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INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]  
Available-for-sale Securities by Classification
The following table provides information relating to fixed maturities and equity securities classified as AFS:
Available-for-Sale Securities by Classification 
 
Amortized
Cost
 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 
Fair
Value
 
OTTI
in AOCI (3)
 
(In Millions)
June 30, 2017:
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
Public corporate
$
12,530

 
$
745

 
$
45

 
$
13,230

 
$
—

Private corporate
7,075

 
256

 
44

 
7,287

 
—

U.S. Treasury, government and agency
10,756

 
479

 
386

 
10,849

 
—

States and political subdivisions
419

 
66

 
1

 
484

 
—

Foreign governments
343

 
30

 
6

 
367

 
—

Commercial mortgage-backed
329

 
10

 
36

 
303

 
4

Residential mortgage-backed(1)
264

 
17

 
—

 
281

 
—

Asset-backed(2)
38

 
3

 
1

 
40

 
3

Redeemable preferred stock
485

 
53

 
1

 
537

 
—

Total Fixed Maturities
32,239

 
1,659

 
520

 
33,378

 
7

Equity securities
132

 
—

 
—

 
132

 
—

Total at June 30, 2017
$
32,371

 
$
1,659

 
$
520

 
$
33,510

 
$
7

December 31, 2016:
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
Public corporate
$
12,418

 
$
675

 
$
81

 
$
13,012

 
$
—

Private corporate
6,880

 
215

 
55

 
7,040

 
—

U.S. Treasury, government and agency
10,739

 
221

 
624

 
10,336

 
—

States and political subdivisions
432

 
63

 
2

 
493

 
—

Foreign governments
375

 
29

 
14

 
390

 
—

Commercial mortgage-backed
415

 
28

 
72

 
371

 
7

Residential mortgage-backed(1)
294

 
20

 
—

 
314

 
—

Asset-backed(2)
51

 
10

 
1

 
60

 
3

Redeemable preferred stock
519

 
45

 
10

 
554

 
—

Total Fixed Maturities
32,123

 
1,306

 
859

 
32,570

 
10

Equity securities
113

 
—

 
—

 
113

 
—

Total at December 31, 2016
$
32,236

 
$
1,306

 
$
859

 
$
32,683

 
$
10

 
(1)
Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(2)
Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.
(3)
Amounts represent OTTI losses in AOCI, which were not included in earnings (loss) in accordance with current accounting guidance.
Available-for-sale Securities Fixed Maturities Contractual Maturities
The contractual maturities of AFS fixed maturities at June 30, 2017 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Available-for-Sale Fixed Maturities
Contractual Maturities at June 30, 2017 
 
Amortized
Cost
 
Fair Value
 
(In Millions)
Due in one year or less
$
1,778

 
$
1,801

Due in years two through five
7,379

 
7,733

Due in years six through ten
9,315

 
9,557

Due after ten years
12,651

 
13,126

Subtotal
31,123

 
32,217

Commercial mortgage-backed securities
329

 
303

Residential mortgage-backed securities
264

 
281

Asset-backed securities
38

 
40

Redeemable preferred stock
485

 
537

Total
$
32,239

 
$
33,378
Proceeds from Sales, Gross Gains (Losses) and OTTI for AFS Fixed Maturities
The following table shows proceeds from sales, gross gains (losses) from sales and OTTI for AFS fixed maturities during the second quarter and first six months of 2017 and 2016:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(In Millions)
Proceeds from sales
$
121

 
$
1,397

 
$
535

 
$
1,786

Gross gains on sales
$
10

 
$
66

 
$
29

 
$
85

Gross losses on sales
$
(7
)
 
$
(25
)
 
$
(27
)
 
$
(46
)
Total OTTI
$
(13
)
 
$
(8
)
 
$
(13
)
 
$
(25
)
Non-credit losses recognized in OCI
—

 
—

 
—

 
—

Credit losses recognized in earnings (loss)
$
(13
)
 
$
(8
)
 
$
(13
)
 
$
(25
)
Fixed Maturities - Credit Loss Impairments
The following table sets forth the amount of credit loss impairments on fixed maturity securities held by the Company at the dates indicated and the corresponding changes in such amounts.

Fixed Maturities - Credit Loss Impairments 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(In Millions)
Balances, beginning of period
$
(147
)
 
$
(181
)
 
$
(190
)
 
$
(198
)
Previously recognized impairments on securities that matured, paid, prepaid or sold
45

 
23

 
88

 
57

Recognized impairments on securities impaired to fair value this period(1)
—

 
—

 
—

 
(17
)
Impairments recognized this period on securities not previously impaired
(13
)
 
(8
)
 
(13
)
 
(8
)
Additional impairments this period on securities previously impaired
—

 
—

 
—

 
—

Increases due to passage of time on previously recorded credit losses
—

 
—

 
—

 
—

Accretion of previously recognized impairments due to increases in expected cash flows
—

 
—

 
—

 
—

Balances at June 30,
$
(115
)
 
$
(166
)
 
$
(115
)
 
$
(166
)
(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.
Net Unrealized Gain (Loss) on Fixed Maturities and Equity Securities Included in AOCI
Net unrealized investment gains (losses) on fixed maturities and equity securities classified as AFS are included in the consolidated balance sheets as a component of AOCI. The table below presents these amounts as of the dates indicated:
 
June 30,
2017
 
December 31, 2016
 
(In Millions)
AFS Securities:
 
 
 
Fixed maturities:
 
 
 
With OTTI loss
$
(6
)
 
$
19

All other
1,145

 
428

Equity securities
—

 
—

Net Unrealized Gains (Losses)
$
1,139

 
$
447
Net Unrealized Gain (Losses) on Fixed Maturities with OTTI Losses
The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturity securities on which an OTTI loss has been recognized and all other amounts:

Net Unrealized Gains (Losses) on Fixed Maturities with OTTI Losses

 
Net
Unrealized
Gains
(Losses) on
Investments
 
DAC
 
Policyholders’
Liabilities
 
Deferred
Income
Tax Asset
(Liability)
 
AOCI Gain
(Loss) Related
to Net
Unrealized
Investment
Gains (Losses)
 
(In Millions)
Balance, April 1, 2017
$
20

 
$
—

 
$
(5
)
 
$
(5
)
 
$
10

Net investment gains (losses) arising during the period
(44
)
 
—

 
—

 
—

 
(44
)
Reclassification adjustment:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
18

 
—

 
—

 
—

 
18

Excluded from Net earnings (loss)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
2

 
—

 
—

 
2

Deferred income taxes
—

 
—

 
—

 
6

 
6

Policyholders’ liabilities
—

 
—

 
6

 
—

 
6

Balance, June 30, 2017
$
(6
)
 
$
2

 
$
1

 
$
1

 
$
(2
)
Balance, April 1, 2016
$
9

 
$
—

 
$
—

 
$
(4
)
 
$
5

Net investment gains (losses) arising during the period
(17
)
 
—

 
—

 
—

 
(17
)
Reclassification adjustment:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
23

 
—

 
—

 
—

 
23

Excluded from Net earnings (loss)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
—

 
—

 
—

 
—

Deferred income taxes
—

 
—

 
—

 
(2
)
 
(2
)
Policyholders’ liabilities
—

 
—

 
—

 
—

 
—

Balance, June 30, 2016
$
15

 
$
—

 
$
—

 
$
(6
)
 
$
9


 
 
Net
Unrealized
Gains
(Losses) on
Investments
 
DAC
 
Policyholders’
Liabilities
 
Deferred
Income
Tax Asset
(Liability)
 
AOCI Gain
(Loss) Related
to Net
Unrealized
Investment
Gains (Losses)
 
(In Millions)
Balance, January 1, 2017
$
19

 
$
(1
)
 
$
(10
)
 
$
(3
)
 
$
5

Net investment gains (losses) arising during the period
5

 
—

 
—

 
—

 
5

Reclassification adjustment for OTTI losses:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
(30
)
 
—

 
—

 
—

 
(30
)
Excluded from Net earnings (loss)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
3

 
—

 
—

 
3

Deferred income taxes
—

 
—

 
—

 
4

 
4

Policyholders’ liabilities
—

 
—

 
11

 
—

 
11

Balance, June 30, 2017
$
(6
)
 
$
2

 
$
1

 
$
1

 
$
(2
)
Balance, January 1, 2016
$
16

 
$
—

 
$
(4
)
 
$
(5
)
 
$
7

Net investment gains (losses) arising during the period
(7
)
 
—

 
—

 
—

 
(7
)
Reclassification adjustment for OTTI losses:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
6

 
—

 
—

 
—

 
6

Excluded from Net earnings (loss)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
—

 
—

 
—

 
—

Deferred income taxes
—

 
—

 
—

 
(1
)
 
(1
)
Policyholders’ liabilities
—

 
—

 
4

 
—

 
4

Balance, June 30, 2016
$
15

 
$
—

 
$
—

 
$
(6
)
 
$
9
All Other Net Unrealized Investment Gains (Losses) in AOCI
All Other Net Unrealized Investment Gains (Losses) in AOCI

 
Net
Unrealized
Gains
(Losses) on
Investments
 
DAC
 
Policyholders’
Liabilities
 
Deferred
Income
Tax Asset
(Liability)
 
AOCI Gain
(Loss) Related
to Net
Unrealized
Investment
Gains (Losses)
 
(In Millions)
Balance, April 1, 2017
$
606

 
$
(108
)
 
$
(135
)
 
$
(127
)
 
$
236

Net investment gains (losses) arising during the period
524

 
—

 
—

 
—

 
524

Reclassification adjustment:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
15

 
—

 
—

 
—

 
15

Excluded from Net earnings (loss)(1)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
(33
)
 
—

 
—

 
(33
)
Deferred income taxes
—

 
—

 
—

 
(162
)
 
(162
)
Policyholders’ liabilities
—

 
—

 
(41
)
 
—

 
(41
)
Balance, June 30, 2017
$
1,145

 
$
(141
)
 
$
(176
)
 
$
(289
)
 
$
539

Balance, April 1, 2016
$
1,975

 
$
(57
)
 
$
(306
)
 
$
(565
)
 
$
1,047

Net investment gains (losses) arising during the period
1,172

 
—

 
—

 
—

 
1,172

Reclassification adjustment:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
(45
)
 
—

 
—

 
—

 
(45
)
Excluded from Net earnings (loss)(1)
(23
)
 
—

 
—

 
—

 
(23
)
Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
(82
)
 
—

 
—

 
(82
)
Deferred income taxes
—

 
—

 
—

 
(321
)
 
(321
)
Policyholders’ liabilities
—

 
—

 
(105
)
 
—

 
(105
)
Balance, June 30, 2016
$
3,079

 
$
(139
)
 
$
(411
)
 
$
(886
)
 
$
1,643






 
Net
Unrealized
Gains
(Losses) on
Investments
 
DAC
 
Policyholders’
Liabilities
 
Deferred
Income
Tax Asset
(Liability)
 
AOCI Gain
(Loss) Related
to Net
Unrealized
Investment
Gains (Losses)
 
(In Millions)
Balance, January 1, 2017
$
428

 
$
(87
)
 
$
(189
)
 
$
(53
)
 
$
99

Net investment gains (losses) arising during the period
690

 
—

 
—

 
—

 
690

Reclassification adjustment for OTTI losses:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
27

 
—

 
—

 
—

 
27

Excluded from Net earnings (loss)(1)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
(54
)
 
—

 
—

 
(54
)
Deferred income taxes
—

 
—

 
—

 
(236
)
 
(236
)
Policyholders’ liabilities
—

 
—

 
13

 
—

 
13

Balance, June 30, 2017
$
1,145

 
$
(141
)
 
$
(176
)
 
$
(289
)
 
$
539

Balance, January 1, 2016
$
674

 
$
(82
)
 
$
(213
)
 
$
(133
)
 
$
246

Net investment gains (losses) arising during the period
2,434

 
—

 
—

 
—

 
2,434

Reclassification adjustment for OTTI losses:
 
 
 
 
 
 
 
 
 
Included in Net earnings (loss)
(29
)
 
—

 
—

 
—

 
(29
)
Excluded from Net earnings (loss)(1)
—

 
—

 
—

 
—

 
—

Impact of net unrealized investment gains (losses) on:
 
 
 
 
 
 
 
 
 
DAC
—

 
(57
)
 
—

 
—

 
(57
)
Deferred income taxes
—

 
—

 
—

 
(753
)
 
(753
)
Policyholders’ liabilities
—

 
—

 
(198
)
 
—

 
(198
)
Balance, June 30, 2016
$
3,079

 
$
(139
)
 
$
(411
)
 
$
(886
)
 
$
1,643


 
(1)
Represents “transfers out” related to the portion of OTTI losses during the period that were not recognized in earnings (loss) for securities with no prior OTTI loss.
Schedule of Gross Unrealized Loss on Investments
The following tables disclose the fair values and gross unrealized losses of the 634 issues at June 30, 2017 and the 794 issues at December 31, 2016 of fixed maturities that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
(In Millions)
June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
Public corporate
$
2,032

 
$
40

 
$
149

 
$
5

 
$
2,181

 
$
45

Private corporate
1,108

 
26

 
155

 
18

 
1,263

 
44

U.S. Treasury, government and agency
5,153

 
386

 
—

 
—

 
5,153

 
386

States and political subdivisions
—

 
—

 
19

 
1

 
19

 
1

Foreign governments
46

 
1

 
35

 
5

 
81

 
6

Commercial mortgage-backed
39

 
5

 
171

 
31

 
210

 
36

Residential mortgage-backed
13

 
—

 
19

 
—

 
32

 
—

Asset-backed
3

 
—

 
8

 
1

 
11

 
1

Redeemable preferred stock
8

 
—

 
12

 
1

 
20

 
1

Total
$
8,402

 
$
458


$
568


$
62


$
8,970


$
520

December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
Fixed Maturity Securities:
 
 
 
 
 
 
 
 
 
 
 
Public corporate
$
2,455

 
$
75

 
$
113

 
$
6

 
$
2,568

 
$
81

Private corporate
1,483

 
38

 
277

 
17

 
1,760

 
55

U.S. Treasury, government and agency
5,356

 
624

 
—

 
—

 
5,356

 
624

States and political subdivisions
—

 
—

 
18

 
2

 
18

 
2

Foreign governments
73

 
3

 
49

 
11

 
122

 
14

Commercial mortgage-backed
66

 
5

 
171

 
67

 
237

 
72

Residential mortgage-backed
47

 
—

 
4

 
—

 
51

 
—

Asset-backed
4

 
—

 
8

 
1

 
12

 
1

Redeemable preferred stock
218

 
9

 
12

 
1

 
230

 
10

Total
$
9,702

 
$
754

 
$
652

 
$
105

 
$
10,354

 
$
859
Net Investment Income (Loss) from Trading Securities
The table below shows a breakdown of Net investment income from trading account securities during the second quarter and first six months of 2017 and 2016:

Net investment income (loss) from trading securities 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2017
 
2016
 
2017
 
2016
 
(In Millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period
$
57

 
$
55

 
$
108

 
$
119

Net investment gains (losses) recognized on securities sold during the period
23

 
(4
)
 
25

 
(10
)
Unrealized and realized gains (losses) on trading securities arising during the period
80

 
51

 
133

 
109

Interest and dividend income from trading securities
49

 
29

 
89

 
48

Net investment income (loss) from trading securities
$
129

 
$
80

 
$
222

 
$
157
Troubled Debt Restructurings - Modifications


Valuation Allowance for Mortgage Loans
Allowance for credit losses for commercial mortgage loans for the first six months of 2017 and 2016 was as follows:
 
2017
 
2016
Allowance for credit losses:
(In Millions)
Beginning balance, January 1,
$
8

 
$
6

Charge-offs
—

 
—

Recoveries
—

 
—

Provision
—

 
1

Ending balance, June 30,
$
8

 
$
7

 
 
 
 
June 30, Individually Evaluated for Impairment
$
8

 
$
7
Mortgage Loans by Loan-To-Value and Debt Service Coverage Ratios
The following tables provide information relating to the loan-to-value and debt service coverage ratios for commercial and agricultural mortgage loans at June 30, 2017 and December 31, 2016, before adjustments for valuation allowance. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value.
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios
June 30, 2017
 
Debt Service Coverage Ratio
 
 
Loan-to-Value Ratio:(2)
Greater than 2.0x
 
1.8x to 2.0x
 
1.5x to 1.8x
 
1.2x to 1.5x
 
1.0x to 1.2x
 
Less than 1.0x
 
Total Mortgage
Loans
 
(In Millions)
Commercial Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
681

 
$
45

 
$
321

 
$
74

 
$
—

 
$
—

 
$
1,121

50% - 70%
3,977

 
518

 
695

 
840

 
—

 
—

 
6,030

70% - 90%
249

 
22

 
256

 
104

 
96

 
—

 
727

90% plus
—

 
—

 
27

 
—

 
—

 
—

 
27

Total Commercial Mortgage Loans
$
4,907

 
$
585

 
$
1,299

 
$
1,018

 
$
96

 
$
—

 
$
7,905

Agricultural Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
255

 
$
142

 
$
301

 
$
501

 
$
285

 
$
53

 
$
1,537

50% - 70%
125

 
56

 
212

 
321

 
213

 
38

 
965

70% - 90%
—

 
—

 
—

 
4

 
—

 
—

 
4

90% plus
—

 
—

 
—

 
—

 
—

 
—

 
—

Total Agricultural Mortgage Loans
$
380

 
$
198

 
$
513

 
$
826

 
$
498

 
$
91

 
$
2,506

Total Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
936

 
$
187

 
$
622

 
$
575

 
$
285

 
$
53

 
$
2,658

50% - 70%
4,102

 
574

 
907

 
1,161

 
213

 
38

 
6,995

70% - 90%
249

 
22

 
256

 
108

 
96

 
—

 
731

90% plus
—

 
—

 
27

 
—

 
—

 
—

 
27

Total Mortgage Loans
$
5,287

 
$
783

 
$
1,812

 
$
1,844

 
$
594

 
$
91

 
$
10,411



(1)
The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service.
(2)
The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually.
Mortgage Loans by Loan-to-Value and Debt Service Coverage Ratios
December 31, 2016
 
Debt Service Coverage Ratio
 
 
Loan-to-Value Ratio:(2)
Greater than 2.0x
 
1.8x to 2.0x
 
1.5x to 1.8x
 
1.2x to1.5x
 
1.0x to 1.2x
 
Less than 1.0x
 
Total Mortgage Loans
 
(In Millions)
Commercial Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
738

 
$
95

 
$
59

 
$
56

 
$
—

 
$
—

 
$
948

50% - 70%
3,217

 
430

 
673

 
1,100

 
76

 
—

 
5,496

70% - 90%
282

 
65

 
229

 
127

 
28

 
46

 
777

90% plus
—

 
—

 
28

 
15

 
—

 
—

 
43

Total Commercial Mortgage Loans
$
4,237

 
$
590

 
$
989

 
$
1,298

 
$
104

 
$
46

 
$
7,264

Agricultural Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
254

 
$
138

 
$
296

 
$
468

 
$
286

 
$
49

 
$
1,491

50% - 70%
141

 
57

 
209

 
333

 
219

 
45

 
1,004

70% - 90%
—

 
—

 
2

 
4

 
—

 
—

 
6

90% plus
—

 
—

 
—

 
—

 
—

 
—

 
—

Total Agricultural Mortgage Loans
$
395

 
$
195

 
$
507

 
$
805

 
$
505

 
$
94

 
$
2,501

Total Mortgage Loans(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
0% - 50%
$
992

 
$
233

 
$
355

 
$
524

 
$
286

 
$
49

 
$
2,439

50% - 70%
3,358

 
487

 
882

 
1,433

 
295

 
45

 
6,500

70% - 90%
282

 
65

 
231

 
131

 
28

 
46

 
783

90% plus
—

 
—

 
28

 
15

 
—

 
—

 
43

Total Mortgage Loans
$
4,632

 
$
785

 
$
1,496

 
$
2,103

 
$
609

 
$
140

 
$
9,765



(1)
The debt service coverage ratio is calculated using the most recently reported net operating income results from property operations divided by annual debt service.
(2)
The loan-to-value ratio is derived from current loan balance divided by the fair market value of the property. The fair market value of the underlying commercial properties is updated annually.
Age Analysis of Past Due Mortgage Loans
The following table provides information relating to the aging analysis of past due mortgage loans at June 30, 2017 and December 31, 2016, respectively, before adjustments for valuation allowance.

Age Analysis of Past Due Mortgage Loans
 
30-59
    Days    
 
60-89
    Days    
 
90
    Days    
or >
 
Total    
 
Current    
 
Total
Financing
Receivables
 
Recorded
Investment 90 Days or >
and
Accruing
 
 
 
 
 
 
 
(In Millions)
 
 
 
 
June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
7,905

 
$
7,905

 
$
—

Agricultural
37

 
6

 
19

 
62

 
2,444

 
2,506

 
19

Total Mortgage Loans
$
37

 
$
6

 
$
19

 
$
62

 
$
10,349

 
$
10,411

 
$
19

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
—

 
$
—

 
$
—

 
$
—

 
$
7,264

 
$
7,264

 
$
—

Agricultural
9

 
2

 
6

 
17

 
2,484

 
2,501

 
6

Total Mortgage Loans
$
9

 
$
2

 
$
6

 
$
17

 
$
9,748

 
$
9,765

 
$
6
Impaired Mortgage Loans
The following table provides information regarding impaired mortgage loans at June 30, 2017 and December 31, 2016, respectively.

Impaired Mortgage Loans

 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment(1)
 
Interest
Income
Recognized
 
(In Millions)
June 30, 2017:
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial mortgage loans - other
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Agricultural mortgage loans
—

 
—

 
—

 
—

 
—

Total
$
—

 
$
—

 
$
—

 
$
—

 
$
—

With related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial mortgage loans - other
$
27

 
$
27

 
$
(8
)
 
$
27

 
$
1

Agricultural mortgage loans
—

 
—

 
—

 
—

 
—

Total
$
27

 
$
27

 
$
(8
)
 
$
27

 
$
1

December 31, 2016:
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial mortgage loans - other
$
15

 
$
15

 
$
—

 
$
22

 
$
—

Agricultural mortgage loans
—

 
—

 
—

 
—

 
—

Total
$
15

 
$
15

 
$
—

 
$
22

 
$
—

With related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial mortgage loans - other
$
27

 
$
27

 
$
(8
)
 
$
48

 
$
2

Agricultural mortgage loans
—

 
—

 
—

 
—

 
—

Total
$
27

 
$
27

 
$
(8
)
 
$
48

 
$
2


 
(1)
Represents a three-quarter average of recorded amortized cost.
Derivative Instruments by Category
The tables below present quantitative disclosures about the Company’s derivative instruments, including those embedded in other contracts required to be accounted for as derivative instruments.

Derivative Instruments by Category
 
At June 30, 2017
 
Gains (Losses)
Reported In Net
Earnings (Loss)
Six Months Ended June 30, 2017
 
 
 
Fair Value
 
 
Notional
Amount
 
Asset
Derivatives
 
Liability
Derivatives
 
 
(In Millions)
Freestanding derivatives:
 
 
 
 
 
 
 
Equity contracts:(1)
 
 
 
 
 
 
 
Futures
$
4,542

 
$
1

 
$
1

 
$
(328
)
Swaps
4,162

 
7

 
128

 
(403
)
Options
13,844

 
2,446

 
1,197

 
477

Interest rate contracts:(1)
 
 
 
 
 
 
 
Floors
—

 
—

 
—

 
—

Swaps
18,865

 
405

 
195

 
452

Futures
8,218

 
—

 
—

 
22

Credit contracts:(1)
 
 
 
 
 
 
 
Credit default swaps
3,300

 
33

 
13

 
9

Other freestanding contracts:(1)
 
 
 
 
 
 
 
Foreign currency contracts
1,237

 
33

 
11

 
(1
)
Margin
—

 
57

 
—

 
—

Collateral
—

 
2

 
1,475

 
—

Net investment income (loss)
 
 
 
 
 
 
228

Embedded derivatives:
 
 
 
 
 
 
 
GMIB reinsurance contracts
—

 
11,290

 
—

 
981

GIB and GWBL and Other Features(2)
—

 
—

 
121

 
(43
)
SCS, SIO, MSO and IUL indexed features(3)
—

 
—

 
1,169

 
(480
)
Total
$
54,168

 
$
14,274

 
$
4,310

 
$
686



(1)
Reported in Other invested assets in the consolidated balance sheets.
(2)
Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.
(3)
SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets.
 
At December 31, 2016
 
Gains (Losses)
Reported In Net
Earnings (Loss)
Six Months Ended June 30, 2016
 
 
 
Fair Value
 
 
Notional
Amount
 
Asset
Derivatives
 
Liability
Derivatives
 
 
(In Millions)
Freestanding derivatives:
 
 
 
 
 
 
 
Equity contracts:(1)
 
 
 
 
 
 
 
Futures
$
5,086

 
$
1

 
$
1

 
$
(264
)
Swaps
3,529

 
13

 
67

 
(39
)
Options
11,465

 
2,114

 
1,154

 
135

Interest rate contracts:(1)
 
 
 
 
 
 
 
Floors
1,500

 
11

 
—

 
6

Swaps
18,933

 
246

 
1,163

 
1,573

Futures
6,926

 
—

 
—

 
(57
)
Swaptions
—

 
—

 
—

 
—

Credit contracts:(1)
 
 
 
 
 
 
 
Credit default swaps
2,757

 
20

 
15

 
—

Other freestanding contracts:(1)
 
 
 
 
 
 
 
Foreign currency contracts
730

 
52

 
6

 
(8
)
Margin
 
 
107

 
6

 
—

Collateral
 
 
712

 
748

 
—

Net investment income (loss)
 
 
 
 
 
 
1,346

Embedded derivatives:
 
 
 
 
 
 
 
GMIB reinsurance contracts
—

 
10,309

 
—

 
2,741

GIB and GWBL and Other Features(2)
—

 
—

 
164

 
146

SCS, SIO, MSO and IUL indexed features(3)
—

 
—

 
887

 
(131
)
Total
$
50,926

 
$
13,585

 
$
4,211

 
$
4,102



(1)
Reported in Other invested assets in the consolidated balance sheets.
(2)
Reported in Future policy benefits and other policyholders’ liabilities in the consolidated balance sheets.
(3)
SCS and SIO indexed features are reported in Policyholders’ account balances; MSO and IUL indexed features are reported in Future policyholders’ benefits and other policyholders’ liabilities in the consolidated balance sheets
Offsetting Financial Assets and Liabilities and Derivative Instruments
(2)
Excludes expense accrual of $6 million in securities sold under agreement to repurchase.
The following table presents information about the Insurance segment’s offsetting financial assets and liabilities and derivative instruments at December 31, 2016.
Offsetting Financial Assets and Liabilities and Derivative Instruments
At December 31, 2016
 
Gross
Amounts
Recognized
 
Gross
Amounts
Offset in the
Balance Sheets
 
Net Amounts
Presented in the
Balance Sheets
 
(In Millions)
ASSETS(1)
 
 
 
 
 
Description
 
 
 
 
 
Derivatives:
 
 
 
 
 
Equity contracts
$
2,128

 
$
1,219

 
$
909

Interest rate contracts
253

 
1,162

 
(909
)
Credit contracts
20

 
14

 
6

Currency
48

 
1

 
47

Margin
107

 
6

 
101

Collateral
712

 
747

 
(35
)
Total Derivatives, subject to an ISDA Master Agreement
3,268

 
3,149

 
119

Total Derivatives, not subject to an ISDA Master Agreement
4

 
—

 
4

Total Derivatives
3,272

 
3,149

 
123

Other financial instruments
2,063

 
—

 
2,063

Other invested assets
$
5,335

 
$
3,149

 
$
2,186

Securities purchased under agreement to resell
$
—

 
$
—

 
$
—

LIABILITIES(2)
 
 
 
 
 
Description
 
 
 
 
 
Derivatives:
 
 
 
 
 
Equity contracts
$
1,219

 
$
1,219

 
$
—

Interest rate contracts
1,162

 
1,162

 
—

Credit contracts
14

 
14

 
—

Currency
1

 
1

 
—

Margin
6

 
6

 
—

Collateral
747

 
747

 
—

Total Derivatives, subject to an ISDA Master Agreement
3,149

 
3,149

 
—

Total Derivatives, not subject to an ISDA Master Agreement
—

 
—

 
—

Total Derivatives
3,149

 
3,149

 
—

Other financial liabilities
2,108

 
—

 
2,108

Other liabilities
$
5,257

 
$
3,149

 
$
2,108

Securities sold under agreement to repurchase(3)
$
1,992

 
$
—

 
$
1,992


 
(1)
Excludes Investment Management segment’s $13 million net derivative assets (including derivative assets of consolidated VIEs), $3 million long exchange traded options and $83 million of securities borrowed.
(2)
Excludes Investment Management segment’s $11 million net derivative liabilities (including derivative liabilities of consolidated VIEs), $1 million short exchange traded options and $10 million of securities loaned.
(3)
Excludes expense of $4 million in securities sold under agreement to repurchase.

The following table presents information about the Insurance Segment’s offsetting of financial assets and liabilities and derivative instruments at June 30, 2017.
Offsetting Financial Assets and Liabilities and Derivative Instruments
At June 30, 2017
 
Gross
Amounts
Recognized
 
Gross
Amounts
Offset in the
Balance Sheets
 
Net Amounts
Presented in the
Balance Sheets
 
(In Millions)
ASSETS(1)
 
 
 
 
 
Description
 
 
 
 
 
Derivatives:
 
 
 
 
 
Equity contracts
$
2,453

 
$
1,325

 
$
1,128

Interest rate contracts
404

 
194

 
210

Credit contracts
32

 
13

 
19

Currency
27

 
6

 
21

Margin
57

 
—

 
57

Collateral
2

 
1,475

 
(1,473
)
Total Derivatives, subject to an ISDA Master Agreement
2,975

 
3,013

 
(38
)
Total Derivatives, not subject to an ISDA Master Agreement
—

 
—

 
—

Total Derivatives
2,975

 
3,013

 
(38
)
Other financial instruments
2,660

 
—

 
2,660

Other invested assets
$
5,635

 
$
3,013

 
$
2,622

Securities purchased under agreement to resell
$
—

 
$
—

 
$
—

LIABILITIES(2)
 
 
 
 
 
Description
 
 
 
 
 
Derivatives:
 
 
 
 
 
Equity contracts
$
1,325

 
$
1,325

 
$
—

Interest rate contracts
194

 
194

 
—

Credit contracts
13

 
13

 
—

Currency
6

 
6

 
—

Margin
—

 
—

 
—

Collateral
1,475

 
1,475

 
—

Total Derivatives, subject to an ISDA Master Agreement
3,013

 
3,013

 
—

Total Derivatives, not subject to an ISDA Master Agreement
—

 
—

 
—

Total Derivatives
3,013

 
3,013

 
—

Other financial liabilities
2,531

 
—

 
2,531

Other liabilities
$
5,544

 
$
3,013

 
$
2,531

Securities sold under agreement to repurchase(3)
$
1,791

 
$
—

 
$
1,791


 
(1)
Excludes Investment Management segment’s $22 million net derivative assets (including derivative assets of consolidated VIEs), $8 million long exchange traded options and $55 million of securities borrowed.
(2)
Excludes Investment Management segment’s $11 million net derivative liabilities (including derivative liabilities of consolidated VIEs), $8 million short exchange traded options and $29 million of securities loaned.
(3)
Excludes expense of $6 million in securities sold under agreement to repurchase.
Gross Collateral Amounts Not Offset in Consolidated Balance Sheets
The following table presents information about the Insurance segment’s gross collateral amounts that are not offset in the consolidated balance sheets at June 30, 2017.
Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets
At June 30, 2017
 
Net Amounts Presented in the Balance Sheets
 
Collateral (Received)/Held
 
 
 
Financial
Instruments
 
Cash
 
Net
Amounts
 
(In Millions)
ASSETS:(1)
 
 
 
 
 
 
Counterparty A
$
49

 
$
—

 
$
(50
)
 
$
(1
)
Counterparty B
(1
)
 
—

 
2

 
1

Counterparty C
94

 
—

 
(94
)
 
—

Counterparty D
176

 
—

 
(178
)
 
(2
)
Counterparty E
33

 
—

 
(38
)
 
(5
)
Counterparty F
103

 
—

 
(114
)
 
(11
)
Counterparty G
282

 
—

 
(290
)
 
(8
)
Counterparty H
223

 
—

 
(225
)
 
(2
)
Counterparty I
43

 
—

 
(53
)
 
(10
)
Counterparty J
(50
)
 
—

 
53

 
3

Counterparty K
105

 
—

 
(116
)
 
(11
)
Counterparty L
3

 
—

 
(7
)
 
(4
)
Counterparty M
124

 
—

 
(117
)
 
7

Counterparty N
—

 
—

 
—

 
—

Counterparty Q
13

 
—

 
(12
)
 
1

Counterparty T
24

 
—

 
(24
)
 
—

Counterparty U
30

 
—

 
(27
)
 
3

Counterparty V
127

 
—

 
(126
)
 
$
1

Total derivatives
$
1,378

 
$
—

 
$
(1,416
)
 
$
(38
)
Other financial instruments
1,244

 
—

 
—

 
1,244

Other invested assets
$
2,622

 
$
—

 
$
(1,416
)
 
$
1,206

Securities purchased under agreement to resell
$
—

 
$
—

 
$
—

 
$
—

LIABILITIES:(2)
 
 
 
 
 
 

Counterparty D
$
972

 
$
(1,076
)
 
$
—

 
$
(104
)
Counterparty M
191

 
(234
)
 
—

 
(43
)
Counterparty W
628

 
(641
)
 
—

 
(13
)
Securities sold under agreement to repurchase (3)
$
1,791

 
$
(1,951
)
 
$
—

 
$
(160
)

 
(1)
Excludes Investment Management segment’s cash collateral received of $0 million related to derivative assets (including those related to derivative assets of consolidated VIEs) and $55 million related to securities borrowed.
(2)
Excludes Investment Management segment’s cash collateral pledged of $8 million related to derivative liabilities (including those related to derivative liabilities of consolidated VIEs) and $29 million of securities loaned.
(3)
Excludes expense of $6 million in securities sold under agreement to repurchase.

The following table presents information about the Insurance segment’s gross collateral amounts that are not offset in the consolidated balance sheets at December 31, 2016.
Gross Collateral Amounts Not Offset in the Consolidated Balance Sheets
At December 31, 2016
 
 
Net Amounts Presented in the Balance Sheets
 
Collateral (Received)/Held
 
 
 
Financial
Instruments
 
Cash
 
Net
Amounts
 
(In Millions)
ASSETS:(1)
 
 
 
 
 
 
 
Counterparty A
$
46

 
$
—

 
$
(48
)
 
$
(2
)
Counterparty B
(128
)
 
—

 
132

 
4

Counterparty C
(116
)
 
—

 
138

 
22

Counterparty D
182

 
—

 
(176
)
 
6

Counterparty E
(65
)
 
—

 
83

 
18

Counterparty F
(3
)
 
—

 
16

 
13

Counterparty G
219

 
—

 
(214
)
 
5

Counterparty H
104

 
—

 
(110
)
 
(6
)
Counterparty I
(188
)
 
—

 
203

 
15

Counterparty J
(93
)
 
—

 
115

 
22

Counterparty K
92

 
—

 
(96
)
 
(4
)
Counterparty L
(3
)
 
—

 
3

 
—

Counterparty M
(105
)
 
—

 
120

 
15

Counterparty N
4

 
—

 
—

 
4

Counterparty Q
10

 
—

 
(11
)
 
(1
)
Counterparty T
—

 
—

 
2

 
2

Counterparty U
1

 
—

 
10

 
11

Counterparty V
96

 
—

 
(101
)
 
(5
)
Total Derivatives
$
53

 
$
—

 
$
66

 
$
119

Other financial instruments
2,067

 
—

 
—

 
2,067

Other invested assets
$
2,120

 
$
—

 
$
66

 
$
2,186

Counterparty M
$
—

 
$
—

 
$
—

 
$
—

Counterparty V
—

 
—

 
—

 
—

Securities purchased under agreement to resell
$
—

 
$
—

 
$
—

 
$
—

LIABILITIES(2)
 
 
 
 
 
 
 
Counterparty D
$
767

 
$
(767
)
 
$
—

 
$
—

Counterparty M
410

 
(410
)
 
—

 
—

Counterparty C
302

 
(296
)
 
(2
)
 
4

Counterparty W
513

 
(513
)
 
—

 
—

Securities sold under agreement to repurchase(3)
$
1,992

 
$
(1,986
)
 
$
(2
)
 
$
4


 
(1)
Excludes Investment Management segment’s cash collateral received of $1 million related to derivative assets (including those related to derivative assets of consolidated VIEs) and $83 million related to securities borrowed.
(2)
Excludes Investment Management segment’s cash collateral pledged of $8 million related to derivative liabilities (including those related to derivative liabilities of consolidated VIEs).
(3)
Excludes expense of $4 million in securities sold under agreement to repurchase.
Repurchase Agreements Accounted for as Secured Borrowings
The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at June 30, 2017.
Repurchase Agreement Accounted for as Secured Borrowings(1)
 
At June 30, 2017
 
Remaining Contractual Maturity of the Agreements
 
Overnight and
Continuous
 
Up to 30
days
 
30–90
days
 
Greater Than
90 days
 
Total
 
(In Millions)
Securities sold under agreement to repurchase(2)
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
$
—

 
$
1,791

 
$
—

 
$
—

 
$
1,791

Total
$
—

 
$
1,791

 
$
—

 
$
—

 
$
1,791

Securities purchased under agreement to resell
 
 
 
 
 
 
 
 
 
Corporate securities
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Total
$
—

 
$
—

 
$
—

 
$
—

 
$
—


 
(1)
Excludes Investment Management segment’s $55 million of securities borrowed.
(2)
Excludes expense accrual of $6 million in securities sold under agreement to repurchase.
The following table presents information about repurchase agreements accounted for as secured borrowings in the consolidated balance sheets at December 31, 2016.
Repurchase Agreement Accounted for as Secured Borrowings(1) 

 
At December 31, 2016
 
Remaining Contractual Maturity of the Agreements
 
Overnight and
Continuous
 
Up to 30
days
 
30–90
days
 
Greater 
Than
90 days
 
Total
 
(In Millions)
Securities sold under agreement to repurchase(2)
 
 
 
 
 
 
 
 
 
U.S. Treasury and agency securities
$
—

 
$
1,992

 
$
—

 
$
—

 
$
1,992

Total
$
—

 
$
1,992

 
$
—

 
$
—

 
$
1,992


(1)
Excludes Investment Management segment’s $83 million of securities borrowed.
(2)
Excludes expense of $4 million in securities sold under agreement to repurchase