Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:



	December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	78,171	$	4,490	$	82,661
Foreign government	—		61,325		209		61,534
Foreign corporate	—		48,840		6,729		55,569
U.S. government and agency	26,052		21,342		—		47,394
RMBS	—		25,339		3,461		28,800
State and political subdivision	—		12,455		—		12,455
ABS	—		11,204		1,087		12,291
CMBS	—		7,934		293		8,227
Total fixed maturity securities	26,052		266,610		16,269		308,931
Equity securities	1,104		981		428		2,513
FVO securities (1)	14,028		2,355		362		16,745
Short-term investments (2)	3,001		1,252		33		4,286
Residential mortgage loans — FVO	—		—		520		520
Other investments	81		84		—		165
Derivative assets: (3)
Interest rate	2		5,553		8		5,563
Foreign currency exchange rate	2		1,954		113		2,069
Credit	—		240		38		278
Equity market	18		548		75		641
Total derivative assets	22		8,295		234		8,551
Embedded derivatives within asset host contracts (4)	—		—		144		144
Separate account assets (5)	89,916		114,124		961		205,001
Total assets	$	134,204	$	393,701	$	18,951	$	546,856
Liabilities
Derivative liabilities: (3)
Interest rate	$	4	$	638	$	130	$	772
Foreign currency exchange rate	—		2,553		37		2,590
Credit	—		43		—		43
Equity market	4		731		199		934
Total derivative liabilities	8		3,965		366		4,339
Embedded derivatives within liability host contracts (4)	—		—		418		418
Separate account liabilities (5)	—		7		2		9
Total liabilities	$	8	$	3,972	$	786	$	4,766



	December 31, 2016
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	72,811	$	5,732	$	78,543
Foreign government	—		55,687		289		55,976
Foreign corporate	—		44,858		5,805		50,663
U.S. government and agency	24,943		19,490		—		44,433
RMBS	—		25,194		3,838		29,032
State and political subdivision	—		12,221		10		12,231
ABS	—		10,196		1,029		11,225
CMBS	—		7,112		348		7,460
Total fixed maturity securities	24,943		247,569		17,051		289,563
Equity securities	1,334		1,092		468		2,894
FVO securities (1)	11,123		2,513		287		13,923
Short-term investments (2)	4,091		1,868		46		6,005
Residential mortgage loans — FVO	—		—		566		566
Other investments	86		71		—		157
Derivative assets: (3)
Interest rate	3		7,556		2		7,561
Foreign currency exchange rate	—		3,783		80		3,863
Credit	—		145		30		175
Equity market	30		390		120		540
Total derivative assets	33		11,874		232		12,139
Embedded derivatives within asset host contracts (4)	—		—		143		143
Separate account assets (5)	82,818		111,612		1,148		195,578
Total assets	$	124,428	$	376,599	$	19,941	$	520,968
Liabilities
Derivative liabilities: (3)
Interest rate	$	12	$	1,713	$	500	$	2,225
Foreign currency exchange rate	—		3,784		54		3,838
Credit	—		49		—		49
Equity market	3		566		240		809
Total derivative liabilities	15		6,112		794		6,921
Embedded derivatives within liability host contracts (4)	—		—		872		872
Separate account liabilities (5)	—		16		7		23
Total liabilities	$	15	$	6,128	$	1,673	$	7,816

__________________


(1)	FVO securities were comprised of over 85% FVO contractholder-directed unit-linked investments at both December 31, 2017 and 2016.


(2)	Short-term investments as presented in the tables above differ from the amounts presented on the consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(3)

Derivative assets are presented within other invested assets on the consolidated balance sheets and derivative liabilities are presented within other liabilities on the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4)

Embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables and other invested assets on the consolidated balance sheets. Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the consolidated balance sheets. At December 31, 2017 and 2016, debt and equity securities also included embedded derivatives of ($132) million and ($88) million, respectively.


(5)	Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

Fair Value Inputs, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:



					December 31, 2017				December 31, 2016				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)	Impact of Increase in Input on Estimated Fair Value (2)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	83	-	142	110	18	-	138	106	Increase
	•	Market pricing	•	Quoted prices (4)	10	-	443	121	6	-	700	116	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	101	37	-	120	102	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	126	94	19	-	137	91	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	5	-	117	100	5	-	106	99	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	100	-	103	100	96	-	102	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	200	-	300		200	-	300		Increase (7)
			•	Repurchase rates (8)	(5)	-	5		(44)	-	18		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(14)	-	309		50	-	328		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	—	-	—		97	-	98		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	11%	-	31%		12%	-	32%		Increase (7)
			•	Correlation (12)	10%	-	30%		40%	-	40%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.01%	-	0.78%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.04%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	8.25%	-	33%		9.95%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.02%	-	1.32%		0.04%	-	1.70%		Decrease (18)

__________________


(1)	The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.


(2)	The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.


(3)	Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.


(4)	Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.


(5)	Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6)

Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.


(7)	Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.


(8)	Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.


(9)	Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.


(10)	At both December 31, 2017 and 2016, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.


(11)	Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.


(12)	Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.


(13)	Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14)

Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(15)

The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(16)

The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.


(17)	Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.


(18)	Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value Inputs, Quantitative Information



					December 31, 2017				December 31, 2016				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)	Impact of Increase in Input on Estimated Fair Value (2)
Fixed maturity securities (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	83	-	142	110	18	-	138	106	Increase
	•	Market pricing	•	Quoted prices (4)	10	-	443	121	6	-	700	116	Increase
	•	Consensus pricing	•	Offered quotes (4)	97	-	104	101	37	-	120	102	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	—	-	126	94	19	-	137	91	Increase (5)
ABS	•	Market pricing	•	Quoted prices (4)	5	-	117	100	5	-	106	99	Increase (5)
	•	Consensus pricing	•	Offered quotes (4)	100	-	103	100	96	-	102	100	Increase (5)
Derivatives
Interest rate	•	Present value techniques	•	Swap yield (6)	200	-	300		200	-	300		Increase (7)
			•	Repurchase rates (8)	(5)	-	5		(44)	-	18		Decrease (7)
Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	(14)	-	309		50	-	328		Increase (7)
Credit	•	Present value techniques	•	Credit spreads (9)	—	-	—		97	-	98		Decrease (7)
	•	Consensus pricing	•	Offered quotes (10)
Equity market	•	Present value techniques or option pricing models	•	Volatility (11)	11%	-	31%		12%	-	32%		Increase (7)
			•	Correlation (12)	10%	-	30%		40%	-	40%
Embedded derivatives
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.21%		0%	-	0.21%		Decrease (13)
				Ages 41 - 60	0.03%	-	0.75%		0.01%	-	0.78%		Decrease (13)
				Ages 61 - 115	0.15%	-	100%		0.04%	-	100%		Decrease (13)
			•	Lapse rates:
				Durations 1 - 10	0.25%	-	100%		0.25%	-	100%		Decrease (14)
				Durations 11 - 20	2%	-	100%		2%	-	100%		Decrease (14)
				Durations 21 - 116	1.25%	-	100%		1.25%	-	100%		Decrease (14)
			•	Utilization rates	0%	-	25%		0%	-	25%		Increase (15)
			•	Withdrawal rates	0%	-	20%		0%	-	20%		(16)
			•	Long-term equity volatilities	8.25%	-	33%		9.95%	-	33%		Increase (17)
			•	Nonperformance risk spread	0.02%	-	1.32%		0.04%	-	1.70%		Decrease (18)

__________________


(1)	The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities.


(2)	The impact of a decrease in input would have the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.


(3)	Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations.


(4)	Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par.


(5)	Changes in the assumptions used for the probability of default are accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6)


(7)	Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.


(8)	Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.


(9)	Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.


(10)	At both December 31, 2017 and 2016, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.


(11)	Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.


(12)	Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.


(13)	Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.

(14)

(15)

(16)


(17)	Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.


(18)	Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)			Foreign Government			Structured Securities			State and Political Subdivision			Equity Securities			FVO Securities
	(In millions)
Balance, January 1, 2016	$	10,311		$	829		$	5,121		$	34		$	334		$	270
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	5			12			103			1			(24		)	2
Total realized/unrealized gains (losses) included in AOCI	59			(42		)	56			2			19			—
Purchases (4)	2,754			44			2,221			—			23			99
Sales (4)	(996		)	(45		)	(1,483		)	—			(15		)	(35		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	969			3			25			7			327			18
Transfers out of Level 3 (5)	(1,565		)	(512		)	(828		)	(34		)	(196		)	(67		)
Balance, December 31, 2016	11,537			289			5,215			10			468			287
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	3			4			94			—			—			22
Total realized/unrealized gains (losses) included in AOCI	708			—			133			—			19			—
Purchases (4)	3,830			30			1,376			—			25			292
Sales (4)	(1,763		)	(53		)	(1,598		)	—			(51		)	(141		)
Issuances (4)	—			—			—			—			—			—
Settlements (4)	—			—			—			—			—			—
Transfers into Level 3 (5)	72			5			70			—			1			8
Transfers out of Level 3 (5)	(3,168		)	(66		)	(449		)	(10		)	(34		)	(106		)
Balance, December 31, 2017	$	11,219		$	209		$	4,841		$	—		$	428		$	362
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (6)	$	13		$	12		$	103		$	—		$	—		$	(27	)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (6)	$	6		$	12		$	103		$	1		$	(29	)	$	3
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (6)	$	1		$	4		$	84		$	—		$	(17	)	$	19
Gains (Losses) Data for the year ended December 31, 2015:
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	$	53		$	13		$	103		$	—		$	11		$	(30	)
Total realized/unrealized gains (losses) included in AOCI	$	(637	)	$	(23	)	$	(77	)	$	1		$	(54	)	$	—



	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Short-term Investments			Residential Mortgage Loans - FVO			Net Derivatives (7)			Net Embedded Derivatives (8)			Separate Accounts (9)
	(In millions)
Balance, January 1, 2016	$	244		$	314		$	(179	)	$	(178	)	$	1,558
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	1			8			(31		)	(214		)	(2		)
Total realized/unrealized gains (losses) included in AOCI	4			—			(367		)	(20		)	—
Purchases (4)	50			297			28			—			375
Sales (4)	(50		)	(11		)	—			—			(512		)
Issuances (4)	—			—			—			—			62
Settlements (4)	—			(42		)	(13		)	(317		)	(51		)
Transfers into Level 3 (5)	—			—			—			—			19
Transfers out of Level 3 (5)	(203		)	—			—			—			(308		)
Balance, December 31, 2016	46			566			(562		)	(729		)	1,141
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	—			40			87			823			(8		)
Total realized/unrealized gains (losses) included in AOCI	—			—			216			(46		)	—
Purchases (4)	32			175			—			—			187
Sales (4)	(1		)	(179		)	—			—			(80		)
Issuances (4)	—			—			(7		)	—			1
Settlements (4)	—			(82		)	134			(322		)	(93		)
Transfers into Level 3 (5)	—			—			—			—			35
Transfers out of Level 3 (5)	(44		)	—			—			—			(224		)
Balance, December 31, 2017	$	33		$	520		$	(132	)	$	(274	)	$	959
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2015: (6)	$	—		$	20		$	(170	)	$	216		$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2016: (6)	$	1		$	8		$	(56	)	$	(242	)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at December 31, 2017: (6)	$	—		$	27		$	53		$	793		$	—
Gains (Losses) Data for the year ended December 31, 2015:
Total realized/unrealized gains (losses) included in net income (loss) (2) (3)	$	1		$	20		$	(149	)	$	155		$	14
Total realized/unrealized gains (losses) included in AOCI	$	(1	)	$	—		$	(2	)	$	1		$	—

__________________


(1)	Comprised of U.S. and foreign corporate securities.

(2)

Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivatives gains (losses).


(3)	Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.


(4)	Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.


(5)	Gains and losses in net income (loss) and OCI are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.


(6)	Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).


(7)	Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.


(8)	Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9)

Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Fair Value Option

The following table presents information for residential mortgage loans which are accounted for under the FVO and were initially measured at fair value.



	December 31,
	2017			2016
	(In millions)
Unpaid principal balance	$	650		$	794
Difference between estimated fair value and unpaid principal balance	(130		)	(228		)
Carrying value at estimated fair value	$	520		$	566
Loans in nonaccrual status	$	198		$	214
Loans more than 90 days past due	$	94		$	137
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance	$	(102	)	$	(150	)

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).



	At December 31,						Years Ended December 31,
	2017		2016		2015		2017			2016			2015
	Carrying Value After Measurement						Gains (Losses)
	(In millions)
Other limited partnership interests (1)	$	58	$	96	$	57	$	(65	)	$	(64	)	$	(31	)
Other assets (2)	$	—	$	—	$	—	$	10		$	(30	)	$	—

__________________

(1)

For these cost method investments, estimated fair value is determined from information provided on the financial statements of the underlying entities including NAV data. These investments include private equity and debt funds that typically invest primarily in various strategies including domestic and international leveraged buyout funds; power, energy, timber and infrastructure development funds; venture capital funds; and below investment grade debt and mezzanine debt funds. Distributions will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. The Company estimates that the underlying assets of the funds will be liquidated over the next two to 10 years. Unfunded commitments for these investments at both December 31, 2017 and 2016 were not significant.


(2)	As discussed in Note 3, during the year ended December 31, 2016, the Company recognized an impairment of computer software in connection with the U.S. Retail Advisor Force Divestiture.

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:



	December 31, 2017
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	68,211	$	—	$	—	$	69,797	$	69,797
Policy loans	$	9,669	$	—	$	336	$	11,176	$	11,512
Other limited partnership interests	$	219	$	—	$	—	$	216	$	216
Other invested assets	$	443	$	—	$	—	$	443	$	443
Premiums, reinsurance and other receivables	$	4,155	$	—	$	1,283	$	3,056	$	4,339
Other assets	$	285	$	—	$	189	$	139	$	328
Liabilities
Policyholder account balances	$	114,355	$	—	$	—	$	116,534	$	116,534
Long-term debt	$	15,675	$	—	$	17,773	$	—	$	17,773
Collateral financing arrangement	$	1,121	$	—	$	—	$	894	$	894
Junior subordinated debt securities	$	3,144	$	—	$	4,319	$	—	$	4,319
Other liabilities	$	3,208	$	—	$	1,496	$	2,345	$	3,841
Separate account liabilities	$	124,011	$	—	$	124,011	$	—	$	124,011



	December 31, 2016
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	64,601	$	—	$	—	$	65,742	$	65,742
Policy loans	$	9,511	$	—	$	335	$	10,921	$	11,256
Other limited partnership interests	$	340	$	—	$	—	$	371	$	371
Other invested assets	$	497	$	145	$	—	$	352	$	497
Premiums, reinsurance and other receivables	$	4,088	$	—	$	1,152	$	3,127	$	4,279
Other assets	$	237	$	—	$	198	$	71	$	269
Liabilities
Policyholder account balances	$	108,255	$	—	$	—	$	110,359	$	110,359
Long-term debt	$	16,422	$	—	$	17,972	$	—	$	17,972
Collateral financing arrangement	$	1,274	$	—	$	—	$	978	$	978
Junior subordinated debt securities	$	3,169	$	—	$	3,982	$	—	$	3,982
Other liabilities	$	1,767	$	—	$	1,493	$	275	$	1,768
Separate account liabilities	$	118,385	$	—	$	118,385	$	—	$	118,385

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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