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Foreign currency exchange rate risk increased by $1.6 billion, to $6.6 billion at December 31, 2012 from $5.0 billion at December 31, 2011. This change was due to an increase in exchange rate risk relating to fixed maturity securities and equity securities (including FVO and trading securities), mortgage loans, cash and cash equivalents, other invested assets, net embedded derivatives within liability host contracts and PABs. Our exposure increased primarily due to the Australian dollar and the Japanese yen. 

Sensitivity Analysis: Equity Market Prices. The table below provides additional detail regarding the potential loss in estimated fair value of our portfolio due to a 10% change in equity at December 31, 2012 by type of asset or liability: 

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(1) Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and contractholder-directed unit-linked investments and associated PABs, which are equity market sensitive, are not included herein as any equity market risk is borne by the contractholder. 

(2) Embedded derivatives are recognized in the consolidated balance sheet in the same caption as the host contract. 

Equity price risk increased by $282 million to $319 million at December 31, 2012 from $37 million at December 31, 2011. This increase is primarily due to a change in the portfolio composition of derivatives we employ. 

