View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Mar. 02, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	ALLSTATE LIFE INSURANCE CO
Entity Central Index Key	0000352736
Document Type	10-K
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		23,800
Entity Public Float			$ 0

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues
Premiums (net of reinsurance ceded of $167, $216 and $367)	$ 600	$ 589	$ 613
Contract charges (net of reinsurance ceded of $189, $176 and $251)	738	847	1,054
Net investment income	1,819	2,081	2,485
Realized capital gains and losses:
Total other-than-temporary impairment (“OTTI”) losses	(144)	(54)	(49)
OTTI losses reclassified to (from) other comprehensive income	16	(1)	(3)
Net OTTI losses recognized in earnings	(128)	(55)	(52)
Sales and other realized capital gains and losses	393	198	128
Total realized capital gains and losses	265	143	76
Total revenues	3,422	3,660	4,228
Costs and expenses
Contract benefits (net of reinsurance ceded of $237, $329 and $331)	1,406	1,452	1,606
Interest credited to contractholder funds (net of reinsurance ceded of $40, $27 and $27)	717	891	1,251
Amortization of deferred policy acquisition costs	151	162	240
Operating costs and expenses	273	310	434
Restructuring and related charges	0	2	6
Interest expense	16	16	23
Total costs and expenses	2,563	2,833	3,560
Gain (loss) on disposition of operations	3	(68)	(687)
Income (loss) from operations before income tax expense	862	759	(19)
Income tax expense	301	233	19
Net income (loss)	561	526	(38)
Other comprehensive (loss) income, after-tax
Change in unrealized net capital gains and losses	(854)	455	(707)
Change in unrealized foreign currency translation adjustments	(4)	(4)	2
Other comprehensive (loss) income, after-tax	(858)	451	(705)
Comprehensive (loss) income	$ (297)	$ 977	$ (743)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Premiums, reinsurance ceded	$ 167	$ 216	$ 367
Contract charges, reinsurance ceded	189	176	251
Contract benefits, reinsurance ceded	237	329	331
Interest credited to contractholder funds, reinsurance ceded	$ 40	$ 27	$ 27

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Investments
Fixed income securities, at fair value (amortized cost $23,770 and $25,822)	$ 24,629	$ 28,117
Mortgage loans	3,781	3,686
Equity securities, at fair value (cost $1,526 and $927)	1,542	970
Limited partnership interests	2,295	2,024
Short-term, at fair value (amortized cost $816 and $857)	816	857
Policy loans	572	616
Other	1,327	1,196
Total investments	34,962	37,466
Cash	104	146
Deferred policy acquisition costs	1,314	1,271
Reinsurance recoverable	2,871	2,586
Other assets	510	537
Separate Accounts	3,639	4,396
Total assets	43,678	46,735
Liabilities
Contractholder funds	20,542	21,816
Reserve for life-contingent contract benefits	11,394	11,566
Unearned premiums	5	6
Payable to affiliates, net	55	96
Other liabilities and accrued expenses	849	826
Deferred income taxes	986	1,407
Notes due to related parties	275	275
Separate Accounts	3,639	4,396
Total liabilities	37,745	40,388
Shareholder’s Equity
Common stock, $227 par value, 23,800 shares authorized and outstanding	5	5
Additional capital paid-in	1,990	1,990
Retained income	3,417	2,973
Unrealized net capital gains and losses:
Unrealized net capital gains and losses on fixed income securities with OTTI	41	47
Other unrealized net capital gains and losses	527	1,468
Unrealized adjustment to DAC, DSI and insurance reserves	(40)	(133)
Total unrealized net capital gains and losses	528	1,382
Unrealized foreign currency translation adjustments	(7)	(3)
Total accumulated other comprehensive income	521	1,379
Total shareholder’s equity	5,933	6,347
Total liabilities and shareholder’s equity	43,678	46,735
Series A
Shareholder’s Equity
Redeemable preferred stock	0	0
Series B
Shareholder’s Equity
Redeemable preferred stock	0	0
Non-affiliate
Investments
Reinsurance recoverable	2,407	2,586
Accrued investment income	278	333
Affiliate
Investments
Reinsurance recoverable	$ 464	$ 0

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fixed income securities, at fair value, amortized cost (in dollars)	$ 23,770	$ 25,822
Equity securities, at fair value, cost (in dollars)	1,526	927
Short-term, at fair value, amortized cost (in dollars)	$ 816	$ 857
Common stock, par value (in dollars per share)	$ 227	$ 227
Common stock, shares authorized	23,800	23,800
Common stock, shares outstanding	23,800	23,800
Series A
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized	1,500,000	1,500,000
Redeemable preferred stock, shares issued	0	0
Series B
Redeemable preferred stock, par value (in dollars per share)	$ 100	$ 100
Redeemable preferred stock, shares authorized	1,500,000	1,500,000
Redeemable preferred stock, shares issued	0	0

CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Millions	Total	Common stock	Additional capital paid-in	Retained income	Accumulated other comprehensive income
Balance, beginning of year at Dec. 31, 2012			$ 3,190	$ 2,485	$ 1,633
Increase (decrease) in equity
Return of capital			(500)
Net income (loss)	$ (38)			(38)
Dividends				0
Loss on reinsurance with an affiliate				0
Loss on sale of subsidiaries to affiliate				0
Change in unrealized net capital gains and losses	(707)				(707)
Change in unrealized foreign currency translation adjustments	2				2
Balance, end of year at Dec. 31, 2013	6,070	$ 5	2,690	2,447	928
Increase (decrease) in equity
Return of capital			(700)
Net income (loss)	526			526
Dividends				0
Loss on reinsurance with an affiliate				0
Loss on sale of subsidiaries to affiliate				0
Change in unrealized net capital gains and losses	455				455
Change in unrealized foreign currency translation adjustments	(4)				(4)
Balance, end of year at Dec. 31, 2014	6,347	5	1,990	2,973	1,379
Increase (decrease) in equity
Return of capital			0
Net income (loss)	561			561
Dividends				103
Loss on reinsurance with an affiliate				(12)
Loss on sale of subsidiaries to affiliate	(2)			(2)
Change in unrealized net capital gains and losses	(854)				(854)
Change in unrealized foreign currency translation adjustments	(4)				(4)
Balance, end of year at Dec. 31, 2015	$ 5,933	$ 5	$ 1,990	$ 3,417	$ 521

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities
Net income (loss)	$ 561	$ 526	$ (38)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Amortization and other non-cash items	(74)	(86)	(73)
Realized capital gains and losses	(265)	(143)	(76)
(Gain) loss on disposition of operations	(3)	68	687
Interest credited to contractholder funds	717	891	1,251
Changes in:
Policy benefits and other insurance reserves	(559)	(553)	(634)
Unearned premiums	0	(1)	(2)
Deferred policy acquisition costs	27	(1)	(14)
Reinsurance recoverables, net	16	(25)	(54)
Income taxes	27	121	33
Other operating assets and liabilities	(41)	(134)	(65)
Net cash provided by operating activities	406	663	1,015
Proceeds from sales
Fixed income securities	8,267	3,353	4,046
Equity securities	636	1,383	265
Limited partnership interests	481	521	387
Mortgage loans	6	10	24
Other investments	24	35	38
Investment collections
Fixed income securities	1,993	1,909	4,168
Mortgage loans	446	1,027	926
Other investments	69	46	88
Investment purchases
Fixed income securities	(8,272)	(3,232)	(4,348)
Equity securities	(1,264)	(1,612)	(453)
Limited partnership interests	(663)	(711)	(597)
Mortgage loans	(615)	(468)	(522)
Other investments	(220)	(306)	(81)
Change in short-term investments, net	77	79	(108)
Change in policy loans and other investments, net	(39)	60	76
Disposition of operations	20	345	0
Net cash provided by investing activities	946	2,439	3,909
Cash flows from financing activities
Contractholder fund deposits	901	1,065	2,062
Contractholder fund withdrawals	(2,278)	(3,407)	(6,520)
Dividends paid	(17)	0	0
Return of capital	0	(700)	(500)
Repayment of notes due to related parties	0	(7)	(214)
Net cash used in financing activities	(1,394)	(3,049)	(5,172)
Net (decrease) increase in cash	(42)	53	(248)
Cash at beginning of year	146	93	341
Cash at end of year	$ 104	$ 146	$ 93

General

12 Months Ended

Dec. 31, 2015

General

General

Basis of presentation

The accompanying consolidated financial statements include the accounts of Allstate Life Insurance Company (“ALIC”) and its wholly owned subsidiaries (collectively referred to as the “Company”). ALIC is wholly owned by Allstate Insurance Company (“AIC”), which is wholly owned by Allstate Insurance Holdings, LLC, a wholly owned subsidiary of The Allstate Corporation (the “Corporation”). These consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transactions have been eliminated.

To conform to the current year presentation, certain amounts in the prior year notes to consolidated financial statements have been reclassified.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Nature of operations

The Company sells traditional, interest-sensitive and variable life insurance products. The Company distributes its products through Allstate exclusive agencies and exclusive financial specialists. The Company also sells voluntary accident and health insurance through workplace enrolling independent agents in New York. The Company previously offered and continues to have in force fixed annuities such as deferred and immediate annuities, and institutional products consisting of funding agreements sold to unaffiliated trusts that use them to back medium-term notes.

The following table summarizes premiums and contract charges by product.



($ in millions)	2015		2014		2013
Premiums
Traditional life insurance	$	515	$	492	$	471
Immediate annuities with life contingencies	—		4		37
Accident and health insurance	85		93		105
Total premiums	600		589		613

Contract charges
Interest-sensitive life insurance	724		828		1,036
Fixed annuities	14		19		18
Total contract charges	738		847		1,054
Total premiums and contract charges	$	1,338	$	1,436	$	1,667

The Company, through several subsidiaries, is authorized to sell life insurance and retirement products in all 50 states, the District of Columbia and Puerto Rico. For 2015, the top geographic locations for direct statutory premiums and annuity considerations were New York, California, Texas, Illinois and Florida. No other jurisdiction accounted for more than 5% of statutory premiums and annuity considerations.

The Company has exposure to market risk as a result of its investment portfolio. Market risk is the risk that the Company will incur realized and unrealized net capital losses due to adverse changes in interest rates, credit spreads, equity prices or currency exchange rates. The Company’s primary market risk exposures are to changes in interest rates, credit spreads and equity prices. Interest rate risk is the risk that the Company will incur a loss due to adverse changes in interest rates relative to the interest rate characteristics of its interest bearing assets and liabilities. This risk arises from many of the Company’s primary activities, as it invests substantial funds in interest-sensitive assets and issues interest-sensitive liabilities. Interest rate risk includes risks related to changes in U.S. Treasury yields and other key risk-free reference yields. Credit spread risk is the risk that the Company will incur a loss due to adverse changes in credit spreads. This risk arises from many of the Company’s primary activities, as the Company invests substantial funds in spread-sensitive fixed income assets. Equity price risk is the risk that the Company will incur losses due to adverse changes in the general levels of the equity markets.

The Company monitors economic and regulatory developments that have the potential to impact its business. Federal and state laws and regulations affect the taxation of insurance companies and life insurance products. Congress and various state legislatures from time to time consider legislation that would reduce or eliminate the favorable policyholder tax treatment currently applicable to life insurance. Congress and various state legislatures also consider proposals to reduce the taxation of certain products or investments that may compete with life insurance. Legislation that increases the taxation on insurance products or reduces the taxation on competing products could lessen the advantage or create a disadvantage for certain of the Company’s products making them less competitive. Such proposals, if adopted, could have an adverse effect on the Company’s financial position or ability to sell such products and could result in the surrender of some existing contracts and policies. In addition, changes in the federal estate tax laws could negatively affect the demand for the types of life insurance used in estate planning.

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Investments Fixed income securities include bonds, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and redeemable preferred stocks. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available for sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes and related deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows. Mortgage loans are carried at unpaid principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Equity securities are designated as available for sale and are carried at fair value. The difference between cost and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income. Investments in limited partnership interests include interests in private equity funds and co-investments, real estate funds and joint ventures, and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in limited partnership interests are accounted for in accordance with the cost method of accounting; all other investments in limited partnership interests are accounted for in accordance with the equity method of accounting (“EMA”). Short-term investments, including money market funds, commercial paper and other short-term investments, are carried at fair value. Policy loans are carried at unpaid principal balances. Other investments primarily consist of bank loans, agent loans, notes due from related party and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Notes due from related party are carried at outstanding principal balances. Derivatives are carried at fair value. Investment income primarily consists of interest, dividends, income from limited partnership interests, and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS, RMBS and CMBS is determined considering estimated pay-downs, including prepayments, obtained from third party data sources and internal estimates. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS, RMBS and CMBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. Accrual of income is suspended for other-than-temporarily impaired fixed income securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for mortgage loans, bank loans and agent loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on investments on nonaccrual status are generally recorded as a reduction of carrying value. Income from cost method limited partnership interests is recognized upon receipt of amounts distributed by the partnerships. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ net income, including unrealized gains and losses, and is generally recognized on a three month delay due to the availability of the related financial statements. Realized capital gains and losses include gains and losses on investment sales, write-downs in value due to other-than-temporary declines in fair value, adjustments to valuation allowances on mortgage loans and agent loans, and periodic changes in fair value and settlements of certain derivatives including hedge ineffectiveness. Realized capital gains and losses on investment sales are determined on a specific identification basis. Derivative and embedded derivative financial instruments Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), interest rate caps, warrants, foreign currency swaps, foreign currency forwards and certain investment risk transfer reinsurance agreements. Derivatives required to be separated from the host instrument and accounted for as derivative financial instruments (“subject to bifurcation”) are embedded in certain fixed income securities, equity-indexed life and annuity contracts, reinsured variable annuity contracts and certain funding agreements. All derivatives are accounted for on a fair value basis and reported as other investments, other assets, other liabilities and accrued expenses or contractholder funds. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. The change in fair value of derivatives embedded in certain fixed income securities and subject to bifurcation is reported in realized capital gains and losses. The change in fair value of derivatives embedded in life and annuity product contracts and subject to bifurcation is reported in contract benefits or interest credited to contractholder funds. Cash flows from embedded derivatives subject to bifurcation and derivatives receiving hedge accounting are reported consistently with the host contracts and hedged risks, respectively, within the Consolidated Statements of Cash Flows. Cash flows from other derivatives are reported in cash flows from investing activities within the Consolidated Statements of Cash Flows. 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. The hedged item may be either all or a specific portion of a recognized asset, liability or an unrecognized firm commitment attributable to a particular risk for fair value hedges. At the inception of the hedge, the Company formally documents the hedging relationship and risk management objective and strategy. The documentation identifies the hedging instrument, the hedged item, the nature of the risk being hedged and the methodology used to assess the effectiveness of the hedging instrument in offsetting the exposure to changes in the hedged item’s fair value attributable to the hedged risk. For a cash flow hedge, this documentation includes the exposure to changes in the variability in cash flows attributable to the hedged risk. The Company does not exclude any component of the change in fair value of the hedging instrument from the effectiveness assessment. At each reporting date, the Company confirms that the hedging instrument continues to be highly effective in offsetting the hedged risk. Ineffectiveness in fair value hedges and cash flow hedges, if any, is reported in realized capital gains and losses. Fair value hedges The change in fair value of hedging instruments used in fair value hedges of investment assets or a portion thereof is reported in net investment income, together with the change in fair value of the hedged items. The change in fair value of hedging instruments used in fair value hedges of contractholder funds liabilities or a portion thereof is reported in interest credited to contractholder funds, together with the change in fair value of the hedged items. Accrued periodic settlements on swaps are reported together with the changes in fair value of the swaps in net investment income or interest credited to contractholder funds. The amortized cost for fixed income securities, the carrying value for mortgage loans or the carrying value of the hedged liability is adjusted for the change in fair value of the hedged risk. Cash flow hedges For hedging instruments used in cash flow hedges, the changes in fair value of the derivatives representing the effective portion of the hedge are reported in accumulated other comprehensive income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged or forecasted transaction affects income. Accrued periodic settlements on derivatives used in cash flow hedges are reported in net investment income. The amount reported in accumulated other comprehensive income for a hedged transaction is limited to the lesser of the cumulative gain or loss on the derivative less the amount reclassified to income, or the cumulative gain or loss on the derivative needed to offset the cumulative change in the expected future cash flows on the hedged transaction from inception of the hedge less the derivative gain or loss previously reclassified from accumulated other comprehensive income to income. If the Company expects at any time that the loss reported in accumulated other comprehensive income would lead to a net loss on the combination of the hedging instrument and the hedged transaction which may not be recoverable, a loss is recognized immediately in realized capital gains and losses. If an impairment loss is recognized on an asset or an additional obligation is incurred on a liability involved in a hedge transaction, any offsetting gain in accumulated other comprehensive income is reclassified and reported together with the impairment loss or recognition of the obligation. Termination of hedge accounting If, subsequent to entering into a hedge transaction, the derivative becomes ineffective (including if the hedged item is sold or otherwise extinguished, the occurrence of a hedged forecasted transaction is no longer probable or the hedged asset becomes other-than-temporarily impaired), the Company may terminate the derivative position. The Company may also terminate derivative instruments or redesignate them as non-hedge as a result of other events or circumstances. If the derivative instrument is not terminated when a fair value hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a fair value hedge is no longer effective, is redesignated as non-hedge or when the derivative has been terminated, the fair value gain or loss on the hedged asset, liability or portion thereof which has already been recognized in income while the hedge was in place and used to adjust the amortized cost for fixed income securities, the carrying value for mortgage loans or the carrying value of the hedged liability, is amortized over the remaining life of the hedged asset, liability or portion thereof, and reflected in net investment income or interest credited to contractholder funds beginning in the period that hedge accounting is no longer applied. If the hedged item in a fair value hedge is an asset that has become other-than-temporarily impaired, the adjustment made to the amortized cost for fixed income securities or the carrying value for mortgage loans is subject to the accounting policies applied to other-than-temporarily impaired assets. When a derivative instrument used in a cash flow hedge of an existing asset or liability is no longer effective or is terminated, the gain or loss recognized on the derivative is reclassified from accumulated other comprehensive income to income as the hedged risk impacts income. If the derivative instrument is not terminated when a cash flow hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a derivative instrument used in a cash flow hedge of a forecasted transaction is terminated because it is probable the forecasted transaction will not occur, the gain or loss recognized on the derivative is immediately reclassified from accumulated other comprehensive income to realized capital gains and losses in the period that hedge accounting is no longer applied. Non-hedge derivative financial instruments For derivatives for which hedge accounting is not applied, the income statement effects, including fair value gains and losses and accrued periodic settlements, are reported either in realized capital gains and losses or in a single line item together with the results of the associated asset or liability for which risks are being managed. Securities loaned The Company’s business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions are reinvested in short-term investments. These transactions are short-term in nature, usually 30 days or less. The Company receives cash collateral for securities loaned in an amount generally equal to 102% of the fair value of securities and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to repossess the securities loaned on short notice. Recognition of premium revenues and contract charges, and related benefits and interest credited Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Voluntary accident and health insurance products are expected to remain in force for an extended period and therefore are primarily classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in contract benefits and recognized in relation to premiums, so that profits are recognized over the life of the policy. Immediate annuities with life contingencies, including certain structured settlement annuities, provide insurance protection over a period that extends beyond the period during which premiums are collected. Premiums from these products are recognized as revenue when received at the inception of the contract. Benefits and expenses are recognized in relation to premiums. Profits from these policies come from investment income, which is recognized over the life of the contract. Interest-sensitive life contracts, such as universal life and single premium life, are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and contract charges assessed against the contractholder account balance. Premiums from these contracts are reported as contractholder fund deposits. Contract charges consist of fees assessed against the contractholder account balance for the cost of insurance (mortality risk), contract administration and surrender of the contract prior to contractually specified dates. These contract charges are recognized as revenue when assessed against the contractholder account balance. Contract benefits include life-contingent benefit payments in excess of the contractholder account balance. Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, including market value adjusted annuities, equity-indexed annuities and immediate annuities without life contingencies, and funding agreements (primarily backing medium-term notes) are considered investment contracts. Consideration received for such contracts is reported as contractholder fund deposits. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for maintenance, administration and surrender of the contract prior to contractually specified dates, and are recognized when assessed against the contractholder account balance. Interest credited to contractholder funds represents interest accrued or paid on interest-sensitive life and investment contracts. Crediting rates for certain fixed annuities and interest-sensitive life contracts are adjusted periodically by the Company to reflect current market conditions subject to contractually guaranteed minimum rates. Crediting rates for indexed life and annuities and indexed funding agreements are generally based on a specified interest rate index or an equity index, such as the Standard & Poor’s (“S&P”) 500 Index. Interest credited also includes amortization of DSI expenses. DSI is amortized into interest credited using the same method used to amortize DAC. Contract charges for variable life and variable annuity products consist of fees assessed against the contractholder account balances for contract maintenance, administration, mortality, expense and surrender of the contract prior to contractually specified dates. Contract benefits incurred for variable annuity products include guaranteed minimum death, income, withdrawal and accumulation benefits. Substantially all of the Company’s variable annuity business is ceded through reinsurance agreements and the contract charges and contract benefits related thereto are reported net of reinsurance ceded. Deferred policy acquisition and sales inducement costs Costs that are related directly to the successful acquisition of new or renewal life insurance and investment contracts are deferred and recorded as DAC. These costs are principally agents’ and brokers’ remuneration and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Amortization of DAC is included in amortization of deferred policy acquisition costs and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds. For traditional life insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC for these policies on an aggregate basis using actual experience. The Company aggregates all traditional life insurance products and immediate annuities with life contingencies in the analysis. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. For interest-sensitive life insurance and fixed annuities, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life and 5-10 years for fixed annuities. The cumulative DAC and DSI amortization is reestimated and adjusted by a cumulative charge or credit to income when there is a difference between the incidence of actual versus expected gross profits in a reporting period or when there is a change in total EGP. When DAC or DSI amortization or a component of gross profits for a quarterly period is potentially negative (which would result in an increase of the DAC or DSI balance) as a result of negative AGP, the specific facts and circumstances surrounding the potential negative amortization are considered to determine whether it is appropriate for recognition in the consolidated financial statements. Negative amortization is only recorded when the increased DAC or DSI balance is determined to be recoverable based on facts and circumstances. Recapitalization of DAC and DSI is limited to the originally deferred costs plus interest. AGP and EGP primarily consist of the following components: contract charges for the cost of insurance less mortality costs and other benefits; investment income and realized capital gains and losses less interest credited; and surrender and other contract charges less maintenance expenses. The principal assumptions for determining the amount of EGP are persistency, mortality, expenses, investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of any hedges. For products whose supporting investments are exposed to capital losses in excess of the Company’s expectations which may cause periodic AGP to become temporarily negative, EGP and AGP utilized in DAC and DSI amortization may be modified to exclude the excess capital losses. The Company performs quarterly reviews of DAC and DSI recoverability for interest-sensitive life and fixed annuity contracts in the aggregate using current assumptions. If a change in the amount of EGP is significant, it could result in the unamortized DAC or DSI not being recoverable, resulting in a charge which is included as a component of amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The DAC and DSI balances presented include adjustments to reflect the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized capital gains or losses in the respective product investment portfolios were actually realized. The adjustments are recorded net of tax in accumulated other comprehensive income. DAC, DSI and deferred income taxes determined on unrealized capital gains and losses and reported in accumulated other comprehensive income recognize the impact on shareholder’s equity consistently with the amounts that would be recognized in the income statement on realized capital gains and losses. Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment or life contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life and investment contracts, the EGP of the replacement contracts are treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The costs assigned to the right to receive future cash flows from certain business purchased from other insurers are also classified as DAC in the Consolidated Statements of Financial Position. The costs capitalized represent the present value of future profits expected to be earned over the lives of the contracts acquired. These costs are amortized as profits emerge over the lives of the acquired business and are periodically evaluated for recoverability. The present value of future profits was $4 million and $7 million as of December 31, 2015 and 2014, respectively. Amortization expense of the present value of future profits was $377 thousand, $1 million and $2 million in 2015, 2014 and 2013, respectively. $3 million of present value of future profits as of December 31, 2014 related to Allstate Assurance Company (“AAC”), which was sold to an affiliate January 1, 2015 (see Note 5). Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers and establishes allowances for uncollectible reinsurance as appropriate. Income taxes The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are DAC, insurance reserves and unrealized capital gains and losses. A deferred tax asset valuation allowance is established when there is uncertainty that such assets will be realized. Reserve for life-contingent contract benefits The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in accumulated other comprehensive income. Contractholder funds Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance, fixed annuities and funding agreements. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts. Separate accounts Separate accounts assets are carried at fair value. The assets of the separate accounts are legally segregated and available only to settle separate account contract obligations. Separate accounts liabilities represent the contractholders’ claims to the related assets and are carried at an amount equal to the separate accounts assets. Investment income and realized capital gains and losses of the separate accounts accrue directly to the contractholders and therefore are not included in the Company’s Consolidated Statements of Operations and Comprehensive Income. Deposits to and surrenders and withdrawals from the separate accounts are reflected in separate accounts liabilities and are not included in consolidated cash flows. Absent any contract provision wherein the Company provides a guarantee, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. Substantially all of the Company’s variable annuity business was reinsured beginning in 2006. Off-balance sheet financial instruments Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 8 and Note 12). Adopted accounting standard Accounting for Investments in Qualified Affordable Housing Projects In January 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which allows entities that invest in certain qualified affordable housing projects through limited liability entities the option to account for these investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense or benefit. Adoption of the new guidance in the first quarter of 2015 resulted in a one-time $17 million increase in income tax expense. Pending accounting standards 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 guidance is effective for annual and interim reporting periods beginning after December 15, 2015. The Company is in the process of assessing the impact of adoption which is not expected to be material to 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 impact is expected to be the change in accounting for equity securities and cost method limited partnership interests.

Disposition	12 Months Ended
Disposition	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Disposition	Disposition On April 1, 2014, the Company sold Lincoln Benefit Life Company (“LBL”), LBL’s life insurance business generated through independent master brokerage agencies, and all of LBL’s deferred fixed annuity and long-term care insurance business to Resolution Life Holdings, Inc. The gross sale price was $797 million, representing $596 million of cash and the retention of tax benefits. The loss on disposition was $698 million, pre-tax ($521 million, after-tax), and $79 million, pre-tax ($38 million, after-tax), in 2013 and 2014, respectively. Immediately prior to the sale closing, LBL recaptured the business being sold that was previously ceded to ALIC. The applicable prior reinsurance agreements placed by LBL were novated and replicated by ALIC.

- Definition

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=51716988&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721675-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51719941&loc=SL51724579-110230

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721663-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=51719941&loc=d3e2941-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1361-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721673-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721659-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721671-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721677-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=51717284&loc=d3e1474-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=51717284&loc=SL51721683-107760

+ Details

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

Non-cash investing activities include $96 million, $102 million and $306 million related to modifications of certain mortgage loans, fixed income securities and other investments, as well as mergers completed with equity securities in 2015, 2014 and 2013, respectively, and a $44 million obligation to fund a limited partnership investment in 2015.

In 2015, the Company paid dividends to AIC of $103 million, including $86 million in the form of investment securities.

Liabilities for collateral received in conjunction with the Company’s securities lending program were $539 million, $508 million and $322 million as of December 31, 2015, 2014 and 2013, respectively, and are reported in other liabilities and accrued expenses. Obligations to return cash collateral for over-the-counter (“OTC”) and cleared derivatives were $11 million, $2 million and $6 million as of December 31, 2015, 2014 and 2013, respectively, and are reported in other liabilities and accrued expenses or other investments. The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Net change in proceeds managed
Net change in short-term investments	$	(41	)	$	(182	)	$	235
Operating cash flow (used) provided	(41		)	(182		)	235
Net change in cash	1			—			(2		)
Net change in proceeds managed	$	(40	)	$	(182	)	$	233

Net change in liabilities
Liabilities for collateral, beginning of year	$	(510	)	$	(328	)	$	(561	)
Liabilities for collateral, end of year	(550		)	(510		)	(328		)
Operating cash flow provided (used)	$	40		$	182		$	(233	)

Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions

Business operations

The Company uses services performed by its affiliates, AIC and Allstate Investments LLC, and business facilities owned or leased and operated by AIC in conducting its business activities. In addition, the Company shares the services of employees with AIC. The Company reimburses its affiliates for the operating expenses incurred on behalf of the Company. The Company is charged for the cost of these operating expenses based on the level of services provided. Operating expenses, including compensation, retirement and other benefit programs (see Note 16), allocated to the Company were $271 million, $339 million and $456 million in 2015, 2014 and 2013, respectively. A portion of these expenses relate to the acquisition of business, which are deferred and amortized into income as described in Note 2.

Structured settlement annuities

The Company issued $7 million of structured settlement annuities, a type of immediate annuity, in 2013 at prices determined using interest rates in effect at the time of purchase, to fund structured settlements in matters involving AIC. Of these amounts, $4 million related to structured settlement annuities with life contingencies and were included in premium revenue for 2013. Effective March 22, 2013, the Company no longer offers structured settlement annuities.

In most cases, these annuities were issued under a “qualified assignment” whereby Allstate Assignment Company and prior to July 1, 2001 Allstate Settlement Corporation (“ASC”), both wholly owned subsidiaries of ALIC, purchased annuities from ALIC and assumed AIC’s obligation to make future payments.

AIC issued surety bonds to guarantee the payment of structured settlement benefits assumed by ASC (from both AIC and non-related parties) and funded by certain annuity contracts issued by the Company through June 30, 2001. ASC entered into a General Indemnity Agreement pursuant to which it indemnified AIC for any liabilities associated with the surety bonds and gave AIC certain collateral security rights with respect to the annuities and certain other rights in the event of any defaults covered by the surety bonds. ALIC guaranteed the payment of structured settlement benefits on all contracts issued on or after July 1, 2001. Reserves recorded by the Company for annuities that are guaranteed by the surety bonds of AIC were $4.65 billion and $4.68 billion as of December 31, 2015 and 2014, respectively.

Broker-Dealer agreement

The Company receives distribution services from Allstate Financial Services, LLC, an affiliated broker-dealer company, for certain annuity and variable life insurance contracts sold by Allstate exclusive agencies. For these services, the Company incurred commission and other distribution expenses of $9 million, $4 million and $13 million in 2015, 2014 and 2013, respectively.

Sale of subsidiaries

On January 1, 2015, ALIC sold its subsidiary AAC to its unconsolidated affiliate Allstate Financial Insurance Holdings Corporation (“AFIHC”). ALIC received $11 million in cash. The $2 million loss on sale was recorded as a decrease to retained income since the sale was between affiliates under common control.

On November 1, 2015, ALIC sold its subsidiary Intramerica Life Insurance Company to AFIHC. ALIC received $10 million in cash. The $469 thousand loss on sale was recorded as a decrease to retained income since the sale was between affiliates under common control.

Reinsurance

The Company has coinsurance reinsurance agreements with its unconsolidated affiliate American Heritage Life Insurance Company (“AHL”) whereby the Company assumes certain interest-sensitive life insurance, fixed annuity contracts and accident and health insurance policies. The amounts assumed are disclosed in Note 10.

Effective April 1, 2015, ALIC entered into a coinsurance reinsurance agreement with AAC to cede certain interest-sensitive life insurance policies to AAC. In connection with the agreement, the Company recorded reinsurance recoverables of $476 million and paid $494 million in investments. The $12 million loss on the transaction was recorded as a decrease to retained income since the transaction was between affiliates under common control.

ALIC enters into certain intercompany reinsurance transactions with its wholly owned subsidiaries. ALIC enters into these transactions in order to maintain underwriting control and spread risk among various legal entities. These reinsurance agreements have been approved by the appropriate regulatory authorities. All significant intercompany transactions have been eliminated in consolidation.

Income taxes

The Company is a party to a federal income tax allocation agreement with the Corporation (see Note 13).

Notes due to related parties

Notes due to related parties outstanding as of December 31 consisted of the following:



($ in millions)	2015		2014
6.74% Surplus Note, due 2029, to Kennett ⁽¹⁾	$	25	$	25
3.24% Surplus Note, due 2035, to Kennett⁽¹⁾	100		100
6.18% Surplus Note, due 2036, to Kennett ⁽¹⁾	100		100
5.93% Surplus Note, due 2038, to Kennett⁽¹⁾	50		50
Total notes due to related parties	$	275	$	275

____________


⁽¹⁾	No payment of principal or interest is permitted on the surplus notes without the written approval from the proper regulatory authority. The regulatory authority could prohibit the payment of interest and principal on the surplus notes if certain statutory capital requirements are not met. Permission to pay interest on the surplus notes was granted in 2015, 2014 and 2013.

On August 1, 2005, ALIC entered into an agreement with Kennett Capital Inc. (“Kennett”), an unconsolidated affiliate of ALIC, whereby ALIC sold to Kennett a $100 million 5.06% surplus note due July 1, 2035 issued by ALIC Reinsurance Company (“ALIC Re”), a wholly owned subsidiary of ALIC. As payment, Kennett issued a full recourse 4.86% note due July 1, 2035 to ALIC for the same amount. As security for the performance of Kennett’s obligations under the agreement and note, Kennett granted ALIC a pledge of and security interest in Kennett’s right, title and interest in the surplus notes and their proceeds. Under the terms of the agreement, ALIC may sell and Kennett may choose to buy additional surplus notes, if and when additional surplus notes are issued. On December 1, 2015, the interest rate for the surplus note due to Kennett and the note due from Kennett reset to 3.24% and 3.04%, respectively.

On June 30, 2006, ALIC sold Kennett a $100 million redeemable surplus note issued by ALIC Re. The surplus note is due June 1, 2036 with an initial rate of 6.18% that will reset every 10 years to the then current ten year Constant Maturity Treasury yield (“CMT”), plus 1.14%. As payment, Kennett issued a full recourse note due June 1, 2036 to ALIC for the same amount with an initial interest rate of 5.98% that will reset every ten years to the then current ten year CMT, plus 0.94%.

On June 30, 2008, ALIC sold Kennett a $50 million redeemable surplus note issued by ALIC Re. The surplus note is due June 1, 2038 with an initial rate of 5.93% that will reset every ten years to the then current ten year CMT, plus 2.09%. As payment, Kennett issued a full recourse note due June 1, 2038 to ALIC for the same amount with an initial interest rate of 5.73% that will reset every ten years to the then current ten year CMT, plus 1.89%.

On December 18, 2009, ALIC sold Kennett a $25 million redeemable surplus note issued by ALIC Re. The surplus note is due December 1, 2029 with an initial rate of 6.74% that will reset every ten years to the then current ten year CMT, plus 3.25%. As payment, Kennett issued a full recourse note due December 1, 2029 to ALIC for the same amount with an initial interest rate of 5.19% that will reset every ten years to the then current ten year CMT, plus 1.70%.

The notes due from Kennett are classified as other investments. In each of 2015, 2014 and 2013, the Company recorded net investment income on these notes of $15 million. In each of 2015, 2014 and 2013, the Company incurred $16 million of interest expense related to the surplus notes due to Kennett.

On November 17, 2008, the Company issued a $400 million 7.00% surplus note due November 17, 2028 to AIC in exchange for cash. In both 2013 and 2012, the Company repaid $200 million of principal on this surplus note. In 2013, the Company incurred interest expense on this surplus note of $7 million.

In March 2011, in accordance with an asset purchase agreement between Road Bay Investments, LLC (“RBI”), a consolidated subsidiary of ALIC, and AIC, RBI purchased from AIC real estate with a fair value of $10 million on the date of sale and issued a 5.75% note due March 24, 2018 to AIC for the same amount. In 2013, RBI repaid the entire principal of this note. In April 2011, RBI purchased from AIC mortgage loans with a fair value of $4 million on the date of sale and issued a 5.75% note due April 19, 2018 to AIC for the same amount. In 2013, RBI repaid the entire principal of this note. In August 2011, RBI purchased from AIC fixed income securities with a fair value of $7 million on the date of sale and issued a 6.35% note due August 23, 2018 to AIC for the same amount. In 2014, RBI repaid the entire principal of this note. Since the transactions were between affiliates under common control, the purchased investments were recorded by RBI at AIC’s carrying value on the date of sale. The investments that were purchased were impaired; therefore, the carrying value on the date of sale equaled fair value. In 2014 and 2013, the Company incurred interest expense on these notes of $84 thousand and $1 million respectively.

Liquidity and intercompany loan agreements

The Company, AIC, AAC and the Corporation are party to the Amended and Restated Intercompany Liquidity Agreement (“Liquidity Agreement”) which allows for short-term advances of funds to be made between parties for liquidity and other general corporate purposes. The Liquidity Agreement does not establish a commitment to advance funds on the part of any party. The Company and AIC each serve as a lender and borrower, AAC serves only as a borrower, and the Corporation serves only as a lender. The maximum amount of advances each party may make or receive is limited to $1 billion. Netting or offsetting of advances made and received is not permitted. Advances between the parties are required to have specified due dates less than or equal to 364 days from the date of the advance and be payable upon demand by written request from the lender at least 10 business days prior to the demand date. The borrower may make prepayments of the outstanding principal balance of an advance without penalty. Advances will bear interest equal to or greater than the rate applicable to 30-day commercial paper issued by the Corporation on the date the advance is made with an adjustment on the first day of each month thereafter. The Company had no amounts outstanding under the Liquidity Agreement as of December 31, 2015 or 2014.

In addition to the Liquidity Agreement, the Company has an intercompany loan agreement with the Corporation. The amount of intercompany loans available to the Company is at the discretion of the Corporation. The maximum amount of loans the Corporation will have outstanding to all its eligible subsidiaries at any given point in time is limited to $1 billion. The Corporation may use commercial paper borrowings, bank lines of credit and securities lending to fund intercompany borrowings. The Company had no amounts outstanding under the intercompany loan agreement as of December 31, 2015 or 2014.

RBI, a consolidated subsidiary of ALIC, has a Revolving Loan Credit Agreement (“Credit Agreement”) with AHL, according to which AHL agreed to extend revolving credit loans to RBI. As security for its obligations under the Credit Agreement, RBI entered into a Pledge and Security Agreement with AHL, according to which RBI agreed to grant a pledge of and security interest in RBI’s right, title, and interest in certain assets of RBI. The Company had no amounts outstanding under the Credit Agreement as of December 31, 2015 or 2014.

Capital support agreement

The Company has a Capital Support Agreement with AIC. Under the terms of this agreement, AIC agrees to provide capital to maintain the amount of statutory capital and surplus necessary to maintain a company action level risk-based capital (“RBC”) ratio of at least 150%. AIC’s obligation to provide capital to the Company under the agreement is limited to an aggregate amount of $1 billion. In exchange for providing this capital, the Company will pay AIC an annual commitment fee of 1% of the amount of the Capital and Surplus maximum that remains available on January 1 of such year. The Company or AIC have the right to terminate this agreement when: 1) the Company qualifies for a financial strength rating from S&P’s, Moody’s or A.M. Best, without giving weight to the existence of this agreement, that is the same or better than its rating with such support; 2) the Company’s RBC ratio is at least 300%; or 3) AIC no longer directly or indirectly owns at least 50% of the voting stock of the Company. As of December 31, 2015 and 2014, no capital had been provided by AIC under this agreement.

Dividends and return of capital

In 2015, the Company paid dividends of $103 million to AIC in the form of cash and investments. The Company approved and paid a return of capital of $700 million and $500 million to AIC in 2014 and 2013, respectively, which were recorded as a reduction of additional capital paid-in on the Consolidated Statements of Financial Position.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Investments

12 Months Ended

Dec. 31, 2015

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
December 31, 2015
U.S. government and agencies	$	920	$	57	$	—		$	977
Municipal	2,162		292		(12		)	2,442
Corporate	18,069		849		(414		)	18,504
Foreign government	348		36		—			384
ABS	1,443		5		(28		)	1,420
RMBS	406		49		(4		)	451
CMBS	409		31		(4		)	436
Redeemable preferred stock	13		2		—			15
Total fixed income securities	$	23,770	$	1,321	$	(462	)	$	24,629

December 31, 2014
U.S. government and agencies	$	668	$	102	$	—		$	770
Municipal	3,156		520		(14		)	3,662
Corporate	19,465		1,670		(150		)	20,985
Foreign government	654		81		—			735
ABS	773		13		(21		)	765
RMBS	554		55		(4		)	605
CMBS	538		43		(2		)	579
Redeemable preferred stock	14		2		—			16
Total fixed income securities	$	25,822	$	2,486	$	(191	)	$	28,117

Scheduled maturities

The scheduled maturities for fixed income securities are as follows as of December 31, 2015:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	996	$	1,004
Due after one year through five years	7,362		7,640
Due after five years through ten years	8,374		8,475
Due after ten years	4,780		5,203
	21,512		22,322
ABS, RMBS and CMBS	2,258		2,307
Total	$	23,770	$	24,629

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 for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	1,246		$	1,522		$	1,947
Mortgage loans	203			242			345
Equity securities	28			20			12
Limited partnership interests	287			267			175
Short-term investments	3			2			2
Policy loans	34			39			49
Other	75			59			63
Investment income, before expense	1,876			2,151			2,593
Investment expense	(57		)	(70		)	(108		)
Net investment income	$	1,819		$	2,081		$	2,485

Realized capital gains and losses

Realized capital gains and losses by asset type for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	309		$	(4	)	$	3
Mortgage loans	6			2			20
Equity securities	(23		)	134			45
Limited partnership interests	(32		)	(4		)	(6		)
Derivatives	13			12			14
Other	(8		)	3			—
Realized capital gains and losses	$	265		$	143		$	76

Realized capital gains and losses by transaction type for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Impairment write-downs	$	(63	)	$	(11	)	$	(33	)
Change in intent write-downs	(65		)	(44		)	(19		)
Net other-than-temporary impairment losses recognized in earnings	(128		)	(55		)	(52		)
Sales and other	383			184			114
Valuation and settlements of derivative instruments	10			14			14
Realized capital gains and losses	$	265		$	143		$	76

Gross gains of $542 million, $223 million and $145 million and gross losses of $147 million, $51 million and $46 million were realized on sales of fixed income and equity securities during 2015, 2014 and 2013, respectively.

Other-than-temporary impairment losses by asset type for the years ended December 31 are as follows:



($ in millions)	2015								2014									2013
	Gross			Included in OCI		Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)	$	(8	)	$	—		$	(8	)
Corporate	(25		)	6		(19		)	(4		)	—			(4		)	—			—			—
ABS	(16		)	10		(6		)	(5		)	—			(5		)	—			(2		)	(2		)
RMBS	—			—		—			2			(1		)	1			(2		)	2			—
CMBS	(1		)	—		(1		)	(1		)	—			(1		)	(32		)	(3		)	(35		)
Total fixed income securities	(42		)	16		(26		)	(9		)	(1		)	(10		)	(42		)	(3		)	(45		)
Mortgage loans	4			—		4			5			—			5			11			—			11
Equity securities	(83		)	—		(83		)	(32		)	—			(32		)	(6		)	—			(6		)
Limited partnership interests	(17		)	—		(17		)	(18		)	—			(18		)	(9		)	—			(9		)
Other	(6		)	—		(6		)	—			—			—			(3		)	—			(3		)
Other-than-temporary impairment losses	$	(144	)	$	16	$	(128	)	$	(54	)	$	(1	)	$	(55	)	$	(49	)	$	(3	)	$	(52	)

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 amount excludes $138 million as of both December 31, 2015 and 2014, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.



($ in millions)	December 31, 2015			December 31, 2014
Municipal	$	(5	)	$	(5	)
Corporate	(2		)	—
ABS	(12		)	(1		)
RMBS	(49		)	(55		)
CMBS	(6		)	(5		)
Total	$	(74	)	$	(66	)

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of December 31 are as follows:



($ in millions)	2015			2014			2013
Beginning balance	$	(209	)	$	(299	)	$	(345	)
Additional credit loss for securities previously other-than-temporarily impaired	(8		)	(6		)	(13		)
Additional credit loss for securities not previously other-than-temporarily impaired	(18		)	(9		)	(19		)
Reduction in credit loss for securities disposed or collected	33			44			75
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell	—			—			2
Change in credit loss due to accretion of increase in cash flows	2			2			1
Reduction in credit loss for securities sold in LBL disposition	—			59			—
Ending balance	$	(200	)	$	(209	)	$	(299	)

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)
December 31, 2015	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	24,629	$	1,321	$	(462	)	$	859
Equity securities	1,542		76		(60		)	16
Short-term investments	816		—		—			—
Derivative instruments ⁽¹⁾	10		10		—			10
EMA limited partnerships ⁽²⁾								(2		)
Unrealized net capital gains and losses, pre-tax								883
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(62		)
Amounts recognized								(62		)
Deferred income taxes								(293		)
Unrealized net capital gains and losses, after-tax								$	528

____________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) 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 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, 2014	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	28,117	$	2,486	$	(191	)	$	2,295
Equity securities	970		57		(14		)	43
Short-term investments	857		—		—			—
Derivative instruments ⁽¹⁾	2		3		(1		)	2
EMA limited partnerships								(2		)
Investments classified as held for sale								—
Unrealized net capital gains and losses, pre-tax								2,338
Amounts recognized for:
Insurance reserves								(28		)
DAC and DSI								(176		)
Amounts recognized								(204		)
Deferred income taxes								(752		)
Unrealized net capital gains and losses, after-tax								$	1,382

____________


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

Change in unrealized net capital gains and losses

The change in unrealized net capital gains and losses for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	(1,436	)	$	966		$	(2,353	)
Equity securities	(27		)	(42		)	50
Derivative instruments	8			15			4
EMA limited partnerships	—			—			(3		)
Investments classified as held for sale	—			(190		)	190
Total	(1,455		)	749			(2,112		)
Amounts recognized for:
Insurance reserves	28			(28		)	771
DAC and DSI	114			(20		)	252
Amounts recognized	142			(48		)	1,023
Deferred income taxes	459			(246		)	382
(Decrease) increase in unrealized net capital gains and losses, after-tax	$	(854	)	$	455		$	(707	)

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
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
December 31, 2015
Fixed income securities
U.S. government and agencies	6	$	91	$	—		—	$	—	$	—		$	—
Municipal	15	125		(3		)	5	25		(9		)	(12		)
Corporate	953	5,315		(281		)	78	568		(133		)	(414		)
Foreign government	1	2		—			—	—		—			—
ABS	81	1,152		(11		)	16	154		(17		)	(28		)
RMBS	38	7		—			40	53		(4		)	(4		)
CMBS	12	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,106	6,767		(297		)	140	802		(165		)	(462		)
Equity securities	279	543		(49		)	32	56		(11		)	(60		)
Total fixed income and equity securities	1,385	$	7,310	$	(346	)	172	$	858	$	(176	)	$	(522	)

Investment grade fixed income securities	780	$	5,429	$	(175	)	82	$	503	$	(90	)	$	(265	)
Below investment grade fixed income securities	326	1,338		(122		)	58	299		(75		)	(197		)
Total fixed income securities	1,106	$	6,767	$	(297	)	140	$	802	$	(165	)	$	(462	)

December 31, 2014
Fixed income securities
U.S. government and agencies	1	$	1	$	—		—	$	—	$	—		$	—
Municipal	17	90		(1		)	10	47		(13		)	(14		)
Corporate	281	1,780		(69		)	91	875		(81		)	(150		)
Foreign government	—	—		—			1	15		—			—
ABS	19	168		(2		)	23	217		(19		)	(21		)
RMBS	19	3		—			45	73		(4		)	(4		)
CMBS	8	33		—			3	32		(2		)	(2		)
Total fixed income securities	345	2,075		(72		)	173	1,259		(119		)	(191		)
Equity securities	294	327		(13		)	1	6		(1		)	(14		)
Total fixed income and equity securities	639	$	2,402	$	(85	)	174	$	1,265	$	(120	)	$	(205	)

Investment grade fixed income securities	167	$	1,275	$	(28	)	127	$	989	$	(79	)	$	(107	)
Below investment grade fixed income securities	178	800		(44		)	46	270		(40		)	(84		)
Total fixed income securities	345	$	2,075	$	(72	)	173	$	1,259	$	(119	)	$	(191	)

As of December 31, 2015, $302 million of the $522 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 $302 million, $163 million are related to unrealized losses on investment grade fixed income securities and $41 million are related to equity securities. Of the remaining $98 million, $70 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 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 increasing risk-free interest rates or widening credit spreads since the time of initial purchase.

As of December 31, 2015, the remaining $220 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 $102 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 $220 million, $99 million are related to below investment grade fixed income securities and $19 million are related to equity securities. Of these amounts, $12 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 December 31, 2015.

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 December 31, 2015, 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 December 31, 2015, 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 December 31, 2015 and 2014, the carrying value of equity method limited partnerships totaled $1.77 billion and $1.52 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 December 31, 2015 and 2014, the carrying value for cost method limited partnerships was $530 million and $508 million, 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

The Company’s mortgage loans are commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States and totaled, net of valuation allowance, $3.78 billion and $3.69 billion as of December 31, 2015 and 2014, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.

The following table shows the principal geographic distribution of commercial real estate represented in the Company’s mortgage loan portfolio. No other state represented more than 5% of the portfolio as of December 31.



(% of mortgage loan portfolio carrying value)	2015		2014
California	21.6	%	24.8	%
Texas	9.5		7.7
New Jersey	9.1		8.3
Illinois	8.0		9.2
Florida	5.9		4.7
New York	5.0		6.0

The types of properties collateralizing the mortgage loans as of December 31 are as follows:



(% of mortgage loan portfolio carrying value)	2015		2014
Apartment complex	24.5	%	20.0	%
Office buildings	23.2		25.6
Retail	22.4		24.1
Warehouse	18.1		18.1
Other	11.8		12.2
Total	100.0	%	100.0	%

The contractual maturities of the mortgage loan portfolio as of December 31, 2015 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2016	23	$	173	4.6	%
2017	32	356		9.4
2018	27	288		7.6
2019	8	206		5.4
Thereafter	196	2,758		73.0
Total	286	$	3,781	100.0	%

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 December 31, 2015.

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 and variable rate mortgage loans summarized by debt service coverage ratio distribution as of December 31.



($ in millions)	2015						2014
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	55	$	—	$	55	$	110	$	—	$	110
1.0 - 1.25	357		—		357		387		—		387
1.26 - 1.50	1,120		—		1,120		1,118		1		1,119
Above 1.50	2,243		—		2,243		2,054		—		2,054
Total non-impaired mortgage loans	$	3,775	$	—	$	3,775	$	3,669	$	1	$	3,670

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 as of December 31 is as follows:



($ in millions)	2015		2014
Impaired mortgage loans with a valuation allowance	$	6	$	16
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	16
Valuation allowance on impaired mortgage loans	$	3	$	8

The average balance of impaired loans was $11 million, $26 million and $86 million during 2015, 2014 and 2013, respectively.

The rollforward of the valuation allowance on impaired mortgage loans for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Beginning balance	$	8		$	21		$	42
Net decrease in valuation allowance	(4		)	(5		)	(11		)
Charge offs	(1		)	(8		)	(8		)
Mortgage loans classified as held for sale	—			—			(2		)
Ending balance	$	3		$	8		$	21

Payments on all mortgage loans were current as of December 31, 2015 and 2014.

Municipal bonds

The Company maintains a diversified portfolio of municipal bonds. The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.



(% of municipal bond portfolio carrying value)	2015		2014
Texas	15.9	%	13.6	%
California	15.0		17.0
Oregon	8.4		5.8
New Jersey	6.8		5.1
Illinois	3.8		5.3

Concentration of credit risk

As of December 31, 2015, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10% of the Company’s shareholder’s equity.

Securities loaned

The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2015 and 2014, fixed income and equity securities with a carrying value of $518 million and $492 million, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was $1 million in each of 2015, 2014 and 2013.

Other investment information

Included in fixed income securities are below investment grade assets totaling $3.20 billion and $3.31 billion as of December 31, 2015 and 2014, respectively.

As of December 31, 2015, fixed income securities and short-term investments with a carrying value of $31 million were on deposit with regulatory authorities as required by law.

As of December 31, 2015, the carrying value of fixed income securities that were non-income producing was $10 million.

Fair Value of Assets and Liabilities

12 Months Ended

Dec. 31, 2015

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 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 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 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 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. Also includes auction rate securities (“ARS”) primarily backed by student loans that have become illiquid due to failures in the auction market and are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses significant non-market observable inputs, including the anticipated date liquidity will return to the market.

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. Also included are equity-indexed notes which are valued using a discounted cash flow model that is widely accepted in the financial services industry and uses significant non-market observable inputs, such as volatility. 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, 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 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	$	546		$	431		$	—					$	977
Municipal	—			2,364			78						2,442
Corporate - public	—			12,490			44						12,534
Corporate - privately placed	—			5,523			447						5,970
Foreign government	—			384			—						384
ABS - CDO	—			178			53						231
ABS - consumer and other	—			1,145			44						1,189
RMBS	—			451			—						451
CMBS	—			436			—						436
Redeemable preferred stock	—			15			—						15
Total fixed income securities	546			23,417			666						24,629
Equity securities	1,479			3			60						1,542
Short-term investments	193			623			—						816
Other investments: Free-standing derivatives	—			59			1			$	(11	)	49
Separate account assets	3,639			—			—						3,639
Other assets	1			—			1						2
Total recurring basis assets	5,858			24,102			728			(11		)	30,677
Non-recurring basis ⁽¹⁾	—			—			8						8
Total assets at fair value	$	5,858		$	24,102		$	736		$	(11	)	$	30,685
% of total assets at fair value	19.1		%	78.5		%	2.4		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	—			(7		)	(8		)	$	1		(14		)
Total liabilities at fair value	$	—		$	(7	)	$	(307	)	$	1		$	(313	)
% of total liabilities at fair value	—		%	2.2		%	98.1		%	(0.3		)%	100		%

_______________________

⁽¹⁾Includes $3 million of limited partnership interests and $5 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, 2014.



($ 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, 2014
Assets
Fixed income securities:
U.S. government and agencies	$	147		$	623		$	—					$	770
Municipal	—			3,556			106						3,662
Corporate - public	—			14,519			160						14,679
Corporate - privately placed	—			5,674			632						6,306
Foreign government	—			735			—						735
ABS - CDO	—			323			67						390
ABS - consumer and other	—			313			62						375
RMBS	—			605			—						605
CMBS	—			578			1						579
Redeemable preferred stock	—			16			—						16
Total fixed income securities	147			26,942			1,028						28,117
Equity securities	927			6			37						970
Short-term investments	90			767			—						857
Other investments: Free-standing derivatives	—			90			2			$	(2	)	90
Separate account assets	4,396			—			—						4,396
Other assets	1			—			1						2
Total recurring basis assets	5,561			27,805			1,068			(2		)	34,432
Non-recurring basis⁽¹⁾	—			—			9						9
Total assets at fair value	$	5,561		$	27,805		$	1,077		$	(2	)	$	34,441
% of total assets at fair value	16.2		%	80.7		%	3.1		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(323	)				$	(323	)
Other liabilities: Free-standing derivatives	—			(24		)	(9		)	$	2		(31		)
Total liabilities at fair value	$	—		$	(24	)	$	(332	)	$	2		$	(354	)
% of total liabilities at fair value	—		%	6.8		%	93.8		%	(0.6		)%	100		%

________________________


⁽¹⁾	Includes $6 million of mortgage loans and $3 million of limited partnership interests 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
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	%
December 31, 2014
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(278	)	Stochastic cash flow model	Projected option cost	1.0 - 2.0%	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 December 31, 2015 and 2014, Level 3 fair value measurements of fixed income securities total $666 million and $1.03 billion, respectively, and include $577 million and $914 million, respectively, of fixed income securities valued based on non-binding broker quotes where the inputs have not been corroborated to be market observable. 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.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 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:
Municipal	$	106		$	5		$	(5	)	$	—		$	—
Corporate - public	160			—			(2		)	—			(111		)
Corporate - privately placed	632			14			(17		)	10			(79		)
ABS - CDO	67			—			2			21			(17		)
ABS - consumer and other	62			(1		)	—			—			(41		)
CMBS	1			—			(1		)	—			—
Total fixed income securities	1,028			18			(23		)	31			(248		)
Equity securities	37			(1		)	(3		)	—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,059		$	18		$	(26	)	$	31		$	(248	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	19		$	—		$	—		$	—

	Purchases			Issues			Sales			Settlements			Balance as of December 31, 2015
Assets
Fixed income securities:
Municipal	$	—		$	—		$	(23	)	$	(5	)	$	78
Corporate - public	1			—			—			(4		)	44
Corporate - privately placed	29			—			(67		)	(75		)	447
ABS - CDO	—			—			(1		)	(19		)	53
ABS - consumer and other	27			—			—			(3		)	44
CMBS	—			—			—			—			—
Total fixed income securities	57			—			(91		)	(106		)	666
Equity securities	32			—			(5		)	—			60
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	89		$	—		$	(96	)	$	(107	)	$	720
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(2	)	$	—		$	7		$	(299	)
Total recurring Level 3 liabilities	$	—		$	(2	)	$	—		$	7		$	(299	)

_____________________


⁽¹⁾	The effect to net income totals $37 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $6 million in realized capital gains and losses, $12 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in 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 year ended December 31, 2014.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2013			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	119		$	—		$	18		$	—		$	(17	)
Corporate	1,008			20			(14		)	85			(114		)
ABS	112			—			3			16			(12		)
CMBS	1			—			—			—			(4		)
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	1,241			20			7			101			(147		)
Equity securities	6			—			(1		)	—			(1		)
Free-standing derivatives, net	(5		)	—			—			—			—
Other assets	—			1			—			—			—
Assets held for sale	362			(1		)	2			4			(2		)
Total recurring Level 3 assets	$	1,604		$	20		$	8		$	105		$	(150	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(307	)	$	(8	)	$	—		$	—		$	—
Liabilities held for sale	(246		)	17			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	9		$	—		$	—		$	—

	Sold in LBL disposition ⁽³⁾			Purchases/ Issues ⁽⁴⁾			Sales			Settlements			Balance as of December 31, 2014
Assets
Fixed income securities:
Municipal	$	—		$	—		$	(11	)	$	(3	)	$	106
Corporate	—			20			(109		)	(104		)	792
ABS	—			21			—			(11		)	129
CMBS	4			—			—			—			1
Redeemable preferred stock	—			—			(1		)	—			—
Total fixed income securities	4			41			(121		)	(118		)	1,028
Equity securities	—			39			(6		)	—			37
Free-standing derivatives, net	—			2			—			(4		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Assets held for sale	(351		)	—			(8		)	(6		)	—
Total recurring Level 3 assets	$	(347	)	$	82		$	(135	)	$	(128	)	$	1,059
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(14	)	$	—		$	6		$	(323	)
Liabilities held for sale	230			(4		)	—			3			—
Total recurring Level 3 liabilities	$	230		$	(18	)	$	—		$	9		$	(323	)

____________________


⁽¹⁾	The effect to net income totals $29 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $11 million in realized capital gains and losses, $12 million in net investment income, $(5) million in interest credited to contractholder funds, $15 million in contract benefits and $(4) million in loss on disposition of operations.


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


⁽³⁾	Includes transfers from held for sale that took place in first quarter 2014 of $4 million for CMBS and $(4) million for Assets held for sale.


⁽⁴⁾	Represents purchases for assets and issues for liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2013.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2012			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	338		$	(12	)	$	19		$	—		$	—
Corporate	1,501			32			(32		)	84			(172		)
ABS	199			(2		)	30			17			(16		)
CMBS	21			(1		)	3			—			—
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	2,060			17			20			101			(188		)
Equity securities	7			—			—			—			—
Free-standing derivatives, net	(27		)	19			—			—			—
Other assets	1			(1		)	—			—			—
Assets held for sale	—			(2		)	(6		)	13			(13		)
Total recurring Level 3 assets	$	2,041		$	33		$	14		$	114		$	(201	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(553	)	$	89		$	—		$	—		$	—
Liabilities held for sale	—			20			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	109		$	—		$	—		$	—

	Transfer to held for sale			Purchases/Issues⁽²⁾			Sales			Settlements			Balance as of December 31, 2013
Assets
Fixed income securities:
Municipal	$	(51	)	$	—		$	(173	)	$	(2	)	$	119
Corporate	(244		)	145			(173		)	(133		)	1,008
ABS	(85		)	—			(8		)	(23		)	112
CMBS	(5		)	—			(17		)	—			1
Redeemable preferred stock	—			—			—			—			1
Total fixed income securities	(385		)	145			(371		)	(158		)	1,241
Equity securities	—			—			(1		)	—			6
Free-standing derivatives, net	—			9			—			(6		)	(5		)	(3)
Other assets	—			—			—			—			—
Assets held for sale	385			—			(10		)	(5		)	362
Total recurring Level 3 assets	$	—		$	154		$	(382	)	$	(169	)	$	1,604
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	265		$	(111	)	$	—		$	3		$	(307	)
Liabilities held for sale	(265		)	(6		)	—			5			(246		)
Total recurring Level 3 liabilities	$	—		$	(117	)	$	—		$	8		$	(553	)

_________________________


⁽¹⁾	The effect to net income totals $142 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $20 million in realized capital gains and losses, $14 million in net investment income, $40 million in interest credited to contractholder funds, $74 million in contract benefits and $(6) million in loss on disposition of operations.


⁽²⁾	Represents purchases for assets and issues for liabilities.


⁽³⁾	Comprises $9 million of assets and $14 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 2015, 2014 or 2013.

Transfers into Level 3 during 2015, 2014 and 2013 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 2015, 2014 and 2013 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 December 31.



($ in millions)	2015			2014			2013
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	(4	)
Corporate	11			11			13
ABS	1			—			(2		)
CMBS	—			1			(2		)
Total fixed income securities	12			11			5
Equity securities	(1		)	—			—
Free-standing derivatives, net	1			5			10
Other assets	—			1			(1		)
Assets held for sale	—			—			(2		)
Total recurring Level 3 assets	$	12		$	17		$	12

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	19		$	(8	)	$	89
Liabilities held for sale	—			17			20
Total recurring Level 3 liabilities	$	19		$	9		$	109

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 $31 million in 2015 and are reported as follows: $(2) million in realized capital gains and losses, $14 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in contract benefits. These gains and losses total $26 million in 2014 and are reported as follows: $4 million in realized capital gains and losses, $12 million in net investment income, $(5) million in interest credited to contractholder funds and $15 million in contract benefits. These gains and losses total $121 million in 2013 and are reported as follows: $9 million in realized capital gains and losses, $9 million in net investment income, $35 million in interest credited to contractholder funds, $74 million in contract benefits and $(6) million in loss on disposition of operations.

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

Financial assets



($ in millions)	December 31, 2015				December 31, 2014
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	3,781	$	3,920	$	3,686	$	3,922
Cost method limited partnerships	530		661		508		686
Bank loans	502		493		431		427
Agent loans	422		408		368		361
Notes due from related party	275		275		275		275

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 of notes due from related party, which are reported in other investments, is based on discounted cash flow calculations using current interest rates for instruments with comparable terms. The fair value measurements for mortgage loans, cost method limited partnerships, bank loans, agent loans and notes due from related party are categorized as Level 3.

Financial liabilities



($ in millions)	December 31, 2015				December 31, 2014
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	12,387	$	12,836	$	13,708	$	14,364
Notes due to related parties	275		275		275		275
Liability for collateral	550		550		510		510

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 notes due to related parties is based on discounted cash flow calculations using 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 measurement for liability for collateral is categorized as Level 2. The fair value measurement for notes due to related parties is categorized as Level 3.

- 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 and Off-balance sheet Financial Instruments

12 Months Ended

Dec. 31, 2015

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Derivative Financial Instruments and Off-balance sheet 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.

The Company utilizes several derivative strategies to manage risk. Asset-liability management is a risk management strategy that is principally employed to balance the respective interest-rate sensitivities of the Company’s 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 Company’s fixed income portfolio. Futures and options are used for hedging the equity exposure contained in the Company’s equity indexed life and annuity product contracts that offer equity returns to contractholders. In addition, the Company 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 the Company to reduce the foreign currency risk associated with holding foreign currency denominated investments.

The Company may also use derivatives to manage the risk associated with corporate actions, including the sale of a business. During 2014 and December 2013, swaptions were utilized to hedge the expected proceeds from the disposition of LBL.

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; 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; credit default swaps in synthetic collateralized debt obligations, which provide enhanced coupon rates as a result of selling credit protection; and equity-indexed notes containing equity call options, which provide a coupon payout that is determined using one or more equity-based indices.

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. The Company designates certain of its interest rate and foreign currency swap contracts and 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. The Company 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 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 December 31, 2015, the Company pledged $12 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 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	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		997	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	81		n/a	1			1		—
Credit default contracts
Credit default swaps – buying protection	Other investments	51		n/a	2			3		(1		)
Credit default swaps – selling protection	Other investments	80		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		257		4,727	50			51		(1		)
Total asset derivatives		$	302	4,727	$	56		$	57	$	(1	)

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	Other liabilities & accrued expenses	—		3,645	(6		)	—		(6		)
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	2		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	100		n/a	(8		)	—		(8		)
Subtotal		2,938		3,645	(312		)	1		(313		)
Total liability derivatives		2,957		3,645	(308		)	$	5	$	(313	)

Total derivatives		$	3,259	8,372	$	(252	)

^{_________________________________________}

⁽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⁾
Asset derivatives	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	85	n/a	$	3		$	3	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	163		n/a	2			2		—
Equity and index contracts
Options	Other investments	—		3,225	83			83		—
Financial futures contracts	Other assets	—		704	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	57		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	19		n/a	—			—		—
Credit default swaps – selling protection	Other investments	80		n/a	2			2		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		322		3,929	89			89		—
Total asset derivatives		$	407	3,929	$	92		$	92	$	—

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	50	n/a	$	(1	)	$	—	$	(1	)
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	1			1		—
Interest rate cap agreements	Other liabilities & accrued expenses	11		n/a	—			—		—
Financial futures contract	Other liabilities & accrued expenses	—		200	—			—		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		3,131	(22		)	—		(22		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	36		n/a	1			1		—
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	615		n/a	(32		)	—		(32		)
Guaranteed withdrawal benefits	Contractholder funds	425		n/a	(13		)	—		(13		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,786		n/a	(278		)	—		(278		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	49		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	100		n/a	(9		)	—		(9		)
Subtotal		3,192		3,331	(353		)	2		(355		)
Total liability derivatives		3,242		3,331	(354		)	$	2	$	(356	)

Total derivatives		$	3,649	7,260	$	(262	)

^{__________________________________________}

⁽¹⁾Volume for OTC 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 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
December 31, 2015
Asset derivatives	$	15		$	(6	)	$	(5	)	$	4		$	(1	)	$	3
Liability derivatives	(9		)	6			(5		)	(8		)	7			(1		)

December 31, 2014
Asset derivatives	$	7		$	(2	)	$	—		$	5		$	(4	)	$	1
Liability derivatives	(11		)	2			—			(9		)	7			(2		)

The following table provides a summary of the impacts of the Company’s foreign currency contracts in cash flow hedging relationships for the years ended December 31. Amortization of net gains from accumulated other comprehensive income related to cash flow hedges is expected to be a gain of $3 million during the next twelve months. There was no hedge ineffectiveness reported in realized gains and losses in 2015, 2014 or 2013.



($ in millions)	2015			2014			2013
Gain recognized in OCI on derivatives during the period	$	10		$	12		$	3
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	10			2			(13		)
Loss reclassified from AOCI into income (net investment income)	(1		)	(1		)	(1		)
Gain (loss) reclassified from AOCI into income (realized capital gains and losses)	3			(2		)	—

The following tables present gains and losses from valuation and settlements reported on derivatives not designated as accounting hedging instruments in the Consolidated Statements of Operations and Comprehensive Income. In 2015, 2014 and 2013, the Company had no derivatives used in fair value hedging relationships.



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Loss on disposition of operations			Total gain (loss) recognized in net income on derivatives
2015
Equity and index contracts	$	—		$	—		$	(9	)	$	—		$	(9	)
Embedded derivative financial instruments	—			(7		)	31			—			24
Foreign currency contracts	6			—			—			—			6
Credit default contracts	4			—			—			—			4
Total	$	10		$	(7	)	$	22		$	—		$	25

2014
Interest rate contracts	$	(3	)	$	—		$	—		$	(4	)	$	(7	)
Equity and index contracts	(1		)	—			38			—			37
Embedded derivative financial instruments	—			15			(14		)	—			1
Foreign currency contracts	10			—			—			—			10
Credit default contracts	8			—			—			—			8
Other contracts	—			—			(2		)	—			(2		)
Total	$	14		$	15		$	22		$	(4	)	$	47

2013
Interest rate contracts	$	3		$	—		$	—		$	(6	)	$	(3	)
Equity and index contracts	—			—			94			—			94
Embedded derivative financial instruments	(1		)	74			(75		)	—			(2		)
Foreign currency contracts	(2		)	—			—			—			(2		)
Credit default contracts	14			—			—			—			14
Other contracts	—			—			(3		)	—			(3		)
Total	$	14		$	74		$	16		$	(6	)	$	98

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 December 31, 2015, counterparties pledged $11 million in cash and securities to the Company, and the Company pledged $7 million in 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. 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 as of December 31 by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	2015							2014
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⁾
A+	1	$	82	$	5	$	—	1	$	164	$	2	$	1
A	5	178		6		6		3	88		3		1
A-	1	16		3		—		1	8		—		—
BBB+	2	36		—		—		1	11		—		—
BBB	—	—		—		—		1	52		—		—
Total	9	$	312	$	14	$	6	7	$	323	$	5	$	2

_________________________


⁽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 of December 31, 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)	2015			2014
Gross liability fair value of contracts containing credit-risk-contingent features	$	9		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(1		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	(7		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	1		$	2

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
December 31, 2015
First-to-default Basket
Municipal	$	—	$	—	$	100	$	—	$	100	$	(8	)
Index
Corporate debt	1		20		52		7		80		1
Total	$	1	$	20	$	152	$	7	$	180	$	(7	)

December 31, 2014
First-to-default Basket
Municipal	$	—	$	100	$	—	$	—	$	100	$	(9	)
Index
Corporate debt	—		22		52		6		80		2
Total	$	—	$	122	$	52	$	6	$	180	$	(7	)

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.

Off-balance sheet financial instruments

The contractual amounts of off-balance sheet financial instruments as of December 31 are as follows:



($ in millions)	2015		2014
Commitments to invest in limited partnership interests	$	1,269	$	1,223
Commitments to extend mortgage loans	—		44
Private placement commitments	21		25
Other loan commitments	46		46

In the preceding table, the contractual amounts represent the amount at risk if the contract is fully drawn upon, the counterparty defaults and the value of any underlying security becomes worthless. Unless noted otherwise, the Company does not require collateral or other security to support off-balance sheet financial instruments with credit risk.

Commitments to invest in limited partnership interests represent agreements to acquire new or additional participation in certain limited partnership investments. The Company enters into these agreements in the normal course of business. Because the investments in limited partnerships are not actively traded, it is not practical to estimate the fair value of these commitments.

Commitments to extend mortgage loans are agreements to lend to a borrower provided there is no violation of any condition established in the contract. The Company enters into these agreements to commit to future loan fundings at a predetermined interest rate. Commitments generally have fixed expiration dates or other termination clauses.

Private placement commitments represent conditional commitments to purchase private placement debt and equity securities at a specified future date. The Company enters into these agreements in the normal course of business. The fair value of these commitments generally cannot be estimated on the date the commitment is made as the terms and conditions of the underlying private placement securities are not yet final.

Other loan commitments are agreements to lend to a borrower provided there is no violation of any condition established in the contract. The Company enters into these agreements to commit to future loan fundings at predetermined interest rates. Commitments generally have varying expiration dates or other termination clauses. The fair value of these commitments is insignificant.

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

12 Months Ended

Dec. 31, 2015

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

As of December 31, the reserve for life-contingent contract benefits consists of the following:



($ in millions)	2015		2014
Immediate fixed annuities:
Structured settlement annuities	$	6,673	$	6,682
Other immediate fixed annuities	2,035		2,246
Traditional life insurance	2,347		2,303
Accident and health insurance	234		238
Other	105		97
Total reserve for life-contingent contract benefits	$	11,394	$	11,566

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits.



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 2.7% to 9.0%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0% to 11.5%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 6.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits ⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.1% to 5.8%	Projected benefit ratio applied to cumulative assessments

______________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”).

To the extent that unrealized gains on fixed income securities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded for certain immediate annuities with life contingencies. A liability of $28 million is included in the reserve for life-contingent contract benefits with respect to this deficiency as of December 31, 2014. The offset to this liability is recorded as a reduction of the unrealized net capital gains included in accumulated other comprehensive income. The liability is zero as of December 31, 2015.

As of December 31, contractholder funds consist of the following:



($ in millions)	2015		2014
Interest-sensitive life insurance	$	7,262	$	7,193
Investment contracts:
Fixed annuities	12,934		14,284
Funding agreements backing medium-term notes	85		85
Other investment contracts	261		254
Total contractholder funds	$	20,542	$	21,816

The following table highlights the key contract provisions relating to contractholder funds.



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0% to 10.5% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0% to 9.8% for immediate annuities; (8.0)% to 13.5% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 19.2% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Funding agreements backing medium-term notes	Interest rate credited is a floating rate, currently 0%	Not applicable
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.7% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

______________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.

Contractholder funds include funding agreements held by a VIE, Allstate Life Global Funding, that issued medium-term notes. The VIE’s primary assets are funding agreements used exclusively to back medium-term note programs.

Contractholder funds activity for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	21,816		$	23,604		$	38,634
Classified as held for sale, beginning balance	—			10,945			—
Total, including those classified as held for sale	21,816			34,549			38,634
Deposits	1,052			1,227			2,338
Interest credited	716			892			1,268
Benefits	(1,060		)	(1,178		)	(1,521		)
Surrenders and partial withdrawals	(1,246		)	(2,253		)	(3,279		)
Maturities of and interest payments on institutional products	(1		)	(2		)	(1,799		)
Contract charges	(684		)	(798		)	(1,032		)
Net transfers from separate accounts	7			7			12
Other adjustments	(58		)	34			(72		)
Sold in LBL disposition	—			(10,662		)	—
Classified as held for sale, ending balance	—			—			(10,945		)
Balance, end of year	$	20,542		$	21,816		$	23,604

The Company offered various guarantees to variable annuity contractholders. Liabilities for variable contract guarantees related to death benefits are included in the reserve for life-contingent contract benefits and the liabilities related to the income, withdrawal and accumulation benefits are included in contractholder funds. All liabilities for variable contract guarantees are reported on a gross basis on the balance sheet with a corresponding reinsurance recoverable asset for those contracts subject to reinsurance. In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.

Absent any contract provision wherein the Company guarantees either a minimum return or account value upon death, a specified contract anniversary date, partial withdrawal or annuitization, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. The account balances of variable annuities contracts’ separate accounts with guarantees included $3.20 billion and $3.82 billion of equity, fixed income and balanced mutual funds and $340 million and $467 million of money market mutual funds as of December 31, 2015 and 2014, respectively.

The table below presents information regarding the Company’s variable annuity contracts with guarantees. The Company’s variable annuity contracts may offer more than one type of guarantee in each contract; therefore, the sum of amounts listed exceeds the total account balances of variable annuity contracts’ separate accounts with guarantees.



($ in millions)	December 31,
	2015		2014
In the event of death
Separate account value	$	3,541	$	4,288
Net amount at risk ⁽¹⁾	$	675	$	581
Average attained age of contractholders	69 years		69 years
At annuitization (includes income benefit guarantees)
Separate account value	$	967	$	1,142
Net amount at risk ⁽²⁾	$	281	$	238
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	294	$	382
Net amount at risk ⁽³⁾	$	10	$	8
Accumulation at specified dates
Separate account value	$	371	$	480
Net amount at risk ⁽⁴⁾	$	31	$	24
Weighted average waiting period until guarantee date	4 years		4 years

____________


⁽¹⁾	Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.


⁽²⁾	Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.


⁽³⁾	Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.


⁽⁴⁾	Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.

The liability for death and income benefit guarantees is equal to a benefit ratio multiplied by the cumulative contract charges earned, plus accrued interest less contract excess guarantee benefit payments. The benefit ratio is calculated as the estimated present value of all expected contract excess guarantee benefits divided by the present value of all expected contract charges. The establishment of reserves for these guarantees requires the projection of future fund values, mortality, persistency and customer benefit utilization rates. These assumptions are periodically reviewed and updated. For guarantees related to death benefits, benefits represent the projected excess guaranteed minimum death benefit payments. For guarantees related to income benefits, benefits represent the present value of the minimum guaranteed annuitization benefits in excess of the projected account balance at the time of annuitization.

Projected benefits and contract charges used in determining the liability for certain guarantees are developed using models and stochastic scenarios that are also used in the development of estimated expected gross profits. Underlying assumptions for the liability related to income benefits include assumed future annuitization elections based on factors such as the extent of benefit to the potential annuitant, eligibility conditions and the annuitant’s attained age. The liability for guarantees is re-evaluated periodically, and adjustments are made to the liability balance through a charge or credit to contract benefits.

Guarantees related to the majority of withdrawal and accumulation benefits are considered to be derivative financial instruments; therefore, the liability for these benefits is established based on its fair value.

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits			Liability for guarantees related to accumulation and withdrawal benefits			Total
Balance, December 31, 2014 ⁽¹⁾	$	195		$	95		$	60		$	350
Less reinsurance recoverables	98			91			45			234
Net balance as of December 31, 2014	97			4			15			116
Incurred guarantee benefits	20			(1		)	8			27
Paid guarantee benefits	—			—			—			—
Net change	20			(1		)	8			27
Net balance as of December 31, 2015	117			3			23			143
Plus reinsurance recoverables	106			64			52			222
Balance, December 31, 2015 ⁽²⁾	$	223		$	67		$	75		$	365

Balance, December 31, 2013 ⁽³⁾	$	377		$	113		$	65		$	555
Less reinsurance recoverables	100			99			56			255
Net balance as of December 31, 2013	277			14			9			300
Incurred guarantee benefits	34			—			9			43
Paid guarantee benefits	—			—			—			—
Sold in LBL disposition	(214		)	(10		)	(3		)	(227		)
Net change	(180		)	(10		)	6			(184		)
Net balance as of December 31, 2014	97			4			15			116
Plus reinsurance recoverables	98			91			45			234
Balance, December 31, 2014 ⁽¹⁾	$	195		$	95		$	60		$	350

____________


⁽¹⁾	Included in the total liability balance as of December 31, 2014 are reserves for variable annuity death benefits of $96 million, variable annuity income benefits of $92 million, variable annuity accumulation benefits of $32 million, variable annuity withdrawal benefits of $13 million and other guarantees of $117 million.


⁽²⁾	Included in the total liability balance as of December 31, 2015 are reserves for variable annuity death benefits of $105 million, variable annuity income benefits of $64 million, variable annuity accumulation benefits of $38 million, variable annuity withdrawal benefits of $14 million and other guarantees of $144 million.


⁽³⁾	Included in the total liability balance as of December 31, 2013 are reserves for variable annuity death benefits of $98 million, variable annuity income benefits of $99 million, variable annuity accumulation benefits of $43 million, variable annuity withdrawal benefits of $13 million and other guarantees of $302 million.

Reinsurance

12 Months Ended

Dec. 31, 2015

Reinsurance Disclosures [Abstract]

Reinsurance

The Company reinsures certain of its risks to other insurers primarily under yearly renewable term, coinsurance and modified coinsurance agreements. These agreements result in a passing of the agreed-upon percentage of risk to the reinsurer in exchange for negotiated reinsurance premium payments. Modified coinsurance is similar to coinsurance, except that the cash and investments that support the liability for contract benefits are not transferred to the assuming company and settlements are made on a net basis between the companies.

For certain term life insurance policies issued prior to October 2009, the Company ceded up to 90% of the mortality risk depending on the year of policy issuance under coinsurance agreements to a pool of fourteen unaffiliated reinsurers. Effective October 2009, mortality risk on term business is ceded under yearly renewable term agreements under which the Company cedes mortality in excess of its retention, which is consistent with how the Company generally reinsures its permanent life insurance business. The following table summarizes those retention limits by period of policy issuance.



Period		Retention limits
April 2015 through current		Single life: $2 million per life Joint life: no longer offered
April 2011 through March 2015		Single life: $5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria Joint life: $8 million per life, and $10 million for contracts that meet specific criteria
July 2007 through March 2011		$5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria
September 1998 through June 2007		$2 million per life, in 2006 the limit was increased to $5 million for instances when specific criteria were met
August 1998 and prior		Up to $1 million per life

In addition, the Company has used reinsurance to effect the disposition of certain blocks of business. The Company had reinsurance recoverables of $1.44 billion and $1.46 billion as of December 31, 2015 and 2014, respectively, due from Prudential related to the disposal of substantially all of its variable annuity business that was effected through reinsurance agreements. In 2015, premiums and contract charges of $94 million, contract benefits of $40 million, interest credited to contractholder funds of $21 million, and operating costs and expenses of $18 million were ceded to Prudential. In 2014, premiums and contract charges of $109 million, contract benefits of $36 million, interest credited to contractholder funds of $21 million, and operating costs and expenses of $20 million were ceded to Prudential. In 2013, premiums and contract charges of $120 million, contract benefits of $139 million, interest credited to contractholder funds of $22 million, and operating costs and expenses of $23 million were ceded to Prudential. In addition, as of December 31, 2015 and 2014 the Company had reinsurance recoverables of $148 million and $157 million, respectively, due from subsidiaries of Citigroup (Triton Insurance and American Health and Life Insurance) and Scottish Re (U.S.) Inc. in connection with the disposition of substantially all of the direct response distribution business in 2003.

The Company is the assuming reinsurer for LBL’s life insurance business sold through the Allstate agency channel and LBL’s payout annuity business in force prior to the sale of LBL on April 1, 2014. Under the terms of the reinsurance agreement, the Company is required to have a trust with assets greater than or equal to the statutory reserves ceded by LBL to the Company, measured on a monthly basis. As of December 31, 2015, the trust held $5.32 billion of investments, which are reported in the Consolidated Statement of Financial Position.

As of December 31, 2015, the gross life insurance in force was $424.27 billion of which $5.89 billion and $92.63 billion was ceded to the affiliated and unaffiliated reinsurers, respectively.

The effects of reinsurance on premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	728		$	1,084		$	2,093
Assumed
Affiliate	131			130			124
Non-affiliate	835			614			68
Ceded
Affiliate	(41		)	—			—
Non-affiliate	(315		)	(392		)	(618		)
Premiums and contract charges, net of reinsurance	$	1,338		$	1,436		$	1,667

The effects of reinsurance on contract benefits for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	1,023		$	1,295		$	1,805
Assumed
Affiliate	79			88			82
Non-affiliate	541			398			50
Ceded
Affiliate	(32		)	—			—
Non-affiliate	(205		)	(329		)	(331		)
Contract benefits, net of reinsurance	$	1,406		$	1,452		$	1,606

The effects of reinsurance on interest credited to contractholder funds for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	636		$	827		$	1,240
Assumed
Affiliate	10			9			9
Non-affiliate	111			82			29
Ceded
Affiliate	(16		)	—			—
Non-affiliate	(24		)	(27		)	(27		)
Interest credited to contractholder funds, net of reinsurance	$	717		$	891		$	1,251

Reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2015		2014
Annuities	$	1,443	$	1,594
Life insurance	1,348		910
Other	80		82
Total	$	2,871	$	2,586

As of December 31, 2015 and 2014, approximately 77% and 92%, respectively, of the Company’s reinsurance recoverables are due from companies rated A- or better by S&P.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References + Details

Deferred Policy Acquisition and Sales Inducement Costs

12 Months Ended

Dec. 31, 2015

Deferred Policy Acquisition and Sales Inducement Costs

Deferred Policy Acquisition and Sales Inducement Costs

Deferred policy acquisition costs for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	1,271		$	1,331		$	1,834
Classified as held for sale, beginning balance	—			743			—
Total, including those classified as held for sale	1,271			2,074			1,834
Acquisition costs deferred	124			163			254
Amortization charged to income	(151		)	(162		)	(240		)
Effect of unrealized gains and losses	99			(97		)	226
Reinsurance ceded⁽¹⁾	(29		)	—			—
Sold in LBL disposition	—			(707		)	—
Classified as held for sale, ending balance	—			—			(743		)
Balance, end of year	$	1,314		$	1,271		$	1,331

______________________


⁽¹⁾	In 2015, DAC decreased as a result of a reinsurance agreement with AAC.

DSI activity, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	44		$	42		$	41
Classified as held for sale, beginning balance	—			28			—
Total, including those classified as held for sale	44			70			41
Sales inducements deferred	3			4			24
Amortization charged to income	(4		)	(4		)	(7		)
Effect of unrealized gains and losses	2			(3		)	12
Sold in LBL disposition	—			(23		)	—
Classified as held for sale, ending balance	—			—			(28		)
Balance, end of year	$	45		$	44		$	42

Guarantees and Contingent Liabilities	12 Months Ended
Guarantees and Contingent Liabilities	Dec. 31, 2015
Guarantees [Abstract]
Guarantees and Contingent Liabilities	Guarantees and Contingent Liabilities Guaranty funds Under state insurance guaranty fund laws, insurers doing business in a state can be assessed, up to prescribed limits, for certain obligations of insolvent insurance companies to policyholders and claimants. Amounts assessed to each company are typically related to its proportion of business written in each state. The Company’s policy is to accrue assessments when the entity for which the insolvency relates has met its state of domicile’s statutory definition of insolvency and the amount of the loss is reasonably estimable. In most states, the definition is met with a declaration of financial insolvency by a court of competent jurisdiction. In certain states there must also be a final order of liquidation. As of both December 31, 2015 and 2014, the liability balance included in other liabilities and accrued expenses was $10 million. The related premium tax offsets included in other assets were $15 million as of both December 31, 2015 and 2014. Guarantees The Company owns certain investments that obligate the Company to exchange credit risk or to forfeit principal due, depending on the nature or occurrence of specified credit events for the reference entities. In the event all such specified credit events were to occur, the Company’s maximum amount at risk on these investments, as measured by the amount of the aggregate initial investment, was $4 million as of December 31, 2015. The obligations associated with these investments expire at various dates on or before March 11, 2018. Related to the sale of LBL on April 1, 2014, the Company has agreed to indemnify Resolution Life Holdings, Inc. in connection with certain representations, warranties and covenants of the Company, and certain liabilities specifically excluded from the transaction, subject to specific contractual limitations regarding the Company’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 the Company’s variable annuity business to Prudential in 2006, the Company and the Corporation have agreed to indemnify Prudential for certain pre-closing contingent liabilities (including extra-contractual liabilities of the Company and liabilities specifically excluded from the transaction) that the Company has agreed to retain. In addition, the Company and the Corporation will each indemnify Prudential for certain post-closing liabilities that may arise from the acts of the Company and its agents, including certain liabilities arising from the Company’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. 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. The aggregate liability balance related to all guarantees was not material as of December 31, 2015. Regulation and Compliance The Company is subject to extensive laws, regulations and regulatory actions. From time to time, regulatory authorities or legislative bodies seek to 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 Regulation Authority, 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. The Company is currently being examined by certain states for compliance with unclaimed property laws. It is possible that this examination may result in additional payments of abandoned funds to states and to changes in the Company’s practices and procedures for the identification of escheatable funds, which could impact benefit payments and reserves, among other consequences; however, it is not likely to have a material effect on the consolidated financial statements of the Company.

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

ALIC and its subsidiaries (the “Allstate Life Group”) join with the Corporation (the “Allstate Group”) in the filing of a consolidated federal income tax return and are party to a federal income tax allocation agreement (the “Allstate Tax Sharing Agreement”). Under the Allstate Tax Sharing Agreement, the Allstate Life Group pays to or receives from the Corporation the amount, if any, by which the Allstate Group’s federal income tax liability is affected by virtue of inclusion of the Allstate Life Group in the consolidated federal income tax return. Effectively, this results in the Allstate Life Group’s annual income tax provision being computed, with adjustments, as if the Allstate Life Group filed a separate return.

The Internal Revenue Service (“IRS”) is currently examining the Allstate Group’s 2013 and 2014 federal income tax returns. The IRS completed the audit of the Allstate Group’s 2011 and 2012 federal income tax returns and issued a final Revenue Agent’s Report on June 10, 2015. The Allstate Group’s tax years prior to 2011 have been examined by the IRS and the statute of limitations has expired on those years. Any adjustments that may result from IRS examinations of the Allstate Group’s tax returns are not expected to have a material effect on the results of operations, cash flows or financial position of the Company.

The Company recorded a $1 million liability for unrecognized tax benefits as of December 31, 2015 related to the increase for tax positions taken in a prior year and believes it is reasonably possible that the liability balance will not significantly increase within the next twelve months. Because of the impact of deferred tax accounting, recognition of previously unrecognized tax benefits is not expected to impact the Company’s effective tax rate. The Company had no liability for unrecognized tax benefits as of December 3l, 2014 or 2013.

The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. The Company did not record interest income or expense relating to unrecognized tax benefits in income tax expense in 2015, 2014 or 2013. As of December 31, 2015 and 2014, there was no interest accrued with respect to unrecognized tax benefits. No amounts have been accrued for penalties.

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2015			2014
Deferred assets
Difference in tax bases of investments	$	46		$	31
Deferred reinsurance gain	17			20
Other assets	9			15
Total deferred assets	72			66
Deferred liabilities
DAC	(387		)	(396		)
Life and annuity reserves	(309		)	(255		)
Unrealized net capital gains	(287		)	(747		)
Other liabilities	(75		)	(75		)
Total deferred liabilities	(1,058		)	(1,473		)
Net deferred liability	$	(986	)	$	(1,407	)

Although realization is not assured, management believes it is more likely than not that the deferred tax assets will be realized based on the Company’s assessment that the deductions ultimately recognized for tax purposes will be fully utilized.

The components of income tax expense for the years ended December 31 are as follows:



($ in millions)	2015		2014		2013
Current	$	251	$	101	$	71
Deferred	50		132		(52		)
Total income tax expense	$	301	$	233	$	19

The Company paid income taxes of $221 million and $80 million in 2015 and 2014, respectively, and received a refund of $11 million in 2013. The Company had current income tax receivable of $30 million and $7 million as of December 31, 2015 and 2014, respectively.

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2015		2014		2013
Statutory federal income tax rate - expense (benefit)	35.0	%	35.0	%	(35.0	)%
Tax credits	(1.7	)	(1.9	)	(181.8	)
Dividends received deduction	(0.6	)	(0.9	)	(46.1	)
Adjustments to prior year tax liabilities	(0.3	)	(0.2	)	(14.1	)
Sale of subsidiary	—		(1.8	)	351.3
State income taxes	0.4		0.1		15.3
Non-deductible expenses	0.2		0.2		6.8
Change in accounting for investments in qualified affordable housing projects	2.0		—		—
Other	(0.1	)	0.2		0.1
Effective income tax rate - expense	34.9	%	30.7	%	96.5	%

Capital Structure	12 Months Ended
Capital Structure	Dec. 31, 2015
Debt Disclosure [Abstract]
Capital Structure	Capital Structure Debt outstanding All of the Company’s outstanding debt as of December 31, 2015 and 2014 relates to intercompany obligations. These obligations reflect notes due to related parties and are discussed in Note 5. The Company paid $16 million, $16 million and $27 million of interest on debt in 2015, 2014 and 2013, respectively.

Statutory Financial Information and Dividend Limitations	12 Months Ended
	Dec. 31, 2015
Statutory Financial Information and Dividend Limitations
Statutory Financial Information and Dividend Limitations	Statutory Financial Information and Dividend Limitations ALIC and its insurance subsidiaries prepare their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the insurance department of the applicable state of domicile. Prescribed statutory accounting practices include a variety of publications of the NAIC, as well as state laws, regulations and general administrative rules. Permitted statutory accounting practices encompass all accounting practices not so prescribed. All states require domiciled insurance companies to prepare statutory-basis financial statements in conformity with the NAIC Accounting Practices and Procedures Manual, subject to any deviations prescribed or permitted by the applicable insurance commissioner and/or director. Statutory accounting practices differ from GAAP primarily since they require charging policy acquisition and certain sales inducement costs to expense as incurred, establishing life insurance reserves based on different actuarial assumptions, and valuing certain investments and establishing deferred taxes on a different basis. Statutory net (loss) income of ALIC and its insurance subsidiaries was $(67) million, $1.01 billion and $447 million in 2015, 2014 and 2013, respectively. Statutory capital and surplus was $2.87 billion and $2.71 billion as of December 31, 2015 and 2014, respectively. Dividend Limitations The ability of ALIC to pay dividends is dependent on business conditions, income, cash requirements and other relevant factors. The payment of shareholder dividends by ALIC to AIC without the prior approval of the Illinois Department of Insurance (“IL DOI”) is limited to formula amounts based on net income and capital and surplus, determined in conformity with statutory accounting practices, as well as the timing and amount of dividends paid in the preceding twelve months. The Company paid dividends of $103 million in 2015. The maximum amount of dividends ALIC will be able to pay without prior IL DOI approval at a given point in time during 2016 is $287 million, less dividends paid during the preceding twelve months measured at that point in time. Additionally, any dividend must be paid out of unassigned surplus excluding unrealized appreciation from investments, which for ALIC totaled $334 million as of December 31, 2015. Under state insurance laws, insurance companies are required to maintain paid up capital of not less than the minimum capital requirement applicable to the types of insurance they are authorized to write. Insurance companies are also subject to risk-based capital (“RBC”) requirements adopted by state insurance regulators. A company’s “authorized control level RBC” is calculated using various factors applied to certain financial balances and activity. Companies that do not maintain adjusted statutory capital and surplus at a level in excess of the company action level RBC, which is two times authorized control level RBC, are required to take specified actions. Company action level RBC is significantly in excess of the minimum capital requirements. Total adjusted statutory capital and surplus and authorized control level RBC of ALIC were $3.26 billion and $563 million, respectively, as of December 31, 2015. ALIC’s insurance subsidiaries are included as a component of ALIC’s total statutory capital and surplus. Intercompany transactions Notification and approval of intercompany lending activities is also required by the IL DOI when ALIC does not have unassigned surplus and for transactions that exceed a level that is based on a formula using statutory admitted assets and statutory surplus.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References + Details

Benefit Plans	12 Months Ended
Benefit Plans	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Benefit Plans	Benefit Plans Pension and other postretirement plans Defined benefit pension plans, sponsored by the Corporation, cover most full-time employees, certain part-time employees and employee-agents. Benefits under the pension plans are based upon the employee’s length of service and eligible annual compensation. The cost allocated to the Company for the pension plans was $6 million, $7 million and $51 million in 2015, 2014 and 2013, respectively. The Corporation has reserved the right to modify or terminate its benefit plans at any time and for any reason. Allstate 401(k) Savings Plan Employees of AIC are eligible to become members of the Allstate 401(k) Savings Plan (“Allstate Plan”). The Corporation’s contributions are based on the Corporation’s matching obligation and certain performance measures. The cost allocated to the Company for the Allstate Plan was $5 million, $7 million and $6 million in 2015, 2014 and 2013, respectively.

Other Comprehensive Income

12 Months Ended

Dec. 31, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income

The components of other comprehensive (loss) income on a pre-tax and after-tax basis for the years ended December 31 are as follows:



($ in millions)	2015									2014									2013
	Pre- tax			Tax			After- tax			Pre- tax			Tax			After- tax			Pre- tax			Tax			After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	(1,048	)	$	366		$	(682	)	$	805		$	(282	)	$	523		$	(1,047	)	$	367		$	(680	)
Less: reclassification adjustment of realized capital gains and losses	265			(93		)	172			104			(36		)	68			42			(15		)	27
Unrealized net capital gains and losses	(1,313		)	459			(854		)	701			(246		)	455			(1,089		)	382			(707		)
Unrealized foreign currency translation adjustments	(6		)	2			(4		)	(6		)	2			(4		)	3			(1		)	2
Other comprehensive (loss) income	$	(1,319	)	$	461		$	(858	)	$	695		$	(244	)	$	451		$	(1,086	)	$	381		$	(705	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=36458714&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e640-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e716-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e637-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=36458714&loc=d3e681-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

+ Details

Quarterly Results (unaudited)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results (unaudited)



($ in millions)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2015		2014		2015		2014		2015		2014		2015		2014
Revenues	$	927	$	1,049	$	862	$	851	$	992	$	823	$	641	$	937
Net income	153		127		150		132		239		84		19		183

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

12 Months Ended

Dec. 31, 2015

Summary of Investments, Other than Investments in Related Parties [Abstract]

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES

SCHEDULE I - SUMMARY OF INVESTMENTS

OTHER THAN INVESTMENTS IN RELATED PARTIES

DECEMBER 31, 2015



($ in millions)	Cost/ amortized cost		Fair value		Amount at which shown in the Balance Sheet
Type of investment
Fixed maturities:
Bonds:
United States government, government agencies and authorities	$	920	$	977	$	977
States, municipalities and political subdivisions	2,162		2,442		2,442
Foreign governments	348		384		384
Public utilities	3,148		3,411		3,411
All other corporate bonds	14,921		15,093		15,093
Asset-backed securities	1,443		1,420		1,420
Residential mortgage-backed securities	406		451		451
Commercial mortgage-backed securities	409		436		436
Redeemable preferred stocks	13		15		15
Total fixed maturities	23,770		$	24,629	24,629

Equity securities:
Common stocks:
Public utilities	39		$	38	38
Banks, trusts and insurance companies	379		381		381
Industrial, miscellaneous and all other	1,085		1,103		1,103
Nonredeemable preferred stocks	23		20		20
Total equity securities	1,526		$	1,542	1,542

Mortgage loans on real estate	3,781		$	3,920	3,781
Real estate (includes $6 acquired in satisfaction of debt)	72				72
Policy loans	572				572
Derivative instruments	43		$	49	49
Limited partnership interests	2,295				2,295
Other long-term investments	1,206				1,206
Short-term investments	816		$	816	816
Total investments	$	34,081			$	34,962

SCHEDULE IV - REINSURANCE

12 Months Ended

Dec. 31, 2015

Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]

SCHEDULE IV - REINSURANCE



($ in millions)	Gross amount		Ceded to other companies ⁽¹⁾		Assumed from other companies		Net amount		Percentage of amount assumed to net
Year ended December 31, 2015
Life insurance in force	$	127,978	$	98,527	$	296,291	$	325,742	91.0	%

Premiums and contract charges:
Life insurance	$	689	$	334	$	898	$	1,253	71.7	%
Accident and health insurance	39		22		68		85		80.0	%
Total premiums and contract charges	$	728	$	356	$	966	$	1,338	72.2	%

Year ended December 31, 2014
Life insurance in force	$	119,024	$	97,574	$	305,313	$	326,763	93.4	%

Premiums and contract charges:
Life insurance	$	1,022	$	353	$	674	$	1,343	50.2	%
Accident and health insurance	62		39		70		93		75.3	%
Total premiums and contract charges	$	1,084	$	392	$	744	$	1,436	51.8	%

Year ended December 31, 2013
Life insurance in force	$	512,105	$	195,414	$	28,060	$	344,751	8.1	%

Premiums and contract charges:
Life insurance	$	1,969	$	532	$	125	$	1,562	8.0	%
Accident and health insurance	124		86		67		105		63.8	%
Total premiums and contract charges	$	2,093	$	618	$	192	$	1,667	11.5	%

______________________________


⁽¹⁾	No reinsurance or coinsurance income was netted against premium ceded in 2015, 2014 or 2013.

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2015

Valuation and Qualifying Accounts [Abstract]

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS



($ in millions)			Additions
Description	Balance as of beginning of period		Charged to costs and expenses			Other additions		Deductions		Balance as of end of period

Year ended December 31, 2015

Allowance for estimated losses on mortgage loans	$	8	$	(4	)	$	—	$	1	$	3

Year ended December 31, 2014

Allowance for estimated losses on mortgage loans	$	21	$	(5	)	$	—	$	8	$	8

Year ended December 31, 2013

Allowance for estimated losses on mortgage loans	$	42	$	(11	)	$	—	$	10	$	21

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2015
Accounting Policies [Abstract]
Investments	Investments Fixed income securities include bonds, asset-backed securities (“ABS”), residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and redeemable preferred stocks. Fixed income securities, which may be sold prior to their contractual maturity, are designated as available for sale and are carried at fair value. The difference between amortized cost and fair value, net of deferred income taxes and related deferred policy acquisition costs (“DAC”), deferred sales inducement costs (“DSI”) and reserves for life-contingent contract benefits, is reflected as a component of accumulated other comprehensive income. Cash received from calls and make-whole payments is reflected as a component of proceeds from sales and cash received from maturities and pay-downs is reflected as a component of investment collections within the Consolidated Statements of Cash Flows. Mortgage loans are carried at unpaid principal balances, net of unamortized premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. Equity securities primarily include common stocks, exchange traded and mutual funds, non-redeemable preferred stocks and real estate investment trust equity investments. Equity securities are designated as available for sale and are carried at fair value. The difference between cost and fair value, net of deferred income taxes, is reflected as a component of accumulated other comprehensive income. Investments in limited partnership interests include interests in private equity funds and co-investments, real estate funds and joint ventures, and other funds. Where the Company’s interest is so minor that it exercises virtually no influence over operating and financial policies, investments in limited partnership interests are accounted for in accordance with the cost method of accounting; all other investments in limited partnership interests are accounted for in accordance with the equity method of accounting (“EMA”). Short-term investments, including money market funds, commercial paper and other short-term investments, are carried at fair value. Policy loans are carried at unpaid principal balances. Other investments primarily consist of bank loans, agent loans, notes due from related party and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost. Agent loans are loans issued to exclusive Allstate agents and are carried at unpaid principal balances, net of valuation allowances and unamortized deferred fees or costs. Notes due from related party are carried at outstanding principal balances. Derivatives are carried at fair value. Investment income primarily consists of interest, dividends, income from limited partnership interests, and income from certain derivative transactions. Interest is recognized on an accrual basis using the effective yield method and dividends are recorded at the ex-dividend date. Interest income for ABS, RMBS and CMBS is determined considering estimated pay-downs, including prepayments, obtained from third party data sources and internal estimates. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. For ABS, RMBS and CMBS of high credit quality with fixed interest rates, the effective yield is recalculated on a retrospective basis. For all others, the effective yield is recalculated on a prospective basis. Accrual of income is suspended for other-than-temporarily impaired fixed income securities when the timing and amount of cash flows expected to be received is not reasonably estimable. Accrual of income is suspended for mortgage loans, bank loans and agent loans that are in default or when full and timely collection of principal and interest payments is not probable. Cash receipts on investments on nonaccrual status are generally recorded as a reduction of carrying value. Income from cost method limited partnership interests is recognized upon receipt of amounts distributed by the partnerships. Income from EMA limited partnership interests is recognized based on the Company’s share of the partnerships’ net income, including unrealized gains and losses, and is generally recognized on a three month delay due to the availability of the related financial statements. Realized capital gains and losses include gains and losses on investment sales, write-downs in value due to other-than-temporary declines in fair value, adjustments to valuation allowances on mortgage loans and agent loans, and periodic changes in fair value and settlements of certain derivatives including hedge ineffectiveness. Realized capital gains and losses on investment sales are determined on a specific identification basis.
Derivative and embedded derivative financial instruments	Derivative and embedded derivative financial instruments Derivative financial instruments include interest rate swaps, credit default swaps, futures (interest rate and equity), options (including swaptions), interest rate caps, warrants, foreign currency swaps, foreign currency forwards and certain investment risk transfer reinsurance agreements. Derivatives required to be separated from the host instrument and accounted for as derivative financial instruments (“subject to bifurcation”) are embedded in certain fixed income securities, equity-indexed life and annuity contracts, reinsured variable annuity contracts and certain funding agreements. All derivatives are accounted for on a fair value basis and reported as other investments, other assets, other liabilities and accrued expenses or contractholder funds. Embedded derivative instruments subject to bifurcation are also accounted for on a fair value basis and are reported together with the host contract. The change in fair value of derivatives embedded in certain fixed income securities and subject to bifurcation is reported in realized capital gains and losses. The change in fair value of derivatives embedded in life and annuity product contracts and subject to bifurcation is reported in contract benefits or interest credited to contractholder funds. Cash flows from embedded derivatives subject to bifurcation and derivatives receiving hedge accounting are reported consistently with the host contracts and hedged risks, respectively, within the Consolidated Statements of Cash Flows. Cash flows from other derivatives are reported in cash flows from investing activities within the Consolidated Statements of Cash Flows. 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. The hedged item may be either all or a specific portion of a recognized asset, liability or an unrecognized firm commitment attributable to a particular risk for fair value hedges. At the inception of the hedge, the Company formally documents the hedging relationship and risk management objective and strategy. The documentation identifies the hedging instrument, the hedged item, the nature of the risk being hedged and the methodology used to assess the effectiveness of the hedging instrument in offsetting the exposure to changes in the hedged item’s fair value attributable to the hedged risk. For a cash flow hedge, this documentation includes the exposure to changes in the variability in cash flows attributable to the hedged risk. The Company does not exclude any component of the change in fair value of the hedging instrument from the effectiveness assessment. At each reporting date, the Company confirms that the hedging instrument continues to be highly effective in offsetting the hedged risk. Ineffectiveness in fair value hedges and cash flow hedges, if any, is reported in realized capital gains and losses. Fair value hedges The change in fair value of hedging instruments used in fair value hedges of investment assets or a portion thereof is reported in net investment income, together with the change in fair value of the hedged items. The change in fair value of hedging instruments used in fair value hedges of contractholder funds liabilities or a portion thereof is reported in interest credited to contractholder funds, together with the change in fair value of the hedged items. Accrued periodic settlements on swaps are reported together with the changes in fair value of the swaps in net investment income or interest credited to contractholder funds. The amortized cost for fixed income securities, the carrying value for mortgage loans or the carrying value of the hedged liability is adjusted for the change in fair value of the hedged risk. Cash flow hedges For hedging instruments used in cash flow hedges, the changes in fair value of the derivatives representing the effective portion of the hedge are reported in accumulated other comprehensive income. Amounts are reclassified to net investment income or realized capital gains and losses as the hedged or forecasted transaction affects income. Accrued periodic settlements on derivatives used in cash flow hedges are reported in net investment income. The amount reported in accumulated other comprehensive income for a hedged transaction is limited to the lesser of the cumulative gain or loss on the derivative less the amount reclassified to income, or the cumulative gain or loss on the derivative needed to offset the cumulative change in the expected future cash flows on the hedged transaction from inception of the hedge less the derivative gain or loss previously reclassified from accumulated other comprehensive income to income. If the Company expects at any time that the loss reported in accumulated other comprehensive income would lead to a net loss on the combination of the hedging instrument and the hedged transaction which may not be recoverable, a loss is recognized immediately in realized capital gains and losses. If an impairment loss is recognized on an asset or an additional obligation is incurred on a liability involved in a hedge transaction, any offsetting gain in accumulated other comprehensive income is reclassified and reported together with the impairment loss or recognition of the obligation. Termination of hedge accounting If, subsequent to entering into a hedge transaction, the derivative becomes ineffective (including if the hedged item is sold or otherwise extinguished, the occurrence of a hedged forecasted transaction is no longer probable or the hedged asset becomes other-than-temporarily impaired), the Company may terminate the derivative position. The Company may also terminate derivative instruments or redesignate them as non-hedge as a result of other events or circumstances. If the derivative instrument is not terminated when a fair value hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a fair value hedge is no longer effective, is redesignated as non-hedge or when the derivative has been terminated, the fair value gain or loss on the hedged asset, liability or portion thereof which has already been recognized in income while the hedge was in place and used to adjust the amortized cost for fixed income securities, the carrying value for mortgage loans or the carrying value of the hedged liability, is amortized over the remaining life of the hedged asset, liability or portion thereof, and reflected in net investment income or interest credited to contractholder funds beginning in the period that hedge accounting is no longer applied. If the hedged item in a fair value hedge is an asset that has become other-than-temporarily impaired, the adjustment made to the amortized cost for fixed income securities or the carrying value for mortgage loans is subject to the accounting policies applied to other-than-temporarily impaired assets. When a derivative instrument used in a cash flow hedge of an existing asset or liability is no longer effective or is terminated, the gain or loss recognized on the derivative is reclassified from accumulated other comprehensive income to income as the hedged risk impacts income. If the derivative instrument is not terminated when a cash flow hedge is no longer effective, the future gains and losses recognized on the derivative are reported in realized capital gains and losses. When a derivative instrument used in a cash flow hedge of a forecasted transaction is terminated because it is probable the forecasted transaction will not occur, the gain or loss recognized on the derivative is immediately reclassified from accumulated other comprehensive income to realized capital gains and losses in the period that hedge accounting is no longer applied. Non-hedge derivative financial instruments For derivatives for which hedge accounting is not applied, the income statement effects, including fair value gains and losses and accrued periodic settlements, are reported either in realized capital gains and losses or in a single line item together with the results of the associated asset or liability for which risks are being managed.
Securities loaned	Securities loaned The Company’s business activities include securities lending transactions, which are used primarily to generate net investment income. The proceeds received in conjunction with securities lending transactions are reinvested in short-term investments. These transactions are short-term in nature, usually 30 days or less. The Company receives cash collateral for securities loaned in an amount generally equal to 102% of the fair value of securities and records the related obligations to return the collateral in other liabilities and accrued expenses. The carrying value of these obligations approximates fair value because of their relatively short-term nature. The Company monitors the market value of securities loaned on a daily basis and obtains additional collateral as necessary under the terms of the agreements to mitigate counterparty credit risk. The Company maintains the right and ability to repossess the securities loaned on short notice.
Recognition of premium revenues and contract charges, and related benefits and interest credited	Recognition of premium revenues and contract charges, and related benefits and interest credited Traditional life insurance products consist principally of products with fixed and guaranteed premiums and benefits, primarily term and whole life insurance products. Voluntary accident and health insurance products are expected to remain in force for an extended period and therefore are primarily classified as long-duration contracts. Premiums from these products are recognized as revenue when due from policyholders. Benefits are reflected in contract benefits and recognized in relation to premiums, so that profits are recognized over the life of the policy. Immediate annuities with life contingencies, including certain structured settlement annuities, provide insurance protection over a period that extends beyond the period during which premiums are collected. Premiums from these products are recognized as revenue when received at the inception of the contract. Benefits and expenses are recognized in relation to premiums. Profits from these policies come from investment income, which is recognized over the life of the contract. Interest-sensitive life contracts, such as universal life and single premium life, are insurance contracts whose terms are not fixed and guaranteed. The terms that may be changed include premiums paid by the contractholder, interest credited to the contractholder account balance and contract charges assessed against the contractholder account balance. Premiums from these contracts are reported as contractholder fund deposits. Contract charges consist of fees assessed against the contractholder account balance for the cost of insurance (mortality risk), contract administration and surrender of the contract prior to contractually specified dates. These contract charges are recognized as revenue when assessed against the contractholder account balance. Contract benefits include life-contingent benefit payments in excess of the contractholder account balance. Contracts that do not subject the Company to significant risk arising from mortality or morbidity are referred to as investment contracts. Fixed annuities, including market value adjusted annuities, equity-indexed annuities and immediate annuities without life contingencies, and funding agreements (primarily backing medium-term notes) are considered investment contracts. Consideration received for such contracts is reported as contractholder fund deposits. Contract charges for investment contracts consist of fees assessed against the contractholder account balance for maintenance, administration and surrender of the contract prior to contractually specified dates, and are recognized when assessed against the contractholder account balance. Interest credited to contractholder funds represents interest accrued or paid on interest-sensitive life and investment contracts. Crediting rates for certain fixed annuities and interest-sensitive life contracts are adjusted periodically by the Company to reflect current market conditions subject to contractually guaranteed minimum rates. Crediting rates for indexed life and annuities and indexed funding agreements are generally based on a specified interest rate index or an equity index, such as the Standard & Poor’s (“S&P”) 500 Index. Interest credited also includes amortization of DSI expenses. DSI is amortized into interest credited using the same method used to amortize DAC. Contract charges for variable life and variable annuity products consist of fees assessed against the contractholder account balances for contract maintenance, administration, mortality, expense and surrender of the contract prior to contractually specified dates. Contract benefits incurred for variable annuity products include guaranteed minimum death, income, withdrawal and accumulation benefits. Substantially all of the Company’s variable annuity business is ceded through reinsurance agreements and the contract charges and contract benefits related thereto are reported net of reinsurance ceded.
Deferred policy acquisition and sales inducement costs	Deferred policy acquisition and sales inducement costs Costs that are related directly to the successful acquisition of new or renewal life insurance and investment contracts are deferred and recorded as DAC. These costs are principally agents’ and brokers’ remuneration and certain underwriting expenses. DSI costs, which are deferred and recorded as other assets, relate to sales inducements offered on sales to new customers, principally on fixed annuity and interest-sensitive life contracts. These sales inducements are primarily in the form of additional credits to the customer’s account balance or enhancements to interest credited for a specified period which are in excess of the rates currently being credited to similar contracts without sales inducements. All other acquisition costs are expensed as incurred and included in operating costs and expenses. Amortization of DAC is included in amortization of deferred policy acquisition costs and is described in more detail below. DSI is amortized into income using the same methodology and assumptions as DAC and is included in interest credited to contractholder funds. For traditional life insurance, DAC is amortized over the premium paying period of the related policies in proportion to the estimated revenues on such business. Assumptions used in the amortization of DAC and reserve calculations are established at the time the policy is issued and are generally not revised during the life of the policy. Any deviations from projected business in force resulting from actual policy terminations differing from expected levels and any estimated premium deficiencies may result in a change to the rate of amortization in the period such events occur. Generally, the amortization periods for these policies approximates the estimated lives of the policies. The Company periodically reviews the recoverability of DAC for these policies on an aggregate basis using actual experience. The Company aggregates all traditional life insurance products and immediate annuities with life contingencies in the analysis. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. For interest-sensitive life insurance and fixed annuities, DAC and DSI are amortized in proportion to the incidence of the total present value of gross profits, which includes both actual historical gross profits (“AGP”) and estimated future gross profits (“EGP”) expected to be earned over the estimated lives of the contracts. The amortization is net of interest on the prior period DAC balance using rates established at the inception of the contracts. Actual amortization periods generally range from 15-30 years; however, incorporating estimates of the rate of customer surrenders, partial withdrawals and deaths generally results in the majority of the DAC being amortized during the surrender charge period, which is typically 10-20 years for interest-sensitive life and 5-10 years for fixed annuities. The cumulative DAC and DSI amortization is reestimated and adjusted by a cumulative charge or credit to income when there is a difference between the incidence of actual versus expected gross profits in a reporting period or when there is a change in total EGP. When DAC or DSI amortization or a component of gross profits for a quarterly period is potentially negative (which would result in an increase of the DAC or DSI balance) as a result of negative AGP, the specific facts and circumstances surrounding the potential negative amortization are considered to determine whether it is appropriate for recognition in the consolidated financial statements. Negative amortization is only recorded when the increased DAC or DSI balance is determined to be recoverable based on facts and circumstances. Recapitalization of DAC and DSI is limited to the originally deferred costs plus interest. AGP and EGP primarily consist of the following components: contract charges for the cost of insurance less mortality costs and other benefits; investment income and realized capital gains and losses less interest credited; and surrender and other contract charges less maintenance expenses. The principal assumptions for determining the amount of EGP are persistency, mortality, expenses, investment returns, including capital gains and losses on assets supporting contract liabilities, interest crediting rates to contractholders, and the effects of any hedges. For products whose supporting investments are exposed to capital losses in excess of the Company’s expectations which may cause periodic AGP to become temporarily negative, EGP and AGP utilized in DAC and DSI amortization may be modified to exclude the excess capital losses. The Company performs quarterly reviews of DAC and DSI recoverability for interest-sensitive life and fixed annuity contracts in the aggregate using current assumptions. If a change in the amount of EGP is significant, it could result in the unamortized DAC or DSI not being recoverable, resulting in a charge which is included as a component of amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The DAC and DSI balances presented include adjustments to reflect the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized capital gains or losses in the respective product investment portfolios were actually realized. The adjustments are recorded net of tax in accumulated other comprehensive income. DAC, DSI and deferred income taxes determined on unrealized capital gains and losses and reported in accumulated other comprehensive income recognize the impact on shareholder’s equity consistently with the amounts that would be recognized in the income statement on realized capital gains and losses. Customers of the Company may exchange one insurance policy or investment contract for another offered by the Company, or make modifications to an existing investment or life contract issued by the Company. These transactions are identified as internal replacements for accounting purposes. Internal replacement transactions determined to result in replacement contracts that are substantially unchanged from the replaced contracts are accounted for as continuations of the replaced contracts. Unamortized DAC and DSI related to the replaced contracts continue to be deferred and amortized in connection with the replacement contracts. For interest-sensitive life and investment contracts, the EGP of the replacement contracts are treated as a revision to the EGP of the replaced contracts in the determination of amortization of DAC and DSI. For traditional life insurance policies, any changes to unamortized DAC that result from replacement contracts are treated as prospective revisions. Any costs associated with the issuance of replacement contracts are characterized as maintenance costs and expensed as incurred. Internal replacement transactions determined to result in a substantial change to the replaced contracts are accounted for as an extinguishment of the replaced contracts, and any unamortized DAC and DSI related to the replaced contracts are eliminated with a corresponding charge to amortization of deferred policy acquisition costs or interest credited to contractholder funds, respectively. The costs assigned to the right to receive future cash flows from certain business purchased from other insurers are also classified as DAC in the Consolidated Statements of Financial Position. The costs capitalized represent the present value of future profits expected to be earned over the lives of the contracts acquired. These costs are amortized as profits emerge over the lives of the acquired business and are periodically evaluated for recoverability.
Reinsurance	Reinsurance In the normal course of business, the Company seeks to limit aggregate and single exposure to losses on large risks by purchasing reinsurance. The Company has also used reinsurance to effect the disposition of certain blocks of business. The amounts reported as reinsurance recoverables include amounts billed to reinsurers on losses paid as well as estimates of amounts expected to be recovered from reinsurers on insurance liabilities and contractholder funds that have not yet been paid. Reinsurance recoverables on unpaid losses are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Insurance liabilities are reported gross of reinsurance recoverables. Reinsurance premiums are generally reflected in income in a manner consistent with the recognition of premiums on the reinsured contracts. Reinsurance does not extinguish the Company’s primary liability under the policies written. Therefore, the Company regularly evaluates the financial condition of its reinsurers and establishes allowances for uncollectible reinsurance as appropriate.
Income taxes	Income taxes The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recorded based on the difference between the financial statement and tax bases of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are DAC, insurance reserves and unrealized capital gains and losses. A deferred tax asset valuation allowance is established when there is uncertainty that such assets will be realized.
Reserve for life-contingent contract benefits	Reserve for life-contingent contract benefits The reserve for life-contingent contract benefits payable under insurance policies, including traditional life insurance, life-contingent immediate annuities and voluntary accident and health insurance products, is computed on the basis of long-term actuarial assumptions of future investment yields, mortality, morbidity, policy terminations and expenses. These assumptions, which for traditional life insurance are applied using the net level premium method, include provisions for adverse deviation and generally vary by characteristics such as type of coverage, year of issue and policy duration. The assumptions are established at the time the policy is issued and are generally not changed during the life of the policy. The Company periodically reviews the adequacy of reserves for these policies on an aggregate basis using actual experience. If actual experience is significantly adverse compared to the original assumptions and a premium deficiency is determined to exist, any remaining unamortized DAC balance would be expensed to the extent not recoverable and the establishment of a premium deficiency reserve may be required. To the extent that unrealized gains on fixed income securities would result in a premium deficiency if those gains were realized, the related increase in reserves for certain immediate annuities with life contingencies is recorded net of tax as a reduction of unrealized net capital gains included in accumulated other comprehensive income.
Contractholder funds	Contractholder funds Contractholder funds represent interest-bearing liabilities arising from the sale of products such as interest-sensitive life insurance, fixed annuities and funding agreements. Contractholder funds primarily comprise cumulative deposits received and interest credited to the contractholder less cumulative contract benefits, surrenders, withdrawals, maturities and contract charges for mortality or administrative expenses. Contractholder funds also include reserves for secondary guarantees on interest-sensitive life insurance and certain fixed annuity contracts and reserves for certain guarantees on reinsured variable annuity contracts.
Separate accounts	Separate accounts Separate accounts assets are carried at fair value. The assets of the separate accounts are legally segregated and available only to settle separate account contract obligations. Separate accounts liabilities represent the contractholders’ claims to the related assets and are carried at an amount equal to the separate accounts assets. Investment income and realized capital gains and losses of the separate accounts accrue directly to the contractholders and therefore are not included in the Company’s Consolidated Statements of Operations and Comprehensive Income. Deposits to and surrenders and withdrawals from the separate accounts are reflected in separate accounts liabilities and are not included in consolidated cash flows. Absent any contract provision wherein the Company provides a guarantee, variable annuity and variable life insurance contractholders bear the investment risk that the separate accounts’ funds may not meet their stated investment objectives. Substantially all of the Company’s variable annuity business was reinsured beginning in 2006.
Off-balance sheet financial instruments	Off-balance sheet financial instruments Commitments to invest, commitments to purchase private placement securities, commitments to extend loans, financial guarantees and credit guarantees have off-balance sheet risk because their contractual amounts are not recorded in the Company’s Consolidated Statements of Financial Position (see Note 8 and Note 12).
Accounting standards	Adopted accounting standard Accounting for Investments in Qualified Affordable Housing Projects In January 2014, the Financial Accounting Standards Board (“FASB”) issued guidance which allows entities that invest in certain qualified affordable housing projects through limited liability entities the option to account for these investments using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense or benefit. Adoption of the new guidance in the first quarter of 2015 resulted in a one-time $17 million increase in income tax expense. Pending accounting standards 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 guidance is effective for annual and interim reporting periods beginning after December 15, 2015. The Company is in the process of assessing the impact of adoption which is not expected to be material to 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 impact is expected to be the change in accounting for equity securities and cost method limited partnership interests.

General (Tables)

12 Months Ended

Dec. 31, 2015

General

Summary of premiums and contract charges by product

The following table summarizes premiums and contract charges by product.



($ in millions)	2015		2014		2013
Premiums
Traditional life insurance	$	515	$	492	$	471
Immediate annuities with life contingencies	—		4		37
Accident and health insurance	85		93		105
Total premiums	600		589		613

Contract charges
Interest-sensitive life insurance	724		828		1,036
Fixed annuities	14		19		18
Total contract charges	738		847		1,054
Total premiums and contract charges	$	1,338	$	1,436	$	1,667

Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2015

Supplemental Cash Flow Information [Abstract]

Schedule of supplemental cash flow information from collateralized securities received

The accompanying cash flows are included in cash flows from operating activities in the Consolidated Statements of Cash Flows along with the activities resulting from management of the proceeds, which for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Net change in proceeds managed
Net change in short-term investments	$	(41	)	$	(182	)	$	235
Operating cash flow (used) provided	(41		)	(182		)	235
Net change in cash	1			—			(2		)
Net change in proceeds managed	$	(40	)	$	(182	)	$	233

Net change in liabilities
Liabilities for collateral, beginning of year	$	(510	)	$	(328	)	$	(561	)
Liabilities for collateral, end of year	(550		)	(510		)	(328		)
Operating cash flow provided (used)	$	40		$	182		$	(233	)

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of notes due to related parties

Notes due to related parties outstanding as of December 31 consisted of the following:



($ in millions)	2015		2014
6.74% Surplus Note, due 2029, to Kennett ⁽¹⁾	$	25	$	25
3.24% Surplus Note, due 2035, to Kennett⁽¹⁾	100		100
6.18% Surplus Note, due 2036, to Kennett ⁽¹⁾	100		100
5.93% Surplus Note, due 2038, to Kennett⁽¹⁾	50		50
Total notes due to related parties	$	275	$	275

____________


⁽¹⁾	No payment of principal or interest is permitted on the surplus notes without the written approval from the proper regulatory authority. The regulatory authority could prohibit the payment of interest and principal on the surplus notes if certain statutory capital requirements are not met. Permission to pay interest on the surplus notes was granted in 2015, 2014 and 2013.

Investments (Tables)

12 Months Ended

Dec. 31, 2015

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
December 31, 2015
U.S. government and agencies	$	920	$	57	$	—		$	977
Municipal	2,162		292		(12		)	2,442
Corporate	18,069		849		(414		)	18,504
Foreign government	348		36		—			384
ABS	1,443		5		(28		)	1,420
RMBS	406		49		(4		)	451
CMBS	409		31		(4		)	436
Redeemable preferred stock	13		2		—			15
Total fixed income securities	$	23,770	$	1,321	$	(462	)	$	24,629

December 31, 2014
U.S. government and agencies	$	668	$	102	$	—		$	770
Municipal	3,156		520		(14		)	3,662
Corporate	19,465		1,670		(150		)	20,985
Foreign government	654		81		—			735
ABS	773		13		(21		)	765
RMBS	554		55		(4		)	605
CMBS	538		43		(2		)	579
Redeemable preferred stock	14		2		—			16
Total fixed income securities	$	25,822	$	2,486	$	(191	)	$	28,117

Schedule for fixed income securities based on contractual maturities

The scheduled maturities for fixed income securities are as follows as of December 31, 2015:



($ in millions)	Amortized cost		Fair value
Due in one year or less	$	996	$	1,004
Due after one year through five years	7,362		7,640
Due after five years through ten years	8,374		8,475
Due after ten years	4,780		5,203
	21,512		22,322
ABS, RMBS and CMBS	2,258		2,307
Total	$	23,770	$	24,629

Schedule of net investment income

Net investment income for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	1,246		$	1,522		$	1,947
Mortgage loans	203			242			345
Equity securities	28			20			12
Limited partnership interests	287			267			175
Short-term investments	3			2			2
Policy loans	34			39			49
Other	75			59			63
Investment income, before expense	1,876			2,151			2,593
Investment expense	(57		)	(70		)	(108		)
Net investment income	$	1,819		$	2,081		$	2,485

Schedule of realized capital gains and losses by asset type

Realized capital gains and losses by asset type for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	309		$	(4	)	$	3
Mortgage loans	6			2			20
Equity securities	(23		)	134			45
Limited partnership interests	(32		)	(4		)	(6		)
Derivatives	13			12			14
Other	(8		)	3			—
Realized capital gains and losses	$	265		$	143		$	76

Schedule of realized capital gains and losses by transaction type

Realized capital gains and losses by transaction type for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Impairment write-downs	$	(63	)	$	(11	)	$	(33	)
Change in intent write-downs	(65		)	(44		)	(19		)
Net other-than-temporary impairment losses recognized in earnings	(128		)	(55		)	(52		)
Sales and other	383			184			114
Valuation and settlements of derivative instruments	10			14			14
Realized capital gains and losses	$	265		$	143		$	76

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

Other-than-temporary impairment losses by asset type for the years ended December 31 are as follows:



($ in millions)	2015								2014									2013
	Gross			Included in OCI		Net			Gross			Included in OCI			Net			Gross			Included in OCI			Net
Fixed income securities:
Municipal	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)	$	(8	)	$	—		$	(8	)
Corporate	(25		)	6		(19		)	(4		)	—			(4		)	—			—			—
ABS	(16		)	10		(6		)	(5		)	—			(5		)	—			(2		)	(2		)
RMBS	—			—		—			2			(1		)	1			(2		)	2			—
CMBS	(1		)	—		(1		)	(1		)	—			(1		)	(32		)	(3		)	(35		)
Total fixed income securities	(42		)	16		(26		)	(9		)	(1		)	(10		)	(42		)	(3		)	(45		)
Mortgage loans	4			—		4			5			—			5			11			—			11
Equity securities	(83		)	—		(83		)	(32		)	—			(32		)	(6		)	—			(6		)
Limited partnership interests	(17		)	—		(17		)	(18		)	—			(18		)	(9		)	—			(9		)
Other	(6		)	—		(6		)	—			—			—			(3		)	—			(3		)
Other-than-temporary impairment losses	$	(144	)	$	16	$	(128	)	$	(54	)	$	(1	)	$	(55	)	$	(49	)	$	(3	)	$	(52	)

Schedule of other-than-temporary impairment losses on fixed income securities included in accumulated other comprehensive income



($ in millions)	December 31, 2015			December 31, 2014
Municipal	$	(5	)	$	(5	)
Corporate	(2		)	—
ABS	(12		)	(1		)
RMBS	(49		)	(55		)
CMBS	(6		)	(5		)
Total	$	(74	)	$	(66	)

Schedule of rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held

Rollforwards of the cumulative credit losses recognized in earnings for fixed income securities held as of December 31 are as follows:



($ in millions)	2015			2014			2013
Beginning balance	$	(209	)	$	(299	)	$	(345	)
Additional credit loss for securities previously other-than-temporarily impaired	(8		)	(6		)	(13		)
Additional credit loss for securities not previously other-than-temporarily impaired	(18		)	(9		)	(19		)
Reduction in credit loss for securities disposed or collected	33			44			75
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell	—			—			2
Change in credit loss due to accretion of increase in cash flows	2			2			1
Reduction in credit loss for securities sold in LBL disposition	—			59			—
Ending balance	$	(200	)	$	(209	)	$	(299	)

Schedule of unrealized net capital gains and losses included in accumulated other comprehensive income

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)
December 31, 2015	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	24,629	$	1,321	$	(462	)	$	859
Equity securities	1,542		76		(60		)	16
Short-term investments	816		—		—			—
Derivative instruments ⁽¹⁾	10		10		—			10
EMA limited partnerships ⁽²⁾								(2		)
Unrealized net capital gains and losses, pre-tax								883
Amounts recognized for:
Insurance reserves ⁽³⁾								—
DAC and DSI ⁽⁴⁾								(62		)
Amounts recognized								(62		)
Deferred income taxes								(293		)
Unrealized net capital gains and losses, after-tax								$	528

____________


⁽¹⁾	Included in the fair value of derivative instruments are $6 million classified as assets and $(4) 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, 2014	Fair value		Gains		Losses			Unrealized net gains (losses)
Fixed income securities	$	28,117	$	2,486	$	(191	)	$	2,295
Equity securities	970		57		(14		)	43
Short-term investments	857		—		—			—
Derivative instruments ⁽¹⁾	2		3		(1		)	2
EMA limited partnerships								(2		)
Investments classified as held for sale								—
Unrealized net capital gains and losses, pre-tax								2,338
Amounts recognized for:
Insurance reserves								(28		)
DAC and DSI								(176		)
Amounts recognized								(204		)
Deferred income taxes								(752		)
Unrealized net capital gains and losses, after-tax								$	1,382

____________


⁽¹⁾	Included in the fair value of derivative instruments are $3 million classified as assets and $1 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 years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Fixed income securities	$	(1,436	)	$	966		$	(2,353	)
Equity securities	(27		)	(42		)	50
Derivative instruments	8			15			4
EMA limited partnerships	—			—			(3		)
Investments classified as held for sale	—			(190		)	190
Total	(1,455		)	749			(2,112		)
Amounts recognized for:
Insurance reserves	28			(28		)	771
DAC and DSI	114			(20		)	252
Amounts recognized	142			(48		)	1,023
Deferred income taxes	459			(246		)	382
(Decrease) increase in unrealized net capital gains and losses, after-tax	$	(854	)	$	455		$	(707	)

Summary of gross unrealized losses and fair value of fixed income and equity 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
	Number of issues	Fair value		Unrealized losses			Number of issues	Fair value		Unrealized losses
December 31, 2015
Fixed income securities
U.S. government and agencies	6	$	91	$	—		—	$	—	$	—		$	—
Municipal	15	125		(3		)	5	25		(9		)	(12		)
Corporate	953	5,315		(281		)	78	568		(133		)	(414		)
Foreign government	1	2		—			—	—		—			—
ABS	81	1,152		(11		)	16	154		(17		)	(28		)
RMBS	38	7		—			40	53		(4		)	(4		)
CMBS	12	75		(2		)	1	2		(2		)	(4		)
Total fixed income securities	1,106	6,767		(297		)	140	802		(165		)	(462		)
Equity securities	279	543		(49		)	32	56		(11		)	(60		)
Total fixed income and equity securities	1,385	$	7,310	$	(346	)	172	$	858	$	(176	)	$	(522	)

Investment grade fixed income securities	780	$	5,429	$	(175	)	82	$	503	$	(90	)	$	(265	)
Below investment grade fixed income securities	326	1,338		(122		)	58	299		(75		)	(197		)
Total fixed income securities	1,106	$	6,767	$	(297	)	140	$	802	$	(165	)	$	(462	)

December 31, 2014
Fixed income securities
U.S. government and agencies	1	$	1	$	—		—	$	—	$	—		$	—
Municipal	17	90		(1		)	10	47		(13		)	(14		)
Corporate	281	1,780		(69		)	91	875		(81		)	(150		)
Foreign government	—	—		—			1	15		—			—
ABS	19	168		(2		)	23	217		(19		)	(21		)
RMBS	19	3		—			45	73		(4		)	(4		)
CMBS	8	33		—			3	32		(2		)	(2		)
Total fixed income securities	345	2,075		(72		)	173	1,259		(119		)	(191		)
Equity securities	294	327		(13		)	1	6		(1		)	(14		)
Total fixed income and equity securities	639	$	2,402	$	(85	)	174	$	1,265	$	(120	)	$	(205	)

Investment grade fixed income securities	167	$	1,275	$	(28	)	127	$	989	$	(79	)	$	(107	)
Below investment grade fixed income securities	178	800		(44		)	46	270		(40		)	(84		)
Total fixed income securities	345	$	2,075	$	(72	)	173	$	1,259	$	(119	)	$	(191	)

Principal geographic distribution of commercial real estate represented in the mortgage portfolio



(% of mortgage loan portfolio carrying value)	2015		2014
California	21.6	%	24.8	%
Texas	9.5		7.7
New Jersey	9.1		8.3
Illinois	8.0		9.2
Florida	5.9		4.7
New York	5.0		6.0

Types of property collateralizing the mortgage loans

The types of properties collateralizing the mortgage loans as of December 31 are as follows:



(% of mortgage loan portfolio carrying value)	2015		2014
Apartment complex	24.5	%	20.0	%
Office buildings	23.2		25.6
Retail	22.4		24.1
Warehouse	18.1		18.1
Other	11.8		12.2
Total	100.0	%	100.0	%

Contractual maturities of the commercial mortgage loan portfolio

The contractual maturities of the mortgage loan portfolio as of December 31, 2015 are as follows:



($ in millions)	Number of loans	Carrying value		Percent
2016	23	$	173	4.6	%
2017	32	356		9.4
2018	27	288		7.6
2019	8	206		5.4
Thereafter	196	2,758		73.0
Total	286	$	3,781	100.0	%

Summary of 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 and variable rate mortgage loans summarized by debt service coverage ratio distribution as of December 31.



($ in millions)	2015						2014
Debt service coverage ratio distribution	Fixed rate mortgage loans		Variable rate mortgage loans		Total		Fixed rate mortgage loans		Variable rate mortgage loans		Total
Below 1.0	$	55	$	—	$	55	$	110	$	—	$	110
1.0 - 1.25	357		—		357		387		—		387
1.26 - 1.50	1,120		—		1,120		1,118		1		1,119
Above 1.50	2,243		—		2,243		2,054		—		2,054
Total non-impaired mortgage loans	$	3,775	$	—	$	3,775	$	3,669	$	1	$	3,670

Schedule of net carrying value of impaired mortgage loans

The net carrying value of impaired mortgage loans as of December 31 is as follows:



($ in millions)	2015		2014
Impaired mortgage loans with a valuation allowance	$	6	$	16
Impaired mortgage loans without a valuation allowance	—		—
Total impaired mortgage loans	$	6	$	16
Valuation allowance on impaired mortgage loans	$	3	$	8

Schedule of rollforward of the valuation allowance on impaired mortgage loans

The rollforward of the valuation allowance on impaired mortgage loans for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Beginning balance	$	8		$	21		$	42
Net decrease in valuation allowance	(4		)	(5		)	(11		)
Charge offs	(1		)	(8		)	(8		)
Mortgage loans classified as held for sale	—			—			(2		)
Ending balance	$	3		$	8		$	21

Schedule of carrying value of past due mortgage loans

Payments on all mortgage loans were current as of December 31, 2015 and 2014.

Principal geographic distribution of municipal bond

The following table shows the principal geographic distribution of municipal bond issuers represented in the Company’s portfolio as of December 31. No other state represents more than 5% of the portfolio.



(% of municipal bond portfolio carrying value)	2015		2014
Texas	15.9	%	13.6	%
California	15.0		17.0
Oregon	8.4		5.8
New Jersey	6.8		5.1
Illinois	3.8		5.3

Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Summary of quantitative information about the significant unobservable inputs used in Level 3 fair value measurements

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	$	546		$	431		$	—					$	977
Municipal	—			2,364			78						2,442
Corporate - public	—			12,490			44						12,534
Corporate - privately placed	—			5,523			447						5,970
Foreign government	—			384			—						384
ABS - CDO	—			178			53						231
ABS - consumer and other	—			1,145			44						1,189
RMBS	—			451			—						451
CMBS	—			436			—						436
Redeemable preferred stock	—			15			—						15
Total fixed income securities	546			23,417			666						24,629
Equity securities	1,479			3			60						1,542
Short-term investments	193			623			—						816
Other investments: Free-standing derivatives	—			59			1			$	(11	)	49
Separate account assets	3,639			—			—						3,639
Other assets	1			—			1						2
Total recurring basis assets	5,858			24,102			728			(11		)	30,677
Non-recurring basis ⁽¹⁾	—			—			8						8
Total assets at fair value	$	5,858		$	24,102		$	736		$	(11	)	$	30,685
% of total assets at fair value	19.1		%	78.5		%	2.4		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(299	)				$	(299	)
Other liabilities: Free-standing derivatives	—			(7		)	(8		)	$	1		(14		)
Total liabilities at fair value	$	—		$	(7	)	$	(307	)	$	1		$	(313	)
% of total liabilities at fair value	—		%	2.2		%	98.1		%	(0.3		)%	100		%

_______________________

⁽¹⁾Includes $3 million of limited partnership interests and $5 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, 2014.



($ 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, 2014
Assets
Fixed income securities:
U.S. government and agencies	$	147		$	623		$	—					$	770
Municipal	—			3,556			106						3,662
Corporate - public	—			14,519			160						14,679
Corporate - privately placed	—			5,674			632						6,306
Foreign government	—			735			—						735
ABS - CDO	—			323			67						390
ABS - consumer and other	—			313			62						375
RMBS	—			605			—						605
CMBS	—			578			1						579
Redeemable preferred stock	—			16			—						16
Total fixed income securities	147			26,942			1,028						28,117
Equity securities	927			6			37						970
Short-term investments	90			767			—						857
Other investments: Free-standing derivatives	—			90			2			$	(2	)	90
Separate account assets	4,396			—			—						4,396
Other assets	1			—			1						2
Total recurring basis assets	5,561			27,805			1,068			(2		)	34,432
Non-recurring basis⁽¹⁾	—			—			9						9
Total assets at fair value	$	5,561		$	27,805		$	1,077		$	(2	)	$	34,441
% of total assets at fair value	16.2		%	80.7		%	3.1		%	—		%	100		%

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	—		$	(323	)				$	(323	)
Other liabilities: Free-standing derivatives	—			(24		)	(9		)	$	2		(31		)
Total liabilities at fair value	$	—		$	(24	)	$	(332	)	$	2		$	(354	)
% of total liabilities at fair value	—		%	6.8		%	93.8		%	(0.6		)%	100		%

________________________


⁽¹⁾	Includes $6 million of mortgage loans and $3 million of limited partnership interests 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
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	%
December 31, 2014
Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options	$	(278	)	Stochastic cash flow model	Projected option cost	1.0 - 2.0%	1.76	%

Schedule of 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 year ended December 31, 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:
Municipal	$	106		$	5		$	(5	)	$	—		$	—
Corporate - public	160			—			(2		)	—			(111		)
Corporate - privately placed	632			14			(17		)	10			(79		)
ABS - CDO	67			—			2			21			(17		)
ABS - consumer and other	62			(1		)	—			—			(41		)
CMBS	1			—			(1		)	—			—
Total fixed income securities	1,028			18			(23		)	31			(248		)
Equity securities	37			(1		)	(3		)	—			—
Free-standing derivatives, net	(7		)	1			—			—			—
Other assets	1			—			—			—			—
Total recurring Level 3 assets	$	1,059		$	18		$	(26	)	$	31		$	(248	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(323	)	$	19		$	—		$	—		$	—
Total recurring Level 3 liabilities	$	(323	)	$	19		$	—		$	—		$	—

	Purchases			Issues			Sales			Settlements			Balance as of December 31, 2015
Assets
Fixed income securities:
Municipal	$	—		$	—		$	(23	)	$	(5	)	$	78
Corporate - public	1			—			—			(4		)	44
Corporate - privately placed	29			—			(67		)	(75		)	447
ABS - CDO	—			—			(1		)	(19		)	53
ABS - consumer and other	27			—			—			(3		)	44
CMBS	—			—			—			—			—
Total fixed income securities	57			—			(91		)	(106		)	666
Equity securities	32			—			(5		)	—			60
Free-standing derivatives, net	—			—			—			(1		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Total recurring Level 3 assets	$	89		$	—		$	(96	)	$	(107	)	$	720
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(2	)	$	—		$	7		$	(299	)
Total recurring Level 3 liabilities	$	—		$	(2	)	$	—		$	7		$	(299	)

_____________________


⁽¹⁾	The effect to net income totals $37 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $6 million in realized capital gains and losses, $12 million in net investment income, $26 million in interest credited to contractholder funds and $(7) million in 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 year ended December 31, 2014.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2013			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	119		$	—		$	18		$	—		$	(17	)
Corporate	1,008			20			(14		)	85			(114		)
ABS	112			—			3			16			(12		)
CMBS	1			—			—			—			(4		)
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	1,241			20			7			101			(147		)
Equity securities	6			—			(1		)	—			(1		)
Free-standing derivatives, net	(5		)	—			—			—			—
Other assets	—			1			—			—			—
Assets held for sale	362			(1		)	2			4			(2		)
Total recurring Level 3 assets	$	1,604		$	20		$	8		$	105		$	(150	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(307	)	$	(8	)	$	—		$	—		$	—
Liabilities held for sale	(246		)	17			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	9		$	—		$	—		$	—

	Sold in LBL disposition ⁽³⁾			Purchases/ Issues ⁽⁴⁾			Sales			Settlements			Balance as of December 31, 2014
Assets
Fixed income securities:
Municipal	$	—		$	—		$	(11	)	$	(3	)	$	106
Corporate	—			20			(109		)	(104		)	792
ABS	—			21			—			(11		)	129
CMBS	4			—			—			—			1
Redeemable preferred stock	—			—			(1		)	—			—
Total fixed income securities	4			41			(121		)	(118		)	1,028
Equity securities	—			39			(6		)	—			37
Free-standing derivatives, net	—			2			—			(4		)	(7		)	⁽²⁾
Other assets	—			—			—			—			1
Assets held for sale	(351		)	—			(8		)	(6		)	—
Total recurring Level 3 assets	$	(347	)	$	82		$	(135	)	$	(128	)	$	1,059
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	—		$	(14	)	$	—		$	6		$	(323	)
Liabilities held for sale	230			(4		)	—			3			—
Total recurring Level 3 liabilities	$	230		$	(18	)	$	—		$	9		$	(323	)

____________________


⁽¹⁾	The effect to net income totals $29 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $11 million in realized capital gains and losses, $12 million in net investment income, $(5) million in interest credited to contractholder funds, $15 million in contract benefits and $(4) million in loss on disposition of operations.


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


⁽³⁾	Includes transfers from held for sale that took place in first quarter 2014 of $4 million for CMBS and $(4) million for Assets held for sale.


⁽⁴⁾	Represents purchases for assets and issues for liabilities.

The following table presents the rollforward of Level 3 assets and liabilities held at fair value on a recurring basis during the year ended December 31, 2013.



($ in millions)				Total gains (losses) included in:
	Balance as of December 31, 2012			Net income ⁽¹⁾			OCI			Transfers into Level 3			Transfers out of Level 3
Assets
Fixed income securities:
Municipal	$	338		$	(12	)	$	19		$	—		$	—
Corporate	1,501			32			(32		)	84			(172		)
ABS	199			(2		)	30			17			(16		)
CMBS	21			(1		)	3			—			—
Redeemable preferred stock	1			—			—			—			—
Total fixed income securities	2,060			17			20			101			(188		)
Equity securities	7			—			—			—			—
Free-standing derivatives, net	(27		)	19			—			—			—
Other assets	1			(1		)	—			—			—
Assets held for sale	—			(2		)	(6		)	13			(13		)
Total recurring Level 3 assets	$	2,041		$	33		$	14		$	114		$	(201	)
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	(553	)	$	89		$	—		$	—		$	—
Liabilities held for sale	—			20			—			—			—
Total recurring Level 3 liabilities	$	(553	)	$	109		$	—		$	—		$	—

	Transfer to held for sale			Purchases/Issues⁽²⁾			Sales			Settlements			Balance as of December 31, 2013
Assets
Fixed income securities:
Municipal	$	(51	)	$	—		$	(173	)	$	(2	)	$	119
Corporate	(244		)	145			(173		)	(133		)	1,008
ABS	(85		)	—			(8		)	(23		)	112
CMBS	(5		)	—			(17		)	—			1
Redeemable preferred stock	—			—			—			—			1
Total fixed income securities	(385		)	145			(371		)	(158		)	1,241
Equity securities	—			—			(1		)	—			6
Free-standing derivatives, net	—			9			—			(6		)	(5		)	(3)
Other assets	—			—			—			—			—
Assets held for sale	385			—			(10		)	(5		)	362
Total recurring Level 3 assets	$	—		$	154		$	(382	)	$	(169	)	$	1,604
Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	265		$	(111	)	$	—		$	3		$	(307	)
Liabilities held for sale	(265		)	(6		)	—			5			(246		)
Total recurring Level 3 liabilities	$	—		$	(117	)	$	—		$	8		$	(553	)

_________________________


⁽¹⁾	The effect to net income totals $142 million and is reported in the Consolidated Statements of Operations and Comprehensive Income as follows: $20 million in realized capital gains and losses, $14 million in net investment income, $40 million in interest credited to contractholder funds, $74 million in contract benefits and $(6) million in loss on disposition of operations.


⁽²⁾	Represents purchases for assets and issues for liabilities.


⁽³⁾	Comprises $9 million of assets and $14 million of liabilities

Schedule of change in unrealized gains and losses included in net income for Level 3 assets and liabilities held

The following table provides the change in unrealized gains and losses included in net income for Level 3 assets and liabilities held as of December 31.



($ in millions)	2015			2014			2013
Assets
Fixed income securities:
Municipal	$	—		$	(1	)	$	(4	)
Corporate	11			11			13
ABS	1			—			(2		)
CMBS	—			1			(2		)
Total fixed income securities	12			11			5
Equity securities	(1		)	—			—
Free-standing derivatives, net	1			5			10
Other assets	—			1			(1		)
Assets held for sale	—			—			(2		)
Total recurring Level 3 assets	$	12		$	17		$	12

Liabilities
Contractholder funds: Derivatives embedded in life and annuity contracts	$	19		$	(8	)	$	89
Liabilities held for sale	—			17			20
Total recurring Level 3 liabilities	$	19		$	9		$	109

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



($ in millions)	December 31, 2015				December 31, 2014
	Carrying value		Fair value		Carrying value		Fair value
Contractholder funds on investment contracts	$	12,387	$	12,836	$	13,708	$	14,364
Notes due to related parties	275		275		275		275
Liability for collateral	550		550		510		510

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

Financial assets



($ in millions)	December 31, 2015				December 31, 2014
	Carrying value		Fair value		Carrying value		Fair value
Mortgage loans	$	3,781	$	3,920	$	3,686	$	3,922
Cost method limited partnerships	530		661		508		686
Bank loans	502		493		431		427
Agent loans	422		408		368		361
Notes due from related party	275		275		275		275

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Financial Instruments and Off-balance sheet Financial Instruments

Summary of volume and fair value positions of derivative instruments and reporting location in the Condensed 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	$	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	Other investments	—		3,730	44			44		—
Financial futures contracts	Other assets	—		997	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	81		n/a	1			1		—
Credit default contracts
Credit default swaps – buying protection	Other investments	51		n/a	2			3		(1		)
Credit default swaps – selling protection	Other investments	80		n/a	1			1		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		257		4,727	50			51		(1		)
Total asset derivatives		$	302	4,727	$	56		$	57	$	(1	)

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	Other liabilities & accrued expenses	—		3,645	(6		)	—		(6		)
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	2		n/a	—			—		—
Credit default swaps – selling protection	Other liabilities & accrued expenses	100		n/a	(8		)	—		(8		)
Subtotal		2,938		3,645	(312		)	1		(313		)
Total liability derivatives		2,957		3,645	(308		)	$	5	$	(313	)

Total derivatives		$	3,259	8,372	$	(252	)

^{_________________________________________}



($ in millions, except number of contracts)		Volume ⁽¹⁾
Asset derivatives	Balance sheet location	Notional amount		Number of contracts	Fair value, net			Gross asset		Gross liability
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other investments	$	85	n/a	$	3		$	3	$	—
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate cap agreements	Other investments	163		n/a	2			2		—
Equity and index contracts
Options	Other investments	—		3,225	83			83		—
Financial futures contracts	Other assets	—		704	1			1		—
Foreign currency contracts
Foreign currency forwards	Other investments	57		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other investments	19		n/a	—			—		—
Credit default swaps – selling protection	Other investments	80		n/a	2			2		—
Other contracts
Other contracts	Other assets	3		n/a	1			1		—
Subtotal		322		3,929	89			89		—
Total asset derivatives		$	407	3,929	$	92		$	92	$	—

Liability derivatives
Derivatives designated as accounting hedging instruments
Foreign currency swap agreements	Other liabilities & accrued expenses	$	50	n/a	$	(1	)	$	—	$	(1	)
Derivatives not designated as accounting hedging instruments
Interest rate contracts
Interest rate swap agreements	Other liabilities & accrued expenses	85		n/a	1			1		—
Interest rate cap agreements	Other liabilities & accrued expenses	11		n/a	—			—		—
Financial futures contract	Other liabilities & accrued expenses	—		200	—			—		—
Equity and index contracts
Options and futures	Other liabilities & accrued expenses	—		3,131	(22		)	—		(22		)
Foreign currency contracts
Foreign currency forwards	Other liabilities & accrued expenses	36		n/a	1			1		—
Embedded derivative financial instruments
Guaranteed accumulation benefits	Contractholder funds	615		n/a	(32		)	—		(32		)
Guaranteed withdrawal benefits	Contractholder funds	425		n/a	(13		)	—		(13		)
Equity-indexed and forward starting options in life and annuity product contracts	Contractholder funds	1,786		n/a	(278		)	—		(278		)
Other embedded derivative financial instruments	Contractholder funds	85		n/a	—			—		—
Credit default contracts
Credit default swaps – buying protection	Other liabilities & accrued expenses	49		n/a	(1		)	—		(1		)
Credit default swaps – selling protection	Other liabilities & accrued expenses	100		n/a	(9		)	—		(9		)
Subtotal		3,192		3,331	(353		)	2		(355		)
Total liability derivatives		3,242		3,331	(354		)	$	2	$	(356	)

Total derivatives		$	3,649	7,260	$	(262	)

^{__________________________________________}

Schedule of gross and net amounts about 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
December 31, 2015
Asset derivatives	$	15		$	(6	)	$	(5	)	$	4		$	(1	)	$	3
Liability derivatives	(9		)	6			(5		)	(8		)	7			(1		)

December 31, 2014
Asset derivatives	$	7		$	(2	)	$	—		$	5		$	(4	)	$	1
Liability derivatives	(11		)	2			—			(9		)	7			(2		)

Summary of impacts on operations and AOCI from foreign currency contracts, cash flow hedges



($ in millions)	2015			2014			2013
Gain recognized in OCI on derivatives during the period	$	10		$	12		$	3
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	10			2			(13		)
Loss reclassified from AOCI into income (net investment income)	(1		)	(1		)	(1		)
Gain (loss) reclassified from AOCI into income (realized capital gains and losses)	3			(2		)	—

Schedule of gains and losses from valuation, settlements, and hedge ineffectiveness, fair value hedges and derivatives not designated as hedges



($ in millions)	Realized capital gains and losses			Contract benefits			Interest credited to contractholder funds			Loss on disposition of operations			Total gain (loss) recognized in net income on derivatives
2015
Equity and index contracts	$	—		$	—		$	(9	)	$	—		$	(9	)
Embedded derivative financial instruments	—			(7		)	31			—			24
Foreign currency contracts	6			—			—			—			6
Credit default contracts	4			—			—			—			4
Total	$	10		$	(7	)	$	22		$	—		$	25

2014
Interest rate contracts	$	(3	)	$	—		$	—		$	(4	)	$	(7	)
Equity and index contracts	(1		)	—			38			—			37
Embedded derivative financial instruments	—			15			(14		)	—			1
Foreign currency contracts	10			—			—			—			10
Credit default contracts	8			—			—			—			8
Other contracts	—			—			(2		)	—			(2		)
Total	$	14		$	15		$	22		$	(4	)	$	47

2013
Interest rate contracts	$	3		$	—		$	—		$	(6	)	$	(3	)
Equity and index contracts	—			—			94			—			94
Embedded derivative financial instruments	(1		)	74			(75		)	—			(2		)
Foreign currency contracts	(2		)	—			—			—			(2		)
Credit default contracts	14			—			—			—			14
Other contracts	—			—			(3		)	—			(3		)
Total	$	14		$	74		$	16		$	(6	)	$	98

Summary of counterparty credit exposure by counterparty credit rating

The following table summarizes the counterparty credit exposure as of December 31 by counterparty credit rating as it relates to the Company’s OTC derivatives.



($ in millions)	2015							2014
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⁾
A+	1	$	82	$	5	$	—	1	$	164	$	2	$	1
A	5	178		6		6		3	88		3		1
A-	1	16		3		—		1	8		—		—
BBB+	2	36		—		—		1	11		—		—
BBB	—	—		—		—		1	52		—		—
Total	9	$	312	$	14	$	6	7	$	323	$	5	$	2

_________________________


⁽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.

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



($ in millions)	2015			2014
Gross liability fair value of contracts containing credit-risk-contingent features	$	9		$	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(1		)	(2		)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7		)	(7		)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$	1		$	2

Schedule of 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
December 31, 2015
First-to-default Basket
Municipal	$	—	$	—	$	100	$	—	$	100	$	(8	)
Index
Corporate debt	1		20		52		7		80		1
Total	$	1	$	20	$	152	$	7	$	180	$	(7	)

December 31, 2014
First-to-default Basket
Municipal	$	—	$	100	$	—	$	—	$	100	$	(9	)
Index
Corporate debt	—		22		52		6		80		2
Total	$	—	$	122	$	52	$	6	$	180	$	(7	)

Contractual amounts of off-balance-sheet financial instruments

The contractual amounts of off-balance sheet financial instruments as of December 31 are as follows:



($ in millions)	2015		2014
Commitments to invest in limited partnership interests	$	1,269	$	1,223
Commitments to extend mortgage loans	—		44
Private placement commitments	21		25
Other loan commitments	46		46

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Tables)

12 Months Ended

Dec. 31, 2015

Reserve for Life-Contingent Contract Benefits and Contractholder Funds

Reserve for life-contingent contract benefits

As of December 31, the reserve for life-contingent contract benefits consists of the following:



($ in millions)	2015		2014
Immediate fixed annuities:
Structured settlement annuities	$	6,673	$	6,682
Other immediate fixed annuities	2,035		2,246
Traditional life insurance	2,347		2,303
Accident and health insurance	234		238
Other	105		97
Total reserve for life-contingent contract benefits	$	11,394	$	11,566

Key assumptions generally used in calculating the reserve for life-contingent contract benefits

The following table highlights the key assumptions generally used in calculating the reserve for life-contingent contract benefits.



Product	Mortality	Interest rate	Estimation method
Structured settlement annuities	U.S. population with projected calendar year improvements; mortality rates adjusted for each impaired life based on reduction in life expectancy	Interest rate assumptions range from 2.7% to 9.0%	Present value of contractually specified future benefits
Other immediate fixed annuities	1983 group annuity mortality table with internal modifications; 1983 individual annuity mortality table; Annuity 2000 mortality table with internal modifications; Annuity 2000 mortality table; 1983 individual annuity mortality table with internal modifications	Interest rate assumptions range from 0% to 11.5%	Present value of expected future benefits based on historical experience
Traditional life insurance	Actual company experience plus loading	Interest rate assumptions range from 2.5% to 11.3%	Net level premium reserve method using the Company’s withdrawal experience rates; includes reserves for unpaid claims
Accident and health insurance	Actual company experience plus loading	Interest rate assumptions range from 3.0% to 6.0%	Unearned premium; additional contract reserves for mortality risk and unpaid claims
Other: Variable annuity guaranteed minimum death benefits ⁽¹⁾	Annuity 2012 mortality table with internal modifications	Interest rate assumptions range from 2.1% to 5.8%	Projected benefit ratio applied to cumulative assessments

______________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with The Prudential Insurance Company of America, a subsidiary of Prudential Financial, Inc. (collectively “Prudential”)

Contractholder funds

As of December 31, contractholder funds consist of the following:



($ in millions)	2015		2014
Interest-sensitive life insurance	$	7,262	$	7,193
Investment contracts:
Fixed annuities	12,934		14,284
Funding agreements backing medium-term notes	85		85
Other investment contracts	261		254
Total contractholder funds	$	20,542	$	21,816

Key contract provisions relating to contractholder funds

The following table highlights the key contract provisions relating to contractholder funds.



Product	Interest rate	Withdrawal/surrender charges
Interest-sensitive life insurance	Interest rates credited range from 0% to 10.5% for equity-indexed life (whose returns are indexed to the S&P 500) and 1.0% to 6.0% for all other products	Either a percentage of account balance or dollar amount grading off generally over 20 years
Fixed annuities	Interest rates credited range from 0% to 9.8% for immediate annuities; (8.0)% to 13.5% for equity-indexed annuities (whose returns are indexed to the S&P 500); and 0.1% to 6.0% for all other products	Either a declining or a level percentage charge generally over ten years or less. Additionally, approximately 19.2% of fixed annuities are subject to market value adjustment for discretionary withdrawals
Funding agreements backing medium-term notes	Interest rate credited is a floating rate, currently 0%	Not applicable
Other investment contracts: Guaranteed minimum income, accumulation and withdrawal benefits on variable ⁽¹⁾ and fixed annuities and secondary guarantees on interest-sensitive life insurance and fixed annuities	Interest rates used in establishing reserves range from 1.7% to 10.3%	Withdrawal and surrender charges are based on the terms of the related interest-sensitive life insurance or fixed annuity contract

______________________


⁽¹⁾	In 2006, the Company disposed of substantially all of its variable annuity business through reinsurance agreements with Prudential.

Contractholder funds activity

Contractholder funds activity for the years ended December 31 is as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	21,816		$	23,604		$	38,634
Classified as held for sale, beginning balance	—			10,945			—
Total, including those classified as held for sale	21,816			34,549			38,634
Deposits	1,052			1,227			2,338
Interest credited	716			892			1,268
Benefits	(1,060		)	(1,178		)	(1,521		)
Surrenders and partial withdrawals	(1,246		)	(2,253		)	(3,279		)
Maturities of and interest payments on institutional products	(1		)	(2		)	(1,799		)
Contract charges	(684		)	(798		)	(1,032		)
Net transfers from separate accounts	7			7			12
Other adjustments	(58		)	34			(72		)
Sold in LBL disposition	—			(10,662		)	—
Classified as held for sale, ending balance	—			—			(10,945		)
Balance, end of year	$	20,542		$	21,816		$	23,604

Variable annuity contracts with guarantees



($ in millions)	December 31,
	2015		2014
In the event of death
Separate account value	$	3,541	$	4,288
Net amount at risk ⁽¹⁾	$	675	$	581
Average attained age of contractholders	69 years		69 years
At annuitization (includes income benefit guarantees)
Separate account value	$	967	$	1,142
Net amount at risk ⁽²⁾	$	281	$	238
Weighted average waiting period until annuitization options available	None		None
For cumulative periodic withdrawals
Separate account value	$	294	$	382
Net amount at risk ⁽³⁾	$	10	$	8
Accumulation at specified dates
Separate account value	$	371	$	480
Net amount at risk ⁽⁴⁾	$	31	$	24
Weighted average waiting period until guarantee date	4 years		4 years

____________


⁽¹⁾	Defined as the estimated current guaranteed minimum death benefit in excess of the current account balance as of the balance sheet date.


⁽²⁾	Defined as the estimated present value of the guaranteed minimum annuity payments in excess of the current account balance.


⁽³⁾	Defined as the estimated current guaranteed minimum withdrawal balance (initial deposit) in excess of the current account balance as of the balance sheet date.


⁽⁴⁾	Defined as the estimated present value of the guaranteed minimum accumulation balance in excess of the current account balance.

Liabilities for guarantees

The following table summarizes the liabilities for guarantees.



($ in millions)	Liability for guarantees related to death benefits and interest-sensitive life products			Liability for guarantees related to income benefits			Liability for guarantees related to accumulation and withdrawal benefits			Total
Balance, December 31, 2014 ⁽¹⁾	$	195		$	95		$	60		$	350
Less reinsurance recoverables	98			91			45			234
Net balance as of December 31, 2014	97			4			15			116
Incurred guarantee benefits	20			(1		)	8			27
Paid guarantee benefits	—			—			—			—
Net change	20			(1		)	8			27
Net balance as of December 31, 2015	117			3			23			143
Plus reinsurance recoverables	106			64			52			222
Balance, December 31, 2015 ⁽²⁾	$	223		$	67		$	75		$	365

Balance, December 31, 2013 ⁽³⁾	$	377		$	113		$	65		$	555
Less reinsurance recoverables	100			99			56			255
Net balance as of December 31, 2013	277			14			9			300
Incurred guarantee benefits	34			—			9			43
Paid guarantee benefits	—			—			—			—
Sold in LBL disposition	(214		)	(10		)	(3		)	(227		)
Net change	(180		)	(10		)	6			(184		)
Net balance as of December 31, 2014	97			4			15			116
Plus reinsurance recoverables	98			91			45			234
Balance, December 31, 2014 ⁽¹⁾	$	195		$	95		$	60		$	350

____________


⁽¹⁾	Included in the total liability balance as of December 31, 2014 are reserves for variable annuity death benefits of $96 million, variable annuity income benefits of $92 million, variable annuity accumulation benefits of $32 million, variable annuity withdrawal benefits of $13 million and other guarantees of $117 million.


⁽²⁾	Included in the total liability balance as of December 31, 2015 are reserves for variable annuity death benefits of $105 million, variable annuity income benefits of $64 million, variable annuity accumulation benefits of $38 million, variable annuity withdrawal benefits of $14 million and other guarantees of $144 million.


⁽³⁾	Included in the total liability balance as of December 31, 2013 are reserves for variable annuity death benefits of $98 million, variable annuity income benefits of $99 million, variable annuity accumulation benefits of $43 million, variable annuity withdrawal benefits of $13 million and other guarantees of $302 million.

Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Reinsurance Disclosures [Abstract]

Summary of retention limits by period of policy issuance

The following table summarizes those retention limits by period of policy issuance.



Period		Retention limits
April 2015 through current		Single life: $2 million per life Joint life: no longer offered
April 2011 through March 2015		Single life: $5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria Joint life: $8 million per life, and $10 million for contracts that meet specific criteria
July 2007 through March 2011		$5 million per life, $3 million age 70 and over, and $10 million for contracts that meet specific criteria
September 1998 through June 2007		$2 million per life, in 2006 the limit was increased to $5 million for instances when specific criteria were met
August 1998 and prior		Up to $1 million per life

Effects of reinsurance on premiums and contract charges

The effects of reinsurance on premiums and contract charges for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	728		$	1,084		$	2,093
Assumed
Affiliate	131			130			124
Non-affiliate	835			614			68
Ceded
Affiliate	(41		)	—			—
Non-affiliate	(315		)	(392		)	(618		)
Premiums and contract charges, net of reinsurance	$	1,338		$	1,436		$	1,667

Effects of reinsurance on contract benefits

The effects of reinsurance on contract benefits for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	1,023		$	1,295		$	1,805
Assumed
Affiliate	79			88			82
Non-affiliate	541			398			50
Ceded
Affiliate	(32		)	—			—
Non-affiliate	(205		)	(329		)	(331		)
Contract benefits, net of reinsurance	$	1,406		$	1,452		$	1,606

Effects of reinsurance on interest credited to contractholder funds

The effects of reinsurance on interest credited to contractholder funds for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Direct	$	636		$	827		$	1,240
Assumed
Affiliate	10			9			9
Non-affiliate	111			82			29
Ceded
Affiliate	(16		)	—			—
Non-affiliate	(24		)	(27		)	(27		)
Interest credited to contractholder funds, net of reinsurance	$	717		$	891		$	1,251

Summary of reinsurance recoverables on paid and unpaid benefits

Reinsurance recoverables on paid and unpaid benefits as of December 31 are summarized in the following table.



($ in millions)	2015		2014
Annuities	$	1,443	$	1,594
Life insurance	1,348		910
Other	80		82
Total	$	2,871	$	2,586

Deferred Policy Acquisition and Sales Inducement Costs (Tables)

12 Months Ended

Dec. 31, 2015

Deferred Policy Acquisition and Sales Inducement Costs

Schedule of deferred policy acquisition costs

Deferred policy acquisition costs for the years ended December 31 are as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	1,271		$	1,331		$	1,834
Classified as held for sale, beginning balance	—			743			—
Total, including those classified as held for sale	1,271			2,074			1,834
Acquisition costs deferred	124			163			254
Amortization charged to income	(151		)	(162		)	(240		)
Effect of unrealized gains and losses	99			(97		)	226
Reinsurance ceded⁽¹⁾	(29		)	—			—
Sold in LBL disposition	—			(707		)	—
Classified as held for sale, ending balance	—			—			(743		)
Balance, end of year	$	1,314		$	1,271		$	1,331

______________________


⁽¹⁾	In 2015, DAC decreased as a result of a reinsurance agreement with AAC.

Schedule of DSI activity for Allstate Financial

DSI activity, which primarily relates to fixed annuities and interest-sensitive life contracts, for the years ended December 31 was as follows:



($ in millions)	2015			2014			2013
Balance, beginning of year	$	44		$	42		$	41
Classified as held for sale, beginning balance	—			28			—
Total, including those classified as held for sale	44			70			41
Sales inducements deferred	3			4			24
Amortization charged to income	(4		)	(4		)	(7		)
Effect of unrealized gains and losses	2			(3		)	12
Sold in LBL disposition	—			(23		)	—
Classified as held for sale, ending balance	—			—			(28		)
Balance, end of year	$	45		$	44		$	42

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Components of the deferred income tax assets and liabilities

The components of the deferred income tax assets and liabilities as of December 31 are as follows:



($ in millions)	2015			2014
Deferred assets
Difference in tax bases of investments	$	46		$	31
Deferred reinsurance gain	17			20
Other assets	9			15
Total deferred assets	72			66
Deferred liabilities
DAC	(387		)	(396		)
Life and annuity reserves	(309		)	(255		)
Unrealized net capital gains	(287		)	(747		)
Other liabilities	(75		)	(75		)
Total deferred liabilities	(1,058		)	(1,473		)
Net deferred liability	$	(986	)	$	(1,407	)

Components of income tax expense

The components of income tax expense for the years ended December 31 are as follows:



($ in millions)	2015		2014		2013
Current	$	251	$	101	$	71
Deferred	50		132		(52		)
Total income tax expense	$	301	$	233	$	19

Reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations

A reconciliation of the statutory federal income tax rate to the effective income tax rate on income from operations for the years ended December 31 is as follows:



	2015		2014		2013
Statutory federal income tax rate - expense (benefit)	35.0	%	35.0	%	(35.0	)%
Tax credits	(1.7	)	(1.9	)	(181.8	)
Dividends received deduction	(0.6	)	(0.9	)	(46.1	)
Adjustments to prior year tax liabilities	(0.3	)	(0.2	)	(14.1	)
Sale of subsidiary	—		(1.8	)	351.3
State income taxes	0.4		0.1		15.3
Non-deductible expenses	0.2		0.2		6.8
Change in accounting for investments in qualified affordable housing projects	2.0		—		—
Other	(0.1	)	0.2		0.1
Effective income tax rate - expense	34.9	%	30.7	%	96.5	%

Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2015

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of components of other comprehensive (loss) income on a pre-tax and after-tax basis

The components of other comprehensive (loss) income on a pre-tax and after-tax basis for the years ended December 31 are as follows:



($ in millions)	2015									2014									2013
	Pre- tax			Tax			After- tax			Pre- tax			Tax			After- tax			Pre- tax			Tax			After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$	(1,048	)	$	366		$	(682	)	$	805		$	(282	)	$	523		$	(1,047	)	$	367		$	(680	)
Less: reclassification adjustment of realized capital gains and losses	265			(93		)	172			104			(36		)	68			42			(15		)	27
Unrealized net capital gains and losses	(1,313		)	459			(854		)	701			(246		)	455			(1,089		)	382			(707		)
Unrealized foreign currency translation adjustments	(6		)	2			(4		)	(6		)	2			(4		)	3			(1		)	2
Other comprehensive (loss) income	$	(1,319	)	$	461		$	(858	)	$	695		$	(244	)	$	451		$	(1,086	)	$	381		$	(705	)

Quarterly Results (unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Schedule of quarterly results



($ in millions)	First Quarter				Second Quarter				Third Quarter				Fourth Quarter
	2015		2014		2015		2014		2015		2014		2015		2014
Revenues	$	927	$	1,049	$	862	$	851	$	992	$	823	$	641	$	937
Net income	153		127		150		132		239		84		19		183

General (Details) $ in Millions	12 Months Ended
General (Details) $ in Millions	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Premiums and contract charges by product
Premiums	$ 600	$ 589	$ 613
Contract charges	738	847	1,054
Total premiums and contract charges	$ 1,338	1,436	1,667
Number of states in which entity is authorized to operate \| item	50
Minimum percentage of premiums from one jurisdiction to be considered as significant	5.00%
Traditional life insurance
Premiums and contract charges by product
Premiums	$ 515	492	471
Immediate annuities with life contingencies
Premiums and contract charges by product
Premiums	0	4	37
Accident and health insurance
Premiums and contract charges by product
Premiums	85	93	105
Interest-sensitive life insurance
Premiums and contract charges by product
Contract charges	724	828	1,036
Fixed annuities
Premiums and contract charges by product
Contract charges	$ 14	$ 19	$ 18

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments
Present Value of Future Insurance Profits, Amortization Expense	$ 377	$ 1,000	$ 2,000
Private equity/debt funds, real estate funds and tax credit funds
Investments
Period over which recognition of income on funds is delayed	3 months
Allstate Assurance Company [Member]
Investments
Present Value of Future Insurance Profits, Amortization Expense		$ 3,000

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Securities loaned
Cash collateral received as percentage of fair value of securities loaned		102.00%
Deferred policy acquisition and sales inducement costs
Present value of future profits		$ 4,000	$ 7,000
Present Value of Future Insurance Profits, Amortization Expense		$ 377	$ 1,000	$ 2,000
Income Tax Expense, Effect of Adoption, Quantification	$ 17,000
Minimum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		15 years
Maximum
Securities loaned
Length of securities lending transaction period		30 days
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		30 years
Interest-sensitive life insurance \| Minimum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		10 years
Interest-sensitive life insurance \| Maximum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		20 years
Fixed annuities \| Minimum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		5 years
Fixed annuities \| Maximum
Deferred policy acquisition and sales inducement costs
Period for amortization of DAC and DSI for interest-sensitive life, fixed annuities and other investment contracts		10 years

Disposition (Details) - USD ($) $ in Millions				12 Months Ended
Disposition (Details) - USD ($) $ in Millions	Nov. 01, 2015	Jan. 01, 2015	Apr. 01, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposition of operations	$ 10	$ 11		$ 20	$ 345	$ 0
(Gain) loss on disposition of operations				$ (3)	68	687
Lincoln Benefit Life Company
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposition of operations			$ 797
Proceeds from divestiture of businesses, net of cash divested			$ 596
(Gain) loss on disposition of operations					79	698
Disposal group not discontinued operation gain (loss) on disposal after tax					$ 38	$ 521

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Non-cash modifications of certain mortgage loans, fixed income securities, limited partnerships and other investments, as well as mergers completed with equity securities	$ 96	$ 102	$ 306
Payments of Dividends	103
Liabilities for collateral received reported in other liabilities and accrued expenses	539	508	322
Obligations to return cash collateral for over-the-counter ("OTC") derivatives reported in other liabilities and accrued expenses or other investments	11	2	6
Net change in proceeds managed
Net change in short-term investments	(41)	(182)	235
Operating cash flow (used) provided	(41)	(182)	235
Net change in cash	1	0	(2)
Net change in proceeds managed	(40)	(182)	233
Net change in liabilities
Liabilities for collateral, beginning of year	(510)	(328)	(561)
Liabilities for collateral, end of year	(550)	(510)	(328)
Operating cash flow provided (used)	40	$ 182	$ (233)
Limited Partnership [Member]
Debt Instrument [Line Items]
Liabilities Assumed	44
Debt and Equity Securities [Member]
Debt Instrument [Line Items]
Payments of Dividends	$ 86

Related Party Transactions (Details) - USD ($) $ in Thousands				12 Months Ended
	Nov. 01, 2015	Apr. 01, 2015	Jan. 01, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions
Allocation of operating expenses				$ 271,000	$ 339,000	$ 456,000
Premium revenue				600,000	589,000	613,000
Reserves recorded for annuities				11,394,000	11,566,000
Reinsurance recoverable				2,871,000	2,586,000
Disposition of operations	$ 10,000		$ 11,000	20,000	345,000	0
Gain (Loss) on Disposition of Stock in Subsidiary	$ 469			2,000
Structured settlement annuities with life contingencies
Related Party Transactions
Reserves recorded for annuities				6,673,000	6,682,000
Interest-sensitive life insurance
Related Party Transactions
Reinsurance recoverable		$ 476,000
Payments to Acquire Investments		494,000
Allstate Financial Services, LLC
Related Party Transactions
Commission and other distribution expenses				9,000	4,000	13,000
AIC \| Structured settlement annuities
Related Party Transactions
Annuities issued						7,000
Reserves recorded for annuities				4,650,000	4,680,000
AIC \| Structured settlement annuities with life contingencies
Related Party Transactions
Premium revenue						4,000
Retained income
Related Party Transactions
Loss on the transaction		$ 12,000		12,000	0	0
Gain (Loss) on Disposition of Stock in Subsidiary				$ 2,000	$ 0	$ 0

Related Party Transactions (Details 2) - USD ($) $ in Thousands				12 Months Ended
	Dec. 18, 2009	Jun. 30, 2008	Jun. 30, 2006	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 01, 2015	Aug. 31, 2011	Apr. 30, 2011	Mar. 31, 2011	Nov. 17, 2008	Aug. 01, 2005
Related Party Transactions
Notes due to related parties				$ 275,000	$ 275,000
Net investment income on recourse notes				1,876,000	2,151,000	$ 2,593,000
Kennett
Related Party Transactions
Net investment income on recourse notes				15,000	15,000	15,000
Interest expense				16,000	16,000	16,000
Kennett \| 4.86% Recourse Note due July 1, 2035
Related Party Transactions
Notes payable interest rate (as a percent)								3.04%					4.86%
Kennett \| 5.98% Recourse Note due June 1, 2036
Related Party Transactions
Notes payable interest rate (as a percent)			5.98%
Recourse notes receivable interest rate reset period			10 years
Basis spread over reference rate for reset of notes receivable interest rate (as a percent)			0.94%
Kennett \| 5.73% Recourse Note due June 1, 2038
Related Party Transactions
Notes payable interest rate (as a percent)		5.73%
Recourse notes receivable interest rate reset period		10 years
Basis spread over reference rate for reset of notes receivable interest rate (as a percent)		1.89%
Kennett \| 5.19% Recourse Note due Dec 1, 2029
Related Party Transactions
Notes payable interest rate (as a percent)	5.19%
Recourse notes receivable interest rate reset period	10 years
Basis spread over reference rate for reset of notes receivable interest rate (as a percent)	1.70%
Kennett \| 6.74% Surplus Note, due 2029
Related Party Transactions
Notes due to related parties				$ 25,000	$ 25,000
Notes payable interest rate (as a percent)				6.74%	6.74%
Kennett \| 5.06% Surplus Note, due 2035
Related Party Transactions
Notes due to related parties				$ 100,000	$ 100,000
Notes payable interest rate (as a percent)				3.24%	3.24%
Kennett \| 6.18% Surplus Note, due 2036
Related Party Transactions
Notes due to related parties				$ 100,000	$ 100,000
Notes payable interest rate (as a percent)				6.18%	6.18%
Kennett \| 5.93% Surplus Note, due 2038
Related Party Transactions
Notes due to related parties				$ 50,000	$ 50,000
Notes payable interest rate (as a percent)				5.93%	5.93%
ALIC Re \| Kennett \| 6.74% Surplus Note, due 2029
Related Party Transactions
Notes due to related parties	$ 25,000
Notes payable interest rate (as a percent)	6.74%
Notes payable interest rate reset period	10 years
Basis spread over reference rate for reset of notes payable interest rate (as a percent)	3.25%
ALIC Re \| Kennett \| 5.06% Surplus Note, due 2035
Related Party Transactions
Notes due to related parties													$ 100,000
Notes payable interest rate (as a percent)								3.24%					5.06%
ALIC Re \| Kennett \| 6.18% Surplus Note, due 2036
Related Party Transactions
Notes due to related parties			$ 100,000
Notes payable interest rate (as a percent)			6.18%
Notes payable interest rate reset period			10 years
Basis spread over reference rate for reset of notes payable interest rate (as a percent)			1.14%
ALIC Re \| Kennett \| 5.93% Surplus Note, due 2038
Related Party Transactions
Notes due to related parties		$ 50,000
Notes payable interest rate (as a percent)		5.93%
Notes payable interest rate reset period		10 years
Basis spread over reference rate for reset of notes payable interest rate (as a percent)		2.09%
AIC \| 6.35% Note, due 2018
Related Party Transactions
Notes payable interest rate (as a percent)									6.35%
AIC \| 5.75% Note Two, due 2018
Related Party Transactions
Notes payable interest rate (as a percent)										5.75%
AIC \| 5.75% Note One, due 2018
Related Party Transactions
Notes payable interest rate (as a percent)											5.75%
Interest expense					$ 84	1,000
AIC \| 7.00% Surplus Note, due 2028
Related Party Transactions
Notes due to related parties												$ 400,000
Notes payable interest rate (as a percent)												7.00%
Interest expense						7,000
Repayment of principal amount						$ 200,000	$ 200,000
RBI \| Mortgage loans
Related Party Transactions
Fair value										$ 4,000
RBI \| Real estate
Related Party Transactions
Fair value											$ 10,000
RBI \| Fixed income securities
Related Party Transactions
Fair value									$ 7,000

Related Party Transactions (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions
Reinsurance recoverable from non-affiliates	$ 2,871	$ 2,586
Payments of Dividends	103
Liquidity agreement
Related Party Transactions
Amount of loan outstanding under the Liquidity Agreement	0	0
Liquidity agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement	$ 1,000
Maturity period of advances	364 days
Liquidity agreement \| Minimum
Related Party Transactions
Notice period for payables on demand	10 days
Reference rate for advances	30-day commercial paper
Intercompany loan agreement
Related Party Transactions
Amount of loan outstanding under the Liquidity Agreement	$ 0	0
Intercompany loan agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement	$ 1,000
Capital support agreement
Related Party Transactions
Commitment fee as a percentage of the amount of the capital and surplus maximum that remains available at the beginning of the period	1.00%
Capital support agreement \| Maximum
Related Party Transactions
Amount available for borrowings under the agreement	$ 1,000
Capital support agreement \| Minimum
Related Party Transactions
Percentage of risk-based capital ratio	150.00%
Minimum risk-based capital ratio at which agreement will be terminated (as a percent)	300.00%
Voting stock to be held as per agreement (as a percent)	50.00%
Credit Agreement
Related Party Transactions
Amount of loan outstanding under the Liquidity Agreement	$ 0	0
AIC
Related Party Transactions
Return of capital		$ 700	$ 500

Investments (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	$ 23,770	$ 25,822
Gross unrealized gain	1,321	2,486
Gross unrealized loss	(462)	(191)
Fair Value	24,629	28,117
U.S. government and agencies
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	920	668
Gross unrealized gain	57	102
Gross unrealized loss	0	0
Fair Value	977	770
Municipal
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	2,162	3,156
Gross unrealized gain	292	520
Gross unrealized loss	(12)	(14)
Fair Value	2,442	3,662
Corporate
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	18,069	19,465
Gross unrealized gain	849	1,670
Gross unrealized loss	(414)	(150)
Fair Value	18,504	20,985
Foreign government
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	348	654
Gross unrealized gain	36	81
Gross unrealized loss	0	0
Fair Value	384	735
ABS
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	1,443	773
Gross unrealized gain	5	13
Gross unrealized loss	(28)	(21)
Fair Value	1,420	765
RMBS
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	406	554
Gross unrealized gain	49	55
Gross unrealized loss	(4)	(4)
Fair Value	451	605
CMBS
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	409	538
Gross unrealized gain	31	43
Gross unrealized loss	(4)	(2)
Fair Value	436	579
Redeemable preferred stock
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
Amortized cost	13	14
Gross unrealized gain	2	2
Gross unrealized loss	0	0
Fair Value	$ 15	$ 16

Investments (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Amortized cost
Due in one year or less	$ 996
Due after one year through five years	7,362
Due after five years through ten years	8,374
Due after ten years	4,780
Subtotal	21,512
ABS, RMBS and CMBS	2,258
Amortized cost	23,770	$ 25,822
Fair value
Due in one year or less	1,004
Due after one year through five years	7,640
Due after five years through ten years	8,475
Due after ten years	5,203
Subtotal	22,322
ABS, RMBS and CMBS	2,307
Total	$ 24,629	$ 28,117

Investments (Details 3) - USD ($) $ in Millions	12 Months Ended
Investments (Details 3) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net investment income
Investment income, before expense	$ 1,876	$ 2,151	$ 2,593
Investment expense	(57)	(70)	(108)
Net investment income	1,819	2,081	2,485
Fixed income securities
Net investment income
Investment income, before expense	1,246	1,522	1,947
Mortgage loans
Net investment income
Investment income, before expense	203	242	345
Equity securities
Net investment income
Investment income, before expense	28	20	12
Limited partnership interests
Net investment income
Investment income, before expense	287	267	175
Short-term investments
Net investment income
Investment income, before expense	3	2	2
Policy loans
Net investment income
Investment income, before expense	34	39	49
Other
Net investment income
Investment income, before expense	$ 75	$ 59	$ 63

Investments (Details 4) - USD ($) $ in Millions	12 Months Ended
Investments (Details 4) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Realized capital gains and losses by asset type
Realized capital gains and losses	$ 265	$ 143	$ 76
Fixed income securities
Realized capital gains and losses by asset type
Realized capital gains and losses	309	(4)	3
Mortgage loans
Realized capital gains and losses by asset type
Realized capital gains and losses	6	2	20
Equity securities
Realized capital gains and losses by asset type
Realized capital gains and losses	(23)	134	45
Limited partnership interests
Realized capital gains and losses by asset type
Realized capital gains and losses	(32)	(4)	(6)
Derivatives
Realized capital gains and losses by asset type
Realized capital gains and losses	13	12	14
Other
Realized capital gains and losses by asset type
Realized capital gains and losses	$ (8)	$ 3	$ 0

Investments (Details 5) - USD ($) $ in Millions	12 Months Ended
Investments (Details 5) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments [Abstract]
Impairment write-downs	$ (63)	$ (11)	$ (33)
Change in intent write-downs	(65)	(44)	(19)
Net OTTI losses recognized in earnings	(128)	(55)	(52)
Sales and other	383	184	114
Valuation and settlements of derivative instruments	10	14	14
Total realized capital gains and losses	265	143	76
Fixed income securities
Investments [Abstract]
Net OTTI losses recognized in earnings	(26)	(10)	(45)
Total realized capital gains and losses	309	(4)	3
Schedule of Available for Sale Securities
Gross gains on sales of fixed income securities	542	223	145
Gross losses on sales of fixed income securities	$ 147	$ 51	$ 46

Investments (Details 6) - USD ($) $ in Millions	12 Months Ended
Investments (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	$ (144)	$ (54)	$ (49)
OTTI losses reclassified to (from) other comprehensive income	16	(1)	(3)
Net OTTI losses recognized in earnings	(128)	(55)	(52)
Fixed income securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(42)	(9)	(42)
OTTI losses reclassified to (from) other comprehensive income	16	(1)	(3)
Net OTTI losses recognized in earnings	(26)	(10)	(45)
Municipal
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	(1)	(8)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	0	(1)	(8)
Corporate
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(25)	(4)	0
OTTI losses reclassified to (from) other comprehensive income	6	0	0
Net OTTI losses recognized in earnings	(19)	(4)	0
ABS
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(16)	(5)	0
OTTI losses reclassified to (from) other comprehensive income	10	0	(2)
Net OTTI losses recognized in earnings	(6)	(5)	(2)
RMBS
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	0	2	(2)
OTTI losses reclassified to (from) other comprehensive income	0	(1)	2
Net OTTI losses recognized in earnings	0	1	0
CMBS
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(1)	(1)	(32)
OTTI losses reclassified to (from) other comprehensive income	0	0	(3)
Net OTTI losses recognized in earnings	(1)	(1)	(35)
Mortgage loans
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	4	5	11
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	4	5	11
Equity securities
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(83)	(32)	(6)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	(83)	(32)	(6)
Limited partnership interests
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(17)	(18)	(9)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	(17)	(18)	(9)
Other
Other-than-temporary impairment losses by asset type
Total other-than-temporary impairment (“OTTI”) losses	(6)	0	(3)
OTTI losses reclassified to (from) other comprehensive income	0	0	0
Net OTTI losses recognized in earnings	$ (6)	$ 0	$ (3)

Investments (Details 7) - USD ($) $ in Millions	12 Months Ended
Investments (Details 7) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments [Abstract]
Net unrealized gains related to changes in valuation of fixed income securities subsequent to impairment measurement date	$ 138	$ 138
Other-than-temporary 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	(74)	(66)
Credit Losses on Fixed Income Securities
Beginning balance	(209)	(299)	$ (345)
Additional credit loss for securities previously other-than-temporarily impaired	(8)	(6)	(13)
Additional credit loss for securities not previously other-than-temporarily impaired	(18)	(9)	(19)
Reduction in credit loss for securities disposed or collected	33	44	75
Reduction in credit loss for securities the Company has made the decision to sell or more likely than not will be required to sell	0	0	2
Change in credit loss due to accretion of increase in cash flows	2	2	1
Ending balance	(200)	(209)	(299)
Municipal
Other-than-temporary 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	(5)	(5)
Corporate
Other-than-temporary 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	(2)	0
ABS
Other-than-temporary 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	(12)	(1)
RMBS
Other-than-temporary 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	(49)	(55)
CMBS
Other-than-temporary 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	(6)	(5)
Lincoln Benefit Life Company
Credit Losses on Fixed Income Securities
Reduction in credit loss for securities disposed or collected	$ 0	$ 59	$ 0

Investments (Details 8) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Fair value
Fixed income securities	$ 24,629	$ 28,117
Equity securities	1,542	970
Short-term investments	816	857
Derivative instruments	10	2
Gross unrealized Gains
Fixed income securities	1,321	2,486
Equity securities	76	57
Short-term investments	0	0
Derivative instruments	10	3
Gross unrealized Losses
Fixed income securities	(462)	(191)
Equity securities	(60)	(14)
Short-term investments	0	0
Derivative instruments	0	(1)
Unrealized net gains (losses)
Fixed income securities	859	2,295
Equity securities	16	43
Short-term investments	0	0
Derivative instruments	10	2
EMA limited partnerships	(2)	(2)
Investments classified as held for sale		0
Unrealized net capital gains and losses, pre-tax	883	2,338
Amounts recognized for:
Insurance reserves	0	(28)
DAC and DSI	(62)	(176)
Amounts recognized	(62)	(204)
Deferred income taxes	(293)	(752)
Total unrealized net capital gains and losses	528	1,382
Fair value of derivative securities classified as assets, with unrealized net gains (losses) in AOCI	6	3
Fair value of derivative securities classified as liabilities, with unrealized net gains (losses) in AOCI	$ (4)	$ (1)

Investments (Details 9) - USD ($) $ in Millions	12 Months Ended
Investments (Details 9) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ (1,455)	$ 749	$ (2,112)
Amounts recognized for:
Insurance reserves	28	(28)	771
DAC and DSI	114	(20)	252
Amounts recognized	142	(48)	1,023
Deferred income taxes	459	(246)	382
(Decrease) increase in unrealized net capital gains and losses, after-tax	(854)	455	(707)
EMA limited partnerships
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	0	0	(3)
Fixed income securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(1,436)	966	(2,353)
Equity securities
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	(27)	(42)	50
Derivative instruments
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	8	15	4
Investments classified as held for sale
Change in Unrealized Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
Change in unrealized net capital gains and losses	$ 0	$ (190)	$ 190

Investments (Details 10) $ in Millions	Dec. 31, 2015 USD ($) security	Dec. 31, 2014 USD ($) security
Fixed income and equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	1,385	639
Fair value, continuous unrealized loss position for less than 12 months	$ 7,310	$ 2,402
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (346)	$ (85)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	172	174
Fair value, continuous unrealized loss position for 12 months or more	$ 858	$ 1,265
Unrealized losses, continuous unrealized loss position for 12 months or more	(176)	(120)
Total unrealized losses
Total unrealized losses	$ (522)	$ (205)
Fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	1,106	345
Fair value, continuous unrealized loss position for less than 12 months	$ 6,767	$ 2,075
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (297)	$ (72)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	140	173
Fair value, continuous unrealized loss position for 12 months or more	$ 802	$ 1,259
Unrealized losses, continuous unrealized loss position for 12 months or more	(165)	(119)
Total unrealized losses
Gross unrealized losses	$ (462)	$ (191)
U.S. government and agencies
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	6	1
Fair value, continuous unrealized loss position for less than 12 months	$ 91	$ 1
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 \| security	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
Municipal
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	15	17
Fair value, continuous unrealized loss position for less than 12 months	$ 125	$ 90
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (3)	$ (1)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	5	10
Fair value, continuous unrealized loss position for 12 months or more	$ 25	$ 47
Unrealized losses, continuous unrealized loss position for 12 months or more	(9)	(13)
Total unrealized losses
Total unrealized losses	$ (12)	$ (14)
Corporate
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	953	281
Fair value, continuous unrealized loss position for less than 12 months	$ 5,315	$ 1,780
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (281)	$ (69)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	78	91
Fair value, continuous unrealized loss position for 12 months or more	$ 568	$ 875
Unrealized losses, continuous unrealized loss position for 12 months or more	(133)	(81)
Total unrealized losses
Total unrealized losses	$ (414)	$ (150)
Foreign government
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	1	0
Fair value, continuous unrealized loss position for less than 12 months	$ 2	$ 0
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 \| security	0	1
Fair value, continuous unrealized loss position for 12 months or more	$ 0	$ 15
Unrealized losses, continuous unrealized loss position for 12 months or more	0	0
Total unrealized losses
Total unrealized losses	$ 0	$ 0
ABS
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	81	19
Fair value, continuous unrealized loss position for less than 12 months	$ 1,152	$ 168
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (11)	$ (2)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	16	23
Fair value, continuous unrealized loss position for 12 months or more	$ 154	$ 217
Unrealized losses, continuous unrealized loss position for 12 months or more	(17)	(19)
Total unrealized losses
Total unrealized losses	$ (28)	$ (21)
RMBS
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	38	19
Fair value, continuous unrealized loss position for less than 12 months	$ 7	$ 3
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 \| security	40	45
Fair value, continuous unrealized loss position for 12 months or more	$ 53	$ 73
Unrealized losses, continuous unrealized loss position for 12 months or more	(4)	(4)
Total unrealized losses
Total unrealized losses	$ (4)	$ (4)
CMBS
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	12	8
Fair value, continuous unrealized loss position for less than 12 months	$ 75	$ 33
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (2)	$ 0
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	1	3
Fair value, continuous unrealized loss position for 12 months or more	$ 2	$ 32
Unrealized losses, continuous unrealized loss position for 12 months or more	(2)	(2)
Total unrealized losses
Total unrealized losses	$ (4)	$ (2)
Investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	780	167
Fair value, continuous unrealized loss position for less than 12 months	$ 5,429	$ 1,275
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (175)	$ (28)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	82	127
Fair value, continuous unrealized loss position for 12 months or more	$ 503	$ 989
Unrealized losses, continuous unrealized loss position for 12 months or more	(90)	(79)
Total unrealized losses
Total unrealized losses	$ (265)	$ (107)
Below investment grade fixed income securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	326	178
Fair value, continuous unrealized loss position for less than 12 months	$ 1,338	$ 800
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (122)	$ (44)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	58	46
Fair value, continuous unrealized loss position for 12 months or more	$ 299	$ 270
Unrealized losses, continuous unrealized loss position for 12 months or more	(75)	(40)
Total unrealized losses
Total unrealized losses	$ (197)	$ (84)
Equity securities
Less than 12 months
Number of issues, continuous unrealized loss position for less than 12 months \| security	279	294
Fair value, continuous unrealized loss position for less than 12 months	$ 543	$ 327
Unrealized losses, continuous unrealized loss position for less than 12 months	$ (49)	$ (13)
12 months or more
Number of issues, continuous unrealized loss position for 12 months or more \| security	32	1
Fair value, continuous unrealized loss position for 12 months or more	$ 56	$ 6
Unrealized losses, continuous unrealized loss position for 12 months or more	(11)	(1)
Total unrealized losses
Gross unrealized losses on equity securities	$ (60)	$ (14)

Investments (Details 11) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of amortized cost or cost	$ 302
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of amortized cost or cost	220
Limited partnerships
Limited partnership interests	2,295	$ 2,024
Equity method limited partnerships
Limited partnerships
Limited partnership interests	1,770	1,520
Fixed income and equity securities
Other details of unrealized loss
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	522
Investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of amortized cost or cost	163
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of amortized cost or cost	102
Below investment grade fixed income securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of amortized cost or cost	98
Available for sale Securities, Unrealized Losses Having Loss of Less than Twenty Percent, Less than 12 Months	70
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of amortized cost or cost	99
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	12
Equity securities
Other details of unrealized loss
Unrealized losses related to securities with unrealized loss position less than 20% of amortized cost or cost	41
Unrealized losses related to securities with unrealized loss position greater than or equal to 20% of amortized cost or cost	19
Carrying value
Limited partnerships
Cost method limited partnerships	530	508
Carrying value \| Cost method limited partnership interests
Limited partnerships
Cost method limited partnerships	$ 530	$ 508

Investments (Details 12) $ in Millions	12 Months Ended
Investments (Details 12) $ in Millions	Dec. 31, 2015 USD ($) item loan	Dec. 31, 2014 USD ($)
Investments [Abstract]
Threshold percentage of mortgage loans to total carrying value	5.00%
Mortgage Loans on Real Estate
Mortgage loans	$ 3,781	$ 3,686
Percentage of mortgage portfolio carrying value	100.00%	100.00%
Apartment complex
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	24.50%	20.00%
Office buildings
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	23.20%	25.60%
Retail
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	22.40%	24.10%
Warehouse
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	18.10%	18.10%
Other
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	11.80%	12.20%
California
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	21.60%	24.80%
Texas
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	9.50%	7.70%
New Jersey
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	9.10%	8.30%
Illinois
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	8.00%	9.20%
Florida
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	5.90%	4.70%
New York
Mortgage Loans on Real Estate
Percentage of mortgage portfolio carrying value	5.00%	6.00%
Mortgage loans, not in foreclosure
Mortgage Loans on Real Estate
Number of mortgage loans \| item	286
Mortgage loans	$ 3,781
Percentage of mortgage portfolio carrying value	100.00%
Mortgage loans, not in foreclosure \| 2016
Mortgage Loans on Real Estate
Number of mortgage loans \| loan	23
Mortgage loans	$ 173
Percentage of mortgage portfolio carrying value	4.60%
Mortgage loans, not in foreclosure \| 2017
Mortgage Loans on Real Estate
Number of mortgage loans \| loan	32
Mortgage loans	$ 356
Percentage of mortgage portfolio carrying value	9.40%
Mortgage loans, not in foreclosure \| 2018
Mortgage Loans on Real Estate
Number of mortgage loans \| loan	27
Mortgage loans	$ 288
Percentage of mortgage portfolio carrying value	7.60%
Mortgage loans, not in foreclosure \| 2019
Mortgage Loans on Real Estate
Number of mortgage loans \| loan	8
Mortgage loans	$ 206
Percentage of mortgage portfolio carrying value	5.40%
Mortgage loans, not in foreclosure \| Thereafter
Mortgage Loans on Real Estate
Number of mortgage loans \| loan	196
Mortgage loans	$ 2,758
Percentage of mortgage portfolio carrying value	73.00%

Investments (Details 13) - USD ($) $ in Millions	12 Months Ended
Investments (Details 13) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015	Dec. 31, 2014
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Total mortgage loans				$ 3,781	$ 3,686
Net carrying value of impaired mortgage loans
Impaired mortgage loans with a valuation allowance				6	16
Impaired mortgage loans without a valuation allowance				0	0
Total impaired mortgage loans				6	16
Valuation allowance on impaired mortgage loans	$ 8	$ 21	$ 42	3	8
Rollforward of the valuation allowance on impaired mortgage loans
Beginning balance	8	21	42
Net decrease in valuation allowance	(4)	(5)	(11)
Charge offs	(1)	(8)	(8)
Mortgage loans classified as held for sale	0	0	(2)
Ending balance	3	8	21
Non-impaired mortgage loans
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				3,775	3,669
Variable rate mortgage loans				0	1
Total mortgage loans				3,775	3,670
Non-impaired mortgage loans \| Below 1.0
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				55	110
Variable rate mortgage loans				0	0
Total mortgage loans				55	110
Non-impaired mortgage loans \| 1.0 - 1.25
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				357	387
Variable rate mortgage loans				0	0
Total mortgage loans				357	387
Non-impaired mortgage loans \| 1.26 - 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				1,120	1,118
Variable rate mortgage loans				0	1
Total mortgage loans				1,120	1,119
Non-impaired mortgage loans \| Above 1.50
Carrying value of non-impaired fixed rate and variable rate mortgage loans by debt service coverage ratio distribution
Fixed rate mortgage loans				2,243	2,054
Variable rate mortgage loans				0	0
Total mortgage loans				$ 2,243	$ 2,054
Mortgage loans
Average carrying value and interest income recognized on impaired mortgage loans
Average balance impaired mortgage loans	$ 11	$ 26	$ 86

Investments (Details 14) - USD ($) $ in Millions	12 Months Ended
Investments (Details 14) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Municipal Bonds
Threshold percentage of municipal to total carrying value	5.00%	5.00%
Securities loaned
Fixed income and equity securities loaned	$ 518	$ 492
Interest income on collateral, net of fees	1	1	$ 1
Other investment information
Below investment grade assets	3,200	$ 3,310
Fixed income securities and short-term investments deposited with regulatory authorities	31
Non-income producing fixed income securities and other investments	$ 10
Shareholders' equity \| Concentration of credit risk \| Minimum
Municipal Bonds
Percentage of credit concentration risk of single issuer and affiliates of shareholder's equity	10.00%
Texas
Municipal Bonds
Percentage of municipal bonds carrying value	15.90%	13.60%
California
Municipal Bonds
Percentage of municipal bonds carrying value	15.00%	17.00%
Oregon
Municipal Bonds
Percentage of municipal bonds carrying value	8.40%	5.80%
New Jersey
Municipal Bonds
Percentage of municipal bonds carrying value	6.80%	5.10%
Illinois
Municipal Bonds
Percentage of municipal bonds carrying value	3.80%	5.30%

Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Fixed income securities	$ 24,629	$ 28,117
Equity securities	1,542	970
Short-term investments	816	857
Other investments:
Other investments: Free-standing derivatives	1	2	$ 9
Separate account assets	3,639	4,396
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	$ (11)	$ (2)
% of total assets at fair value	0.00%	0.00%
Other Investments, Fair Value Disclosure	$ 5
Other liabilities:
Other liabilities: Free-standing derivatives	$ (8)	$ (9)	$ (14)
% of total liabilities at fair value	(0.30%)	(0.60%)
U.S. government and agencies
Assets
Fixed income securities	$ 977	$ 770
Municipal
Assets
Fixed income securities	2,442	3,662
Foreign government
Assets
Fixed income securities	384	735
RMBS
Assets
Fixed income securities	451	605
CMBS
Assets
Fixed income securities	436	579
Redeemable preferred stock
Assets
Fixed income securities	15	16
Quoted prices in active markets for identical assets (Level 1)
Other investments:
Total assets at fair value	$ 5,858	$ 5,561
% of total assets at fair value	19.10%	16.20%
Other liabilities:
Total liabilities at fair value	$ 0	$ 0
% of total liabilities at fair value	0.00%	0.00%
Significant other observable inputs (Level 2)
Other investments:
Total assets at fair value	$ 24,102	$ 27,805
% of total assets at fair value	78.50%	80.70%
Other liabilities:
Total liabilities at fair value	$ (7)	$ (24)
% of total liabilities at fair value	2.20%	6.80%
Significant unobservable inputs (Level 3)
Other investments:
Total assets at fair value	$ 736	$ 1,077
% of total assets at fair value	2.40%	3.10%
Other liabilities:
Total liabilities at fair value	$ (307)	$ (332)
% of total liabilities at fair value	98.10%	93.80%
Recurring basis
Other investments:
Counterparty and cash collateral netting	$ (11)	$ (2)
Separate account assets		0
Derivative Asset, Fair Value, Gross Liability and Obligation to Return Cash, Offset	(11)	(2)
Other liabilities:
Counterparty and cash collateral netting	1	2
Derivative Liability Counterparty Netting and Collateral Right To Reclaim Cash Offset	1	2
Recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Assets
Fixed income securities	546	147
Equity securities	1,479	927
Short-term investments	193	90
Other investments:
Other investments: Free-standing derivatives	0	0
Separate account assets	3,639	4,396
Other assets	1	1
Total assets at fair value	5,858	5,561
Other liabilities:
Other liabilities: Free-standing derivatives	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. government and agencies
Assets
Fixed income securities	546	147
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Municipal
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - public
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Corporate - privately placed
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Foreign government
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| ABS - CDO
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| ABS - consumer and other
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| RMBS
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| CMBS
Assets
Fixed income securities	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Recurring basis \| Significant other observable inputs (Level 2)
Assets
Fixed income securities	23,417	26,942
Equity securities	3	6
Short-term investments	623	767
Other investments:
Other investments: Free-standing derivatives	59	90
Separate account assets	0
Other assets	0	0
Total assets at fair value	24,102	27,805
Other liabilities:
Other liabilities: Free-standing derivatives	(7)	(24)
Recurring basis \| Significant other observable inputs (Level 2) \| U.S. government and agencies
Assets
Fixed income securities	431	623
Recurring basis \| Significant other observable inputs (Level 2) \| Municipal
Assets
Fixed income securities	2,364	3,556
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - public
Assets
Fixed income securities	12,490	14,519
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate - privately placed
Assets
Fixed income securities	5,523	5,674
Recurring basis \| Significant other observable inputs (Level 2) \| Foreign government
Assets
Fixed income securities	384	735
Recurring basis \| Significant other observable inputs (Level 2) \| ABS - CDO
Assets
Fixed income securities	178	323
Recurring basis \| Significant other observable inputs (Level 2) \| ABS - consumer and other
Assets
Fixed income securities	1,145	313
Recurring basis \| Significant other observable inputs (Level 2) \| RMBS
Assets
Fixed income securities	451	605
Recurring basis \| Significant other observable inputs (Level 2) \| CMBS
Assets
Fixed income securities	436	578
Recurring basis \| Significant other observable inputs (Level 2) \| Redeemable preferred stock
Assets
Fixed income securities	15	16
Recurring basis \| Significant unobservable inputs (Level 3)
Assets
Fixed income securities	666	1,028
Equity securities	60	37
Short-term investments	0	0
Other investments:
Other investments: Free-standing derivatives	1	2
Separate account assets	0	0
Other assets	1	1
Total assets at fair value	728	1,068
Other liabilities:
Other liabilities: Free-standing derivatives	(8)	(9)
Recurring basis \| Significant unobservable inputs (Level 3) \| U.S. government and agencies
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| Municipal
Assets
Fixed income securities	78	106
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - public
Assets
Fixed income securities	44	160
Recurring basis \| Significant unobservable inputs (Level 3) \| Corporate - privately placed
Assets
Fixed income securities	447	632
Recurring basis \| Significant unobservable inputs (Level 3) \| Foreign government
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| ABS - CDO
Assets
Fixed income securities	53	67
Recurring basis \| Significant unobservable inputs (Level 3) \| ABS - consumer and other
Assets
Fixed income securities	44	62
Recurring basis \| Significant unobservable inputs (Level 3) \| RMBS
Assets
Fixed income securities	0	0
Recurring basis \| Significant unobservable inputs (Level 3) \| CMBS
Assets
Fixed income securities	0	1
Recurring basis \| Significant unobservable inputs (Level 3) \| Redeemable preferred stock
Assets
Fixed income securities	0	0
Non-recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Other investments:
Total assets at fair value	0
Non-recurring basis \| Significant other observable inputs (Level 2)
Other investments:
Total assets at fair value	0	0
Non-recurring basis \| Significant unobservable inputs (Level 3)
Other investments:
Total assets at fair value	8	9
Fair value
Other investments:
Total assets at fair value	$ 30,685	$ 34,441
% of total assets at fair value	100.00%	100.00%
Mortgage loans		$ 6
Limited partnership interests	$ 3	3
Other liabilities:
Total liabilities at fair value	$ (313)	$ (354)
% of total liabilities at fair value	100.00%	100.00%
Fair value \| Recurring basis
Assets
Fixed income securities	$ 24,629	$ 28,117
Equity securities	1,542	970
Short-term investments	816	857
Other investments:
Other investments: Free-standing derivatives	49	90
Separate account assets	3,639	4,396
Other assets	2	2
Total assets at fair value	30,677	34,432
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	(299)	(323)
Other liabilities:
Other liabilities: Free-standing derivatives	(14)	(31)
Fair value \| Recurring basis \| Corporate - public
Assets
Fixed income securities	12,534	14,679
Fair value \| Recurring basis \| Corporate - privately placed
Assets
Fixed income securities	5,970	6,306
Fair value \| Recurring basis \| Foreign government
Assets
Fixed income securities	384	735
Fair value \| Recurring basis \| ABS - CDO
Assets
Fixed income securities	231	390
Fair value \| Recurring basis \| ABS - consumer and other
Assets
Fixed income securities	1,189	375
Fair value \| Recurring basis \| RMBS
Assets
Fixed income securities	451	605
Fair value \| Recurring basis \| CMBS
Assets
Fixed income securities	436	579
Fair value \| Non-recurring basis
Other investments:
Total assets at fair value	8	9
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Quoted prices in active markets for identical assets (Level 1)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Significant other observable inputs (Level 2)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	0	0
Contractholder funds: Derivatives embedded in life and annuity contracts \| Recurring basis \| Significant unobservable inputs (Level 3)
Contract holder funds:
Contractholder funds: Derivatives embedded in life and annuity contracts	$ (299)	$ (323)

Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Quantitative information about the significant unobservable inputs
Fair Value	$ 24,629	$ 28,117
Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Assets, Fair Value Disclosure	736	1,077
Fair value	(307)	$ (332)
Significant unobservable inputs (Level 3) \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Fair value	$ (247)
Weighted average projected option cost (as a percent)	1.76%
Significant unobservable inputs (Level 3) \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Maximum \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	2.20%	2.00%
Significant unobservable inputs (Level 3) \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Minimum \| Stochastic cash flow model
Quantitative information about the significant unobservable inputs
Projected option cost (as a percent)	1.00%	1.00%
Significant unobservable inputs (Level 3) \| Derivatives embedded in life and annuity contracts – Equity-indexed and forward starting options \| Discounted cash flow model
Quantitative information about the significant unobservable inputs
Fair value		$ (278)
Weighted average projected option cost (as a percent)		1.76%
Significant unobservable inputs (Level 3) \| Fixed income securities - non-binding broker quotes
Quantitative information about the significant unobservable inputs
Assets, Fair Value Disclosure	$ 577	$ 914
Recurring basis \| Significant unobservable inputs (Level 3)
Quantitative information about the significant unobservable inputs
Fair Value	666	1,028
Assets, Fair Value Disclosure	$ 728	$ 1,068

Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Sold in LBL disposition		$ 230	$ 0
Purchases	$ 0
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		(347)	0
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	12	17	12
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	1,059	1,604	2,041
Total gains (losses) included in: net income	18	20	33
Total gains (losses) included in: OCI	(26)	8	14
Transfers into Level 3	31	105	114
Transfers out of Level 3	(248)	(150)	(201)
Purchases/Issues	89	82	154
Issues	0
Sales	(96)	(135)	(382)
Settlements	(107)	(128)	(169)
Balance at end of period	720	1,059	1,604
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	37	29	142
Other investments: Free-standing derivatives	1	2	9
Assets transferred between Level 1 and Level 2	0	0	0
Liabilities transferred between Level 1 and Level 2	0	0	0
Realized capital gains and losses
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	6	11	20
Net investment income
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	12	12	14
Interest credited to contractholder funds
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	26	5	40
Contract benefits
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income	7	15	74
Loss on disposition of operations
Rollforward of Level 3 assets held at fair value on a recurring basis
Total gains (losses) included in: net income		4	6
Fixed income securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		4	(385)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	12	11	5
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	1,028	1,241	2,060
Total gains (losses) included in: net income	18	20	17
Total gains (losses) included in: OCI	(23)	7	20
Transfers into Level 3	31	101	101
Transfers out of Level 3	(248)	(147)	(188)
Purchases/Issues	57	41	145
Issues	0
Sales	(91)	(121)	(371)
Settlements	(106)	(118)	(158)
Balance at end of period	666	1,028	1,241
Municipal
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	(51)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	(1)	(4)
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	106	119	338
Total gains (losses) included in: net income	5	0	(12)
Total gains (losses) included in: OCI	(5)	18	19
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	(17)	0
Purchases/Issues	0	0	0
Issues	0
Sales	(23)	(11)	(173)
Settlements	(5)	(3)	(2)
Balance at end of period	78	106	119
Corporate
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	(244)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	11	11	13
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	792	1,008	1,501
Total gains (losses) included in: net income		20	32
Total gains (losses) included in: OCI		(14)	(32)
Transfers into Level 3		85	84
Transfers out of Level 3		(114)	(172)
Purchases/Issues		20	145
Sales		(109)	(173)
Settlements		(104)	(133)
Balance at end of period		792	1,008
Asset-backed securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	(85)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	1	0	(2)
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	129	112	199
Total gains (losses) included in: net income		0	(2)
Total gains (losses) included in: OCI		3	30
Transfers into Level 3		16	17
Transfers out of Level 3		(12)	(16)
Purchases/Issues		21	0
Sales		0	(8)
Settlements		(11)	(23)
Balance at end of period		129	112
Corporate - public
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	160
Total gains (losses) included in: net income	0
Total gains (losses) included in: OCI	(2)
Transfers into Level 3	0
Transfers out of Level 3	(111)
Purchases/Issues	1
Issues	0
Sales	0
Settlements	(4)
Balance at end of period	44	160
Corporate - privately placed
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	632
Total gains (losses) included in: net income	14
Total gains (losses) included in: OCI	(17)
Transfers into Level 3	10
Transfers out of Level 3	(79)
Purchases/Issues	29
Issues	0
Sales	(67)
Settlements	(75)
Balance at end of period	447	632
ABS - CDO
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	67
Total gains (losses) included in: net income	0
Total gains (losses) included in: OCI	2
Transfers into Level 3	21
Transfers out of Level 3	(17)
Purchases/Issues	0
Issues	0
Sales	(1)
Settlements	(19)
Balance at end of period	53	67
ABS - consumer and other
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	62
Total gains (losses) included in: net income	(1)
Total gains (losses) included in: OCI	0
Transfers into Level 3	0
Transfers out of Level 3	(41)
Purchases/Issues	27
Issues	0
Sales	0
Settlements	(3)
Balance at end of period	44	62
CMBS
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		4	(5)
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	1	(2)
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	1	1	21
Total gains (losses) included in: net income	0	0	(1)
Total gains (losses) included in: OCI	(1)	0	3
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	(4)	0
Purchases/Issues	0	0	0
Issues	0
Sales	0	0	(17)
Settlements	0	0	0
Balance at end of period	0	1	1
Redeemable preferred stock
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	0
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	0	1	1
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/Issues		0	0
Sales		(1)	0
Settlements		0	0
Balance at end of period		0	1
Equity securities
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	0
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(1)	0	0
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	37	6	7
Total gains (losses) included in: net income	(1)	0	0
Total gains (losses) included in: OCI	(3)	(1)	0
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	(1)	0
Purchases/Issues	32	39	0
Issues	0
Sales	(5)	(6)	(1)
Settlements	0	0	0
Balance at end of period	60	37	6
Free-standing derivatives, net
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	0
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	1	5	10
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	(7)	(5)	(27)
Total gains (losses) included in: net income	1	0	19
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Purchases/Issues	0	2	9
Issues	0
Sales	0	0	0
Settlements	(1)	(4)	(6)
Balance at end of period	(7)	(7)	(5)
Other assets
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		0	0
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	1	(1)
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	1	0	1
Total gains (losses) included in: net income	0	1	(1)
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Purchases/Issues	0	0	0
Issues	0
Sales	0	0	0
Settlements	0	0	0
Balance at end of period	1	1	0
Assets held for sale
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Fair Value Measurement with Unobservable Inputs Reconciliation Recurring Basis Sale of Assets of Disposal Group Including Discontinued Operations		(351)	385
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	0	(2)
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	0	362	0
Total gains (losses) included in: net income		(1)	(2)
Total gains (losses) included in: OCI		2	(6)
Transfers into Level 3		4	13
Transfers out of Level 3		(2)	(13)
Purchases/Issues		0	0
Sales		(8)	(10)
Settlements		(6)	(5)
Balance at end of period		0	362
Contractholder funds: Derivatives embedded in life and annuity contracts
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Sold in LBL disposition		0	265
Purchases	$ 0
Liabilities held for sale
Fair Value Assets Measured on Recurring Basis Unobservable Input Reconciliation
Sold in LBL disposition		230	$ (265)
Lincoln Benefit Life Company \| Asset-backed securities
Rollforward of Level 3 assets held at fair value on a recurring basis
Transfer to held for sale		4
Lincoln Benefit Life Company \| CMBS
Rollforward of Level 3 assets held at fair value on a recurring basis
Transfer to held for sale		$ 4

Fair Value of Assets and Liabilities (Details 4) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	$ (323)	$ (553)	$ (553)
Total gains (losses) included in: net income	19	9	109
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Sold in LBL disposition		230	0
Purchases	0
Issues		(18)
Purchases/Issues	(2)		(117)
Sales	0	0	0
Settlements	7	9	8
Balance at end of period	(299)	(323)	(553)
Contractholder funds: Derivatives embedded in life and annuity contracts
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	(323)	(307)	(553)
Total gains (losses) included in: net income	19	(8)	89
Total gains (losses) included in: OCI	0	0	0
Transfers into Level 3	0	0	0
Transfers out of Level 3	0	0	0
Sold in LBL disposition		0	265
Purchases	0
Issues		(14)
Purchases/Issues	(2)		(111)
Sales	0	0	0
Settlements	7	6	3
Balance at end of period	(299)	(323)	(307)
Liabilities held for sale
Rollforward of Level 3 assets held at fair value on a recurring basis
Balance at beginning of period	0	(246)	0
Total gains (losses) included in: net income	$ 0	17	20
Total gains (losses) included in: OCI		0	0
Transfers into Level 3		0	0
Transfers out of Level 3		0	0
Sold in LBL disposition		230	(265)
Issues		(4)
Purchases/Issues			(6)
Sales		0	0
Settlements		3	5
Balance at end of period		$ 0	$ (246)

Fair Value of Assets and Liabilities (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	$ 12	$ 17	$ 12
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	19	9	109
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date, included in earnings	31	26	121
Realized capital gains and losses
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	(2)	4	9
Net investment income
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	14	12	9
Interest credited to contractholder funds
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	26	(5)	35
Contract benefits
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date	(7)	15	74
Loss on disposition of operations
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets and liabilities still held at the balance sheet date			(6)
Contractholder funds: Derivatives embedded in life and annuity contracts
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	19	(8)	89
Liabilities held for sale
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 liabilities still held at the balance sheet date, included in earnings	0	17	20
Fixed income securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	12	11	5
Municipal
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	(1)	(4)
Corporate
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	11	11	13
ABS
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	1	0	(2)
CMBS
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	1	(2)
Equity securities
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	(1)	0	0
Free-standing derivatives, net
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	1	5	10
Other assets
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	0	1	(1)
Assets held for sale
Gains (losses) included in net income for Level 3 assets and liabilities:
Gains (losses) for Level 3 assets still held at the balance sheet date, included in earnings	$ 0	$ 0	$ (2)

Fair Value of Assets and Liabilities (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Financial assets
Mortgage loans	$ 3,781	$ 3,686
Financial liabilities
Notes due to related parties	275	275
Liability for collateral	550	510	$ 328	$ 561
Carrying value
Financial assets
Mortgage loans	3,781	3,686
Cost method limited partnerships	530	508
Bank loans	502	431
Agent Loans Categorized under Other Investments	422	368
Notes due from related party	275	275
Financial liabilities
Contractholder funds on investment contracts	12,387	13,708
Notes due to related parties	275	275
Liability for collateral	550	510
Fair value
Financial assets
Mortgage loans	3,920	3,922
Cost method limited partnerships	661	686
Bank loans	493	427
Agent Loans Categorized under Other Investments	408	361
Notes due from related party	275	275
Financial liabilities
Contractholder funds on investment contracts	12,836	14,364
Notes due to related parties	275	275
Liability for collateral	$ 550	$ 510

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) contract	Dec. 31, 2014 USD ($) contract
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Assumed recoveries under sale of credit protection	$ 0
Securities pledged in the form of margin deposits	12
Derivatives, Fair Value
Total asset derivatives, Notional amount	302	$ 407
Total liability derivatives, Notional amount	2,957	3,242
Total derivatives, Notional amount	$ 3,259	$ 3,649
Total asset derivatives, Number of contracts \| contract	4,727	3,929
Total liability derivatives, Number of contracts \| contract	3,645	3,331
Total derivatives, Number of contracts \| contract	8,372	7,260
Total asset derivatives, Fair value, net	$ 56	$ 92
Asset derivatives, Gross asset	57	92
Asset derivatives, Gross liability	(1)	0
Derivative liabilities net amount on balance sheet	(308)	(354)
Total derivatives, Fair value, net	(252)	(262)
Liability derivatives, Gross asset	5	2
Liability derivatives, Gross liability	(313)	(356)
Derivatives not designated as accounting hedging instruments
Derivatives, Fair Value
Total asset derivatives, Notional amount	257	322
Total liability derivatives, Notional amount	$ 2,938	$ 3,192
Total asset derivatives, Number of contracts \| contract	4,727	3,929
Total liability derivatives, Number of contracts \| contract	3,645	3,331
Total asset derivatives, Fair value, net	$ 50	$ 89
Asset derivatives, Gross asset	51	89
Asset derivatives, Gross liability	(1)	0
Derivative liabilities net amount on balance sheet	(312)	(353)
Liability derivatives, Gross asset	1	2
Liability derivatives, Gross liability	(313)	(355)
Foreign currency swap agreements \| Derivatives designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	45	85
Total asset derivatives, Fair value, net	6	3
Asset derivatives, Gross asset	6	3
Asset derivatives, Gross liability	0	0
Foreign currency swap agreements \| Derivatives designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	19	50
Derivative liabilities net amount on balance sheet	4	(1)
Liability derivatives, Gross asset	4	0
Liability derivatives, Gross liability	0	(1)
Interest rate swaption agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount		11
Derivative liabilities net amount on balance sheet		0
Liability derivatives, Gross asset		0
Liability derivatives, Gross liability		0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	42	163
Total asset derivatives, Fair value, net	0	2
Asset derivatives, Gross asset	0	2
Asset derivatives, Gross liability	0	0
Interest rate cap agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	72	0
Derivative liabilities net amount on balance sheet	1	0
Liability derivatives, Gross asset	1	0
Liability derivatives, Gross liability	0	0
Interest rate swap agreements \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	85	85
Derivative liabilities net amount on balance sheet	0	1
Liability derivatives, Gross asset	0	1
Liability derivatives, Gross liability	0	0
Other contracts \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	3	3
Total asset derivatives, Fair value, net	1	1
Asset derivatives, Gross asset	1	1
Asset derivatives, Gross liability	0	0
Options and warrants \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	3,730	3,225
Total asset derivatives, Fair value, net	$ 44	$ 83
Asset derivatives, Gross asset	44	83
Asset derivatives, Gross liability	0	0
Financial futures contracts - Equity and index contracts \| Derivatives not designated as accounting hedging instruments \| Other assets
Derivatives, Fair Value
Total asset derivatives, Notional amount	$ 0	$ 0
Total asset derivatives, Number of contracts \| contract	997	704
Total asset derivatives, Fair value, net	$ 1	$ 1
Asset derivatives, Gross asset	1	1
Asset derivatives, Gross liability	0	$ 0
Financial futures contracts - Equity and index contracts \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Number of contracts \| contract		200
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	81	$ 57
Total asset derivatives, Fair value, net	1	0
Asset derivatives, Gross asset	1	0
Asset derivatives, Gross liability	0	0
Foreign currency forwards \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount		36
Derivative liabilities net amount on balance sheet		1
Liability derivatives, Gross asset		1
Liability derivatives, Gross liability		0
Options and futures \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	$ 0	$ 0
Total liability derivatives, Number of contracts \| contract	3,645	3,131
Derivative liabilities net amount on balance sheet	$ (6)	$ (22)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(6)	(22)
Guaranteed accumulation benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	481	615
Derivative liabilities net amount on balance sheet	(38)	(32)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(38)	(32)
Guaranteed withdrawal benefits \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	332	425
Derivative liabilities net amount on balance sheet	(14)	(13)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(14)	(13)
Equity-indexed and forward starting options in life and annuity product contracts \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	1,781	1,786
Derivative liabilities net amount on balance sheet	(247)	(278)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	(247)	(278)
Other embedded derivative financial instruments \| Derivatives not designated as accounting hedging instruments \| Contractholder funds
Derivatives, Fair Value
Total liability derivatives, Notional amount	85	85
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 \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	51	19
Total asset derivatives, Fair value, net	2	0
Asset derivatives, Gross asset	3	0
Asset derivatives, Gross liability	(1)	0
Credit default swaps - buying protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	2	49
Derivative liabilities net amount on balance sheet	0	(1)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	0	(1)
Credit default swaps – selling protection \| Derivatives not designated as accounting hedging instruments \| Other investments
Derivatives, Fair Value
Total asset derivatives, Notional amount	80	80
Total asset derivatives, Fair value, net	1	2
Asset derivatives, Gross asset	1	2
Asset derivatives, Gross liability	0	0
Credit default swaps – selling protection \| Derivatives not designated as accounting hedging instruments \| Other liabilities & accrued expenses
Derivatives, Fair Value
Total liability derivatives, Notional amount	100	100
Derivative liabilities net amount on balance sheet	(8)	(9)
Liability derivatives, Gross asset	0	0
Liability derivatives, Gross liability	$ (8)	$ (9)

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Asset derivatives
Asset derivatives gross amount	$ 57	$ 92
Asset derivatives, Gross liability	(1)	0
Total asset derivatives, Fair value, net	56	92
Liability derivatives
Liability derivatives gross amount	(313)	(356)
Liability derivatives, Gross asset	5	2
Derivative liabilities net amount on balance sheet	(308)	(354)
OTC derivatives
Asset derivatives
Asset derivatives gross amount	15	7
Asset derivatives, Gross liability	(6)	(2)
Derivative asset offsets under cash collateral received	(5)	0
Total asset derivatives, Fair value, net	4	5
Derivative assets pledged under securities collateral	(1)	(4)
Derivative Asset, Fair Value, Amount Offset Against Collateral	3	1
Liability derivatives
Liability derivatives gross amount	(9)	(11)
Liability derivatives, Gross asset	6	2
Derivative liability offsets under cash collateral pledged	(5)	0
Derivative liabilities net amount on balance sheet	(8)	(9)
Derivative liabilities received under securities collateral	7	7
Derivative Liability, Fair Value, Amount Offset Against Collateral	$ (1)	$ (2)

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Cash flow hedge losses to be reclassified from AOCI during the next twelve months	$ 3
Hedge ineffectiveness in realized gains	0	$ 0	$ 0
Gain recognized in OCI on derivatives during the period	10	12	3
Gain (loss) recognized in OCI on derivatives during the term of the hedging relationship	10	2	(13)
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	25	47	98
Net investment income \| Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges
Derivative Instruments, Gain (Loss)
Investment Income, Net	(1)	(1)	(1)
Realized capital gains and losses
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	10	14	14
Realized capital gains and losses \| Reclassification out of Accumulated Other Comprehensive Income \| Cash flow hedges
Derivative Instruments, Gain (Loss)
Investment Income, Net	3	(2)	0
Contract benefits
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	(7)	15	74
Interest credited to contractholder funds
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	22	22	16
Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Total gain (loss) recognized in net income on derivatives	0	(4)	(6)
Interest rate contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(7)	(3)
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		(3)	3
Interest rate contracts \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		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
Interest rate contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(4)	(6)
Equity and index contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(9)	37	94
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	0	(1)	0
Equity and index contracts \| 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
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	(9)	38	94
Equity and index contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Embedded derivative financial instruments
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	24	1	(2)
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	(1)
Embedded derivative financial instruments \| Contract benefits
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	(7)	15	74
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	31	(14)	(75)
Embedded derivative financial instruments \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	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	6	10	(2)
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	10	(2)
Foreign currency contracts \| 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
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
Foreign currency contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	0	0	0
Credit default swaps
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	4	8	14
Credit default swaps \| 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	4	8	14
Credit default swaps \| 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
Credit default swaps \| 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
Credit default swaps \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives	$ 0	0	0
Other contracts
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		(2)	(3)
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 \| 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		(2)	(3)
Other contracts \| Loss on disposition of operations
Derivative Instruments, Gain (Loss)
Derivatives not designated as accounting hedging instruments, total gain (loss) recognized in net income on derivatives		$ 0	$ 0

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 5) $ in Millions	Dec. 31, 2015 USD ($) counter-party	Dec. 31, 2014 USD ($) counter-party
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Cash and securities pledged as collateral by counterparties	$ 11
Securities pledged as collateral to counterparties	7
Collateral posted under MNAs, credit-risk-contingent provisions in a liability position	$ (7)	$ (7)
Credit Derivatives
Number of counter-parties \| counter-party	9	7
Notional amount	$ 312	$ 323
Credit exposure	14	5
Exposure, net of collateral	6	2
Gross liability fair value of contracts containing credit-risk-contingent features	9	11
Gross asset fair value of contracts containing credit-risk-contingent features and subject to MNAs	(1)	(2)
Collateral posted under MNAs for contracts containing credit-risk-contingent features	(7)	(7)
Maximum amount of additional exposure for contracts with credit-risk-contingent features if all features were triggered concurrently	$ 1	$ 2
A plus
Credit Derivatives
Number of counter-parties \| counter-party	1	1
Notional amount	$ 82	$ 164
Credit exposure	5	2
Exposure, net of collateral	$ 0	$ 1
A
Credit Derivatives
Number of counter-parties \| counter-party	5	3
Notional amount	$ 178	$ 88
Credit exposure	6	3
Exposure, net of collateral	$ 6	$ 1
A-
Credit Derivatives
Number of counter-parties \| counter-party	1	1
Notional amount	$ 16	$ 8
Credit exposure	3	0
Exposure, net of collateral	$ 0	$ 0
BBB plus
Credit Derivatives
Number of counter-parties \| counter-party	2	1
Notional amount	$ 36	$ 11
Credit exposure	0	0
Exposure, net of collateral	$ 0	$ 0
BBB
Credit Derivatives
Number of counter-parties \| counter-party	0	1
Notional amount	$ 0	$ 52
Credit exposure	0	0
Exposure, net of collateral	$ 0	$ 0

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 6) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($) entity	Dec. 31, 2014 USD ($)
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Term of credit default swaps (in years)	5 years
Credit Derivatives
Notional amount	$ 3,259	$ 3,649
The number of reference entities generally included in a CDX index \| entity	125
Credit default swaps
Credit Derivatives
Notional amount	$ 180	180
Fair value	(7)	(7)
Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	100
Fair value	(8)	(9)
Credit default swaps \| Index \| Investment grade corporate debt
Credit Derivatives
Notional amount	80	80
Fair value	1	2
AA \| Credit default swaps
Credit Derivatives
Notional amount	1	0
AA \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
AA \| Credit default swaps \| Index \| Investment grade corporate debt
Credit Derivatives
Notional amount	1	0
A \| Credit default swaps
Credit Derivatives
Notional amount	20	122
A \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	100
A \| Credit default swaps \| Index \| Investment grade corporate debt
Credit Derivatives
Notional amount	20	22
BBB \| Credit default swaps
Credit Derivatives
Notional amount	152	52
BBB \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	100	0
BBB \| Credit default swaps \| Index \| Investment grade corporate debt
Credit Derivatives
Notional amount	52	52
BB and lower \| Credit default swaps
Credit Derivatives
Notional amount	7	6
BB and lower \| Credit default swaps \| First-to-default Basket \| Municipal
Credit Derivatives
Notional amount	0	0
BB and lower \| Credit default swaps \| Index \| Investment grade corporate debt
Credit Derivatives
Notional amount	$ 7	$ 6

Derivative Financial Instruments and Off-balance sheet Financial Instruments (Details 7) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Derivative Financial Instruments and Off-balance sheet Financial Instruments
Commitments to invest in limited partnership interests	$ 1,269	$ 1,223
Commitments to extend mortgage loans	0	44
Private placement commitments	21	25
Other loan commitments	$ 46	$ 46

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 11,394	$ 11,566
Structured settlement annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 6,673	6,682
Structured settlement annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.70%
Structured settlement annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	9.00%
Other immediate fixed annuities
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 2,035	2,246
Other immediate fixed annuities \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	0.00%
Other immediate fixed annuities \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	11.50%
Traditional life insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 2,347	2,303
Traditional life insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.50%
Traditional life insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	11.30%
Accident and health insurance
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 234	238
Accident and health insurance \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	3.00%
Accident and health insurance \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	6.00%
Other
Reserve for life-contingent benefits:
Total reserve for life-contingent contract benefits	$ 105	$ 97
Other \| Minimum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	2.10%
Other \| Maximum
Key assumptions generally used in calculating the reserve for life-contingent contract benefits:
Life contingent contract benefits, interest rate assumptions (as a percent)	5.80%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 2) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Contractholder funds
Total contractholder funds	$ 20,542	$ 21,816	$ 23,604	$ 38,634
Key contract provisions relating to contractholder funds:
Reserve for life-contingent contract benefits with respect to deficiency	0	28
Interest-sensitive life insurance
Contractholder funds
Total contractholder funds	$ 7,262	7,193
Equity-indexed life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Equity-indexed life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.50%
Other life insurance \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.00%
Other life insurance \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Fixed annuities
Contractholder funds
Total contractholder funds	$ 12,934	14,284
Key contract provisions relating to contractholder funds:
Percent of fixed annuities subject to market value adjustment for discretionary withdrawals	19.20%
Fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	10 years
Immediate fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Immediate fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	9.80%
Equity indexed fixed annuities
Key contract provisions relating to contractholder funds:
Period for withdrawal or surrender charges	20 years
Equity indexed fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	(8.00%)
Equity indexed fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	13.50%
Other fixed annuities \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.10%
Other fixed annuities \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	6.00%
Funding agreements backing medium-term notes
Contractholder funds
Total contractholder funds	$ 85	85
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	0.00%
Other investment contracts
Contractholder funds
Total contractholder funds	$ 261	$ 254
Other investment contracts \| Minimum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	1.70%
Other investment contracts \| Maximum
Key contract provisions relating to contractholder funds:
Contractholder funds, interest rate assumptions (as a percent)	10.30%

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 3) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Contractholder funds activity
Balance, beginning of year	$ 21,816	$ 23,604	$ 38,634
Classified as held for sale, beginning balance	0	10,945	0
Total, including those classified as held for sale		21,816	34,549	$ 38,634
Deposits	1,052	1,227	2,338
Interest credited	716	892	1,268
Benefits	(1,060)	(1,178)	(1,521)
Surrenders and partial withdrawals	(1,246)	(2,253)	(3,279)
Maturities of and interest payments on institutional products	(1)	(2)	(1,799)
Contract charges	(684)	(798)	(1,032)
Net transfers from separate accounts	7	7	12
Other adjustments	(58)	34	(72)
Sold in LBL disposition	0	(10,662)	0
Classified as held for sale, ending balance	0	0	(10,945)
Balance, end of year	$ 20,542	$ 21,816	$ 23,604

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 4) - Variable annuities - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Variable annuity contracts with guarantees
Account balances of separate accounts with guarantees, invested in equity, fixed income and balanced mutual funds	$ 3,200	$ 3,820
Account balances of separate accounts with guarantees, invested in money market mutual funds	340	467
In the event of death
Variable annuity contracts with guarantees
Separate account value	3,541	4,288
Net amount at risk	$ 675	$ 581
Average attained age of contractholders	69 years	69 years
Liability for guarantees related to income benefits
Variable annuity contracts with guarantees
Separate account value	$ 967	$ 1,142
Net amount at risk	$ 281	$ 238
Weighted average waiting period until guarantee date	0 years	0 years
For cumulative periodic withdrawals
Variable annuity contracts with guarantees
Separate account value	$ 294	$ 382
Net amount at risk	10	8
Guaranteed accumulation benefits
Variable annuity contracts with guarantees
Separate account value	371	480
Net amount at risk	$ 31	$ 24
Weighted average waiting period until guarantee date	4 years	4 years

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 5) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	$ 350	$ 555
Less reinsurance recoverables	234	255
Net balance at beginning of period	116	300
Incurred guarantee benefits	27	43
Paid guarantee benefits	0	0
Sold in LBL disposition		(227)
Net change	27	(184)
Net balance at end of period	143	116
Plus reinsurance recoverables	222	234
Balance at end of period	365	350
Liability for guarantees related to death benefits and interest-sensitive life products
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	195	377
Less reinsurance recoverables	98	100
Net balance at beginning of period	97	277
Incurred guarantee benefits	20	34
Paid guarantee benefits	0	0
Sold in LBL disposition		(214)
Net change	20	(180)
Net balance at end of period	117	97
Plus reinsurance recoverables	106	98
Balance at end of period	223	195
Liability for guarantees related to income benefits
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	95	113
Less reinsurance recoverables	91	99
Net balance at beginning of period	4	14
Incurred guarantee benefits	(1)	0
Paid guarantee benefits	0	0
Sold in LBL disposition		(10)
Net change	(1)	(10)
Net balance at end of period	3	4
Plus reinsurance recoverables	64	91
Balance at end of period	67	95
Liability for guarantees related to accumulation and withdrawal benefits
Movement in Liabilities for Guarantees on Long-Duration Contracts, Guaranteed Benefit Liability, Gross [Roll Forward]
Balance at beginning of period	60	65
Less reinsurance recoverables	45	56
Net balance at beginning of period	15	9
Incurred guarantee benefits	8	9
Paid guarantee benefits	0	0
Sold in LBL disposition		(3)
Net change	8	6
Net balance at end of period	23	15
Plus reinsurance recoverables	52	45
Balance at end of period	$ 75	$ 60

Reserve for Life-Contingent Contract Benefits and Contractholder Funds (Details 6) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Liabilities for guarantees:
Liability for guarantees	$ 365	$ 350	$ 555
Variable annuities \| In the event of death
Liabilities for guarantees:
Liability for guarantees	105	96	98
Variable annuities \| Liability for guarantees related to income benefits
Liabilities for guarantees:
Liability for guarantees	64	92	99
Variable annuities \| Guaranteed accumulation benefits
Liabilities for guarantees:
Liability for guarantees	38	32	43
Variable annuities \| For cumulative periodic withdrawals
Liabilities for guarantees:
Liability for guarantees	14	13	13
Variable annuities \| Other guarantees
Liabilities for guarantees:
Liability for guarantees	$ 144	$ 117	$ 302

Reinsurance (Details) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended			45 Months Ended	48 Months Ended	106 Months Ended
Reinsurance (Details) $ in Millions	Aug. 31, 1998 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2011 USD ($)	Mar. 31, 2015 USD ($)	Jun. 30, 2007 USD ($)
Reinsurance recoverable
Reinsurance Retention Policy, Amount Retained	$ 1					$ 5		$ 2
Number of unaffiliated reinsurers \| item			14
Retention level for contracts issued to individuals age 70 and over						3
Retention level for certain large contracts meeting specific criteria						$ 10		$ 5
Reinsurance recoverable		$ 2,871	$ 2,871	$ 2,586
Interest credited to contractholder funds, reinsurance ceded			40	27	$ 27
Gross life insurance in force		424,270	424,270
Life insurance in force ceded to unaffiliated reinsurers		98,527	$ 98,527	97,574	195,414
Maximum
Reinsurance recoverable
Percent of morbidity risk ceded for term-life insurance policies			90.00%
Prudential
Reinsurance recoverable
Reinsurance recoverable		1,440	$ 1,440	1,460
Life and annuity premiums and contract charges, reinsurance ceded			94	109	120
Life and annuity contract benefits, reinsurance ceded			40	36	139
Interest credited to contractholder funds, reinsurance ceded			21	21	22
Operating costs and expenses, reinsurance ceded			18	20	23
Citigroup Subsidiaries and Scottish Re
Reinsurance recoverable
Reinsurance recoverable		148	148	157
Single life
Reinsurance recoverable
Reinsurance Retention Policy, Amount Retained		2					$ 5
Retention level for contracts issued to individuals age 70 and over							3
Retention level for certain large contracts meeting specific criteria							10
Joint life
Reinsurance recoverable
Reinsurance Retention Policy, Amount Retained							8
Retention level for certain large contracts meeting specific criteria							$ 10
Lincoln Benefit Life Company
Reinsurance recoverable
Investments held by trust		5,320	5,320
Affiliate
Reinsurance recoverable
Reinsurance recoverable		464	464	0
Life and annuity premiums and contract charges, reinsurance ceded			41	0	0
Life and annuity contract benefits, reinsurance ceded			32	0	0
Interest credited to contractholder funds, reinsurance ceded			16	0	0
Life insurance in force ceded to unaffiliated reinsurers		5,890	5,890
Non-affiliate
Reinsurance recoverable
Reinsurance recoverable		2,407	2,407	2,586
Life and annuity premiums and contract charges, reinsurance ceded			315	392	618
Life and annuity contract benefits, reinsurance ceded			205	329	331
Interest credited to contractholder funds, reinsurance ceded			24	$ 27	$ 27
Life insurance in force ceded to unaffiliated reinsurers		$ 92,630	$ 92,630

Reinsurance (Details 2) - USD ($) $ in Millions	12 Months Ended
Reinsurance (Details 2) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reinsurance
Direct Life and Annuity Contract Benefits	$ 1,023	$ 1,295	$ 1,805
Effects of reinsurance on revenue
Direct premiums and contract charges	728	1,084	2,093
Premiums and contract charges, net of reinsurance	1,338	1,436	1,667
Effects of reinsurance on cost and expenses
Direct interest credited to contractholder funds	636	827	1,240
Ceded interest credited to contractholder funds	(40)	(27)	(27)
Contract benefits, net of reinsurance	1,406	1,452	1,606
Interest credited to contractholder funds	717	891	1,251
Reinsurance recoverables
Reinsurance recoverable	$ 2,871	$ 2,586
A- \| Reinsurer Concentration Risk \| Allstate Financial
Reinsurance
Concentration Risk, Percentage	77.00%	92.00%
Annuities
Reinsurance recoverables
Reinsurance recoverable	$ 1,443	$ 1,594
Life insurance
Reinsurance recoverables
Reinsurance recoverable	1,348	910
Other
Reinsurance recoverables
Reinsurance recoverable	80	82
Affiliate
Effects of reinsurance on revenue
Assumed premiums and contract charges	131	130	124
Assumed Life and Annuity Contract Benefits	79	88	82
Life and annuity contract benefits, reinsurance ceded	(32)	0	0
Ceded premiums and contract charges	(41)	0	0
Effects of reinsurance on cost and expenses
Assumed interest credited to contractholder funds	10	9	9
Ceded interest credited to contractholder funds	(16)	0	0
Reinsurance recoverables
Reinsurance recoverable	464	0
Non-affiliate
Effects of reinsurance on revenue
Assumed premiums and contract charges	835	614	68
Assumed Life and Annuity Contract Benefits	541	398	50
Life and annuity contract benefits, reinsurance ceded	(205)	(329)	(331)
Ceded premiums and contract charges	(315)	(392)	(618)
Effects of reinsurance on cost and expenses
Assumed interest credited to contractholder funds	111	82	29
Ceded interest credited to contractholder funds	(24)	(27)	$ (27)
Reinsurance recoverables
Reinsurance recoverable	$ 2,407	$ 2,586

Deferred Policy Acquisition and Sales Inducement Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Deferred policy acquisition costs
Balance, beginning of year	$ 1,271	$ 1,331	$ 1,834
Classified as held for sale, beginning balance		0	743	$ 0
Total, including those classified as held for sale		1,271	2,074	1,834
Acquisition costs deferred	124	163	254
Amortization charged to income	(151)	(162)	(240)
Effect of unrealized gains and losses	99	(97)	226
Reinsurance ceded	(29)	0	0
Sold in LBL disposition	0	(707)	0
Classified as held for sale, ending balance	0	0	(743)
Balance, end of year	1,314	1,271	1,331
DSI activity relates to fixed annuities and interest-sensitive life contracts
Balance, beginning of year	44	42	41
Classified as held for sale, ending balance	0	28	0
Total, including those classified as held for sale		44	70	$ 41
Sales inducements deferred	3	4	24
Amortization charged to income	(4)	(4)	(7)
Effect of unrealized gains and losses	2	(3)	12
Sold in LBL disposition	0	(23)	0
Classified as held for sale, ending balance	0	0	(28)
Balance, end of year	$ 45	$ 44	$ 42

Guarantees and Contingent Liabilities (Details) - Guaranty funds - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Guarantees and Contingent Liabilities
Liability for insurance assessments	$ 10	$ 10
Insurance assessments, premium tax offsets	$ 15	$ 15

Guarantees and Contingent Liabilities (Details 2) $ in Millions	Dec. 31, 2015 USD ($)
Obligations of insolvent insurance companies
Guarantees and Contingent Liabilities
Maximum amount at risk pursuant to a guarantee	$ 4

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Components of the deferred income tax assets and liabilities
Unrecognized tax benefits	$ 1	$ 0	$ 0
Tax penalties or interest accrued	0
Deferred assets
Difference in tax bases of investments	46	31
Deferred reinsurance gain	17	20
Other assets	9	15
Total deferred assets	72	66
Deferred liabilities
Unrealized net capital gains	(287)	(747)
DAC	(387)	(396)
Unrealized net capital gains	(309)	(255)
Other liabilities	(75)	(75)
Total deferred liabilities	(1,058)	(1,473)
Net deferred liability	(986)	(1,407)
Components of income tax expense
Current	251	101	71
Deferred	50	132	(52)
Total income tax expense	301	233	19
Income tax refunds received			$ 11
Income taxes paid	221	80
Current income tax payable		$ 7
Current income tax receivable	$ 30
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation
Statutory federal income tax rate - expense (benefit)	35.00%	35.00%	(35.00%)
Tax credits (as a percent)	(1.70%)	(1.90%)	(181.80%)
Dividends received deduction (as a percent)	(0.60%)	(0.90%)	(46.10%)
Adjustments to prior year tax liabilities (as a percent)	(0.30%)	(0.20%)	(14.10%)
Sale of subsidiary (as a percent)	0.00%	(1.80%)	351.30%
State income taxes (as a percent)	0.40%	0.10%	15.30%
Non-deductible expenses (as a percent)	0.20%	0.20%	6.80%
Change in accounting for investments in qualified affordable housing projects (as a percent)	2.00%	0.00%	0.00%
Other (as a percent)	(0.10%)	0.20%	0.10%
Effective income tax rate - expense (as a percent)	34.90%	30.70%	96.50%

Capital Structure (Details) - USD ($) $ in Millions	12 Months Ended
Capital Structure (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Other liabilities and accrued expenses	$ 849	$ 826
Interest paid on debt	16	$ 16	$ 27
Limited Partnership [Member]
Debt Instrument [Line Items]
Liabilities Assumed	$ 44

Statutory Financial Information and Dividend Limitations (Details) $ in Millions	12 Months Ended
	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Statutory Financial Information and Dividend Limitations
Statutory net income (loss)	$ (67)	$ 1,010	$ 447
Statutory capital and surplus	2,870	$ 2,710
Payments of Dividends	103
Maximum amount of dividends ALIC able to pay without prior IL DOI approval	287
Deficit position used to determine payment of dividends	$ 334
Multiplier of authorized control level RBC to determine action level RBC	2
Statutory accounting practices, statutory capital and surplus, adjusted balance	$ 3,260
Authorized control level RBC	$ 563

Benefit Plans (Details) - USD ($) $ in Millions	12 Months Ended
Benefit Plans (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Allstate 401(k) Savings Plan
Cost allocated to Allstate 401(k) Savings Plan	$ 5	$ 7	$ 6
Pension benefits
Benefit Plans
Allocated Cost (Credit)	$ 6	$ 7	$ 51

Other Comprehensive Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Pre- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	$ (1,048)	$ 805	$ (1,047)
Less: reclassification adjustment of realized capital gains and losses	265	104	42
Unrealized net capital gains and losses	(1,313)	701	(1,089)
Unrealized foreign currency translation adjustments	(6)	(6)	3
Other comprehensive (loss) income	(1,319)	695	(1,086)
Tax
Unrealized net holding gains and losses arising during the period, net of related offsets	366	(282)	367
Less: reclassification adjustment of realized capital gains and losses	(93)	(36)	(15)
Unrealized net capital gains and losses	459	(246)	382
Unrealized foreign currency translation adjustments	2	2	(1)
Other comprehensive (loss) income	461	(244)	381
After- tax
Unrealized net holding gains and losses arising during the period, net of related offsets	(682)	523	(680)
Less: reclassification adjustment of realized capital gains and losses	172	68	27
Unrealized net capital gains and losses	(854)	455	(707)
Unrealized foreign currency translation adjustments	(4)	(4)	2
Other comprehensive (loss) income, after-tax	$ (858)	$ 451	$ (705)

Quarterly Results (unaudited) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 641	$ 992	$ 862	$ 927	$ 937	$ 823	$ 851	$ 1,049	$ 3,422	$ 3,660	$ 4,228
Net income	$ 19	$ 239	$ 150	$ 153	$ 183	$ 84	$ 132	$ 127	$ 561	$ 526	$ (38)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

SCHEDULE I - SUMMARY OF INVESTMENTS OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Millions	Dec. 31, 2015 USD ($)
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	$ 34,081
Amount at which shown in the Balance Sheet	34,962
United States government, government agencies and authorities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	920
Fair value	977
Amount at which shown in the Balance Sheet	977
States, municipalities and political subdivisions
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	2,162
Fair value	2,442
Amount at which shown in the Balance Sheet	2,442
Foreign government
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	348
Fair value	384
Amount at which shown in the Balance Sheet	384
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	3,148
Fair value	3,411
Amount at which shown in the Balance Sheet	3,411
All other corporate bonds
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	14,921
Fair value	15,093
Amount at which shown in the Balance Sheet	15,093
Asset-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,443
Fair value	1,420
Amount at which shown in the Balance Sheet	1,420
Residential mortgage-backed securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	406
Fair value	451
Amount at which shown in the Balance Sheet	451
CMBS
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	409
Fair value	436
Amount at which shown in the Balance Sheet	436
Redeemable preferred stock
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	13
Fair value	15
Amount at which shown in the Balance Sheet	15
Fixed income securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	23,770
Fair value	24,629
Amount at which shown in the Balance Sheet	24,629
Public utilities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	39
Fair value	38
Amount at which shown in the Balance Sheet	38
Banks, trusts and insurance companies
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	379
Fair value	381
Amount at which shown in the Balance Sheet	381
Industrial, miscellaneous and all other
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,085
Fair value	1,103
Amount at which shown in the Balance Sheet	1,103
Nonredeemable preferred stocks
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	23
Fair value	20
Amount at which shown in the Balance Sheet	20
Equity securities
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,526
Fair value	1,542
Amount at which shown in the Balance Sheet	1,542
Mortgage loans on real estate
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	3,781
Fair value	3,920
Amount at which shown in the Balance Sheet	3,781
Real estate investment
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	72
Amount at which shown in the Balance Sheet	72
Real estate acquired in satisfaction of debt
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	6
Amount at which shown in the Balance Sheet	6
Policy loans
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	572
Amount at which shown in the Balance Sheet	572
Derivative instruments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	43
Fair value	49
Amount at which shown in the Balance Sheet	49
Limited partnership interests
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	2,295
Amount at which shown in the Balance Sheet	2,295
Other long-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	1,206
Amount at which shown in the Balance Sheet	1,206
Short-term investments
Summary of Investments Other Than Investments in Related Parties
Cost/ amortized cost	816
Fair value	816
Amount at which shown in the Balance Sheet	$ 816

SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions	12 Months Ended
SCHEDULE IV - REINSURANCE (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Life insurance in force
Life insurance in force, Gross amount	$ 127,978	$ 119,024	$ 512,105
Life insurance in force, Ceded to other companies	98,527	97,574	195,414
Life insurance in force, Assumed from other companies	296,291	305,313	28,060
Life insurance in force, Net amount	$ 325,742	$ 326,763	$ 344,751
Life insurance in force, Percentage of amount assumed to net	91.00%	93.40%	8.10%
Premiums and contract charges:
Premiums and contract charges, Goss amount	$ 728	$ 1,084	$ 2,093
Premiums and contract charges, Ceded to other companies	356	392	618
Premiums and contract charges, Assumed from other companies	966	744	192
Premiums and contract charges, Net amount	$ 1,338	$ 1,436	$ 1,667
Premiums and contract charges, Percentage of amount assumed to net	72.20%	51.80%	11.50%
Reinsurance or coinsurance income netted against premiums ceded	$ 0	$ 0	$ 0
Life insurance
Premiums and contract charges:
Premiums and contract charges, Goss amount	689	1,022	1,969
Premiums and contract charges, Ceded to other companies	334	353	532
Premiums and contract charges, Assumed from other companies	898	674	125
Premiums and contract charges, Net amount	$ 1,253	$ 1,343	$ 1,562
Premiums and contract charges, Percentage of amount assumed to net	71.70%	50.20%	8.00%
Accident and health insurance
Premiums and contract charges:
Premiums and contract charges, Goss amount	$ 39	$ 62	$ 124
Premiums and contract charges, Ceded to other companies	22	39	86
Premiums and contract charges, Assumed from other companies	68	70	67
Premiums and contract charges, Net amount	$ 85	$ 93	$ 105
Premiums and contract charges, Percentage of amount assumed to net	80.00%	75.30%	63.80%

SCHEDULE V - VALUATION ALLOWANCES AND QUALIFYING ACCOUNTS (Details) - Allowance for estimated losses on mortgage loans - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Valuation allowances and qualifying accounts
Balance as of beginning of period	$ 8	$ 21	$ 42
Additions charged to costs and expenses	(4)	(5)	(11)
Deductions	1	8	10
Balance as of end of period	$ 3	$ 8	$ 21