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Investments (Tables)
 12 Months Ended
Dec. 31, 2014
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
 
 
Gains
 
Losses
 
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

 
 
 
 
 
 
 
 
December 31, 2013
 

 
 

 
 

 
 

U.S. government and agencies
$
678

 
$
90

 
$
(2
)
 
$
766

Municipal
3,135

 
231

 
(62
)
 
3,304

Corporate
20,397

 
1,214

 
(295
)
 
21,316

Foreign government
715

 
83

 
(6
)
 
792

ABS
1,011

 
30

 
(34
)
 
1,007

RMBS
752

 
50

 
(12
)
 
790

CMBS
724

 
47

 
(7
)
 
764

Redeemable preferred stock
15

 
2

 
—

 
17

Total fixed income securities
$
27,427

 
$
1,747

 
$
(418
)
 
$
28,756
Schedule for fixed income securities based on contractual maturities
The scheduled maturities for fixed income securities are as follows as of December 31, 2014:
 
($ in millions)
Amortized
cost
 
Fair
value
Due in one year or less
$
1,338

 
$
1,359

Due after one year through five years
5,196

 
5,614

Due after five years through ten years
9,950

 
10,475

Due after ten years
7,473

 
8,720

 
23,957

 
26,168

ABS, RMBS and CMBS
1,865

 
1,949

Total
$
25,822

 
$
28,117
Schedule of net investment income
Net investment income for the years ended December 31 is as follows:
($ in millions)
2014
 
2013
 
2012
Fixed income securities
$
1,522

 
$
1,947

 
$
2,084

Mortgage loans
242

 
345

 
345

Equity securities
20

 
12

 
9

Limited partnership interests
267

 
175

 
159

Short-term investments
2

 
2

 
2

Policy loans
39

 
49

 
51

Other
59

 
63

 
61

Investment income, before expense
2,151

 
2,593

 
2,711

Investment expense
(70
)
 
(108
)
 
(114
)
Net investment income
$
2,081

 
$
2,485

 
$
2,597
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)
2014
 
2013
 
2012
Fixed income securities
$
(4
)
 
$
3

 
$
(62
)
Mortgage loans
2

 
20

 
8

Equity securities
134

 
45

 
—

Limited partnership interests
(4
)
 
(6
)
 
—

Derivatives
12

 
14

 
34

Other
3

 
—

 
4

Realized capital gains and losses
$
143

 
$
76

 
$
(16
)
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)
2014
 
2013
 
2012
Impairment write-downs
$
(11
)
 
$
(33
)
 
$
(51
)
Change in intent write-downs
(44
)
 
(19
)
 
(17
)
Net other-than-temporary impairment losses recognized in earnings
(55
)
 
(52
)
 
(68
)
Sales
184

 
114

 
17

Valuation and settlements of derivative instruments
14

 
14

 
35

Realized capital gains and losses
$
143

 
$
76

 
$
(16
)
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)
2014
 
2013
 
2012
 
 
 
Included
in OCI
 
 
 
 
 
Included
in OCI
 
 
 
 
 
Included
in OCI
 
 
 
Gross
 
 
Net
 
Gross
 
 
Net
 
Gross
 
 
Net
Fixed income securities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Municipal
$
(1
)
 
$
—

 
$
(1
)
 
$
(8
)
 
$
—

 
$
(8
)
 
$
—

 
$
—

 
$
—

Corporate
(4
)
 
—

 
(4
)
 
—

 
—

 
—

 
(16
)
 
(2
)
 
(18
)
ABS
(5
)
 
—

 
(5
)
 
—

 
(2
)

(2
)
 
—

 
—

 
—

RMBS
2

 
(1
)
 
1

 
(2
)
 
2

 
—

 
(23
)
 
(9
)
 
(32
)
CMBS
(1
)
 
—

 
(1
)
 
(32
)
 
(3
)
 
(35
)
 
(22
)
 
3

 
(19
)
Total fixed income securities
(9
)
 
(1
)
 
(10
)
 
(42
)
 
(3
)
 
(45
)
 
(61
)
 
(8
)
 
(69
)
Mortgage loans
5

 
—

 
5

 
11

 
—

 
11

 
5

 
—

 
5

Equity securities
(32
)
 
—

 
(32
)
 
(6
)
 
—

 
(6
)
 
(1
)
 
—

 
(1
)
Limited partnership interests
(18
)
 
—

 
(18
)
 
(9
)
 
—

 
(9
)
 
(3
)
 
—

 
(3
)
Other
—

 
—

 
—

 
(3
)
 
—

 
(3
)
 
—

 
—

 
—

Other-than-temporary impairment losses
$
(54
)
 
$
(1
)
 
$
(55
)
 
$
(49
)
 
$
(3
)
 
$
(52
)
 
$
(60
)
 
$
(8
)
 
$
(68
)
Schedule of other-than-temporary impairment losses on fixed income securities included in accumulated other comprehensive income
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 and $164 million as of December 31, 2014 and 2013, 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, 2014
 
December 31, 2013
Municipal
$
(5
)
 
$
(5
)
ABS
(1
)
 
(10
)
RMBS
(55
)
 
(90
)
CMBS
(5
)
 
(12
)
Total
$
(66
)
 
$
(117
)
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)
2014
 
2013
 
2012
Beginning balance
$
(299
)
 
$
(345
)
 
$
(581
)
Additional credit loss for securities previously other-than-temporarily impaired
(6
)
 
(13
)
 
(33
)
Additional credit loss for securities not previously other-than-temporarily impaired
(9
)
 
(19
)
 
(20
)
Reduction in credit loss for securities disposed or collected
44

 
75

 
288

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

 
1

 
1

Reduction in credit loss for securities sold in LBL disposition
59

 
—

 
—

Ending balance (1)
$
(209
)
 
$
(299
)
 
$
(345
)
____________
(1) The December 31, 2013 ending balance includes $60 million of cumulative credit losses recognized in earnings for fixed income securities that are classified as held for sale.
Schedule of unrealized net capital gains and losses included in accumulated other comprehensive income
Unrealized net capital gains and losses included in accumulated other comprehensive income are as follows: 
($ in millions)
Fair value
 
Gross unrealized
 
Unrealized net gains (losses)
December 31, 2014
 
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)
 

 
 

 
 

 
(2
)
Unrealized net capital gains and losses, pre-tax
 

 
 

 
 

 
2,338

Amounts recognized for:
 

 
 

 
 

 
 

Insurance reserves (3)
 

 
 

 
 

 
(28
)
DAC and DSI (4)
 

 
 

 
 

 
(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 $1 million classified as liabilities.
(2) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.
(3) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency.  Although the Company evaluates premium deficiencies on the combined performance of life insurance and immediate annuities with life contingencies, the adjustment primarily relates to structured settlement annuities with life contingencies, in addition to annuity buy-outs and certain payout annuities with life contingencies.
(4) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
($ in millions)
Fair value
 
Gross unrealized
 
Unrealized net gains (losses)
December 31, 2013
 
Gains
 
Losses
 
Fixed income securities
$
28,756

 
$
1,747

 
$
(418
)
 
$
1,329

Equity securities
650

 
90

 
(5
)
 
85

Short-term investments
590

 
—

 
—

 
—

Derivative instruments (1)
(13
)
 
1

 
(14
)
 
(13
)
EMA limited partnerships
 

 
 

 
 

 
(2
)
Investments classified as held for sale
 
 
 
 
 
 
190

Unrealized net capital gains and losses, pre-tax
 

 
 

 
 

 
1,589

Amounts recognized for:
 

 
 

 
 

 
 

Insurance reserves
 

 
 

 
 

 
—

DAC and DSI
 

 
 

 
 

 
(156
)
Amounts recognized
 

 
 

 
 

 
(156
)
Deferred income taxes
 

 
 

 
 

 
(506
)
Unrealized net capital gains and losses, after-tax
 

 
 

 
 

 
$
927

____________
(1) 
Included in the fair value of derivative instruments are $1 million classified as assets and $14 million classified as liabilities.
Schedule of change in unrealized net capital gains and losses
The change in unrealized net capital gains and losses for the years ended December 31 is as follows: 
($ in millions)
2014
 
2013
 
2012
Fixed income securities
$
966

 
$
(2,353
)
 
$
1,735

Equity securities
(42
)
 
50

 
(1
)
Derivative instruments
15

 
4

 
(5
)
EMA limited partnerships
—

 
(3
)
 
—

Investments classified as held for sale
(190
)
 
190

 
—

Total
749

 
(2,112
)
 
1,729

Amounts recognized for:
 

 
 

 
 

Insurance reserves
(28
)
 
771

 
(177
)
DAC and DSI
(20
)
 
252

 
(288
)
Amounts recognized
(48
)
 
1,023

 
(465
)
Deferred income taxes
(246
)
 
382

 
(443
)
Increase (decrease) in unrealized net capital gains and losses, after-tax
$
455

 
$
(707
)
 
$
821
Summary of gross unrealized losses and fair value of fixed income and equity securities by length of time
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
 
 
 
 
 
 
 
 
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
)
Redeemable preferred stock
—

 
—

 
—

 
—

 
—

 
—

 
—

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
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
4

 
$
76

 
$
(2
)
 
—

 
$
—

 
$
—

 
$
(2
)
Municipal
63

 
347

 
(24
)
 
21

 
99

 
(38
)
 
(62
)
Corporate
530

 
5,191

 
(224
)
 
48

 
467

 
(71
)
 
(295
)
Foreign government
7

 
76

 
(4
)
 
1

 
13

 
(2
)
 
(6
)
ABS
17

 
162

 
(1
)
 
42

 
400

 
(33
)
 
(34
)
RMBS
35

 
42

 
(2
)
 
47

 
129

 
(10
)
 
(12
)
CMBS
5

 
14

 
—

 
6

 
52

 
(7
)
 
(7
)
Redeemable preferred stock
—

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
661

 
5,908

 
(257
)
 
165

 
1,160

 
(161
)
 
(418
)
Equity securities
25

 
80

 
(5
)
 
—

 
—

 
—

 
(5
)
Total fixed income and equity securities
686

 
$
5,988

 
$
(262
)
 
165

 
$
1,160

 
$
(161
)
 
$
(423
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade fixed income securities
526

 
$
5,272

 
$
(236
)
 
110

 
$
834

 
$
(112
)
 
$
(348
)
Below investment grade fixed income securities
135

 
636

 
(21
)
 
55

 
326

 
(49
)
 
(70
)
Total fixed income securities
661

 
$
5,908

 
$
(257
)
 
165

 
$
1,160

 
$
(161
)
 
$
(418
)
Principal geographic distribution of commercial real estate represented in the mortgage portfolio
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)
2014
 
2013
California
24.8
%
 
24.0
%
Illinois
9.2

 
9.7

New Jersey
8.3

 
7.2

Texas
7.7

 
6.3

New York
6.0

 
6.2

Florida
4.7

 
5.2

District of Columbia
2.0

 
5.4
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)
2014
 
2013
Office buildings
25.6
%
 
28.3
%
Retail
24.1

 
22.9

Apartment complex
20.0

 
19.2

Warehouse
18.1

 
18.6

Other
12.2

 
11.0

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, 2014 are as follows:
($ in millions)
Number
of loans
 
Carrying
value
 
Percent
2015
21

 
$
236

 
6.4
%
2016
27

 
217

 
5.9

2017
35

 
395

 
10.7

2018
30

 
345

 
9.4

Thereafter
185

 
2,493

 
67.6

Total
298

 
$
3,686

 
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)
2014
 
2013
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
$
110

 
$
—

 
$
110

 
$
153

 
$
—

 
$
153

1.0 - 1.25
387

 
—

 
387

 
560

 
—

 
560

1.26 - 1.50
1,118

 
1

 
1,119

 
1,167

 
2

 
1,169

Above 1.50
2,054

 
—

 
2,054

 
2,176

 
38

 
2,214

Total non-impaired mortgage loans
$
3,669

 
$
1

 
$
3,670

 
$
4,056

 
$
40

 
$
4,096
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)
2014
 
2013
Impaired mortgage loans with a valuation allowance
$
16

 
$
77

Impaired mortgage loans without a valuation allowance
—

 
—

Total impaired mortgage loans
$
16

 
$
77

Valuation allowance on impaired mortgage loans
$
8

 
$
21
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)
2014
 
2013
 
2012
Beginning balance
$
21

 
$
42

 
$
63

Net decrease in valuation allowance
(5
)
 
(11
)
 
(5
)
Charge offs
(8
)
 
(8
)
 
(16
)
Mortgage loans classified as held for sale
—

 
(2
)
 
—

Ending balance
$
8

 
$
21

 
$
42
Schedule of carrying value of past due mortgage loans
Payments on all mortgage loans were current as of December 31, 2014 and 2013.
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)
2014
 
2013
California
17.0
%
 
15.9
%
Texas
13.6

 
13.5

Oregon
5.8

 
5.4

Illinois
5.3

 
5.1

New Jersey
5.1

 
5.2

New York
4.9

 
5.2