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Investments (Tables)
 3 Months Ended
Mar. 31, 2019
Investments [Abstract]  
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)
 
Amortized cost
 
Gross unrealized
 
Fair
value
 
 
Gains
 
Losses
 
March 31, 2019
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,775

 
$
119

 
$
(2
)
 
$
3,892

Municipal
 
8,879

 
393

 
(8
)
 
9,264

Corporate
 
41,943

 
998

 
(242
)
 
42,699

Foreign government
 
732

 
21

 
(1
)
 
752

Asset-backed securities (“ABS”)
 
1,060

 
7

 
(9
)
 
1,058

Residential mortgage-backed securities (“RMBS”)
 
354

 
89

 
(1
)
 
442

Commercial mortgage-backed securities (“CMBS”)
 
67

 
7

 
(1
)
 
73

Redeemable preferred stock
 
21

 
1

 
—

 
22

Total fixed income securities
 
$
56,831

 
$
1,635

 
$
(264
)
 
$
58,202

 
 
 
 
 
 
 
 
 
December 31, 2018
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
5,386

 
$
137

 
$
(6
)
 
$
5,517

Municipal
 
8,963

 
249

 
(43
)
 
9,169

Corporate
 
40,536

 
490

 
(890
)
 
40,136

Foreign government
 
739

 
13

 
(5
)
 
747

ABS
 
1,049

 
6

 
(10
)
 
1,045

RMBS
 
377

 
89

 
(2
)
 
464

CMBS
 
63

 
8

 
(1
)
 
70

Redeemable preferred stock
 
21

 
1

 
—

 
22

Total fixed income securities
 
$
57,134

 
$
993

 
$
(957
)
 
$
57,170
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
($ in millions)
 
As of March 31, 2019
 
Amortized cost
 
Fair value
Due in one year or less
 
$
3,309

 
$
3,324

Due after one year through five years
 
26,701

 
26,996

Due after five years through ten years
 
16,622

 
16,946

Due after ten years
 
8,718

 
9,363

 
 
55,350

 
56,629

ABS, RMBS and CMBS
 
1,481

 
1,573

Total
 
$
56,831

 
$
58,202
Schedule of net investment income
Net investment income
($ in millions)
 
Three months ended March 31,
 
2019
 
2018
Fixed income securities
 
$
538

 
$
508

Equity securities
 
30

 
34

Mortgage loans
 
53

 
51

Limited partnership interests
 
9

 
180

Short-term investments
 
26

 
12

Other
 
63

 
66

Investment income, before expense
 
719

 
851

Investment expense
 
(71
)
 
(65
)
Net investment income 
 
$
648

 
$
786
Schedule of realized capital gains and losses by asset type
Realized capital gains (losses) by asset type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2019
 
2018
Fixed income securities
 
$
64

 
$
(43
)
Equity securities
 
553

 
(93
)
Limited partnership interests
 
72

 
10

Derivatives
 
(46
)
 
(8
)
Other
 
19

 
—

Realized capital gains and losses
 
$
662

 
$
(134
)
Schedule of realized capital gains and losses by transaction type
Realized capital gains (losses) by transaction type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2019
 
2018
Impairment write-downs
 
$
(14
)
 
$
(1
)
Change in intent write-downs
 
—

 
—

Net OTTI losses recognized in earnings
 
(14
)
 
(1
)
Sales
 
95

 
(42
)
Valuation of equity investments (1)
 
627

 
(83
)
Valuation and settlements of derivative instruments
 
(46
)
 
(8
)
Realized capital gains and losses
 
$
662

 
$
(134
)

(1) 
Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities
Valuation changes included in net income for investments The following table presents the net pre-tax appreciation (decline) during 2019 and 2018 of equity securities and limited partnership interests carried at fair value still held as of March 31, 2019 and March 31, 2018 recognized in net income.
Net appreciation (decline) recognized in net income
 
 
($ in millions)
 
Three months ended March 31,
 
2019
 
2018
Equity securities
 
$
496

 
$
(49
)
Limited partnership interests carried at fair value 
 
(33
)
 
78

Total
 
$
463

 
$
29
Schedule of other-than-temporary impairment losses by asset type
OTTI losses by asset type
($ in millions)
 
Three months ended
 
Three months ended
 
March 31, 2019
 
March 31, 2018
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Corporate
 
(2
)
 
2

 
—

 
—

 
—

 
—

ABS
 
(2
)
 
1

 
(1
)
 
—

 
—

 
—

RMBS
 
—

 
(1
)
 
(1
)
 
—

 
—

 
—

CMBS
 
—

 
—

 
—

 
—

 
(1
)
 
(1
)
Total fixed income securities
 
(4
)
 
2

 
(2
)
 
—

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

 
(1
)
 
—

 
—

 
—

Other
 
(11
)
 
—

 
(11
)
 
—

 
—

 
—

OTTI losses
 
$
(16
)
 
$
2

 
$
(14
)
 
$
—

 
$
(1
)
 
$
(1
)
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 which were not included in earnings
($ in millions)
 
March 31, 2019
 
December 31, 2018
Municipal
 
$
(5
)
 
$
(5
)
Corporate
 
(3
)
 
(2
)
ABS
 
(11
)
 
(10
)
RMBS
 
(64
)
 
(67
)
CMBS
 
(2
)
 
(2
)
Total
 
$
(85
)
 
$
(86
)
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 March 31,
($ in millions)
 
Three months ended March 31,
 
2019
 
2018
Beginning balance
 
$
(204
)
 
$
(226
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(2
)
 
(1
)
Reduction in credit loss for securities disposed or collected
 
4

 
15

Ending balance
 
$
(202
)
 
$
(212
)
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)
March 31, 2019
 
 
Gains
 
Losses
 
Fixed income securities
 
$
58,202

 
$
1,635

 
$
(264
)
 
$
1,371

Short-term investments
 
4,157

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
1,368

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (1)
 
 

 
 

 
 

 
(8
)
DAC and DSI (2)
 
 

 
 

 
 

 
(124
)
Amounts recognized
 
 

 
 

 
 

 
(132
)
Deferred income taxes
 
 

 
 

 
 

 
(264
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
972


(1) 
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).
(2) 
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, 2018
 
 
Gains
 
Losses
 
Fixed income securities
 
$
57,170

 
$
993

 
$
(957
)
 
$
36

Short-term investments
 
3,027

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
33

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves
 
 

 
 

 
 

 
—

DAC and DSI
 
 

 
 

 
 

 
(33
)
Amounts recognized
 
 

 
 

 
 

 
(33
)
Deferred income taxes
 
 

 
 

 
 

 
(2
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
(2
)
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains (losses)
($ in millions)
 
Three months ended March 31, 2019
Fixed income securities
 
$
1,335

Derivative instruments
 
—

Total
 
1,335

Amounts recognized for:
 
 

Insurance reserves
 
(8
)
DAC and DSI
 
(91
)
Amounts recognized
 
(99
)
Deferred income taxes
 
(262
)
Increase in unrealized net capital gains and losses, after-tax
 
$
974
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
 
March 31, 2019
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
9

 
$
112

 
$
—

 
39

 
$
259

 
$
(2
)
 
$
(2
)
Municipal
 
102

 
208

 
—

 
600

 
742

 
(8
)
 
(8
)
Corporate
 
304

 
3,249

 
(42
)
 
807

 
10,382

 
(200
)
 
(242
)
Foreign government
 
—

 
—

 
—

 
11

 
218

 
(1
)
 
(1
)
ABS
 
36

 
283

 
(4
)
 
34

 
146

 
(5
)
 
(9
)
RMBS
 
81

 
12

 
—

 
194

 
49

 
(1
)
 
(1
)
CMBS
 
4

 
11

 
(1
)
 
1

 
—

 
—

 
(1
)
Total fixed income securities
 
536

 
$
3,875

 
$
(47
)
 
1,686

 
$
11,796

 
$
(217
)
 
$
(264
)
Investment grade fixed income securities
 
404

 
$
3,077

 
$
(22
)
 
1,550

 
$
10,853

 
$
(170
)
 
$
(192
)
Below investment grade fixed income securities
 
132

 
798

 
(25
)
 
136

 
943

 
(47
)
 
(72
)
Total fixed income securities
 
536

 
$
3,875

 
$
(47
)
 
1,686

 
$
11,796

 
$
(217
)
 
$
(264
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
11

 
$
55

 
$
—

 
38

 
$
364

 
$
(6
)
 
$
(6
)
Municipal
 
943

 
1,633

 
(10
)
 
1,147

 
1,554

 
(33
)
 
(43
)
Corporate
 
1,735

 
19,243

 
(543
)
 
645

 
8,374

 
(347
)
 
(890
)
Foreign government
 
7

 
20

 
(1
)
 
27

 
412

 
(4
)
 
(5
)
ABS
 
64

 
454

 
(5
)
 
28

 
161

 
(5
)
 
(10
)
RMBS
 
166

 
30

 
—

 
195

 
52

 
(2
)
 
(2
)
CMBS
 
3

 
7

 
—

 
2

 
—

 
(1
)
 
(1
)
Redeemable preferred stock
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
2,930

 
$
21,442

 
$
(559
)
 
2,082

 
$
10,917

 
$
(398
)
 
$
(957
)
Investment grade fixed income securities
 
2,348

 
$
17,485

 
$
(331
)
 
2,021

 
$
10,626

 
$
(360
)
 
$
(691
)
Below investment grade fixed income securities
 
582

 
3,957

 
(228
)
 
61

 
291

 
(38
)
 
(266
)
Total fixed income securities
 
2,930

 
$
21,442

 
$
(559
)
 
2,082

 
$
10,917

 
$
(398
)
 
$
(957
)
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)
 
March 31, 2019
 
December 31, 2018
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
 
$
22

 
$
31

 
$
53

 
$
6

 
$
31

 
$
37

1.0 - 1.25
 
256

 
—

 
256

 
273

 
—

 
273

1.26 - 1.50
 
1,157

 
—

 
1,157

 
1,192

 
—

 
1,192

Above 1.50
 
3,110

 
101

 
3,211

 
3,063

 
101

 
3,164

Total non-impaired mortgage loans
 
$
4,545

 
$
132

 
$
4,677

 
$
4,534

 
$
132

 
$
4,666
Net carrying value of impaired mortgage loans
Net carrying value of impaired mortgage loans
($ in millions)
 
March 31, 2019
 
December 31, 2018
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)
 
March 31, 2019
 
December 31, 2018
Bank loans
 
$
1,300

 
$
1,350

Policy loans
 
885

 
891

Real estate
 
776

 
791

Agent loans
 
639

 
620

Derivatives and other
 
186

 
200

Total
 
$
3,786

 
$
3,852