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Investments (Tables)
 6 Months Ended
Jun. 30, 2018
Investments [Abstract]  
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
($ in millions)
 
Amortized cost
 
Gross unrealized
 
Fair
value
 
 
Gains
 
Losses
 
June 30, 2018
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,182

 
$
40

 
$
(16
)
 
$
3,206

Municipal
 
9,454

 
245

 
(71
)
 
9,628

Corporate
 
41,584

 
590

 
(759
)
 
41,415

Foreign government
 
917

 
18

 
(9
)
 
926

Asset-backed securities (“ABS”)
 
1,084

 
9

 
(8
)
 
1,085

Residential mortgage-backed securities (“RMBS”)
 
424

 
98

 
(2
)
 
520

Commercial mortgage-backed securities (“CMBS”)
 
84

 
6

 
(2
)
 
88

Redeemable preferred stock
 
21

 
2

 
—

 
23

Total fixed income securities
 
$
56,750

 
$
1,008

 
$
(867
)
 
$
56,891

 
 
 
 
 
 
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,580

 
$
56

 
$
(20
)
 
$
3,616

Municipal
 
8,053

 
311

 
(36
)
 
8,328

Corporate
 
42,996

 
1,234

 
(204
)
 
44,026

Foreign government
 
1,005

 
27

 
(11
)
 
1,021

ABS
 
1,266

 
13

 
(7
)
 
1,272

RMBS
 
480

 
101

 
(3
)
 
578

CMBS
 
124

 
6

 
(2
)
 
128

Redeemable preferred stock
 
21

 
2

 
—

 
23

Total fixed income securities
 
$
57,525

 
$
1,750

 
$
(283
)
 
$
58,992
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
($ in millions)
 
As of June 30, 2018
 
Amortized cost
 
Fair value
Due in one year or less
 
$
4,289

 
$
4,293

Due after one year through five years
 
28,481

 
28,384

Due after five years through ten years
 
15,933

 
15,673

Due after ten years
 
6,455

 
6,848

 
 
55,158

 
55,198

ABS, RMBS and CMBS
 
1,592

 
1,693

Total
 
$
56,750

 
$
56,891
Schedule of net investment income
Net investment income
 
 
 
 
($ in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Fixed income securities
 
$
509

 
$
527

 
$
1,017

 
$
1,045

Equity securities
 
61

 
49

 
95

 
93

Mortgage loans
 
60

 
50

 
111

 
105

Limited partnership interests (1)(2)
 
173

 
253

 
353

 
373

Short-term investments
 
19

 
6

 
31

 
12

Other
 
68

 
60

 
134

 
116

Investment income, before expense
 
890

 
945

 
1,741

 
1,744

Investment expense
 
(66
)
 
(48
)
 
(131
)
 
(99
)
Net investment income 
 
$
824

 
$
897

 
$
1,610

 
$
1,645


(1) 
Due to the adoption of the recognition and measurement accounting standard, limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net investment income.
(2) 
Includes net investment income of $143 million and $246 million for EMA limited partnership interests and $30 million and $107 million for limited partnership interests carried at fair value for the three and six months ended June 30, 2018, respectively.
Schedule of realized capital gains and losses by asset type
Realized capital gains and losses by asset type
 
 
 
 
 
 
 
 
($ in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Fixed income securities
 
$
(80
)
 
$
32

 
$
(123
)
 
$
37

Equity securities
 
74

 
19

 
(19
)
 
125

Mortgage loans
 
2

 
—

 
2

 
—

Limited partnership interests
 
(43
)
 
31

 
(33
)
 
71

Derivatives
 
23

 
(8
)
 
15

 
(23
)
Other
 
(1
)
 
7

 
(1
)
 
5

Realized capital gains and losses
 
$
(25
)
 
$
81

 
$
(159
)
 
$
215
Schedule of realized capital gains and losses by transaction type
Realized capital gains and losses by transaction type
 
 
 
 
 
 
 
 
($ in millions)
 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Impairment write-downs (1)
 
$
(4
)
 
$
(28
)
 
$
(5
)
 
$
(71
)
Change in intent write-downs (1)
 
—

 
(22
)
 
—

 
(38
)
Net OTTI losses recognized in earnings
 
(4
)
 
(50
)
 
(5
)
 
(109
)
Sales (1)
 
(75
)
 
139

 
(117
)
 
347

Valuation of equity investments (1)
 
34

 
—

 
(49
)
 
—

Valuation and settlements of derivative instruments
 
20

 
(8
)
 
12

 
(23
)
Realized capital gains and losses
 
$
(25
)
 
$
81

 
$
(159
)
 
$
215

(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities are reported at fair value with changes in fair value recognized in valuation of equity investments and are no longer included in impairment write-downs, change in intent write-downs and sales.
Valuation changes included in net income for investments
Valuation changes included in net income for investments still held as of June 30, 2018
($ in millions)
 
Three months ended
June 30, 2018
 
Six months ended
June 30, 2018
Equity securities (1)
 
$
94

 
$
71

Limited partnership interests carried at fair value (1)
 
28

 
106

Total valuation changes
 
$
122

 
$
177

(1) 
Investments held at the end of a prior quarter that were sold in the current quarter are not included in the year-to-date amounts shown in the table above; therefore, the sum of the quarterly amounts may not equal the year-to-date amount.
Schedule of other-than-temporary impairment losses by asset type
OTTI losses by asset type
($ in millions)
 
Three months ended June 30, 2018
 
Three months ended June 30, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(2
)
 
$
(3
)
ABS
 
(1
)
 
—

 
(1
)
 
(1
)
 
—

 
(1
)
RMBS
 
(1
)
 
—

 
(1
)
 
—

 
—

 
—

CMBS
 
—

 
—

 
—

 
(2
)
 
(1
)
 
(3
)
Total fixed income securities
 
(2
)
 
—

 
(2
)
 
(4
)
 
(3
)
 
(7
)
Equity securities (1)
 
—

 
—

 
—

 
(32
)
 
—

 
(32
)
Limited partnership interests (1)
 
(1
)
 
—

 
(1
)
 
(9
)
 
—

 
(9
)
Other
 
(1
)
 
—

 
(1
)
 
(2
)
 
—

 
(2
)
OTTI losses
 
$
(4
)
 
$
—

 
$
(4
)
 
$
(47
)
 
$
(3
)
 
$
(50
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2018
 
Six months ended June 30, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(2
)
 
$
(3
)
Corporate
 
—

 
—

 
—

 
(9
)
 
3

 
(6
)
ABS
 
(1
)
 
—

 
(1
)
 
(1
)
 
—

 
(1
)
RMBS
 
(1
)
 
—

 
(1
)
 
(1
)
 
(3
)
 
(4
)
CMBS
 
—

 
(1
)
 
(1
)
 
(8
)
 
2

 
(6
)
Total fixed income securities
 
(2
)
 
(1
)
 
(3
)
 
(20
)
 
—

 
(20
)
Equity securities (1)
 
—

 
—

 
—

 
(68
)
 
—

 
(68
)
Limited partnership interests (1)
 
(1
)
 
—

 
(1
)
 
(16
)
 
—

 
(16
)
Other
 
(1
)
 
—

 
(1
)
 
(5
)
 
—

 
(5
)
OTTI losses
 
$
(4
)
 
$
(1
)
 
$
(5
)
 
$
(109
)
 
$
—

 
$
(109
)
(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities and limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net income and are no longer included in the table above.
Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income
OTTI losses included in AOCI at the time of impairment for fixed income securities
($ in millions)
 
June 30, 2018
 
December 31, 2017
Municipal
 
$
(5
)
 
$
(5
)
ABS
 
(12
)
 
(15
)
RMBS
 
(71
)
 
(77
)
CMBS
 
(4
)
 
(4
)
Total
 
$
(92
)
 
$
(101
)
Schedule of credit losses on fixed income securities recognized in earnings
Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held as of June 30,
($ in millions)
 
Three months ended
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Beginning balance
 
$
(212
)
 
$
(294
)
 
$
(226
)
 
$
(318
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(1
)
 
(6
)
 
(2
)
 
(13
)
Additional credit loss for securities not previously other-than-temporarily impaired
 
(1
)
 
(1
)
 
(1
)
 
(7
)
Reduction in credit loss for securities disposed or collected
 
7

 
19

 
22

 
56

Change in credit loss due to accretion of increase in cash flows
 
1

 
1

 
1

 
1

Ending balance
 
$
(206
)
 
$
(281
)
 
$
(206
)
 
$
(281
)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
June 30, 2018
 
 
Gains
 
Losses
 
Fixed income securities
 
$
56,891

 
$
1,008

 
$
(867
)
 
$
141

Short-term investments
 
3,123

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
EMA limited partnerships (1)
 
 

 
 

 
 

 
3

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
141

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (2)
 
 

 
 

 
 

 
—

DAC and DSI (3)
 
 

 
 

 
 

 
(72
)
Amounts recognized
 
 

 
 

 
 

 
(72
)
Deferred income taxes
 
 

 
 

 
 

 
(15
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
54


(1) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.
(2) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).
(3) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
December 31, 2017
 
 
Gains
 
Losses
 
Fixed income securities
 
$
58,992

 
$
1,750

 
$
(283
)
 
$
1,467

Equity securities
 
6,621

 
1,172

 
(12
)
 
1,160

Short-term investments
 
1,944

 
—

 
—

 
—

Derivative instruments (1)
 
2

 
2

 
(3
)
 
(1
)
EMA limited partnerships
 
 

 
 

 
 

 
1

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
2,627

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves
 
 

 
 

 
 

 
(315
)
DAC and DSI
 
 

 
 

 
 

 
(196
)
Amounts recognized
 
 

 
 

 
 

 
(511
)
Deferred income taxes
 
 

 
 

 
 

 
(454
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
1,662

(1) Included in the fair value of derivative instruments is $2 million classified as liabilities.
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains and losses
($ in millions)
 
Six months ended June 30, 2018
Fixed income securities
 
$
(1,326
)
Equity securities (1)
 
—

Derivative instruments
 
(2
)
EMA limited partnerships
 
2

Total
 
(1,326
)
Amounts recognized for:
 
 

Insurance reserves
 
315

DAC and DSI
 
124

Amounts recognized
 
439

Deferred income taxes
 
189

Decrease in unrealized net capital gains and losses, after-tax
 
$
(698
)
(1) Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.  See Note 1 of the condensed consolidated financial statements.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position

($ in millions)
 
Less than 12 months
 
12 months or more
 
Total
unrealized
losses
 
Number
of issues
 
Fair
value
 
Unrealized
losses
 
Number
of issues
 
Fair
value
 
Unrealized
losses
 
June 30, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
67

 
$
2,022

 
$
(15
)
 
11

 
$
55

 
$
(1
)
 
$
(16
)
Municipal
 
2,456

 
4,039

 
(57
)
 
151

 
268

 
(14
)
 
(71
)
Corporate
 
1,888

 
24,450

 
(603
)
 
240

 
2,878

 
(156
)
 
(759
)
Foreign government
 
15

 
84

 
—

 
27

 
448

 
(9
)
 
(9
)
ABS
 
76

 
505

 
(5
)
 
8

 
13

 
(3
)
 
(8
)
RMBS
 
143

 
35

 
(1
)
 
181

 
40

 
(1
)
 
(2
)
CMBS
 
2

 
11

 
—

 
5

 
10

 
(2
)
 
(2
)
Redeemable preferred stock
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
4,648

 
$
31,146

 
$
(681
)
 
623

 
$
3,712

 
$
(186
)
 
$
(867
)
Investment grade fixed income securities
 
4,218

 
$
27,970

 
$
(573
)
 
575

 
$
3,537

 
$
(168
)
 
$
(741
)
Below investment grade fixed income securities
 
430

 
3,176

 
(108
)
 
48

 
175

 
(18
)
 
(126
)
Total fixed income securities
 
4,648

 
$
31,146

 
$
(681
)
 
623

 
$
3,712

 
$
(186
)
 
$
(867
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
66

 
$
2,829

 
$
(18
)
 
18

 
$
182

 
$
(2
)
 
$
(20
)
Municipal
 
1,756

 
3,143

 
(24
)
 
165

 
349

 
(12
)
 
(36
)
Corporate
 
781

 
11,616

 
(102
)
 
208

 
3,289

 
(102
)
 
(204
)
Foreign government
 
45

 
580

 
(10
)
 
5

 
44

 
(1
)
 
(11
)
ABS
 
57

 
476

 
(3
)
 
9

 
34

 
(4
)
 
(7
)
RMBS
 
118

 
35

 
(1
)
 
181

 
50

 
(2
)
 
(3
)
CMBS
 
2

 
1

 
—

 
6

 
23

 
(2
)
 
(2
)
Redeemable preferred stock
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
2,826

 
18,680

 
(158
)
 
592

 
3,971

 
(125
)
 
(283
)
Equity securities
 
127

 
369

 
(12
)
 
2

 
—

 
—

 
(12
)
Total fixed income and equity securities
 
2,953

 
$
19,049

 
$
(170
)
 
594

 
$
3,971

 
$
(125
)
 
$
(295
)
Investment grade fixed income securities
 
2,706

 
$
17,668

 
$
(134
)
 
535

 
$
3,751

 
$
(98
)
 
$
(232
)
Below investment grade fixed income securities
 
120

 
1,012

 
(24
)
 
57

 
220

 
(27
)
 
(51
)
Total fixed income securities
 
2,826

 
$
18,680

 
$
(158
)
 
592

 
$
3,971

 
$
(125
)
 
$
(283
)
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution
Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
($ in millions)
 
June 30, 2018
 
December 31, 2017
Debt service coverage ratio distribution
 
Fixed rate
mortgage
loans
 
Variable rate
mortgage
loans
 
Total
 
Fixed rate
mortgage
loans
 
Variable rate
mortgage
loans
 
Total
Below 1.0
 
$
3

 
$
30

 
$
33

 
$
3

 
$
—

 
$
3

1.0 - 1.25
 
324

 
—

 
324

 
345

 
—

 
345

1.26 - 1.50
 
1,164

 
—

 
1,164

 
1,141

 
30

 
1,171

Above 1.50
 
2,909

 
101

 
3,010

 
2,949

 
62

 
3,011

Total non-impaired mortgage loans
 
$
4,400

 
$
131

 
$
4,531

 
$
4,438

 
$
92

 
$
4,530
Net carrying value of impaired mortgage loans
Net carrying value of impaired mortgage loans
($ in millions)
 
June 30, 2018
 
December 31, 2017
Impaired mortgage loans with a valuation allowance
 
$
4

 
$
4

Impaired mortgage loans without a valuation allowance
 
—

 
—

Total impaired mortgage loans
 
$
4

 
$
4

Valuation allowance on impaired mortgage loans
 
$
3

 
$
3
Schedule of other investments by type
Other investments by asset type
($ in millions)
 
June 30, 2018
 
December 31, 2017
Bank loans
 
$
1,702

 
$
1,702

Policy loans
 
894

 
905

Real estate
 
769

 
632

Agent loans
 
570

 
538

Other
 
190

 
195

Total
 
$
4,125

 
$
3,972