Investments (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the fixed maturity securities AFS by sector at:

	March 31, 2018											December 31, 2017
	Amortized Cost		Gross Unrealized							Estimated Fair Value		Amortized Cost		Gross Unrealized							Estimated Fair Value
			Gains		Temporary Losses		OTTI Losses (1)							Gains		Temporary Losses		OTTI Losses (1)
	(In millions)
Fixed maturity securities: (2)
U.S. corporate	$	21,644	$	1,320	$	276	$	—		$	22,688	$	20,647	$	1,822	$	89	$	—		$	22,380
U.S. government and agency	12,367		1,448		219		—			13,596		14,185		1,844		116		—			15,913
RMBS	7,645		250		150		(2		)	7,747		7,588		283		57		(3		)	7,817
Foreign corporate	6,477		288		91		—			6,674		6,457		376		62		—			6,771
State and political subdivision	3,567		459		18		—			4,008		3,573		532		6		1			4,098
CMBS	3,752		16		57		(1		)	3,712		3,259		48		17		(1		)	3,291
ABS	1,854		18		3		—			1,869		1,779		19		2		—			1,796
Foreign government	1,154		123		11		—			1,266		1,111		159		3		—			1,267
Total fixed maturity securities	$	58,460	$	3,922	$	825	$	(3	)	$	61,560	$	58,599	$	5,083	$	352	$	(3	)	$	63,333

__________________

(1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).”

(2) Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2018:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	1,730	$	8,497	$	11,642	$	23,340	$	13,251	$	58,460
Estimated fair value	$	1,733	$	8,734	$	11,702	$	26,063	$	13,328	$	61,560

Continuous Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at:

	March 31, 2018								December 31, 2017
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
Fixed maturity securities:
U.S. corporate	$	6,900	$	171	$	1,280	$	105	$	1,762	$	21	$	1,413	$	68
U.S. government and agency	3,934		92		1,351		127		4,764		36		1,573		80
RMBS	3,194		81		1,164		67		2,308		13		1,292		41
Foreign corporate	1,756		37		467		54		636		8		559		54
State and political subdivision	463		11		102		7		171		3		106		4
CMBS	2,377		39		362		17		603		6		335		10
ABS	394		2		40		1		165		—		75		2
Foreign government	327		8		48		3		152		2		50		1
Total fixed maturity securities	$	19,345	$	441	$	4,814	$	381	$	10,561	$	89	$	5,403	$	260
Total number of securities in an unrealized loss position	2,105				583				903				619

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:

	March 31, 2018					December 31, 2017
	Carrying Value			% of Total		Carrying Value			% of Total
	(Dollars in millions)
Mortgage loans:
Commercial	$	7,601		67.8	%	$	7,233		67.9	%
Agricultural	2,361			21.1		2,200			20.7
Residential	1,188			10.6		1,138			10.7
Subtotal (1)	11,150			99.5		10,571			99.3
Valuation allowances (2)	(49		)	(0.4	)	(46		)	(0.4	)
Subtotal mortgage loans, net	11,101			99.1		10,525			98.9
Commercial mortgage loans held by CSEs - FVO	105			0.9		115			1.1
Total mortgage loans, net	$	11,206		100.0	%	$	10,640		100.0	%

__________________

(1) Purchases of mortgage loans from third parties were $86 million and $420 million at March 31, 2018 and December 31, 2017, respectively, and were primarily comprised of residential mortgage loans.

(2) The valuation allowances were primarily from collective evaluation (non-specific loan related)

Components of net unrealized investment gains (losses) included in accumulated other comprehensive income (loss)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	March 31, 2018			December 31, 2017
	(In millions)
Fixed maturity securities	$	3,089		$	4,722
Fixed maturity securities with noncredit OTTI losses included in AOCI	2			2
Total fixed maturity securities	3,091			4,724
Equity securities	—			39
Derivatives	150			231
Other	(9		)	(8		)
Subtotal	3,232			4,986
Amounts allocated from:
Future policy benefits	(1,725		)	(2,370		)
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(8		)	(2		)
DAC, VOBA and DSI	(207		)	(260		)
Subtotal	(1,940		)	(2,632		)
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	3			1
Deferred income tax benefit (expense)	(275		)	(495		)
Net unrealized investment gains (losses)	$	1,020		$	1,860

The changes in net unrealized investment gains (losses) were as follows:

	Three Months Ended     March 31, 2018
	(In millions)
Balance, December 31, 2017	$	1,860
Unrealized investment gains (losses) change due to cumulative effect, net of income tax (1)	(15		)
Balance, January 1, 2018	1,845
Fixed maturity securities on which noncredit OTTI losses have been recognized	—
Unrealized investment gains (losses) during the period	(1,739		)
Unrealized investment gains (losses) relating to:
Future policy benefits	645
DAC and VOBA related to noncredit OTTI losses recognized in AOCI	(6		)
DAC, VOBA and DSI	53
Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI	2
Deferred income tax benefit (expense)	220
Balance, March 31, 2018	$	1,020
Change in net unrealized investment gains (losses)	$	(825	)

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(1) See Note 1 for more information related to the cumulative effect of change in accounting principle.

Securities Lending

Elements of the securities lending program are presented below at:

	March 31, 2018		December 31, 2017
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,333	$	3,085
Estimated fair value	$	3,766	$	3,748
Cash collateral received from counterparties (2)	$	3,777	$	3,791
Security collateral received from counterparties (3)	$	42	$	29
Reinvestment portfolio — estimated fair value	$	3,787	$	3,823

__________________

(1) Included within fixed maturity securities.

(2) Included within payables for collateral under securities loaned and other transactions.

(3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	March 31, 2018								December 31, 2017
	Remaining Tenor of Securities Lending Agreements								Remaining Tenor of Securities Lending Agreements
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	1,253	$	1,414	$	1,110	$	3,777	$	1,626	$	964	$	1,201	$	3,791

__________________

(1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at:

	March 31, 2018		December 31, 2017
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	8,085	$	8,259
Invested assets held in trust (reinsurance agreements) (2)	2,755		2,634
Invested assets pledged as collateral (3)	4,004		3,199
Total invested assets on deposit, held in trust and pledged as collateral	$	14,844	$	14,092

__________________

(1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $106 million and $34 million of the assets on deposit balance represents restricted cash at March 31, 2018 and December 31, 2017, respectively.

(2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions. $20 million and $42 million of the assets held in trust balance represents restricted cash at March 31, 2018 and December 31, 2017, respectively.

(3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2017 Annual Report) and derivative transactions (see Note 6)

Investments

Cash Equivalents

The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $1.1 billion and $1.0 billion at March 31, 2018 and December 31, 2017, respectively.

The Components of Net Investment Income

The components of net investment income were as follows:

	Three Months Ended    March 31,
	2018		2017
	(In millions)
Investment income:
Fixed maturity securities	$	612	$	592
Equity securities	2		2
Mortgage loans	117		108
Policy loans	10		12
Real estate joint ventures	14		12
Other limited partnership interests	65		57
Cash, cash equivalents and short-term investments	5		8
Other	7		8
Subtotal	832		799
Less: Investment expenses	42		42
Subtotal, net	790		757
FVO CSEs — interest income — commercial mortgage loans	2		2
Net investment income	$	792	$	759

The components of net investment gains (losses)

The components of net investment gains (losses) were as follows:

	Three Months Ended    March 31,
	2018			2017
	(In millions)
Total gains (losses) on fixed maturity securities:
Fixed maturity securities — net gains (losses) on sales and disposals	$	(38	)	$	(37	)
Total gains (losses) on fixed maturity securities	(38		)	(37		)
Total gains (losses) on equity securities:
Equity securities — Mark to market and net gains (losses) on sales and disposals	(1		)	—
Total gains (losses) on equity securities	(1		)	—
Mortgage loans	(4		)	(3		)
Real estate joint ventures	42			2
Other limited partnership interests	—			(10		)
Other	—			(5		)
Subtotal	(1		)	(53		)
FVO CSEs:
Commercial mortgage loans	(3		)	—
Long-term debt — related to commercial mortgage loans	—			(1		)
Non-investment portfolio gains (losses)	—			(1		)
Subtotal	(3		)	(2		)
Total net investment gains (losses)	$	(4	)	$	(55	)

Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains and losses

Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below.

	Three Months Ended    March 31,
	2018			2017
	(In millions)
Proceeds	$	2,838		$	1,960
Gross investment gains	$	3		$	9
Gross investment losses	(41		)	(46		)
Net investment gains (losses)	$	(38	)	$	(37	)

Rollforward of the Cumulative Credit Loss Component of OTTI income (loss)

The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in OCI:

	Three Months Ended    March 31,
	2018		2017
	(In millions)
Balance at January 1,	$	—	$	28
Reductions:
Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI	—		(18		)
Balance at March 31,	$	—	$	10

Schedule of Gain (Loss) on Securitizations or Asset-backed Financing Arrangements of Financial Assets Accounted for as Sale [Table Text Block]

The Company previously transferred invested assets primarily consisting of fixed maturity securities to former affiliates, which were as follows:

	Three Months Ended    March 31,
	2018		2017
	(In millions)
Estimated fair value of invested assets transferred to former affiliates	$	—	$	292
Amortized cost of invested assets transferred to former affiliates	$	—	$	294
Net investment gains (losses) recognized on transfers	$	—	$	(2	)

Variable Interest Entity, Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interest Entities

The following table presents the total assets and total liabilities relating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	March 31, 2018		December 31, 2017
	(In millions)
CSEs: (1)
Assets
Mortgage loans (commercial mortgage loans)	$	105	$	115
Accrued investment income	1		1
Total assets	$	106	$	116
Liabilities
Long-term debt	$	8	$	11
Total liabilities	$	8	$	11

__________________

(1) The Company consolidates entities that are structured as CMBS. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. The Company’s exposure was limited to that of its remaining investment in these entities of $80 million and $86 million at estimated fair value at March 31, 2018 and December 31, 2017, respectively.

Variable Interest Entity, Not Primary Beneficiary [Member]

Variable Interest Entity [Line Items]

Variable Interest Entities

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	March 31, 2018				December 31, 2017
	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS:
Structured Securities (2)	$	11,284	$	11,284	$	11,136	$	11,136
U.S. and foreign corporate	423		423		501		501
Other limited partnership interests	1,541		2,729		1,509		2,460
Other investments (3)	83		91		71		79
Total	$	13,331	$	14,527	$	13,217	$	14,176

__________________

(1) The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

(3) Other investments is comprised of real estate joint ventures and other invested assets.

Commercial

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of commercial mortgage loans was as follows at:

	Recorded Investment
	Debt Service Coverage Ratios								% of Total		Estimated Fair Value		% of Total
	> 1.20x		1.00x - 1.20x		< 1.00x		Total
	(Dollars in millions)
March 31, 2018
Loan-to-value ratios:
Less than 65%	$	6,631	$	238	$	33	$	6,902	90.8	%	$	6,968	91.0	%
65% to 75%	578		—		38		616		8.1		611		8.0
76% to 80%	19		32		32		83		1.1		81		1.0
Total	$	7,228	$	270	$	103	$	7,601	100.0	%	$	7,660	100.0	%
December 31, 2017
Loan-to-value ratios:
Less than 65%	$	6,167	$	293	$	33	$	6,493	89.7	%	$	6,654	90.0	%
65% to 75%	642		—		14		656		9.1		658		8.9
76% to 80%	42		—		9		51		0.7		50		0.7
Greater than 80%	—		9		24		33		0.5		30		0.4
Total	$	6,851	$	302	$	80	$	7,233	100.0	%	$	7,392	100.0	%

Agricultural

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of agricultural mortgage loans was as follows at: 

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Loan-to-value ratios:
Less than 65%	$	2,213	93.7	%	$	2,039	92.7	%
65% to 75%	148		6.3		161		7.3
Total	$	2,361	100.0	%	$	2,200	100.0	%

Residential

Mortgage Loans on Real Estate [Line Items]

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The credit quality of residential mortgage loans was as follows at:

	March 31, 2018				December 31, 2017
	Recorded Investment		% of Total		Recorded Investment		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	1,162	97.8	%	$	1,106	97.2	%
Nonperforming	26		2.2		32		2.8
Total	$	1,188	100.0	%	$	1,138	100.0	%