INVESTMENT SECURITIES

Substantially all of our investment securities are classified as available-for-sale and comprise mainly investment-grade debt securities supporting obligations to annuitants and policyholders in our run-off insurance operations. We do not have any securities classified as held-to-maturity.



	September 30, 2017									December 31, 2016
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value (a)		Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value (a)

Debt
U.S. corporate	$	20,255	$	3,594	$	(45	)	$	23,804	$	20,049	$	3,081	$	(85	)	$	23,046
Non-U.S. corporate	5,615		84		(13		)	5,686		11,917		98		(27		)	11,987
State and municipal	3,827		506		(49		)	4,284		3,916		412		(92		)	4,236
Mortgage and asset-backed	2,808		97		(19		)	2,886		2,787		111		(37		)	2,861
Government and agencies	1,769		74		(10		)	1,833		1,842		160		(26		)	1,976
Equity (b)	191		13		—			204		154		55		(1		)	208
Total	$	34,464	$	4,368	$	(136	)	$	38,696	$	40,665	$	3,917	$	(269	)	$	44,313


(a)	Included $384 million and $137 million of investment securities held by GE at September 30, 2017 and December 31, 2016, respectively, of which $149 million and $86 million are equity securities.


(b)	Estimated fair values included $107 million and $17 million of trading securities at September 30, 2017 and December 31, 2016, respectively. Net unrealized gains (losses) recorded to earnings related to these securities were $12 million and $1 million for the three months ended and $41 million and $(2) million for the nine months ended September 30, 2017 and 2016, respectively.

Investments with a fair value of $4,452 million and $4,406 million were classified within Level 3 (significant inputs to the valuation model are unobservable) at September 30, 2017 and December 31, 2016, respectively. The remaining investments are substantially all classified within Level 2 (determined based on significant observable inputs). During the nine months ended September 30, 2017 and 2016, there were no significant transfers into or out of Level 3.



ESTIMATED FAIR VALUE AND GROSS UNREALIZED LOSSES OF AVAILABLE-FOR-SALE INVESTMENT SECURITIES
	In loss position for
	Less than 12 months					12 months or more
(In millions)	Estimated fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses

September 30, 2017
Debt
U.S. corporate	$	681	$	(17	)	$	530	$	(28	)
Non-U.S. corporate	581		(4		)	3,591		(9		)
State and municipal	125		(2		)	270		(47		)
Mortgage and asset-backed	821		(9		)	227		(9		)
Government and agencies	593		(9		)	257		(1		)
Equity	3		—			—		—
Total	$	2,805	$	(41	)	$	4,874	$	(95	)

December 31, 2016
Debt
U.S. corporate	$	1,692	$	(55	)	$	359	$	(30	)
Non-U.S. corporate	5,352		(26		)	14		(1		)
State and municipal	674		(27		)	158		(64		)
Mortgage and asset-backed	822		(21		)	132		(16		)
Government and agencies	549		(26		)	—		—
Equity	9		(1		)	—		—
Total	$	9,098	$	(157	)	$	663	$	(111	)

Unrealized losses are not indicative of the amount of credit loss that would be recognized and at September 30, 2017 are primarily due to increases in market yields subsequent to our purchase of the securities. We presently do not intend to sell the vast majority of our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell the vast majority of these securities before anticipated recovery of our amortized cost. The methodologies and significant inputs used to measure the amount of credit loss for our investment securities during 2017 have not changed.

Total pre-tax, other-than-temporary impairments on investment securities recognized in earnings were an insignificant amount and $28 million for the nine months ended September 30, 2017 and 2016, respectively.



CONTRACTUAL MATURITIES OF INVESTMENT IN AVAILABLE-FOR-SALE DEBT SECURITIES
(EXCLUDING MORTGAGE AND ASSET-BACKED SECURITIES)

(In millions)	Amortized cost		Estimated fair value

Due
Within one year	$	5,342	$	5,344
After one year through five years	3,577		3,796
After five years through ten years	5,639		6,171
After ten years	16,994		20,395

We expect actual maturities to differ from contractual maturities because borrowers have the right to call or prepay certain obligations.

Although we generally do not have the intent to sell any specific securities at the end of the period, in the ordinary course of managing our investment securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield and liquidity requirements and the funding of claims and obligations to policyholders. Gross realized gains on available-for-sale investment securities were $54 million and $7 million, and gross realized losses were $(5) million and $(12) million in the three months ended September 30, 2017 and 2016, respectively. Gross realized gains on available-for-sale investment securities were $197 million and $49 million, and gross realized losses were $(9) million and $(52) million in the nine months ended September 30, 2017 and 2016, respectively.

Proceeds from investment securities sales and early redemptions by issuers totaled $659 million and $416 million in the three months ended September 30, 2017 and 2016, respectively primarily from sales of U.S. Corporate and Mortgage and asset-backed securities and $2,433 million and $1,283 million in the nine months ended September 30, 2017 and 2016, respectively primarily from sales of U.S. corporate securities and Government and agencies.