Investments

12 Months Ended

Dec. 31, 2015

Investments [Abstract]

Investments

INVESTMENTS

Fixed Maturities and Equity Securities

The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated:

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(4)
	(in millions)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	14,992	$	3,544	$	19	$	18,517	$	0
Obligations of U.S. states and their political subdivisions	8,089		747		41		8,795		0
Foreign government bonds	71,849		12,011		147		83,713		1
U.S. corporate public securities	70,979		6,344		1,955		75,368		(3		)
U.S. corporate private securities(1)	28,525		2,278		359		30,444		0
Foreign corporate public securities	26,354		2,821		621		28,554		0
Foreign corporate private securities	19,393		739		994		19,138		0
Asset-backed securities(2)	10,121		226		121		10,226		(452		)
Commercial mortgage-backed securities	10,337		195		70		10,462		(1		)
Residential mortgage-backed securities(3)	4,777		335		6		5,106		(4		)
Total fixed maturities, available-for-sale(1)	$	265,416	$	29,240	$	4,333	$	290,323	$	(459	)
Equity securities, available-for-sale	$	6,847	$	2,570	$	143	$	9,274

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity
Foreign government bonds	$	816	$	196	$	0	$	1,012
Foreign corporate public securities	625		62		0		687
Foreign corporate private securities(5)	78		4		0		82
Commercial mortgage-backed securities	33		1		0		34
Residential mortgage-backed securities(3)	756		53		0		809
Total fixed maturities, held-to-maturity(5)	$	2,308	$	316	$	0	$	2,624

__________

(1) Excludes notes with amortized cost of $1,050 million (fair value, $1,039 million) which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $693 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.

(5) Excludes notes with amortized cost of $3,850 million (fair value, $4,081 million) which have been offset with the associated payables under a netting agreement.

	December 31, 2014(6)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		OTTI in AOCI(4)
	(in millions)
Fixed maturities, available-for-sale
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	15,807	$	4,321	$	5	$	20,123	$	0
Obligations of U.S. states and their political subdivisions	5,720		814		3		6,531		0
Foreign government bonds	69,894		11,164		117		80,941		(1		)
U.S. corporate public securities	70,960		9,642		536		80,066		(6		)
U.S. corporate private securities(1)	27,767		3,082		89		30,760		0
Foreign corporate public securities	27,515		3,768		214		31,069		0
Foreign corporate private securities	17,389		1,307		215		18,481		0
Asset-backed securities(2)	10,966		353		134		11,185		(592		)
Commercial mortgage-backed securities	13,486		430		39		13,877		(1		)
Residential mortgage-backed securities(3)	5,612		448		3		6,057		(5		)
Total fixed maturities, available-for-sale(1)	$	265,116	$	35,329	$	1,355	$	299,090	$	(605	)
Equity securities, available-for-sale	$	6,921	$	3,023	$	83	$	9,861

	December 31, 2014(6)
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity
Foreign government bonds	$	821	$	184	$	0	$	1,005
Foreign corporate public securities	635		64		1		698
Foreign corporate private securities(5)	78		4		0		82
Commercial mortgage-backed securities	78		7		0		85
Residential mortgage-backed securities(3)	963		69		0		1,032
Total fixed maturities, held-to-maturity(5)	$	2,575	$	328	$	1	$	2,902

 __________

(1) Excludes notes with amortized cost of $385 million (fair value, $385 million) which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.

(3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $954 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.

(5) Excludes notes with amortized cost of $3,588 million (fair value, $3,953 million) which have been offset with the associated payables under a netting agreement.

(6) Prior period amounts are presented on a basis consistent with the current period presentation.

The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2015, are as follows:

	December 31, 2015
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Due in one year or less	$	8,599	$	9,200	$	0	$	0
Due after one year through five years	46,088		50,303		73		78
Due after five years through ten years	57,566		62,024		437		485
Due after ten years(1)	127,928		143,002		1,009		1,218
Asset-backed securities	10,121		10,226		0		0
Commercial mortgage-backed securities	10,337		10,462		33		34
Residential mortgage-backed securities	4,777		5,106		756		809
Total	$	265,416	$	290,323	$	2,308	$	2,624

 __________

(1) Excludes available-for-sale notes with amortized cost of $1,050 million (fair value, $1,039 million) and held-to-maturity notes with amortized cost of $3,850 million (fair value, $4,081 million), which have been offset with the associated payables under a netting agreement.

Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed, and residential mortgage-backed securities are shown separately in the table above, as they are not due at a single maturity date.

The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities:

	2015			2014			2013
	(in millions)
Fixed maturities, available-for-sale
Proceeds from sales	$	27,679		$	28,359		$	37,248
Proceeds from maturities/repayments	19,559			21,040			23,573
Gross investment gains from sales, prepayments, and maturities	2,115			1,664			1,571
Gross investment losses from sales and maturities	(340		)	(414		)	(1,465		)
Fixed maturities, held-to-maturity
Gross investment gains from prepayments	$	0		$	0		$	0
Proceeds from maturities/repayments	235			415			583
Equity securities, available-for-sale
Proceeds from sales	$	4,589		$	4,993		$	4,235
Gross investment gains from sales	746			676			554
Gross investment losses from sales	(169		)	(132		)	(94		)
Fixed maturity and equity security impairments
Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(1)	$	(141	)	$	(56	)	$	(200	)
Writedowns for impairments on equity securities	(126		)	(32		)	(15		)

 __________

(1) Excludes the portion of OTTI recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.

As discussed in Note 2, a portion of certain OTTI losses on fixed maturity securities is recognized in “Other comprehensive income (loss)”. For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in “Other comprehensive income (loss)”. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in “Other comprehensive income (loss)”, and the corresponding changes in such amounts:

	Year Ended December 31,
	2015			2014
	(in millions)
Balance, beginning of period	$	781		$	968
Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period	(243		)	(230		)
Credit loss impairments previously recognized on securities impaired to fair value during the period(1)	(20		)	(6		)
Credit loss impairments recognized in the current period on securities not previously impaired	3			16
Additional credit loss impairments recognized in the current period on securities previously impaired	3			6
Increases due to the passage of time on previously recorded credit losses	20			42
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	(12		)	(15		)
Balance, end of period	$	532		$	781

 __________

(1) Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Trading Account Assets Supporting Insurance Liabilities

The following table sets forth the composition of “Trading account assets supporting insurance liabilities” as of the dates indicated:

	December 31, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Short-term investments and cash equivalents	$	765	$	765	$	196	$	196
Fixed maturities:
Corporate securities	12,797		12,851		11,922		12,439
Commercial mortgage-backed securities	1,860		1,862		2,505		2,546
Residential mortgage-backed securities(1)	1,411		1,428		1,640		1,676
Asset-backed securities(2)	1,295		1,299		1,180		1,198
Foreign government bonds	680		694		621		650
U.S. government authorities and agencies and obligations of U.S. states	326		369		303		372
Total fixed maturities	18,369		18,503		18,171		18,881
Equity securities	1,030		1,254		896		1,186
Total trading account assets supporting insurance liabilities	$	20,164	$	20,522	$	19,263	$	20,263

 __________

(1) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.

(2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

The net change in unrealized gains (losses) from trading account assets supporting insurance liabilities still held at period end, recorded within “Other income,” was $(642) million, $144 million and $(485) million during the years ended December 31, 2015, 2014 and 2013, respectively.

Other Trading Account Assets

The following table sets forth the composition of the “Other trading account assets” as of the dates indicated:

	December 31, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Short-term investments and cash equivalents	$	26	$	26	$	27	$	27
Fixed maturities	11,132		10,764		8,306		8,282
Equity securities	1,006		1,098		992		1,105
Other	12		15		7		11
Subtotal	$	12,176	11,903		$	9,332	9,425
Derivative instruments			2,555				1,449
Total other trading account assets			$	14,458			$	10,874

The net change in unrealized gains (losses) from other trading account assets, excluding derivative instruments, still held at period end, recorded within “Other income,” was $(366) million, $(108) million and $188 million during the years ended December 31, 2015, 2014 and 2013, respectively.

Concentrations of Financial Instruments

The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer.

As of both December 31, 2015 and 2014, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government, certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below.

	December 31, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in Japanese government and government agency securities:
Fixed maturities, available-for-sale	$	53,851	$	61,911	$	52,703	$	60,379
Fixed maturities, held-to-maturity	796		988		801		981
Trading account assets supporting insurance liabilities	492		502		457		470
Other trading account assets	33		33		36		36
Short-term investments	0		0		0		0
Cash equivalents	0		0		0		0
Total	$	55,172	$	63,434	$	53,997	$	61,866
	December 31, 2015				December 31, 2014
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in South Korean government and government agency securities:
Fixed maturities, available-for-sale	$	7,191	$	9,233	$	6,927	$	8,438
Fixed maturities, held-to-maturity	0		0		0		0
Trading account assets supporting insurance liabilities	44		44		49		50
Other trading account assets	0		0		0		0
Short-term investments	0		0		0		0
Cash equivalents	0		0		0		0
Total	$	7,235	$	9,277	$	6,976	$	8,488

Commercial Mortgage and Other Loans

The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated:

	December 31, 2015					December 31, 2014
	Amount (in millions)			% of Total		Amount (in millions)			% of Total
Commercial mortgage and agricultural property loans by property type:
Office	$	11,226		22.9	%	$	9,612		21.5	%
Retail	8,917			18.2		8,765			19.6
Apartments/Multi-Family	12,034			24.5		10,369			23.2
Industrial	7,775			15.9		7,628			16.9
Hospitality	2,513			5.1		2,270			5.1
Other	3,722			7.6		3,659			8.2
Total commercial mortgage loans	46,187			94.2		42,303			94.5
Agricultural property loans	2,859			5.8		2,445			5.5
Total commercial mortgage and agricultural property loans by property type	49,046			100.0	%	44,748			100.0	%
Valuation allowance	(99		)			(105		)
Total net commercial mortgage and agricultural property loans by property type	48,947					44,643
Other loans:
Uncollateralized loans	1,012					1,092
Residential property loans	301					392
Other collateralized loans	312					319
Total other loans	1,625					1,803
Valuation allowance	(13		)			(14		)
Total net other loans	1,612					1,789
Total commercial mortgage and other loans(1)	$	50,559				$	46,432

 __________

(1) Includes loans held at fair value.

The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States (with the largest concentrations in California (26%), New York (9%) and Texas (9%)), and include loans secured by properties in Europe (4%) and Asia (1%) at December 31, 2015.

Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows:

	December 31, 2015
	Commercial Mortgage Loans			Agricultural Property Loans		Residential Property Loans			Other Collateralized Loans		Uncollateralized Loans		Total
	(in millions)
Allowance for credit losses, beginning of year	$	104		$	1	$	5		$	0	$	9	$	119
Addition to (release of) allowance of losses	(7		)	1		(2		)	0		1		(7		)
Charge-offs, net of recoveries	0			0		0			0		0		0
Change in foreign exchange	0			0		0			0		0		0
Total ending balance	$	97		$	2	$	3		$	0	$	10	$	112

	December 31, 2014
	Commercial Mortgage Loans			Agricultural Property Loans			Residential Property Loans			Other Collateralized Loans			Uncollateralized Loans			Total
	(in millions)
Allowance for credit losses, beginning of year	$	188		$	7		$	6		$	3		$	12		$	216
Addition to (release of) allowance of losses	(77		)	(6		)	(1		)	(1		)	(2		)	(87		)
Charge-offs, net of recoveries	(7		)	0			0			(2		)	0			(9		)
Change in foreign exchange	0			0			0			0			(1		)	(1		)
Total ending balance	$	104		$	1		$	5		$	0		$	9		$	119

The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans as of the dates indicated:

	December 31, 2015
	Commercial Mortgage Loans		Agricultural Property Loans		Residential Property Loans		Other Collateralized Loans		Uncollateralized Loans		Total
	(in millions)
Allowance for Credit Losses:
Individually evaluated for impairment	$	1	$	0	$	0	$	0	$	0	$	1
Collectively evaluated for impairment	96		2		3		0		10		111
Loans acquired with deteriorated credit quality	0		0		0		0		0		0
Total ending balance	$	97	$	2	$	3	$	0	$	10	$	112
Recorded Investment(1):
Gross of reserves: individually evaluated for impairment	$	111	$	8	$	0	$	0	$	2	$	121
Gross of reserves: collectively evaluated for impairment	46,076		2,851		301		312		1,010		50,550
Gross of reserves: loans acquired with deteriorated credit quality	0		0		0		0		0		0
Total ending balance, gross of reserves	$	46,187	$	2,859	$	301	$	312	$	1,012	$	50,671

 __________

(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.

	December 31, 2014(1)
	Commercial Mortgage Loans		Agricultural Property Loans		Residential Property Loans		Other Collateralized Loans		Uncollateralized Loans		Total
	(in millions)
Allowance for Credit Losses:
Individually evaluated for impairment	$	8	$	0	$	0	$	0	$	0	$	8
Collectively evaluated for impairment	96		1		5		0		9		111
Loans acquired with deteriorated credit quality	0		0		0		0		0		0
Total ending balance	$	104	$	1	$	5	$	0	$	9	$	119
Recorded Investment(2):
Gross of reserves: individually evaluated for impairment	$	247	$	4	$	0	$	1	$	2	$	254
Gross of reserves: collectively evaluated for impairment	42,056		2,441		392		318		1,090		46,297
Gross of reserves: loans acquired with deteriorated credit quality	0		0		0		0		0		0
Total ending balance, gross of reserves	$	42,303	$	2,445	$	392	$	319	$	1,092	$	46,551

 __________

(1) Prior period amounts are presented on a basis consistent with current period presentation.

(2) Recorded investment reflects the balance sheet carrying value gross of related allowance.

Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses and the related allowance for losses, as of the dates indicated, are as follows:

	December 31, 2015
	Recorded Investment(1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment Before Allowance(2)		Interest Income Recognized(3)
	(in millions)
With no related allowance recorded:
Commercial mortgage loans	$	0	$	0	$	0	$	0	$	0
Agricultural property loans	0		0		0		2		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		0		0
Uncollateralized loans	0		1		0		0		0
Total with no related allowance	$	0	$	1	$	0	$	2	$	0
With an allowance recorded:
Commercial mortgage loans	$	1	$	1	$	1	$	52	$	3
Agricultural property loans	0		0		0		0		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		0		0
Uncollateralized loans	0		0		0		0		0
Total with related allowance	$	1	$	1	$	1	$	52	$	3
Total:
Commercial mortgage loans	$	1	$	1	$	1	$	52	$	3
Agricultural property loans	0		0		0		2		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		0		0
Uncollateralized loans	0		1		0		0		0
Total	$	1	$	2	$	1	$	54	$	3

 __________

(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.

(2) Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.

(3) The interest income recognized is for the year-to-date income regardless of when the impairment occurred.

	December 31, 2014
	Recorded Investment(1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment Before Allowance(2)		Interest Income Recognized(3)
	(in millions)
With no related allowance recorded:
Commercial mortgage loans	$	8	$	8	$	0	$	16	$	1
Agricultural property loans	4		4		0		4		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		0		0
Uncollateralized loans	0		1		0		0		0
Total with no related allowance	$	12	$	13	$	0	$	20	$	1
With an allowance recorded:
Commercial mortgage loans	$	76	$	76	$	8	$	82	$	6
Agricultural property loans	0		0		0		0		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		3		1
Uncollateralized loans	0		0		0		0		0
Total with related allowance	$	76	$	76	$	8	$	85	$	7
Total:
Commercial mortgage loans	$	84	$	84	$	8	$	98	$	7
Agricultural property loans	4		4		0		4		0
Residential property loans	0		0		0		0		0
Other collateralized loans	0		0		0		3		1
Uncollateralized loans	0		1		0		0		0
Total	$	88	$	89	$	8	$	105	$	8

 __________

(1) Recorded investment reflects the balance sheet carrying value gross of related allowance.

(2) Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances.

(3) The interest income recognized is for the year-to-date income regardless of when the impairments occurred.

The net carrying value of commercial and other loans held for sale by the Company as of December 31, 2015 and 2014, was $274 million and $380 million, respectively. For all of these loans, the Company pre-arranges that it will sell the loan to an investor. As of both December 31, 2015 and 2014, all of the Company’s commercial and other loans held for sale were collateralized, with collateral primarily consisting of apartment complexes.

The following tables set forth certain key credit quality indicators as of December 31, 2015, based upon the recorded investment gross of allowance for credit losses.

Commercial mortgage loans
	Debt Service Coverage Ratio—December 31, 2015
	Greater  than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	25,978	$	515	$	207	$	26,700
60%-69.99%	12,191		395		234		12,820
70%-79.99%	5,668		500		97		6,265
Greater than 80%	119		151		132		402
Total commercial mortgage loans	$	43,956	$	1,561	$	670	$	46,187

Agricultural property loans
	Debt Service Coverage Ratio—December 31, 2015
	Greater than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	2,587	$	84	$	3	$	2,674
60%-69.99%	185		0		0		185
70%-79.99%	0		0		0		0
Greater than 80%	0		0		0		0
Total agricultural property loans	$	2,772	$	84	$	3	$	2,859

Total commercial mortgage and agricultural property loans
	Debt Service Coverage Ratio—December 31, 2015
	Greater than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	28,565	$	599	$	210	$	29,374
60%-69.99%	12,376		395		234		13,005
70%-79.99%	5,668		500		97		6,265
Greater than 80%	119		151		132		402
Total commercial mortgage and agricultural property loans	$	46,728	$	1,645	$	673	$	49,046

The following tables set forth certain key credit quality indicators as of December 31, 2014, based upon the recorded investment gross of allowance for credit losses.

Commercial mortgage loans
	Debt Service Coverage Ratio—December 31, 2014
	Greater than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	22,557	$	637	$	207	$	23,401
60%-69.99%	12,563		500		237		13,300
70%-79.99%	4,354		664		21		5,039
Greater than 80%	234		127		202		563
Total commercial mortgage loans	$	39,708	$	1,928	$	667	$	42,303

Agricultural property loans
	Debt Service Coverage Ratio—December 31, 2014
	Greater than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	2,152	$	140	$	2	$	2,294
60%-69.99%	151		0		0		151
70%-79.99%	0		0		0		0
Greater than 80%	0		0		0		0
Total agricultural property loans	$	2,303	$	140	$	2	$	2,445

Total commercial mortgage and agricultural property loans
	Debt Service Coverage Ratio—December 31, 2014
	Greater than 1.2X		1.0X to <1.2X		Less than 1.0X		Total
	(in millions)
Loan-to-Value Ratio
0%-59.99%	$	24,709	$	777	$	209	$	25,695
60%-69.99%	12,714		500		237		13,451
70%-79.99%	4,354		664		21		5,039
Greater than 80%	234		127		202		563
Total commercial mortgage and agricultural property loans	$	42,011	$	2,068	$	669	$	44,748

The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage loans on nonaccrual status as of the dates indicated.

	December 31, 2015
	Current		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days - Accruing		Greater Than 90 Days - Not Accruing		Total Past Due		Total Commercial Mortgage and Other Loans		Non- Accrual Status
	(in millions)
Commercial mortgage loans	$	46,187	$	0	$	0	$	0	$	0	$	0	$	46,187	$	53
Agricultural property loans	2,856		2		0		0		1		3		2,859		1
Residential property loans	288		7		0		0		6		13		301		6
Other collateralized loans	312		0		0		0		0		0		312		0
Uncollateralized loans	1,012		0		0		0		0		0		1,012		0
Total	$	50,655	$	9	$	0	$	0	$	7	$	16	$	50,671	$	60

	December 31, 2014
	Current		30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days - Accruing		Greater Than 90 Days - Not Accruing		Total Past Due		Total Commercial Mortgage and Other Loans		Non- Accrual Status
	(in millions)
Commercial mortgage loans	$	42,239	$	62	$	0	$	0	$	2	$	64	$	42,303	$	101
Agricultural property loans	2,443		0		1		0		1		2		2,445		1
Residential property loans	375		7		2		0		8		17		392		8
Other collateralized loans	319		0		0		0		0		0		319		0
Uncollateralized loans	1,092		0		0		0		0		0		1,092		0
Total	$	46,468	$	69	$	3	$	0	$	11	$	83	$	46,551	$	110

See Note 2 for further discussion regarding nonaccrual status loans.

For the years ended December 31, 2015 and 2014, there were $214 million and $0 million, respectively, of commercial mortgage and other loans acquired, other than those through direct origination. For the years ended December 31, 2015 and 2014, there were $18 million and $25 million of commercial mortgage and other loans sold, other than those classified as held-for-sale.

The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of both December 31, 2015 and 2014, the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. As of both December 31, 2015 and 2014, there were no new troubled debt restructurings related to commercial mortgage and other loans, and no payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the 12 months preceding. See Note 2 for additional information relating to the accounting for troubled debt restructurings.

For the years ended December 31, 2015 and 2014, there were $22 million and $0 million, respectively, of private debt commitments to borrowers that have been involved in a troubled debt restructuring.

As of both December 31, 2015 and 2014, the Company did not have any foreclosed residential real estate property.

Other Long-Term Investments

The following table sets forth the composition of “Other long-term investments” at December 31 for the years indicated.

	2015		2014
	(in millions)
Joint ventures and limited partnerships:
Non-real estate-related	$	6,447	$	6,527
Real estate-related	1,085		1,018
Total joint ventures and limited partnerships	7,532		7,545
Real estate held through direct ownership	1,464		2,235
Other	990		1,141
Total other long-term investments	$	9,986	$	10,921

In certain investment structures, the Company’s asset management business invests with other co-investors in an investment fund referred to as a feeder fund. In these structures, the invested capital of several feeder funds is pooled together and used to purchase ownership interests in another fund, referred to as a master fund. The master fund utilizes this invested capital and, in certain cases, other debt financing, to purchase various classes of assets on behalf of its investors. Specialized industry accounting for investment companies calls for the feeder fund to reflect its investment in the master fund as a single net asset equal to its proportionate share of the net assets of the master fund, regardless of its level of interest in the master fund. In cases where the Company consolidates the feeder fund, it retains the feeder fund’s net asset presentation and reports the consolidated feeder fund’s proportionate share of the net assets of the master fund in “Other long-term investments,” with any unaffiliated investors’ noncontrolling interest in the feeder fund reported in “Other liabilities” or “Noncontrolling interests.” The consolidated feeder funds’ investments in these master funds, reflected on this net asset basis, totaled $81 million and $82 million as of December 31, 2015 and 2014, respectively. There was no unaffiliated interest in the consolidated feeder funds as of both December 31, 2015 and 2014, respectively, and the master funds had gross assets of $17,508 million and $12,666 million, respectively, and gross liabilities of $16,920 million and $11,979 million, respectively, which are not included on the Company’s balance sheet.

Equity Method Investments

The following tables set forth summarized combined financial information for significant joint ventures and limited partnership interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited partnerships, as well as changes in the Company’s level of investment in such entities.

	At December 31,
	2015		2014
	(in millions)
STATEMENT OF FINANCIAL POSITION
Total assets(1)	$	53,799	$	50,602
Total liabilities(2)	$	13,610	$	13,152
Partners’ capital	40,189		37,450
Total liabilities and partners’ capital	$	53,799	$	50,602
Total liabilities and partners’ capital included above	$	4,398	$	4,599
Equity in limited partnership interests not included above	142		42
Carrying value	$	4,540	$	4,641

 __________

(1) Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.

(2) Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities.

	Years ended December 31,
	2015			2014			2013
	(in millions)
STATEMENTS OF OPERATIONS
Total revenue(1)	$	4,356		$	5,632		$	4,013
Total expenses(2)	(1,803		)	(1,654		)	(943		)
Net earnings (losses)	$	2,553		$	3,978		$	3,070
Equity in net earnings (losses) included above	$	216		$	522		$	255
Equity in net earnings (losses) of limited partnership interests not included above	32			72			77
Total equity in net earnings (losses)	$	248		$	594		$	332

 __________

(1) Revenue consists of income from investments in real estate, investments in securities and other income.

(2) Expenses consist primarily of interest expense, management fees, salary expenses and other expenses.

Net Investment Income

Net investment income for the years ended December 31, was from the following sources:

	2015			2014			2013
	(in millions)
Fixed maturities, available-for-sale(1)	$	10,347		$	10,558		$	10,541
Fixed maturities, held-to-maturity(1)	202			185			125
Equity securities, available-for-sale	337			354			337
Trading account assets	1,205			1,074			963
Commercial mortgage and other loans	2,255			2,103			1,985
Policy loans	619			632			611
Short-term investments and cash equivalents	56			38			40
Other long-term investments	717			1,050			710
Gross investment income	15,738			15,994			15,312
Less: investment expenses	(909		)	(738		)	(583		)
Net investment income	$	14,829		$	15,256		$	14,729

  __________

(1) Includes income on credit-linked notes which are reported on the same financial line item as related surplus notes, as conditions are met for right to offset.

Carrying value for non-income producing assets included $343 million in fixed maturities, $11 million in trading account assets supporting insurance liabilities, $1 million in other trading, $5 million in other long-term investments and $10 million in commercial mortgage and other loans as of December 31, 2015. Non-income producing assets represent investments that have not produced income for the twelve months preceding December 31, 2015.

As of both December 31, 2015 and 2014, the Company had no significant low-income housing tax credits investments.

Realized Investment Gains (Losses), Net

Realized investment gains (losses), net, for the years ended December 31, were from the following sources:

	2015			2014			2013
	(in millions)
Fixed maturities	$	1,634		$	1,194		$	(93	)
Equity securities	451			512			444
Commercial mortgage and other loans	37			110			79
Investment real estate	40			(5		)	2
Joint ventures and limited partnerships	(122		)	(15		)	34
Derivatives(1)	1,970			(182		)	(5,688		)
Other	15			22			16
Realized investment gains (losses), net	$	4,025		$	1,636		$	(5,206	)

 __________

(1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination.

Net Unrealized Gains (Losses) on Investments by Asset Class

The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated:

	2015			2014			2013
	(in millions)
Fixed maturity securities on which an OTTI loss has been recognized	$	234		$	349		$	110
Fixed maturity securities, available-for-sale—all other	24,673			33,625			18,029
Equity securities, available-for-sale	2,427			2,940			2,907
Derivatives designated as cash flow hedges(1)	1,165			206			(446		)
Other investments(2)	(25		)	(7		)	4
Net unrealized gains (losses) on investments	$	28,474		$	37,113		$	20,604

 __________

(1) See Note 21 for more information on cash flow hedges.

(2) As of December 31, 2015, there were $0 million of net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized losses on certain joint ventures that are strategic in nature and are included in “Other assets,” and losses on notes associated with payables under a netting agreement.

Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities

The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, at December 31 for the years indicated:

	2015
	Less than twelve months				Twelve months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Fixed maturities(1)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	3,068	$	19	$	0	$	0	$	3,068	$	19
Obligations of U.S. states and their political subdivisions	1,391		40		7		1		1,398		41
Foreign government bonds	1,925		82		411		65		2,336		147
U.S. corporate public securities	24,642		1,396		3,455		559		28,097		1,955
U.S. corporate private securities	6,996		266		802		93		7,798		359
Foreign corporate public securities	5,985		288		1,584		333		7,569		621
Foreign corporate private securities	6,199		340		3,917		654		10,116		994
Commercial mortgage-backed securities	3,888		63		473		7		4,361		70
Asset-backed securities	4,342		33		3,138		88		7,480		121
Residential mortgage-backed securities	558		4		119		2		677		6
Total	$	58,994	$	2,531	$	13,906	$	1,802	$	72,900	$	4,333
Equity securities, available-for-sale	$	1,862	$	142	$	11	$	1	$	1,873	$	143

__________ 

(1) Includes $0 million of fair value and $0 million of gross unrealized losses at December 31, 2015, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI.

	2014(2)
	Less than twelve months				Twelve months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
Fixed maturities(1)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	2,145	$	5	$	10	$	0	$	2,155	$	5
Obligations of U.S. states and their political subdivisions	105		1		89		2		194		3
Foreign government bonds	839		26		1,052		91		1,891		117
U.S. corporate public securities	4,213		95		9,548		441		13,761		536
U.S. corporate private securities	1,866		55		838		34		2,704		89
Foreign corporate public securities	1,902		72		2,400		143		4,302		215
Foreign corporate private securities	3,345		179		560		36		3,905		215
Commercial mortgage-backed securities	1,299		6		1,746		33		3,045		39
Asset-backed securities	3,417		16		3,229		118		6,646		134
Residential mortgage-backed securities	35		0		194		3		229		3
Total	$	19,166	$	455	$	19,666	$	901	$	38,832	$	1,356
Equity securities, available-for-sale	$	1,670	$	82	$	9	$	1	$	1,679	$	83

 __________

(1) Includes $91 million of fair value and $1 million of gross unrealized losses at December 31, 2014, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI.

(2) Prior period amounts are presented on a basis consistent with the current period presentation.

The gross unrealized losses on fixed maturity securities at December 31, 2015 and 2014, were composed of $3,750 million and $1,156 million, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $583 million and $200 million, related to other than high or highest quality securities based on NAICor equivalent rating, respectively. At December 31, 2015, the $1,802 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical, and basic industry sectors of the Company’s corporate securities. At December 31, 2014, the $901 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical and utility sectors of the Company’s corporate securities. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2015 or 2014. These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security. The gross unrealized losses are primarily attributable to general credit spread widening and foreign currency exchange rate movements. At December 31, 2015, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of its remaining amortized cost basis.

At December 31, 2015, $19 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, $18 million of which had been in that position for less than six months. At December 31, 2014, $13 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, all of which had been in that position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment for OTTI for these equity securities was not warranted at either December 31, 2015 or 2014.

In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of repurchase agreements as of the date indicated.

	December 31, 2015
	Remaining Contractual Maturity of the Agreements
	Overnight & Continuous		Up to 30 Days		30 to 90 Days		Greater than 90 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	1,991	$	4,513	$	253	$	0	$	6,757
Obligations of U.S. states and their political subdivisions	0		0		0		0		0
Foreign government bonds	0		0		0		0		0
U.S. corporate public securities	11		0		0		0		11
U.S. corporate private securities	0		0		0		0		0
Foreign corporate public securities	0		0		0		0		0
Foreign corporate private securities	0		0		0		0		0
Asset-backed securities	0		0		0		0		0
Commercial mortgage-backed securities	0		0		0		0		0
Residential mortgage-backed securities	169		945		0		0		1,114
Equity securities	0		0		0		0		0
Total repurchase agreements	$	2,171	$	5,458	$	253	$	0	$	7,882

The following table sets forth the composition of securities lending transactions as of the date indicated.

	December 31, 2015
	Remaining Contractual Maturity of the Agreements
	Overnight & Continuous		Up to 30 Days		30 to 90 Days		Greater than 90 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	94	$	0	$	0	$	0	$	94
Obligations of U.S. states and their political subdivisions	4		0		0		0		4
Foreign government bonds	0		0		0		0		0
U.S. corporate public securities	1,401		86		0		0		1,487
U.S. corporate private securities	0		0		0		0		0
Foreign corporate public securities	579		50		0		0		629
Foreign corporate private securities	0		0		0		0		0
Asset-backed securities	241		0		0		0		241
Commercial mortgage-backed securities	8		0		0		0		8
Residential mortgage-backed securities	0		97		0		0		97
Equity securities	936		0		0		0		936
Total securities lending transactions	$	3,263	$	233	$	0	$	0	$	3,496

Securities Pledged, Restricted Assets and Special Deposits

The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. At December 31, the carrying value of investments pledged to third parties as reported in the Consolidated Statements of Financial Position included the following:

	2015		2014
	(in millions)
Fixed maturities	$	11,732	$	15,338
Trading account assets supporting insurance liabilities	327		391
Other trading account assets	8		231
Separate account assets	2,128		2,861
Equity securities	903		512
Total securities pledged	$	15,098	$	19,333

As of December 31, 2015, the carrying amount of the associated liabilities supported by the pledged collateral was $14,557 million. Of this amount, $7,882 million was “Securities sold under agreements to repurchase,” $2,178 million was “Separate account liabilities,” $3,496 million was “Cash collateral for loaned securities,” $1,001 million was supporting outstanding funding agreements included in “Policyholders’ account balances.” As of December 31, 2014, the carrying amount of the associated liabilities supported by the pledged collateral was $18,810 million⁽¹⁾. Of this amount, $9,407 million was “Securities sold under agreements to repurchase,” $2,935 million was “Separate account liabilities,” $4,241 million was “Cash collateral for loaned securities,” $1,947 million⁽²⁾ was supporting outstanding funding agreements included in “Policyholders’ account balances,” and $280 million was “Short-term debt⁽³⁾.”

Assets of $162 million and $168 million at December 31, 2015 and 2014, respectively, were on deposit with governmental authorities or trustees, including certain restricted cash balances and securities. Additionally, assets carried at $603 million and $606 million at December 31, 2015 and 2014, were held in voluntary trusts established primarily to fund guaranteed dividends to certain policyholders and to fund certain employee benefits. Securities restricted as to sale amounted to $109 million and $164 million at December 31, 2015 and 2014, respectively. These amounts include member and activity-based stock associated with memberships in the Federal Home Loan Banks of New York and Boston. Restricted cash and securities of $136 million and $143 million at December 31, 2015 and 2014, respectively, were included in “Other assets.”

In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities in customer accounts, securities purchased under agreements to resell, and postings of collateral from OTC derivative counterparties. The fair value of this collateral was approximately $7,794 million at December 31, 2015 (the largest components of which include $2,195 million of securities and $5,599 million of cash from OTC derivative counterparties) and $6,518 million at December 31, 2014 (the largest components of which include $1,333 million of securities and $5,185 million of cash from OTC derivative counterparties). A portion of the aforementioned securities, for both periods, had either been sold or repledged.

__________

(1) Amount noted above has been revised to correct previously reported amount of $16,863 million.

(2) Amount noted above has been revised to correct previously reported amount of $0 million.

(3) Previously reported as “Long-term debt.”