The following total realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business:

	Three Months Ended
	March 31,
(In millions)	2014		2013
Fixed maturities	$	8	$	67
Equity securities		17		3
Real estate		13		-
Other investments, including derivatives		4		69
Realized investment gains before income taxes		42		139
Less income taxes		15		46
Net realized investment gains	$	27	$	93

Included in the above realized investment gains (losses) before income taxes were asset write-downs as follows:

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at March 31, 2014:

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,093	$	1,112
Due after one year through five years		5,439		5,829
Due after five years through ten years		5,909		6,253
Due after ten years		2,794		3,427
Mortgage and other asset-backed securities		921		1,029
Total	$	16,156	$	17,650

Actual maturities of these securities could differ from their contractual maturities used in the table above. This could occur because issuers may have the right to call or prepay obligations, with or without penalties, or because in certain cases the Company may have the option to unilaterally extend the contractual maturity date.

Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.


				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	March 31, 2014
Federal government and agency	$	835	$	294	$	(1)	$	1,128
State and local government		1,922		178		(4)		2,096
Foreign government		1,517		74		(8)		1,583
Corporate		10,962		888		(36)		11,814
Federal agency mortgage-backed		71		-		-		71
Other mortgage-backed		78		4		(2)		80
Other asset-backed		771		107		-		878
Total	$	16,156	$	1,545	$	(51)	$	17,650

(In millions)	December 31, 2013
Federal government and agency	$	640	$	242	$	(2)	$	880
State and local government		1,983		167		(6)		2,144
Foreign government		1,392		64		(12)		1,444
Corporate		10,301		749		(74)		10,976
Federal agency mortgage-backed		77		-		(1)		76
Other mortgage-backed		76		3		(2)		77
Other asset-backed		798		87		(2)		883
Total	$	15,267	$	1,312	$	(99)	$	16,480

The above table includes investments with a fair value of $2.8 billion supporting the Company's run-off settlement annuity business, with gross unrealized appreciation of $613 million and gross unrealized depreciation of $8 million at March 31, 2014. Such unrealized amounts are required to support the future policy benefit liabilities of this business and, as such, are not included in accumulated other comprehensive income. At December 31, 2013, investments supporting this business had a fair value of $2.6 billion, gross unrealized appreciation of $478 million and gross unrealized depreciation of $20 million.

Included in equity securities are hybrid investments consisting of preferred stock with call features. These securities are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income. As of March 31, 2014, fair values of these securities were $50 million, and amortized cost was $60 million. As of December 31, 2013, fair values of these securities were $56 million, and amortized cost was $68 million.

Sales information for available-for-sale fixed maturities and equity securities was as follows:

Review of declines in fair value. Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

As of March 31, 2014, fixed maturities with a decline in fair value from amortized cost (primarily corporate securities) were, by length of time of decline, as follows:

(Dollars in millions)	March 31, 2014

	Fair		Amortized		Unrealized		Number
(In millions)	Value		Cost		Depreciation		of Issues
Fixed maturities:
One year or less:
Investment grade	$	1,389	$	1,418	$	(29)	416
Below investment grade	$	205	$	208	$	(3)	132
More than one year:
Investment grade	$	254	$	270	$	(16)	72
Below investment grade	$	33	$	36	$	(3)	11

The unrealized depreciation of investment grade fixed maturities is due primarily to increases in market yields since purchase. There were no equity securities with a fair value significantly lower than cost as of March 31, 2014.

Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at a fixed rate of interest and are secured by high quality, primarily completed and substantially leased operating properties.

Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at each loan's origination that is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics. However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios. The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments. The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan.

The following tables summarize the credit risk profile of the Company's commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios, as of March 31, 2014 and December 31, 2013:

(In millions)				March 31, 2014
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	270	$	-	$	-	$	6	$	-	$	276
50% to 59%		579		131		-		18		-		728
60% to 69%		436		97		-		-		24		557
70% to 79%		34		32		34		-		-		100
80% to 89%		65		42		-		27		143		277
90% to 99%		-		-		58		50		79		187
100% or above		-		-		-		-		-		-
Total	$	1,384	$	302	$	92	$	101	$	246	$	2,125

(In millions)					December 31, 2013
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
Below 50%	$	314	$	-	$	-	$	6	$	-	$	320
50% to 59%		581		131		-		18		-		730
60% to 69%		438		16		29		-		24		507
70% to 79%		79		113		-		-		-		192
80% to 89%		65		42		34		28		143		312
90% to 99%		-		-		58		50		67		175
100% or above		-		-		-		-		16		16
Total	$	1,477	$	302	$	121	$	102	$	250	$	2,252

The Company's annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio. The most recent review was completed by the Company's investment professionals in the second quarter of 2013 and included an analysis of each underlying property's most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors. Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value, and categorizes the investments as loans in good standing, potential problem loans or problem loans. Based on property valuations and cash flows estimated as part of this review, and considering updates for loans where material changes were subsequently identified, the portfolio's average loan-to-value ratio was 64% at March 31, 2014, the same as it was on December 31, 2013. The portfolio's average debt service coverage ratio was estimated to be 1.60 at March 31, 2014, down slightly from 1.62 at December 31, 2013.

Quality ratings are adjusted between annual reviews if new property information is received or an event such as delinquency or a borrower's request for restructure causes management to believe that the Company's estimate of financial performance, fair value or the risk profile of the underlying property has been impacted.

During 2013, the Company restructured its subordinate interest in two cross-collateralized pools of industrial loans totaling $31 million by extending the maturity dates and reducing the interest rates. This modification was considered a troubled debt restructuring and the loans were classified as problem mortgage loans because the borrower was experiencing financial difficulties and an interest rate concession was granted. No valuation reserves were required because the fair values of the underlying properties exceeded the carrying values of the outstanding loans.

Certain other loans were modified during the three months ended March 31, 2014 and the twelve months ended December 31, 2013. However, these were not considered troubled debt restructures and the impact of such modifications was not material to the Company's results of operations, financial condition or liquidity.

Potential problem mortgage loans are considered current (no payment more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default. The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring. In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days. Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date. The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Problem and potential problem mortgage loans, net of valuation reserves, totaled $213 million at March 31, 2014 and $158 million at December 31, 2013. At March 31, 2014 and December 31, 2013, mortgage loans located in the South Atlantic region represented the most significant component of problem and potential problem mortgage loans, while loans collateralized by industrial properties represented the most significant concentration by property type.

Impaired commercial mortgage loans. A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due (principal and interest) according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans. The Company assesses each loan individually for impairment, using the information obtained from the quality review process discussed above. Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate. In some cases when it is probable that the Company will not collect the interest due under the original agreements, the loan will be considered impaired but a related valuation reserve will not be recorded because the fair value of the underlying real estate is higher than the remaining carrying value of the loan.

The carrying value of the Company's impaired commercial mortgage loans and related valuation reserves were as follows:

(In millions)		March 31, 2014					December 31, 2013
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	89	$	(8)	$	81	$	89	$	(8)	$	81
Impaired commercial mortgage loans with no valuation reserves		31		-		31		31		-		31
Total	$	120	$	(8)	$	112	$	120	$	(8)	$	112

The average recorded investment in impaired loans was $120 million during the three months ended March 31, 2014 and $132 million during the three months ended March 31, 2013. Because of the risk profile of the underlying investment, the Company recognizes interest income on problem mortgage loans only when payment is actually received. Interest income that would have been reflected in net income if interest on non-accrual commercial mortgage loans had been received in accordance with the original terms was not significant for the three months ended March 31, 2014 or 2013. Interest income on impaired commercial mortgage loans was not significant for the three months ended March 31, 2014 or 2013.

There were no changes in valuation reserves for commercial mortgage loans for the three months ended March 31, 2014 or 2013.

Short-term investments and cash equivalents include corporate securities of $1.4 billion, federal government securities of $353 million and money market funds of $30 million as of March 31, 2014. The Company's short-term investments and cash equivalents as of December 31, 2013 included corporate securities of $2.2 billion, federal government securities of $323 million and money market funds of $35 million.