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Investments (Tables)
12 Months Ended
Dec. 31, 2018
Investment [Line Items]  
Investments by category
December 31, 2018December 31, 2017
(In millions)CurrentLong-termTotalCurrentLong-termTotal
Fixed Maturities$1,320$21,608$22,928$1,516$21,622$23,138
Equity securities377171548406182588
Commercial mortgage loans321,8261,858151,7461,761
Policy loans-1,4231,423-1,4151,415
Other long-term investments-1,9011,901-1,5181,518
Short-term investments316-316199-199
Total$2,045$26,929$28,974$2,136$26,483$28,619
Commercial mortgage loans by property type and geographic region
(In millions)20182017
Insurance customer receivables$1,888$1,818
Noninsurance customer receivables 4,988 441
Pharmaceutical manufacturers receivable(1)3,321645
Other receivables 276 251
Total accounts receivable, net$10,473$3,155
(1) Includes $406 million at December 31, 2018 and $336 million at December 31, 2017 of receivables under noninsurance customer contracts.
Other long-term investments
Unfunded
Carrying value as of December 31,Commitments as of
(In millions)20182017December 31, 2018
Real estate investments$679$591$376
Securities partnerships1,0458631,063
Other1776433
Total$1,901$1,518$1,472
Schedule of short-term investments and cash equivalents
December 31,December 31,
(In millions)20182017
Corporate securities$581$1,143
Federal government securities$82$604
Foreign government securities$238$159
Money market funds$1,174$12
Schedule of derivative instruments
(In millions)Notional Value as of December 31,
Type of InstrumentPurpose20182017
Foreign currency swap contractsFair value hedge: To hedge the foreign exchange-related changes in fair values of certain fixed maturity foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds.$525$318
Foreign currency swap contractsNet investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in Euros. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. $439$-
Foreign currency forward contractsEconomic hedge: To hedge the foreign exchange related changes in fair values of a U.S. dollar-denominated fixed maturity bond portfolio to reflect the local currency for the Company‘s foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged bond portfolio.$309$255
Components of pre-tax net investment income
(In millions)201820172016
Fixed maturities$1,009$946$899
Equity securities28144
Commercial mortgage loans788191
Policy loans706972
Other long-term investments15612498
Short-term investments and cash1944226
Total investment income1,5351,2761,190
Less investment expenses555043
Net investment income$1,480$1,226$1,147
Realized gains and losses on investments
(In millions)201820172016
Net realized investment (losses) gains, excluding investment asset write-downs $ (34) $ 268 $ 227
Write-downs on debt securities(43)(26)(35)
Write-downs on other invested assets(4)(5)(23)
Net realized investment (losses) gains, before income taxes$(81)$237$169
Sales information for available-for-sale fixed maturities and equity securities
(In millions)201820172016
Proceeds from sales $ 2,625 $ 2,012 $ 1,544
Gross gains on sales$28$103$83
Gross losses on sales $ (47) $ (18) $ (7)
Fixed maturities [Member]  
Investment [Line Items]  
Investment maturities
Amortized Fair
(In millions)CostValue
Due in one year or less$1,323$1,327
Due after one year through five years6,4526,522
Due after five years through ten years10,2059,992
Due after ten years4,0644,577
Mortgage and other asset-backed securities506510
Total$22,550$22,928
Gross unrealized appreciation (depreciation) on fixed maturities
AmortizedUnrealizedUnrealizedFair
(In millions)CostAppreciationDepreciationValue
December 31, 2018
Federal government and agency$507 $ 204 $ (1) $ 710
State and local government92066(1)985
Foreign government2,214155(7)2,362
Corporate18,403411(453)18,361
Mortgage and other asset-backed50616(12)510
Total$22,550$852$(474)$22,928
Investments supporting liabilities of the Company‘s run-off settlement annuity business (included in total above) (1)$2,264 $ 479 $ (40) $ 2,703
December 31, 2017
Federal government and agency$541 $ 239 $ (1)$779
State and local government1,19693(2)1,287
Foreign government2,360142(15)2,487
Corporate17,301868(81)18,088
Mortgage and other asset-backed46929(1)497
Total$21,867$1,371$(100)$23,138
Investments supporting liabilities of the Company‘s run-off settlement annuity business (included in total above) (1)$2,200 $ 681 $ (2)$2,879
(1) Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
Fixed maturities with a decline in fair value from amortized cost
December 31, 2018December 31, 2017
Fair Amortized UnrealizedNumberFair Amortized UnrealizedNumber
(Dollars in millions)ValueCostDepreciationof IssuesValueCostDepreciationof Issues
One year or less
Investment grade$7,127$7,367$(240)1,324$3,272$3,309$(37)797
Below investment grade$1,185$1,240$(55)1,190$543$553$(10)643
More than one year
Investment grade$3,023$3,181$(158)784$1,503$1,549$(46)373
Below investment grade$249$270$(21)245$155$162$(7)42
Commercial mortgage loans [Member]  
Investment [Line Items]  
Credit risk profile of commercial mortgage loan portfolio
(Dollars in millions)20182017
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$1,1322.14 $ 1,1092.03
60% to 79%6501.93 6522.24
80% to 100%761.49--
Total$1,8582.0458%$1,7612.1157%