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Investments

12 Months Ended

Dec. 31, 2019

INVESTMENTS

Fixed Maturity Securities

The following tables set forth the composition of fixed maturity securities (excluding investments classified as trading), as of the dates indicated:



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(4)
	(in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	30,625	$	5,195	$	161	$	35,659	$	0
Obligations of U.S. states and their political subdivisions	10,068		1,437		8		11,497		0
Foreign government bonds	98,356		20,761		63		119,054		(34		)
U.S. public corporate securities	87,566		11,030		257		98,339		(6		)
U.S. private corporate securities(1)	34,410		2,243		120		36,533		0
Foreign public corporate securities	26,841		3,054		70		29,825		(1		)
Foreign private corporate securities	27,619		1,201		580		28,240		0
Asset-backed securities(2)	13,067		147		40		13,174		(77		)
Commercial mortgage-backed securities	14,978		610		14		15,574		0
Residential mortgage-backed securities(3)	3,044		159		2		3,201		(1		)
Total fixed maturities, available-for-sale(1)	$	346,574	$	45,837	$	1,315	$	391,096	$	(119	)



	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity:
Foreign government bonds	$	891	$	282	$	0	$	1,173
Foreign public corporate securities	649		64		0		713
Foreign private corporate securities	83		2		0		85
Residential mortgage-backed securities(3)	310		21		0		331
Total fixed maturities, held-to-maturity(5)	$	1,933	$	369	$	0	$	2,302

__________


(1)	Excludes notes with amortized cost of $4,751 million (fair value, $4,757 million), which have been offset with the associated debt under a netting agreement.


(2)	Includes collateralized loan obligations, auto loans, education loans, home equity and other asset types.


(3)	Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.


(4)	Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $362 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.


(5)	Excludes notes with amortized cost of $4,998 million (fair value, $5,401 million), which have been offset with the associated debt under a netting agreement.



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(4)
	(in millions)
Fixed maturities, available-for-sale:
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	28,242	$	2,994	$	642	$	30,594	$	0
Obligations of U.S. states and their political subdivisions	9,880		676		63		10,493		0
Foreign government bonds	96,710		16,714		314		113,110		0
U.S. public corporate securities	82,257		3,912		2,754		83,415		(2		)
U.S. private corporate securities(1)	32,450		1,151		581		33,020		0
Foreign public corporate securities	27,671		2,061		531		29,201		(3		)
Foreign private corporate securities	25,314		434		1,217		24,531		0
Asset-backed securities(2)	12,888		162		77		12,973		(160		)
Commercial mortgage-backed securities	13,396		99		180		13,315		0
Residential mortgage-backed securities(3)	2,937		99		32		3,004		(1		)
Total fixed maturities, available-for-sale(1)	$	331,745	$	28,302	$	6,391	$	353,656	$	(166	)



	December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity:
Foreign government bonds	$	885	$	269	$	0	$	1,154
Foreign public corporate securities	668		64		0		732
Foreign private corporate securities	95		3		0		98
Residential mortgage-backed securities(3)	365		23		0		388
Total fixed maturities, held-to-maturity(5)	$	2,013	$	359	$	0	$	2,372

__________


(1)	Excludes notes with amortized cost of $4,216 million (fair value, $4,216 million), which have been offset with the associated debt under a netting agreement.


(2)	Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.


(3)	Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.


(4)	Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $356 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.


(5)	Excludes notes with amortized cost of $4,879 million (fair value, $4,879 million), which have been offset with the associated debt under a netting agreement.

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:



	December 31, 2019
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Fixed maturities(1):
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	4,950	$	161	$	267	$	0	$	5,217	$	161
Obligations of U.S. states and their political subdivisions	273		8		0		0		273		8
Foreign government bonds	2,332		60		126		3		2,458		63
U.S. public corporate securities	3,944		85		2,203		172		6,147		257
U.S. private corporate securities	2,283		44		1,563		76		3,846		120
Foreign public corporate securities	1,271		23		496		47		1,767		70
Foreign private corporate securities	1,466		33		5,666		547		7,132		580
Asset-backed securities	3,979		12		4,433		28		8,412		40
Commercial mortgage-backed securities	1,193		10		164		4		1,357		14
Residential mortgage-backed securities	207		1		88		1		295		2
Total	$	21,898	$	437	$	15,006	$	878	$	36,904	$	1,315

__________


(1)	As of December 31, 2019, there were no securities classified as held-to-maturity in a gross unrealized loss position.



	December 31, 2018
	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Fixed maturities(1):
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	3,007	$	67	$	6,986	$	575	$	9,993	$	642
Obligations of U.S. states and their political subdivisions	1,725		25		999		38		2,724		63
Foreign government bonds	2,369		136		3,515		178		5,884		314
U.S. public corporate securities	34,064		1,570		13,245		1,184		47,309		2,754
U.S. private corporate securities	8,923		225		7,985		356		16,908		581
Foreign public corporate securities	7,363		308		2,928		223		10,291		531
Foreign private corporate securities	12,218		692		4,468		525		16,686		1,217
Asset-backed securities	8,255		70		669		7		8,924		77
Commercial mortgage-backed securities	1,781		14		4,733		166		6,514		180
Residential mortgage-backed securities	194		1		1,042		31		1,236		32
Total	$	79,899	$	3,108	$	46,570	$	3,283	$	126,469	$	6,391

__________


(1)	As of December 31, 2018, there was $13 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity.

As of December 31, 2019 and 2018, the gross unrealized losses on fixed maturity securities were composed of $973 million and $5,391 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $342 million and $1,000 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2019, the $878 million of gross unrealized losses of twelve months or more were concentrated in the Company’s corporate securities within the energy, consumer non-cyclical and finance sectors. As of December 31, 2018, the $3,283 million of gross unrealized losses of twelve months or more were concentrated in U.S. government bonds and in the Company’s corporate securities within the utility, consumer non-cyclical and finance sectors. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either December 31, 2019 or 2018. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of December 31, 2019, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis.

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:



	December 31, 2019
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Fixed maturities:
Due in one year or less	$	12,287	$	12,816	$	29	$	29
Due after one year through five years	51,942		55,160		114		116
Due after five years through ten years	68,965		75,506		592		657
Due after ten years(1)	182,291		215,665		888		1,169
Asset-backed securities	13,067		13,174		0		0
Commercial mortgage-backed securities	14,978		15,574		0		0
Residential mortgage-backed securities	3,044		3,201		310		331
Total	$	346,574	$	391,096	$	1,933	$	2,302

__________


(1)	Excludes available-for-sale notes with amortized cost of $4,751 million (fair value, $4,757 million) and held-to-maturity notes with amortized cost of $4,998 million (fair value, $5,401 million), which have been offset with the associated debt under a netting agreement.

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date.

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:



	Years Ended December 31,
	2019			2018			2017
	(in millions)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	32,283		$	38,230		$	34,002
Proceeds from maturities/prepayments	20,036			21,207			24,460
Gross investment gains from sales and maturities	1,715			1,412			1,548
Gross investment losses from sales and maturities	(434		)	(905		)	(700		)
OTTI recognized in earnings(2)	(315		)	(279		)	(267		)
Fixed maturities, held-to-maturity:
Proceeds from maturities/prepayments(3)	$	99		$	94		$	153

__________


(1)	Includes $13 million, $(238) million and $218 million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019, 2018 and 2017, respectively.


(2)	Excludes the portion of OTTI amounts remaining in OCI, representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.

(3)

Includes less than $(1) million, less than $(1) million and $(2) million of non-cash related proceeds due to the timing of trade settlements for the years ended December 31, 2019, 2018 and 2017, respectively.

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:



	Years Ended December 31,
	2019			2018
	(in millions)
Credit loss impairments:
Balance in OCI, beginning of period	$	140		$	319
New credit loss impairments	61			1
Additional credit loss impairments on securities previously impaired	12			0
Increases due to the passage of time on previously recorded credit losses	6			10
Reductions for securities which matured, paid down, prepaid or were sold during the period	(44		)	(162		)
Reductions for securities impaired to fair value during the period(1)	(12		)	(24		)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(4		)	(4		)
Balance in OCI, end of period	$	159		$	140

__________

(1)

Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Assets Supporting Experience-Rated Contractholder Liabilities

The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated:



	December 31, 2019				December 31, 2018
	Amortized Cost or Cost		Fair Value		Amortized Cost or Cost		Fair Value
	(in millions)
Short-term investments and cash equivalents	$	277	$	277	$	215	$	215
Fixed maturities:
Corporate securities	13,143		13,603		13,258		13,119
Commercial mortgage-backed securities	1,845		1,896		2,346		2,324
Residential mortgage-backed securities(1)	1,134		1,158		828		811
Asset-backed securities(2)	1,639		1,662		1,649		1,665
Foreign government bonds	802		814		1,087		1,083
U.S. government authorities and agencies and obligations of U.S. states	341		397		538		577
Total fixed maturities(3)	18,904		19,530		19,706		19,579
Equity securities	1,465		1,790		1,378		1,460
Total assets supporting experience-rated contractholder liabilities(4)	$	20,646	$	21,597	$	21,299	$	21,254

__________


(1)	Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.


(2)	Includes collateralized loan obligations, auto loans, education loans, home equity and other asset types. Collateralized loan obligations at fair value were $1,060 million and $1,028 million as of December 31, 2019 and 2018, respectively, all of which were rated AAA.


(3)	As a percentage of amortized cost, 94% and 93% of the portfolio was considered high or highest quality based on NAIC or equivalent ratings, as of December 31, 2019 and 2018, respectively.


(4)	As a percentage of amortized cost, 77% and 78% of the portfolio consisted of public securities as of December 31, 2019 and 2018, respectively.

The net change in unrealized gains (losses) from assets supporting experience-rated contractholder liabilities still held at period end, recorded within “Other income (loss),” was $996 million, $(778) million and $300 million during the years ended December 31, 2019, 2018 and 2017, respectively.

Equity Securities

The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other income (loss),” was $943 million and $(1,157) million during the years ended December 31, 2019 and 2018, respectively. The net change in unrealized gains (losses) from equity securities still held at period end, recorded within “Other comprehensive income (loss),” was $(494) million during the year ended December 31, 2017.

Concentrations of Financial Instruments

The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any single issuer.

As of the dates indicated, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s equity included securities of the U.S. government and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below:



	December 31, 2019				December 31, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in Japanese government and government agency securities:
Fixed maturities, available-for-sale	$	74,118	$	89,546	$	71,952	$	84,461
Fixed maturities, held-to-maturity	869		1,143		864		1,127
Fixed maturities, trading	23		23		22		22
Assets supporting experience-rated contractholder liabilities	653		664		691		697
Total	$	75,663	$	91,376	$	73,529	$	86,307

	December 31, 2019				December 31, 2018
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in South Korean government and government agency securities:
Fixed maturities, available-for-sale	$	10,823	$	13,322	$	10,339	$	12,586
Assets supporting experience-rated contractholder liabilities	15		16		15		15
Total	$	10,838	$	13,338	$	10,354	$	12,601

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:



	December 31, 2019					December 31, 2018
	Amount (in millions)			% of Total		Amount (in millions)			% of Total
Commercial mortgage and agricultural property loans by property type:
Office	$	13,462		21.4	%	$	13,280		22.4	%
Retail	8,379			13.3		8,639			14.6
Apartments/Multi-Family	17,348			27.6		16,538			28.0
Industrial	13,226			21.1		11,574			19.6
Hospitality	2,415			3.9		1,931			3.3
Other	4,533			7.2		3,846			6.5
Total commercial mortgage loans	59,363			94.5		55,808			94.4
Agricultural property loans	3,472			5.5		3,316			5.6
Total commercial mortgage and agricultural property loans by property type	62,835			100.0	%	59,124			100.0	%
Allowance for credit losses	(117		)			(123		)
Total net commercial mortgage and agricultural property loans by property type	62,718					59,001
Other loans:
Uncollateralized loans	656					660
Residential property loans	124					157
Other collateralized loans	65					17
Total other loans	845					834
Allowance for credit losses	(4		)			(5		)
Total net other loans	841					829
Total commercial mortgage and other loans(1)	$	63,559				$	59,830

__________


(1)	Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of December 31, 2019 and 2018, the net carrying value of these loans was $228 million and $763 million, respectively.

As of December 31, 2019, the commercial mortgage and agricultural property loans were secured by properties geographically dispersed throughout the United States (with the largest concentrations in California (27%), Texas (9%) and New York (8%)) and included loans secured by properties in Europe (7%), Australia (1%) and Asia (1%).

The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:



	Commercial Mortgage Loans			Agricultural Property Loans		Residential Property Loans			Other Collateralized Loans		Uncollateralized Loans			Total
	(in millions)
Balance at December 31, 2016	$	96		$	2	$	2		$	0	$	6		$	106
Addition to (release of) allowance for credit losses	2			1		(1		)	0		(1		)	1
Charge-offs, net of recoveries	(1		)	0		0			0		0			(1		)
Change in foreign exchange	0			0		0			0		0			0
Balance at December 31, 2017	97			3		1			0		5			106
Addition to (release of) allowance for credit losses	23			0		(1		)	0		0			22
Charge-offs, net of recoveries	0			0		0			0		0			0
Change in foreign exchange	0			0		0			0		0			0
Balance at December 31, 2018	120			3		0			0		5			128
Addition to (release of) allowance for credit losses	(5		)	0		0			0		(1		)	(6		)
Charge-offs, net of recoveries	(1		)	0		0			0		0			(1		)
Change in foreign exchange	0			0		0			0		0			0
Balance at December 31, 2019	$	114		$	3	$	0		$	0	$	4		$	121

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:



	December 31, 2019
	Commercial Mortgage Loans		Agricultural Property Loans		Residential Property Loans		Other Collateralized Loans		Uncollateralized Loans		Total
	(in millions)
Allowance for credit losses:
Individually evaluated for impairment	$	7	$	0	$	0	$	0	$	0	$	7
Collectively evaluated for impairment	107		3		0		0		4		114
Total ending balance(1)	$	114	$	3	$	0	$	0	$	4	$	121
Recorded investment(2):
Individually evaluated for impairment	$	65	$	15	$	0	$	0	$	0	$	80
Collectively evaluated for impairment	59,298		3,457		124		65		656		63,600
Total ending balance(1)	$	59,363	$	3,472	$	124	$	65	$	656	$	63,680

__________


(1)	As of December 31, 2019, there were no loans acquired with deteriorated credit quality.


(2)	Recorded investment reflects the carrying value gross of related allowance.



	December 31, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Residential Property Loans		Other Collateralized Loans		Uncollateralized Loans		Total
	(in millions)
Allowance for credit losses:
Individually evaluated for impairment	$	19	$	0	$	0	$	0	$	0	$	19
Collectively evaluated for impairment	101		3		0		0		5		109
Total ending balance(1)	$	120	$	3	$	0	$	0	$	5	$	128
Recorded investment(2):
Individually evaluated for impairment	$	67	$	35	$	0	$	0	$	2	$	104
Collectively evaluated for impairment	55,741		3,281		157		17		658		59,854
Total ending balance(1)	$	55,808	$	3,316	$	157	$	17	$	660	$	59,958

__________


(1)	As of December 31, 2018, there were no loans acquired with deteriorated credit quality.

(2)

Recorded investment reflects the carrying value gross of related allowance.

The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:



Commercial mortgage loans
	December 31, 2019
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	31,027	$	701	$	217	$	31,945
60%-69.99%	17,090		1,145		42		18,277
70%-79.99%	8,020		719		28		8,767
80% or greater	209		143		22		374
Total commercial mortgage loans	$	56,346	$	2,708	$	309	$	59,363



Agricultural property loans
	December 31, 2019
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	3,289	$	57	$	14	$	3,360
60%-69.99%	112		0		0		112
70%-79.99%	0		0		0		0
80% or greater	0		0		0		0
Total agricultural property loans	$	3,401	$	57	$	14	$	3,472



Total commercial mortgage and agricultural property loans
	December 31, 2019
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	34,316	$	758	$	231	$	35,305
60%-69.99%	17,202		1,145		42		18,389
70%-79.99%	8,020		719		28		8,767
80% or greater	209		143		22		374
Total commercial mortgage and agricultural property loans	$	59,747	$	2,765	$	323	$	62,835

The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:



Commercial mortgage loans
	December 31, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	30,325	$	538	$	161	$	31,024
60%-69.99%	16,538		621		0		17,159
70%-79.99%	6,324		754		41		7,119
80% or greater	332		142		32		506
Total commercial mortgage loans	$	53,519	$	2,055	$	234	$	55,808



Agricultural property loans
	December 31, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	2,997	$	198	$	57	$	3,252
60%-69.99%	64		0		0		64
70%-79.99%	0		0		0		0
80% or greater	0		0		0		0
Total agricultural property loans	$	3,061	$	198	$	57	$	3,316



Total commercial mortgage and agricultural property loans
	December 31, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	33,322	$	736	$	218	$	34,276
60%-69.99%	16,602		621		0		17,223
70%-79.99%	6,324		754		41		7,119
80% or greater	332		142		32		506
Total commercial mortgage and agricultural property loans	$	56,580	$	2,253	$	291	$	59,124

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:



	December 31, 2019
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Non-Accrual Status(2)
	(in millions)
Commercial mortgage loans	$	59,363	$	0	$	0	$	0	$	0	$	59,363	$	44
Agricultural property loans	3,458		1		0		13		14		3,472		13
Residential property loans	121		1		0		2		3		124		2
Other collateralized loans	65		0		0		0		0		65		0
Uncollateralized loans	656		0		0		0		0		656		0
Total	$	63,663	$	2	$	0	$	15	$	17	$	63,680	$	59

__________


(1)	As of December 31, 2019, there were no loans in this category accruing interest.


(2)	For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.



	December 31, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Non-Accrual Status(2)
	(in millions)
Commercial mortgage loans	$	55,808	$	0	$	0	$	0	$	0	$	55,808	$	66
Agricultural property loans	3,301		0		0		15		15		3,316		18
Residential property loans	154		1		0		2		3		157		3
Other collateralized loans	17		0		0		0		0		17		0
Uncollateralized loans	660		0		0		0		0		660		0
Total	$	59,940	$	1	$	0	$	17	$	18	$	59,958	$	87

__________


(1)	As of December 31, 2018, there were no loans in this category accruing interest.

(2)

For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.

Other Invested Assets

The following table sets forth the composition of “Other invested assets,” as of the dates indicated:



	December 31,
	2019		2018
	(in millions)
LPs/LLCs:
Equity method:
Private equity	$	3,625	$	3,182
Hedge funds	1,947		1,337
Real estate-related	1,372		1,207
Subtotal equity method	6,944		5,726
Fair value:
Private equity	1,705		1,684
Hedge funds	2,172		2,135
Real estate-related	336		296
Subtotal fair value	4,213		4,115
Total LPs/LLCs	11,157		9,841
Real estate held through direct ownership(1)	2,388		2,466
Derivative instruments	877		1,155
Other(2)	1,184		1,064
Total other invested assets	$	15,606	$	14,526

__________


(1)	As of December 31, 2019 and 2018, real estate held through direct ownership had mortgage debt of $537 million and $776 million, respectively.


(2)	Primarily includes strategic investments made by investment management operations, leveraged leases and member and activity stock held in the Federal Home Loan Banks of New York and Boston. For additional information regarding the Company’s holdings in the Federal Home Loan Banks of New York and Boston, see Note 17.

In certain investment structures, the Company’s investment management business invests with other co-investors in an investment fund referred to as a feeder fund. In these structures, the invested capital of several feeder funds is pooled together and used to purchase ownership interests in another fund, referred to as a master fund. The master fund utilizes this invested capital and, in certain cases, other debt financing, to purchase various classes of assets on behalf of its investors. Specialized industry accounting for investment companies calls for the feeder fund to reflect its investment in the master fund as a single net asset equal to its proportionate share of the net assets of the master fund, regardless of its level of interest in the master fund. In cases where the Company consolidates the feeder fund, it retains the feeder fund’s net asset presentation and reports the consolidated feeder fund’s proportionate share of the net assets of the master fund in “Other invested assets,” with any unaffiliated investors’ non-controlling interest in the feeder fund reported in “Other liabilities” or “Noncontrolling interests.” The consolidated feeder funds’ investments in these master funds, reflected on this net asset basis, totaled $428 million and $349 million as of December 31, 2019 and 2018, respectively. There was $230 million and $199 million of unaffiliated interest in the consolidated feeder funds as of December 31, 2019 and 2018, respectively, and the master funds had gross assets of $89,313 million and $122,376 million, respectively, and gross liabilities of $86,471 million and $119,697 million, respectively, which are not included on the Company’s balance sheet.

Equity Method Investments

The following tables set forth summarized combined financial information for significant LP/LLC interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 9. Changes between periods in the tables below reflect changes in the activities within the operating joint ventures and LPs/LLCs, as well as changes in the Company’s level of investment in such entities.



	December 31,
	2019		2018
	(in millions)
STATEMENTS OF FINANCIAL POSITION
Total assets(1)	$	313,828	$	78,546
Total liabilities(2)	$	19,274	$	8,293
Partners’ capital	294,554		70,253
Total liabilities and partners’ capital	$	313,828	$	78,546
Total liabilities and partners’ capital included above	$	7,438	$	6,265
Equity in LP/LLC interests not included above	814		790
Carrying value	$	8,252	$	7,055

__________


(1)	Amount represents gross assets of each fund where the Company has a significant investment. These assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.


(2)	Amount represents gross liabilities of each fund where the Company has a significant investment. These liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities.



	Years Ended December 31,
	2019			2018			2017
	(in millions)
STATEMENTS OF OPERATIONS
Total revenue(1)	$	11,430		$	6,264		$	6,392
Total expenses(2)	(5,800		)	(3,222		)	(2,300		)
Net earnings (losses)	$	5,630		$	3,042		$	4,092
Equity in net earnings (losses) included above	$	525		$	233		$	409
Equity in net earnings (losses) of LP/LLC interests not included above	11			14			123
Total equity in net earnings (losses)	$	536		$	247		$	532

__________


(1)	Amount represents gross revenue of each fund where the Company has a significant investment. This revenue consists of income from investments in real estate, investments in securities and other income.


(2)	Amount represents gross expenses of each fund where the Company has a significant investment. These expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses.

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:



	Years Ended December 31,
	2019			2018			2017
	(in millions)
Fixed maturities, available-for-sale(1)	$	12,644		$	11,989		$	11,482
Fixed maturities, held-to-maturity(1)	232			226			215
Fixed maturities, trading	149			143			163
Assets supporting experience-rated contractholder liabilities, at fair value	731			722			736
Equity securities, at fair value	160			164			398
Commercial mortgage and other loans	2,584			2,352			2,267
Policy loans	619			622			617
Other invested assets	1,005			519			1,117
Short-term investments and cash equivalents	453			345			203
Gross investment income	18,577			17,082			17,198
Less: investment expenses	(992		)	(906		)	(763		)
Net investment income	$	17,585		$	16,176		$	16,435

__________


(1)	Includes income on credit-linked notes which are reported on the same financial statement line items as related surplus notes, as conditions are met for right to offset.

The carrying value of non-income producing assets included $204 million in available-for-sale fixed maturities; $27 million in assets supporting experience-rated contractholder liabilities and $1 million in investment real estate, as of December 31, 2019. Non-income producing assets represent investments that had not produced income for the twelve months preceding December 31, 2019.

Realized Investment Gains (Losses), Net

The following table sets forth “Realized investment gains (losses), net” by investment type, for the periods indicated:



	Years Ended December 31,
	2019			2018		2017
	(in millions)
Fixed maturities(1)	$	966		$	228	$	581
Equity securities(2)	0			0		1,066
Commercial mortgage and other loans	44			49		70
Investment real estate	78			84		12
LPs/LLCs	(38		)	17		(23		)
Derivatives	(1,513		)	1,597		(1,275		)
Other	4			2		1
Realized investment gains (losses), net	$	(459	)	$	1,977	$	432

__________


(1)	Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading.

(2)

Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income (loss).”

Net Unrealized Gains (Losses) on Investments within AOCI

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:



	December 31,
	2019			2018			2017
	(in millions)
Fixed maturity securities, available-for-sale—with OTTI	$	243		$	190		$	286
Fixed maturity securities, available-for-sale—all other	44,279			21,721			34,109
Equity securities, available-for-sale(1)	0			0			2,027
Derivatives designated as cash flow hedges(2)	832			811			(39		)
Other investments(3)	(15		)	(2		)	15
Net unrealized gains (losses) on investments	$	45,339		$	22,720		$	36,398

__________


(1)	Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income (loss).”


(2)	For more information on cash flow hedges, see Note 5.

(3)

As of December 31, 2019, there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.”

Repurchase Agreements and Securities Lending

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated:



	December 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies(1)	$	9,431	$	0	$	9,431	$	9,418	$	171	$	9,589
U.S. public corporate securities	0		0		0		19		0		19
Residential mortgage-backed securities(1)	250		0		250		342		0		342
Total securities sold under agreements to repurchase(1)(2)	$	9,681	$	0	$	9,681	$	9,779	$	171	$	9,950

__________


(1)	Prior period amounts have been updated to conform to current period presentation.


(2)	The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:



	December 31, 2019						December 31, 2018
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	9	$	0	$	9	$	105	$	0	$	105
Obligations of U.S. states and their political subdivisions	33		0		33		88		0		88
Foreign government bonds	244		0		244		325		0		325
U.S. public corporate securities	2,996		0		2,996		2,563		0		2,563
Foreign public corporate securities	762		0		762		693		0		693
Commercial mortgage-backed securities	2		0		2		0		0		0
Equity securities	167		0		167		155		0		155
Total cash collateral for loaned securities(1)	$	4,213	$	0	$	4,213	$	3,929	$	0	$	3,929

__________


(1)	The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.

Securities Pledged

The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. The following table sets forth the carrying value of investments pledged to third parties, as of the dates indicated:



	December 31,
	2019		2018
	(in millions)
Fixed maturities(1)	$	15,109	$	15,319
Fixed maturities, trading	58		0
Assets supporting experience-rated contractholder liabilities	22		123
Separate account assets	2,547		2,811
Equity securities	543		152
Other	445		0
Total securities pledged	$	18,724	$	18,405

__________


(1)	Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading.

The following table sets forth the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated:



	December 31,
	2019		2018
	(in millions)
Securities sold under agreements to repurchase	$	9,681	$	9,950
Cash collateral for loaned securities	4,213		3,929
Separate account liabilities	2,624		2,867
Total liabilities supported by the pledged collateral	$	16,518	$	16,746

In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities in customer accounts, securities purchased under agreements to resell and postings of collateral from OTC derivative counterparties. The fair value of this collateral was approximately $7,729 million as of December 31, 2019 (the largest components of which included $1,012 million of securities and $6,717 million of cash from OTC derivative counterparties) and $5,309 million as of December 31, 2018 (the largest components of which included $986 million of securities and $4,323 million of cash from OTC derivative counterparties). A portion of the aforementioned securities, for both periods, had either been sold or repledged.

Assets on Deposit, Held in Trust, and Restricted as to Sale

The following table provides assets on deposit, assets held in trust, and securities restricted as to sale, as of the dates indicated:



	December 31,
	2019		2018
	(in millions)
Assets on deposit with governmental authorities or trustees	$	30	$	27
Assets held in voluntary trusts(1)	58		609
Assets held in trust related to reinsurance and other agreements(2)	14,897		13,259
Securities restricted as to sale(3)	36		40
Total assets on deposit, assets held in trust and securities restricted as to sale	$	15,021	$	13,935

__________


(1)	Represents assets held in voluntary trusts established primarily to fund guaranteed dividends to certain policyholders and to fund certain employee benefits.


(2)	Represents assets held in trust related to reinsurance agreements excluding reinsurance agreements between wholly-owned subsidiaries. Assets valued at $21.7 billion and $16.1 billion were held in trust related to reinsurance agreements between wholly-owned subsidiaries as of December 31, 2019 and 2018, respectively.

(3)

Includes member and activity stock associated with memberships in the Federal Home Loan Banks of New York and Boston.