

     554        —           554        —     

Derivatives counterparty collateral

     522        —           522        —     
                                 

Total other invested assets

     2,503        —           2,164        339   
                                 

Restricted other invested assets related to securitization entities

     378        —           203        175   

Other assets (1)

     (1     —           (1     —     

Reinsurance recoverable (2)

     (5     —           —          (5

Separate account assets

     11,452        11,452         —          —     
                                 

Total assets

   $ 70,922      $ 11,712       $ 56,829      $ 2,381   
                                 

Liabilities

         

Policyholder account balances (3)

   $ 113      $ —         $ —        $ 113   

Derivative liabilities:

         

Interest rate swaps

     87        —           87        —     

Interest rate swaps related to securitization entities

     18        —           18        —     

Inflation indexed swaps

     61        —           61        —     

Credit default swaps

     9        —           —          9   

Credit default swaps related to securitization entities

     126        —           —          126   

Equity return swaps

     1        —           1        —     

Other foreign currency contracts

     12        —           12        —     
                                 

Total derivative liabilities

     314        —           179        135   

Borrowings related to securitization entities

     58        —           —          58   
                                 

Total liabilities

   $ 485      $ —         $ 179      $ 306   
                                 

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(3) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

     December 31, 2010  

(Amounts in millions)

   Total     Level 1      Level 2      Level 3  

Assets

          

Investments:

          

Fixed maturity securities:

          

U.S. government, agencies and government-sponsored enterprises

   $ 3,705      $ —         $ 3,694       $ 11   

Tax-exempt

     1,030        —           1,030         —     

Government—non-U.S.

     2,369        —           2,368         1   

U.S. corporate

     23,967        —           22,867         1,100   

Corporate—non-U.S.

     13,498        —           13,130         368   

Residential mortgage-backed

     4,455        —           4,312         143   

Commercial mortgage-backed

     3,743        —           3,693         50   

Other asset-backed

     2,416        —           2,148         268   
                                  

Total fixed maturity securities

     55,183        —           53,242         1,941   
                                  

Equity securities

     332        240         5         87   
                                  

Other invested assets:

          

Trading securities

     677        —           348         329   

Derivative assets:

          

Interest rate swaps

     763        —           758         5   

Foreign currency swaps

     240        —           240         —     

Credit default swaps

     11        —           5         6   

Equity index options

     33        —           —           33   
                                  

Total derivative assets

     1,047        —           1,003         44   
                                  

Securities lending collateral

     772        —           772         —     

Derivatives counterparty collateral

     630        —           630         —     
                                  

Total other invested assets

     3,126        —           2,753         373   
                                  

Restricted other invested assets related to securitization entities

     370        —           199         171   

Other assets (1)

     1        —           1         —     

Reinsurance recoverable (2)

     (5     —           —           (5

Separate account assets

     11,666        11,666         —           —     
                                  

Total assets

   $ 70,673      $ 11,906       $ 56,200       $ 2,567   
                                  

Liabilities

          

Policyholder account balances (3)

   $ 121      $ —         $ —         $ 121   

Derivative liabilities:

          

Interest rate swaps

     138        —           138         —     

Interest rate swaps related to securitization entities

     19        —           19         —     

Inflation indexed swaps

     33        —           33         —     

Credit default swaps

     7        —           —           7   

Credit default swaps related to securitization entities

     129        —           —           129   

Equity index options

     3        —           —           3   

Equity return swaps

     3        —           3         —     
                                  

Total derivative liabilities

     332        —           193         139   

Borrowings related to securitization entities

     51        —           —           51   
                                  

Total liabilities

   $ 504      $ —         $ 193       $ 311   
                                  

(1) 

Represents embedded derivatives associated with certain reinsurance agreements.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

(3) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

    Beginning
balance
as of
April 1,
2011
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total gains
(losses)
included in
net income
(loss)
attributable
to assets
still held
 

(Amounts in millions)

    Included in
net
income (loss)
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 1      $ —        $ —        $ —        $ —        $ —        $ —        $ 12      $ —        $ 13      $ —     

Government—non-U.S.

    1        —          —          —          —          —          —          —          —          1        —     

U.S. corporate (1)

    715        4        9        27        (5     —          (18     236        (19     949        4   

Corporate—non-U.S. (1)

    202        1        —          15        (10     —          (2     165        —          371        1   

Residential mortgage-backed

    135        —          (10     3       —          —          (4     —          —          124        —     

Commercial mortgage-backed

    42        —          2        —          —          —          (1     —          —          43        —     

Other asset-backed

    263        —          7        —          —          —          (5     —          —          265        —     
                                                                                       

Total fixed maturity securities

    1,359        5        8        45        (15     —          (30     413        (19     1,766        5   
                                                                                       

Equity securities

    87        —          —          24        (5 )     —          —          —          —          106        —     
                                                                                       

Other invested assets:

                     

Trading securities

    338        7        —          —          (41 )     —          (13     —          —          291        7   

Derivative assets:

                     

Interest rate swaps

    3        1        —          —          —          —          —          —          —          4        1   

Credit default swaps

    6        (2     —          —          —          —          —          —          —          4        (2 )

Equity index options

    32        (8     —          15        —          —          1        —          —          40        (8
                                                                                       

Total derivative assets

    41        (9     —          15        —          —          1        —          —          48        (9
                                                                                       

Total other invested assets

    379        (2     —          15        (41     —          (12     —          —          339        (2
                                                                                       

Restricted other invested assets related to securitization entities

    175        —          —          —          —          —          —          —          —          175        —     

Reinsurance recoverable (2)

    (7     1        —          —          —          1        —          —          —          (5     1   
                                                                                       

Total Level 3 assets

  $ 1,993      $ 4      $ 8      $ 84     $ (61   $ 1      $ (42   $ 413      $ (19   $ 2,381      $ 4   
                                                                                       

(1) 

The transfers in and out of Level 3 were primarily related to private fixed rate U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations for transfers in or no longer having significant impact on certain valuations for transfers out.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

Amounts in millions)

  Beginning
balance
as of
April 1,
2010
    Total realized and
unrealized gains
(losses)
    Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level 3 
(1)
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2010
    Total gains
(losses)
included in
net income
(loss)
attributable
to assets
still held
 
    Included in
net income
(loss)
    Included
in OCI
           

Fixed maturity securities:

               

U.S. government, agencies and government- sponsored enterprises

  $ 8      $ —        $ —        $ (1   $ 6      $ (4   $ 9      $ —     

Tax-exempt

    2        —          —          —          —          (2     —          —     

Government—non-U.S.

    1        —          1        —          16        —          18        —     

U.S. corporate

    906        11        19        (29     653        (40     1,520        4   

Corporate—non-U.S.

    508        —          7        2        294        (91     720        —     

Residential mortgage- backed

    171        —          —          (26     1        (84     62        —     

Commercial mortgage- backed

    47        —          10        (1     11        (8     59        —     

Other asset-backed

    409        (8     2        (14     —          (28     361        (8
                                                               

Total fixed maturity securities

    2,052        3        39        (69     981        (257     2,749        (4
                                                               

Equity securities

    67        —          1        1        —          (60     9        —     
                                                               

Other invested assets:

               

Trading securities

    142        (7     —          1        —          —          136        (7

Derivative assets:

               

Interest rate swaps

    4        5        —          —          —          —          9        5   

Interest rate swaptions

    14        24        —          (34     —          —          4        24   

Credit default swaps

    7        (7     —          —          —          —          —          (7

Equity index options

    34        46        —          17        —          —          97        46   

Other foreign currency contracts

    4        (3     —          —          —          —          1        (3
                                                               

Total derivative assets

    63        65        —          (17     —          —          111        65   
                                                               

Total other invested assets

    205        58        —          (16     —          —          247        58   
                                                               

Restricted other invested assets related to securitization entities 

    174        (2     2        —          —          —          174        (2

Reinsurance recoverable (2)

    (6     15        —          —          —          —          9        15   
                                                               

Total Level 3 assets

  $ 2,492      $ 74      $ 42      $ (84   $ 981      $ (317   $ 3,188      $ 67   
                                                               

(1) 

The transfer into Level 3 was primarily related to private fixed U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

  Beginning
balance
as of
January 1,
2011
    Total realized and
unrealized gains
(losses)
    Purchases     Sales     Issuances     Settlements     Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total gains
(losses)
included in
net income
(loss)
attributable
to assets
still held
 

(Amounts in millions)

    Included in
net
income (loss)
    Included
in OCI
                 

Fixed maturity securities:

                     

U.S. government, agencies and government-sponsored enterprises

  $ 11      $ —        $ —        $ —        $ —        $ —        $ —        $ 12      $ (10   $ 13      $ —     

Government—non-U.S.

    1        —          —          —          —          —          —          —          —          1        —     

U.S. corporate (1)

    1,100        8        6        30        (5     —          (63     252        (379     949        8   

Corporate—non-U.S. (1)

    368        (11     (3     40        (35     —          (7     205        (186     371        (10

Residential mortgage-backed

    143        (1     (8     3        —          —          (12     —          (1     124        (1

Commercial mortgage-backed

    50        —          2        —          —          —          (9     —          —          43        —     

Other asset-backed

    268        (1     9        8        (8     —          (26     15        —          265        (1
                                                                                       

Total fixed maturity securities

    1,941        (5     6        81        (48     —          (117     484        (576     1,766        (4
                                                                                       

Equity securities

    87        1        1        24        (5     —          (2     —          —          106        —     
                                                                                       

Other invested assets:

                     

Trading securities

    329        16        —          5        (41 )     —          (18     —          —          291        16  

Derivative assets:

                     

Interest rate swaps

    5        (1     —          —          —          —          —          —          —          4        (1

Credit default swaps

    6        (2     —          —          —          —          —          —          —          4        (2

Equity index options

    33        (27     —          39        —          —          (5     —          —          40        (27
                                                                                       

Total derivative assets

    44        (30     —          39        —          —          (5     —          —          48        (30
                                                                                       

Total other invested assets

    373        (14     —          44        (41     —          (23     —          —          339        (14
                                                                                       

Restricted other invested assets related to securitization entities

    171        4        —          —          —          —          —          —          —          175        4   

Reinsurance recoverable (2)

    (5     (2     —          —          —          2        —          —          —          (5     (2
                                                                                       

Total Level 3 assets

  $ 2,567      $ (16   $ 7      $ 149      $ (94   $ 2      $ (142 )   $ 484      $ (576   $ 2,381      $ (16
                                                                                       

(1) 

The transfers in and out of Level 3 were primarily related to private fixed rate U.S. corporate and corporate—non-U.S. securities and resulted from a change in the observability of the additional premium to the public bond spread to adjust for the liquidity and other features of our private placements and resulted in unobservable inputs having a significant impact on certain valuations for transfers in or no longer having significant impact on certain valuations for transfers out.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

  Beginning
balance
as of
January 1,
2010
    Total realized and
unrealized gains
(losses)
    Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level 3 
    Transfer
out of
Level 3 
(1)
    Ending
balance
as of
June 30,
2010
    Total gains
(losses)
included in
net income
(loss)
attributable
to assets
still held
 

(Amounts in millions)

    Included in
net income
(loss)
    Included
in OCI
           

Fixed maturity securities:

               

U.S. government, agencies and government-sponsored enterprises

  $ 16      $ —        $ —        $ (2   $ 9      $ (14   $ 9      $ —     

Tax-exempt

    2        —          —          —          —          (2     —          —     

Government—non-U.S.

    7        —          1        —          16        (6     18        —     

U.S. corporate

    1,073        11        34        31        678        (307     1,520        8   

Corporate—non-U.S.

    504        1        8        11        353        (157     720        1   

Residential mortgage- backed

    1,481        —          3        80        1        (1,503     62        —     

Commercial mortgage- backed

    3,558        1        14        (63     11        (3,462     59        —     

Other asset-backed

    1,419        (24     23        (18     10        (1,049     361        (24
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed maturity securities

    8,060        (11     83        39        1,078        (6,500     2,749        (15
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Equity securities

    9        —          —          8        52        (60     9        —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other invested assets:

               

Trading securities

    145        1        —          (10     —          —          136        1   

Derivative assets:

               

Interest rate swaps

    3        6        —          —          —          —          9        6   

Interest rate swaptions

    54        15        —          (65     —          —          4        15   

Credit default swaps

    6        (6     —          —          —          —          —          (6

Equity index options

    39        22        —          36        —          —          97        22   

Other foreign currency contracts

    8        (7     —          —          —          —          1        (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total derivative assets

    110        30        —          (29     —          —          111        30   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other invested assets

    255        31        —          (39     —          —          247        31   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Restricted other invested assets related to securitization entities

    —          (2     2        —          174        —          174        (2

Reinsurance recoverable (2)

    (5     14        —          —          —          —          9        14   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Level 3 assets

  $ 8,319      $ 32      $ 85      $ 8      $ 1,304      $ (6,560   $ 3,188      $ 28   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1) 

During 2010, primary market issuance and secondary market activity for commercial and non-agency residential mortgage-backed and other asset-backed securities increased the market observable inputs used to establish fair values for similar securities. These factors, along with more consistent pricing from third-party sources, resulted in our conclusion that there is sufficient trading activity in similar instruments to support classifying certain mortgage-backed and asset-backed securities as Level 2.

(2) 

Represents embedded derivatives associated with the reinsured portion of our GMWB liabilities.

    Beginning
balance
as of
April 1,
2011
    Total realized and
unrealized (gains)
losses
                      Settlements     Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
    Purchases     Sales     Issuances            

Policyholder account balances (1)

  $ 69      $ 34      $ —        $ —        $ —        $ 10      $ —        $ —        $ —        $ 113      $ 34  

Derivative liabilities:

                     

Credit default swaps

    7        2        —          —          —          —          —          —          —          9        2   

Credit default swaps related to securitization entities

    120        6        —          —          —          —          —          —          —          126        6   
                                                                                       

Total derivative liabilities

    127        8        —          —          —          —          —          —          —          135        8   
                                                                                       

Borrowings related to securitization entities

    58        —          —          —          —          —          —          —          —          58        —     
                                                                                       

Total Level 3 liabilities

  $ 254      $ 42      $ —        $ —        $ —        $ 10      $ —        $ —        $ —        $ 306      $ 42   
                                                                                       

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

  Beginning
balance
as of
April 1,
2010
    Total realized and
unrealized (gains)
losses
    Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2010
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
           

Policyholder account balances (1)

  $ 145      $ 294      $ —        $ 8      $ —        $ —        $ 447      $ 294   

Derivative liabilities:

               

Interest rate swaptions

    18        (10     —          (8     —          —          —          (10

Credit default swaps

    1        25        —          —          —          —          26        25   

Credit default swaps related to securitization entities

    118        46        —          (5     —          —          159        46   

Equity index options

    4        (3     —          (1     —          —          —          (3
                                                               

Total derivative liabilities

    141        58        —          (14     —          —          185        58   
                                                               

Borrowings related to securitization entities

    58        (7     —          —          —          —          51        (6
                                                               

Total Level 3 liabilities

  $ 344      $ 345      $ —        $ (6   $ —        $ —        $ 683      $ 346   
                                                               

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

    Beginning
balance
as of
January 1,
2011
    Total realized and
unrealized (gains)
losses
                      Settlements     Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2011
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
    Purchases     Sales     Issuances            

Policyholder account balances (1)

  $ 121      $ (28   $ —        $ —        $ —        $ 20      $ —        $ —        $ —        $ 113      $ (27

Derivative liabilities:

                     

Credit default swaps

    7        —          —          3        —          —          (1     —          —          9        —     

Credit default swaps related to securitization entities

    129        (3     —          —          —          —          —          —          —          126        (3

Equity index options

    3        —          —          —          —          —          (3     —          —          —          —     
                                                                                       

Total derivative liabilities

    139        (3     —          3        —          —          (4     —          —          135        (3
                                                                                       

Borrowings related to securitization entities

    51        7        —          —          —          —          —          —          —          58        7   
                                                                                       

Total Level 3 liabilities

  $ 311      $ (24   $ —        $ 3      $ —        $ 20      $ (4   $ —        $ —        $ 306      $ (23
                                                                                       

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

    Beginning
balance
as of
January 1,
2010
    Total realized and
unrealized (gains)
losses
    Purchases,
sales,
issuances
and
settlements,
net
    Transfer
in Level 3
    Transfer
out of
Level 3
    Ending
balance
as of
June 30,
2010
    Total (gains)
losses
included in
net (income)
loss
attributable
to liabilities
still held
 

(Amounts in millions)

    Included in
net (income)
loss
    Included
in OCI
           

Policyholder account balances (1)

  $ 175      $ 255      $ —        $ 17      $ —        $ —        $ 447      $ 255   

Derivative liabilities:

               

Interest rate swaps

    2        (2     —          —          —          —          —          (2

Interest rate swaptions

    67        (42     —          (25     —          —          —          (42

Credit default swaps

    —          26        —          —          —          —          26        26   

Credit default swaps related to securitization entities

    —          41        —          (3     121        —          159        41   

Equity index options

    2        (1     —          (1     —          —          —          (1
                                                               

Total derivative liabilities

    71        22        —          (29     121        —          185        22   
                                                               

Borrowings related to securitization entities

    —          (8     —          —          59        —          51        (8
                                                               

Total Level 3 liabilities

  $ 246      $ 269      $ —        $ (12   $ 180      $ —        $ 683      $ 269   
                                                               

(1) 

Represents embedded derivatives associated with our GMWB liabilities, excluding the impact of reinsurance.

Income Taxes (Tables)
Reconciliation Of United States Statutory Federal Tax Rate Text Block
     Three months ended
June  30,
    Six months ended
June  30,
 
     2011     2010     2011     2010  

Statutory U.S. federal income tax rate

     35.0     35.0     35.0     35.0

Increase (reduction) in rate resulting from:

        

State income tax, net of federal income tax effect

     (2.4     —          4.3        (2.1

Benefit on tax favored investments

     (0.4     (8.0     (4.5     (7.1

Effect of foreign operations

     (24.8     (33.7     (5.9     (21.3

Non-deductible expenses

     1.2        2.2        0.2        0.5   

Interest on uncertain tax positions

     (0.4     (2.4     0.4        (2.3

Tax benefits related to separation from our former parent

     —          —          —          (55.8

Other, net

     0.9       —          0.5        1.8   
                                

Effective rate

     9.1     (6.9 )%      30.0     (51.3 )% 
                                
Segment Information (Tables)
     Three months ended
June  30,
    Six months ended
June  30,
 

(Amounts in millions)

   2011      2010     2011      2010  

Revenues:

          

Retirement and Protection

   $ 1,784       $ 1,643      $ 3,522       $ 3,236   

International

     658         622        1,290         1,273   

U.S. Mortgage Insurance

     170         181        347         362   

Corporate and Other

     43         (36     64         (40
                                  

Total revenues

   $ 2,655       $ 2,410      $ 5,223       $ 4,831   
                                  
     Three months ended
June  30,
    Six months ended
June  30,
 

(Amounts in millions)

   2011     2010     2011     2010  

Retirement and Protection's net operating income

   $ 149      $ 114      $ 276      $ 236   

International's net operating income

     107        105        231        196   

U.S. Mortgage Insurance's net operating loss

     (253     (40     (334     (76

Corporate and Other's net operating loss

     (77     (61     (149     (124
                                

Net operating income (loss) available to Genworth Financial, Inc.'s common stockholders

     (74     118        24        232   

Net investment gains (losses), net of taxes and other adjustments

     (22     (76     (38     (118

Net tax benefit related to separation from our former parent

     —          —          —          106   
                                

Net income (loss) available to Genworth Financial, Inc.'s common stockholders

     (96     42        (14     220   

Add: net income attributable to noncontrolling interests

     36        35        70        69   
                                

Net income (loss)

   $ (60   $ 77      $ 56      $ 289   
                                

(Amounts in millions)

   June 30,
2011
     December 31,
2010
 

Assets:

     

Retirement and Protection

   $ 87,119       $ 86,352   

International

     12,834         12,422   

U.S. Mortgage Insurance

     4,048         3,875   

Corporate and Other

     8,346         9,746   
                 

Total assets

   $ 112,347       $ 112,395   
                 
Liability For Policy And Contract Claims (Tables)
Liability for Policy and Contract Claims
   As of or for the six
months ended
June 30,
 

(Amounts in millions)

   2011 (1)     2010 (2)  

Beginning balance

   $ 6,933      $ 6,567   

Less reinsurance recoverables

     (1,654     (1,769
  

 

 

   

 

 

 

Net beginning balance

     5,279        4,798   
  

 

 

   

 

 

 

Incurred related to insured events of:

    

Current year

     1,720        1,641   

Prior years

     494        120   
  

 

 

   

 

 

 

Total incurred

     2,214        1,761   
  

 

 

   

 

 

 

Paid related to insured events of:

    

Current year

     (475     (452

Prior years

     (1,373     (1,539
  

 

 

   

 

 

 

Total paid

     (1,848     (1,991
  

 

 

   

 

 

 

Interest on liability for policy and contract claims

     67        59   

Foreign currency translation

     37        (63
  

 

 

   

 

 

 

Net ending balance

     5,749        4,564   

Add reinsurance recoverables

     1,578        1,738   
  

 

 

   

 

 

 

Ending balance

   $ 7,327      $ 6,302   
  

 

 

   

 

 

 

(1) 

Current year reserves related to our U.S. Mortgage Insurance segment for the six months ended June 30, 2011 were reduced by loss mitigation activities of $22 million related to workouts, loan modifications and pre-sales. Loss mitigation actions related to prior year delinquencies resulted in a reduction of expected losses of $230 million to date, including $211 million related to workouts, loan modifications and pre-sales, and $19 million related to rescissions, net of reinstatements of $49 million.

(2) 

Current year reserves related to our U.S. Mortgage Insurance segment for the six months ended June 30, 2010 were reduced by loss mitigation activities of $97 million, including $94 million related to workouts, loan modifications and pre-sales, and $3 million related to rescissions, net of reinstatements. Loss mitigation actions related to prior year delinquencies resulted in a reduction of expected losses of $353 million to date, including $201 million related to workouts, loan modifications and pre-sales, and $152 million related to rescissions, net of reinstatements of $107 million.

Formation of Genworth and Basis of Presentation (Details)
6 Months Ended
Jun. 30, 2011
Formation of Genworth and Basis of Presentation
 
Number of operating segments
Accounting Pronouncements (Details) (Maximum [Member], USD $)
6 Months Ended
Jun. 30, 2011
Maximum [Member]
 
Goodwill impairment testing performed based on carrying value of reporting unit
$ 0 
Earnings (Loss) Per Share (Details) (USD $)
In Millions, except Per Share data
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Earnings (Loss) Per Share
 
 
 
 
Net income (loss)
$ (60)
$ 77 
$ 56 
$ 289 
Less: net income attributable to noncontrolling interests
36 
35 
70 
69 
Net income (loss) available to Genworth Financial, Inc.'s common stockholders
$ (96)
$ 42 
$ (14)
$ 220 
Basic per common share:
 
 
 
 
Net income (loss)
$ (0.12)
$ 0.16 
$ 0.11 
$ 0.59 
Less: net income attributable to noncontrolling interests
$ 0.07 
$ 0.07 
$ 0.14 
$ 0.14 
Net income (loss) available to Genworth Financial, Inc.'s common stockholders
$ (0.20)1
$ 0.09 1
$ (0.03)1
$ 0.45 1
Diluted per common share:
 
 
 
 
Net income (loss)
$ (0.12)
$ 0.16 
$ 0.11 
$ 0.59 
Less: net income attributable to noncontrolling interests
$ 0.07 
$ 0.07 
$ 0.14 
$ 0.14 
Net income (loss) available to Genworth Financial, Inc.'s common stockholders
$ (0.20)1
$ 0.08 1
$ (0.03)1
$ 0.45 1
Weighted-average shares used in basic earnings per common share calculations
490.6 
489.1 
490.4 
489.0 
Stock options, restricted stock units and stock appreciation rights
 
5.1 
 
4.9 
Weighted-average shares used in diluted earnings per common share calculations
490.6 2
494.2 2
490.4 2
493.9 2
Weighted-average shares used in diluted earnings per common share calculations, antidilutive securities (stock options, restricted stock units ("RSUs") and stock appreciation rights ("SARs"))
3.7 
 
4.0 
 
Weighted-average shares used in diluted earnings per common share calculations, dilutive potential common shares had antidilutive securities had been included in the calculation
494.3 
 
494.4 
 
[2] Under applicable accounting guidance, companies in a loss position are required to use basic weighted-average common shares outstanding in the calculation of diluted loss per share. Therefore, as a result of our net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, we were required to use basic weighted-average common shares outstanding in the calculation for the three and six months ended June 30, 2011 diluted loss per share, as the inclusion of shares for stock options, restricted stock units and stock appreciation rights of 3.7 million and 4.0 million, respectively, would have been antidilutive to the calculation. If we had not incurred a net loss available to Genworth Financial, Inc.'s common stockholders for the three and six months ended June 30, 2011, dilutive potential common shares would have been 494.3 million and 494.4 million, respectively.
Investments (Narrative) (Details) (USD $)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Dec. 31, 2010
Aggregate fair value of securities sold
$ 294,000,000 
$ 858,000,000 
$ 691,000,000 
$ 1,416,000,000 
 
Aggregate fair value of securities sold, percentage of book value
91.00% 
96.00% 
93.00% 
95.00% 
 
Gross unrealized losses
1,300,000,000 1
 
1,300,000,000 1
 
1,673,000,000 2
Number of securities in a continuous loss position
1,885 
 
1,885 
 
2,236 
Investments subject to call provisions
4,505,000,000 
 
4,505,000,000 
 
 
Percentage of investment portfolio by which no other industry group exceeded
 
 
10.00% 
 
 
Percentage of stockholders' equity by which no single issuer of fixed maturity securities exceeded
 
 
10% 
 
 
Commercial mortgage loans outstanding more than 90 days, interest accruing
 
 
Commercial mortgage loans on nonaccrual status
33,000,000 
 
33,000,000 
 
39,000,000 
Commercial mortgage loans, recorded investment
6,485,000,000 
 
6,485,000,000 
 
6,772,000,000 
Commercial mortgage loans modified or extended, number of loans
11 
 
11 
 
13 
Commercial mortgage loans modified or extended, carrying value
36,000,000 
 
36,000,000 
 
98,000,000 
31-60 Days Past Due [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
15,000,000 
 
15,000,000 
 
 
61-90 Days Past Due [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
 
 
 
 
6,000,000 
61-90 Days Past Due [Member] |
Restricted Commercial Mortgage Loans [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,000,000 
 
1,000,000 
 
 
Greater Than 90 Days Past Due [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
33,000,000 
 
33,000,000 
 
39,000,000 
Total Past Due [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
48,000,000 
 
48,000,000 
 
45,000,000 
Current [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
6,437,000,000 
 
6,437,000,000 
 
6,727,000,000 
Fixed Maturity Securities [Member]
 
 
 
 
 
Gross unrealized losses
1,297,000,000 1
 
1,297,000,000 1
 
1,669,000,000 2
Number of securities in a continuous loss position
1,821 
 
1,821 
 
2,184 
Fixed Maturity Securities [Member] |
Tax-Exempt [Member]
 
 
 
 
 
Gross unrealized losses
94,000,000 1
 
94,000,000 1
 
113,000,000 2
Number of securities in a continuous loss position
119 
 
119 
 
191 
Fixed Maturity Securities [Member] |
Tax-Exempt [Member] |
More Than 20 Percent Below Cost [Member] |
12 Months Or More [Member]
 
 
 
 
 
Average percentage below cost for securities in a continuous loss position
30.00% 
 
30.00% 
 
 
Gross unrealized losses
78,000,000 
 
78,000,000 
 
 
Average unrealized loss for securities in a continuous loss position
1,000,000 
 
1,000,000 
 
 
Fixed Maturity Securities [Member] |
12 Months Or More [Member] |
Less than 20 Percent Below Cost [Member]
 
 
 
 
 
Gross unrealized losses
354,000,000 
 
354,000,000 
 
 
Fixed Maturity Securities [Member] |
12 Months Or More [Member] |
Less than 20 Percent Below Cost [Member] |
Investment Grade [Member]
 
 
 
 
 
Percentage of total unrealized losses for securities in a continuous loss position
75.00% 
 
75.00% 
 
 
Fixed Maturity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
 
 
 
Gross unrealized losses
544,000,000 1
 
544,000,000 1
 
644,000,000 2
Number of securities in a continuous loss position
1,427 
 
1,427 
 
1,664 
Fixed Maturity Securities [Member] |
Less than 20 Percent Below Cost [Member] |
12 Months Or More [Member]
 
 
 
 
 
Average percentage below cost for securities in a continuous loss position
8.00% 
 
8.00% 
 
 
Fixed Maturity Securities [Member] |
Finance and Insurance Sector [Member]
 
 
 
 
 
Percent of investment portfolio, greater than 10%
22.00% 
 
22.00% 
 
 
Fixed Maturity Securities [Member] |
Utilities and Energy Sector [Member]
 
 
 
 
 
Percent of investment portfolio, greater than 10%
22.00% 
 
22.00% 
 
 
Fixed Maturity Securities [Member] |
Consumer Non-Cyclical Industry Sector [Member]
 
 
 
 
 
Percent of investment portfolio, greater than 10%
11.00% 
 
11.00% 
 
 
Corporate Debt Securities [Member] |
Financial Hybrid Securities [Member] |
12 Months Or More [Member] |
More Than 20 Percent Below Cost [Member] |
Finance and Insurance Sector [Member]
 
 
 
 
 
Gross unrealized losses
28,000,000 
 
28,000,000 
 
 
Corporate Debt Securities [Member] |
12 Months Or More [Member] |
More Than 20 Percent Below Cost [Member]
 
 
 
 
 
Gross unrealized losses
82,000,000 
 
82,000,000 
 
 
Corporate Debt Securities [Member] |
12 Months Or More [Member] |
More Than 20 Percent Below Cost [Member] |
Finance and Insurance Sector [Member]
 
 
 
 
 
Average percentage below cost for securities in a continuous loss position
26.00% 
 
26.00% 
 
 
Gross unrealized losses
55,000,000 
 
55,000,000 
 
 
Percentage of total gross unrealized losses for securities in a continuous loss position
67.00% 
 
67.00% 
 
 
Corporate Debt Securities [Member] |
12 Months Or More [Member] |
More Than 20 Percent Below Cost [Member] |
Transportation Sector [Member]
 
 
 
 
 
Securities less than percentage below cost
50.00% 
 
50.00% 
 
 
Gross unrealized losses
26,000,000 
 
26,000,000 
 
 
Percentage below cost for securities in a continuous loss position
65.00% 
 
65.00% 
 
 
Number of securities in a continuous loss position
 
 
 
Floating Rate Commercial Mortgage Loans [Member] |
Restricted Commercial Mortgage Loans [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
 
 
12 Months Or More [Member] |
More Than 20 Percent Below Cost [Member] |
Structured Securities [Member]
 
 
 
 
 
Gross unrealized losses
557,000,000 
 
557,000,000 
 
 
Unrealized losses on other than temporarily impaired securities, non-credit portion, securities in a loss position
192,000,000 
 
192,000,000 
 
 
Less Than 12 Months [Member]
 
 
 
 
 
Average percentage below cost for securities in a continuous loss position
3.00% 
 
3.00% 
 
 
Restricted Commercial Mortgage Loans [Member]
 
 
 
 
 
Commercial mortgage loans, current
457,000,000 
 
457,000,000 
 
 
Commercial mortgage loans outstanding more than 90 days, interest accruing
1,000,000 
 
1,000,000 
 
 
Commercial mortgage loans on nonaccrual status
 
 
 
 
Commercial mortgage loans not individually impaired, collectively evaluated for impairment
458,000,000 
 
458,000,000 
 
509,000,000 
Provision for credit losses
2,000,000 
 
Commercial mortgage loans, recorded investment
$ 459,000,000 
 
$ 459,000,000 
 
$ 509,000,000 
Investments (Sources of Net Investment Income) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Investment income
$ 905 
$ 847 
$ 1,760 
$ 1,636 
Expenses and fees
(24)
(24)
(49)
(48)
Net investment income
881 
823 
1,711 
1,588 
Fixed Maturity Securities - Taxable [Member]
 
 
 
 
Investment income
693 
646 
1,363 
1,272 
Fixed Maturity Securities - Non-Taxable [Member]
 
 
 
 
Investment income
10 
16 
21 
32 
Commercial Mortgage Loans [Member]
 
 
 
 
Investment income
92 
99 
184 
203 
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
 
 
Investment income
10 
19 
20 
Equity Securities [Member]
 
 
 
 
Investment income
10 
13 
Other Invested Assets [Member]
 
 
 
 
Investment income
55 
39 
89 
37 
Policy Loans [Member]
 
 
 
 
Investment income
30 
28 
59 
55 
Cash, Cash Equivalents and Short-Term Investments [Member]
 
 
 
 
Investment income
12 
Restricted Other Invested Assets Related to Securitization Entities [Member]
 
 
 
 
Investment income
 
 
 
$ 1 
Investments (Net Investment Gains (Losses)) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Investments
 
 
 
 
Realized gains
$ 25 
$ 53 
$ 54 
$ 76 
Realized losses
(34)
(36)
(65)
(74)
Net realized gains (losses) on available-for-sale securities
(9)
17 
(11)
Total other-than-temporary impairments
(28)
(24)
(59)
(101)
Portion of other-than-temporary impairments included in other comprehensive income (loss)
(27)
(3)
(30)
Net other-than-temporary impairments
(26)
(51)
(62)
(131)
Trading securities
14 
(4)
25 
Commercial mortgage loans
(18)
(22)
Net gains (losses) related to securitization entities
(5)
(47)
(36)
Derivative instruments
(15)1
(38)1
(25)1
(46)1
Other
(1)
(1)
22 
Total net investment gains (losses)
$ (40)
$ (139)
$ (68)
$ (209)
Investments (Activity for Credit Losses Recognized in Net Income on Debt Securities) (Details) (Debt Securities [Member], USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Debt Securities [Member]
 
 
 
 
Cumulative credit losses, beginning balance
$ 755 
$ 1,025 
$ 784 
$ 1,059 
Other-than-temporary impairments not previously recognized
11 
31 
Increases related to other-than-temporary impairments previously recognized
17 
32 
48 
78 
Securities sold, paid down or disposed
(47)
(90)
(110)
(190)
Cumulative credit losses, ending balance
$ 726 
$ 978 
$ 726 
$ 978 
Investments (Net Unrealized Gains and Losses on Available-for-Sale Investment Securities Reflected as a Separate Component of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions
Jun. 30, 2011
Mar. 31, 2011
Dec. 31, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2009
Adjustments to deferred acquisition costs, present value of future profits, sales inducements and benefit reserves
$ (694)
 
$ (583)
 
 
 
Income taxes, net
(153)
 
35 
 
 
 
Net unrealized investment gains (losses) including noncontrolling interests
291 
 
(50)
 
 
 
Less: net unrealized investment gains (losses) attributable to noncontrolling interests
55 
 
50 
 
 
 
Net unrealized investment gains (losses)
236 
(37)
(100)
29 
(860)
(1,398)
Net Unrealized Gains (Losses) on Investment Securities [Member]
 
 
 
 
 
 
Fixed maturity securities
1,141 
 
511 
 
 
 
Equity securities
21 
 
 
 
 
Other invested assets
(24)
 
(22)
 
 
 
Subtotal
$ 1,138 
 
$ 498 
 
 
 
Investments (Change in Net Unrealized Gains (Losses) on Available-for-Sale Securities Reported in Accumulated Other Comprehensive Income (Loss)) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Investments
 
 
 
 
Beginning balance
$ (37)
$ (860)
$ (100)
$ (1,398)
Cumulative effect of change in accounting
 
 
 
91 
Unrealized gains (losses) on investment securities
555 
1,498 
567 
2,261 
Adjustment to deferred acquisition costs
(36)
(80)
(57)
(193)
Adjustment to present value of future profits
(15)
(51)
(16)
(81)
Adjustment to sales inducements
(3)
(10)
(7)
(26)
Adjustment to benefit reserves
(94)
 
(31)
 
Provision for income taxes
(142)
(480)
(162)
(700)
Change in unrealized gains (losses) on investment securities
265 
877 
294 
1,261 
Reclassification adjustments to net investment (gains) losses, net of taxes
22 
22 
47 
84 
Change in net unrealized investment gains (losses)
287 
899 
341 
1,436 
Less: change in net unrealized investment (gains) losses attributable to noncontrolling interests
14 
10 
Ending balance
236 
29 
236 
29 
Reclassification adjustments to net investment (gains) losses, taxes
$ (13)
$ (11)
$ (26)
$ (45)
Investments (Amortized Cost or Cost, Gross Unrealized Gains (Losses) and Fair Value of Fixed Maturity and Equity Securities Classified as Available-for-Sale) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Amortized cost or cost, total
$ 55,415 
$ 54,985 
Fair value, fixed maturity securities
56,221 
55,183 
Fair value, equity securities
374 
332 
Fair value, total
56,595 
55,515 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
3,548 
3,568 
Fair value, fixed maturity securities
3,682 
3,705 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
153 
145 
Gross unrealized losses
(19)
(8)
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
 
 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
2,265 
2,257 
Fair value, fixed maturity securities
2,389 
2,369 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
128 
118 
Gross unrealized losses
(4)
(6)
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
 
 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
23,081 
23,282 
Fair value, fixed maturity securities
24,047 
23,967 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
1,260 
1,123 
Gross unrealized losses
(307)
(448)
U.S. Corporate [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
13 
10 
Gross unrealized losses
 
 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
14,038 
13,180 
Fair value, fixed maturity securities
14,428 
13,498 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
530 
485 
Gross unrealized losses
(139)
(167)
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
(1)
 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
5,252 
4,821 
Fair value, fixed maturity securities
4,983 
4,455 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
174 
116 
Gross unrealized losses
(268)
(304)
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
15 
18 
Gross unrealized losses
(190)
(196)
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
3,767 
3,936 
Fair value, fixed maturity securities
3,721 
3,743 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
135 
132 
Gross unrealized losses
(153)
(286)
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
Gross unrealized losses
(34)
(45)
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
2,172 
2,494 
Fair value, fixed maturity securities
2,106 
2,416 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
22 
18 
Gross unrealized losses
(86)
(94)
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
(2)
(2)
Fixed Maturity Securities [Member]
 
 
Amortized cost or cost, fixed maturity securities
55,063 
54,662 
Fair value, fixed maturity securities
56,221 
55,183 
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
2,421 
2,156 
Gross unrealized losses
(1,070)
(1,426)
Fixed Maturity Securities [Member] |
Not Other-than-Temporary Impairments [Member] |
Tax-Exempt [Member]
 
 
Gross unrealized gains
19 
19 
Gross unrealized losses
(94)
(113)
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
34 
34 
Gross unrealized losses
(227)
(243)
Fixed Maturity Securities [Member] |
Other-than-Temporary Impairments [Member] |
Tax-Exempt [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
 
 
Fixed Maturity Securities [Member] |
Tax-Exempt [Member]
 
 
Amortized cost or cost, fixed maturity securities
940 
1,124 
Fair value, fixed maturity securities
865 
1,030 
Equity Securities [Member]
 
 
Amortized cost or cost, equity securities
352 
323 
Fair value, equity securities
374 
332 
Equity Securities [Member] |
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
25 
13 
Gross unrealized losses
(3)
(4)
Equity Securities [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
 
 
Gross unrealized losses
 
 
Not Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
2,446 
2,169 
Gross unrealized losses
(1,073)
(1,430)
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized gains
34 
34 
Gross unrealized losses
$ (227)
$ (243)
Investments (Gross Unrealized Losses and Fair Value of Investment Securities) (Details) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Fair value
$ 12,242,000,000 
$ 14,917,000,000 
Gross unrealized losses
(1,300,000,000)1
(1,673,000,000)2
Number of securities
1,885 
2,236 
Less Than 12 Months [Member]
 
 
Fair value
7,141,000,000 
8,458,000,000 
Gross unrealized losses
(227,000,000)
(239,000,000)
Number of securities
962 
1,148 
Less Than 12 Months [Member] |
Equity Securities [Member]
 
 
Fair value
83,000,000 
77,000,000 
Gross unrealized losses
(2,000,000)
(3,000,000)
Number of securities
54 
48 
Less Than 12 Months [Member] |
Equity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
78,000,000 
72,000,000 
Gross unrealized losses
(1,000,000)
(2,000,000)
Number of securities
53 
47 
Less Than 12 Months [Member] |
Equity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
5,000,000 
5,000,000 
Gross unrealized losses
(1,000,000)
(1,000,000)
Number of securities
Less Than 12 Months [Member] |
Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Less Than 12 Months [Member] |
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,002,000,000 
545,000,000 
Gross unrealized losses
(19,000,000)
(8,000,000)
Number of securities
43 
36 
Less Than 12 Months [Member] |
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
189,000,000 
431,000,000 
Gross unrealized losses
(3,000,000)
(5,000,000)
Number of securities
58 
69 
Less Than 12 Months [Member] |
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
2,933,000,000 
3,615,000,000 
Gross unrealized losses
(94,000,000)
(125,000,000)
Number of securities
337 
443 
Less Than 12 Months [Member] |
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,896,000,000 
2,466,000,000 
Gross unrealized losses
(65,000,000)
(53,000,000)
Number of securities
276 
296 
Less Than 12 Months [Member] |
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
450,000,000 
461,000,000 
Gross unrealized losses
(19,000,000)
(23,000,000)
Number of securities
92 
92 
Less Than 12 Months [Member] |
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
361,000,000 
177,000,000 
Gross unrealized losses
(17,000,000)
(8,000,000)
Number of securities
51 
26 
Less Than 12 Months [Member] |
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
113,000,000 
401,000,000 
Gross unrealized losses
(5,000,000)
(2,000,000)
Number of securities
20 
37 
Less Than 12 Months [Member] |
Investment Grade [Member]
 
 
Fair value
6,837,000,000 
8,249,000,000 
Gross unrealized losses
(217,000,000)
(231,000,000)
Number of securities
863 
1,060 
Less Than 12 Months [Member] |
Below Investment Grade [Member]
 
 
Fair value
304,000,000 3
209,000,000 4
Gross unrealized losses
(10,000,000)3
(8,000,000)4
Number of securities
99 3
88 4
Less Than 12 Months [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
7,058,000,000 
8,381,000,000 
Gross unrealized losses
(225,000,000)
(236,000,000)
Number of securities
908 
1,100 
Less Than 12 Months [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
89,000,000 
22,000,000 
Gross unrealized losses
(34,000,000)
(8,000,000)
Number of securities
20 
18 
Less Than 12 Months [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
(1,000,000)
(2,000,000)
Number of securities
Less Than 12 Months [Member] |
Fixed Maturity Securities [Member] |
Tax-Exempt [Member]
 
 
Fair value
114,000,000 
285,000,000 
Gross unrealized losses
(3,000,000)
(12,000,000)
Number of securities
31 
101 
Less Than 12 Months [Member] |
Fixed Maturity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
6,969,000,000 
8,359,000,000 
Gross unrealized losses
(190,000,000)
(226,000,000)
Number of securities
883 
1,076 
12 Months Or More [Member]
 
 
Fair value
5,101,000,000 
6,459,000,000 
Gross unrealized losses
(1,073,000,000)5
(1,434,000,000)6
Number of securities
923 
1,088 
12 Months Or More [Member] |
Equity Securities [Member]
 
 
Fair value
10,000,000 
5,000,000 
Gross unrealized losses
(1,000,000)5
(1,000,000)6
Number of securities
10 
12 Months Or More [Member] |
Equity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
10,000,000 
5,000,000 
Gross unrealized losses
(1,000,000)5
(1,000,000)6
Number of securities
10 
12 Months Or More [Member] |
Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 5
 
Number of securities
 
 
12 Months Or More [Member] |
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
 
 
Gross unrealized losses
 5
 
Number of securities
 
 
12 Months Or More [Member] |
Government - Non-U.S. [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
2,000,000 
 
Gross unrealized losses
(1,000,000)
 
Number of securities
 
12 Months Or More [Member] |
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
11,000,000 
21,000,000 
Gross unrealized losses
(1,000,000)5
(1,000,000)6
Number of securities
12 Months Or More [Member] |
U.S. Corporate [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
77,000,000 
 
Gross unrealized losses
(30,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
U.S. Corporate [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(26,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
U.S. Corporate [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(6,000,000)
 
Number of securities
 
12 Months Or More [Member] |
U.S. Corporate [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,712,000,000 
2,338,000,000 
Gross unrealized losses
(213,000,000)5
(323,000,000)6
Number of securities
150 
191 
12 Months Or More [Member] |
Corporate - Non-U.S. [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
66,000,000 
 
Gross unrealized losses
(20,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Corporate - Non-U.S. [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
854,000,000 
1,141,000,000 
Gross unrealized losses
(75,000,000)5
(114,000,000)6
Number of securities
78 
102 
12 Months Or More [Member] |
Residential Mortgage-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
56,000,000 
 
Gross unrealized losses
(23,000,000)
 
Number of securities
21 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Residential Mortgage-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
12,000,000 
 
Gross unrealized losses
(27,000,000)
 
Number of securities
14 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Residential Mortgage-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
342,000,000 
 
Gross unrealized losses
(168,000,000)
 
Number of securities
124 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
13.00% 
 
12 Months Or More [Member] |
Residential Mortgage-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
82,000,000 
 
Gross unrealized losses
(184,000,000)
 
Number of securities
81 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
14.00% 
 
12 Months Or More [Member] |
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
884,000,000 
1,031,000,000 
Gross unrealized losses
(439,000,000)5
(477,000,000)6
Number of securities
373 
416 
12 Months Or More [Member] |
Commercial Mortgage-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
80,000,000 
 
Gross unrealized losses
(30,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Commercial Mortgage-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
2,000,000 
 
Gross unrealized losses
(3,000,000)
 
Number of securities
 
12 Months Or More [Member] |
Commercial Mortgage-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
61,000,000 
 
Gross unrealized losses
(22,000,000)
 
Number of securities
23 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Commercial Mortgage-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
17,000,000 
 
Gross unrealized losses
(33,000,000)
 
Number of securities
16 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
3.00% 
 
12 Months Or More [Member] |
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,034,000,000 
1,167,000,000 
Gross unrealized losses
(170,000,000)5
(323,000,000)6
Number of securities
180 
225 
12 Months Or More [Member] |
Other Asset-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
4,000,000 
 
Gross unrealized losses
(1,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Other Asset-Backed [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
1,000,000 
 
Gross unrealized losses
(1,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Other Asset-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
100,000,000 
 
Gross unrealized losses
(53,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
4.00% 
 
12 Months Or More [Member] |
Other Asset-Backed [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
11,000,000 
 
Gross unrealized losses
(12,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
1.00% 
 
12 Months Or More [Member] |
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
343,000,000 
512,000,000 
Gross unrealized losses
(83,000,000)5
(94,000,000)6
Number of securities
39 
53 
12 Months Or More [Member] |
Investment Grade [Member]
 
 
Fair value
3,616,000,000 
4,850,000,000 
Gross unrealized losses
(505,000,000)5
(764,000,000)6
Number of securities
527 
683 
12 Months Or More [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
469,000,000 
 
Gross unrealized losses
(183,000,000)
 
Number of securities
95 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
14.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Tax-Exempt [Member]
 
 
Fair value
184,000,000 
 
Gross unrealized losses
(78,000,000)
 
Number of securities
55 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
6.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
29,000,000 
 
Gross unrealized losses
(57,000,000)
 
Number of securities
21 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
4.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Tax-Exempt [Member]
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
140,000,000 
 
Gross unrealized losses
(54,000,000)
 
Number of securities
31 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
4.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
15,000,000 
 
Gross unrealized losses
(31,000,000)
 
Number of securities
20 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
143,000,000 
 
Gross unrealized losses
(50,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
4.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Finance And Insurance [Member]
 
 
Fair value
139,000,000 
 
Gross unrealized losses
(49,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
4.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Transportation Sector [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Other Industry [Member]
 
 
Fair value
4,000,000 
 
Gross unrealized losses
(1,000,000)
 
Number of securities
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(26,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Finance And Insurance [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Transportation Sector [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(26,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
2.00% 
 
12 Months Or More [Member] |
Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Other Industry [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member]
 
 
Fair value
1,485,000,000 3
1,609,000,000 4
Gross unrealized losses
(568,000,000)3 5
(670,000,000)4 6
Number of securities
396 3
405 4
12 Months Or More [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
517,000,000 
 
Gross unrealized losses
(249,000,000)
 
Number of securities
154 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
19.00% 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Tax-Exempt [Member]
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
110,000,000 
 
Gross unrealized losses
(229,000,000)
 
Number of securities
99 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
18.00% 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Tax-Exempt [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
503,000,000 
 
Gross unrealized losses
(243,000,000)
 
Number of securities
152 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
19.00% 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Structured Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
110,000,000 
 
Gross unrealized losses
(229,000,000)
 
Number of securities
99 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
18.00% 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(6,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Finance And Insurance [Member]
 
 
Fair value
14,000,000 
 
Gross unrealized losses
(6,000,000)
 
Number of securities
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Consumer- Cyclical [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
20 To 50 Percent Below Cost [Member] |
Transportation Sector [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Finance And Insurance [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Consumer- Cyclical [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Corporate Debt and Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member] |
Transportation Sector [Member]
 
 
Fair value
 
 
Gross unrealized losses
 
 
Number of securities
 
 
Percentage Of Total Gross Unrealized Losses Continuous Unrealized Loss Position
 
 
12 Months Or More [Member] |
Below Investment Grade [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized losses
208,000,000 
213,000,000 
12 Months Or More [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
5,091,000,000 
6,454,000,000 
Gross unrealized losses
(1,072,000,000)5
(1,433,000,000)6
Number of securities
913 
1,084 
12 Months Or More [Member] |
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
986,000,000 
1,428,000,000 
Gross unrealized losses
(432,000,000)5
(652,000,000)6
Number of securities
249 
328 
12 Months Or More [Member] |
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
139,000,000 
174,000,000 
Gross unrealized losses
(286,000,000)5
(363,000,000)6
Number of securities
120 
168 
12 Months Or More [Member] |
Fixed Maturity Securities [Member] |
Tax-Exempt [Member]
 
 
Fair value
253,000,000 
244,000,000 
Gross unrealized losses
(91,000,000)5
(101,000,000)6
Number of securities
88 
90 
12 Months Or More [Member] |
Fixed Maturity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
3,966,000,000 
4,852,000,000 
Gross unrealized losses
(354,000,000)5
(418,000,000)6
Number of securities
544 
588 
12 Months Or More [Member] |
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized losses
222,000,000 
240,000,000 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,002,000,000 
545,000,000 
Gross unrealized losses
(19,000,000)1
(8,000,000)2
Number of securities
43 
36 
Fixed Maturity Securities [Member] |
Tax-Exempt [Member]
 
 
Fair value
367,000,000 
529,000,000 
Gross unrealized losses
(94,000,000)1
(113,000,000)2
Number of securities
119 
191 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
200,000,000 
452,000,000 
Gross unrealized losses
(4,000,000)1
(6,000,000)2
Number of securities
63 
76 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
4,645,000,000 
5,953,000,000 
Gross unrealized losses
(307,000,000)1
(448,000,000)2
Number of securities
487 
634 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
2,750,000,000 
3,607,000,000 
Gross unrealized losses
(140,000,000)1
(167,000,000)2
Number of securities
354 
398 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,334,000,000 
1,492,000,000 
Gross unrealized losses
(458,000,000)1
(500,000,000)2
Number of securities
465 
508 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
1,395,000,000 
1,344,000,000 
Gross unrealized losses
(187,000,000)1
(331,000,000)2
Number of securities
231 
251 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Fair value
456,000,000 
913,000,000 
Gross unrealized losses
(88,000,000)1
(96,000,000)2
Number of securities
59 
90 
Fixed Maturity Securities [Member]
 
 
Fair value
12,149,000,000 
14,835,000,000 
Gross unrealized losses
(1,297,000,000)1
(1,669,000,000)2
Number of securities
1,821 
2,184 
Fixed Maturity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
10,935,000,000 
13,211,000,000 
Gross unrealized losses
(544,000,000)1
(644,000,000)2
Number of securities
1,427 
1,664 
Fixed Maturity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
1,075,000,000 
1,450,000,000 
Gross unrealized losses
(466,000,000)1
(660,000,000)2
Number of securities
269 
346 
Fixed Maturity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
139,000,000 
174,000,000 
Gross unrealized losses
(287,000,000)1
(365,000,000)2
Number of securities
125 
174 
Equity Securities [Member]
 
 
Fair value
93,000,000 
82,000,000 
Gross unrealized losses
(3,000,000)1
(4,000,000)2
Number of securities
64 
52 
Equity Securities [Member] |
Less than 20 Percent Below Cost [Member]
 
 
Fair value
88,000,000 
77,000,000 
Gross unrealized losses
(2,000,000)1
(3,000,000)2
Number of securities
63 
51 
Equity Securities [Member] |
20 To 50 Percent Below Cost [Member]
 
 
Fair value
5,000,000 
5,000,000 
Gross unrealized losses
(1,000,000)1
(1,000,000)2
Number of securities
Equity Securities [Member] |
Greater Than 50 Percent Below Cost [Member]
 
 
Fair value
 
 
Gross unrealized losses
 1
 
Number of securities
 
 
Other-than-Temporary Impairments [Member]
 
 
Gross unrealized losses
227,000,000 
243,000,000 
Investment Grade [Member]
 
 
Fair value
10,453,000,000 
13,099,000,000 
Gross unrealized losses
(722,000,000)1
(995,000,000)2
Number of securities
1,390 
1,743 
Below Investment Grade [Member]
 
 
Fair value
1,789,000,000 3
1,818,000,000 4
Gross unrealized losses
$ (578,000,000)1 3
$ (678,000,000)2 4
Number of securities
495 3
493 4
Investments (Scheduled Maturity Distribution of Fixed Maturity Securities) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Amortized cost or cost
 
 
Due one year or less
$ 2,831 
 
Due after one year through five years
11,766 
 
Due after five years through ten years
9,570 
 
Due after ten years
19,705 
 
Subtotal
43,872 
 
Total
55,063 
 
Fair value
 
 
Due one year or less
2,857 
 
Due after one year through five years
12,103 
 
Due after five years through ten years
10,031 
 
Due after ten years
20,420 
 
Subtotal
45,411 
 
Total
56,221 
55,183 
Residential Mortgage-Backed [Member]
 
 
Amortized cost or cost
 
 
Fixed maturity securities
5,252 
 
Fair value
 
 
Fixed maturity securities
4,983 
 
Commercial Mortgage-Backed [Member]
 
 
Amortized cost or cost
 
 
Fixed maturity securities
3,767 
 
Fair value
 
 
Fixed maturity securities
3,721 
 
Other Asset-Backed [Member]
 
 
Amortized cost or cost
 
 
Fixed maturity securities
2,172 
 
Fair value
 
 
Fixed maturity securities
$ 2,106 
 
Investments (Distribution Across Property Type and Geographic Region for Commercial Mortgage Loans) (Details) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2009
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
 
 
 
Allowance for losses
 
 
(70,000,000)
(52,000,000)
(48,000,000)
Total
6,432,000,000 
6,718,000,000 
 
 
 
% of total
100.00% 
100.00% 
 
 
 
Commercial Mortgage Loan [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
6,485,000,000 
6,772,000,000 
 
 
 
Unamortized balance of loan origination fees and costs
4,000,000 
5,000,000 
 
 
 
Allowance for losses
(57,000,000)
(59,000,000)
 
 
 
% of total
100.00% 
100.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Retail [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
 
 
 
% of total
30.00% 
29.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Office [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
 
 
 
% of total
27.00% 
27.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Industrial [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
 
 
 
% of total
27.00% 
26.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Apartments [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
 
 
 
% of total
11.00% 
11.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Mixed Use/Other [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
 
 
 
% of total
5.00% 
7.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Pacific [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,615,000,000 
1,769,000,000 
 
 
 
% of total
25.00% 
26.00% 
 
 
 
Commercial Mortgage Loan [Member] |
South Atlantic [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,624,000,000 
1,583,000,000 
 
 
 
% of total
25.00% 
23.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Middle Atlantic [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
865,000,000 
937,000,000 
 
 
 
% of total
13.00% 
14.00% 
 
 
 
Commercial Mortgage Loan [Member] |
East North Central [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
577,000,000 
612,000,000 
 
 
 
% of total
9.00% 
9.00% 
 
 
 
Commercial Mortgage Loan [Member] |
Mountain [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
516,000,000 
540,000,000 
 
 
 
% of total
8.00% 
8.00% 
 
 
 
Commercial Mortgage Loan [Member] |
New England [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
422,000,000 
482,000,000 
 
 
 
% of total
7.00% 
7.00% 
 
 
 
Commercial Mortgage Loan [Member] |
West North Central [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
349,000,000 
369,000,000 
 
 
 
% of total
5.00% 
6.00% 
 
 
 
Commercial Mortgage Loan [Member] |
West South Central [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
348,000,000 
297,000,000 
 
 
 
% of total
5.00% 
4.00% 
 
 
 
Commercial Mortgage Loan [Member] |
East South Central [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
169,000,000 
183,000,000 
 
 
 
% of total
3.00% 
3.00% 
 
 
 
Retail [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
 
 
 
Office [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
 
 
 
Industrial [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
 
 
 
Apartments [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
 
 
 
Mixed Use/Other [Member]
 
 
 
 
 
Commercial mortgage loans, recorded investment
$ 345,000,000 
$ 435,000,000 
 
 
 
Investments (Aging of Past Due Commercial Mortgage Loans by Property Type) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
Percent of total commercial mortgage loans
100.00% 
100.00% 
31-60 Days Past Due [Member]
 
 
Commercial mortgage loans, recorded investment
15,000,000 
 
31-60 Days Past Due [Member] |
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
9,000,000 
 
31-60 Days Past Due [Member] |
Office [Member]
 
 
Commercial mortgage loans, recorded investment
4,000,000 
 
31-60 Days Past Due [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
2,000,000 
 
61-90 Days Past Due [Member]
 
 
Commercial mortgage loans, recorded investment
 
6,000,000 
61-90 Days Past Due [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
 
6,000,000 
Greater Than 90 Days Past Due [Member]
 
 
Commercial mortgage loans, recorded investment
33,000,000 
39,000,000 
Percent of total commercial mortgage loans
1.00% 
1.00% 
Greater Than 90 Days Past Due [Member] |
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
5,000,000 
 
Greater Than 90 Days Past Due [Member] |
Office [Member]
 
 
Commercial mortgage loans, recorded investment
18,000,000 
12,000,000 
Greater Than 90 Days Past Due [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
10,000,000 
27,000,000 
Total Past Due [Member]
 
 
Commercial mortgage loans, recorded investment
48,000,000 
45,000,000 
Percent of total commercial mortgage loans
1.00% 
1.00% 
Total Past Due [Member] |
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
14,000,000 
 
Total Past Due [Member] |
Office [Member]
 
 
Commercial mortgage loans, recorded investment
22,000,000 
12,000,000 
Total Past Due [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
12,000,000 
33,000,000 
Current [Member]
 
 
Commercial mortgage loans, recorded investment
6,437,000,000 
6,727,000,000 
Percent of total commercial mortgage loans
99.00% 
99.00% 
Current [Member] |
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,898,000,000 
1,974,000,000 
Current [Member] |
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,735,000,000 
1,838,000,000 
Current [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,741,000,000 
1,755,000,000 
Current [Member] |
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
Current [Member] |
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
$ 345,000,000 
$ 435,000,000 
Investments (Commercial Mortgage Loans on Nonaccrual Status by Property Type) (Details) (USD $)
Jun. 30, 2011
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 33,000,000 
$ 39,000,000 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
5,000,000 
 
Office [Member]
 
 
Commercial mortgage loans, recorded investment
18,000,000 
12,000,000 
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
10,000,000 
27,000,000 
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Investments (Allowance for Credit Losses and Recorded Investment in Commercial Mortgage Loans) (Details) (USD $)
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Jun. 30, 2011
Dec. 31, 2010
3 Months Ended
Jun. 30, 2011
Allowance for Credit Losses [Member]
6 Months Ended
Jun. 30, 2011
Allowance for Credit Losses [Member]
Jun. 30, 2011
Commercial Mortgage Loans Principal Balance [Member]
Beginning balance
$ 52,000,000 
$ 48,000,000 
 
 
$ 58,000,000 
$ 59,000,000 
 
Charge-offs
 
 
 
 
(4,000,000)
(5,000,000)
 
Recoveries
 
 
 
 
 
 
 
Provision
18,000,000 1
22,000,000 1
 
 
3,000,000 
3,000,000 
 
Ending balance
70,000,000 
70,000,000 
 
 
57,000,000 
57,000,000 
 
Ending allowance for individually impaired loans
 
 
 
 
 
 
 
Ending allowance for loans not individually impaired that were evaluated collectively for impairment
 
 
 
 
57,000,000 
57,000,000 
 
Ending balance
 
 
6,485,000,000 
6,772,000,000 
 
 
6,485,000,000 
Ending balance of individually impaired
 
 
 
 
 
 
13,000,000 
Ending balance of loans not individually impaired that were collectively evaluated for impairment
 
 
 
 
 
 
$ 6,472,000,000 
Investments (Activity in Allowance for Losses) (Details) (USD $)
In Millions
6 Months Ended
Jun. 30,
3 Months Ended
Jun. 30, 2010
2011
2010
Investments
 
 
 
Beginning balance
$ 52 
 
$ 48 
Provision
18 1
 
22 1
Release
 
 
 
Ending balance
70 
 
70 
Charge-offs, held-for-sale commercial mortgage loans
 
$ 13 
 
Investments (Impaired Commercial Mortgage Loans by Property Type) (Details) (USD $)
In Millions
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Recorded investment
$ 13 
$ 30 
Unpaid principal balance
17 
40 
Charge-offs, Impaired Loans
10 
Related allowances
 
 
Average recorded investment
Interest income recognized
 
 
Retail [Member]
 
 
Recorded investment
Unpaid principal balance
Charge-offs, Impaired Loans
Related allowances
 
 
Average recorded investment
Interest income recognized
 
 
Office [Member]
 
 
Recorded investment
10 
Unpaid principal balance
13 
Charge-offs, Impaired Loans
Related allowances
 
 
Average recorded investment
10 
Interest income recognized
 
 
Industrial [Member]
 
 
Recorded investment
 
19 
Unpaid principal balance
 
24 
Charge-offs, Impaired Loans
 
Related allowances
 
 
Average recorded investment
 
Interest income recognized
 
 
Apartments [Member]
 
 
Recorded investment
 
 
Unpaid principal balance
 
 
Charge-offs, Impaired Loans
 
 
Related allowances
 
 
Average recorded investment
 
 
Interest income recognized
 
 
Mixed Use/Other [Member]
 
 
Recorded investment
 
 
Unpaid principal balance
 
 
Charge-offs, Impaired Loans
 
 
Related allowances
 
 
Average recorded investment
 
 
Interest income recognized
 
 
Investments (Average Loan-To-Value of Commercial Mortgage Loans by Property Type I) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
% of total
100.00% 
100.00% 
Weighted-average debt service coverage ratio
2.05 
2.01 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
Retail [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
458,000,000 
477,000,000 
Retail [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
247,000,000 
287,000,000 
Retail [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
847,000,000 
805,000,000 
Retail [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
322,000,000 
363,000,000 
Retail [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
38,000,000 1
42,000,000 2
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
Office [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
321,000,000 
320,000,000 
Office [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
294,000,000 
327,000,000 
Office [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
605,000,000 
612,000,000 
Office [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
365,000,000 
446,000,000 
Office [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
172,000,000 1
145,000,000 2
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
Industrial [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
498,000,000 
431,000,000 
Industrial [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
329,000,000 
361,000,000 
Industrial [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
613,000,000 
625,000,000 
Industrial [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
283,000,000 
284,000,000 
Industrial [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
30,000,000 1
87,000,000 2
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
Apartments [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
147,000,000 
99,000,000 
Apartments [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
191,000,000 
172,000,000 
Apartments [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
304,000,000 
321,000,000 
Apartments [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
61,000,000 
133,000,000 
Apartments [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
15,000,000 1
 2
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
Mixed Use/Other [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
83,000,000 
123,000,000 
Mixed Use/Other [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
40,000,000 
10,000,000 
Mixed Use/Other [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
72,000,000 
63,000,000 
Mixed Use/Other [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
140,000,000 
221,000,000 
Mixed Use/Other [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
10,000,000 1
18,000,000 2
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
1,507,000,000 
1,450,000,000 
% of total
23.00% 
22.00% 
Weighted-average debt service coverage ratio
2.28 
2.24 
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
1,101,000,000 
1,157,000,000 
% of total
17.00% 
17.00% 
Weighted-average debt service coverage ratio
1.86 
1.99 
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
2,441,000,000 
2,426,000,000 
% of total
38.00% 
36.00% 
Weighted-average debt service coverage ratio
2.16 
1.79 
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
1,171,000,000 
1,447,000,000 
% of total
18.00% 
21.00% 
Weighted-average debt service coverage ratio
1.80 
2.42 
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
265,000,000 1
292,000,000 2
% of total
4.00% 1
4.00% 2
Weighted-average debt service coverage ratio
1.56 1
0.75 2
Greater than 100% [Member] |
Impaired Loans [Member]
 
 
Commercial mortgage loans, recorded investment
13,000,000 
25,000,000 
Greater than 100% [Member] |
Loans in Good Standing [Member]
 
 
Commercial mortgage loans, recorded investment
$ 252,000,000 
$ 267,000,000 
Greater than 100% [Member] |
Weighted Average Loan-To-Value [Member]
 
 
Weighted-average loan-to-value
119.00% 
117.00% 
Investments (Average Loan-to-value of Commercial Mortgage Loans by Property Type II) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
% of total
100.00% 
100.00% 
Weighted-average debt service coverage ratio
2.05 
2.01 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
Retail [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
458,000,000 
477,000,000 
Retail [Member] |
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
147,000,000 
141,000,000 
Retail [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
247,000,000 
287,000,000 
Retail [Member] |
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
25,000,000 
34,000,000 
Retail [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
175,000,000 
182,000,000 
Retail [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
847,000,000 
805,000,000 
Retail [Member] |
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
1,000,000 
Retail [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
322,000,000 
363,000,000 
Retail [Member] |
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
3,000,000 
Retail [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
38,000,000 1
42,000,000 2
Retail [Member] |
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
3,000,000 
3,000,000 
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
Office [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
321,000,000 
320,000,000 
Office [Member] |
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
87,000,000 
90,000,000 
Office [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
101,000,000 
117,000,000 
Office [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
294,000,000 
327,000,000 
Office [Member] |
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
7,000,000 
19,000,000 
Office [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
605,000,000 
612,000,000 
Office [Member] |
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
5,000,000 
5,000,000 
Office [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
365,000,000 
446,000,000 
Office [Member] |
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
3,000,000 
Office [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
172,000,000 1
145,000,000 2
Office [Member] |
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
 
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
Industrial [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
498,000,000 
431,000,000 
Industrial [Member] |
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
97,000,000 
108,000,000 
Industrial [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
329,000,000 
361,000,000 
Industrial [Member] |
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
8,000,000 
8,000,000 
Industrial [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
113,000,000 
124,000,000 
Industrial [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
613,000,000 
625,000,000 
Industrial [Member] |
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
6,000,000 
4,000,000 
Industrial [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
283,000,000 
284,000,000 
Industrial [Member] |
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
2,000,000 
Industrial [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
30,000,000 1
87,000,000 2
Industrial [Member] |
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
2,000,000 
2,000,000 
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
Apartments [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
147,000,000 
99,000,000 
Apartments [Member] |
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
34,000,000 
35,000,000 
Apartments [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
191,000,000 
172,000,000 
Apartments [Member] |
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
9,000,000 
9,000,000 
Apartments [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
304,000,000 
321,000,000 
Apartments [Member] |
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Apartments [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
61,000,000 
133,000,000 
Apartments [Member] |
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
19,000,000 
20,000,000 
Apartments [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
15,000,000 1
 2
Apartments [Member] |
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Apartments [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
62,000,000 
64,000,000 
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
Mixed Use/Other [Member] |
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
83,000,000 
123,000,000 
Mixed Use/Other [Member] |
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
8,000,000 
17,000,000 
Mixed Use/Other [Member] |
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
40,000,000 
10,000,000 
Mixed Use/Other [Member] |
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
5,000,000 
Mixed Use/Other [Member] |
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
72,000,000 
63,000,000 
Mixed Use/Other [Member] |
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
140,000,000 
221,000,000 
Mixed Use/Other [Member] |
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
10,000,000 1
18,000,000 2
Mixed Use/Other [Member] |
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
8,000,000 
22,000,000 
0%-50% [Member]
 
 
Commercial mortgage loans, recorded investment
1,507,000,000 
1,450,000,000 
% of total
23.00% 
22.00% 
Weighted-average debt service coverage ratio
2.28 
2.24 
0%-50% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
373,000,000 
391,000,000 
% of total
82.00% 
77.00% 
Weighted-average debt service coverage ratio
1.74 
1.82 
51%-60% [Member]
 
 
Commercial mortgage loans, recorded investment
1,101,000,000 
1,157,000,000 
% of total
17.00% 
17.00% 
Weighted-average debt service coverage ratio
1.86 
1.99 
51%-60% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
49,000,000 
75,000,000 
% of total
11.00% 
15.00% 
Weighted-average debt service coverage ratio
1.46 
1.35 
61%-75% [Member]
 
 
Commercial mortgage loans, recorded investment
2,441,000,000 
2,426,000,000 
% of total
38.00% 
36.00% 
Weighted-average debt service coverage ratio
2.16 
1.79 
61%-75% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
11,000,000 
10,000,000 
% of total
2.00% 
2.00% 
Weighted-average debt service coverage ratio
1.26 
1.05 
76%-100% [Member]
 
 
Commercial mortgage loans, recorded investment
1,171,000,000 
1,447,000,000 
% of total
18.00% 
21.00% 
Weighted-average debt service coverage ratio
1.80 
2.42 
76%-100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
20,000,000 
28,000,000 
% of total
4.00% 
5.00% 
Weighted-average debt service coverage ratio
0.93 
1.18 
Greater than 100% [Member]
 
 
Commercial mortgage loans, recorded investment
265,000,000 1
292,000,000 2
% of total
4.00% 1
4.00% 2
Weighted-average debt service coverage ratio
1.56 1
0.75 2
Greater than 100% [Member] |
Impaired Loans [Member]
 
 
Commercial mortgage loans, recorded investment
13,000,000 
25,000,000 
Greater than 100% [Member] |
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
6,000,000 
5,000,000 
% of total
1.00% 
1.00% 
Weighted-average debt service coverage ratio
0.47 
0.52 
Greater than 100% [Member] |
Loans in Good Standing [Member]
 
 
Commercial mortgage loans, recorded investment
252,000,000 
267,000,000 
Restricted Commercial Mortgage Loans Related to Securitization Entities [Member]
 
 
Commercial mortgage loans, recorded investment
$ 459,000,000 
$ 509,000,000 
% of total
100.00% 
100.00% 
Weighted-average debt service coverage ratio
1.65 
1.69 
Investments (Debt Service Coverage of Commercial Mortgage Loans by Property Type I) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member]
 
 
Commercial mortgage loans, recorded investment
6,485,000,000 
6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member] |
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
% of total
30.00% 
29.00% 
Commercial Mortgage Loan [Member] |
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
% of total
27.00% 
27.00% 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
1,912,000,000 
1,974,000,000 
Retail [Member] |
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
92,000,000 
125,000,000 
Retail [Member] |
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
7,000,000 
14,000,000 
Retail [Member] |
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Retail [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
357,000,000 
317,000,000 
Retail [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
48,000,000 
6,000,000 
Retail [Member] |
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Retail [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
412,000,000 
490,000,000 
Retail [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
66,000,000 
52,000,000 
Retail [Member] |
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
 
Retail [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
587,000,000 
512,000,000 
Retail [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
21,000,000 
77,000,000 
Retail [Member] |
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
2,000,000 
Retail [Member] |
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
352,000,000 
415,000,000 
Retail [Member] |
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
33,000,000 
33,000,000 
Retail [Member] |
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
111,000,000 
113,000,000 
Retail [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,800,000,000 
1,859,000,000 
Retail [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
175,000,000 
182,000,000 
Retail [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
112,000,000 
115,000,000 
Office [Member]
 
 
Commercial mortgage loans, recorded investment
1,757,000,000 
1,850,000,000 
Office [Member] |
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
194,000,000 
176,000,000 
Office [Member] |
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
12,000,000 
14,000,000 
Office [Member] |
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Office [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
135,000,000 
186,000,000 
Office [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
12,000,000 
14,000,000 
Office [Member] |
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Office [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
268,000,000 
238,000,000 
Office [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
39,000,000 
23,000,000 
Office [Member] |
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
8,000,000 
 
Office [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
432,000,000 
524,000,000 
Office [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
25,000,000 
45,000,000 
Office [Member] |
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
57,000,000 
Office [Member] |
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
553,000,000 
547,000,000 
Office [Member] |
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
13,000,000 
21,000,000 
Office [Member] |
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
167,000,000 
122,000,000 
Office [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,582,000,000 
1,671,000,000 
Office [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
101,000,000 
117,000,000 
Office [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
175,000,000 
179,000,000 
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
596,000,000 
617,000,000 
% of total
10.00% 
10.00% 
Weighted-average loan-to-value
84.00% 
90.00% 
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
51,000,000 
39,000,000 
% of total
11.00% 
8.00% 
Weighted-average loan-to-value
63.00% 
65.00% 
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
1,000,000 
% of total
 
 
Weighted-average loan-to-value
47.00% 
30.00% 
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
826,000,000 
743,000,000 
% of total
14.00% 
12.00% 
Weighted-average loan-to-value
72.00% 
71.00% 
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
94,000,000 
50,000,000 
% of total
21.00% 
10.00% 
Weighted-average loan-to-value
39.00% 
55.00% 
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
4,000,000 
9,000,000 
% of total
1.00% 
2.00% 
Weighted-average loan-to-value
77.00% 
62.00% 
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,086,000,000 
1,197,000,000 
% of total
18.00% 
19.00% 
Weighted-average loan-to-value
66.00% 
68.00% 
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
155,000,000 
117,000,000 
% of total
34.00% 
23.00% 
Weighted-average loan-to-value
37.00% 
42.00% 
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
9,000,000 
 
% of total
2.00% 
 
Weighted-average loan-to-value
26.00% 
 
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,987,000,000 
2,102,000,000 
% of total
33.00% 
34.00% 
Weighted-average loan-to-value
60.00% 
62.00% 
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
72,000,000 
209,000,000 
% of total
15.00% 
41.00% 
Weighted-average loan-to-value
43.00% 
41.00% 
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
35,000,000 
81,000,000 
% of total
7.00% 
14.00% 
Weighted-average loan-to-value
77.00% 
83.00% 
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,519,000,000 
1,537,000,000 
% of total
25.00% 
25.00% 
Weighted-average loan-to-value
51.00% 
50.00% 
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
87,000,000 
94,000,000 
% of total
19.00% 
18.00% 
Weighted-average loan-to-value
31.00% 
31.00% 
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
422,000,000 
485,000,000 
% of total
90.00% 
84.00% 
Weighted-average loan-to-value
79.00% 
77.00% 
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
6,014,000,000 
6,196,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
63.00% 
64.00% 
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
459,000,000 
509,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
40.00% 
43.00% 
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
$ 471,000,000 
$ 576,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
77.00% 
78.00% 
Investments (Debt Service Coverage of Commercial Mortgage Loans by Property Type II) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member]
 
 
Commercial mortgage loans, recorded investment
6,485,000,000 
6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member] |
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
% of total
27.00% 
26.00% 
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
1,753,000,000 
1,788,000,000 
Industrial [Member] |
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
242,000,000 
260,000,000 
Industrial [Member] |
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
20,000,000 
11,000,000 
Industrial [Member] |
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
1,000,000 
Industrial [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
226,000,000 
166,000,000 
Industrial [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
24,000,000 
9,000,000 
Industrial [Member] |
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
5,000,000 
Industrial [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
316,000,000 
292,000,000 
Industrial [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
27,000,000 
25,000,000 
Industrial [Member] |
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Industrial [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
596,000,000 
698,000,000 
Industrial [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
11,000,000 
50,000,000 
Industrial [Member] |
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
6,000,000 
1,000,000 
Industrial [Member] |
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
355,000,000 
346,000,000 
Industrial [Member] |
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
31,000,000 
29,000,000 
Industrial [Member] |
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
11,000,000 
19,000,000 
Industrial [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,735,000,000 
1,762,000,000 
Industrial [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
113,000,000 
124,000,000 
Industrial [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
18,000,000 
26,000,000 
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
596,000,000 
617,000,000 
% of total
10.00% 
10.00% 
Weighted-average loan-to-value
84.00% 
90.00% 
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
51,000,000 
39,000,000 
% of total
11.00% 
8.00% 
Weighted-average loan-to-value
63.00% 
65.00% 
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
1,000,000 
% of total
 
 
Weighted-average loan-to-value
47.00% 
30.00% 
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
826,000,000 
743,000,000 
% of total
14.00% 
12.00% 
Weighted-average loan-to-value
72.00% 
71.00% 
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
94,000,000 
50,000,000 
% of total
21.00% 
10.00% 
Weighted-average loan-to-value
39.00% 
55.00% 
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
4,000,000 
9,000,000 
% of total
1.00% 
2.00% 
Weighted-average loan-to-value
77.00% 
62.00% 
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,086,000,000 
1,197,000,000 
% of total
18.00% 
19.00% 
Weighted-average loan-to-value
66.00% 
68.00% 
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
155,000,000 
117,000,000 
% of total
34.00% 
23.00% 
Weighted-average loan-to-value
37.00% 
42.00% 
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
9,000,000 
 
% of total
2.00% 
 
Weighted-average loan-to-value
26.00% 
 
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,987,000,000 
2,102,000,000 
% of total
33.00% 
34.00% 
Weighted-average loan-to-value
60.00% 
62.00% 
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
72,000,000 
209,000,000 
% of total
15.00% 
41.00% 
Weighted-average loan-to-value
43.00% 
41.00% 
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
35,000,000 
81,000,000 
% of total
7.00% 
14.00% 
Weighted-average loan-to-value
77.00% 
83.00% 
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,519,000,000 
1,537,000,000 
% of total
25.00% 
25.00% 
Weighted-average loan-to-value
51.00% 
50.00% 
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
87,000,000 
94,000,000 
% of total
19.00% 
18.00% 
Weighted-average loan-to-value
31.00% 
31.00% 
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
422,000,000 
485,000,000 
% of total
90.00% 
84.00% 
Weighted-average loan-to-value
79.00% 
77.00% 
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
6,014,000,000 
6,196,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
63.00% 
64.00% 
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
459,000,000 
509,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
40.00% 
43.00% 
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
$ 471,000,000 
$ 576,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
77.00% 
78.00% 
Investments (Debt Service Coverage of Commercial Mortgage Loans by Property Type III) (Details) (USD $)
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 6,485,000,000 
$ 6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member]
 
 
Commercial mortgage loans, recorded investment
6,485,000,000 
6,772,000,000 
% of total
100.00% 
100.00% 
Commercial Mortgage Loan [Member] |
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
% of total
11.00% 
11.00% 
Commercial Mortgage Loan [Member] |
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
% of total
5.00% 
7.00% 
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
718,000,000 
725,000,000 
Apartments [Member] |
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
12,000,000 
7,000,000 
Apartments [Member] |
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
12,000,000 
 
Apartments [Member] |
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Apartments [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
91,000,000 
62,000,000 
Apartments [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
10,000,000 
21,000,000 
Apartments [Member] |
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
4,000,000 
Apartments [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
79,000,000 
160,000,000 
Apartments [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
20,000,000 
10,000,000 
Apartments [Member] |
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Apartments [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
301,000,000 
290,000,000 
Apartments [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
15,000,000 
26,000,000 
Apartments [Member] |
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
29,000,000 
21,000,000 
Apartments [Member] |
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
168,000,000 
135,000,000 
Apartments [Member] |
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
5,000,000 
7,000,000 
Apartments [Member] |
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
38,000,000 
46,000,000 
Apartments [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
651,000,000 
654,000,000 
Apartments [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
62,000,000 
64,000,000 
Apartments [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
67,000,000 
71,000,000 
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
345,000,000 
435,000,000 
Mixed Use/Other [Member] |
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
56,000,000 
49,000,000 
Mixed Use/Other [Member] |
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
17,000,000 
12,000,000 
Mixed Use/Other [Member] |
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
4,000,000 
 
Mixed Use/Other [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
11,000,000 
17,000,000 
Mixed Use/Other [Member] |
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
3,000,000 
7,000,000 
Mixed Use/Other [Member] |
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
71,000,000 
78,000,000 
Mixed Use/Other [Member] |
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
11,000,000 
Mixed Use/Other [Member] |
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
 
 
Mixed Use/Other [Member] |
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
91,000,000 
94,000,000 
Mixed Use/Other [Member] |
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
5,000,000 
4,000,000 
Mixed Use/Other [Member] |
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
95,000,000 
185,000,000 
Mixed Use/Other [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
246,000,000 
250,000,000 
Mixed Use/Other [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
8,000,000 
22,000,000 
Mixed Use/Other [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
99,000,000 
185,000,000 
Less than 1.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
596,000,000 
617,000,000 
% of total
10.00% 
10.00% 
Weighted-average loan-to-value
84.00% 
90.00% 
Less than 1.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
51,000,000 
39,000,000 
% of total
11.00% 
8.00% 
Weighted-average loan-to-value
63.00% 
65.00% 
Less than 1.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,000,000 
1,000,000 
% of total
 
 
Weighted-average loan-to-value
47.00% 
30.00% 
1.00 - 1.25 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
826,000,000 
743,000,000 
% of total
14.00% 
12.00% 
Weighted-average loan-to-value
72.00% 
71.00% 
1.00 - 1.25 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
94,000,000 
50,000,000 
% of total
21.00% 
10.00% 
Weighted-average loan-to-value
39.00% 
55.00% 
1.00 - 1.25 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
4,000,000 
9,000,000 
% of total
1.00% 
2.00% 
Weighted-average loan-to-value
77.00% 
62.00% 
1.26 - 1.50 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,086,000,000 
1,197,000,000 
% of total
18.00% 
19.00% 
Weighted-average loan-to-value
66.00% 
68.00% 
1.26 - 1.50 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
155,000,000 
117,000,000 
% of total
34.00% 
23.00% 
Weighted-average loan-to-value
37.00% 
42.00% 
1.26 - 1.50 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
9,000,000 
 
% of total
2.00% 
 
Weighted-average loan-to-value
26.00% 
 
1.51 - 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,987,000,000 
2,102,000,000 
% of total
33.00% 
34.00% 
Weighted-average loan-to-value
60.00% 
62.00% 
1.51 - 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
72,000,000 
209,000,000 
% of total
15.00% 
41.00% 
Weighted-average loan-to-value
43.00% 
41.00% 
1.51 - 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
35,000,000 
81,000,000 
% of total
7.00% 
14.00% 
Weighted-average loan-to-value
77.00% 
83.00% 
Greater than 2.00 [Member] |
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
1,519,000,000 
1,537,000,000 
% of total
25.00% 
25.00% 
Weighted-average loan-to-value
51.00% 
50.00% 
Greater than 2.00 [Member] |
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
87,000,000 
94,000,000 
% of total
19.00% 
18.00% 
Weighted-average loan-to-value
31.00% 
31.00% 
Greater than 2.00 [Member] |
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
422,000,000 
485,000,000 
% of total
90.00% 
84.00% 
Weighted-average loan-to-value
79.00% 
77.00% 
Fixed Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
6,014,000,000 
6,196,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
63.00% 
64.00% 
Fixed Rate Restricted Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
459,000,000 
509,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
40.00% 
43.00% 
Floating Rate Commercial Mortgage Loans [Member]
 
 
Commercial mortgage loans, recorded investment
$ 471,000,000 
$ 576,000,000 
% of total
100.00% 
100.00% 
Weighted-average loan-to-value
77.00% 
78.00% 
Investments (Restricted Commercial Mortgage Loans by Property Type) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2011
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 459 
$ 509 
Allowance for losses
(2)
(2)
Total
457 
507 
% of total
100.00% 
100.00% 
Retail [Member]
 
 
Commercial mortgage loans, recorded investment
175 
182 
% of total
38.00% 
36.00% 
Industrial [Member]
 
 
Commercial mortgage loans, recorded investment
113 
124 
% of total
24.00% 
24.00% 
Office [Member]
 
 
Commercial mortgage loans, recorded investment
101 
117 
% of total
22.00% 
23.00% 
Apartments [Member]
 
 
Commercial mortgage loans, recorded investment
62 
64 
% of total
14.00% 
13.00% 
Mixed Use/Other [Member]
 
 
Commercial mortgage loans, recorded investment
$ 8 
$ 22 
% of total
2.00% 
4.00% 
Investments (Restricted Commercial Mortgage Loans by Geographic Region) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2011
Dec. 31, 2010
Commercial mortgage loans, recorded investment
$ 459 
$ 509 
Allowance for losses
(2)
(2)
Total
457 
507 
% of total
100.00% 
100.00% 
South Atlantic [Member]
 
 
Commercial mortgage loans, recorded investment
160 
189 
% of total
35.00% 
37.00% 
Pacific [Member]
 
 
Commercial mortgage loans, recorded investment
77 
90 
% of total
17.00% 
18.00% 
Middle Atlantic [Member]
 
 
Commercial mortgage loans, recorded investment
71 
70 
% of total
15.00% 
14.00% 
East North Central [Member]
 
 
Commercial mortgage loans, recorded investment
48 
51 
% of total
10.00% 
10.00% 
Mountain [Member]
 
 
Commercial mortgage loans, recorded investment
31 
32 
% of total
7.00% 
6.00% 
East South Central [Member]
 
 
Commercial mortgage loans, recorded investment
30 
32 
% of total
7.00% 
6.00% 
West North Central [Member]
 
 
Commercial mortgage loans, recorded investment
29 
31 
% of total
6.00% 
6.00% 
West South Central [Member]
 
 
Commercial mortgage loans, recorded investment
12 
13 
% of total
3.00% 
3.00% 
New England [Member]
 
 
Commercial mortgage loans, recorded investment
$ 1 
$ 1 
% of total
 
 
Derivative Instruments (Narrative) (Details) (USD $)
In Millions
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Notional amount of derivatives with counterparties that can be terminated at option of counterparty
$ 125 
 
Fair value of derivatives with counterparties that can be terminated at option of counterparty
 
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to future net income (loss), net of tax
943 
924 
Derivatives designated as cash flow hedges gain (loss), amount expected to be reclassified to net income (loss) in the next 12 months, net of tax
23 
 
Year by which all forecasted transactions associated with qualifying cash flow hedges are expected to occur
2045 
 
Amount to claim from counterparties if the downgrade provisions had been triggered
73 
123 
Amount required for disbursement to counterparties if the downgrade provisions had been triggered
20 
Credit Risk and Counterparty Netting [Member]
 
 
Derivative, net asset position, aggregate fair value
691 
888 
Net fair value derivative liabilities
186 
172 
Collateral from derivative counterparties
704 
794 
Collateral from derivative counterparties, over collateralization
86 
29 
Collateral to derivative counterparties
23 
30 
Collateral to derivative counterparties, over collateralization
$ 1 
$ 11 
Derivative Instruments (Positions in Derivative Instruments) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Derivative assets, fair value
$ 815 
$ 1,043 
Derivative liabilities, fair value
428 
453 
Designated as Hedging Instrument [Member]
 
 
Derivative assets, fair value
379 
557 
Derivative liabilities, fair value
127 
97 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member]
 
 
Derivative assets, fair value
264 
427 
Derivative liabilities, fair value
123 
89 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Interest Rate Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
264 
222 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Interest Rate Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
62 
56 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Inflation Indexed Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Inflation Indexed Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
61 
33 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Foreign Currency Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
205 
Designated as Hedging Instrument [Member] |
Cash Flow Hedges [Member] |
Foreign Currency Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
 
 
Designated as Hedging Instrument [Member] |
Fair Value Hedges [Member]
 
 
Derivative assets, fair value
115 
130 
Derivative liabilities, fair value
Designated as Hedging Instrument [Member] |
Fair Value Hedges [Member] |
Interest Rate Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
69 
95 
Designated as Hedging Instrument [Member] |
Fair Value Hedges [Member] |
Interest Rate Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
Designated as Hedging Instrument [Member] |
Fair Value Hedges [Member] |
Foreign Currency Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
46 
35 
Designated as Hedging Instrument [Member] |
Fair Value Hedges [Member] |
Foreign Currency Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
 
 
Derivatives Not Designated as Hedges [Member]
 
 
Derivative assets, fair value
436 
486 
Derivative liabilities, fair value
301 
356 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps [Member] |
Securitization Entities [Member] |
Restricted Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps [Member] |
Securitization Entities [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
18 
19 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
386 
446 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
21 
74 
Derivatives Not Designated as Hedges [Member] |
Equity Return Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
Derivatives Not Designated as Hedges [Member] |
Equity Return Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaptions [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaptions [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps [Member] |
Securitization Entities [Member] |
Restricted Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps [Member] |
Securitization Entities [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
126 
129 
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
11 
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
Derivatives Not Designated as Hedges [Member] |
Equity Index Options [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
40 
33 
Derivatives Not Designated as Hedges [Member] |
Equity Index Options [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
 
Derivatives Not Designated as Hedges [Member] |
Financial Futures [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Financial Futures [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Other Foreign Currency Contracts [Member] |
Other Invested Assets [Member]
 
 
Derivative assets, fair value
 
 
Derivatives Not Designated as Hedges [Member] |
Other Foreign Currency Contracts [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
12 
 
Derivatives Not Designated as Hedges [Member] |
Reinsurance Embedded Derivatives [Member] |
Other Assets [Member]
 
 
Derivative assets, fair value
 1
1
Derivatives Not Designated as Hedges [Member] |
Reinsurance Embedded Derivatives [Member] |
Other Liabilities [Member]
 
 
Derivative liabilities, fair value
1
 1
Derivatives Not Designated as Hedges [Member] |
GMWB Embedded Derivatives [Member] |
Reinsurance Recoverable [Member]
 
 
Derivative assets, fair value
(5)2
(5)2
Derivatives Not Designated as Hedges [Member] |
GMWB Embedded Derivatives [Member] |
Policyholder Account Balances [Member]
 
 
Derivative liabilities, fair value
$ 113 3
$ 121 3
Derivative Instruments (Activity Associated with Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2011
Dec. 31, 2010
Notional amount, beginning balance
$ 30,224 
 
Additions
5,061 
 
Maturities/ terminations
(7,387)
 
Notional amount, end balance
27,898 
 
Number of policies
48,930 
49,566 
Additions
690 
 
Terminations
(1,326)
 
Interest Rate Swaps [Member] |
Derivatives Designated as Hedges [Member] |
Cash Flow Hedges [Member]
 
 
Notional amount, beginning balance
12,355 
 
Additions
995 
 
Maturities/ terminations
(157)
 
Notional amount, end balance
13,193 
 
Interest Rate Swaps [Member] |
Derivatives Designated as Hedges [Member] |
Fair Value Hedges [Member]
 
 
Notional amount, beginning balance
1,764 
 
Additions
 
 
Maturities/ terminations
(405)
 
Notional amount, end balance
1,359 
 
Interest Rate Swaps [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
7,681 
 
Additions
314 
 
Maturities/ terminations
(1,550)
 
Notional amount, end balance
6,445 
 
Interest Rate Swaps [Member] |
Derivatives Not Designated as Hedges [Member] |
Securitization Entities [Member]
 
 
Notional amount, beginning balance
129 
 
Additions
 
 
Maturities/ terminations
(6)
 
Notional amount, end balance
123 
 
Equity Return Swaps [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
208 
 
Additions
139 
 
Maturities/ terminations
 
 
Notional amount, end balance
347 
 
Inflation Indexed Swaps [Member] |
Derivatives Designated as Hedges [Member] |
Cash Flow Hedges [Member]
 
 
Notional amount, beginning balance
525 
 
Additions
16 
 
Maturities/ terminations
 
 
Notional amount, end balance
541 
 
Foreign Currency Swaps [Member] |
Derivatives Designated as Hedges [Member] |
Cash Flow Hedges [Member]
 
 
Notional amount, beginning balance
491 
 
Additions
 
 
Maturities/ terminations
(491)
 
Notional amount, end balance
 
 
Foreign Currency Swaps [Member] |
Derivatives Designated as Hedges [Member] |
Fair Value Hedges [Member]
 
 
Notional amount, beginning balance
85 
 
Additions
 
 
Maturities/ terminations
 
 
Notional amount, end balance
85 
 
Interest Rate Swaptions [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
200 
 
Additions
 
 
Maturities/ terminations
(200)
 
Notional amount, end balance
 
 
Credit Default Swaps [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
1,195 
 
Additions
115 
 
Maturities/ terminations
(100)
 
Notional amount, end balance
1,210 
 
Credit Default Swaps Related to Securitization Entities [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
317 
 
Additions
 
 
Maturities/ terminations
 
 
Notional amount, end balance
317 
 
Equity Index Options [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
744 
 
Additions
521 
 
Maturities/ terminations
(480)
 
Notional amount, end balance
785 
 
Financial Futures [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
3,937 
 
Additions
2,687 
 
Maturities/ terminations
(3,463)
 
Notional amount, end balance
3,161 
 
Other Foreign Currency Contracts [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
521 
 
Additions
185 
 
Maturities/ terminations
(535)
 
Notional amount, end balance
171 
 
Reinsurance Embedded Derivatives [Member] |
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
72 
 
Additions
89 
 
Maturities/ terminations
 
 
Notional amount, end balance
161 
 
Derivatives Designated as Hedges [Member]
 
 
Notional amount, beginning balance
15,220 
 
Additions
1,011 
 
Maturities/ terminations
(1,053)
 
Notional amount, end balance
15,178 
 
Derivatives Designated as Hedges [Member] |
Cash Flow Hedges [Member]
 
 
Notional amount, beginning balance
13,371 
 
Additions
1,011 
 
Maturities/ terminations
(648)
 
Notional amount, end balance
13,734 
 
Derivatives Designated as Hedges [Member] |
Fair Value Hedges [Member]
 
 
Notional amount, beginning balance
1,849 
 
Additions
 
 
Maturities/ terminations
(405)
 
Notional amount, end balance
1,444 
 
Derivatives Not Designated as Hedges [Member]
 
 
Notional amount, beginning balance
15,004 
 
Additions
4,050 
 
Maturities/ terminations
(6,334)
 
Notional amount, end balance
$ 12,720 
 
Derivative Instruments (Pre-Tax Income Effects of Cash Flow Hedges) (Details) (Cash Flow Hedges [Member], USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Gain (loss) recognized in OCI
$ 114 
$ 602 
$ 16 
$ 567 
Gain (loss) reclassified into net income (loss) from OCI
(9)
(15)
Gain (loss) recognized in net income (loss)
1
15 1
 
12 1
Gain or Loss Recognized in Net Income [Member] |
Interest Rate Swaps Hedging Assets [Member] |
Net Investment Gains (Losses) [Member]
 
 
 
 
Gain (loss) recognized in net income (loss)
 
 
 
 1
Interest Rate Swaps Hedging Assets [Member]
 
 
 
 
Gain (loss) recognized in OCI
113 
599 
12 
563 
Interest Rate Swaps Hedging Assets [Member] |
Net Investment Income [Member]
 
 
 
 
Gain (loss) reclassified into net income (loss) from OCI
(6)
(11)
Interest Rate Swaps Hedging Assets [Member] |
Net Investment Gains (Losses) [Member]
 
 
 
 
Gain (loss) recognized in OCI
 
 
 
 
Gain (loss) reclassified into net income (loss) from OCI
 
 
 
Gain (loss) recognized in net income (loss)
1
15 1
 
12 1
Interest Rate Swaps Hedging Liabilities [Member] |
Net Investment Gains (Losses) [Member]
 
 
 
 
Gain (loss) recognized in net income (loss)
 
 1
 
 1
Interest Rate Swaps Hedging Liabilities [Member] |
Interest Expense [Member]
 
 
 
 
Gain (loss) recognized in OCI
 
(3)
 
(3)
Gain (loss) reclassified into net income (loss) from OCI
Foreign Currency Swaps [Member] |
Net Investment Gains (Losses) [Member]
 
 
 
 
Gain (loss) recognized in net income (loss)
 1
 1
 1
 1
Foreign Currency Swaps [Member] |
Interest Expense [Member]
 
 
 
 
Gain (loss) recognized in OCI
Gain (loss) reclassified into net income (loss) from OCI
$ (4)
$ (2)
$ (5)
$ (4)
Derivative Instruments (Pre-Tax Gain (Loss) Recognized in Net Income for the Effects of Derivatives not Designated as Hedges) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Pre-tax gain (loss) recognized in net income (loss)
$ (25)
$ (108)
$ (22)
$ (112)
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
63 
57 
Derivatives Not Designated as Hedges [Member] |
Equity Return Swaps [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(6)
 
(10)
 
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaps Related to Securitization Entities [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(4)
(9)
(3)
(12)
Derivatives Not Designated as Hedges [Member] |
Interest Rate Swaptions [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
 
35 
 
57 
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
 
(32)
(27)
Derivatives Not Designated as Hedges [Member] |
Credit Default Swaps Related to Securitization Entities [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(4)
(46)
(41)
Derivatives Not Designated as Hedges [Member] |
Equity Index Options [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(9)
50 
(28)
23 
Derivatives Not Designated as Hedges [Member] |
Financial Futures [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
34 
105 
(5)
72 
Derivatives Not Designated as Hedges [Member] |
Other Foreign Currency Contracts [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(4)
(13)
(1)
Derivatives Not Designated as Hedges [Member] |
Reinsurance Embedded Derivatives [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
(1)
(1)
Derivatives Not Designated as Hedges [Member] |
GMWB Embedded Derivatives [Member]
 
 
 
 
Pre-tax gain (loss) recognized in net income (loss)
$ (33)
$ (278)
$ 26 
$ (242)
Derivative Instruments (Credit Default Swaps Where Protection on Single Name Reference Entities and the Fair Values is Sold) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Notional value
$ 155 
$ 155 
Assets
Liabilities
 
 
AAA [Member] |
Matures After One Year Through Five Years [Member]
 
 
Notional value
Assets
 
 
Liabilities
 
 
AA [Member] |
Matures After One Year Through Five Years [Member]
 
 
Notional value
Assets
 
 
Liabilities
 
 
AA [Member] |
Matures After Five Years Through Ten Years [Member]
 
 
Notional value
Assets
 
 
Liabilities
 
 
A [Member] |
Matures After One Year Through Five Years [Member]
 
 
Notional value
37 
37 
Assets
Liabilities
 
 
A [Member] |
Matures After Five Years Through Ten Years [Member]
 
 
Notional value
10 
Assets
 
 
Liabilities
 
 
BBB [Member] |
Matures After One Year Through Five Years [Member]
 
 
Notional value
68 
68 
Assets
Liabilities
 
 
BBB [Member] |
Matures After Five Years Through Ten Years [Member]
 
 
Notional value
24 
29 
Assets
 
 
Liabilities
 
 
Derivative Instruments (Credit Default Swaps Where Protection on Credit Default Swap Index Tranches and the Fair Values is Sold) (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2011
Dec. 31, 2010
Notional value
$ 155 
$ 155 
Assets
Liabilities
 
 
Original Amount [Member] |
Securitization Entities [Member] |
Portion Backing Third-Party Borrowings Maturing 2017 [Member]
 
 
Notional value
39 
 
Original Amount [Member] |
Securitization Entities [Member] |
Portion Backing Interest Maturing 2017 [Member]
 
 
Notional value
300 
 
Matures After One Year Through Five Years [Member] |
Credit Default Swaps [Member] |
Index Tranches [Member] |
9% - 12% [Member]
 
 
Notional value
300 1
300 1
Assets
1
 1
Liabilities
1
1
Current attachment percentage
9.00% 
9.00% 
Current detachment percentage
12.00% 
12.00% 
Matures After One Year Through Five Years [Member] |
Credit Default Swaps [Member] |
Index Tranches [Member] |
10% - 15% [Member]
 
 
Notional value
250 2
250 2
Assets
2
2
Liabilities
 2
 2
Current attachment percentage
10.00% 
10.00% 
Current detachment percentage
15.00% 
15.00% 
Matures After Five Years Through Ten Years [Member] |
Credit Default Swaps [Member] |
Index Tranches [Member] |
12% - 22% [Member]
 
 
Notional value
248 3
248 3
Assets
 3
 3
Liabilities
3
3
Current attachment percentage
12.00% 
12.00% 
Current detachment percentage
22.00% 
22.00% 
Matures After Five Years Through Ten Years [Member] |
Credit Default Swaps [Member] |
Index Tranches [Member] |
15% - 30% [Member]
 
 
Notional value
127 4
127 4
Assets
 
4
Liabilities
 4
 4
Current attachment percentage
14.80% 
14.80% 
Current detachment percentage
30.30% 
30.30% 
Credit Default Swaps [Member] |
Index Tranches [Member]
 
 
Notional value
925 
925 
Assets
Liabilities
Credit Default Swaps [Member] |
Index Tranches [Member] |
Securitization Entities [Member]
 
 
Notional value
317 
317 
Assets
 
 
Liabilities
126 
129 
Credit Default Swaps [Member] |
Index Tranches [Member] |
Securitization Entities [Member] |
Portion Backing Third-Party Borrowings Maturing 2017 [Member]
 
 
Notional value
17 5
17 5
Assets
 5
 5
Liabilities
5
5
Credit Default Swaps [Member] |
Index Tranches [Member] |
Securitization Entities [Member] |
Portion Backing Interest Maturing 2017 [Member]
 
 
Notional value
300 6
300 6
Assets
 6
 6
Liabilities
119 6
121 6
Total Credit Default Swaps on Index Tranches [Member]
 
 
Notional value
1,242 
1,242 
Assets
Liabilities
$ 135 
$ 136 
Fair Value of Financial Instruments (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2011
12 Months Ended
Dec. 31, 2010
Fair Value of Financial Instruments
 
 
Minimum impact on valuation of unobservable input on fixed maturity, equity and trading securities for Level 3 classification
10.00% 
 
Period end valuation
 
Points at which swap curve dropped below U.S. Treasury curve, number of years
 
10 
Credit spread, basis points, lower limit
60.00% 
 
Credit spread, basis points, upper limit
80.00% 
 
GMWB Non-performance risk impact
$ 44 
$ 44 
Fair Value of Financial Instruments (Fair Value of Financial Assets and Liabilities that are not Required to be Carried at Fair Value) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Commercial mortgage loans
$ 6,432 
$ 6,718 
Restricted commercial mortgage loans
457 
507 
Other invested assets
3,301 
3,854 
Long-term borrowings
4,755 
4,952 
Non-recourse funding obligations
3,374 
3,437 
Notional Amount [Member]
 
 
Commercial mortgage loans
 1
 1
Restricted commercial mortgage loans
 1
 1
Other invested assets
 1
 1
Long-term borrowings
 1 2
 1 2
Non-recourse funding obligations
 1 2
 1 2
Borrowings related to securitization entities
 1
 1
Investment contracts
 1
 1
Commitments to fund limited partnerships
90 
110 
Ordinary course of business lending commitments
49 
28 
Carrying Amount [Member]
 
 
Commercial mortgage loans
6,432 
6,718 
Restricted commercial mortgage loans
457 
507 
Other invested assets
282 
267 
Long-term borrowings
4,755 2
4,952 2
Non-recourse funding obligations
3,374 2
3,437 2
Borrowings related to securitization entities
394 
443 
Investment contracts
18,728 
19,772 
Commitments to fund limited partnerships
 
 
Ordinary course of business lending commitments
 
 
Fair Value [Member]
 
 
Commercial mortgage loans
6,742 
6,896 
Restricted commercial mortgage loans
506 
554 
Other invested assets
293 
272 
Long-term borrowings
4,766 2
4,928 2
Non-recourse funding obligations
2,339 2
2,170 2
Borrowings related to securitization entities
417 
467 
Investment contracts
19,365 
20,471 
Commitments to fund limited partnerships
 
 
Ordinary course of business lending commitments
 
 
Fair Value of Financial Instruments (Primary Sources Considered when Determining Fair Value of Each Class of Fixed Maturity Securities) (Details) (Fixed Maturity Securities [Member], USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Fair value
$ 56,221 
$ 55,183 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member]
 
 
Pricing services
3,669 
3,688 
Internal models
13 
17 
Fair value
3,682 
3,705 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Internal models
 
 
Fair value
 
 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Level 2 [Member]
 
 
Pricing services
3,669 
3,688 
Internal models
 
Fair value
3,669 
3,694 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Internal models
13 
11 
Fair value
13 
11 
Tax-Exempt [Member]
 
 
Pricing services
865 
1,030 
Fair value
865 
1,030 
Tax-Exempt [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Fair value
 
 
Tax-Exempt [Member] |
Level 2 [Member]
 
 
Pricing services
865 
1,030 
Fair value
865 
1,030 
Tax-Exempt [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Fair value
 
 
Government - Non-U.S. [Member]
 
 
Pricing services
2,378 
2,357 
Internal models
11 
12 
Fair value
2,389 
2,369 
Government - Non-U.S. [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Internal models
 
 
Fair value
 
 
Government - Non-U.S. [Member] |
Level 2 [Member]
 
 
Pricing services
2,378 
2,357 
Internal models
10 
11 
Fair value
2,388 
2,368 
Government - Non-U.S. [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Internal models
Fair value
U.S. Corporate [Member]
 
 
Pricing services
20,787 
20,563 
Broker quotes
277 
235 
Internal models
2,983 
3,169 
Fair value
24,047 
23,967 
U.S. Corporate [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
U.S. Corporate [Member] |
Level 2 [Member]
 
 
Pricing services
20,787 
20,563 
Broker quotes
 
 
Internal models
2,311 
2,304 
Fair value
23,098 
22,867 
U.S. Corporate [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
277 
235 
Internal models
672 
865 
Fair value
949 
1,100 
Corporate - Non-U.S. [Member]
 
 
Pricing services
12,568 
11,584 
Broker quotes
86 
113 
Internal models
1,774 
1,801 
Fair value
14,428 
13,498 
Corporate - Non-U.S. [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
Corporate - Non-U.S. [Member] |
Level 2 [Member]
 
 
Pricing services
12,568 
11,584 
Broker quotes
 
 
Internal models
1,489 
1,546 
Fair value
14,057 
13,130 
Corporate - Non-U.S. [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
86 
113 
Internal models
285 
255 
Fair value
371 
368 
Residential Mortgage-Backed [Member]
 
 
Pricing services
4,859 
4,312 
Broker quotes
63 
72 
Internal models
61 
71 
Fair value
4,983 
4,455 
Residential Mortgage-Backed [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
Residential Mortgage-Backed [Member] |
Level 2 [Member]
 
 
Pricing services
4,859 
4,312 
Broker quotes
 
 
Internal models
 
 
Fair value
4,859 
4,312 
Residential Mortgage-Backed [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
63 
72 
Internal models
61 
71 
Fair value
124 
143 
Commercial Mortgage-Backed [Member]
 
 
Pricing services
3,678 
3,693 
Broker quotes
16 
16 
Internal models
27 
34 
Fair value
3,721 
3,743 
Commercial Mortgage-Backed [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
Commercial Mortgage-Backed [Member] |
Level 2 [Member]
 
 
Pricing services
3,678 
3,693 
Broker quotes
 
 
Internal models
 
 
Fair value
3,678 
3,693 
Commercial Mortgage-Backed [Member] |
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
16 
16 
Internal models
27 
34 
Fair value
43 
50 
Other Asset-Backed [Member]
 
 
Pricing services
1,840 
2,241 
Broker quotes
265 
169 
Internal models
Fair value
2,106 
2,416 
Other Asset-Backed [Member] |
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
Other Asset-Backed [Member] |
Level 2 [Member]
 
 
Pricing services
1,840 
2,143 
Broker quotes
 
 
Internal models
Fair value
1,841 
2,148 
Other Asset-Backed [Member] |
Level 3 [Member]
 
 
Pricing services
 
98 
Broker quotes
265 
169 
Internal models
 
Fair value
265 
268 
Level 1 [Member]
 
 
Fair value
 
 
Level 2 [Member]
 
 
Fair value
54,455 
53,242 
Level 3 [Member]
 
 
Fair value
$ 1,766 
$ 1,941 
Fair Value of Financial Instruments (Primary Sources Considered when Determining Fair Value of Equity Securities) (Details) (Equity Securities [Member], USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Pricing services
$ 268 
$ 245 
Broker quotes
Internal models
100 
81 
Fair value
374 
332 
Level 1 [Member]
 
 
Pricing services
260 
240 
Broker quotes
 
 
Internal models
 
 
Fair value
260 
240 
Level 2 [Member]
 
 
Pricing services
Broker quotes
 
 
Internal models
 
 
Fair value
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
Internal models
100 
81 
Fair value
$ 106 
$ 87 
Fair Value of Financial Instruments (Primary Sources Considered when Determining Fair Value of Trading Securities) (Details) (Trading Securities [Member], USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Pricing services
$ 316 
$ 348 
Broker quotes
291 
230 
Internal models
 
99 
Fair value
607 
677 
Level 1 [Member]
 
 
Pricing services
 
 
Broker quotes
 
 
Internal models
 
 
Fair value
 
 
Level 2 [Member]
 
 
Pricing services
316 
348 
Broker quotes
 
 
Internal models
 
 
Fair value
316 
348 
Level 3 [Member]
 
 
Pricing services
 
 
Broker quotes
291 
230 
Internal models
 
99 
Fair value
$ 291 
$ 329 
Fair Value of Financial Instruments (Assets and Liabilities that are Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Available-for-sale debt securities
$ 56,221 
$ 55,183 
Available-for-sale equity securities
374 
332 
Trading securities
607 
677 
Securities lending collateral
554 
772 
Derivatives counterparty collateral
522 
630 
Other invested assets
2,503 
3,126 
Restricted other invested assets related to securitization entities
378 1
370 
Other assets
(1)
2
Reinsurance recoverable
(5)
(5)1
Separate account assets
11,452 
11,666 
Total assets
70,922 
70,673 
Policyholder account balances
113 
121 3
Borrowings related to securitization entities
58 
51 
Total liabilities
485 
504 
Interest Rate Swaps [Member] |
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Interest Rate Swaps [Member] |
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
715 
758 
Interest Rate Swaps [Member] |
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
Interest Rate Swaps [Member] |
Derivative Assets [Member]
 
 
Derivative assets
719 
763 
Equity Return Swaps [Member] |
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Equity Return Swaps [Member] |
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
Equity Return Swaps [Member] |
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Equity Return Swaps [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
Foreign Currency Swaps [Member] |
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Foreign Currency Swaps [Member] |
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
46 
240 
Foreign Currency Swaps [Member] |
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Foreign Currency Swaps [Member] |
Derivative Assets [Member]
 
 
Derivative assets
46 
240 
Credit Default Swaps [Member] |
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Credit Default Swaps [Member] |
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
Credit Default Swaps [Member] |
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
Credit Default Swaps [Member] |
Derivative Assets [Member]
 
 
Derivative assets
11 
Equity Index Options [Member] |
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Equity Index Options [Member] |
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Equity Index Options [Member] |
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
40 
33 
Equity Index Options [Member] |
Derivative Assets [Member]
 
 
Derivative assets
40 
33 
Level 1 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
 
 
Level 2 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
772 
1,003 
Level 3 [Member] |
Derivative Assets [Member]
 
 
Derivative assets
48 
44 
Derivative Assets [Member]
 
 
Derivative assets
820 
1,047 
Interest Rate Swaps [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Interest Rate Swaps [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
87 
138 
Interest Rate Swaps [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Interest Rate Swaps [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
87 
138 
Equity Return Swaps [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Equity Return Swaps [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
Equity Return Swaps [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Equity Return Swaps [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
Inflation Indexed Swaps [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Inflation Indexed Swaps [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
61 
33 
Inflation Indexed Swaps [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Inflation Indexed Swaps [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
61 
33 
Credit Default Swaps [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Credit Default Swaps [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Credit Default Swaps [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
Credit Default Swaps [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
Credit Default Swaps Related to Securitization Entities [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Credit Default Swaps Related to Securitization Entities [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Credit Default Swaps Related to Securitization Entities [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
126 
129 
Credit Default Swaps Related to Securitization Entities [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
126 
129 
Equity Index Options [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Equity Index Options [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Equity Index Options [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
Equity Index Options [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
Other Foreign Currency Contracts [Member] |
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Other Foreign Currency Contracts [Member] |
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
12 
 
Other Foreign Currency Contracts [Member] |
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Other Foreign Currency Contracts [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
12 
 
Level 1 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
 
 
Level 1 [Member] |
Derivative Liabilities [Member] |
Interest Rate Swaps Related to Securitization Entities [Member]
 
 
Derivative liabilities
 
 
Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
179 
193 
Level 2 [Member] |
Derivative Liabilities [Member] |
Interest Rate Swaps Related to Securitization Entities [Member]
 
 
Derivative liabilities
18 
19 
Level 3 [Member] |
Derivative Liabilities [Member]
 
 
Derivative liabilities
135 
139 
Level 3 [Member] |
Derivative Liabilities [Member] |
Interest Rate Swaps Related to Securitization Entities [Member]
 
 
Derivative liabilities
 
 
Derivative Liabilities [Member]
 
 
Derivative liabilities
314 
332 
Derivative Liabilities [Member] |
Interest Rate Swaps Related to Securitization Entities [Member]
 
 
Derivative liabilities
18 
19 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
3,682 
3,705 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
3,669 
3,694 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
13 
11 
Tax-Exempt [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
865 
1,030 
Tax-Exempt [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Tax-Exempt [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
865 
1,030 
Tax-Exempt [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
 
 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
2,389 
2,369 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
2,388 
2,368 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
24,047 
23,967 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
23,098 
22,867 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
949 
1,100 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
14,428 
13,498 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
14,057 
13,130 
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
371 
368 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
4,983 
4,455 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
4,859 
4,312 
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
124 
143 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
3,721 
3,743 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
3,678 
3,693 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
43 
50 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
Available-for-sale debt securities
2,106 
2,416 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 2 [Member]
 
 
Available-for-sale debt securities
1,841 
2,148 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member] |
Level 3 [Member]
 
 
Available-for-sale debt securities
265 
268 
Level 1 [Member]
 
 
Available-for-sale debt securities
 
 
Available-for-sale equity securities
260 
240 
Trading securities
 
 
Securities lending collateral
 
 
Derivatives counterparty collateral
 
 
Other invested assets
 
 
Restricted other invested assets related to securitization entities
 1
 
Other assets
 
 2
Reinsurance recoverable
 
 1
Separate account assets
11,452 
11,666 
Total assets
11,712 
11,906 
Policyholder account balances
 
 3
Borrowings related to securitization entities
 
 
Total liabilities
 
 
Level 2 [Member]
 
 
Available-for-sale debt securities
54,455 
53,242 
Available-for-sale equity securities
Trading securities
316 
348 
Securities lending collateral
554 
772 
Derivatives counterparty collateral
522 
630 
Other invested assets
2,164 
2,753 
Restricted other invested assets related to securitization entities
203 1
199 
Other assets
(1)
2
Reinsurance recoverable
 
 1
Separate account assets
 
 
Total assets
56,829 
56,200 
Policyholder account balances
 
 3
Borrowings related to securitization entities
 
 
Total liabilities
179 
193 
Level 3 [Member]
 
 
Available-for-sale debt securities
1,766 
1,941 
Available-for-sale equity securities
106 
87 
Trading securities
291 
329 
Securities lending collateral
 
 
Derivatives counterparty collateral
 
 
Other invested assets
339 
373 
Restricted other invested assets related to securitization entities
175 1
171 
Other assets
 
 2
Reinsurance recoverable
(5)
(5)1
Separate account assets
 
 
Total assets
2,381 
2,567 
Policyholder account balances
113 
121 3
Borrowings related to securitization entities
58 
51 
Total liabilities
$ 306 
$ 311 
Fair Value of Financial Instruments (Assets Measured at Fair Value on a Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value) (Details) (Level 3 [Member], USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Beginning balance
$ 1,993 
$ 2,492 
$ 2,567 
$ 8,319 
Total realized and unrealized gains (losses) Included in net income (loss)
74 
(16)
32 
Total realized and unrealized gains (losses) Included in OCI
42 
85 
Purchases, sales, issuances and settlements, net
 
(84)
 
Purchases
84 
 
149 
 
Sales
(61)
 
(94)
 
Issuances
 
 
Settlements
(42)
 
(142)
 
Transfer in Level 3
413 
981 1
484 
1,304 
Transfer out of Level 3
(19)
(317)
(576)
(6,560)2
Ending balance
2,381 
3,188 
2,381 
3,188 
Total gains (losses) included in net income (loss) attributable to assets still held
67 
(16)
28 
Interest Rate Swaps [Member] |
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
Total realized and unrealized gains (losses) Included in net income (loss)
(1)
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
Total gains (losses) included in net income (loss) attributable to assets still held
(1)
Interest Rate Swaptions [Member] |
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
 
14 
 
54 
Total realized and unrealized gains (losses) Included in net income (loss)
 
24 
 
15 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(34)
 
(65)
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
 
 
Total gains (losses) included in net income (loss) attributable to assets still held
 
24 
 
15 
Credit Default Swaps [Member] |
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
Total realized and unrealized gains (losses) Included in net income (loss)
(2)
(7)
(2)
(6)
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
 
 
Total gains (losses) included in net income (loss) attributable to assets still held
(2)
(7)
(2)
(6)
Equity Index Options [Member] |
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
32 
34 
33 
39 
Total realized and unrealized gains (losses) Included in net income (loss)
(8)
46 
(27)
22 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
17 
 
36 
Purchases
15 
 
39 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
(5)
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
40 
97 
40 
97 
Total gains (losses) included in net income (loss) attributable to assets still held
(8)
46 
(27)
22 
Other Foreign Currency Contracts [Member] |
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
 
 
Total realized and unrealized gains (losses) Included in net income (loss)
 
(3)
 
(7)
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
 
 
Total gains (losses) included in net income (loss) attributable to assets still held
 
(3)
 
(7)
Derivative Assets [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
41 
63 
44 
110 
Total realized and unrealized gains (losses) Included in net income (loss)
(9)
65 
(30)
30 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(17)
 
(29)
Purchases
15 
 
39 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
(5)
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
48 
111 
48 
111 
Total gains (losses) included in net income (loss) attributable to assets still held
(9)
65 
(30)
30 
U.S. Government, Agencies and Government-Sponsored Enterprises [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
11 
16 
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
 
 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(1)
 
(2)
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
12 
1
12 
Transfer out of Level 3
 
(4)
(10)
(14)2
Ending balance
13 
13 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
 
 
Tax-Exempt [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
 
 
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
 
 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
(2)
 
(2)2
Ending balance
 
 
 
 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
 
 
Government - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
 
 
Total realized and unrealized gains (losses) Included in OCI
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
16 1
 
16 
Transfer out of Level 3
 
 
 
(6)2
Ending balance
18 
18 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
 
 
U.S. Corporate [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
715 3
906 
1,100 3
1,073 
Total realized and unrealized gains (losses) Included in net income (loss)
3
11 
3
11 
Total realized and unrealized gains (losses) Included in OCI
3
19 
3
34 
Purchases, sales, issuances and settlements, net
 
(29)
 
31 
Purchases
27 3
 
30 3
 
Sales
(5)3
 
(5)3
 
Issuances
 3
 
 3
 
Settlements
(18)3
 
(63)3
 
Transfer in Level 3
236 3
653 1
252 3
678 
Transfer out of Level 3
(19)3
(40)
(379)3
(307)2
Ending balance
949 3
1,520 
949 3
1,520 
Total gains (losses) included in net income (loss) attributable to assets still held
3
3
Corporate - Non-U.S. [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
202 3
508 
368 3
504 
Total realized and unrealized gains (losses) Included in net income (loss)
3
 
(11)3
Total realized and unrealized gains (losses) Included in OCI
 
(3)3
Purchases, sales, issuances and settlements, net
 
 
11 
Purchases
15 3
 
40 3
 
Sales
(10)3
 
(35)3
 
Issuances
 3
 
 3
 
Settlements
(2)3
 
(7)3
 
Transfer in Level 3
165 3
294 1
205 3
353 
Transfer out of Level 3
 
(91)
(186)3
(157)2
Ending balance
371 3
720 
371 3
720 
Total gains (losses) included in net income (loss) attributable to assets still held
3
 
(10)3
Residential Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
135 
171 
143 
1,481 
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
(1)
 
Total realized and unrealized gains (losses) Included in OCI
(10)
 
(8)
Purchases, sales, issuances and settlements, net
 
(26)
 
80 
Purchases
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
(4)
 
(12)
 
Transfer in Level 3
 
1
 
Transfer out of Level 3
 
(84)
(1)
(1,503)2
Ending balance
124 
62 
124 
62 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
(1)
 
Commercial Mortgage-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
42 
47 
50 
3,558 
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
 
Total realized and unrealized gains (losses) Included in OCI
10 
14 
Purchases, sales, issuances and settlements, net
 
(1)
 
(63)
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
(1)
 
(9)
 
Transfer in Level 3
 
11 1
 
11 
Transfer out of Level 3
 
(8)
 
(3,462)2
Ending balance
43 
59 
43 
59 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
 
 
Other Asset-Backed [Member] |
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
263 
409 
268 
1,419 
Total realized and unrealized gains (losses) Included in net income (loss)
 
(8)
(1)
(24)
Total realized and unrealized gains (losses) Included in OCI
23 
Purchases, sales, issuances and settlements, net
 
(14)
 
(18)
Purchases
 
 
 
Sales
 
 
(8)
 
Issuances
 
 
 
 
Settlements
(5)
 
(26)
 
Transfer in Level 3
 
 1
15 
10 
Transfer out of Level 3
 
(28)
 
(1,049)2
Ending balance
265 
361 
265 
361 
Total gains (losses) included in net income (loss) attributable to assets still held
 
(8)
(1)
(24)
Trading Securities [Member] |
Other Invested Assets [Member]
 
 
 
 
Beginning balance
338 
142 
329 
145 
Total realized and unrealized gains (losses) Included in net income (loss)
(7)
16 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
(10)
Purchases
 
 
 
Sales
(41)
 
(41)
 
Issuances
 
 
 
 
Settlements
(13)
 
(18)
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
291 
136 
291 
136 
Total gains (losses) included in net income (loss) attributable to assets still held
(7)
16 
Restricted Other Invested Assets Related to Securitization Entities [Member]
 
 
 
 
Beginning balance
175 
174 
171 
 
Total realized and unrealized gains (losses) Included in net income (loss)
 
(2)
(2)
Total realized and unrealized gains (losses) Included in OCI
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
 1
 
174 
Transfer out of Level 3
 
 
 
 2
Ending balance
175 
174 
175 
174 
Total gains (losses) included in net income (loss) attributable to assets still held
 
(2)
(2)
Reinsurance Recoverable [Member]
 
 
 
 
Beginning balance
(7)4
(6)4
(5)4
(5)4
Total realized and unrealized gains (losses) Included in net income (loss)
4
15 4
(2)4
14 4
Total realized and unrealized gains (losses) Included in OCI
 4
 4
 4
 4
Purchases, sales, issuances and settlements, net
 
 4
 
 4
Purchases
 4
 
 4
 
Sales
 4
 
 4
 
Issuances
4
 
4
 
Settlements
 4
 
 4
 
Transfer in Level 3
 4
 1 4
 4
 4
Transfer out of Level 3
 4
 4
 4
 2 4
Ending balance
(5)4
4
(5)4
4
Total gains (losses) included in net income (loss) attributable to assets still held
4
15 4
(2)4
14 4
Equity Securities [Member]
 
 
 
 
Beginning balance
87 
67 
87 
Total realized and unrealized gains (losses) Included in net income (loss)
 
 
 
Total realized and unrealized gains (losses) Included in OCI
 
 
Purchases, sales, issuances and settlements, net
 
 
Purchases
24 
 
24 
 
Sales
(5)
 
(5)
 
Issuances
 
 
 
 
Settlements
 
 
(2)
 
Transfer in Level 3
 
 1
 
52 
Transfer out of Level 3
 
(60)
 
(60)2
Ending balance
106 
106 
Total gains (losses) included in net income (loss) attributable to assets still held
 
 
 
 
Fixed Maturity Securities [Member]
 
 
 
 
Beginning balance
1,359 
2,052 
1,941 
8,060 
Total realized and unrealized gains (losses) Included in net income (loss)
(5)
(11)
Total realized and unrealized gains (losses) Included in OCI
39 
83 
Purchases, sales, issuances and settlements, net
 
(69)
 
39 
Purchases
45 
 
81 
 
Sales
(15)
 
(48)
 
Issuances
 
 
 
 
Settlements
(30)
 
(117)
 
Transfer in Level 3
413 
981 1
484 
1,078 
Transfer out of Level 3
(19)
(257)
(576)
(6,500)2
Ending balance
1,766 
2,749 
1,766 
2,749 
Total gains (losses) included in net income (loss) attributable to assets still held
(4)
(4)
(15)
Other Invested Assets [Member]
 
 
 
 
Beginning balance
379 
205 
373 
255 
Total realized and unrealized gains (losses) Included in net income (loss)
(2)
58 
(14)
31 
Total realized and unrealized gains (losses) Included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(16)
 
(39)
Purchases
15 
 
44 
 
Sales
(41)
 
(41)
 
Issuances
 
 
 
 
Settlements
(12)
 
(23)
 
Transfer in Level 3
 
 1
 
 
Transfer out of Level 3
 
 
 
 2
Ending balance
339 
247 
339 
247 
Total gains (losses) included in net income (loss) attributable to assets still held
$ (2)
$ 58 
$ (14)
$ 31 
Fair Value of Financial Instruments (Liabilities Measured at Fair Value on a Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Beginning balance
$ 254 
$ 344 
$ 311 
$ 246 
Total realized and unrealized (gains) losses included in net (income) loss
42 
345 
(24)
269 
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(6)
 
(12)
Purchases
 
 
 
Sales
 
 
 
 
Issuances
10 
 
20 
 
Settlements
 
 
(4)
 
Transfer in Level 3
 
 
 
180 
Transfer out of Level 3
 
 
 
 
Ending balance
306 
683 
306 
683 
Total (gains) losses included in net (income) loss attributable to liabilities still held
42 
346 
(23)
269 
Interest Rate Swaps [Member] |
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
 
 
 
Total realized and unrealized (gains) losses included in net (income) loss
 
 
 
(2)
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Transfer in Level 3
 
 
 
 
Transfer out of Level 3
 
 
 
 
Ending balance
 
 
 
 
Total (gains) losses included in net (income) loss attributable to liabilities still held
 
 
 
(2)
Interest Rate Swaptions [Member] |
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
 
18 
 
67 
Total realized and unrealized (gains) losses included in net (income) loss
 
(10)
 
(42)
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(8)
 
(25)
Transfer in Level 3
 
 
 
 
Transfer out of Level 3
 
 
 
 
Ending balance
 
 
 
 
Total (gains) losses included in net (income) loss attributable to liabilities still held
 
(10)
 
(42)
Credit Default Swaps [Member] |
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
 
Total realized and unrealized (gains) losses included in net (income) loss
25 
 
26 
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
(1)
 
Transfer in Level 3
 
 
 
 
Transfer out of Level 3
 
 
 
 
Ending balance
26 
26 
Total (gains) losses included in net (income) loss attributable to liabilities still held
25 
 
26 
Credit Default Swaps Related to Securitization Entities [Member] |
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
120 
118 
129 
 
Total realized and unrealized (gains) losses included in net (income) loss
46 
(3)
41 
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(5)
 
(3)
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
 
 
121 
Transfer out of Level 3
 
 
 
 
Ending balance
126 
159 
126 
159 
Total (gains) losses included in net (income) loss attributable to liabilities still held
46 
(3)
41 
Equity Index Options [Member] |
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
 
Total realized and unrealized (gains) losses included in net (income) loss
 
(3)
 
(1)
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(1)
 
(1)
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
(3)
 
Transfer in Level 3
 
 
 
 
Transfer out of Level 3
 
 
 
 
Ending balance
 
 
 
 
Total (gains) losses included in net (income) loss attributable to liabilities still held
 
(3)
 
(1)
Derivative Liabilities [Member]
 
 
 
 
Beginning balance
127 
141 
139 
71 
Total realized and unrealized (gains) losses included in net (income) loss
58 
(3)
22 
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
(14)
 
(29)
Purchases
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
(4)
 
Transfer in Level 3
 
 
 
121 
Transfer out of Level 3
 
 
 
 
Ending balance
135 
185 
135 
185 
Total (gains) losses included in net (income) loss attributable to liabilities still held
58 
(3)
22 
Policyholder Account Balances [Member]
 
 
 
 
Beginning balance
69 1
145 1
121 1
175 1
Total realized and unrealized (gains) losses included in net (income) loss
34 1
294 1
(28)1
255 1
Total realized and unrealized (gains) losses included in OCI
 1
 1
 1
 1
Purchases, sales, issuances and settlements, net
 
1
 
17 1
Purchases
 1
 
 1
 
Sales
 1
 
 1
 
Issuances
10 1
 
20 1
 
Settlements
 1
 
 1
 
Transfer in Level 3
 1
 1
 1
 1
Transfer out of Level 3
 1
 1
 1
 1
Ending balance
113 1
447 1
113 1
447 1
Total (gains) losses included in net (income) loss attributable to liabilities still held
34 1
294 1
(27)1
255 1
Borrowings Related to Securitization Entities [Member]
 
 
 
 
Beginning balance
58 
58 
51 
 
Total realized and unrealized (gains) losses included in net (income) loss
 
(7)
(8)
Total realized and unrealized (gains) losses included in OCI
 
 
 
 
Purchases, sales, issuances and settlements, net
 
 
 
 
Purchases
 
 
 
 
Sales
 
 
 
 
Issuances
 
 
 
 
Settlements
 
 
 
 
Transfer in Level 3
 
 
 
59 
Transfer out of Level 3
 
 
 
 
Ending balance
58 
51 
58 
51 
Total (gains) losses included in net (income) loss attributable to liabilities still held
 
$ (6)
$ 7 
$ (8)
Commitments and Contingencies (Details) (USD $)
In Millions
Jun. 30, 2011
Commitments and Contingencies
 
Commitment to fund limited partnership investments
$ 90 
Commitment to fund U.S. commercial mortgage loan investments
$ 49 
Borrowings and Other Financings (Details)
3 Months Ended
Jun. 30,
3 Months Ended
Jun. 30,
Jun. 30, 2011
USD ($)
Dec. 31, 2010
USD ($)
3 Months Ended
Jun. 30, 2011
Senior Notes 7.625% Due September 2021 [Member]
3 Months Ended
Mar. 31, 2011
Senior Notes 7.625% Due September 2021 [Member]
USD ($)
3 Months Ended
Jun. 30, 2011
Revolving Credit Facility [Member]
Letter of Credit [Member]
USD ($)
12 Months Ended
Dec. 31, 2010
Revolving Credit Facility [Member]
Letter of Credit [Member]
USD ($)
3 Months Ended
Jun. 30, 2011
Revolving Credit Facility [Member]
Short-Term Borrowings [Member]
USD ($)
1 Months Ended
May 31, 2007
Revolving Credit Facility May 2012 [Member]
Short-Term Borrowings [Member]
3 Months Ended
Jun. 30, 2011
Revolving Credit Facility May 2012 [Member]
Short-Term Borrowings [Member]
1 Months Ended
Aug. 31, 2007
Revolving Credit Facility August 2012 [Member]
Short-Term Borrowings [Member]
2011
Revolving Credit Facility August 2012 [Member]
Short-Term Borrowings [Member]
2011
GEFAHI Senior Notes [Member]
USD ($)
2011
GEFAHI Senior Notes [Member]
JPY (¥)
2011
GEFAHI Senior Notes [Member]
Cross Currency Swaps [Member]
USD ($)
Jun. 30, 2001
GEFAHI Senior Notes [Member]
Cross Currency Swaps [Member]
2011
Mandatorily Redeemable Preferred Stock [Member]
USD ($)
2011
Non-Recourse Funding Obligations [Member]
USD ($)
Dec. 31, 2010
Non-Recourse Funding Obligations [Member]
3 Months Ended
Jun. 30, 2011
Genworth Financial Mortgage Insurance Pty Limited [Member]
AUD ($)
Number of revolving credit facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Facility, maximum borrowing capacity
 
 
 
 
 
 
$ 1,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum possible maturity from date of issue, years
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIBOR rate, number of months
 
 
 
 
 
 
one 
 
 
 
 
 
 
 
 
 
 
 
 
Series A Preferred Stock, stated liquidation value per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 50 
 
 
 
Series A preferred stock redeemed and retired during period, value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57,000,000 
 
 
 
Issued notes, aggregate principal amount
 
 
 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
140,000,000 
Interest rate per year, payable semi-annually
 
 
 
7.625% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Swap arrangements, interest rate per annum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.84% 
 
 
 
 
Basis spread on variable rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.75% 
Senior notes redemption option, percentage of principal
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity date
 
 
Sep. 30, 2021 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Jun. 30, 2021 
Line of credit facility, expiration date
 
 
 
 
 
 
 
 
May 2012 
 
August 2012 
 
 
 
 
 
 
 
 
Issued senior notes, net proceeds
 
 
 
397,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes, repayment
 
 
 
 
 
 
 
 
 
 
 
491,000,000 
 
 
 
 
 
 
 
Repurchase of secured debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
57,000,000 
 
 
Senior notes retired
 
 
 
 
 
 
 
 
 
 
 
 
57,000,000,000 
 
 
 
 
 
 
Proceeds received from derivative counterparty
 
 
 
 
 
 
 
 
 
 
 
 
 
212,000,000 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
491,000,000 
 
 
 
 
 
Amount of letters of credit used under credit facilities
 
 
 
 
279,000,000 
56,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Issuance to benefit insurance subsidiaries, number
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax gain on repurchase of senior notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17,000,000 
 
 
Fixed and floating rate non-recourse funding obligations outstanding
$ 3,374,000,000 
$ 3,437,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,400,000,000 
 
 
Non-recourse funding obligations weighted-average interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.33% 
1.44% 
 
Income Taxes (Narrative) (Details) (USD $)
In Millions
Jun. 30, 2010
Mar. 31, 2010
Dec. 31, 2010
Additional Paid-in Capital [Member]
Jun. 30, 2010
Additional Paid-in Capital [Member]
Amount recognized of previously uncertain tax benefits related to separation from former parent
 
$ 106 
 
 
Other capital transactions
$ 20 
 
$ 20 
$ 20 
Income Taxes (Reconciliation of the Federal Statutory Tax Rate to the Effective Income Tax Rate) (Details)
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Income Taxes
 
 
 
 
Statutory U.S. federal income tax rate
35.00% 
35.00% 
35.00% 
35.00% 
State income tax, net of federal income tax effect
(2.40%)
 
4.30% 
(2.10%)
Benefit on tax favored investments
(0.40%)
(8.00%)
(4.50%)
(7.10%)
Effect of foreign operations
(24.80%)
(33.70%)
(5.90%)
(21.30%)
Non-deductible expenses
1.20% 
2.20% 
0.20% 
0.50% 
Interest on uncertain tax positions
(0.40%)
(2.40%)
0.40% 
(2.30%)
Tax benefits related to separation from our former parent
 
 
 
(55.80%)
Other, net
0.90% 
 
0.50% 
1.80% 
Effective rate
9.10% 
(6.90%)
30.00% 
(51.30%)
Segment Information (Narrative) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
3 Months Ended
Mar. 31, 2010
2011
2010
Segment Information
 
 
 
 
 
Number of operating segments
 
 
 
 
Tax benefit related to separation from former parent
 
 
$ 106 
 
$ 106 
Segment Information (Summary of Revenues of Major Product Groups for Segments, Corporate and Other Activities) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
2011
2010
Revenues
$ 2,655 
$ 2,410 
$ 5,223 
$ 4,831 
International [Member]
 
 
 
 
Revenues
658 
622 
1,290 
1,273 
Retirement and Protection [Member]
 
 
 
 
Revenues
1,784 
1,643 
3,522 
3,236 
U.S. Mortgage Insurance [Member]
 
 
 
 
Revenues
170 
181 
347 
362 
Corporate and Other [Member]
 
 
 
 
Revenues
$ 43 
$ (36)
$ 64 
$ (40)
Segment Information (Summary of Net Operating Income (Loss) Available to Genworth Financial, Inc.'s Common Stockholders for Segments and Corporate and Other Activities) (Details) (USD $)
In Millions
3 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
3 Months Ended
Mar. 31, 2010
2011
2010
Net operating income
$ (74)
$ 118 
 
$ 24 
$ 232 
Net investment gains (losses), net of taxes and other adjustments
(22)
(76)
 
(38)
(118)
Net tax benefit related to separation from our former parent
 
 
106 
 
106 
Net income (loss) available to Genworth Financial, Inc.'s common stockholders
(96)
42 
 
(14)
220 
Net Income Loss Attributable To Noncontrolling Interest
36 
35 
 
70 
69 
Net income (loss)
(60)
77 
 
56 
289 
Retirement and Protection [Member]
 
 
 
 
 
Net operating income
149 
114 
 
276 
236 
International [Member]
 
 
 
 
 
Net operating income
107 
105 
 
231 
196 
U.S. Mortgage Insurance [Member]
 
 
 
 
 
Net operating income
(253)
(40)
 
(334)
(76)
Corporate and Other [Member]
 
 
 
 
 
Net operating income
$ (77)
$ (61)
 
$ (149)
$ (124)
Segment Information (Summary of Total Assets for Segments and Corporate and Other Activities) (Details) (USD $)
In Millions
Jun. 30, 2011
Dec. 31, 2010
Total assets
$ 112,347 
$ 112,395 
Retirement and Protection [Member]
 
 
Total assets
87,119 
86,352 
International [Member]
 
 
Total assets
12,834 
12,422 
U.S. Mortgage Insurance [Member]
 
 
Total assets
4,048 
3,875 
Corporate and Other [Member]
 
 
Total assets
$ 8,346 
$ 9,746 
Liability For Policy And Contract Claims (Narrative) (Details) (USD $)
In Millions
6 Months Ended
Jun. 30,
6 Months Ended
Jun. 30,
2011
2010
Dec. 31, 2010
Dec. 31, 2009
2011
Loss Mitigation [Member]
Reinstatements [Member]
U.S. Mortgage Insurance [Member]
Rescissions [Member]
2010
Loss Mitigation [Member]
Reinstatements [Member]
U.S. Mortgage Insurance [Member]
Rescissions [Member]
2011
Loss Mitigation [Member]
Workouts Loan Modifications And Pre Sales [Member]
U.S. Mortgage Insurance [Member]
2010
Loss Mitigation [Member]
Workouts Loan Modifications And Pre Sales [Member]
U.S. Mortgage Insurance [Member]
2011
Loss Mitigation [Member]
Current Year [Member]
U.S. Mortgage Insurance [Member]
2010
Loss Mitigation [Member]
Current Year [Member]
U.S. Mortgage Insurance [Member]
2011
Loss Mitigation [Member]
U.S. Mortgage Insurance [Member]
2010
Loss Mitigation [Member]
U.S. Mortgage Insurance [Member]
2011
Loss Mitigation [Member]
U.S. Mortgage Insurance [Member]
Rescissions [Member]
2010
Loss Mitigation [Member]
U.S. Mortgage Insurance [Member]
Rescissions [Member]
2011
Prior Year Reserve [Member]
2010
Prior Year Reserve [Member]
2011
Long-Term Care Insurance [Member]
2010
Long-Term Care Insurance [Member]
Dec. 31, 2010
Long-Term Care Insurance [Member]
Dec. 31, 2009
Long-Term Care Insurance [Member]
6 Months Ended
Jun. 30, 2010
Workouts Loan Modifications And Pre Sales [Member]
U.S. Mortgage Insurance [Member]
3 Months Ended
Jun. 30, 2011
U.S. Mortgage Insurance [Member]
6 Months Ended
Jun. 30, 2011
U.S. Mortgage Insurance [Member]
Dec. 31, 2010
U.S. Mortgage Insurance [Member]
Strengthened reserve as a result of changes in estimates related to prior year insured events
$ 494 1
$ 120 2
 
 
$ 49 
$ 107 
 
 
 
 
 
 
 
 
 
 
$ 144 
$ 109 
 
 
 
 
$ 382 
 
Policy and contract claims liability related to U.S. mortgage insurance business includes a settlement of arbitration proceedings with a lender regarding certain bulk transactions, decrease in reserves
475 1
452 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total incurred
2,214 1
1,761 2
 
 
 
 
211 
201 
 
 
230 
353 
19 
152 
 
 
 
 
 
 
 
 
 
 
Loss mitigation activities that resulted in a reduction in expected losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
252 
450 
 
 
 
 
 
 
 
 
Change in reserves
1,720 1
1,641 2
 
 
 
 
 
 
22 
97 
 
 
 
 
 
 
 
 
 
94 
 
 
 
Reserve strengthening in current year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
299 
 
 
Ending balance
$ 7,327 1
$ 6,302 2
$ 6,933 1
$ 6,567 2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 3,678 
$ 3,188 
 
 
 
$ 2,282 
Liability For Policy And Contract Claims (Changes In The Liability For Policy And Contract Claims) (Details) (USD $)
In Millions
6 Months Ended
Jun. 30,
2011
2010
Disclosure Changes In The Liability For Policy And Contract Claims
 
 
Beginning Balance
$ 6,933 1
$ 6,567 2
Less reinsurance recoverables
(1,654)1
(1,769)2
Net beginning balance
5,279 1
4,798 2
Current year
1,720 1
1,641 2
Prior years
494 1
120 2
Total incurred
2,214 1
1,761 2
Current year
(475)1
(452)2
Prior years
(1,373)1
(1,539)2
Total paid
(1,848)1
(1,991)2
Interest on liability for policy and contract claims
67 1
59 2
Foreign currency translation
37 1
(63)2
Net ending balance
5,749 1
4,564 2
Add reinsurance recoverables
1,578 1
1,738 2
Ending Balance
$ 7,327 1
$ 6,302 2
Sale of Medicare Supplement Insurance Business (Details) (USD $)
In Millions
6 Months Ended
Jun. 30, 2011
Sale of Medicare Supplement Insurance Business
 
Cash proceeds from sale of business
$ 290 
Noncontrolling Interests (Details)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2011
CAD ($)
Noncontrolling Interests
 
Common shares repurchased
6.2 
Common shares repurchased, value
$ 160 
Cash received by Brookfield
$ 90 
Percentage of Genworth Canada common shares owned by parent company
57.50%