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Document and Entity Information - shares	6 Months Ended
Jun. 30, 2016	Jul. 18, 2016
Document and Entity Information
Entity Registrant Name	ALLSTATE CORP
Entity Central Index Key	0000899051
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		371,460,919

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Property-liability insurance premiums	$ 7,814	$ 7,549	$ 15,537	$ 14,975
Life and annuity premiums and contract charges	564	536	1,130	1,073
Net investment income	762	789	1,493	1,639
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(77)	(47)	(168)	(100)
OTTI losses reclassified to (from) other comprehensive income	(2)	4	8	8
Net OTTI losses recognized in earnings	(79)	(43)	(160)	(92)
Sales and other realized capital gains and losses	103	151	35	339
Total realized capital gains and losses	24	108	(125)	247
Total revenues	9,164	8,982	18,035	17,934
Costs and expenses
Property-liability insurance claims and claims expense	5,901	5,587	11,585	10,580
Life and annuity contract benefits	454	446	909	887
Interest credited to contractholder funds	185	185	375	384
Amortization of deferred policy acquisition costs	1,126	1,086	2,255	2,156
Operating costs and expenses	1,040	1,061	2,022	2,151
Restructuring and related charges	11	19	16	23
Interest expense	72	73	145	146
Costs and expenses	8,789	8,457	17,307	16,327
Gain on disposition of operations	1	1	3	0
Income from operations before income tax expense	376	526	731	1,607
Income tax expense	105	171	214	575
Net income	271	355	517	1,032
Preferred stock dividends	29	29	58	58
Net income applicable to common shareholders	$ 242	$ 326	$ 459	$ 974
Earnings per common share:
Net income available to common shareholders per common share - Basic (in dollars per share)	$ 0.65	$ 0.80	$ 1.22	$ 2.37
Weighted average common shares - Basic (in shares)	373.6	407.0	375.8	411.4
Net income available to common shareholders per common share - Diluted (in dollars per share)	$ 0.64	$ 0.79	$ 1.21	$ 2.33
Weighted average common shares - Diluted (in shares)	378.1	412.6	380.5	417.6
Cash dividends declared per common share (in dollars per share)	$ 0.33	$ 0.30	$ 0.66	$ 0.60

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Investments
Fixed income securities, at fair value (amortized cost $55,770 and $57,201)	$ 58,129	$ 57,948
Equity securities, at fair value (cost $4,924 and $4,806)	5,265	5,082
Mortgage loans	4,453	4,338
Limited partnership interests	5,407	4,874
Short-term, at fair value (amortized cost $2,850 and $2,122)	2,850	2,122
Other	3,590	3,394
Total investments	79,694	77,758
Cash	446	495
Premium installment receivables, net	5,593	5,544
Deferred policy acquisition costs	3,819	3,861
Reinsurance recoverables, net	8,650	8,518
Accrued investment income	564	569
Property and equipment, net	1,011	1,024
Goodwill	1,219	1,219
Other assets	2,850	2,010
Separate Accounts	3,438	3,658
Total assets	107,284	104,656
Liabilities
Reserve for property-liability insurance claims and claims expense	24,904	23,869
Reserve for life-contingent contract benefits	12,215	12,247
Contractholder funds	20,845	21,295
Unearned premiums	12,300	12,202
Claim payments outstanding	946	842
Deferred income taxes	782	90
Other liabilities and accrued expenses	6,192	5,304
Long-term debt	5,109	5,124
Separate Accounts	3,438	3,658
Total liabilities	86,731	84,631
Commitments and Contingent Liabilities (Note 10)
Shareholders’ equity
Preferred stock and additional capital paid-in, $1 par value, 25 million shares authorized, 72.2 thousand shares issued and outstanding, and $1,805 aggregate liquidation preference	1,746	1,746
Common stock, $.01 par value, 2.0 billion shares authorized and 900 million issued, 371 million and 381 million shares outstanding	9	9
Additional capital paid-in	3,203	3,245
Retained income	39,623	39,413
Deferred ESOP expense	(13)	(13)
Treasury stock, at cost (529 million and 519 million shares)	(24,310)	(23,620)
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	49	56
Other unrealized net capital gains and losses	1,702	608
Unrealized adjustment to DAC, DSI and insurance reserves	(127)	(44)
Total unrealized net capital gains and losses	1,624	620
Unrealized foreign currency translation adjustments	(41)	(60)
Unrecognized pension and other postretirement benefit cost	(1,288)	(1,315)
Total accumulated other comprehensive income (loss)	295	(755)
Total shareholders’ equity	20,553	20,025
Total liabilities and shareholders’ equity	$ 107,284	$ 104,656

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Fixed income securities, at fair value, amortized cost (in dollars)	$ 55,770	$ 57,201
Equity securities, at fair value, cost (in dollars)	4,924	4,806
Short-term, at fair value, amortized cost (in dollars)	$ 2,850	$ 2,122
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	72,200	72,200
Preferred stock, shares outstanding	72,200	72,200
Preferred stock, shares aggregate liquidation preference	$ 1,805	$ 1,805
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	900,000,000	900,000,000
Common stock, shares outstanding	371,000,000	381,000,000
Treasury Stock, shares	529,000,000	519,000,000

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions	Total	Preferred Stock	Preferred stock additional capital paid-in	Common stock	Additional capital paid-in	Retained income	Deferred ESOP expense	Treasury stock	Accumulated other comprehensive (loss) income
Balance, beginning of period at Dec. 31, 2014					$ 3,199	$ 37,842	$ (23)	$ (21,030)	$ 561
Increase (decrease) in equity
Forward contract on accelerated share repurchase agreement					0
Equity incentive plans activity					6
Net income	$ 1,032					1,032
Dividends on common stock						(249)
Dividends on preferred stock						(58)
Payments							0
Shares acquired								(1,432)
Shares reissued under equity incentive plans, net								189
Change in unrealized net capital gains and losses	(507)								(507)
Change in unrealized foreign currency translation adjustments	(36)								(36)
Change in unrecognized pension and other postretirement benefit cost	49								49
Balance, end of period at Jun. 30, 2015	$ 21,298		$ 1,746	$ 9	3,205	38,567	(23)	(22,273)	67
Preferred stock, par value (in dollars per share)		$ 0
Preferred stock, par value (in dollars per share)	$ 1
Balance, beginning of period at Dec. 31, 2015					3,245	39,413	(13)	(23,620)	(755)
Increase (decrease) in equity
Forward contract on accelerated share repurchase agreement					(52)
Equity incentive plans activity					10
Net income	$ 517					517
Dividends on common stock						(249)
Dividends on preferred stock						(58)
Payments							0
Shares acquired								(829)
Shares reissued under equity incentive plans, net								139
Change in unrealized net capital gains and losses	1,004								1,004
Change in unrealized foreign currency translation adjustments	19								19
Change in unrecognized pension and other postretirement benefit cost	27								27
Balance, end of period at Jun. 30, 2016	$ 20,553		$ 1,746	$ 9	$ 3,203	$ 39,623	$ (13)	$ (24,310)	$ 295
Preferred stock, par value (in dollars per share)	$ 1	$ 0

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net income	$ 517	$ 1,032
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other non-cash items	188	179
Realized capital gains and losses	125	(247)
Gain on disposition of operations	(3)	0
Interest credited to contractholder funds	375	384
Changes in:
Policy benefits and other insurance reserves	577	526
Unearned premiums	62	244
Deferred policy acquisition costs	(72)	(132)
Premium installment receivables, net	(27)	(158)
Reinsurance recoverables, net	(120)	(144)
Income taxes	(176)	(283)
Other operating assets and liabilities	(88)	(98)
Net cash provided by operating activities	1,358	1,303
Proceeds from sales
Fixed income securities	12,589	16,012
Equity securities	2,487	2,074
Limited partnership interests	363	591
Other investments	144	132
Investment collections
Fixed income securities	2,138	2,243
Mortgage loans	150	357
Other investments	168	177
Investment purchases
Fixed income securities	(12,947)	(16,482)
Equity securities	(2,672)	(1,920)
Limited partnership interests	(703)	(563)
Mortgage loans	(264)	(509)
Other investments	(449)	(518)
Change in short-term investments, net	(669)	(391)
Change in other investments, net	(39)	(16)
Purchases of property and equipment, net	(120)	(133)
Net cash provided by investing activities	176	1,054
Cash flows from financing activities
Repayments of long-term debt	(16)	(9)
Contractholder fund deposits	522	527
Contractholder fund withdrawals	(1,013)	(1,152)
Dividends paid on common stock	(240)	(243)
Dividends paid on preferred stock	(58)	(58)
Treasury stock purchases	(904)	(1,424)
Shares reissued under equity incentive plans, net	72	109
Excess tax benefits on share-based payment arrangements	20	43
Other	34	(2)
Net cash used in financing activities	(1,583)	(2,209)
Net (decrease) increase in cash	(49)	148
Cash at beginning of period	495	657
Cash at end of period	$ 446	$ 805

General	6 Months Ended
General	Jun. 30, 2016
General [Abstract]
General	General Basis of presentation The accompanying condensed consolidated financial statements include the accounts of The Allstate Corporation (the “Corporation”) and its wholly owned subsidiaries, primarily Allstate Insurance Company (“AIC”), a property-liability insurance company with various property-liability and life and investment subsidiaries, including Allstate Life Insurance Company (“ALIC”) (collectively referred to as the “Company” or “Allstate”). These condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The condensed consolidated financial statements and notes as of June 30, 2016 and for the three-month and six-month periods ended June 30, 2016 and 2015 are unaudited. The condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring accruals) which are, in the opinion of management, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year. All significant intercompany accounts and transactions have been eliminated. Adopted accounting standards Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition and not reflected in estimating the grant-date fair value of the award. Compensation costs should reflect the amount attributable to the periods for which the requisite service has been rendered. Total compensation expense recognized during and after the requisite service period (which may differ from the vesting period) should reflect the number of awards that are expected to vest and should be adjusted to reflect the number of awards that ultimately vest. The Company’s existing accounting policy for performance targets that affect the vesting of share-based payment awards is consistent with the new guidance and as such, the adoption as of January 1, 2016 had no impact on the Company’s results of operations or financial position. Amendments to the Consolidation Analysis In February 2015, the FASB issued guidance affecting the consolidation evaluation for limited partnerships and similar entities, fees paid to a decision maker or service provider, and variable interests in a variable interest entity held by related parties of the reporting enterprise. The adoption of this guidance as of January 1, 2016 did not have a material impact on the Company’s results of operations or financial position. Pending accounting standards Revenue from Contracts with Customers In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Disclosures about Short-Duration Contracts In May 2015, the FASB issued guidance requiring expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and will have no impact on the Company’s results of operations or financial position. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued guidance requiring equity investments, including equity securities and limited partnership interests, that are not accounted for under the equity method of accounting or result in consolidation to be measured at fair value with changes in fair value recognized in net income. Equity investments without readily determinable fair values may be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. When a qualitative assessment of equity investments without readily determinable fair values indicates that impairment exists, the carrying value is required to be adjusted to fair value, if lower. The guidance clarifies that an entity should evaluate the realizability of a deferred tax asset related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The guidance also changes certain disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2017, and is to be applied through a cumulative-effect adjustment to beginning retained income as of the beginning of the period of adoption. The new guidance related to equity investments without readily determinable fair values is to be applied prospectively as of the date of adoption. The Company is in the process of evaluating the impact of adoption. The most significant impacts, using values as of June 30, 2016, are expected to be the change in accounting for equity securities where $341 million of pre-tax unrealized net capital gains would be reclassified from accumulated other comprehensive income to retained income and cost method limited partnership interests (excluding limited partnership interests accounted for on a cost recovery basis) where the carrying value would increase by approximately $202 million, pre-tax, with the adjustment recorded in retained income. Accounting for Leases In February 2016, the FASB issued guidance that revises the accounting for leases. Under the new guidance, lessees will be required to recognize a right-of-use asset and lease liability for all leases other than those that meet the definition of a short-term lease. The lease liability will be equal to the present value of lease payments. A right-of-use asset will be based on the lease liability adjusted for qualifying initial direct costs. The expense of operating leases under the new guidance will be recognized in the income statement on a straight-line basis after combining the lease expense components (interest expense on the lease liability and amortization of the right-of-use asset) over the term of the lease. For finance leases, the expense components will be computed separately thereby producing greater up-front expense as interest expense on the lease liability is higher in early years and the right-of-use asset is amortized on a straight-line basis. Lease classification will be based on criteria similar to those currently applied. The accounting model for lessors will be similar to the current model with modifications to reflect definition changes for components such as initial direct costs. Lessors will continue to classify leases as operating, direct financing, or sales-type. The guidance is effective for reporting periods beginning after December 15, 2018 using a modified retrospective approach applied at the beginning of the earliest period presented. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Employee Share-Based Payment Accounting In March 2016, the FASB issued guidance to amend the accounting for share-based payments. Under the new guidance, reporting entities will be required to recognize all tax effects related to share-based payments at settlement (or expiration) through the income statement and will no longer be permitted to recognize excess tax benefits and tax deficiencies in additional paid in capital. The change will be applied on a modified retrospective basis, with a cumulative effect adjustment to beginning retained income. In addition, all tax-related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows, with either prospective or retrospective transition permitted. The new guidance will permit employers to withhold shares upon settlement of an award to satisfy the employer’s tax withholding requirement (up to the employee’s maximum individual statutory tax rate) without causing liability classification of the award. The new guidance clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares should be presented as financing activities on the statement of cash flows. Also under the new guidance, reporting entities are permitted to make an accounting policy election to estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The new guidance is effective for reporting periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Transition to Equity Method Accounting In March 2016, the FASB issued guidance amending the accounting requirements for transitioning to the equity method of accounting (“EMA”), including a transition from the cost method. The guidance requires the cost of acquiring an additional interest in an investee to be added to the existing carrying value to establish the initial basis of the EMA investment. Under the new guidance, no retroactive adjustment is required when an investment initially qualifies for EMA treatment. The guidance is effective for interim and annual periods beginning after December 15, 2016, and is to be applied prospectively. The guidance will principally affect the future accounting for investments that qualify for EMA after application of the cost method of accounting. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption.

Investments

6 Months Ended

Jun. 30, 2016

Investments [Abstract]

Investments

Fair values

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
June 30, 2016
U.S. government and agencies	$	3,401	$	122	$	—		$	3,523
Municipal	7,286		543		(11		)	7,818
Corporate	41,134		1,839		(273		)	42,700
Foreign government	1,091		61		—			1,152
Asset-backed securities (“ABS”)	1,737		11		(22		)	1,726
Residential mortgage-backed securities (“RMBS”)	748		81		(11		)	818
Commercial mortgage-backed securities (“CMBS”)	352		23		(7		)	368
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	55,770	$	2,683	$	(324	)	$	58,129


December 31, 2015
U.S. government and agencies	$	3,836	$	90	$	(4	)	$	3,922
Municipal	7,032		389		(20		)	7,401
Corporate	41,674		1,032		(879		)	41,827
Foreign government	983		50		—			1,033
ABS	2,359		11		(43		)	2,327
RMBS	857		100		(10		)	947
CMBS	438		32		(4		)	466
Redeemable preferred stock	22		3		—			25
Total fixed income securities	$	57,201	$	1,707	$	(960	)	$	57,948

Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of June 30, 2016:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,394	$	4,423
Due after one year through five years	26,870		27,753
Due after five years through ten years	16,262		16,854
Due after ten years	5,407		6,187
	52,933		55,217
ABS, RMBS and CMBS	2,837		2,912
Total	$	55,770	$	58,129

Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS, RMBS and CMBS are shown separately because of the potential for prepayment of principal prior to contractual maturity dates.

Net investment income

Net investment income is as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Fixed income securities	$	520		$	567		$	1,038		$	1,135
Equity securities	44			31			72			54
Mortgage loans	53			57			106			112
Limited partnership interests	126			118			247			316
Short-term investments	3			3			7			4
Other	57			49			108			94
Investment income, before expense	803			825			1,578			1,715
Investment expense	(41		)	(36		)	(85		)	(76		)
Net investment income	$	762		$	789		$	1,493		$	1,639

Realized capital gains and losses

Realized capital gains and losses by asset type are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Fixed income securities	$	24		$	60		$	(47	)	$	140
Equity securities	11			48			(79		)	126
Mortgage loans	1			1			1			1
Limited partnership interests	(13		)	(3		)	13			3
Derivatives	2			5			(7		)	(20		)
Other	(1		)	(3		)	(6		)	(3		)
Realized capital gains and losses	$	24		$	108		$	(125	)	$	247

Realized capital gains and losses by transaction type are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Impairment write-downs	$	(63	)	$	(11	)	$	(122	)	$	(30	)
Change in intent write-downs	(16		)	(32		)	(38		)	(62		)
Net other-than-temporary impairment losses recognized in earnings	(79		)	(43		)	(160		)	(92		)
Sales and other	104			146			45			362
Valuation and settlements of derivative instruments	(1		)	5			(10		)	(23		)
Realized capital gains and losses	$	24		$	108		$	(125	)	$	247

Gross gains of $163 million and $194 million and gross losses of $74 million and $46 million were realized on sales of fixed income and equity securities during the three months ended June 30, 2016 and 2015, respectively. Gross gains of $306 million and $471 million and gross losses of $285 million and $121 million were realized on sales of fixed income and equity securities during the six months ended June 30, 2016 and 2015, respectively.

Other-than-temporary impairment losses by asset type are as follows:



($ in millions)	Three months ended June 30, 2016									Three months ended June 30, 2015
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Corporate	$	(1	)	$	—		$	(1	)	$	(5	)	$	4		$	(1	)
ABS	—			(1		)	(1		)	(3		)	—			(3		)
CMBS	—			(1		)	(1		)	—			—			—
Total fixed income securities	(1		)	(2		)	(3		)	(8		)	4			(4		)
Equity securities	(51		)	—			(51		)	(36		)	—			(36		)
Limited partnership interests	(24		)	—			(24		)	—			—			—
Other	(1		)	—			(1		)	(3		)	—			(3		)
Other-than-temporary impairment losses	$	(77	)	$	(2	)	$	(79	)	$	(47	)	$	4		$	(43	)

	Six months ended June 30, 2016									Six months ended June 30, 2015
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—		$	—		$	(4	)	$	4		$	—
Corporate	(17		)	7			(10		)	(10		)	4			(6		)
ABS	(6		)	—			(6		)	(4		)	1			(3		)
RMBS	—			—			—			1			(1		)	—
CMBS	(4		)	1			(3		)	—			—			—
Total fixed income securities	(27		)	8			(19		)	(17		)	8			(9		)
Equity securities	(128		)	—			(128		)	(75		)	—			(75		)
Limited partnership interests	(11		)	—			(11		)	(5		)	—			(5		)
Other	(2		)	—			(2		)	(3		)	—			(3		)
Other-than-temporary impairment losses	$	(168	)	$	8		$	(160	)	$	(100	)	$	8		$	(92	)

The total amount of other-than-temporary impairment losses included in accumulated other comprehensive income at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amounts exclude $215 million and $233 million as of June 30, 2016 and December 31, 2015, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	June 30, 2016			December 31, 2015
Municipal	$	(8	)	$	(9	)
Corporate	(7		)	(7		)
ABS	(23		)	(23		)
RMBS	(95		)	(102		)
CMBS	(7		)	(6		)
Total	$	(140	)	$	(147	)

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of the end of the period are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Beginning balance	$	(350	)	$	(378	)	$	(392	)	$	(380	)
Additional credit loss for securities previously other-than-temporarily impaired	(3		)	(2		)	(11		)	(3		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(2		)	(8		)	(6		)
Reduction in credit loss for securities disposed or collected	22			8			80			14
Change in credit loss due to accretion of increase in cash flows	—			2			—			3
Ending balance	$	(331	)	$	(372	)	$	(331	)	$	(372	)

The Company uses its best estimate of future cash flows expected to be collected from the fixed income security, discounted at the security’s original or current effective rate, as appropriate, to calculate a recovery value and determine whether a credit loss exists. The determination of cash flow estimates is inherently subjective and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security, including past events, current conditions, and reasonable and supportable assumptions and forecasts, are considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, foreign exchange rates, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, vintage, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, sector credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement. If the estimated recovery value is less than the amortized cost of the security, a credit loss exists and an other-than-temporary impairment for the difference between the estimated recovery value and amortized cost is recorded in earnings. The portion of the unrealized loss related to factors other than credit remains classified in accumulated other comprehensive income. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.

Unrealized net capital gains and losses

Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
June 30, 2016	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	58,129	$	2,683	$	(324	)	$	2,359
Equity securities	5,265		506		(165		)	341
Short-term investments	2,850		—		—			—
Derivative instruments ⁽¹⁾	5		5		(3		)	2
Equity method (“EMA”) limited partnerships ⁽²⁾								(5		)
Unrealized net capital gains and losses, pre-tax								2,697
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(195		)
Amounts recognized								(195		)
Deferred income taxes								(878		)
Unrealized net capital gains and losses, after-tax								$	1,624

_______________


⁽¹⁾	Included in the fair value of derivative instruments are $2 million classified as assets and $(3) million classified as liabilities.


⁽²⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.

⁽³⁾

The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. Although the Company evaluates premium deficiencies on the combined performance of life insurance and immediate annuities with life contingencies, the adjustment, if any, primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.


⁽⁴⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2015	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	57,948	$	1,707	$	(960	)	$	747
Equity securities	5,082		415		(139		)	276
Short-term investments	2,122		—		—			—
Derivative instruments ⁽¹⁾	10		10		(4		)	6
EMA limited partnerships								(4		)
Unrealized net capital gains and losses, pre-tax								1,025
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(67		)
Amounts recognized								(67		)
Deferred income taxes								(338		)
Unrealized net capital gains and losses, after-tax								$	620

_______________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) million classified as liabilities.

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the six months ended June 30, 2016 is as follows:



($ in millions)
Fixed income securities	$	1,612
Equity securities	65
Derivative instruments	(4		)
EMA limited partnerships	(1		)
Total	1,672
Amounts recognized for:
Insurance reserves	—
DAC and DSI	(128		)
Amounts recognized	(128		)
Deferred income taxes	(540		)
Increase in unrealized net capital gains and losses, after-tax	$	1,004

Portfolio monitoring

The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income and equity security whose carrying value may be other-than-temporarily impaired.

For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, the security’s decline in fair value is considered other than temporary and is recorded in earnings.

If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value by discounting the best estimate of future cash flows at the security’s original or current effective rate, as appropriate, and compares this to the amortized cost of the security. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, the credit loss component of the impairment is recorded in earnings, with the remaining amount of the unrealized loss related to other factors recognized in other comprehensive income.

For equity securities, the Company considers various factors, including whether it has the intent and ability to hold the equity security for a period of time sufficient to recover its cost basis. Where the Company lacks the intent and ability to hold to recovery, or believes the recovery period is extended, the equity security’s decline in fair value is considered other than temporary and is recorded in earnings.

For fixed income and equity securities managed by third parties, either the Company has contractually retained its decision making authority as it pertains to selling securities that are in an unrealized loss position or it recognizes any unrealized loss at the end of the period through a charge to earnings.

The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost (for fixed income securities) or cost (for equity securities) is below established thresholds. The process also includes the monitoring of other impairment indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential other-than-temporary impairment using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of other-than-temporary impairment for these fixed income and equity securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value is other than temporary are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the length of time and extent to which the fair value has been less than amortized cost or cost.

The following table summarizes the gross unrealized losses and fair value of fixed income and equity securities by the length of time that individual securities have been in a continuous unrealized loss position.



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
June 30, 2016
Fixed income securities
U.S. government and agencies	5	$	528	$	—		—	$	—	$	—		$	—
Municipal	32	76		—			9	28		(11		)	(11		)
Corporate	296	3,524		(112		)	196	1,958		(161		)	(273		)
Foreign government	1	2		—			—	—		—			—
ABS	40	371		(5		)	24	371		(17		)	(22		)
RMBS	78	39		(1		)	175	108		(10		)	(11		)
CMBS	14	78		(6		)	1	2		(1		)	(7		)
Total fixed income securities	466	4,618		(124		)	405	2,467		(200		)	(324		)
Equity securities	241	1,002		(130		)	55	160		(35		)	(165		)
Total fixed income and equity securities	707	$	5,620	$	(254	)	460	$	2,627	$	(235	)	$	(489	)
Investment grade fixed income securities	220	$	2,249	$	(24	)	256	$	1,331	$	(87	)	$	(111	)
Below investment grade fixed income securities	246	2,369		(100		)	149	1,136		(113		)	(213		)
Total fixed income securities	466	$	4,618	$	(124	)	405	$	2,467	$	(200	)	$	(324	)

December 31, 2015
Fixed income securities
U.S. government and agencies	53	$	1,874	$	(4	)	—	$	—	$	—		$	(4	)
Municipal	222	810		(6		)	9	36		(14		)	(20		)
Corporate	1,361	17,915		(696		)	111	1,024		(183		)	(879		)
Foreign government	9	44		—			—	—		—			—
ABS	133	1,733		(24		)	20	324		(19		)	(43		)
RMBS	88	69		—			176	125		(10		)	(10		)
CMBS	13	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,879	22,520		(732		)	317	1,511		(228		)	(960		)
Equity securities	265	1,397		(107		)	37	143		(32		)	(139		)
Total fixed income and equity securities	2,144	$	23,917	$	(839	)	354	$	1,654	$	(260	)	$	(1,099	)
Investment grade fixed income securities	1,405	$	17,521	$	(362	)	225	$	972	$	(105	)	$	(467	)
Below investment grade fixed income securities	474	4,999		(370		)	92	539		(123		)	(493		)
Total fixed income securities	1,879	$	22,520	$	(732	)	317	$	1,511	$	(228	)	$	(960	)

As of June 30, 2016, $288 million of the $489 million unrealized losses are related to securities with an unrealized loss position less than 20% of amortized cost or cost, the degree of which suggests that these securities do not pose a high risk of being other-than-temporarily impaired. Of the $288 million, $65 million are related to unrealized losses on investment grade fixed income securities and $79 million are related to equity securities. Of the remaining $144 million, $76 million have been in an unrealized loss position for less than 12 months. Investment grade is defined as a security having a rating of Aaa, Aa, A or Baa from Moody’s, a rating of AAA, AA, A or BBB from Standard and Poor’s (“S&P”), Fitch, Dominion, Kroll or Realpoint, a rating of aaa, aa, a or bbb from A.M. Best, or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates and/or wider credit spreads since the time of initial purchase.

As of June 30, 2016, the remaining $201 million of unrealized losses are related to securities in unrealized loss positions greater than or equal to 20% of amortized cost or cost. Investment grade fixed income securities comprising $46 million of these unrealized losses were evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations. Of the $201 million, $69 million are related to below investment grade fixed income securities and $86 million are related to equity securities. Of these amounts, $18 million are related to below investment grade fixed income securities that had been in an unrealized loss position greater than or equal to 20% of amortized cost for a period of twelve or more consecutive months as of June 30, 2016.

ABS, RMBS and CMBS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread, and (iii) for ABS and RMBS in an unrealized loss position, credit enhancements from reliable bond insurers, where applicable. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets. Unrealized losses on equity securities are primarily related to temporary equity market fluctuations of securities that are expected to recover.

As of June 30, 2016, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis. As of June 30, 2016, the Company had the intent and ability to hold equity securities with unrealized losses for a period of time sufficient for them to recover.

Limited partnerships

As of June 30, 2016 and December 31, 2015, the carrying value of equity method limited partnerships totaled $4.12 billion and $3.72 billion, respectively. The Company recognizes an impairment loss for equity method limited partnerships when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment.

As of June 30, 2016 and December 31, 2015, the carrying value for cost method limited partnerships was $1.28 billion and $1.15 billion, respectively. To determine if an other-than-temporary impairment has occurred, the Company evaluates whether an impairment indicator has occurred in the period that may have a significant adverse effect on the carrying value of the investment. Impairment indicators may include: significantly reduced valuations of the investments held by the limited partnerships; actual recent cash flows received being significantly less than expected cash flows; reduced valuations based on financing completed at a lower value; completed sale of a material underlying investment at a price significantly lower than expected; or any other adverse events since the last financial statements received that might affect the fair value of the investee’s capital. Additionally, the Company’s portfolio monitoring process includes a quarterly review of all cost method limited partnerships to identify instances where the net asset value is below established thresholds for certain periods of time, as well as investments that are performing below expectations, for further impairment consideration. If a cost method limited partnership is other-than-temporarily impaired, the carrying value is written down to fair value, generally estimated to be equivalent to the reported net asset value.

Mortgage loans

Mortgage loans are evaluated for impairment on a specific loan basis through a quarterly credit monitoring process and review of key credit quality indicators. Mortgage loans are considered impaired when it is probable that the Company will not collect the contractual principal and interest. Valuation allowances are established for impaired loans to reduce the carrying value to the fair value of the collateral less costs to sell or the present value of the loan’s expected future repayment cash flows discounted at the loan’s original effective interest rate. Impaired mortgage loans may not have a valuation allowance when the fair value of the collateral less costs to sell is higher than the carrying value. Valuation allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell or present value of the loan’s expected future repayment cash flows. Mortgage loans are charged off against their corresponding valuation allowances when there is no reasonable expectation of recovery. The impairment evaluation is non-statistical in respect to the aggregate portfolio but considers facts and circumstances attributable to each loan. It is not considered probable that additional impairment losses, beyond those identified on a specific loan basis, have been incurred as of June 30, 2016.

Accrual of income is suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on mortgage loans on nonaccrual status are generally recorded as a reduction of carrying value.

Debt service coverage ratio is considered a key credit quality indicator when mortgage loans are evaluated for impairment. Debt service coverage ratio represents the amount of estimated cash flows from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.

The following table reflects the carrying value of non-impaired fixed rate mortgage loans summarized by debt service coverage ratio distribution.



($ in millions)	June 30, 2016		December 31, 2015
Below 1.0	$	43	$	64
1.0 - 1.25	309		382
1.26 - 1.50	1,221		1,219
Above 1.50	2,874		2,667
Total non-impaired mortgage loans	$	4,447	$	4,332

Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees.

The net carrying value of impaired mortgage loans is as follows:



($ in millions)	June 30, 2016		December 31, 2015
Impaired mortgage loans with a valuation allowance	$	6	$	6
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	6
Valuation allowance on impaired mortgage loans	$	3	$	3

The average balance of impaired loans was $6 million and $13 million for the six months ended June 30, 2016 and 2015, respectively.

The rollforward of the valuation allowance on impaired mortgage loans is as follows:



($ in millions)	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016		2015
Beginning balance	$	3	$	8		$	3	$	8
Charge offs	—		(1		)	—		(1		)
Ending balance	$	3	$	7		$	3	$	7

The payment status of mortgage loans is as follows:



($ in millions)	June 30, 2016		December 31, 2015
Less than 90 days past due	$	6	$	—
90 days or greater past due	—		—
Total past due	6		—
Current loans	4,447		4,338
Total mortgage loans	$	4,453	$	4,338

Fair Value of Assets and Liabilities

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The hierarchy for inputs used in determining fair value maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Assets and liabilities recorded on the Condensed Consolidated Statements of Financial Position at fair value are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Level 3: Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Unobservable inputs reflect the Company’s estimates of the assumptions that market participants would use in valuing the assets and liabilities.

The availability of observable inputs varies by instrument. In situations where fair value is based on internally developed pricing models or inputs that are unobservable in the market, the determination of fair value requires more judgment. The degree of judgment exercised by the Company in determining fair value is typically greatest for instruments categorized in Level 3. In many instances, valuation inputs used to measure fair value fall into different levels of the fair value hierarchy. The category level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company uses prices and inputs that are current as of the measurement date, including during periods of market disruption. In periods of market disruption, the ability to observe prices and inputs may be reduced for many instruments.

The Company is responsible for the determination of fair value and the supporting assumptions and methodologies. The Company gains assurance that assets and liabilities are appropriately valued through the execution of various processes and controls designed to ensure the overall reasonableness and consistent application of valuation methodologies, including inputs and assumptions, and compliance with accounting standards. For fair values received from third parties or internally estimated, the Company’s processes and controls are designed to ensure that the valuation methodologies are appropriate and consistently applied, the inputs and assumptions are reasonable and consistent with the objective of determining fair value, and the fair values are accurately recorded. For example, on a continuing basis, the Company assesses the reasonableness of individual fair values that have stale security prices or that exceed certain thresholds as compared to previous fair values received from valuation service providers or brokers or derived from internal models. The Company performs procedures to understand and assess the methodologies, processes and controls of valuation service providers. In addition, the Company may validate the reasonableness of fair values by comparing information obtained from valuation service providers or brokers to other third party valuation sources for selected securities. The Company performs ongoing price validation procedures such as back-testing of actual sales, which corroborate the various inputs used in internal models to market observable data. When fair value determinations are expected to be more variable, the Company validates them through reviews by members of management who have relevant expertise and who are independent of those charged with executing investment transactions.

The Company has two types of situations where investments are classified as Level 3 in the fair value hierarchy. The first is where specific inputs significant to the fair value estimation models are not market observable. This primarily occurs in the Company’s use of broker quotes to value certain securities where the inputs have not been corroborated to be market observable, and the use of valuation models that use significant non-market observable inputs.

The second situation where the Company classifies securities in Level 3 is where quotes continue to be received from independent third-party valuation service providers and all significant inputs are market observable; however, there has been a significant decrease in the volume and level of activity for the asset when compared to normal market activity such that the degree of market observability has declined to a point where categorization as a Level 3 measurement is considered appropriate. The indicators considered in determining whether a significant decrease in the volume and level of activity for a specific asset has occurred include the level of new issuances in the primary market, trading volume in the secondary market, the level of credit spreads over historical levels, applicable bid-ask spreads, and price consensus among market participants and other pricing sources.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans, limited partnership interests, bank loans, agent loans and policy loans. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to remeasurement at fair value after initial recognition and the resulting remeasurement is reflected in the condensed consolidated financial statements. In addition, derivatives embedded in fixed income securities are not disclosed in the hierarchy as free-standing derivatives since they are presented with the host contracts in fixed income securities.

In determining fair value, the Company principally uses the market approach which generally utilizes market transaction data for the same or similar instruments. To a lesser extent, the Company uses the income approach which involves determining fair values from discounted cash flow methodologies. For the majority of Level 2 and Level 3 valuations, a combination of the market and income approaches is used.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements


•	Fixed income securities:

U.S. government and agencies: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - public: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

Corporate - privately placed: Valued using a discounted cash flow model that is widely accepted in the financial services industry and uses market observable inputs and inputs derived principally from, or corroborated by, observable market data. The primary inputs to the discounted cash flow model include an interest rate yield curve, as well as published credit spreads for similar assets in markets that are not active that incorporate the credit quality and industry sector of the issuer.

Foreign government: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.

ABS - collateralized debt obligations (“CDO”) and ABS - consumer and other: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads. Certain ABS - CDO and ABS - consumer and other are valued based on non-binding broker quotes whose inputs have been corroborated to be market observable.

RMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, prepayment speeds, collateral performance and credit spreads.

CMBS: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, collateral performance and credit spreads.

Redeemable preferred stock: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields, underlying stock prices and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. For certain short-term investments, amortized cost is used as the best estimate of fair value.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

OTC derivatives, including interest rate swaps, foreign currency swaps, foreign exchange forward contracts, certain options and certain credit default swaps, are valued using models that rely on inputs such as interest rate yield curves, currency rates, and counterparty credit spreads that are observable for substantially the full term of the contract. The valuation techniques underlying the models are widely accepted in the financial services industry and do not involve significant judgment.

Level 3 measurements


•	Fixed income securities:

Municipal: Comprise municipal bonds that are not rated by third party credit rating agencies but are rated by the National Association of Insurance Commissioners (“NAIC”). The primary inputs to the valuation of these municipal bonds include quoted prices for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements, contractual cash flows, benchmark yields and credit spreads. Also included are municipal bonds valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and municipal bonds in default valued based on the present value of expected cash flows.

Corporate - public and Corporate - privately placed: Primarily valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. Other inputs include an interest rate yield curve, as well as published credit spreads for similar assets that incorporate the credit quality and industry sector of the issuer.

ABS - CDO, ABS - consumer and other, RMBS and CMBS: Valued based on non-binding broker quotes received from brokers who are familiar with the investments and where the inputs have not been corroborated to be market observable.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

•

Other investments: Certain OTC derivatives, such as interest rate caps, certain credit default swaps and certain options (including swaptions), are valued using models that are widely accepted in the financial services industry. These are categorized as Level 3 as a result of the significance of non-market observable inputs such as volatility. Other primary inputs include interest rate yield curves and credit spreads.

•

Contractholder funds: Derivatives embedded in certain life and annuity contracts are valued internally using models widely accepted in the financial services industry that determine a single best estimate of fair value for the embedded derivatives within a block of contractholder liabilities. The models primarily use stochastically determined cash flows based on the contractual elements of embedded derivatives, projected option cost and applicable market data, such as interest rate yield curves and equity index volatility assumptions. These are categorized as Level 3 as a result of the significance of non-market observable inputs.

Assets and liabilities measured at fair value on a non-recurring basis

Mortgage loans written-down to fair value in connection with recognizing impairments are valued based on the fair value of the underlying collateral less costs to sell. Limited partnership interests written-down to fair value in connection with recognizing other-than-temporary impairments are generally valued using net asset values.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2016.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	2,658		$	865		$	—					$	3,523
Municipal	—			7,669			149						7,818
Corporate - public	—			30,798			74						30,872
Corporate - privately placed	—			11,243			585						11,828
Foreign government	—			1,152			—						1,152
ABS - CDO	—			691			33						724
ABS - consumer and other	—			957			45						1,002
RMBS	—			817			1						818
CMBS	—			348			20						368
Redeemable preferred stock	—			24			—						24
Total fixed income securities	2,658			54,564			907						58,129
Equity securities	4,972			175			118						5,265
Short-term investments	733			2,117			—						2,850
Other investments: Free-standing derivatives	—			88			1			$	(18	)	71
Separate account assets	3,438			—			—						3,438
Other assets	2			—			1						3
Total recurring basis assets	11,803			56,944			1,027			(18		)	69,756
Non-recurring basis⁽¹⁾	—			—			38						38
Total assets at fair value	$	11,803		$	56,944		$	1,065		$	(18	)	$	69,794
% of total assets at fair value	16.9		%	81.6		%	1.5		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(304	)				$	(304	)
Other liabilities: Free-standing derivatives	(3		)	(55		)	(8		)	$	33		(33		)
Total liabilities at fair value	$	(3	)	$	(55	)	$	(312	)	$	33		$	(337	)
% of total liabilities at fair value	0.9		%	16.3		%	92.6		%	(9.8		)%	100		%

_______________


⁽¹⁾	Includes $36 million of limited partnership interests and $2 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	3,056		$	861		$	5					$	3,922
Municipal	—			7,240			161						7,401
Corporate - public	—			30,356			46						30,402
Corporate - privately placed	—			10,923			502						11,425
Foreign government	—			1,033			—						1,033
ABS - CDO	—			716			61						777
ABS - consumer and other	—			1,500			50						1,550
RMBS	—			946			1						947
CMBS	—			446			20						466
Redeemable preferred stock	—			25			—						25
Total fixed income securities	3,056			54,046			846						57,948
Equity securities	4,786			163			133						5,082
Short-term investments	615			1,507			—						2,122
Other investments: Free-standing derivatives	—			65			1			$	(13	)	53
Separate account assets	3,658			—			—						3,658
Other assets	2			—			1						3
Total recurring basis assets	12,117			55,781			981			(13		)	68,866
Non-recurring basis ⁽¹⁾	—			—			55						55
Total assets at fair value	$	12,117		$	55,781		$	1,036		$	(13	)	$	68,921
% of total assets at fair value	17.6		%	80.9		%	1.5		%	—		%	100		%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	(1		)	(23		)	(8		)	$	7		(25		)
Total liabilities at fair value	$	(1	)	$	(23	)	$	(307	)	$	7		$	(324	)
% of total liabilities at fair value	0.3		%	7.1		%	94.8		%	(2.2		)%	100		%

_______________


⁽¹⁾	Includes $42 million of limited partnership interests and $13 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
June 30, 2016
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(250	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.75%
December 31, 2015
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.76%

The embedded derivatives are equity-indexed and forward starting options in certain life and annuity products that provide customers with interest crediting rates based on the performance of the S&P 500. If the projected option cost increased (decreased), it would result in a higher (lower) liability fair value.

As of June 30, 2016 and December 31, 2015, Level 3 fair value measurements of fixed income securities total $907 million and $846 million, respectively, and include $350 million and $625 million, respectively, of securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable and $92 million and $96 million, respectively, of municipal fixed income securities that are not rated by third party credit rating agencies. The Company does not develop the unobservable inputs used in measuring fair value; therefore, these are not included in the table above. However, an increase (decrease) in credit spreads for fixed income securities valued based on non-binding broker quotes would result in a lower (higher) fair value, and an increase (decrease) in the credit rating of municipal bonds that are not rated by third party credit rating agencies would result in a higher (lower) fair value.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of March 31, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	4		$	—		$	—		$	—		$	(4	)
Municipal	146			—			3			6			—
Corporate - public	63			—			—			—			—
Corporate - privately placed	549			3			8			16			(69		)
ABS - CDO	58			—			3			6			(3		)
ABS - consumer and other	44			—			(1		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	885			3			13			31			(76		)
Equity securities	125			(8		)	1			—			—
Free-standing derivatives, net	(8		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,003		$	(4	)	$	14		$	31		$	(76	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(313	)	$	7		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(313	)	$	7		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	—		$	—
Municipal	—			(6		)	—			—			149
Corporate - public	7			4			—			—			74
Corporate - privately placed	80			—			—			(2		)	585
ABS - CDO	—			—			—			(31		)	33
ABS - consumer and other	—			—			—			(1		)	45
RMBS	—			—			—			—			1
CMBS	—			—			—			—			20
Total fixed income securities	87			(2		)	—			(34		)	907
Equity securities	—			—			—			—			118
Free-standing derivatives, net	—			—			—			—			(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	87		$	(2	)	$	—		$	(34	)	$	1,019
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	2		$	(304	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	2		$	(304	)

_____________


⁽¹⁾	The effect to net income totals $3 million and is reported in the Condensed Consolidated Statements of Operations as follows: $(9) million in realized capital gains and losses, $5 million in net investment income, $(7) million in interest credited to contractholder funds and $14 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	(4	)
Municipal	161			10			(5		)	6			—
Corporate - public	46			—			1			25			(7		)
Corporate - privately placed	502			4			13			16			(83		)
ABS - CDO	61			—			2			10			(3		)
ABS - consumer and other	50			—			(2		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	846			14			9			60			(97		)
Equity securities	133			(32		)	8			—			—
Free-standing derivatives, net	(7		)	—			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	(18	)	$	17		$	60		$	(97	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	(8	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	(8	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	—			(22		)	—			(1		)	149
Corporate - public	7			4			—			(2		)	74
Corporate - privately placed	143			—			—			(10		)	585
ABS - CDO	—			(2		)	—			(35		)	33
ABS - consumer and other	—			(5		)	—			(1		)	45
RMBS	—			—			—			—			1
CMBS	2			—			—			(2		)	20
Total fixed income securities	152			(25		)	—			(52		)	907
Equity securities	9			—			—			—			118
Free-standing derivatives, net	—			—			—			—			(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	161		$	(25	)	$	—		$	(52	)	$	1,019
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(304	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(304	)

_____________


⁽¹⁾	The effect to net income totals $(26) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(25) million in realized capital gains and losses, $7 million in net investment income, $(6) million in interest credited to contractholder funds and $(2) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of March 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	—
Municipal	238			2			(6		)	—			(2		)
Corporate	878			3			2			—			(208		)
ABS	137			(1		)	2			—			(11		)
RMBS	1			—			—			—			—
CMBS	28			—			—			—			—
Total fixed income securities	1,287			4			(2		)	—			(221		)
Equity securities	93			1			2			—			—
Short-term investments	10			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,384		$	6		$	—		$	—		$	(221	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(326	)	$	9		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(326	)	$	9		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	—		$	5
Municipal	—			(16		)	—			(1		)	215
Corporate	—			—			—			(49		)	626
ABS	—			(5		)	—			(2		)	120
RMBS	—			—			—			—			1
CMBS	—			—			—			—			28
Total fixed income securities	—			(21		)	—			(52		)	995
Equity securities	12			—			—			—			108
Short-term investments	25			—			—			—			35
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	37		$	(21	)	$	—		$	(53	)	$	1,132
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	2		$	(315	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	2		$	(315	)

_____________________


⁽¹⁾	The effect to net income totals $15 million and is reported in the Condensed Consolidated Statements of Operations as follows: $2 million in realized capital gains and losses, $4 million in net investment income and $9 million in interest credited to contractholder funds.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2014			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	6		$	—		$	—		$	—		$	—
Municipal	270			2			(4		)	—			(2		)
Corporate	891			—			(6		)	5			(208		)
ABS	196			(2		)	2			12			(84		)
RMBS	1			—			—			—			—
CMBS	23			—			—			—			—
Total fixed income securities	1,387			—			(8		)	17			(294		)
Equity securities	83			1			4			—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,469		$	2		$	(4	)	$	17		$	(294	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	5		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	5		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	5
Municipal	—			(49		)	—			(2		)	215
Corporate	60			(46		)	—			(70		)	626
ABS	10			(5		)	—			(9		)	120
RMBS	—			—			—			—			1
CMBS	5			—			—			—			28
Total fixed income securities	75			(100		)	—			(82		)	995
Equity securities	20			—			—			—			108
Short-term investments	30			—			—			—			35
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	125		$	(100	)	$	—		$	(83	)	$	1,132
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(315	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(315	)

_____________________


⁽¹⁾	The effect to net income totals $7 million and is reported in the Condensed Consolidated Statements of Operations as follows: $(4) million in realized capital gains and losses, $6 million in net investment income and $5 million in interest credited to contractholder funds.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.

Transfers between level categorizations may occur due to changes in the availability of market observable inputs, which generally are caused by changes in market conditions such as liquidity, trading volume or bid-ask spreads. Transfers between level categorizations may also occur due to changes in the valuation source. For example, in situations where a fair value quote is not provided by the Company’s independent third-party valuation service provider and as a result the price is stale or has been replaced with a broker quote whose inputs have not been corroborated to be market observable, the security is transferred into Level 3. Transfers in and out of level categorizations are reported as having occurred at the beginning of the quarter in which the transfer occurred. Therefore, for all transfers into Level 3, all realized and changes in unrealized gains and losses in the quarter of transfer are reflected in the Level 3 rollforward table.

There were no transfers between Level 1 and Level 2 during the three months and six months ended June 30, 2016 or 2015.

Transfers into Level 3 during the three months and six months ended June 30, 2016 and 2015 included situations where a fair value quote was not provided by the Company’s independent third-party valuation service provider and as a result the price was stale or had been replaced with a broker quote where the inputs had not been corroborated to be market observable resulting in the security being classified as Level 3. Transfers out of Level 3 during the three months and six months ended June 30, 2016 and 2015 included situations where a broker quote was used in the prior period and a fair value quote became available from the Company’s independent third-party valuation service provider in the current period. A quote utilizing the new pricing source was not available as of the prior period, and any gains or losses related to the change in valuation source for individual securities were not significant.

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of June 30.



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Assets
Fixed income securities:
Municipal	$	1		$	—		$	1		$	(1	)
Corporate	3			3			1			5
ABS	—			(1		)	—			(1		)
Total fixed income securities	4			2			2			3
Equity securities	(8		)	1			(32		)	—
Free-standing derivatives, net	1			1			—			1
Total recurring Level 3 assets	$	(3	)	$	4		$	(30	)	$	4
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	7		$	9		$	(8	)	$	5
Total recurring Level 3 liabilities	$	7		$	9		$	(8	)	$	5

The amounts in the table above represent the change in unrealized gains and losses included in net income for the period of time that the asset or liability was determined to be in Level 3. These gains and losses total $4 million for the three months ended June 30, 2016 and are reported as follows: $(9) million in realized capital gains and losses, $6 million in net investment income, $(7) million in interest credited to contractholder funds and $14 million in life and annuity contract benefits. These gains and losses total $13 million for the three months ended June 30, 2015 and are reported as follows: $4 million in net investment income and $9 million in interest credited to contractholder funds. These gains and losses total $(38) million for the six months ended June 30, 2016 and are reported as follows: $(38) million in realized capital gains and losses, $8 million in net investment income, $(6) million in interest credited to contractholder funds and $(2) million in life and annuity contract benefits. These gains and losses total $9 million for the six months ended June 30, 2015 and are reported as follows: $(2) million in realized capital gains and losses, $6 million in net investment income and $5 million in interest credited to contractholder funds.

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets



($ in millions)	June 30, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,453	$	4,666	$	4,338	$	4,489
Cost method limited partnerships	1,284		1,511		1,154		1,450
Bank loans	1,635		1,614		1,565		1,527
Agent loans	452		444		422		408

The fair value of mortgage loans is based on discounted contractual cash flows or, if the loans are impaired due to credit reasons, the fair value of collateral less costs to sell. Risk adjusted discount rates are selected using current rates at which similar loans would be made to borrowers with similar characteristics, using similar types of properties as collateral. The fair value of cost method limited partnerships is determined using reported net asset values. The fair value of bank loans, which are reported in other investments, is based on broker quotes from brokers familiar with the loans and current market conditions. The fair value of agent loans, which are reported in other investments, is based on discounted cash flow calculations that use discount rates with a spread over U.S. Treasury rates. Assumptions used in developing estimated cash flows and discount rates consider the loan’s credit and liquidity risks. The fair value measurements for mortgage loans, cost method limited partnerships, bank loans and agent loans are categorized as Level 3.

Financial liabilities



($ in millions)	June 30, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	11,919	$	12,420	$	12,424	$	12,874
Long-term debt	5,109		5,868		5,124		5,648
Liability for collateral	896		896		840		840

The fair value of contractholder funds on investment contracts is based on the terms of the underlying contracts incorporating current market-based crediting rates for similar contracts that reflect the Company’s own credit risk. Deferred annuities classified in contractholder funds are valued based on discounted cash flow models that incorporate current market based margins and reflect the Company’s own credit risk. Immediate annuities without life contingencies and funding agreements are valued based on discounted cash flow models that incorporate current market-based implied interest rates and reflect the Company’s own credit risk. The fair value measurement for contractholder funds on investment contracts is categorized as Level 3.

The fair value of long-term debt is based on market observable data (such as the fair value of the debt when traded as an asset) or, in certain cases, is determined using discounted cash flow calculations based on current interest rates for instruments with comparable terms and considers the Company’s own credit risk. The liability for collateral is valued at carrying value due to its short-term nature. The fair value measurements for long-term debt and liability for collateral are categorized as Level 2.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

The Company uses derivatives for risk reduction and to increase investment portfolio returns through asset replication. Risk reduction activity is focused on managing the risks with certain assets and liabilities arising from the potential adverse impacts from changes in risk-free interest rates, changes in equity market valuations, increases in credit spreads and foreign currency fluctuations.

Property-Liability may use interest rate swaps, swaptions, futures and options to manage the interest rate risks of existing investments. These instruments are utilized to change the duration of the portfolio in order to offset the economic effect that interest rates would otherwise have on the fair value of its fixed income securities. Credit default swaps are typically used to mitigate the credit risk within the Property-Liability fixed income portfolio. Equity index futures and options are used by Property-Liability to offset valuation losses in the equity portfolio during periods of declining equity market values. In addition, equity futures are used to hedge the market risk related to deferred compensation liability contracts. Forward contracts are primarily used by Property-Liability to hedge foreign currency risk associated with holding foreign currency denominated investments and foreign operations.

Allstate Financial utilizes several derivative strategies to manage risk. Asset-liability management is a risk management strategy that is principally employed by Allstate Financial to balance the respective interest-rate sensitivities of its assets and liabilities. Depending upon the attributes of the assets acquired and liabilities issued, derivative instruments such as interest rate swaps, caps, swaptions and futures are utilized to change the interest rate characteristics of existing assets and liabilities to ensure the relationship is maintained within specified ranges and to reduce exposure to rising or falling interest rates. Credit default swaps are typically used to mitigate the credit risk within the Allstate Financial fixed income portfolio. Futures and options are used for hedging the equity exposure contained in Allstate Financial’s equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, Allstate Financial uses equity index futures to offset valuation losses in the equity portfolio during periods of declining equity market values. Interest rate swaps are used to hedge interest rate risk inherent in funding agreements. Foreign currency swaps and forwards are primarily used by Allstate Financial to reduce the foreign currency risk associated with holding foreign currency denominated investments.

Asset replication refers to the “synthetic” creation of assets through the use of derivatives. The Company replicates fixed income securities using a combination of a credit default swap or a foreign currency forward contract and one or more highly rated fixed income securities, primarily investment grade host bonds, to synthetically replicate the economic characteristics of one or more cash market securities. The Company replicates equity securities using futures to increase equity exposure.

The Company also has derivatives embedded in non-derivative host contracts that are required to be separated from the host contracts and accounted for at fair value with changes in fair value of embedded derivatives reported in net income. The Company’s primary embedded derivatives are equity options in life and annuity product contracts, which provide equity returns to contractholders, and conversion options in fixed income securities, which provide the Company with the right to convert the instrument into a predetermined number of shares of common stock.

When derivatives meet specific criteria, they may be designated as accounting hedges and accounted for as fair value, cash flow, foreign currency fair value or foreign currency cash flow hedges. Allstate Financial designates certain investment risk transfer reinsurance agreements as fair value hedges when the hedging instrument is highly effective in offsetting the risk of changes in the fair value of the hedged item. Allstate Financial designates certain of its foreign currency swap contracts as cash flow hedges when the hedging instrument is highly effective in offsetting the exposure of variations in cash flows for the hedged risk that could affect net income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged item affects net income.

The notional amounts specified in the contracts are used to calculate the exchange of contractual payments under the agreements and are generally not representative of the potential for gain or loss on these agreements. However, the notional amounts specified in credit default swaps where the Company has sold credit protection represent the maximum amount of potential loss, assuming no recoveries.

Fair value, which is equal to the carrying value, is the estimated amount that the Company would receive or pay to terminate the derivative contracts at the reporting date. The carrying value amounts for OTC derivatives are further adjusted for the effects, if any, of enforceable master netting agreements and are presented on a net basis, by counterparty agreement, in the Condensed Consolidated Statements of Financial Position. For certain exchange traded and cleared derivatives, margin deposits are required as well as daily cash settlements of margin accounts. As of June 30, 2016, the Company pledged $14 million of cash in the form of margin deposits.

For those derivatives which qualify for fair value hedge accounting, net income includes the changes in the fair value of both the derivative instrument and the hedged risk, and therefore reflects any hedging ineffectiveness. For cash flow hedges, gains and losses are amortized from accumulated other comprehensive income and are reported in net income in the same period the forecasted transactions being hedged impact net income.

Non-hedge accounting is generally used for “portfolio” level hedging strategies where the terms of the individual hedged items do not meet the strict homogeneity requirements to permit the application of hedge accounting. For non-hedge derivatives, net income includes changes in fair value and accrued periodic settlements, when applicable. With the exception of non-hedge derivatives used for asset replication and non-hedge embedded derivatives, all of the Company’s derivatives are evaluated for their ongoing effectiveness as either accounting hedge or non-hedge derivative financial instruments on at least a quarterly basis.

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Condensed Consolidated Statement of Financial Position as of June 30, 2016.



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	30	n/a	$	2		$	2	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	24		n/a	—			—		—
Equity and index contracts
Options	Other investments	—		4,106	66			66		—
Financial futures contracts	Other assets	—		807	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	399		n/a	(17		)	8		(25		)
Credit default contracts
Credit default swaps – buying protection	Other investments	30		n/a	—			—		—
Credit default swaps – selling protection	Other investments	80		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		536		4,913	53			78		(25		)
Total asset derivatives		$	566	4,913	$	55		$	80	$	(25	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	3		$	3	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	51		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		6,350	(21		)	—		(21		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	434		n/a	(1		)	7		(8		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	429		n/a	(40		)	—		(40		)
Guaranteed withdrawal benefits	Contractholder funds	304		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,754		n/a	(250		)	—		(250		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	248		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	165		n/a	(7		)	1		(8		)
Subtotal		3,555		6,350	(336		)	9		(345		)
Total liability derivatives		3,574		6,350	(333		)	$	12	$	(345	)
Total derivatives		$	4,140	11,263	$	(278	)

__________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)

The following table provides a summary of the volume and fair value positions of derivative instruments as well as their reporting location in the Consolidated Statement of Financial Position as of December 31, 2015.



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	45	n/a	$	6		$	6	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	42		n/a	—			—		—
Equity and index contracts
Options and warrants ⁽²⁾	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		1,897	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	185		n/a	1			2		(1		)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	1,000		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	112		n/a	4			5		(1		)
Credit default swaps – selling protection	Other investments	150		n/a	2			2		—
Other contracts
Other contracts	Other investments	31		n/a	1			1		—
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,523		5,627	55			57		(2		)
Total asset derivatives		$	1,568	5,627	$	61		$	63	$	(2	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	4		$	4	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	72		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		4,406	(7		)	—		(7		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	361		n/a	(12		)	1		(13		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	481		n/a	(38		)	—		(38		)
Guaranteed withdrawal benefits	Contractholder funds	332		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,781		n/a	(247		)	—		(247		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	88		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(8		)	—		(8		)
Subtotal		3,390		4,406	(327		)	2		(329		)
Total liability derivatives		3,409		4,406	(323		)	$	6	$	(329	)
Total derivatives		$	4,977	10,033	$	(262	)

__________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


⁽²⁾	In addition to the number of contracts presented in the table, the Company held 220 stock rights and warrants. Stock rights and warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter-party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged			Net amount
June 30, 2016
Asset derivatives	$	22		$	(37	)	$	19		$	4		$	—		$	4
Liability derivatives	(45		)	37			(4		)	(12		)	9			(3		)

December 31, 2015
Asset derivatives	$	21		$	(8	)	$	(5	)	$	8		$	(4	)	$	4
Liability derivatives	(25		)	8			(1		)	(18		)	9			(9		)

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships. Amortization of net gains from accumulated other comprehensive income related to cash flow hedges is expected to be a gain of $1 million during the next twelve months. There was no hedge ineffectiveness reported in realized gains and losses for the three months and six months ended June 30, 2016 or 2015.



($ in millions)	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016			2015
Gain (loss) recognized in OCI on derivatives during the period	$	1	$	(1	)	$	(1	)	$	7
Gain recognized in OCI on derivatives during the term of the hedging relationship	2		3			2			3
Loss reclassified from AOCI into income (net investment income)	—		(1		)	—			(1		)
Gain reclassified from AOCI into income (realized capital gains and losses)	3		—			3			3

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Condensed Consolidated Statements of Operations. For the three months and six months ended June 30, 2016 and 2015, the Company had no derivatives used in fair value hedging relationships.



($ in millions)	Realized capital gains and losses			Life and annuity contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
Three months ended June 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(5		)	—			2			4			1
Embedded derivative financial instruments	—			14			(5		)	—			9
Foreign currency contracts	6			—			—			(16		)	(10		)
Credit default contracts	(1		)	—			—			—			(1		)
Total	$	(1	)	$	14		$	(3	)	$	(12	)	$	(2	)

Six months ended June 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(5		)	—			(5		)	4			(6		)
Embedded derivative financial instruments	—			(2		)	(3		)	—			(5		)
Foreign currency contracts	1			—			—			(21		)	(20		)
Credit default contracts	(5		)	—			—			—			(5		)
Total	$	(10	)	$	(2	)	$	(8	)	$	(17	)	$	(37	)

Three months ended June 30, 2015
Interest rate contracts	$	2		$	—		$	—		$	—		$	2
Equity and index contracts	—			—			—			1			1
Embedded derivative financial instruments	—			—			11			—			11
Foreign currency contracts	3			—			—			12			15
Other contracts	—			—			1			—			1
Total	$	5		$	—		$	12		$	13		$	30

Six months ended June 30, 2015
Interest rate contracts	$	2		$	—		$	—		$	—		$	2
Equity and index contracts	(5		)	—			4			4			3
Embedded derivative financial instruments	—			—			8			—			8
Foreign currency contracts	(20		)	—			—			3			(17		)
Other contracts	—			—			1			—			1
Total	$	(23	)	$	—		$	13		$	7		$	(3	)

The Company manages its exposure to credit risk by utilizing highly rated counterparties, establishing risk control limits, executing legally enforceable master netting agreements (“MNAs”) and obtaining collateral where appropriate. The Company uses MNAs for OTC derivative transactions that permit either party to net payments due for transactions and collateral is either pledged or obtained when certain predetermined exposure limits are exceeded. As of June 30, 2016, counterparties pledged $6 million in cash to the Company, and the Company pledged $30 million in cash and securities to counterparties which includes $7 million of collateral posted under MNAs for contracts containing credit-risk-contingent provisions that are in a liability position and $23 million of collateral posted under MNAs for contracts without credit-risk-contingent features. The Company has not incurred any losses on derivative financial instruments due to counterparty nonperformance. Other derivatives, including futures and certain option contracts, are traded on organized exchanges which require margin deposits and guarantee the execution of trades, thereby mitigating any potential credit risk.

Counterparty credit exposure represents the Company’s potential loss if all of the counterparties concurrently fail to perform under the contractual terms of the contracts and all collateral, if any, becomes worthless. This exposure is measured by the fair value of OTC derivative contracts with a positive fair value at the reporting date reduced by the effect, if any, of legally enforceable master netting agreements.

The following table summarizes the counterparty credit exposure by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	June 30, 2016							December 31, 2015
Rating ⁽¹⁾	Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾
AA-	2	$	67	$	1	$	1	—	$	—	$	—	$	—
A+	1	207		5		2		1	82		5		—
A	3	58		2		—		5	375		9		6
A-	—	—		—		—		1	41		3		—
BBB+	2	7		—		—		2	49		—		1
Total	8	$	339	$	8	$	3	9	$	547	$	17	$	7

_______________


⁽¹⁾	Rating is the lower of S&P or Moody’s ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

Market risk is the risk that the Company will incur losses due to adverse changes in market rates and prices. Market risk exists for all of the derivative financial instruments the Company currently holds, as these instruments may become less valuable due to adverse changes in market conditions. To limit this risk, the Company’s senior management has established risk control limits. In addition, changes in fair value of the derivative financial instruments that the Company uses for risk management purposes are generally offset by the change in the fair value or cash flows of the hedged risk component of the related assets, liabilities or forecasted transactions.

Certain of the Company’s derivative instruments contain credit-risk-contingent termination events, cross-default provisions and credit support annex agreements. Credit-risk-contingent termination events allow the counterparties to terminate the derivative agreement or a specific trade on certain dates if AIC’s, ALIC’s or Allstate Life Insurance Company of New York’s (“ALNY”) financial strength credit ratings by Moody’s or S&P fall below a certain level. Credit-risk-contingent cross-default provisions allow the counterparties to terminate the derivative agreement if the Company defaults by pre-determined threshold amounts on certain debt instruments. Credit-risk-contingent credit support annex agreements specify the amount of collateral the Company must post to counterparties based on AIC’s, ALIC’s or ALNY’s financial strength credit ratings by Moody’s or S&P, or in the event AIC, ALIC or ALNY are no longer rated by either Moody’s or S&P.

The following summarizes the fair value of derivative instruments with termination, cross-default or collateral credit-risk-contingent features that are in a liability position, as well as the fair value of assets and collateral that are netted against the liability in accordance with provisions within legally enforceable MNAs.



($ in millions)	June 30, 2016			December 31, 2015
Gross liability fair value of contracts containing credit-risk-contingent features	$	25		$	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(14		)	(3		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	(13		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	4		$	5

Credit derivatives - selling protection

Free-standing credit default swaps (“CDS”) are utilized for selling credit protection against a specified credit event. A credit default swap is a derivative instrument, representing an agreement between two parties to exchange the credit risk of a specified entity (or a group of entities), or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. In selling protection, CDS are used to replicate fixed income securities and to complement the cash market when credit exposure to certain issuers is not available or when the derivative alternative is less expensive than the cash market alternative. CDS typically have a five-year term.

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
June 30, 2016
Single name
Corporate debt	$	20	$	10	$	35	$	—	$	65	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		19		50		10		80		1
Total	$	21	$	29	$	185	$	10	$	245	$	(6	)

December 31, 2015
Single name
Corporate debt	$	20	$	10	$	45	$	—	$	75	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		20		52		7		80		1
Total	$	21	$	30	$	197	$	7	$	255	$	(6	)

In selling protection with CDS, the Company sells credit protection on an identified single name, a basket of names in a first-to-default (“FTD”) structure or credit derivative index (“CDX”) that is generally investment grade, and in return receives periodic premiums through expiration or termination of the agreement. With single name CDS, this premium or credit spread generally corresponds to the difference between the yield on the reference entity’s public fixed maturity cash instruments and swap rates at the time the agreement is executed. With a FTD basket, because of the additional credit risk inherent in a basket of named reference entities, the premium generally corresponds to a high proportion of the sum of the credit spreads of the names in the basket and the correlation between the names. CDX is utilized to take a position on multiple (generally 125) reference entities. Credit events are typically defined as bankruptcy, failure to pay, or restructuring, depending on the nature of the reference entities. If a credit event occurs, the Company settles with the counterparty, either through physical settlement or cash settlement. In a physical settlement, a reference asset is delivered by the buyer of protection to the Company, in exchange for cash payment at par, whereas in a cash settlement, the Company pays the difference between par and the prescribed value of the reference asset. When a credit event occurs in a single name or FTD basket (for FTD, the first credit event occurring for any one name in the basket), the contract terminates at the time of settlement. For CDX, the reference entity’s name incurring the credit event is removed from the index while the contract continues until expiration. The maximum payout on a CDS is the contract notional amount. A physical settlement may afford the Company with recovery rights as the new owner of the asset.

The Company monitors risk associated with credit derivatives through individual name credit limits at both a credit derivative and a combined cash instrument/credit derivative level. The ratings of individual names for which protection has been sold are also monitored.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

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-Name Accounting Standards Codification
-Topic 815
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-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

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-Topic 815
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

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-Section 50
-Paragraph 1
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+ Details

Guarantees and Contingent Liabilities	6 Months Ended
Guarantees and Contingent Liabilities	Jun. 30, 2016
Guarantees and Contingent Liabilities
Guarantees and Contingent Liabilities	Guarantees and Contingent Liabilities Shared markets and state facility assessments The Company is required to participate in assigned risk plans, reinsurance facilities and joint underwriting associations in various states that provide insurance coverage to individuals or entities that otherwise are unable to purchase such coverage from private insurers. Underwriting results related to these arrangements, which tend to be adverse, have been immaterial to the Company’s results of operations. Because of the Company’s participation, it may be exposed to losses that surpass the capitalization of these facilities and/or assessments from these facilities. Guarantees The Company provides residual value guarantees on Company leased automobiles. If all outstanding leases were terminated effective June 30, 2016, the Company’s maximum obligation pursuant to these guarantees, assuming the automobiles have no residual value, would be $46 million as of June 30, 2016. The remaining term of each residual value guarantee is equal to the term of the underlying lease that ranges from less than one year to four years. Historically, the Company has not made any material payments pursuant to these guarantees. In the normal course of business, the Company provides standard indemnifications to contractual counterparties in connection with numerous transactions, including acquisitions and divestitures. The types of indemnifications typically provided include indemnifications for breaches of representations and warranties, taxes and certain other liabilities, such as third party lawsuits. The indemnification clauses are often standard contractual terms and are entered into in the normal course of business based on an assessment that the risk of loss would be remote. The terms of the indemnifications vary in duration and nature. In many cases, the maximum obligation is not explicitly stated and the contingencies triggering the obligation to indemnify have not occurred and are not expected to occur. Consequently, the maximum amount of the obligation under such indemnifications is not determinable. Historically, the Company has not made any material payments pursuant to these obligations. Related to the sale of LBL on April 1, 2014, ALIC agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of ALIC, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding ALIC’s maximum obligation. Management does not believe these indemnifications will have a material effect on results of operations, cash flows or financial position of the Company. Related to the disposal through reinsurance of substantially all of Allstate Financial’s variable annuity business to Prudential in 2006, the Company and its consolidated subsidiaries, ALIC and ALNY, have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of ALIC and ALNY and liabilities specifically excluded from the transaction) that ALIC and ALNY have agreed to retain. In addition, the Company, ALIC and ALNY will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of ALIC, ALNY and their agents, including certain liabilities arising from ALIC’s and ALNY’s provision of transition services. The reinsurance agreements contain no limitations or indemnifications with regard to insurance risk transfer, and transferred all of the future risks and responsibilities for performance on the underlying variable annuity contracts to Prudential, including those related to benefit guarantees. Management does not believe this agreement will have a material effect on results of operations, cash flows or financial position of the Company. The aggregate liability balance related to all guarantees was not material as of June 30, 2016. Regulation and Compliance The Company is subject to extensive laws, regulations, administrative directives, and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to influence and restrict premium rates, require premium refunds to policyholders, require reinstatement of terminated policies, restrict the ability of insurers to cancel or non-renew policies, require insurers to continue to write new policies or limit their ability to write new policies, limit insurers’ ability to change coverage terms or to impose underwriting standards, impose additional regulations regarding agent and broker compensation, regulate the nature of and amount of investments, impose fines and penalties for unintended errors or mistakes, and otherwise expand overall regulation of insurance products and the insurance industry. In addition, the Company is subject to laws and regulations administered and enforced by federal agencies and other organizations, including but not limited to the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Department of Labor, the U.S. Equal Employment Opportunity Commission, and the U.S. Department of Justice. The Company has established procedures and policies to facilitate compliance with laws and regulations, to foster prudent business operations, and to support financial reporting. The Company routinely reviews its practices to validate compliance with laws and regulations and with internal procedures and policies. As a result of these reviews, from time to time the Company may decide to modify some of its procedures and policies. Such modifications, and the reviews that led to them, may be accompanied by payments being made and costs being incurred. The ultimate changes and eventual effects of these actions on the Company’s business, if any, are uncertain. Legal and regulatory proceedings and inquiries The Company and certain subsidiaries are involved in a number of lawsuits, regulatory inquiries, and other legal proceedings arising out of various aspects of its business. Background These matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including the underlying facts of each matter; novel legal issues; variations between jurisdictions in which matters are being litigated, heard, or investigated; changes in assigned judges; differences or developments in applicable laws and judicial interpretations; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise; adjustments with respect to anticipated trial schedules and other proceedings; developments in similar actions against other companies; the fact that some of the lawsuits are putative class actions in which a class has not been certified and in which the purported class may not be clearly defined; the fact that some of the lawsuits involve multi-state class actions in which the applicable law(s) for the claims at issue is in dispute and therefore unclear; and the current challenging legal environment faced by corporations and insurance companies. The outcome of these matters may be affected by decisions, verdicts, and settlements, and the timing of such decisions, verdicts, and settlements, in other individual and class action lawsuits that involve the Company, other insurers, or other entities and by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities. The outcome may also be affected by future state or federal legislation, the timing or substance of which cannot be predicted. In the lawsuits, plaintiffs seek a variety of remedies which may include equitable relief in the form of injunctive and other remedies and monetary relief in the form of contractual and extra-contractual damages. In some cases, the monetary damages sought may include punitive or treble damages. Often specific information about the relief sought, such as the amount of damages, is not available because plaintiffs have not requested specific relief in their pleadings. When specific monetary demands are made, they are often set just below a state court jurisdictional limit in order to seek the maximum amount available in state court, regardless of the specifics of the case, while still avoiding the risk of removal to federal court. In Allstate’s experience, monetary demands in pleadings bear little relation to the ultimate loss, if any, to the Company. In connection with regulatory examinations and proceedings, government authorities may seek various forms of relief, including penalties, restitution, and changes in business practices. The Company may not be advised of the nature and extent of relief sought until the final stages of the examination or proceeding. Accrual and disclosure policy The Company reviews its lawsuits, regulatory inquiries, and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions. The Company establishes accruals for such matters at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company does not establish accruals for such matters when the Company does not believe both that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals. The Company does not include potential recoveries in its estimates of reasonably possible or probable losses. Legal fees are expensed as incurred. The Company continues to monitor its lawsuits, regulatory inquiries, and other legal proceedings for further developments that would make the loss contingency both probable and estimable, and accordingly accruable, or that could affect the amount of accruals that have been previously established. There may continue to be exposure to loss in excess of any amount accrued. Disclosure of the nature and amount of an accrual is made when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the amount of accrual. When the Company assesses it is reasonably possible or probable that a loss has been incurred, it discloses the matter. When it is possible to estimate the reasonably possible loss or range of loss above the amount accrued, if any, for the matters disclosed, that estimate is aggregated and disclosed. Disclosure is not required when an estimate of the reasonably possible loss or range of loss cannot be made. For certain of the matters described below in the “Claims related proceedings” and “Other proceedings” subsections, the Company is able to estimate the reasonably possible loss or range of loss above the amount accrued, if any. In determining whether it is possible to estimate the reasonably possible loss or range of loss, the Company reviews and evaluates the disclosed matters, in conjunction with counsel, in light of potentially relevant factual and legal developments. These developments may include information learned through the discovery process, rulings on dispositive motions, settlement discussions, information obtained from other sources, experience from managing these and other matters, and other rulings by courts, arbitrators or others. When the Company possesses sufficient appropriate information to develop an estimate of the reasonably possible loss or range of loss above the amount accrued, if any, that estimate is aggregated and disclosed below. There may be other disclosed matters for which a loss is probable or reasonably possible but such an estimate is not possible. Disclosure of the estimate of the reasonably possible loss or range of loss above the amount accrued, if any, for any individual matter would only be considered when there have been sufficient legal and factual developments such that the Company’s ability to resolve the matter would not be impaired by the disclosure of the individual estimate. The Company currently estimates that the aggregate range of reasonably possible loss in excess of the amount accrued, if any, for the disclosed matters where such an estimate is possible is zero to $875 million, pre-tax. This disclosure is not an indication of expected loss, if any. Under accounting guidance, an event is “reasonably possible” if “the chance of the future event or events occurring is more than remote but less than likely” and an event is “remote” if “the chance of the future event or events occurring is slight.” This estimate is based upon currently available information and is subject to significant judgment and a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimate will change from time to time, and actual results may vary significantly from the current estimate. The estimate does not include matters or losses for which an estimate is not possible. Therefore, this estimate represents an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum possible loss exposure. Information is provided below regarding the nature of all of the disclosed matters and, where specified, the amount, if any, of plaintiff claims associated with these loss contingencies. Due to the complexity and scope of the matters disclosed in the “Claims related proceedings” and “Other proceedings” subsections below and the many uncertainties that exist, the ultimate outcome of these matters cannot be predicted. In the event of an unfavorable outcome in one or more of these matters, the ultimate liability may be in excess of amounts currently accrued, if any, and may be material to the Company’s operating results or cash flows for a particular quarterly or annual period. However, based on information currently known to it, management believes that the ultimate outcome of all matters described below, as they are resolved over time, is not likely to have a material effect on the financial position of the Company. Claims related proceedings The Company is litigating two class action cases in California in which the plaintiffs allege off-the-clock wage and hour claims. Plaintiffs in both cases seek recovery of unpaid compensation, liquidated damages, penalties, and attorneys’ fees and costs. The first case is Christopher Williams, et al. v. Allstate Insurance Company. The Williams case is pending in Los Angeles Superior Court and was filed in December 2007. The case involves two classes. The first class includes auto field physical damage adjusters employed in the state of California from January 1, 2005 to the date of final judgment, to the extent the Company failed to pay for off-the-clock work to those adjusters who performed certain duties prior to their first assignments. The other class includes all non-exempt employees in California from December 19, 2006 until June 2011 who received pay statements from Allstate which allegedly did not comply with California law. On April 13, 2016, the court granted the Company’s motion to decertify both classes; both classes are thus dissolved unless and until the appellate court orders the classes recertified. On May 17, 2016, plaintiffs filed their notice of appeal. The second case is Jack Jimenez, et al. v. Allstate Insurance Company. Jimenez was filed in the U.S. District Court for the Central District of California in September 2010. The plaintiffs allege that they worked off-the-clock; they also allege other California Labor Code violations resulting from purported unpaid overtime. In April 2012, the court certified a class that includes all adjusters in the state of California, except auto field adjusters, from September 29, 2006 to final judgment. Allstate appealed the court’s decision to certify the class, first to the Ninth Circuit Court of Appeals and then to the U.S. Supreme Court. On June 15, 2015, the U.S. Supreme Court denied Allstate’s petition for a writ of certiorari. The case was scheduled for trial on September 27, 2016. On May 4, 2016, the court vacated that trial date in part because the court had not approved a trial plan. In addition to the California class actions, the case of Maria Victoria Perez and Kaela Brown, et al. v. Allstate Insurance Company was filed in the U.S. District Court for the Eastern District of New York. Plaintiffs allege that no-fault claim adjusters have been improperly classified as exempt employees under New York Labor Law and the Fair Labor Standards Act. The case was filed in April 2011, and the plaintiffs are seeking unpaid wages, liquidated damages, injunctive relief, compensatory and punitive damages, and attorneys’ fees. On September 16, 2014, the court certified a class of no-fault adjusters under New York Labor Law and refused to decertify a Fair Labor Standards Act class of no-fault adjusters. Notice to the class was issued in December 2015 and no opt outs were received. In the Company’s judgment, a loss is not probable in these three cases. The Florida personal injury protection statute permits insurers to pay personal injury protection benefits for reasonable medical expenses based on certain benefit reimbursement limitations which are authorized by the personal injury protection statute (generally referred to as “fee schedules”) resulting from automobile accidents. The Company is involved in litigation challenging whether the Company’s personal injury protection policies include sufficient language providing notice of the Company’s election to apply the fee schedules. The Company is litigating one class action, Randy Rosenberg, et al. v. Allstate Fire & Casualty Insurance Company, Allstate Insurance Company, and Allstate Property & Casualty Insurance Company, in the U.S. District Court for the Northern District of Illinois. This case is brought on behalf of health care providers and insureds who submitted claims for no-fault benefits under personal injury protection policies which were in effect from 2008 through 2012 and were reimbursed based on the fee schedules. They seek a declaratory judgment that Allstate could not properly apply the fee schedules and seek damages for the difference between what they allege are the reasonable medical expenses payable under the personal injury protection coverage and the fee schedule amounts Allstate actually paid. They also seek recovery of attorneys’ fees and costs pursuant to Florida statutes. This case has been stayed by the Illinois federal court pending the outcome of several Florida state court appeals and a decision on this issue by the Florida Supreme Court. This fee schedule issue has also been the subject of thousands of individual lawsuits filed against Allstate in Florida. On March 18, 2015, in Stand-Up MRI of Tallahassee, et al. v. Allstate Fire & Casualty Insurance Company, the District Court of Appeal for the First District unanimously reversed a summary judgment that had been entered against Allstate. The court held that Allstate’s language was clear and unambiguous and provided adequate notice of its intent to use the fee schedules. The plaintiff’s appeal to the Florida Supreme Court was stayed. On August 19, 2015, in Orthopedic Specialists, et al. v. Allstate Insurance Company, the District Court of Appeal for the Fourth District issued a divided decision (three separate opinions, two against Allstate and one dissenting opinion deeming Allstate’s language sufficient), holding that Allstate’s language was not sufficient. Allstate’s motion for rehearing was denied. The court certified that its decision is in direct conflict with the District Court of Appeal for the First District’s decision. Allstate’s notice to the Florida Supreme Court seeking to invoke the discretionary jurisdiction of that court was accepted on January 20, 2016. The parties have completed the originally scheduled briefing. On May 2, 2016, the plaintiff filed a motion requesting leave to file an additional brief, which the court granted. The Florida Supreme Court set this matter for oral argument on September 1, 2016. The Florida Medical Association was granted leave to file an amicus brief in support of the plaintiff. On February 3, 2016, in Florida Wellness & Rehabilitation Center of Hialeah, et al. v. Allstate Fire & Casualty Insurance Company, the District Court of Appeal for the Third District heard oral argument. On July 13, 2016, the court unanimously affirmed summary judgment for Allstate and upheld the validity of Allstate’s personal injury protection fee schedule language. The court also certified a conflict with the District Court of Appeal for the Fourth District’s decision in Orthopedic Specialists. On March 30, 2016, in Markley Chiropractic & Acupuncture LLC, et al. v. Allstate Indemnity Insurance Company, the District Court of Appeal for the Second District unanimously reversed a summary judgment that had been entered against Allstate. The court held that Allstate’s language gave legally sufficient notice of its election to use the fee schedules. The plaintiff moved for rehearing and Allstate responded. On June 15, 2016, the court denied the plaintiff’s motion. On June 20, 2016, the plaintiff filed a notice with the Florida Supreme Court seeking to invoke the discretionary jurisdiction of the court. On June 24, 2016, the Florida Supreme Court issued an order staying the entire case pending the disposition of the Orthopedic Specialists case. In the Company’s judgment, a loss is not probable in any of these cases. Other proceedings The Company is defending certain matters in the U.S. District Court for the Eastern District of Pennsylvania relating to the Company’s agency program reorganization announced in 1999. The principal focus in these matters has related to a release of claims signed by the vast majority of the former agents whose employment contracts were terminated in the reorganization program. The court recently entered a schedule for determining the merits of certain claims asserted in the matters described below, with the release issue to be addressed in unspecified future proceedings. Romero I: In 2001, approximately 32 former employee agents, on behalf of a putative class of approximately 6,300 former employee agents, filed a putative class action alleging claims for age discrimination under the Age Discrimination in Employment Act (“ADEA”), interference with benefits under ERISA, breach of contract, and breach of fiduciary duty. Plaintiffs also assert a claim for a declaratory judgment that the release of claims constitutes unlawful retaliation and should be set aside. Plaintiffs seek broad but unspecified “make whole relief,” including back pay, compensatory and punitive damages, liquidated damages, lost investment capital, attorneys’ fees and costs, and equitable relief, including reinstatement to employee agent status with all attendant benefits. Romero II: A putative nationwide class action was also filed in 2001 by former employee agents alleging various violations of ERISA (“Romero II”). This action has been consolidated with Romero I. The Romero II plaintiffs, most of whom are also plaintiffs in Romero I, are challenging certain amendments to the Agents Pension Plan and seek to have service as exclusive agent independent contractors count toward eligibility for benefits under the Agents Pension Plan. Plaintiffs seek broad but unspecified “make whole” or other equitable relief, including loss of benefits as a result of their conversion to exclusive agent independent contractor status or retirement from the Company between November 1, 1999 and December 31, 2000. They also seek repeal of the challenged amendments to the Agents Pension Plan with all attendant benefits revised and recalculated for thousands of former employee agents, and attorneys’ fees and costs. The court granted the Company’s initial motion to dismiss the complaint. The Third Circuit Court of Appeals reversed that dismissal and remanded for further proceedings. Romero I and II consolidated proceedings: In 2004, the court ruled that the release was voidable and certified classes of agents, including a mandatory class of agents who had signed the release, for purposes of effectuating the court’s declaratory judgment that the release was voidable. In 2007, the court vacated its ruling and granted the Company’s motion for summary judgment on all claims. Plaintiffs appealed and in July 2009, the U.S. Court of Appeals for the Third Circuit vacated the trial court’s entry of summary judgment in the Company’s favor, remanded the case to the trial court for additional discovery, and instructed the trial court to address the validity of the release after additional discovery. Following the completion of discovery limited to the validity of the release, the parties filed cross motions for summary judgment with respect to the validity of the release. On February 28, 2014, the trial court denied plaintiffs’ and the Company’s motions for summary judgment, concluding that the question of whether the releases were knowingly and voluntarily signed under a totality of circumstances test raised disputed issues of fact to be resolved at trial. Among other things, the court also held that the release, if valid, would bar all claims in Romero I and II. On May 23, 2014, plaintiffs moved to certify a class as to certain issues relating to the validity of the release. The court denied plaintiffs’ class certification motion on October 6, 2014, stating, among other things, that individual factors and circumstances must be considered to determine whether each release signer entered into the release knowingly and voluntarily. The court entered an order on December 11, 2014, (a) stating that the court’s October 6, 2014 denial of class certification as to release-related issues did not resolve whether issues relating to the merits of plaintiffs’ claims may be subject to class certification at a later time, and (b) holding that the court’s October 6, 2014 order restarted the running of the statute of limitation for any former employee agent who wished to challenge the validity of the release. In an order entered January 7, 2015, the court denied reconsideration of its December 11, 2014 order and clarified that all statutes of limitations to challenge the release would resume running on March 2, 2015. Since the Court’s January 7, 2015 order, a total of 459 additional individual plaintiffs have filed separate lawsuits similar to Romero I or sought to intervene in the Romero I action. Trial proceedings commenced to determine the question of whether the releases of the original named plaintiffs in Romero I and II were knowingly and voluntarily signed. Additionally, plaintiffs asserted two equitable defenses to the release which were to be determined by the court and not the jury. As to the first trial proceeding involving ten plaintiffs, the jury reached verdicts on June 17, 2015 finding that two plaintiffs signed their releases knowingly and voluntarily and eight plaintiffs did not sign their releases knowingly and voluntarily. On January 28, 2016, the court entered its opinion and judgment finding in Allstate’s favor as to all ten plaintiffs on the two equitable defenses to the release. The trial result is not yet final and may be subject to further proceedings. The remaining two trials for the original Romero I and II plaintiffs were scheduled to commence in the fourth quarter of 2015; however, the order setting these trials was subsequently vacated. On February 1, 2016, these cases were reassigned to a new judge who initially entered orders addressing pending motions for reconsideration of the dismissal of plaintiffs’ state law claims, but then vacated those orders. On April 12, 2016, these cases were again reassigned to a new judge. On May 2, 2016, the new judge entered an order vacating the setting of additional release trials, consolidating all of the original and intervening plaintiffs’ claims, and granting leave to file a Consolidated Amended Complaint by May 20, 2016. The court entered a second order on May 2, 2016, scheduling deadlines for completion of discovery and filing of summary judgment motions on the merits of plaintiffs’ ERISA and ADEA claims, and setting a non-jury ERISA trial to occur in December 2016. The court’s order also sets deadlines for completion of discovery and summary judgment motions with regard to the remaining claims and defenses by the first quarter of 2017, with a jury trial on those claims and defenses to occur in May 2017. On May 4, 2016, the court entered an order denying Allstate’s post-trial motion for judgment as a matter of law with respect to the jury’s June 17, 2015 verdicts in favor of eight plaintiffs on the issue whether they knowingly and voluntarily signed their releases. On May 20, 2016, a Consolidated Amended Complaint was filed on behalf of 499 plaintiffs, most of whom had previously filed separate lawsuits or intervened in Romero I. Allstate filed a partial motion to dismiss the Consolidated Amended Complaint, which the court granted in part and denied in part on July 6, 2016. Among other things, the court denied without prejudice Allstate’s motion to dismiss the state law claims, granted dismissal of plaintiffs’ retaliation claims under the ADEA and ERISA, and granted dismissal of certain plaintiffs’ ERISA § 510 claims as untimely. Discovery is proceeding. Based on the trial court’s February 28, 2014 order in Romero I and II, if the validity of the release is decided in favor of the Company for any plaintiff, that would preclude any damages or other relief being awarded to that plaintiff. The final resolution of these matters is subject to various uncertainties and complexities including how trials, post trial motions, possible appeals with respect to the validity of the release, and any rulings on the merits will be resolved. In the Company’s judgment, a loss is not probable. Asbestos and environmental Allstate’s reserves for asbestos claims were $890 million and $960 million, net of reinsurance recoverables of $443 million and $458 million, as of June 30, 2016 and December 31, 2015, respectively. Reserves for environmental claims were $173 million and $179 million, net of reinsurance recoverables of $42 million and $43 million, as of June 30, 2016 and December 31, 2015, respectively. Approximately 55% and 57% of the total net asbestos and environmental reserves as of June 30, 2016 and December 31, 2015, respectively, were for incurred but not reported estimated losses. Management believes its net loss reserves for asbestos, environmental and other discontinued lines exposures are appropriately established based on available facts, technology, laws and regulations. However, establishing net loss reserves for asbestos, environmental and other discontinued lines claims is subject to uncertainties that are much greater than those presented by other types of claims. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimate. Among the complications are lack of historical data, long reporting delays, uncertainty as to the number and identity of insureds with potential exposure and unresolved legal issues regarding policy coverage; unresolved legal issues regarding the determination, availability and timing of exhaustion of policy limits; plaintiffs’ evolving and expanding theories of liability; availability and collectability of recoveries from reinsurance; retrospectively determined premiums and other contractual agreements; estimates of the extent and timing of any contractual liability; the impact of bankruptcy protection sought by various asbestos producers and other asbestos defendants; and other uncertainties. There are also complex legal issues concerning the interpretation of various insurance policy provisions and whether those losses are covered, or were ever intended to be covered, and could be recoverable through retrospectively determined premium, reinsurance or other contractual agreements. Courts have reached different and sometimes inconsistent conclusions as to when losses are deemed to have occurred and which policies provide coverage; what types of losses are covered; whether there is an insurer obligation to defend; how policy limits are determined; how policy exclusions and conditions are applied and interpreted; and whether clean-up costs represent insured property damage. Further, insurers and claims administrators acting on behalf of insurers are increasingly pursuing evolving and expanding theories of reinsurance coverage for asbestos and environmental losses. Adjudication of reinsurance coverage is predominately decided in confidential arbitration proceedings which may have limited precedential or predictive value further complicating management’s ability to estimate probable loss for reinsured asbestos and environmental claims. Management believes these issues are not likely to be resolved in the near future, and the ultimate costs may vary materially from the amounts currently recorded resulting in material changes in loss reserves. In addition, while the Company believes that improved actuarial techniques and databases have assisted in its ability to estimate asbestos, environmental, and other discontinued lines net loss reserves, these refinements may subsequently prove to be inadequate indicators of the extent of probable losses. Due to the uncertainties and factors described above, management believes it is not practicable to develop a meaningful range for any such additional net loss reserves that may be required.

General (Policies)

6 Months Ended

Jun. 30, 2016

General [Abstract]

New Accounting Pronouncements

Adopted accounting standards

Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period

In June 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which clarifies that a performance target that affects vesting and could be achieved after the requisite service period should be treated as a performance condition and not reflected in estimating the grant-date fair value of the award. Compensation costs should reflect the amount attributable to the periods for which the requisite service has been rendered. Total compensation expense recognized during and after the requisite service period (which may differ from the vesting period) should reflect the number of awards that are expected to vest and should be adjusted to reflect the number of awards that ultimately vest. The Company’s existing accounting policy for performance targets that affect the vesting of share-based payment awards is consistent with the new guidance and as such, the adoption as of January 1, 2016 had no impact on the Company’s results of operations or financial position.

Amendments to the Consolidation Analysis

In February 2015, the FASB issued guidance affecting the consolidation evaluation for limited partnerships and similar entities, fees paid to a decision maker or service provider, and variable interests in a variable interest entity held by related parties of the reporting enterprise. The adoption of this guidance as of January 1, 2016 did not have a material impact on the Company’s results of operations or financial position.

Pending accounting standards

Revenue from Contracts with Customers

In May 2014, the FASB issued guidance which revises the criteria for revenue recognition. Insurance contracts are excluded from the scope of the new guidance. Under the guidance, the transaction price is attributed to underlying performance obligations in the contract and revenue is recognized as the entity satisfies the performance obligations and transfers control of a good or service to the customer. Incremental costs of obtaining a contract may be capitalized to the extent the entity expects to recover those costs. The guidance is effective for reporting periods beginning after December 15, 2017 and is to be applied retrospectively. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Disclosures about Short-Duration Contracts

In May 2015, the FASB issued guidance requiring expanded disclosures for insurance entities that issue short-duration contracts. The expanded disclosures are designed to provide additional insight into an insurance entity’s significant estimates made in measuring the liability for unpaid claims and claim adjustment expenses. The disclosures include information about incurred and paid claims development by accident year, on a net basis after reinsurance, for the number of years claims incurred typically remain outstanding, not to exceed ten years. Each period presented in the disclosure about claims development that precedes the current reporting period is considered required supplementary information. The expanded disclosures also include information about significant changes in methodologies and assumptions, a reconciliation of incurred and paid claims development to the carrying amount of the liability for unpaid claims and claim adjustment expenses, the total amount of incurred but not reported liabilities plus expected development, the incidence of claims including the methodology used to determine the incidence of claims, and claim duration. The guidance is effective for annual periods beginning after December 15, 2015, and interim periods beginning after December 15, 2016, and is to be applied retrospectively. The new guidance affects disclosures only and will have no impact on the Company’s results of operations or financial position.

Recognition and Measurement of Financial Assets and Financial Liabilities

In January 2016, the FASB issued guidance requiring equity investments, including equity securities and limited partnership interests, that are not accounted for under the equity method of accounting or result in consolidation to be measured at fair value with changes in fair value recognized in net income. Equity investments without readily determinable fair values may be measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. When a qualitative assessment of equity investments without readily determinable fair values indicates that impairment exists, the carrying value is required to be adjusted to fair value, if lower. The guidance clarifies that an entity should evaluate the realizability of a deferred tax asset related to available-for-sale fixed income securities in combination with the entity’s other deferred tax assets. The guidance also changes certain disclosure requirements. The guidance is effective for interim and annual periods beginning after December 15, 2017, and is to be applied through a cumulative-effect adjustment to beginning retained income as of the beginning of the period of adoption. The new guidance related to equity investments without readily determinable fair values is to be applied prospectively as of the date of adoption. The Company is in the process of evaluating the impact of adoption. The most significant impacts, using values as of June 30, 2016, are expected to be the change in accounting for equity securities where $341 million of pre-tax unrealized net capital gains would be reclassified from accumulated other comprehensive income to retained income and cost method limited partnership interests (excluding limited partnership interests accounted for on a cost recovery basis) where the carrying value would increase by approximately $202 million, pre-tax, with the adjustment recorded in retained income.

Accounting for Leases

In February 2016, the FASB issued guidance that revises the accounting for leases. Under the new guidance, lessees will be required to recognize a right-of-use asset and lease liability for all leases other than those that meet the definition of a short-term lease. The lease liability will be equal to the present value of lease payments. A right-of-use asset will be based on the lease liability adjusted for qualifying initial direct costs. The expense of operating leases under the new guidance will be recognized in the income statement on a straight-line basis after combining the lease expense components (interest expense on the lease liability and amortization of the right-of-use asset) over the term of the lease. For finance leases, the expense components will be computed separately thereby producing greater up-front expense as interest expense on the lease liability is higher in early years and the right-of-use asset is amortized on a straight-line basis. Lease classification will be based on criteria similar to those currently applied. The accounting model for lessors will be similar to the current model with modifications to reflect definition changes for components such as initial direct costs. Lessors will continue to classify leases as operating, direct financing, or sales-type. The guidance is effective for reporting periods beginning after December 15, 2018 using a modified retrospective approach applied at the beginning of the earliest period presented. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Employee Share-Based Payment Accounting

In March 2016, the FASB issued guidance to amend the accounting for share-based payments. Under the new guidance, reporting entities will be required to recognize all tax effects related to share-based payments at settlement (or expiration) through the income statement and will no longer be permitted to recognize excess tax benefits and tax deficiencies in additional paid in capital. The change will be applied on a modified retrospective basis, with a cumulative effect adjustment to beginning retained income. In addition, all tax-related cash flows resulting from share-based payments will be reported as operating activities on the statement of cash flows, with either prospective or retrospective transition permitted. The new guidance will permit employers to withhold shares upon settlement of an award to satisfy the employer’s tax withholding requirement (up to the employee’s maximum individual statutory tax rate) without causing liability classification of the award. The new guidance clarifies that all cash payments made to taxing authorities on an employee’s behalf for withheld shares should be presented as financing activities on the statement of cash flows. Also under the new guidance, reporting entities are permitted to make an accounting policy election to estimate forfeitures or recognize them when they occur. If elected, the change to recognize forfeitures when they occur must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The new guidance is effective for reporting periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Transition to Equity Method Accounting

In March 2016, the FASB issued guidance amending the accounting requirements for transitioning to the equity method of accounting (“EMA”), including a transition from the cost method. The guidance requires the cost of acquiring an additional interest in an investee to be added to the existing carrying value to establish the initial basis of the EMA investment. Under the new guidance, no retroactive adjustment is required when an investment initially qualifies for EMA treatment. The guidance is effective for interim and annual periods beginning after December 15, 2016, and is to be applied prospectively. The guidance will principally affect the future accounting for investments that qualify for EMA after application of the cost method of accounting. The Company is in the process of evaluating the impact of adoption, which is not expected to be material to the Company’s results of operations or financial position.

Measurement of Credit Losses on Financial Instruments

In June 2016, the FASB issued guidance which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model. The objective of the expected credit loss model is for the reporting entity to recognize its estimate of expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. The reporting entity must consider all available relevant information when estimating expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts over the contractual life of an asset. Financial assets may be evaluated individually or on a pooled basis when they share similar risk characteristics. The measurement of credit losses for available-for-sale debt securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the carrying value adjustment is recognized through an allowance and not as a direct write-down. The guidance is effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained income. The Company is in the process of evaluating the impact of adoption.

Fair Value Measurement

Level 1: Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that the Company can access.

Level 2: Assets and liabilities whose values are based on the following:


(a)	Quoted prices for similar assets or liabilities in active markets;


(b)	Quoted prices for identical or similar assets or liabilities in markets that are not active; or


(c)	Valuation models whose inputs are observable, directly or indirectly, for substantially the full term of the asset or liability.

Summary of significant valuation techniques for assets and liabilities measured at fair value on a recurring basis

Level 1 measurements


•	Fixed income securities: Comprise certain U.S. Treasury fixed income securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Equity securities: Comprise actively traded, exchange-listed equity securities. Valuation is based on unadjusted quoted prices for identical assets in active markets that the Company can access.


•	Short-term: Comprise U.S. Treasury bills valued based on unadjusted quoted prices for identical assets in active markets that the Company can access and actively traded money market funds that have daily quoted net asset values for identical assets that the Company can access.


•	Separate account assets: Comprise actively traded mutual funds that have daily quoted net asset values for identical assets that the Company can access. Net asset values for the actively traded mutual funds in which the separate account assets are invested are obtained daily from the fund managers.

Level 2 measurements


•	Fixed income securities:

Municipal: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads.


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that are not active.


•	Short-term: The primary inputs to the valuation include quoted prices for identical or similar assets in markets that are not active, contractual cash flows, benchmark yields and credit spreads. For certain short-term investments, amortized cost is used as the best estimate of fair value.


•	Other investments: Free-standing exchange listed derivatives that are not actively traded are valued based on quoted prices for identical instruments in markets that are not active.

Level 3 measurements


•	Fixed income securities:


•	Equity securities: The primary inputs to the valuation include quoted prices or quoted net asset values for identical or similar assets in markets that exhibit less liquidity relative to those markets supporting Level 2 fair value measurements.

•

Assets and liabilities measured at fair value on a non-recurring basis

Investments (Tables)

6 Months Ended

Jun. 30, 2016

Investments [Abstract]

Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value

The amortized cost, gross unrealized gains and losses and fair value for fixed income securities are as follows:



($ in millions)	Amortized cost		Gross unrealized					Fair value
	Amortized cost		Gains		Losses			Fair value
June 30, 2016
U.S. government and agencies	$	3,401	$	122	$	—		$	3,523
Municipal	7,286		543		(11		)	7,818
Corporate	41,134		1,839		(273		)	42,700
Foreign government	1,091		61		—			1,152
Asset-backed securities (“ABS”)	1,737		11		(22		)	1,726
Residential mortgage-backed securities (“RMBS”)	748		81		(11		)	818
Commercial mortgage-backed securities (“CMBS”)	352		23		(7		)	368
Redeemable preferred stock	21		3		—			24
Total fixed income securities	$	55,770	$	2,683	$	(324	)	$	58,129


December 31, 2015
U.S. government and agencies	$	3,836	$	90	$	(4	)	$	3,922
Municipal	7,032		389		(20		)	7,401
Corporate	41,674		1,032		(879		)	41,827
Foreign government	983		50		—			1,033
ABS	2,359		11		(43		)	2,327
RMBS	857		100		(10		)	947
CMBS	438		32		(4		)	466
Redeemable preferred stock	22		3		—			25
Total fixed income securities	$	57,201	$	1,707	$	(960	)	$	57,948

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows as of June 30, 2016:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	4,394	$	4,423
Due after one year through five years	26,870		27,753
Due after five years through ten years	16,262		16,854
Due after ten years	5,407		6,187
	52,933		55,217
ABS, RMBS and CMBS	2,837		2,912
Total	$	55,770	$	58,129

Schedule of net investment income

Net investment income is as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Fixed income securities	$	520		$	567		$	1,038		$	1,135
Equity securities	44			31			72			54
Mortgage loans	53			57			106			112
Limited partnership interests	126			118			247			316
Short-term investments	3			3			7			4
Other	57			49			108			94
Investment income, before expense	803			825			1,578			1,715
Investment expense	(41		)	(36		)	(85		)	(76		)
Net investment income	$	762		$	789		$	1,493		$	1,639

Schedule of realized capital gains and losses by asset type

Realized capital gains and losses by asset type are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Fixed income securities	$	24		$	60		$	(47	)	$	140
Equity securities	11			48			(79		)	126
Mortgage loans	1			1			1			1
Limited partnership interests	(13		)	(3		)	13			3
Derivatives	2			5			(7		)	(20		)
Other	(1		)	(3		)	(6		)	(3		)
Realized capital gains and losses	$	24		$	108		$	(125	)	$	247

Schedule of realized capital gains and losses by transaction type

Realized capital gains and losses by transaction type are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Impairment write-downs	$	(63	)	$	(11	)	$	(122	)	$	(30	)
Change in intent write-downs	(16		)	(32		)	(38		)	(62		)
Net other-than-temporary impairment losses recognized in earnings	(79		)	(43		)	(160		)	(92		)
Sales and other	104			146			45			362
Valuation and settlements of derivative instruments	(1		)	5			(10		)	(23		)
Realized capital gains and losses	$	24		$	108		$	(125	)	$	247

Schedule of other-than-temporary impairment losses by asset type

Other-than-temporary impairment losses by asset type are as follows:



($ in millions)	Three months ended June 30, 2016									Three months ended June 30, 2015
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Corporate	$	(1	)	$	—		$	(1	)	$	(5	)	$	4		$	(1	)
ABS	—			(1		)	(1		)	(3		)	—			(3		)
CMBS	—			(1		)	(1		)	—			—			—
Total fixed income securities	(1		)	(2		)	(3		)	(8		)	4			(4		)
Equity securities	(51		)	—			(51		)	(36		)	—			(36		)
Limited partnership interests	(24		)	—			(24		)	—			—			—
Other	(1		)	—			(1		)	(3		)	—			(3		)
Other-than-temporary impairment losses	$	(77	)	$	(2	)	$	(79	)	$	(47	)	$	4		$	(43	)

	Six months ended June 30, 2016									Six months ended June 30, 2015
	Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—		$	—		$	(4	)	$	4		$	—
Corporate	(17		)	7			(10		)	(10		)	4			(6		)
ABS	(6		)	—			(6		)	(4		)	1			(3		)
RMBS	—			—			—			1			(1		)	—
CMBS	(4		)	1			(3		)	—			—			—
Total fixed income securities	(27		)	8			(19		)	(17		)	8			(9		)
Equity securities	(128		)	—			(128		)	(75		)	—			(75		)
Limited partnership interests	(11		)	—			(11		)	(5		)	—			(5		)
Other	(2		)	—			(2		)	(3		)	—			(3		)
Other-than-temporary impairment losses	$	(168	)	$	8		$	(160	)	$	(100	)	$	8		$	(92	)

Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income

The amounts exclude $215 million and $233 million as of June 30, 2016 and December 31, 2015, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	June 30, 2016			December 31, 2015
Municipal	$	(8	)	$	(9	)
Corporate	(7		)	(7		)
ABS	(23		)	(23		)
RMBS	(95		)	(102		)
CMBS	(7		)	(6		)
Total	$	(140	)	$	(147	)

Schedule of credit losses on fixed income securities recognized in earnings

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of the end of the period are as follows:



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Beginning balance	$	(350	)	$	(378	)	$	(392	)	$	(380	)
Additional credit loss for securities previously other-than-temporarily impaired	(3		)	(2		)	(11		)	(3		)
Additional credit loss for securities not previously other-than-temporarily impaired	—			(2		)	(8		)	(6		)
Reduction in credit loss for securities disposed or collected	22			8			80			14
Change in credit loss due to accretion of increase in cash flows	—			2			—			3
Ending balance	$	(331	)	$	(372	)	$	(331	)	$	(372	)

Schedule of unrealized net capital gains and losses

Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows:



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
June 30, 2016	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	58,129	$	2,683	$	(324	)	$	2,359
Equity securities	5,265		506		(165		)	341
Short-term investments	2,850		—		—			—
Derivative instruments ⁽¹⁾	5		5		(3		)	2
Equity method (“EMA”) limited partnerships ⁽²⁾								(5		)
Unrealized net capital gains and losses, pre-tax								2,697
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(195		)
Amounts recognized								(195		)
Deferred income taxes								(878		)
Unrealized net capital gains and losses, after-tax								$	1,624

_______________


⁽¹⁾	Included in the fair value of derivative instruments are $2 million classified as assets and $(3) million classified as liabilities.


⁽²⁾	Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.

⁽³⁾


⁽⁴⁾	The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.



($ in millions)	Fair value		Gross unrealized					Unrealized net gains (losses)
December 31, 2015	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	57,948	$	1,707	$	(960	)	$	747
Equity securities	5,082		415		(139		)	276
Short-term investments	2,122		—		—			—
Derivative instruments ⁽¹⁾	10		10		(4		)	6
EMA limited partnerships								(4		)
Unrealized net capital gains and losses, pre-tax								1,025
Amounts recognized for:
Insurance reserves								—
DAC and DSI								(67		)
Amounts recognized								(67		)
Deferred income taxes								(338		)
Unrealized net capital gains and losses, after-tax								$	620

_______________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) million classified as liabilities.

Schedule of change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the six months ended June 30, 2016 is as follows:



($ in millions)
Fixed income securities	$	1,612
Equity securities	65
Derivative instruments	(4		)
EMA limited partnerships	(1		)
Total	1,672
Amounts recognized for:
Insurance reserves	—
DAC and DSI	(128		)
Amounts recognized	(128		)
Deferred income taxes	(540		)
Increase in unrealized net capital gains and losses, after-tax	$	1,004

Schedule of gross unrealized losses and fair value of available for sale securities by length of time



($ in millions)	Less than 12 months						12 months or more						Total unrealized losses
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses			Total unrealized losses
June 30, 2016
Fixed income securities
U.S. government and agencies	5	$	528	$	—		—	$	—	$	—		$	—
Municipal	32	76		—			9	28		(11		)	(11		)
Corporate	296	3,524		(112		)	196	1,958		(161		)	(273		)
Foreign government	1	2		—			—	—		—			—
ABS	40	371		(5		)	24	371		(17		)	(22		)
RMBS	78	39		(1		)	175	108		(10		)	(11		)
CMBS	14	78		(6		)	1	2		(1		)	(7		)
Total fixed income securities	466	4,618		(124		)	405	2,467		(200		)	(324		)
Equity securities	241	1,002		(130		)	55	160		(35		)	(165		)
Total fixed income and equity securities	707	$	5,620	$	(254	)	460	$	2,627	$	(235	)	$	(489	)
Investment grade fixed income securities	220	$	2,249	$	(24	)	256	$	1,331	$	(87	)	$	(111	)
Below investment grade fixed income securities	246	2,369		(100		)	149	1,136		(113		)	(213		)
Total fixed income securities	466	$	4,618	$	(124	)	405	$	2,467	$	(200	)	$	(324	)

December 31, 2015
Fixed income securities
U.S. government and agencies	53	$	1,874	$	(4	)	—	$	—	$	—		$	(4	)
Municipal	222	810		(6		)	9	36		(14		)	(20		)
Corporate	1,361	17,915		(696		)	111	1,024		(183		)	(879		)
Foreign government	9	44		—			—	—		—			—
ABS	133	1,733		(24		)	20	324		(19		)	(43		)
RMBS	88	69		—			176	125		(10		)	(10		)
CMBS	13	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,879	22,520		(732		)	317	1,511		(228		)	(960		)
Equity securities	265	1,397		(107		)	37	143		(32		)	(139		)
Total fixed income and equity securities	2,144	$	23,917	$	(839	)	354	$	1,654	$	(260	)	$	(1,099	)
Investment grade fixed income securities	1,405	$	17,521	$	(362	)	225	$	972	$	(105	)	$	(467	)
Below investment grade fixed income securities	474	4,999		(370		)	92	539		(123		)	(493		)
Total fixed income securities	1,879	$	22,520	$	(732	)	317	$	1,511	$	(228	)	$	(960	)

Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution

The following table reflects the carrying value of non-impaired fixed rate mortgage loans summarized by debt service coverage ratio distribution.



($ in millions)	June 30, 2016		December 31, 2015
Below 1.0	$	43	$	64
1.0 - 1.25	309		382
1.26 - 1.50	1,221		1,219
Above 1.50	2,874		2,667
Total non-impaired mortgage loans	$	4,447	$	4,332

Net carrying value of impaired mortgage loans

The net carrying value of impaired mortgage loans is as follows:



($ in millions)	June 30, 2016		December 31, 2015
Impaired mortgage loans with a valuation allowance	$	6	$	6
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	6
Valuation allowance on impaired mortgage loans	$	3	$	3

Valuation allowance on impaired mortgage loans

The rollforward of the valuation allowance on impaired mortgage loans is as follows:



($ in millions)	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016		2015
Beginning balance	$	3	$	8		$	3	$	8
Charge offs	—		(1		)	—		(1		)
Ending balance	$	3	$	7		$	3	$	7

Past due financing receivables

The payment status of mortgage loans is as follows:



($ in millions)	June 30, 2016		December 31, 2015
Less than 90 days past due	$	6	$	—
90 days or greater past due	—		—
Total past due	6		—
Current loans	4,447		4,338
Total mortgage loans	$	4,453	$	4,338

Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities that are measured at fair value on a recurring and non-recurring basis

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2016.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	2,658		$	865		$	—					$	3,523
Municipal	—			7,669			149						7,818
Corporate - public	—			30,798			74						30,872
Corporate - privately placed	—			11,243			585						11,828
Foreign government	—			1,152			—						1,152
ABS - CDO	—			691			33						724
ABS - consumer and other	—			957			45						1,002
RMBS	—			817			1						818
CMBS	—			348			20						368
Redeemable preferred stock	—			24			—						24
Total fixed income securities	2,658			54,564			907						58,129
Equity securities	4,972			175			118						5,265
Short-term investments	733			2,117			—						2,850
Other investments: Free-standing derivatives	—			88			1			$	(18	)	71
Separate account assets	3,438			—			—						3,438
Other assets	2			—			1						3
Total recurring basis assets	11,803			56,944			1,027			(18		)	69,756
Non-recurring basis⁽¹⁾	—			—			38						38
Total assets at fair value	$	11,803		$	56,944		$	1,065		$	(18	)	$	69,794
% of total assets at fair value	16.9		%	81.6		%	1.5		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(304	)				$	(304	)
Other liabilities: Free-standing derivatives	(3		)	(55		)	(8		)	$	33		(33		)
Total liabilities at fair value	$	(3	)	$	(55	)	$	(312	)	$	33		$	(337	)
% of total liabilities at fair value	0.9		%	16.3		%	92.6		%	(9.8		)%	100		%

_______________


⁽¹⁾	Includes $36 million of limited partnership interests and $2 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2015.



($ in millions)	Quoted prices in active markets for identical assets (Level 1)			Significant other observable inputs (Level 2)			Significant unobservable inputs (Level 3)			Counterparty and cash collateral netting			Balance as of December 31, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	3,056		$	861		$	5					$	3,922
Municipal	—			7,240			161						7,401
Corporate - public	—			30,356			46						30,402
Corporate - privately placed	—			10,923			502						11,425
Foreign government	—			1,033			—						1,033
ABS - CDO	—			716			61						777
ABS - consumer and other	—			1,500			50						1,550
RMBS	—			946			1						947
CMBS	—			446			20						466
Redeemable preferred stock	—			25			—						25
Total fixed income securities	3,056			54,046			846						57,948
Equity securities	4,786			163			133						5,082
Short-term investments	615			1,507			—						2,122
Other investments: Free-standing derivatives	—			65			1			$	(13	)	53
Separate account assets	3,658			—			—						3,658
Other assets	2			—			1						3
Total recurring basis assets	12,117			55,781			981			(13		)	68,866
Non-recurring basis ⁽¹⁾	—			—			55						55
Total assets at fair value	$	12,117		$	55,781		$	1,036		$	(13	)	$	68,921
% of total assets at fair value	17.6		%	80.9		%	1.5		%	—		%	100		%
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	(1		)	(23		)	(8		)	$	7		(25		)
Total liabilities at fair value	$	(1	)	$	(23	)	$	(307	)	$	7		$	(324	)
% of total liabilities at fair value	0.3		%	7.1		%	94.8		%	(2.2		)%	100		%

_______________


⁽¹⁾	Includes $42 million of limited partnership interests and $13 million of other investments written-down to fair value in connection with recognizing other-than-temporary impairments.

Summary of quantitative information about the significant unobservable inputs

The following table summarizes quantitative information about the significant unobservable inputs used in Level 3 fair value measurements.



($ in millions)	Fair value			Valuation technique	Unobservable input	Range	Weighted average
June 30, 2016
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(250	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.75%
December 31, 2015
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(247	)	Stochastic cash flow model	Projected option cost	1.0 - 2.2%	1.76%

Schedule of the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of March 31, 2016			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	4		$	—		$	—		$	—		$	(4	)
Municipal	146			—			3			6			—
Corporate - public	63			—			—			—			—
Corporate - privately placed	549			3			8			16			(69		)
ABS - CDO	58			—			3			6			(3		)
ABS - consumer and other	44			—			(1		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	885			3			13			31			(76		)
Equity securities	125			(8		)	1			—			—
Free-standing derivatives, net	(8		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,003		$	(4	)	$	14		$	31		$	(76	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(313	)	$	7		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(313	)	$	7		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	—		$	—
Municipal	—			(6		)	—			—			149
Corporate - public	7			4			—			—			74
Corporate - privately placed	80			—			—			(2		)	585
ABS - CDO	—			—			—			(31		)	33
ABS - consumer and other	—			—			—			(1		)	45
RMBS	—			—			—			—			1
CMBS	—			—			—			—			20
Total fixed income securities	87			(2		)	—			(34		)	907
Equity securities	—			—			—			—			118
Free-standing derivatives, net	—			—			—			—			(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	87		$	(2	)	$	—		$	(34	)	$	1,019
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	2		$	(304	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	2		$	(304	)

_____________


⁽¹⁾	The effect to net income totals $3 million and is reported in the Condensed Consolidated Statements of Operations as follows: $(9) million in realized capital gains and losses, $5 million in net investment income, $(7) million in interest credited to contractholder funds and $14 million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2016.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	(4	)
Municipal	161			10			(5		)	6			—
Corporate - public	46			—			1			25			(7		)
Corporate - privately placed	502			4			13			16			(83		)
ABS - CDO	61			—			2			10			(3		)
ABS - consumer and other	50			—			(2		)	3			—
RMBS	1			—			—			—			—
CMBS	20			—			—			—			—
Total fixed income securities	846			14			9			60			(97		)
Equity securities	133			(32		)	8			—			—
Free-standing derivatives, net	(7		)	—			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	973		$	(18	)	$	17		$	60		$	(97	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(299	)	$	(8	)	$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(299	)	$	(8	)	$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2016
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	—
Municipal	—			(22		)	—			(1		)	149
Corporate - public	7			4			—			(2		)	74
Corporate - privately placed	143			—			—			(10		)	585
ABS - CDO	—			(2		)	—			(35		)	33
ABS - consumer and other	—			(5		)	—			(1		)	45
RMBS	—			—			—			—			1
CMBS	2			—			—			(2		)	20
Total fixed income securities	152			(25		)	—			(52		)	907
Equity securities	9			—			—			—			118
Free-standing derivatives, net	—			—			—			—			(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	161		$	(25	)	$	—		$	(52	)	$	1,019
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(304	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(304	)

_____________


⁽¹⁾	The effect to net income totals $(26) million and is reported in the Condensed Consolidated Statements of Operations as follows: $(25) million in realized capital gains and losses, $7 million in net investment income, $(6) million in interest credited to contractholder funds and $(2) million in life and annuity contract benefits.


⁽²⁾	Comprises $1 million of assets and $8 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the three months ended June 30, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of March 31, 2015			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	5		$	—		$	—		$	—		$	—
Municipal	238			2			(6		)	—			(2		)
Corporate	878			3			2			—			(208		)
ABS	137			(1		)	2			—			(11		)
RMBS	1			—			—			—			—
CMBS	28			—			—			—			—
Total fixed income securities	1,287			4			(2		)	—			(221		)
Equity securities	93			1			2			—			—
Short-term investments	10			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,384		$	6		$	—		$	—		$	(221	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(326	)	$	9		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(326	)	$	9		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	—		$	5
Municipal	—			(16		)	—			(1		)	215
Corporate	—			—			—			(49		)	626
ABS	—			(5		)	—			(2		)	120
RMBS	—			—			—			—			1
CMBS	—			—			—			—			28
Total fixed income securities	—			(21		)	—			(52		)	995
Equity securities	12			—			—			—			108
Short-term investments	25			—			—			—			35
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	37		$	(21	)	$	—		$	(53	)	$	1,132
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	—		$	2		$	(315	)
Total recurring Level 3 liabilities	$	—		$	—		$	—		$	2		$	(315	)

_____________________


⁽¹⁾	The effect to net income totals $15 million and is reported in the Condensed Consolidated Statements of Operations as follows: $2 million in realized capital gains and losses, $4 million in net investment income and $9 million in interest credited to contractholder funds.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the six months ended June 30, 2015.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2014			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
U.S. government and agencies	$	6		$	—		$	—		$	—		$	—
Municipal	270			2			(4		)	—			(2		)
Corporate	891			—			(6		)	5			(208		)
ABS	196			(2		)	2			12			(84		)
RMBS	1			—			—			—			—
CMBS	23			—			—			—			—
Total fixed income securities	1,387			—			(8		)	17			(294		)
Equity securities	83			1			4			—			—
Short-term investments	5			—			—			—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,469		$	2		$	(4	)	$	17		$	(294	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	5		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	5		$	—		$	—		$	—

	Purchases			Sales			Issues			Settlements			Balance as of June 30, 2015
Assets
Fixed income securities:
U.S. government and agencies	$	—		$	—		$	—		$	(1	)	$	5
Municipal	—			(49		)	—			(2		)	215
Corporate	60			(46		)	—			(70		)	626
ABS	10			(5		)	—			(9		)	120
RMBS	—			—			—			—			1
CMBS	5			—			—			—			28
Total fixed income securities	75			(100		)	—			(82		)	995
Equity securities	20			—			—			—			108
Short-term investments	30			—			—			—			35
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	125		$	(100	)	$	—		$	(83	)	$	1,132
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(1	)	$	4		$	(315	)
Total recurring Level 3 liabilities	$	—		$	—		$	(1	)	$	4		$	(315	)

_____________________


⁽¹⁾	The effect to net income totals $7 million and is reported in the Condensed Consolidated Statements of Operations as follows: $(4) million in realized capital gains and losses, $6 million in net investment income and $5 million in interest credited to contractholder funds.


⁽²⁾	Comprises $2 million of assets and $9 million of liabilities.

Schedule of gains and losses included in net income for Level 3 assets and liabilities still held at the balance sheet date

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of June 30.



($ in millions)	Three months ended June 30,						Six months ended June 30,
	2016			2015			2016			2015
Assets
Fixed income securities:
Municipal	$	1		$	—		$	1		$	(1	)
Corporate	3			3			1			5
ABS	—			(1		)	—			(1		)
Total fixed income securities	4			2			2			3
Equity securities	(8		)	1			(32		)	—
Free-standing derivatives, net	1			1			—			1
Total recurring Level 3 assets	$	(3	)	$	4		$	(30	)	$	4
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	7		$	9		$	(8	)	$	5
Total recurring Level 3 liabilities	$	7		$	9		$	(8	)	$	5

Schedule of carrying values and fair value estimates of financial instruments not carried at fair value

Financial liabilities



($ in millions)	June 30, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	11,919	$	12,420	$	12,424	$	12,874
Long-term debt	5,109		5,868		5,124		5,648
Liability for collateral	896		896		840		840

Presented below are the carrying values and fair value estimates of financial instruments not carried at fair value.

Financial assets



($ in millions)	June 30, 2016				December 31, 2015
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	4,453	$	4,666	$	4,338	$	4,489
Cost method limited partnerships	1,284		1,511		1,154		1,450
Bank loans	1,635		1,614		1,565		1,527
Agent loans	452		444		422		408

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Volume and fair value positions of derivative instruments and location in the Consolidated Statement of Financial Position



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	30	n/a	$	2		$	2	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	24		n/a	—			—		—
Equity and index contracts
Options	Other investments	—		4,106	66			66		—
Financial futures contracts	Other assets	—		807	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	399		n/a	(17		)	8		(25		)
Credit default contracts
Credit default swaps – buying protection	Other investments	30		n/a	—			—		—
Credit default swaps – selling protection	Other investments	80		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		536		4,913	53			78		(25		)
Total asset derivatives		$	566	4,913	$	55		$	80	$	(25	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	3		$	3	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	51		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		6,350	(21		)	—		(21		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	434		n/a	(1		)	7		(8		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	429		n/a	(40		)	—		(40		)
Guaranteed withdrawal benefits	Contractholder funds	304		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,754		n/a	(250		)	—		(250		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	248		n/a	(4		)	—		(4		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	165		n/a	(7		)	1		(8		)
Subtotal		3,555		6,350	(336		)	9		(345		)
Total liability derivatives		3,574		6,350	(333		)	$	12	$	(345	)
Total derivatives		$	4,140	11,263	$	(278	)

__________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)



($ in millions, except number of contracts)		Volume ⁽¹⁾
	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Asset derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	45	n/a	$	6		$	6	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	42		n/a	—			—		—
Equity and index contracts
Options and warrants ⁽²⁾	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		1,897	2			2		—
Foreign currency contracts
Foreign currency forwards	Other investments	185		n/a	1			2		(1		)
Embedded derivative financial instruments
Other embedded derivative financial instruments	Other investments	1,000		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	112		n/a	4			5		(1		)
Credit default swaps – selling protection	Other investments	150		n/a	2			2		—
Other contracts
Other contracts	Other investments	31		n/a	1			1		—
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		1,523		5,627	55			57		(2		)
Total asset derivatives		$	1,568	5,627	$	61		$	63	$	(2	)

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	19	n/a	$	4		$	4	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	—			—		—
Interest rate cap agreements	Other liabilities & accrued expenses	72		n/a	1			1		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		4,406	(7		)	—		(7		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	361		n/a	(12		)	1		(13		)
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	481		n/a	(38		)	—		(38		)
Guaranteed withdrawal benefits	Contractholder funds	332		n/a	(14		)	—		(14		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,781		n/a	(247		)	—		(247		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	88		n/a	(2		)	—		(2		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	105		n/a	(8		)	—		(8		)
Subtotal		3,390		4,406	(327		)	2		(329		)
Total liability derivatives		3,409		4,406	(323		)	$	6	$	(329	)
Total derivatives		$	4,977	10,033	$	(262	)

__________________


⁽¹⁾	Volume for OTC and cleared derivative contracts is represented by their notional amounts. Volume for exchange traded derivatives is represented by the number of contracts, which is the basis on which they are traded. (n/a = not applicable)


⁽²⁾	In addition to the number of contracts presented in the table, the Company held 220 stock rights and warrants. Stock rights and warrants can be converted to cash upon sale of those instruments or exercised for shares of common stock.

Schedule of gross and net amount for the Company's OTC derivatives subject to enforceable master netting arrangements

The following table provides gross and net amounts for the Company’s OTC derivatives, all of which are subject to enforceable master netting agreements.



($ in millions)				Offsets
	Gross amount			Counter-party netting			Cash collateral (received) pledged			Net amount on balance sheet			Securities collateral (received) pledged			Net amount
June 30, 2016
Asset derivatives	$	22		$	(37	)	$	19		$	4		$	—		$	4
Liability derivatives	(45		)	37			(4		)	(12		)	9			(3		)

December 31, 2015
Asset derivatives	$	21		$	(8	)	$	(5	)	$	8		$	(4	)	$	4
Liability derivatives	(25		)	8			(1		)	(18		)	9			(9		)

Impacts on operations and AOCI from foreign currency contracts, cash flow hedges

There was no hedge ineffectiveness reported in realized gains and losses for the three months and six months ended June 30, 2016 or 2015.



($ in millions)	Three months ended June 30,					Six months ended June 30,
	2016		2015			2016			2015
Gain (loss) recognized in OCI on derivatives during the period	$	1	$	(1	)	$	(1	)	$	7
Gain recognized in OCI on derivatives during the term of the hedging relationship	2		3			2			3
Loss reclassified from AOCI into income (net investment income)	—		(1		)	—			(1		)
Gain reclassified from AOCI into income (realized capital gains and losses)	3		—			3			3

Gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges

For the three months and six months ended June 30, 2016 and 2015, the Company had no derivatives used in fair value hedging relationships.



($ in millions)	Realized capital gains and losses			Life and annuity contract benefits			Interest credited to contractholder funds			Operating costs and expenses			Total gain (loss) recognized in net income on derivatives
Three months ended June 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(5		)	—			2			4			1
Embedded derivative financial instruments	—			14			(5		)	—			9
Foreign currency contracts	6			—			—			(16		)	(10		)
Credit default contracts	(1		)	—			—			—			(1		)
Total	$	(1	)	$	14		$	(3	)	$	(12	)	$	(2	)

Six months ended June 30, 2016
Interest rate contracts	$	(1	)	$	—		$	—		$	—		$	(1	)
Equity and index contracts	(5		)	—			(5		)	4			(6		)
Embedded derivative financial instruments	—			(2		)	(3		)	—			(5		)
Foreign currency contracts	1			—			—			(21		)	(20		)
Credit default contracts	(5		)	—			—			—			(5		)
Total	$	(10	)	$	(2	)	$	(8	)	$	(17	)	$	(37	)

Three months ended June 30, 2015
Interest rate contracts	$	2		$	—		$	—		$	—		$	2
Equity and index contracts	—			—			—			1			1
Embedded derivative financial instruments	—			—			11			—			11
Foreign currency contracts	3			—			—			12			15
Other contracts	—			—			1			—			1
Total	$	5		$	—		$	12		$	13		$	30

Six months ended June 30, 2015
Interest rate contracts	$	2		$	—		$	—		$	—		$	2
Equity and index contracts	(5		)	—			4			4			3
Embedded derivative financial instruments	—			—			8			—			8
Foreign currency contracts	(20		)	—			—			3			(17		)
Other contracts	—			—			1			—			1
Total	$	(23	)	$	—		$	13		$	7		$	(3	)

Counterparty credit exposure by counterparty credit rating

The following table summarizes the counterparty credit exposure by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	June 30, 2016							December 31, 2015
Rating ⁽¹⁾	Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾		Number of counter- parties	Notional amount⁽²⁾		Credit exposure⁽²⁾		Exposure, net of collateral⁽²⁾
AA-	2	$	67	$	1	$	1	—	$	—	$	—	$	—
A+	1	207		5		2		1	82		5		—
A	3	58		2		—		5	375		9		6
A-	—	—		—		—		1	41		3		—
BBB+	2	7		—		—		2	49		—		1
Total	8	$	339	$	8	$	3	9	$	547	$	17	$	7

_______________


⁽¹⁾	Rating is the lower of S&P or Moody’s ratings.


⁽²⁾	Only OTC derivatives with a net positive fair value are included for each counterparty.

Derivative instruments with credit features in a liability position, including fair value of assets and collateral netted against the liability



($ in millions)	June 30, 2016			December 31, 2015
Gross liability fair value of contracts containing credit-risk-contingent features	$	25		$	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(14		)	(3		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	(13		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	4		$	5

CDS notional amounts by credit rating and fair value of protection sold

The following table shows the CDS notional amounts by credit rating and fair value of protection sold.



($ in millions)	Notional amount
	AA		A		BBB		BB and lower		Total		Fair value
June 30, 2016
Single name
Corporate debt	$	20	$	10	$	35	$	—	$	65	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		19		50		10		80		1
Total	$	21	$	29	$	185	$	10	$	245	$	(6	)

December 31, 2015
Single name
Corporate debt	$	20	$	10	$	45	$	—	$	75	$	1
First-to-default Basket
Municipal	—		—		100		—		100		(8		)
Index
Corporate debt	1		20		52		7		80		1
Total	$	21	$	30	$	197	$	7	$	255	$	(6	)

Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net income	$ 271	$ 355	$ 517	$ 1,032
Less: Preferred stock dividends	29	29	58	58
Net income applicable to common shareholders	$ 242	$ 326	$ 459	$ 974
Denominator:
Weighted average common shares outstanding	373.6	407.0	375.8	411.4
Effect of dilutive potential common shares:
Stock options (in shares)	3.4	4.2	3.4	4.5
Restricted stock units(non-participating) and performance stock awards (in shares)	1.1	1.4	1.3	1.7
Weighted average common and dilutive potential common shares outstanding (in shares)	378.1	412.6	380.5	417.6
Earnings per common share - Basic (in dollars per share)	$ 0.65	$ 0.80	$ 1.22	$ 2.37
Earnings per common share - Diluted (in dollars per share)	$ 0.64	$ 0.79	$ 1.21	$ 2.33
Other Earnings Per Share Disclosures
Antidilutive stock options, exercise price exceeds market price (in shares)	4.8	2.2	4.8	2.2
Antidilutive stock options, exercise price exceeds market price, exercise price range, low end of range (in dollars per share)	$ 57.29	$ 60.81	$ 57.29	$ 60.81
Antidilutive stock options, exercise price exceeds market price, exercise price range, high end of range (in dollars per share)	$ 71.29	$ 71.29	$ 71.29	$ 71.29

Investments (Details 2) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Amortized cost
Due in one year or less	$ 4,394
Due after one year through five years	26,870
Due after five years through ten years	16,262
Due after ten years	5,407
Subtotal	52,933
ABS, RMBS and CMBS	2,837
Amortized cost	55,770	$ 57,201
Fair value
Due in one year or less	4,423
Due after one year through five years	27,753
Due after five years through ten years	16,854
Due after ten years	6,187
Subtotal	55,217
ABS, RMBS and CMBS	2,912
Total fixed income securities	$ 58,129	$ 57,948

Investments (Details 9) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair value
Fixed income securities:	$ 58,129	$ 57,948
Equity securities	5,265	5,082
Short-term investments	2,850	2,122
Derivative instruments	5	10
Gross unrealized Gains
Fixed income securities	2,683	1,707
Equity securities	506	415
Short-term investments	0	0
Derivative instruments	5	10
Gross unrealized Losses
Fixed income securities	(324)	(960)
Equity securities	(165)	(139)
Short-term investments	0	0
Derivative instruments	(3)	(4)
Unrealized net gains (losses)
Fixed income securities	2,359	747
Equity securities	341	276
Short-term investments	0	0
Derivative instruments	2	6
EMA limited partnerships	(5)	(4)
Unrealized net capital gains and losses, pre-tax	2,697	1,025
Amount recognized for:
Insurance reserves	0	0
DAC and DSI	(195)	(67)
Amounts recognized	(195)	(67)
Deferred income taxes	(878)	(338)
Total unrealized net capital gains and losses	1,624	620
Fair value of derivative securities classified as assets, with unrealized net gains (losses) in AOCI	2	6
Fair value of derivative securities classified as liabilities, with unrealized net gains (losses) in AOCI	$ (3)	$ (4)

Investments (Details 11) $ in Millions	Jun. 30, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Fixed income and equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	707	2,144
Fair value, continuous unrealized loss position for less than 12 months	$ 5,620	$ 23,917
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (254)	$ (839)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	460	354
Fair value, continuous unrealized loss position for 12 months or more	$ 2,627	$ 1,654
Unrealized losses, continuous unrealized loss position for 12 months or more	(235)	(260)
Total unrealized losses
Total unrealized losses	$ (489)	$ (1,099)
Fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	466	1,879
Fair value, continuous unrealized loss position for less than 12 months	$ 4,618	$ 22,520
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (124)	$ (732)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	405	317
Fair value, continuous unrealized loss position for 12 months or more	$ 2,467	$ 1,511
Unrealized losses, continuous unrealized loss position for 12 months or more	(200)	(228)
Total unrealized losses
Total unrealized losses	$ (324)	$ (960)
U.S. government and agencies
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	5	53
Fair value, continuous unrealized loss position for less than 12 months	$ 528	$ 1,874
Unrealized losses, continuous unrealized loss position for less than 12 months	$ 0	$ (4)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	0	0
Fair value, continuous unrealized loss position for 12 months or more	$ 0	$ 0
Unrealized losses, continuous unrealized loss position for 12 months or more	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ (4)
Municipal
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	32	222
Fair value, continuous unrealized loss position for less than 12 months	$ 76	$ 810
Unrealized losses, continuous unrealized loss position for less than 12 months	$ 0	$ (6)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	9	9
Fair value, continuous unrealized loss position for 12 months or more	$ 28	$ 36
Unrealized losses, continuous unrealized loss position for 12 months or more	(11)	(14)
Total unrealized losses
Total unrealized losses	$ (11)	$ (20)
Corporate
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	296	1,361
Fair value, continuous unrealized loss position for less than 12 months	$ 3,524	$ 17,915
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (112)	$ (696)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	196	111
Fair value, continuous unrealized loss position for 12 months or more	$ 1,958	$ 1,024
Unrealized losses, continuous unrealized loss position for 12 months or more	(161)	(183)
Total unrealized losses
Total unrealized losses	$ (273)	$ (879)
Foreign government
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	1	9
Fair value, continuous unrealized loss position for less than 12 months	$ 2	$ 44
Unrealized losses, continuous unrealized loss position for less than 12 months	$ 0	$ 0
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	0	0
Fair value, continuous unrealized loss position for 12 months or more	$ 0	$ 0
Unrealized losses, continuous unrealized loss position for 12 months or more	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
Asset-backed securities (“ABS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	40	133
Fair value, continuous unrealized loss position for less than 12 months	$ 371	$ 1,733
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (5)	$ (24)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	24	20
Fair value, continuous unrealized loss position for 12 months or more	$ 371	$ 324
Unrealized losses, continuous unrealized loss position for 12 months or more	(17)	(19)
Total unrealized losses
Total unrealized losses	$ (22)	$ (43)
Residential mortgage-backed securities (“RMBS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	78	88
Fair value, continuous unrealized loss position for less than 12 months	$ 39	$ 69
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (1)	$ 0
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	175	176
Fair value, continuous unrealized loss position for 12 months or more	$ 108	$ 125
Unrealized losses, continuous unrealized loss position for 12 months or more	(10)	(10)
Total unrealized losses
Total unrealized losses	$ (11)	$ (10)
Commercial mortgage-backed securities (“CMBS”)
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	14	13
Fair value, continuous unrealized loss position for less than 12 months	$ 78	$ 75
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (6)	$ (2)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	1	1
Fair value, continuous unrealized loss position for 12 months or more	$ 2	$ 2
Unrealized losses, continuous unrealized loss position for 12 months or more	(1)	(2)
Total unrealized losses
Total unrealized losses	$ (7)	$ (4)
Investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	220	1,405
Fair value, continuous unrealized loss position for less than 12 months	$ 2,249	$ 17,521
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (24)	$ (362)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	256	225
Fair value, continuous unrealized loss position for 12 months or more	$ 1,331	$ 972
Unrealized losses, continuous unrealized loss position for 12 months or more	(87)	(105)
Total unrealized losses
Total unrealized losses	$ (111)	$ (467)
Below investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	246	474
Fair value, continuous unrealized loss position for less than 12 months	$ 2,369	$ 4,999
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (100)	$ (370)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	149	92
Fair value, continuous unrealized loss position for 12 months or more	$ 1,136	$ 539
Unrealized losses, continuous unrealized loss position for 12 months or more	(113)	(123)
Total unrealized losses
Total unrealized losses	$ (213)	$ (493)
Equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| contract	241	265
Fair value, continuous unrealized loss position for less than 12 months	$ 1,002	$ 1,397
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (130)	$ (107)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| contract	55	37
Fair value, continuous unrealized loss position for 12 months or more	$ 160	$ 143
Unrealized losses, continuous unrealized loss position for 12 months or more	(35)	(32)
Total unrealized losses
Total unrealized losses	$ (165)	$ (139)

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015
Assets
Fixed income securities:	$ 58,129	$ 57,948
Equity securities	5,265	5,082
Short-term investments	2,850	2,122
Other investments: Free-standing derivatives	1		$ 2
Separate account assets	3,438	3,658
Counterparty and cash collateral netting	$ (18)	$ (13)
% of total assets at fair value	0.00%	0.00%
Other liabilities:
Other liabilities: Free-standing derivatives	$ (8)		$ (9)
Counterparty and cash collateral netting	$ 33	$ 7
Counterparty and cash collateral netting as a percent of liabilities measured at fair value	(9.80%)	(2.20%)
U.S. government and agencies
Assets
Fixed income securities:	$ 3,523	$ 3,922
Municipal
Assets
Fixed income securities:	7,818	7,401
Foreign government
Assets
Fixed income securities:	1,152	1,033
Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	818	947
Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	368	466
Redeemable preferred stock
Assets
Fixed income securities:	24	25
Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	$ 11,803	$ 12,117
% of total assets at fair value	16.90%	17.60%
Other liabilities:
Total liabilities at fair value	$ (3)	$ (1)
Liabilities as a percent of liabilities measured at fair value	0.90%	0.30%
Significant other observable inputs (Level 2)
Assets
Total assets at fair value	$ 56,944	$ 55,781
% of total assets at fair value	81.60%	80.90%
Other liabilities:
Total liabilities at fair value	$ (55)	$ (23)
Liabilities as a percent of liabilities measured at fair value	16.30%	7.10%
Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	$ 1,065	$ 1,036
% of total assets at fair value	1.50%	1.50%
Other liabilities:
Total liabilities at fair value	$ (312)	$ (307)
Liabilities as a percent of liabilities measured at fair value	92.60%	94.80%
Recurring
Assets
Other investments: Free-standing derivatives, Counterparty and cash collateral netting	$ (18)	$ (13)
Other liabilities:
Counterparty and cash collateral netting	33	7
Recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities:	2,658	3,056
Equity securities	4,972	4,786
Short-term investments	733	615
Other investments: Free-standing derivatives	0	0
Separate account assets	3,438	3,658
Other assets	2	2
Total assets at fair value	11,803	12,117
Other liabilities:
Other liabilities: Free-standing derivatives	(3)	(1)
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities:	2,658	3,056
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - CDO
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| ABS - consumer and other
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	0	0
Recurring \| Quoted prices in active markets for identical assets (Level 1) \| Redeemable preferred stock
Assets
Fixed income securities:	0	0
Recurring \| Significant other observable inputs (Level 2)
Assets
Fixed income securities:	54,564	54,046
Equity securities	175	163
Short-term investments	2,117	1,507
Other investments: Free-standing derivatives	88	65
Separate account assets	0	0
Other assets	0	0
Total assets at fair value	56,944	55,781
Other liabilities:
Other liabilities: Free-standing derivatives	(55)	(23)
Recurring \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities:	865	861
Recurring \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities:	7,669	7,240
Recurring \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities:	30,798	30,356
Recurring \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities:	11,243	10,923
Recurring \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities:	1,152	1,033
Recurring \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities:	691	716
Recurring \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities:	957	1,500
Recurring \| Significant other observable inputs (Level 2) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	817	946
Recurring \| Significant other observable inputs (Level 2) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	348	446
Recurring \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities:	24	25
Recurring \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities:	907	846
Equity securities	118	133
Short-term investments	0	0
Other investments: Free-standing derivatives	1	1
Separate account assets	0	0
Other assets	1	1
Total assets at fair value	1,027	981
Other liabilities:
Other liabilities: Free-standing derivatives	(8)	(8)
Recurring \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities:	0	5
Recurring \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities:	149	161
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities:	74	46
Recurring \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities:	585	502
Recurring \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities:	0	0
Recurring \| Significant unobservable inputs (Level 3) \| ABS - CDO
Assets
Fixed income securities:	33	61
Recurring \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities:	45	50
Recurring \| Significant unobservable inputs (Level 3) \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	1	1
Recurring \| Significant unobservable inputs (Level 3) \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	20	20
Recurring \| Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Assets
Fixed income securities:	0	0
Non-recurring \| Quoted prices in active markets for identical assets (Level 1)
Assets
Total assets at fair value	0	0
Non-recurring \| Significant other observable inputs (Level 2)
Assets
Total assets at fair value	0	0
Non-recurring \| Significant unobservable inputs (Level 3)
Assets
Total assets at fair value	38	55
Derivatives embedded in life and annuity contracts \| Recurring \| Quoted prices in active markets for identical assets (Level 1)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Derivatives embedded in life and annuity contracts \| Recurring \| Significant other observable inputs (Level 2)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Derivatives embedded in life and annuity contracts \| Recurring \| Significant unobservable inputs (Level 3)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	(304)	(299)
Fair value
Fair value of assets and liabilities measured on recurring and non-recurring basis
Limited partnership interests	36	42
Other investments	2	13
Assets
Total assets at fair value	$ 69,794	$ 68,921
% of total assets at fair value	100.00%	100.00%
Other liabilities:
Total liabilities at fair value	$ (337)	$ (324)
Liabilities as a percent of liabilities measured at fair value	100.00%	100.00%
Fair value \| Recurring
Assets
Fixed income securities:	$ 58,129	$ 57,948
Equity securities	5,265	5,082
Short-term investments	2,850	2,122
Other investments: Free-standing derivatives	71	53
Separate account assets	3,438	3,658
Other assets	3	3
Total assets at fair value	69,756	68,866
Other liabilities:
Other liabilities: Free-standing derivatives	(33)	(25)
Fair value \| Recurring \| U.S. government and agencies
Assets
Fixed income securities:	3,523	3,922
Fair value \| Recurring \| Municipal
Assets
Fixed income securities:	7,818	7,401
Fair value \| Recurring \| Corporate - public
Assets
Fixed income securities:	30,872	30,402
Fair value \| Recurring \| Corporate - privately placed
Assets
Fixed income securities:	11,828	11,425
Fair value \| Recurring \| Foreign government
Assets
Fixed income securities:	1,152	1,033
Fair value \| Recurring \| ABS - CDO
Assets
Fixed income securities:	724	777
Fair value \| Recurring \| ABS - consumer and other
Assets
Fixed income securities:	1,002	1,550
Fair value \| Recurring \| Residential mortgage-backed securities (“RMBS”)
Assets
Fixed income securities:	818	947
Fair value \| Recurring \| Commercial mortgage-backed securities (“CMBS”)
Assets
Fixed income securities:	368	466
Fair value \| Recurring \| Redeemable preferred stock
Assets
Fixed income securities:	24	25
Fair value \| Non-recurring
Assets
Total assets at fair value	38	55
Fair value \| Derivatives embedded in life and annuity contracts \| Recurring
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	(304)	(299)
Fixed income securities - non-binding broker quotes
Assets
Total assets at fair value	350	625
Municipal - not rated by third party credit rating agencies
Assets
Total assets at fair value	$ 92	$ 96

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	$ 1,003	$ 1,384	$ 973	$ 1,469
Total gains (losses) included in: net income	(4)	6	(18)	2
Total gains (losses) included in: OCI	14	0	17	(4)
Transfers into Level 3	31	0	60	17
Transfers out of Level 3	(76)	(221)	(97)	(294)
Purchases	87	37	161	125
Sales	(2)	(21)	(25)	(100)
Issues	0	0	0	0
Settlements	(34)	(53)	(52)	(83)
Balance at end of period	1,019	1,132	1,019	1,132
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(313)	(326)	(299)	(323)
Total gains (losses) included in: net income	7	9	(8)	5
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	(1)	(1)
Settlements	2	2	4	4
Balance at the end of the period	(304)	(315)	(304)	(315)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Total realized and unrealized gains (losses) included in net income, recurring Level 3 assets and liabilities	3	15	(26)	7
Other investments: Free-standing derivatives	1	2	1	2
Free-standing derivatives, liabilities	8	9	8	9
Realized capital gains and losses
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	(9)	2	(25)	(4)
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	(9)		(38)	(2)
Net investment income
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	5	4	7	6
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	6	4	8	6
Interest credited to contractholder funds
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Total gains (losses) included in: net income	(7)	9	(6)	5
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	(7)	9	(6)	5
Life and annuity contract benefits
Fair value assets and liabilities measured on recurring basis, gain (loss) included in earnings
Change in unrealized gain (loss)	14		(2)
ABS - consumer and other
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	44		50
Total gains (losses) included in: net income	0		0
Total gains (losses) included in: OCI	(1)		(2)
Transfers into Level 3	3		3
Transfers out of Level 3	0		0
Purchases	0		0
Sales	0		(5)
Issues	0		0
Settlements	(1)		(1)
Balance at end of period	45		45
Fixed income securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	885	1,287	846	1,387
Total gains (losses) included in: net income	3	4	14	0
Total gains (losses) included in: OCI	13	(2)	9	(8)
Transfers into Level 3	31	0	60	17
Transfers out of Level 3	(76)	(221)	(97)	(294)
Purchases	87	0	152	75
Sales	(2)	(21)	(25)	(100)
Issues	0	0	0	0
Settlements	(34)	(52)	(52)	(82)
Balance at end of period	907	995	907	995
U.S. government and agencies
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	4	5	5	6
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	(4)	0	(4)	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	(1)	(1)
Balance at end of period	0	5	0	5
ABS - CDO
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	58		61
Total gains (losses) included in: net income	0		0
Total gains (losses) included in: OCI	3		2
Transfers into Level 3	6		10
Transfers out of Level 3	(3)		(3)
Purchases	0		0
Sales	0		(2)
Issues	0		0
Settlements	(31)		(35)
Balance at end of period	33		33
Municipal
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	146	238	161	270
Total gains (losses) included in: net income	0	2	10	2
Total gains (losses) included in: OCI	3	(6)	(5)	(4)
Transfers into Level 3	6	0	6	0
Transfers out of Level 3	0	(2)	0	(2)
Purchases	0	0	0	0
Sales	(6)	(16)	(22)	(49)
Issues	0	0	0	0
Settlements	0	(1)	(1)	(2)
Balance at end of period	149	215	149	215
Corporate
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	63	878	46	891
Total gains (losses) included in: net income	0	3	0	0
Total gains (losses) included in: OCI	0	2	1	(6)
Transfers into Level 3	0	0	25	5
Transfers out of Level 3	0	(208)	(7)	(208)
Purchases	7	0	7	60
Sales	4	0	4	(46)
Issues	0	0	0	0
Settlements	0	(49)	(2)	(70)
Balance at end of period	74	626	74	626
Asset-backed securities (“ABS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period		137		196
Total gains (losses) included in: net income		(1)		(2)
Total gains (losses) included in: OCI		2		2
Transfers into Level 3		0		12
Transfers out of Level 3		(11)		(84)
Purchases		0		10
Sales		(5)		(5)
Issues		0		0
Settlements		(2)		(9)
Balance at end of period		120		120
Corporate - privately placed
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	549		502
Total gains (losses) included in: net income	3		4
Total gains (losses) included in: OCI	8		13
Transfers into Level 3	16		16
Transfers out of Level 3	(69)		(83)
Purchases	80		143
Sales	0		0
Issues	0		0
Settlements	(2)		(10)
Balance at end of period	585		585
Residential mortgage-backed securities (“RMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	1	1	1	1
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	1	1	1	1
Commercial mortgage-backed securities (“CMBS”)
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	20	28	20	23
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	2	5
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	(2)	0
Balance at end of period	20	28	20	28
Equity securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	125	93	133	83
Total gains (losses) included in: net income	(8)	1	(32)	1
Total gains (losses) included in: OCI	1	2	8	4
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	12	9	20
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	118	108	118	108
Short-term investments
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period		10		5
Total gains (losses) included in: net income		0		0
Total gains (losses) included in: OCI		0		0
Transfers into Level 3		0		0
Transfers out of Level 3		0		0
Purchases		25		30
Sales		0		0
Issues		0		0
Settlements		0		0
Balance at end of period		35		35
Free-standing derivatives, net
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	(8)	(7)	(7)	(7)
Total gains (losses) included in: net income	1	1	0	1
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	(1)	0	(1)
Balance at end of period	(7)	(7)	(7)	(7)
Other assets
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation Calculation Rollforward
Balance at beginning of period	1	1	1	1
Total gains (losses) included in: net income	0	0	0	0
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	0	0
Settlements	0	0	0	0
Balance at end of period	1	1	1	1
Derivatives embedded in life and annuity contracts
Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation Calculation
Balance at the beginning of the period	(313)	(326)	(299)	(323)
Total gains (losses) included in: net income	7	9	(8)	5
Total gains (losses) included in: OCI	0	0	0	0
Transfers into Level 3	0	0	0	0
Transfers out of Level 3	0	0	0	0
Purchases	0	0	0	0
Sales	0	0	0	0
Issues	0	0	(1)	(1)
Settlements	2	2	4	4
Balance at the end of the period	$ (304)	$ (315)	$ (304)	$ (315)

Derivative Financial Instruments (Details)	6 Months Ended
Derivative Financial Instruments (Details)	Jun. 30, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract shares
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Assumed recoveries under sale of credit protection	$ 0
Cash and securities pledged in the form of margin deposits	14,000,000
Derivatives, Fair Value
Total asset derivatives, Notional amount	566,000,000	$ 1,568,000,000
Total liability derivatives, Notional amount	3,574,000,000	3,409,000,000
Total derivatives, Notional amount	$ 4,140,000,000	$ 4,977,000,000
Total asset derivatives, Number of contracts \| contract	4,913	5,627
Total liability derivatives, Number of contracts \| contract	6,350	4,406
Total derivatives, Number of contracts \| contract	11,263	10,033
Derivative assets net amount on balance sheet	$ 55,000,000	$ 61,000,000
Asset derivatives gross amount	80,000,000	63,000,000
Asset derivatives, gross liability	(25,000,000)	(2,000,000)
Derivative liabilities net amount on balance sheet	(333,000,000)	(323,000,000)
Total derivatives, Fair value, net	(278,000,000)	(262,000,000)
Liability derivatives, gross asset	12,000,000	6,000,000
Liability derivatives, Gross liability	(345,000,000)	$ (329,000,000)
Number of stock rights and warrants held by the company related to derivative contracts (in shares) \| shares		220
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	536,000,000	$ 1,523,000,000
Total liability derivatives, Notional amount	$ 3,555,000,000	$ 3,390,000,000
Total asset derivatives, Number of contracts \| contract	4,913	5,627
Total liability derivatives, Number of contracts \| contract	6,350	4,406
Derivative assets net amount on balance sheet	$ 53,000,000	$ 55,000,000
Asset derivatives gross amount	78,000,000	57,000,000
Asset derivatives, gross liability	(25,000,000)	(2,000,000)
Derivative liabilities net amount on balance sheet	(336,000,000)	(327,000,000)
Liability derivatives, gross asset	9,000,000	2,000,000
Liability derivatives, Gross liability	(345,000,000)	(329,000,000)
Interest rate swap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	85,000,000	85,000,000
Derivative liabilities net amount on balance sheet	0	0
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	0	0
Foreign currency swap agreements \| Other investments \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	30,000,000	45,000,000
Derivative assets net amount on balance sheet	2,000,000	6,000,000
Asset derivatives gross amount	2,000,000	6,000,000
Asset derivatives, gross liability	0	0
Foreign currency swap agreements \| Other liabilities & accrued expenses \| Derivatives designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	19,000,000	19,000,000
Derivative liabilities net amount on balance sheet	3,000,000	4,000,000
Liability derivatives, gross asset	3,000,000	4,000,000
Liability derivatives, Gross liability	0	0
Interest rate cap agreements \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	24,000,000	42,000,000
Derivative assets net amount on balance sheet	0	0
Asset derivatives gross amount	0	0
Asset derivatives, gross liability	0	0
Interest rate cap agreements \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	51,000,000	72,000,000
Derivative liabilities net amount on balance sheet	1,000,000	1,000,000
Liability derivatives, gross asset	1,000,000	1,000,000
Liability derivatives, Gross liability	0	0
Options and futures \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0	$ 0
Total liability derivatives, Number of contracts \| contract	6,350	4,406
Derivative liabilities net amount on balance sheet	$ (21,000,000)	$ (7,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	(21,000,000)	(7,000,000)
Options and warrants \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	4,106	3,730
Derivative assets net amount on balance sheet	$ 66,000,000	$ 44,000,000
Asset derivatives gross amount	66,000,000	44,000,000
Asset derivatives, gross liability	0	0
Financial futures contracts \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	807	1,897
Derivative assets net amount on balance sheet	$ 2,000,000	$ 2,000,000
Asset derivatives gross amount	2,000,000	2,000,000
Asset derivatives, gross liability	0	0
Foreign currency forwards \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	399,000,000	185,000,000
Derivative assets net amount on balance sheet	(17,000,000)	1,000,000
Asset derivatives gross amount	8,000,000	2,000,000
Asset derivatives, gross liability	(25,000,000)	(1,000,000)
Foreign currency forwards \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	434,000,000	361,000,000
Derivative liabilities net amount on balance sheet	(1,000,000)	(12,000,000)
Liability derivatives, gross asset	7,000,000	1,000,000
Liability derivatives, Gross liability	(8,000,000)	(13,000,000)
Guaranteed accumulation benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	429,000,000	481,000,000
Derivative liabilities net amount on balance sheet	(40,000,000)	(38,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	(40,000,000)	(38,000,000)
Guaranteed withdrawal benefits \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	304,000,000	332,000,000
Derivative liabilities net amount on balance sheet	(14,000,000)	(14,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	(14,000,000)	(14,000,000)
Equity-indexed and forward starting options in life and annuity product contracts \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,754,000,000	1,781,000,000
Derivative liabilities net amount on balance sheet	(250,000,000)	(247,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	(250,000,000)	(247,000,000)
Other embedded derivative financial instruments \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		1,000,000,000
Derivative assets net amount on balance sheet		0
Asset derivatives gross amount		0
Asset derivatives, gross liability		0
Other embedded derivative financial instruments \| Contractholder funds \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	85,000,000	85,000,000
Derivative liabilities net amount on balance sheet	0	0
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	0	0
Credit default swaps – buying protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	30,000,000	112,000,000
Derivative assets net amount on balance sheet	0	4,000,000
Asset derivatives gross amount	0	5,000,000
Asset derivatives, gross liability	0	(1,000,000)
Credit default swaps – buying protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	248,000,000	88,000,000
Derivative liabilities net amount on balance sheet	(4,000,000)	(2,000,000)
Liability derivatives, gross asset	0	0
Liability derivatives, Gross liability	(4,000,000)	(2,000,000)
Credit default swaps – selling protection \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	80,000,000	150,000,000
Derivative assets net amount on balance sheet	1,000,000	2,000,000
Asset derivatives gross amount	1,000,000	2,000,000
Asset derivatives, gross liability	0	0
Credit default swaps – selling protection \| Other liabilities & accrued expenses \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total liability derivatives, Notional amount	165,000,000	105,000,000
Derivative liabilities net amount on balance sheet	(7,000,000)	(8,000,000)
Liability derivatives, gross asset	1,000,000	0
Liability derivatives, Gross liability	(8,000,000)	(8,000,000)
Other contracts \| Other investments \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount		31,000,000
Derivative assets net amount on balance sheet		1,000,000
Asset derivatives gross amount		1,000,000
Asset derivatives, gross liability		0
Other contracts \| Other assets \| Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	3,000,000	3,000,000
Derivative assets net amount on balance sheet	1,000,000	1,000,000
Asset derivatives gross amount	1,000,000	1,000,000
Asset derivatives, gross liability	$ 0	$ 0

Derivative Financial Instruments (Details 2) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Asset derivatives
Asset derivatives gross amount	$ 80	$ 63
Asset derivatives, gross liability	(25)	(2)
Derivative assets net amount on balance sheet	55	61
Liability derivatives
Liability derivatives gross amount	(345)	(329)
Liability derivatives, gross asset	12	6
Derivative liabilities net amount on balance sheet	(333)	(323)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	22	21
Asset derivatives, gross liability	(37)	(8)
Derivative, collateral, right to reclaim cash	19
Derivative asset offsets under cash collateral received		(5)
Derivative assets net amount on balance sheet	4	8
Derivative assets pledged under securities collateral	0	(4)
Derivative asset, fair value, amount offset against collateral	4	4
Liability derivatives
Liability derivatives gross amount	(45)	(25)
Liability derivatives, gross asset	37	8
Derivative liability offsets under cash collateral pledged	(4)	(1)
Derivative liabilities net amount on balance sheet	(12)	(18)
Derivative liabilities received under securities collateral	9	9
Derivative liability, fair value, amount offset against collateral	$ (3)	$ (9)

Derivative Financial Instruments (Details 3) - USD ($)	3 Months Ended		6 Months Ended
Derivative Financial Instruments (Details 3) - USD ($)	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge losses to be reclassified from AOCI during the next twelve months	$ 1,000,000		$ 1,000,000
Net gain (loss) recognized in earnings during the reporting period representing the amount of the fair value of the hedges' ineffectiveness.	0	$ 0	0	$ 0
Effective portion
Gain (Loss) recognized in OCI on derivatives during the period	1,000,000	(1,000,000)	(1,000,000)	7,000,000
Loss recognized in OCI on derivatives during the term of the hedging relationship	2,000,000	3,000,000	2,000,000	3,000,000
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(2,000,000)	30,000,000	(37,000,000)	(3,000,000)
Net investment income \| Cash flow hedges \| Reclassification out of Accumulated Other Comprehensive Income
Derivative Instruments, Gain (Loss)
(Loss) gain reclassified from AOCI into income	0	(1,000,000)	0	(1,000,000)
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1,000,000)	5,000,000	(10,000,000)	(23,000,000)
Realized capital gains and losses \| Cash flow hedges \| Reclassification out of Accumulated Other Comprehensive Income
Derivative Instruments, Gain (Loss)
(Loss) gain reclassified from AOCI into income	3,000,000	0	3,000,000	3,000,000
Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	14,000,000	0	(2,000,000)	0
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(3,000,000)	12,000,000	(8,000,000)	13,000,000
Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(12,000,000)	13,000,000	(17,000,000)	7,000,000
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1,000,000)	2,000,000	(1,000,000)	2,000,000
Interest rate contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1,000,000)	2,000,000	(1,000,000)	2,000,000
Interest rate contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Interest rate contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Interest rate contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	1,000,000	1,000,000	(6,000,000)	3,000,000
Equity and index contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(5,000,000)	0	(5,000,000)	(5,000,000)
Equity and index contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Equity and index contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	2,000,000	0	(5,000,000)	4,000,000
Equity and index contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	4,000,000	1,000,000	4,000,000	4,000,000
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	9,000,000	11,000,000	(5,000,000)	8,000,000
Embedded derivative financial instruments \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Embedded derivative financial instruments \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	14,000,000	0	(2,000,000)	0
Embedded derivative financial instruments \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(5,000,000)	11,000,000	(3,000,000)	8,000,000
Embedded derivative financial instruments \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Foreign currency contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(10,000,000)	15,000,000	(20,000,000)	(17,000,000)
Foreign currency contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	6,000,000	3,000,000	1,000,000	(20,000,000)
Foreign currency contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Foreign currency contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0	0
Foreign currency contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(16,000,000)	12,000,000	(21,000,000)	3,000,000
Credit default contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1,000,000)		(5,000,000)
Credit default contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(1,000,000)		(5,000,000)
Credit default contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		0
Credit default contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0		0
Credit default contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 0		$ 0
Other contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1,000,000		1,000,000
Other contracts \| Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0		0
Other contracts \| Life and annuity contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		0		0
Other contracts \| Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		1,000,000		1,000,000
Other contracts \| Operating costs and expenses
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		$ 0		$ 0

Guarantees and Contingent Liabilities (Details)			6 Months Ended	12 Months Ended	18 Months Ended
Guarantees and Contingent Liabilities (Details)	May 20, 2016 Plaintiff	Jun. 17, 2015 Plaintiff	Jun. 30, 2016 USD ($) claim employee defense	Dec. 31, 2001 employee	Jun. 30, 2016 USD ($) Plaintiff	Dec. 31, 2015 USD ($)	Aug. 19, 2015 opinion
Guarantees:
Limitations or indemnifications of reinsurance agreements			$ 0		$ 0
Proceedings:
Number of class action cases \| claim			2
Opinions, number \| opinion							3
Number of former employee agents plaintiffs seek benefits for \| employee				6,300
Loss contingency, number of plaintiffs	499	10	32		459
Number of defenses \| defense			2
Reserves for asbestos claims			$ 890,000,000		$ 890,000,000	$ 960,000,000
Reinsurance recoverables for asbestos claims			443,000,000		443,000,000	458,000,000
Reserves for environmental claims			173,000,000		173,000,000	179,000,000
Reinsurance recoverables for environmental claims			$ 42,000,000		$ 42,000,000	$ 43,000,000
Percentage of net asbestos and environmental reserves that were for incurred but not reported estimated losses			55.00%		55.00%	57.00%
Minimum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued			$ 0
Maximum
Proceedings:
Loss contingencies, reasonably possible pretax loss exposure in excess of the amount accrued			875,000,000
Residual guarantee
Guarantees:
Potential leased automobiles residual value			$ 46,000,000		$ 46,000,000
Guarantee obligations term, low end of range			1 year
Guarantee obligations term, high end of range			4 years
Against Allstate
Proceedings:
Opinions, number \| opinion							2
In Favor of Allstate
Proceedings:
Opinions, number \| opinion							1
Signed Releases Knowingly and Voluntarily \| Judicial Ruling
Proceedings:
Loss contingency, number of plaintiffs \| Plaintiff		2
Did Not Sign Releases Knowingly and Voluntarily \| Judicial Ruling
Proceedings:
Loss contingency, number of plaintiffs \| Plaintiff		8

Reporting Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Reporting Segments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information
Property-liability insurance premiums	$ 7,814	$ 7,549	$ 15,537	$ 14,975
Life and annuity premiums and contract charges	564	536	1,130	1,073
Net investment income	762	789	1,493	1,639
Realized capital gains and losses	24	108	(125)	247
Total revenues	9,164	8,982	18,035	17,934
Property-Liability
Segment Reporting Information
Property-liability insurance premiums	7,814	7,549	15,537	14,975
Net investment income	316	292	618	650
Realized capital gains and losses	26	49	(73)	77
Total revenues	8,156	7,890	16,082	15,702
Property-Liability \| Auto
Segment Reporting Information
Property-liability insurance premiums	5,306	5,086	10,526	10,065
Property-Liability \| Homeowners
Segment Reporting Information
Property-liability insurance premiums	1,815	1,775	3,625	3,536
Property-Liability \| Other personal lines
Segment Reporting Information
Property-liability insurance premiums	424	423	845	843
Property-Liability \| Commercial lines
Segment Reporting Information
Property-liability insurance premiums	127	128	256	253
Property-Liability \| Other business lines
Segment Reporting Information
Property-liability insurance premiums	142	137	285	278
Allstate Protection
Segment Reporting Information
Property-liability insurance premiums	7,814	7,549	15,537	14,975
Discontinued Lines and Coverages
Segment Reporting Information
Property-liability insurance premiums	0	0	0	0
Allstate Financial
Segment Reporting Information
Life and annuity premiums and contract charges	564	536	1,130	1,073
Net investment income	435	489	854	973
Realized capital gains and losses	0	59	(49)	170
Total revenues	999	1,084	1,935	2,216
Allstate Financial \| Total life and annuity premiums
Segment Reporting Information
Life and annuity premiums and contract charges	353	326	707	654
Allstate Financial \| Traditional life insurance
Segment Reporting Information
Life and annuity premiums and contract charges	139	131	277	263
Allstate Financial \| Accident and health insurance
Segment Reporting Information
Life and annuity premiums and contract charges	214	195	430	391
Allstate Financial \| Total contract charges
Segment Reporting Information
Life and annuity premiums and contract charges	211	210	423	419
Allstate Financial \| Interest-sensitive life insurance
Segment Reporting Information
Life and annuity premiums and contract charges	208	207	417	413
Allstate Financial \| Fixed annuities
Segment Reporting Information
Life and annuity premiums and contract charges	3	3	6	6
Corporate and Other
Segment Reporting Information
Net investment income	11	8	21	16
Realized capital gains and losses	(2)	0	(3)	0
Service fees	1	1	2	2
Total Corporate and Other before reclassification of service fees	10	9	20	18
Reclassification of service fees	(1)	(1)	(2)	(2)
Total revenues	$ 9	$ 8	$ 18	$ 16

Reporting Segments (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Reporting Segments (Details 2) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property-Liability
Net investment income	$ 762	$ 789	$ 1,493	$ 1,639
Allstate Financial
Life and annuity premiums and contract charges	564	536	1,130	1,073
Restructuring and related charges	(11)	(19)	(16)	(23)
Corporate and Other
Net income applicable to common shareholders	242	326	459	974
Income tax expense	105	171	214	575
Allstate Protection
Property-Liability
Underwriting income	(64)	(8)	63	461
Discontinued Lines and Coverages
Property-Liability
Underwriting income	(2)	(2)	(4)	(4)
Property-Liability
Property-Liability
Underwriting income	(66)	(10)	59	457
Net investment income	316	292	618	650
Income tax (expense) benefit on operations	(70)	(92)	(211)	(397)
Realized capital gains and losses, after-tax	18	31	(46)	49
Allstate Financial
Realized capital gains and losses, after-tax	18	31	(46)	49
Gain (loss) on disposition of operations, after-tax	0	1	0	1
Corporate and Other
Realized capital gains and losses, after-tax	18	31	(46)	49
Net income applicable to common shareholders	198	222	420	760
Allstate Financial
Property-Liability
Net investment income	435	489	854	973
Income tax (expense) benefit on operations	(56)	(67)	(104)	(129)
Realized capital gains and losses, after-tax	0	38	(32)	110
Allstate Financial
Life and annuity premiums and contract charges	564	536	1,130	1,073
Contract benefits and interest credited to contractholder funds	(633)	(637)	(1,272)	(1,270)
Operating costs and expenses and amortization of deferred policy acquisition costs	(189)	(180)	(383)	(372)
Restructuring and related charges	(1)	(2)	(1)	(2)
Operating income (loss)	120	139	224	273
Realized capital gains and losses, after-tax	0	38	(32)	110
Valuation changes on embedded derivatives that are not hedged, after-tax	(4)	4	(8)	(1)
DAC and DSI amortization related to realized capital gains and losses and valuation changes on embedded derivatives that are not hedged, after-tax	(1)	(2)	(2)	(2)
Gain (loss) on disposition of operations, after-tax	1	0	2	(1)
Change in accounting for investments in qualified affordable housing projects, after-tax	0	0	0	(17)
Corporate and Other
Operating income (loss)	120	139	224	273
Realized capital gains and losses, after-tax	0	38	(32)	110
Net income applicable to common shareholders	116	179	184	362
Corporate and Other
Segment Reporting Information
Fees and Commissions	1	1	2	2
Property-Liability
Net investment income	11	8	21	16
Income tax (expense) benefit on operations	26	28	51	54
Realized capital gains and losses, after-tax	(1)	0	(1)	0
Allstate Financial
Operating income (loss)	(71)	(75)	(144)	(148)
Realized capital gains and losses, after-tax	(1)	0	(1)	0
Corporate and Other
Operating costs and expenses	(80)	(83)	(160)	(162)
Preferred stock dividends	(29)	(29)	(58)	(58)
Operating income (loss)	(71)	(75)	(144)	(148)
Realized capital gains and losses, after-tax	(1)	0	(1)	0
Net income applicable to common shareholders	$ (72)	$ (75)	$ (145)	(148)
Accounting Standards Update 2014-01 \| Property-Liability
Corporate and Other
Income tax expense				$ 28

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pre-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$ 663	$ (1,003)	$ 1,381	$ (528)
Less: reclassification adjustment of realized capital gains and losses	11	100	(163)	251
Unrealized net capital gains and losses	652	(1,103)	1,544	(779)
Unrealized foreign currency translation adjustments	7	(13)	29	(55)
Unrecognized pension and other postretirement benefit cost arising during the period	1	(3)	(7)	8
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(24)	(33)	(48)	(65)
Unrecognized pension and other postretirement benefit cost	25	30	41	73
Other comprehensive income (loss)	684	(1,086)	1,614	(761)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(232)	350	(483)	184
Less: reclassification adjustment of realized capital gains and losses	(4)	(35)	57	(88)
Unrealized net capital gains and losses	(228)	385	(540)	272
Unrealized foreign currency translation adjustments	(2)	4	(10)	19
Unrecognized pension and other postretirement benefit cost arising during the period	0	2	3	(1)
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	9	12	17	23
Unrecognized pension and other postretirement benefit cost	(9)	(10)	(14)	(24)
Other comprehensive income (loss), Tax	(239)	379	(564)	267
After-tax
Unrealized net holding gains and losses arising during the period, net of related offsets	431	(653)	898	(344)
Less: reclassification adjustment of realized capital gains and losses	7	65	(106)	163
Unrealized net capital gains and losses	424	(718)	1,004	(507)
Unrealized foreign currency translation adjustments	5	(9)	19	(36)
Unrecognized pension and other postretirement benefit cost arising during the period	1	(1)	(4)	7
Less: reclassification adjustment of net periodic cost recognized in operating costs and expenses	(15)	(21)	(31)	(42)
Unrecognized pension and other postretirement benefit cost	16	20	27	49
Other comprehensive income (loss), after-tax	$ 445	$ (707)	$ 1,050	$ (494)

Reserve for Property-Liability Insurance Claims and Claims Expense	6 Months Ended
	Jun. 30, 2016
Reserve for Property-Liability Insurance Claims and Claims Expense
Reserve for Property-Liability Insurance Claims and Claims Expense	Reserve for Property-Liability Insurance Claims and Claims Expense The Company establishes reserves for claims and claims expense on reported and unreported claims of insured losses. The Company’s reserving process takes into account known facts and interpretations of circumstances and factors including the Company’s experience with similar cases, actual claims paid, historical trends involving claim payment patterns and pending levels of unpaid claims, loss management programs, product mix and contractual terms, changes in law and regulation, judicial decisions, and economic conditions. In the normal course of business, the Company may also supplement its claims processes by utilizing third party adjusters, appraisers, engineers, inspectors, and other professionals and information sources to assess and settle catastrophe and non-catastrophe related claims. The effects of inflation are implicitly considered in the reserving process. Because reserves are estimates of unpaid portions of losses that have occurred, including incurred but not reported (“IBNR”) losses, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses may vary materially from recorded amounts, which are based on management’s best estimates. The highest degree of uncertainty is associated with reserves for losses incurred in the current reporting period as it contains the greatest proportion of losses that have not been reported or settled. The Company regularly updates its reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported in property-liability insurance claims and claims expense in the Condensed Consolidated Statements of Operations in the period such changes are determined. Management believes that the reserve for property-liability insurance claims and claims expense, net of reinsurance recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by the date of the Condensed Consolidated Statements of Financial Position based on available facts, technology, laws and regulations.

General (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available for sale equity securities, included in other comprehensive income	$ 341	$ 276
Limited partnership interests	5,407	4,874
Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available for sale equity securities, included in other comprehensive income	341
EMA limited partnerships
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests	4,120	$ 3,720
EMA limited partnerships \| Accounting Standards Update 2016-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Limited partnership interests	$ 202

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental Cash Flow Information [Abstract]
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnership interests and other investments, as well as mergers completed with equity securities	$ 270	$ 54
Non-cash financing activities related to the issuance of shares for vested restricted stock units	39	72
Debt acquired	34
Net change in proceeds managed
Net change in short-term investments	(56)	34
Operating cash flow (used) provided	(56)	34
Net change in cash	0	(3)
Net change in proceeds managed	(56)	31
Change in Liabilities for Collateral [Roll Forward]
Liabilities for collateral, beginning of period	(840)	(782)
Liabilities for collateral, end of period	(896)	(751)
Operating cash flow provided (used)	$ 56	$ (31)

Investments (Details 7) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 215	$ 233
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(140)	(147)
Municipal
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(8)	(9)
Corporate
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(7)	(7)
Asset-backed securities (“ABS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(23)	(23)
Residential mortgage-backed securities (“RMBS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	(95)	(102)
Commercial mortgage-backed securities (“CMBS”)
Other-than Impairment Losses Included in Accumulated Other Comprehensive Income
Amount of other-than-temporary impairment losses included in accumulated other comprehensive income for fixed income securities, not included in earnings	$ (7)	$ (6)

Fair Value of Assets and Liabilities (Details 2) - Derivatives embedded in life and annuity contracts - Equity-indexed and forward starting options - Stochastic cash flow model - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Quantitative information about the significant unobservable inputs
Liabilities, Fair Value Disclosure, Recurring	$ (250)	$ (247)
Weighted average projected option cost (as a percent)	1.75%	1.76%
Minimum
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	1.00%	1.00%
Maximum
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	2.20%	2.20%

Investments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Schedule of Available for Sale Securities
Amortized cost	$ 55,770	$ 57,201
Gross unrealized gains	2,683	1,707
Gross unrealized losses	(324)	(960)
Fair value	58,129	57,948
U.S. government and agencies
Schedule of Available for Sale Securities
Amortized cost	3,401	3,836
Gross unrealized gains	122	90
Gross unrealized losses	0	(4)
Fair value	3,523	3,922
Municipal
Schedule of Available for Sale Securities
Amortized cost	7,286	7,032
Gross unrealized gains	543	389
Gross unrealized losses	(11)	(20)
Fair value	7,818	7,401
Corporate
Schedule of Available for Sale Securities
Amortized cost	41,134	41,674
Gross unrealized gains	1,839	1,032
Gross unrealized losses	(273)	(879)
Fair value	42,700	41,827
Foreign government
Schedule of Available for Sale Securities
Amortized cost	1,091	983
Gross unrealized gains	61	50
Gross unrealized losses	0	0
Fair value	1,152	1,033
Asset-backed securities (“ABS”)
Schedule of Available for Sale Securities
Amortized cost	1,737	2,359
Gross unrealized gains	11	11
Gross unrealized losses	(22)	(43)
Fair value	1,726	2,327
Residential mortgage-backed securities (“RMBS”)
Schedule of Available for Sale Securities
Amortized cost	748	857
Gross unrealized gains	81	100
Gross unrealized losses	(11)	(10)
Fair value	818	947
Commercial mortgage-backed securities (“CMBS”)
Schedule of Available for Sale Securities
Amortized cost	352	438
Gross unrealized gains	23	32
Gross unrealized losses	(7)	(4)
Fair value	368	466
Redeemable preferred stock
Schedule of Available for Sale Securities
Amortized cost	21	22
Gross unrealized gains	3	3
Gross unrealized losses	0	0
Fair value	$ 24	$ 25

Investments (Details 3) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments (Details 3) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net Investment Income:
Investment income, before expense	$ 803	$ 825	$ 1,578	$ 1,715
Investment expense	(41)	(36)	(85)	(76)
Net investment income	762	789	1,493	1,639
Fixed income securities
Net Investment Income:
Investment income, before expense	520	567	1,038	1,135
Equity securities
Net Investment Income:
Investment income, before expense	44	31	72	54
Mortgage loans
Net Investment Income:
Investment income, before expense	53	57	106	112
Limited partnership interests
Net Investment Income:
Investment income, before expense	126	118	247	316
Short-term investments
Net Investment Income:
Investment income, before expense	3	3	7	4
Other
Net Investment Income:
Investment income, before expense	$ 57	$ 49	$ 108	$ 94

Investments (Details 4) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments (Details 4) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 24	$ 108	$ (125)	$ 247
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	24	60	(47)	140
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	11	48	(79)	126
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	1	1	1	1
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	(13)	(3)	13	3
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	2	5	(7)	(20)
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ (1)	$ (3)	$ (6)	$ (3)

Investments (Details 5) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments (Details 5) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Investments [Abstract]
Impairment write-downs	$ (63)	$ (11)	$ (122)	$ (30)
Change in intent write-downs	(16)	(32)	(38)	(62)
Net OTTI losses recognized in earnings	(79)	(43)	(160)	(92)
Sales and other	104	146	45	362
Valuation and settlements of derivative instruments	(1)	5	(10)	(23)
Total realized capital gains and losses	24	108	(125)	247
Fixed income and equity securities
Schedule of Available for Sale Securities
Gross gains on sales of fixed income securities	163	194	306	471
Gross loss on sales of fixed income securities	$ 74	$ 46	$ 285	$ 121

Investments (Details 6) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	$ (77)	$ (47)	$ (168)	$ (100)
Included in OCI	(2)	4	8	8
Net OTTI losses recognized in earnings	(79)	(43)	(160)	(92)
Fixed income securities
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	(1)	(8)	(27)	(17)
Included in OCI	(2)	4	8	8
Net OTTI losses recognized in earnings	(3)	(4)	(19)	(9)
Municipal
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses			0	(4)
Included in OCI			0	4
Net OTTI losses recognized in earnings			0	0
Corporate
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	(1)	(5)	(17)	(10)
Included in OCI	0	4	7	4
Net OTTI losses recognized in earnings	(1)	(1)	(10)	(6)
Asset-backed securities (“ABS”)
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	0	(3)	(6)	(4)
Included in OCI	(1)	0	0	1
Net OTTI losses recognized in earnings	(1)	(3)	(6)	(3)
Residential mortgage-backed securities (“RMBS”)
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses			0	1
Included in OCI			0	(1)
Net OTTI losses recognized in earnings			0	0
Commercial mortgage-backed securities (“CMBS”)
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	0	0	(4)	0
Included in OCI	(1)	0	1	0
Net OTTI losses recognized in earnings	(1)	0	(3)	0
Equity securities
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	(51)	(36)	(128)	(75)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	(51)	(36)	(128)	(75)
Limited partnership interests
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	(24)	0	(11)	(5)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	(24)	0	(11)	(5)
Other
Other-than-temporary impairment losses by asset type
Other-than-temporary impairment losses	(1)	(3)	(2)	(3)
Included in OCI	0	0	0	0
Net OTTI losses recognized in earnings	$ (1)	$ (3)	$ (2)	$ (3)

Investments (Details 8) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Investments (Details 8) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Credit Losses on Fixed Income Securities
Beginning balance	$ (350)	$ (378)	$ (392)	$ (380)
Additional credit loss for securities previously other-than-temporarily impaired	(3)	(2)	(11)	(3)
Additional credit loss for securities not previously other-than-temporarily impaired	0	(2)	(8)	(6)
Reduction in credit loss for securities disposed or collected	22	8	80	14
Change in credit loss due to accretion of increase in cash flows	0	2	0	3
Ending balance	$ (331)	$ (372)	$ (331)	$ (372)

Investments (Details 10) $ in Millions	6 Months Ended
Investments (Details 10) $ in Millions	Jun. 30, 2016 USD ($)
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 1,672
Amount recognized for:
Insurance reserves	0
DAC and DSI	(128)
Amounts recognized	(128)
Deferred income taxes	(540)
Increase in unrealized net capital gains and losses, after-tax	1,004
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(1)
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	1,612
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	65
Derivatives
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (4)

Investments (Details 12) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	$ 288
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	201
Limited partnership interests	5,407	$ 4,874
Fixed income and equity securities
Other details of unrealized loss
Unrealized losses	489	1,099
Investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	65
Unrealized losses	111	467
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	46
Below investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	144
Unrealized losses	213	493
Unrealized losses having loss of less than twenty percent, less than 12 months	76
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	69
Unrealized losses related to securities with unrealized loss position greater than 20% of cost or amortized cost, unrealized loss position of 12 or more consecutive months	18
Below Investment Grade Equity Securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of cost or amortized cost	86
Equity securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of cost or amortized cost	79
Unrealized losses	165	139
Equity-method limited partnerships
Other details of unrealized loss
Limited partnership interests	4,120	3,720
Carrying value
Other details of unrealized loss
Cost method limited partnerships	1,284	1,154
Carrying value \| Cost-method Investments
Other details of unrealized loss
Cost method limited partnerships	$ 1,280	$ 1,150

Investments (Details 13) - Mortgage loans, non-impaired - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	$ 4,447	$ 4,332
Below 1.0
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	43	64
1.0 - 1.25
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	309	382
1.26 - 1.50
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	1,221	1,219
Above 1.50
Financing Receivable, Impaired [Line Items]
Fixed rate mortgage loans	$ 2,874	$ 2,667

Investments (Details 15) - Mortgage loans, non-impaired - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate
Less than 90 days past due	$ 6	$ 0
Financing receivable, recorded investment, past due	6	0
Current loans	4,447	4,338
Total mortgage loans	4,453	4,338
Financing Receivables, Equal to Greater than 90 Days Past Due
Mortgage Loans on Real Estate
Financing receivable, recorded investment, past due	$ 0	$ 0

Fair Value of Assets and Liabilities (Details 5) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Financial assets
Mortgage loans	$ 4,453	$ 4,338
Financial liabilities
Long-term debt	5,109	5,124
Liability for collateral	896	840	$ 751	$ 782
Carrying value
Financial assets
Mortgage loans	4,453	4,338
Cost method limited partnerships	1,284	1,154
Bank loans	1,635	1,565
Agent loans	452	422
Financial liabilities
Contractholder funds on investment contracts	11,919	12,424
Long-term debt	5,109	5,124
Liability for collateral	896	840
Fair value
Financial assets
Mortgage loans	4,666	4,489
Cost method limited partnerships	1,511	1,450
Bank loans	1,614	1,527
Agent loans	444	408
Financial liabilities
Contractholder funds on investment contracts	12,420	12,874
Long-term debt	5,868	5,648
Liability for collateral	$ 896	$ 840

Derivative Financial Instruments (Details 4) $ in Millions	Jun. 30, 2016 USD ($) counter-party	Dec. 31, 2015 USD ($) counter-party
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash and securities pledged as collateral by counterparties	$ 6
Securities pledged as collateral to counterparties	30
Collateral posted under MNAs, credit-risk-contingent provisions in a liability position	(7)	$ (13)
Collateral already posted, aggregate fair value, without credit-risk-contingent features	$ 23
Credit Derivatives
Number of counter- parties \| counter-party	8	9
Notional amount	$ 339	$ 547
Credit exposure	8	17
Exposure, net of collateral	3	7
Gross liability fair value of contracts containing credit-risk-contingent features	25	21
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(14)	(3)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7)	(13)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 4	$ 5
AA-
Credit Derivatives
Number of counter- parties \| counter-party	2	0
Notional amount	$ 67	$ 0
Credit exposure	1	0
Exposure, net of collateral	$ 1	$ 0
A plus
Credit Derivatives
Number of counter- parties \| counter-party	1	1
Notional amount	$ 207	$ 82
Credit exposure	5	5
Exposure, net of collateral	$ 2	$ 0
A
Credit Derivatives
Number of counter- parties \| counter-party	3	5
Notional amount	$ 58	$ 375
Credit exposure	2	9
Exposure, net of collateral	$ 0	$ 6
A-
Credit Derivatives
Number of counter- parties \| counter-party	0	1
Notional amount	$ 0	$ 41
Credit exposure	0	3
Exposure, net of collateral	$ 0	$ 0
BBB+
Credit Derivatives
Number of counter- parties \| counter-party	2	2
Notional amount	$ 7	$ 49
Credit exposure	0	0
Exposure, net of collateral	$ 0	$ 1

Derivative Financial Instruments (Details 5) $ in Millions	6 Months Ended
Derivative Financial Instruments (Details 5) $ in Millions	Jun. 30, 2016 USD ($) entity	Dec. 31, 2015 USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Term of credit default swaps (in years)	5 years
The number of reference entities generally included in a CDX index \| entity	125
Credit Derivatives
Notional amount	$ 4,140	$ 4,977
Credit default contracts
Credit Derivatives
Notional amount	245	255
Fair value	(6)	(6)
Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	65	75
Fair value	1	1
Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	100
Fair value	(8)	(8)
Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	80	80
Fair value	1	1
AA \| Credit default contracts
Credit Derivatives
Notional amount	21	21
AA \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	20	20
AA \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
AA \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	1	1
A \| Credit default contracts
Credit Derivatives
Notional amount	29	30
A \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	10	10
A \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
A \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	19	20
BBB \| Credit default contracts
Credit Derivatives
Notional amount	185	197
BBB \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	35	45
BBB \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	100
BBB \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	50	52
BB and lower \| Credit default contracts
Credit Derivatives
Notional amount	10	7
BB and lower \| Credit default contracts \| Single name \| Corporate debt
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default contracts \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default contracts \| Index \| Corporate debt
Credit Derivatives
Notional amount	$ 10	$ 7

Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Reinsurance (Details) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Property-liability insurance claims and claims expense
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	$ 241	$ 229	$ 402	$ 334
Life and annuity contract benefits
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	80	50	147	127
Interest credited to contractholder funds
Reductions to costs and expenses due to reinsurance ceded amounts
Ceded losses incurred	6	7	11	13
Property-liability insurance premiums earned
Reductions to premiums and contract charges due to reinsurance premium ceded amounts
Property-liability insurance premiums earned	248	251	497	511
Life and annuity premiums and contract charges
Reductions to premiums and contract charges due to reinsurance premium ceded amounts
Life and annuity premiums and contract charges	$ 78	$ 85	$ 152	$ 170

Company Restructuring (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Company Restructuring (Details) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring and related charges	$ 11	$ 19	$ 16	$ 23

Company Restructuring (Details 2) $ in Millions	6 Months Ended
Company Restructuring (Details 2) $ in Millions	Jun. 30, 2016 USD ($)
Restructuring Reserve
Balance as of December 31, 2015	$ 2
Expense incurred	6
Adjustments to liability	0
Payments applied against liability	(3)
Balance as of June 30, 2016	5
Employee costs
Restructuring Reserve
Balance as of December 31, 2015	1
Expense incurred	6
Adjustments to liability	0
Payments applied against liability	(3)
Balance as of June 30, 2016	4
Cumulative amount incurred to date for active programs	77
Exit costs
Restructuring Reserve
Balance as of December 31, 2015	1
Expense incurred	0
Adjustments to liability	0
Payments applied against liability	0
Balance as of June 30, 2016	1
Cumulative amount incurred to date for active programs	$ 61

Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension benefits
Components of net periodic cost
Service cost	$ 28	$ 28	$ 56	$ 57
Interest cost	72	64	143	128
Expected return on plan assets	(100)	(106)	(199)	(212)
Amortization of prior service credit	(14)	(14)	(28)	(28)
Amortization of net actuarial loss (gain)	44	48	87	96
Settlement loss	8	6	16	12
Net periodic postretirement (credit) cost	38	26	75	53
Postretirement benefits
Components of net periodic cost
Service cost	3	3	5	6
Interest cost	5	5	9	11
Amortization of prior service credit	(6)	(5)	(11)	(11)
Amortization of net actuarial loss (gain)	(8)	(2)	(16)	(4)
Net periodic postretirement (credit) cost	$ (6)	$ 1	$ (13)	$ 2