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Investments (Tables)

3 Months Ended

Mar. 31, 2019

Available-for-sale Securities Including Securities Pledged [Line Items]

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of March 31, 2019:



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives⁽²⁾		Fair Value		OTTI⁽³⁾⁽⁴⁾
Fixed maturities:
U.S. Treasuries	$	464	$	103	$	—	$	—	$	567	$	—
U.S. Government agencies and authorities	—		—		—		—		—		—
State, municipalities and political subdivisions	755		37		3		—		789		—
U.S. corporate public securities	7,511		516		55		—		7,972		—
U.S. corporate private securities	3,753		175		42		—		3,886		—
Foreign corporate public securities and foreign governments⁽¹⁾	2,536		132		32		—		2,636		—
Foreign corporate private securities⁽¹⁾	3,237		105		17		—		3,325		—
Residential mortgage-backed securities:
Agency	2,022		66		11		4		2,081		—
Non-Agency	1,123		43		7		5		1,164		3
Total Residential mortgage-backed securities	3,145		109		18		9		3,245		3
Commercial mortgage-backed securities	2,126		41		14		—		2,153		—
Other asset-backed securities	1,336		9		16		—		1,329		1
Total fixed maturities, including securities pledged	24,863		1,227		197		9		25,902		4
Less: Securities pledged	948		81		11		—		1,018		—
Total fixed maturities	$	23,915	$	1,146	$	186	$	9	$	24,884	$	4

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents Other-than-Temporary-Impairments ("OTTI") reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $160 of net unrealized gains on impaired available-for-sale securities.

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2018:



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives⁽²⁾		Fair Value		OTTI⁽³⁾⁽⁴⁾
Fixed maturities:
U.S. Treasuries	$	651	$	87	$	—	$	—	$	738	$	—
U.S. Government agencies and authorities	—		—		—		—		—		—
State, municipalities and political subdivisions	754		18		8		—		764		—
U.S. corporate public securities	7,908		288		181		—		8,015		—
U.S. corporate private securities	3,686		73		106		—		3,653		—
Foreign corporate public securities and foreign governments⁽¹⁾	2,551		69		80		—		2,540		—
Foreign corporate private securities⁽¹⁾	3,235		37		97		—		3,175		—
Residential mortgage-backed securities:
Agency	1,989		54		20		4		2,027		—
Non-Agency	977		39		12		5		1,009		3
Total Residential mortgage-backed securities	2,966		93		32		9		3,036		3
Commercial mortgage-backed securities	1,917		16		28		—		1,905		—
Other asset-backed securities	1,230		6		28		—		1,208		2
Total fixed maturities, including securities pledged	24,898		687		560		9		25,034		5
Less: Securities pledged	867		45		30		—		882		—
Total fixed maturities	$	24,031	$	642	$	530	$	9	$	24,152	$	5

⁽¹⁾ Primarily U.S. dollar denominated.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $137 of net unrealized gains on impaired available-for-sale securities.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturities, including securities pledged, as of March 31, 2019, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.



	Amortized Cost		Fair Value
Due to mature:
One year or less	$	563	$	568
After one year through five years	3,738		3,845
After five years through ten years	5,758		5,911
After ten years	8,197		8,851
Mortgage-backed securities	5,271		5,398
Other asset-backed securities	1,336		1,329
Fixed maturities, including securities pledged	$	24,863	$	25,902

U.S. and Foreign Corporate Securities by Industry

The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:



	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
March 31, 2019
Communications	$	1,064	$	94	$	5	$	1,153
Financial	2,695		174		12		2,857
Industrial and other companies	7,404		327		54		7,677
Energy	1,808		116		42		1,882
Utilities	2,914		156		22		3,048
Transportation	810		42		6		846
Total	$	16,695	$	909	$	141	$	17,463

December 31, 2018
Communications	$	1,139	$	55	$	21	$	1,173
Financial	2,707		101		47		2,761
Industrial and other companies	7,604		152		214		7,542
Energy	1,884		55		81		1,858
Utilities	2,974		80		74		2,980
Transportation	729		14		17		726
Total	$	17,037	$	457	$	454	$	17,040

Schedule of Securities Borrowed Under Securities Lending Transactions

The following table presents borrowings under securities lending transactions by asset class pledged for the dates indicated:



	March 31, 2019 ⁽¹⁾⁽²⁾		December 31, 2018 ⁽¹⁾⁽²⁾
U.S. Treasuries	$	118	$	92
U.S. corporate public securities	603		523
Foreign corporate public securities and foreign governments	196		170
Equity Securities	—		1
Payables under securities loan agreements	$	917	$	786

⁽¹⁾As of March 31, 2019 and December 31, 2018, borrowings under securities lending transactions include cash collateral of $811 and $719, respectively.

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of March 31, 2019:



	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	—	$	—	$	—	$	—	$	15	$	—	$	15	$	—
State, municipalities and political subdivisions	3		—		—		—		93		3		96		3
U.S. corporate public securities	132		3		283		6		883		46		1,298		55
U.S. corporate private securities	140		3		14		—		764		39		918		42
Foreign corporate public securities and foreign governments	67		1		85		3		495		28		647		32
Foreign corporate private securities	24		—		186		4		463		13		673		17
Residential mortgage-backed	313		4		45		—		463		14		821		18
Commercial mortgage-backed	237		2		79		1		355		11		671		14
Other asset-backed	318		4		389		9		95		3		802		16
Total	$	1,234	$	17	$	1,081	$	23	$	3,626	$	157	$	5,941	$	197



	Six Months or Less Below Amortized Cost				More Than Six Months and Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost				Total
	Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses		Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	—	$	—	$	—	$	—	$	15	$	—	$	15	$	—
State, municipalities and political subdivisions	60		—		131		3		88		5		279		8
U.S. corporate public securities	1,285		37		1,775		94		535		50		3,595		181
U.S. corporate private securities	639		13		863		27		579		66		2,081		106
Foreign corporate public securities and foreign governments	503		12		656		42		169		26		1,328		80
Foreign corporate private securities	604		10		900		67		221		20		1,725		97
Residential mortgage-backed	345		6		215		5		412		21		972		32
Commercial mortgage-backed	447		6		418		10		312		12		1,177		28
Other asset-backed	476		11		416		16		61		1		953		28
Total	$	4,359	$	95	$	5,374	$	264	$	2,392	$	201	$	12,125	$	560

Schedule of Mortgage Loans Real Estate and Valuation Allowance

The following table summarizes the Company's investment in mortgage loans as of the dates indicated:



	March 31, 2019								December 31, 2018
	Impaired		Non Impaired			Total			Impaired		Non Impaired			Total
Commercial mortgage loans	$	8	$	4,804		$	4,812		$	4	$	4,915		$	4,919
Collective valuation allowance for losses	N/A		(1		)	(1		)	N/A		(1		)	(1		)
Total net commercial mortgage loans	$	8	$	4,803		$	4,811		$	4	$	4,914		$	4,918
N/A- Not Applicable

Allowance for Credit Losses on Financing Receivables

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:



	March 31, 2019		December 31, 2018
Collective valuation allowance for losses, balance at January 1	$	1	$	1
Addition to (reduction of) allowance for losses	—		—
Collective valuation allowance for losses, end of period	$	1	$	1

Impaired Financing Receivables

The following table presents information on the average investment during the period in impaired loans and interest income recognized on impaired and troubled debt restructured loans for the periods indicated:



	Three Months Ended March 31,
	2019		2018
Impaired loans, average investment during the period (amortized cost)⁽¹⁾	$	6	$	4
Interest income recognized on impaired loans, on an accrual basis⁽¹⁾	—		—
Interest income recognized on impaired loans, on a cash basis⁽¹⁾	—		—
Interest income recognized on troubled debt restructured loans, on an accrual basis	—		—
⁽¹⁾Includes amounts for Troubled debt restructured loans.

The carrying values and unpaid principal balances of impaired mortgage loans were as follows as of the dates indicated:



	March 31, 2019		December 31, 2018
Impaired loans without allowances for losses	$	8	$	4
Less: Allowances for losses on impaired loans	—		—
Impaired loans, net	$	8	$	4
Unpaid principal balance of impaired loans	$	12	$	5

Loans Receivable, Grouped by Loan to Value and Debt Service Coverage Ratio

The following tables present the LTV and DSC ratios as of the dates indicated:



	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
March 31, 2019 ⁽¹⁾
Loan-to-Value Ratios:
0% - 50%	$	273	$	24	$	23	$	—	$	—	$	320	6.6	%
>50% - 60%	1,107		19		24		4		—		1,154		24.0	%
>60% - 70%	1,912		345		441		129		31		2,858		59.4	%
>70% - 80%	181		153		49		34		6		423		8.8	%
>80% and above	5		21		10		—		21		57		1.2	%
Total	$	3,478	$	562	$	547	$	167	$	58	$	4,812	100.0	%
⁽¹⁾ Balances do not include collective valuation allowance for losses.
	Recorded Investment
	Debt Service Coverage Ratios
	> 1.5x		>1.25x - 1.5x		>1.0x - 1.25x		< 1.0x		Commercial mortgage loans secured by land or construction loans		Total		% of Total
December 31, 2018 ⁽¹⁾
Loan-to-Value Ratios:
0% - 50%	$	284	$	24	$	23	$	—	$	—	$	331	6.7	%
>50% - 60%	1,133		40		11		—		—		1,184		24.1	%
>60% - 70%	2,070		328		503		34		26		2,961		60.2	%
>70% - 80%	213		87		66		19		4		389		7.9	%
>80% and above	18		5		10		—		21		54		1.1	%
Total	$	3,718	$	484	$	613	$	53	$	51	$	4,919	100.0	%
(1) Balances do not include collective valuation allowance for losses.

Mortgage Loans by Geographic Location of Collateral

Properties collateralizing mortgage loans are geographically dispersed throughout the United States, as well as diversified by property type, as reflected in the following tables as of the dates indicated:



	March 31, 2019				December 31, 2018
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by U.S. Region:
Pacific	$	1,003	20.8	%	$	994	20.2	%
South Atlantic	943		19.6	%	1,011		20.5	%
Middle Atlantic	1,033		21.5	%	1,039		21.2	%
West South Central	563		11.7	%	566		11.5	%
Mountain	459		9.5	%	458		9.3	%
East North Central	436		9.1	%	465		9.5	%
New England	90		1.9	%	75		1.5	%
West North Central	231		4.8	%	258		5.2	%
East South Central	54		1.1	%	53		1.1	%
Total Commercial mortgage loans	$	4,812	100.0	%	$	4,919	100.0	%

Mortgage Loans by Property Type of Collateral



	March 31, 2019				December 31, 2018
	Gross Carrying Value		% of Total		Gross Carrying Value		% of Total
Commercial Mortgage Loans by Property Type:
Retail	$	1,308	27.2	%	$	1,335	27.2	%
Industrial	1,299		27.0	%	1,323		26.9	%
Apartments	1,088		22.6	%	1,104		22.4	%
Office	747		15.5	%	791		16.1	%
Hotel/Motel	118		2.5	%	111		2.3	%
Mixed Use	45		0.9	%	46		0.9	%
Other	207		4.3	%	209		4.2	%
Total Commercial mortgage loans	$	4,812	100.0	%	$	4,919	100.0	%

Mortgage Loans by Year of Origination

The following table presents mortgages by year of origination as of the dates indicated:



	March 31, 2019 ⁽¹⁾		December 31, 2018 ⁽¹⁾
Year of Origination:
2019	$	97	$	—
2018	377		375
2017	1,066		1,108
2016	849		906
2015	586		589
2014	479		490
2013 and prior	1,358		1,451
Total Commercial mortgage loans	$	4,812	$	4,919

⁽¹⁾ Balances do not include collective valuation allowance for losses.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table identifies the Company's credit-related and intent-related impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:



	Three Months Ended March 31,
	2019				2018
	Impairment			No. of Securities	Impairment			No. of Securities
Foreign corporate private securities⁽¹⁾	$	18		3	$	9		1
Residential mortgage-backed	—		*	10	—		*	6
Other asset-backed	—		*	2	—			—
Total	$	18		15	$	9		7
⁽¹⁾ Primarily U.S. dollar denominated.
*Less than $1.

The following table presents the amount of credit impairments on fixed maturities for which a portion of the OTTI loss was recognized in Other comprehensive income (loss) and the corresponding changes in such amounts for the periods indicated:



	Three Months Ended March 31,
	2019		2018
Balance at January 1	$	5	$	16
Additional credit impairments:
On securities previously impaired	—		—
Reductions:
Increase in cash flows	—		—
Securities sold, matured, prepaid or paid down	—		10
Balance at March 31	$	5	$	6

Net Investment Income

The following table summarizes Net investment income for the periods indicated:



	Three Months Ended March 31,
	2019		2018
Fixed maturities	$	352	$	323
Equity securities	2		1
Mortgage loans on real estate	54		53
Policy loans	2		2
Short-term investments and cash equivalents	1		1
Other	1		19
Gross investment income	412		399
Less: Investment expenses	18		17
Net investment income	$	394	$	382

Realized Gain (Loss) on Investments

Net realized capital gains (losses) were as follows for the periods indicated:



	Three Months Ended March 31,
	2019			2018
Fixed maturities, available-for-sale, including securities pledged	$	(16	)	$	(14	)
Fixed maturities, at fair value option	24			(99		)
Equity securities	1			(2		)
Derivatives	(32		)	5
Embedded derivatives - fixed maturities	1			(2		)
Guaranteed benefit derivatives	—			20
Other investments	(2		)	5
Net realized capital gains (losses)	$	(24	)	$	(87	)

Gain (Loss) on Investments

Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:



	Three Months Ended March 31,
	2019		2018
Proceeds on sales	$	1,223	$	660
Gross gains	12		4
Gross losses	11		7

Duration

Available-for-sale Securities Including Securities Pledged [Line Items]

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, for instances in which fair value declined below amortized cost by greater than or less than 20% for consecutive months as indicated in the tables below, were as follows as of the dates indicated:



	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2019
Six months or less below amortized cost	$	1,405	$	22	$	34	$	5	277	10
More than six months and twelve months or less below amortized cost	1,108		—		24		—		218	6
More than twelve months below amortized cost	3,509		94		106		28		743	5
Total	$	6,022	$	116	$	164	$	33	1,238	21

December 31, 2018
Six months or less below amortized cost	$	4,531	$	88	$	106	$	21	826	25
More than six months and twelve months or less below amortized cost	5,535		73		235		27		1,063	6
More than twelve months below amortized cost	2,378		80		144		27		519	5
Total	$	12,444	$	241	$	485	$	75	2,408	36

Market Sector (Type of Security)

Available-for-sale Securities Including Securities Pledged [Line Items]

Schedule of Unrealized Loss on Investments

Unrealized capital losses (including noncredit impairments) in fixed maturities, including securities pledged, by market sector for instances in which fair value declined below amortized cost by greater than or less than 20% were as follows as of the dates indicated:



	Amortized Cost				Unrealized Capital Losses				Number of Securities
	< 20%		> 20%		< 20%		> 20%		< 20%	> 20%
March 31, 2019
U.S. Treasuries	$	15	$	—	$	—	$	—	5	—
State, municipalities and political subdivisions	99		—		3		—		51	—
U.S. corporate public securities	1,328		25		46		9		286	3
U.S. corporate private securities	894		66		24		18		105	2
Foreign corporate public securities and foreign governments	656		23		26		6		132	6
Foreign corporate private securities	690		—		17		—		64	—
Residential mortgage-backed	837		2		18		—		250	10
Commercial mortgage-backed	685		—		14		—		129	—
Other asset-backed	818		—		16		—		216	—
Total	$	6,022	$	116	$	164	$	33	1,238	21

December 31, 2018
U.S. Treasuries	$	15	$	—	$	—	$	—	5	—
State, municipalities and political subdivisions	287		—		8		—		132	—
U.S. corporate public securities	3,721		55		164		17		796	8
U.S. corporate private securities	2,120		67		84		22		245	2
Foreign corporate public securities and foreign governments	1,348		60		65		15		307	9
Foreign corporate private securities	1,765		57		76		21		157	6
Residential mortgage-backed	1,004		—		32		—		301	8
Commercial mortgage-backed	1,205		—		28		—		228	—
Other asset-backed	979		2		28		—		237	3
Total	$	12,444	$	241	$	485	$	75	2,408	36