CLOSED BLOCK (Tables)

3 Months Ended

Mar. 31, 2019

Summarized financial information for the Company’s Closed Block is as follows:



	March 31, 2019		December 31, 2018
	(in millions)
Closed Block Liabilities:
Future policy benefits, policyholders’ account balances and other	$	6,670	$	6,709
Other liabilities	70		47
Total Closed Block liabilities	6,740		6,756

Assets Designated to the Closed Block:
Fixed maturities, available-for-sale, at fair value (amortized cost of $3,606 and $3,680)	3,697		3,672
Mortgage loans on real estate, net of valuation allowance of $0 and $0	1,822		1,824
Policy loans	727		736
Cash and other invested assets	142		76
Other assets	171		179
Total assets designated to the Closed Block	6,559		6,487

Excess of Closed Block liabilities over assets designated to the Closed Block	181		269
Amounts included in accumulated other comprehensive income (loss):
Net unrealized investment gains (losses), net of policyholders’ dividend obligation of $0 and $0	105		8
Maximum future earnings to be recognized from Closed Block assets and liabilities	$	286	$	277

The Company’s Closed Block revenues and expenses are as follows:



	Three Months Ended March 31,
	2019			2018
	(in millions)
Revenues:
Premiums and other income	$	48		$	51
Net investment income (loss)	67			73
Investment gains (losses), net	(1		)	1
Total revenues	114			125

Benefits and Other Deductions:
Policyholders’ benefits and dividends	121			126
Other operating costs and expenses	1			1
Total benefits and other deductions	122			127
Net income (loss) before income taxes	(8		)	(2		)
Income tax (expense) benefit	(1		)	—
Net income (loss)	$	(9	)	$	(2	)

A reconciliation of the Company’s policyholder dividend obligation follows:



	Three Months Ended March 31,
	2019		2018
	(in millions)
Balances, beginning of year	$	—	$	19
Unrealized investment gains (losses), net of DAC	—		(19		)
Balances, end of period	$	—	$	—