Investments (Tables)

9 Months Ended

Sep. 30, 2018

Investments [Abstract]

Fixed Maturities, Available-for-sale Securities

(1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 million), which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 million of net unrealized gains on impaired available-for-sale securities and $2 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 $4,627 million (fair value, $4,913 million), which have been offset with the associated payables under a netting agreement.

	December 31, 2017
	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	$	22,837	$	3,647	$	346	$	26,138	$	0
Obligations of U.S. states and their political subdivisions	9,366		1,111		6		10,471		0
Foreign government bonds	88,062		15,650		293		103,419		0
U.S. corporate public securities	81,967		8,671		414		90,224		(10		)
U.S. corporate private securities(1)	31,852		2,051		169		33,734		(13		)
Foreign corporate public securities	26,389		3,118		99		29,408		(5		)
Foreign corporate private securities	23,322		1,242		337		24,227		0
Asset-backed securities(2)	11,965		278		10		12,233		(237		)
Commercial mortgage-backed securities	13,134		238		91		13,281		0
Residential mortgage-backed securities(3)	3,491		165		11		3,645		(2		)
Total fixed maturities, available-for-sale(1)	$	312,385	$	36,171	$	1,776	$	346,780	$	(267	)

(1) Excludes notes with amortized cost of $3,666 million (fair value, $3,666 million), which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $388 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 $4,753 million (fair value, $4,753 million), which have been offset with the associated payables under a netting agreement.

The following tables set forth information relating to fixed maturity securities (excluding investments classified as trading), as of the dates indicated:

	September 30, 2018
	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	$	24,078	$	2,455	$	1,030	$	25,503	$	0
Obligations of U.S. states and their political subdivisions	9,784		631		92		10,323		0
Foreign government bonds	93,835		14,012		678		107,169		0
U.S. corporate public securities	80,894		4,444		2,054		83,284		(4		)
U.S. corporate private securities(1)	31,847		1,201		615		32,433		(10		)
Foreign corporate public securities	27,357		2,188		339		29,206		(3		)
Foreign corporate private securities	24,479		595		855		24,219		0
Asset-backed securities(2)	12,850		199		27		13,022		(166		)
Commercial mortgage-backed securities	13,065		41		323		12,783		0
Residential mortgage-backed securities(3)	2,979		108		59		3,028		(1		)
Total fixed maturities, available-for-sale(1)	$	321,168	$	25,874	$	6,072	$	340,970	$	(184	)

Fixed Maturities, Held-to-maturity Securities

	December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity:
Foreign government bonds	$	865	$	265	$	0	$	1,130
Foreign corporate public securities	654		82		0		736
Foreign corporate private securities(5)	84		2		0		86
Commercial mortgage-backed securities	0		0		0		0
Residential mortgage-backed securities(3)	446		32		0		478
Total fixed maturities, held-to-maturity(5)	$	2,049	$	381	$	0	$	2,430

__________

(1) Excludes notes with amortized cost of $2,660 million (fair value, $2,660 million), which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 million of net unrealized gains on impaired available-for-sale securities and $2 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 $4,627 million (fair value, $4,913 million), which have been offset with the associated payables under a netting agreement.

	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
Fixed maturities, held-to-maturity:
Foreign government bonds	$	856	$	242	$	0	$	1,098
Foreign corporate public securities	647		62		0		709
Foreign corporate private securities(5)	83		2		0		85
Commercial mortgage-backed securities	0		0		0		0
Residential mortgage-backed securities(3)	371		24		0		395
Total fixed maturities, held-to-maturity(5)	$	1,957	$	330	$	0	$	2,287

__________

(1) Excludes notes with amortized cost of $3,666 million (fair value, $3,666 million), which have been offset with the associated payables under a netting agreement.

(2) Includes credit-tranched securities collateralized by loan obligations, 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 unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $388 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 $4,753 million (fair value, $4,753 million), which have been offset with the associated payables under a netting agreement.

Duration Of Gross Unrealized Losses On Fixed Maturity Securities

The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities had been in a continuous unrealized loss position, as of the dates indicated:

	September 30, 2018
	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	$	8,407	$	294	$	5,907	$	736	$	14,314	$	1,030
Obligations of U.S. states and their political subdivisions	3,221		72		262		20		3,483		92
Foreign government bonds	15,895		416		2,685		262		18,580		678
U.S. corporate public securities	35,457		1,395		7,371		659		42,828		2,054
U.S. corporate private securities	13,490		361		3,876		254		17,366		615
Foreign corporate public securities	7,068		218		1,543		121		8,611		339
Foreign corporate private securities	10,466		425		3,502		430		13,968		855
Asset-backed securities	6,416		23		314		4		6,730		27
Commercial mortgage-backed securities	6,626		150		2,711		173		9,337		323
Residential mortgage-backed securities	886		24		622		35		1,508		59
Total	$	107,932	$	3,378	$	28,793	$	2,694	$	136,725	$	6,072

__________ 

(1) Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of September 30, 2018.

	December 31, 2017
	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	$	3,450	$	28	$	6,391	$	318	$	9,841	$	346
Obligations of U.S. states and their political subdivisions	44		0		287		6		331		6
Foreign government bonds	4,417		55		2,937		238		7,354		293
U.S. corporate public securities	7,914		110		6,831		304		14,745		414
U.S. corporate private securities	4,596		76		2,009		93		6,605		169
Foreign corporate public securities	2,260		21		1,678		78		3,938		99
Foreign corporate private securities	1,213		20		5,339		317		6,552		337
Asset-backed securities	564		2		366		8		930		10
Commercial mortgage-backed securities	2,593		17		2,212		74		4,805		91
Residential mortgage-backed securities	584		4		286		7		870		11
Total	$	27,635	$	333	$	28,336	$	1,443	$	55,971	$	1,776

__________ 

(1) Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of December 31, 2017.

Investments Classified by Contractual Maturity Date

The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:

	September 30, 2018
	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Fixed maturities:
Due in one year or less	$	10,146	$	10,588	$	25	$	25
Due after one year through five years	51,010		53,830		149		153
Due after five years through ten years	63,461		66,596		560		620
Due after ten years(1)	167,657		181,123		852		1,094
Asset-backed securities	12,850		13,022		0		0
Commercial mortgage-backed securities	13,065		12,783		0		0
Residential mortgage-backed securities	2,979		3,028		371		395
Total	$	321,168	$	340,970	$	1,957	$	2,287

__________ 

(1) Excludes available-for-sale notes with amortized cost of $3,666 million (fair value, $3,666 million) and held-to-maturity notes with amortized cost of $4,753 million (fair value, $4,753 million), which have been offset with the associated payables under a netting agreement.

Sources of Fixed Maturity Proceeds and Related Investment Gains (Losses) as well as Losses on Impairments

The following table sets forth the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of fixed maturities, for the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in millions)
Fixed maturities, available-for-sale:
Proceeds from sales(1)	$	7,135		$	7,973		$	26,209		$	23,860
Proceeds from maturities/prepayments	4,941			5,068			16,720			18,488
Gross investment gains from sales and maturities	254			359			1,038			1,160
Gross investment losses from sales and maturities	(146		)	(109		)	(590		)	(407		)
OTTI recognized in earnings(2)	(32		)	(22		)	(129		)	(122		)
Fixed maturities, held-to-maturity:
Proceeds from maturities/prepayments(3)	$	17		$	39		$	76		$	128

__________ 

(1) Includes $26 million and $105 million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2018 and 2017, respectively.

(2) Excludes the portion of OTTI amounts remaining in “Other comprehensive income (loss)” (“OCI”), 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.

(3) Includes less than $1 million and $(1) million of non-cash related proceeds due to the timing of trade settlements for the nine months ended September 30, 2018 and 2017, respectively.

Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI

The following table sets forth a rollforward of pre-tax amounts remaining in OCI related to fixed maturity securities with credit loss impairments recognized in earnings, for the periods indicated:

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018			Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
	(in millions)
Credit loss impairments:
Balance, beginning of period	$	163		$	319		$	341		$	359
New credit loss impairments	1			1			3			10
Additional credit loss impairments on securities previously impaired	0			0			0			1
Increases due to the passage of time on previously recorded credit losses	2			8			4			11
Reductions for securities which matured, paid down, prepaid or were sold during the period	(5		)	(160		)	(33		)	(49		)
Reductions for securities impaired to fair value during the period(1)	(1		)	(5		)	0			(14		)
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected	0			(3		)	(1		)	(4		)
Balance, end of period	$	160		$	160		$	314		$	314

__________ 

(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.

Assets Supporting Experience-Rated Contractholder Liabilities

The following table sets forth the composition of “Assets supporting experience-rated contractholder liabilities,” as of the dates indicated:

	September 30, 2018				December 31, 2017
	Amortized Cost or Cost		Fair Value		Amortized Cost or Cost		Fair Value
	(in millions)
Short-term investments and cash equivalents	$	194	$	194	$	245	$	245
Fixed maturities:
Corporate securities	13,021		12,892		13,816		14,073
Commercial mortgage-backed securities	2,319		2,274		2,294		2,311
Residential mortgage-backed securities(1)	854		826		961		966
Asset-backed securities(2)	1,315		1,336		1,363		1,392
Foreign government bonds	1,030		1,018		1,050		1,057
U.S. government authorities and agencies and obligations of U.S. states	824		858		357		410
Total fixed maturities	19,363		19,204		19,841		20,209
Equity securities	1,355		1,685		1,278		1,643
Total assets supporting experience-rated contractholder liabilities	$	20,912	$	21,083	$	21,364	$	22,097

__________ 

(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.

Securities Concentrations of Credit Risk

As of the dates indicated, 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 and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below:

	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in Japanese government and government agency securities:
Fixed maturities, available-for-sale	$	69,098	$	79,207	$	64,628	$	76,311
Fixed maturities, held-to-maturity	834		1,071		844		1,103
Fixed maturities, trading	22		21		23		23
Assets supporting experience-rated contractholder liabilities	634		635		657		667
Total	$	70,588	$	80,934	$	66,152	$	78,104

	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(in millions)
Investments in South Korean government and government agency securities:
Fixed maturities, available-for-sale	$	10,053	$	11,726	$	9,425	$	10,989
Fixed maturities, held-to-maturity	0		0		0		0
Fixed maturities, trading	0		0		0		0
Assets supporting experience-rated contractholder liabilities	15		15		15		15
Total	$	10,068	$	11,741	$	9,440	$	11,004

Commercial Mortgage and Other Loans

The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:

	September 30, 2018					December 31, 2017
	Amount (in millions)			% of Total		Amount (in millions)			% of Total
Commercial mortgage and agricultural property loans by property type:
Office	$	13,309		22.7	%	$	12,670		22.9	%
Retail	8,851			15.1		8,543			15.5
Apartments/Multi-Family	16,370			27.9		15,465			28.0
Industrial	11,151			19.0		9,451			17.1
Hospitality	1,948			3.3		2,067			3.7
Other	3,729			6.4		3,888			7.0
Total commercial mortgage loans	55,358			94.4		52,084			94.2
Agricultural property loans	3,289			5.6		3,203			5.8
Total commercial mortgage and agricultural property loans by property type	58,647			100.0	%	55,287			100.0	%
Valuation allowance	(117		)			(100		)
Total net commercial mortgage and agricultural property loans by property type	58,530					55,187
Other loans:
Uncollateralized loans	647					663
Residential property loans	161					196
Other collateralized loans	3					5
Total other loans	811					864
Valuation allowance	(5		)			(6		)
Total net other loans	806					858
Total commercial mortgage and other loans(1)	$	59,336				$	56,045

__________ 

(1) Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of September 30, 2018 and December 31, 2017, the net carrying value of these loans was $401 million and $593 million, respectively.

Allowance for Credit Losses

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

	September 30, 2018
	Commercial Mortgage Loans		Agricultural Property Loans		Residential Property Loans		Other Collateralized Loans		Uncollateralized Loans			Total
	(in millions)
Allowance for credit losses:
Balance, beginning of year	$	97	$	3	$	1	$	0	$	5		$	106
Addition to (release of) allowance for losses	17		0		0		0		(1		)	16
Charge-offs, net of recoveries	0		0		0		0		0			0
Change in foreign exchange	0		0		0		0		0			0
Total ending balance	$	114	$	3	$	1	$	0	$	4		$	122

	December 31, 2017
	Commercial Mortgage Loans			Agricultural Property Loans		Residential Property Loans			Other Collateralized Loans		Uncollateralized Loans			Total
	(in millions)
Allowance for credit losses:
Balance, beginning of year	$	96		$	2	$	2		$	0	$	6		$	106
Addition to (release of) allowance for losses	2			1		(1		)	0		(1		)	1
Charge-offs, net of recoveries	(1		)	0		0			0		0			(1		)
Change in foreign exchange	0			0		0			0		0			0
Total ending balance	$	97		$	3	$	1		$	0	$	5		$	106

Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans

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:

	September 30, 2018
	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	$	17	$	0	$	0	$	0	$	0	$	17
Collectively evaluated for impairment	97		3		1		0		4		105
Total ending balance(1)	$	114	$	3	$	1	$	0	$	4	$	122
Recorded investment(2):
Individually evaluated for impairment	$	67	$	59	$	0	$	0	$	2	$	128
Collectively evaluated for impairment	55,291		3,230		161		3		645		59,330
Total ending balance(1)	$	55,358	$	3,289	$	161	$	3	$	647	$	59,458

__________ 

(1) As of September 30, 2018, there were no loans acquired with deteriorated credit quality.

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

	December 31, 2017
	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	$	7	$	0	$	0	$	0	$	0	$	7
Collectively evaluated for impairment	90		3		1		0		5		99
Total ending balance(1)	$	97	$	3	$	1	$	0	$	5	$	106
Recorded investment(2):
Individually evaluated for impairment	$	75	$	39	$	0	$	0	$	2	$	116
Collectively evaluated for impairment	52,009		3,164		196		5		661		56,035
Total ending balance(1)	$	52,084	$	3,203	$	196	$	5	$	663	$	56,151

__________

(1) As of December 31, 2017, there were no loans acquired with deteriorated credit quality.

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

Financing Receivable Credit Quality Indicators

The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:

Commercial mortgage loans

	September 30, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	29,364	$	493	$	286	$	30,143
60%-69.99%	17,259		498		4		17,761
70%-79.99%	6,084		868		41		6,993
80% or greater	288		148		25		461
Total commercial mortgage loans	$	52,995	$	2,007	$	356	$	55,358

Agricultural property loans

	September 30, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	3,090	$	135	$	0	$	3,225
60%-69.99%	64		0		0		64
70%-79.99%	0		0		0		0
80% or greater	0		0		0		0
Total agricultural property loans	$	3,154	$	135	$	0	$	3,289

Total commercial mortgage and agricultural property loans

	September 30, 2018
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	32,454	$	628	$	286	$	33,368
60%-69.99%	17,323		498		4		17,825
70%-79.99%	6,084		868		41		6,993
80% or greater	288		148		25		461
Total commercial mortgage and agricultural property loans	$	56,149	$	2,142	$	356	$	58,647

The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:

Commercial mortgage loans

	December 31, 2017
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	30,082	$	639	$	251	$	30,972
60%-69.99%	13,658		530		121		14,309
70%-79.99%	5,994		514		29		6,537
80% or greater	93		54		119		266
Total commercial mortgage loans	$	49,827	$	1,737	$	520	$	52,084

Agricultural property loans

	December 31, 2017
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	2,988	$	170	$	5	$	3,163
60%-69.99%	40		0		0		40
70%-79.99%	0		0		0		0
80% or greater	0		0		0		0
Total agricultural property loans	$	3,028	$	170	$	5	$	3,203

Total commercial mortgage and agricultural property loans

	December 31, 2017
	Debt Service Coverage Ratio
	>1.2X		1.0X to <1.2X		< 1.0X		Total
	(in millions)
Loan-to-Value Ratio:
0%-59.99%	$	33,070	$	809	$	256	$	34,135
60%-69.99%	13,698		530		121		14,349
70%-79.99%	5,994		514		29		6,537
80% or greater	93		54		119		266
Total commercial mortgage and agricultural property loans	$	52,855	$	1,907	$	525	$	55,287

Aging of Past Due Commercial Mortgage and Other Loans and Nonaccrual Status

The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:

	September 30, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Non-Accrual Status(2)
	(in millions)
Commercial mortgage loans	$	55,358	$	0	$	0	$	0	$	0	$	55,358	$	67
Agricultural property loans	3,269		0		5		15		20		3,289		22
Residential property loans	158		1		0		2		3		161		2
Other collateralized loans	3		0		0		0		0		3		0
Uncollateralized loans	647		0		0		0		0		647		0
Total	$	59,435	$	1	$	5	$	17	$	23	$	59,458	$	91

__________

(1) As of September 30, 2018, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due(1)		Total Past Due		Total Loans		Non-Accrual Status(2)
	(in millions)
Commercial mortgage loans	$	52,084	$	0	$	0	$	0	$	0	$	52,084	$	71
Agricultural property loans	3,201		0		0		2		2		3,203		23
Residential property loans	191		3		0		2		5		196		2
Other collateralized loans	5		0		0		0		0		5		0
Uncollateralized loans	663		0		0		0		0		663		0
Total	$	56,144	$	3	$	0	$	4	$	7	$	56,151	$	96

__________

(1) As of December 31, 2017, there were no loans in this category accruing interest.

(2) For additional information regarding the Company’s policies for accruing interest on loans, see Note 2 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Other Invested Assets

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

	September 30, 2018		December 31, 2017
	(in millions)
LPs/LLCs:
Equity method:
Private equity	$	2,999	$	2,954
Hedge funds	1,199		803
Real estate-related	1,179		972
Subtotal equity method	5,377		4,729
Fair value:
Private equity	1,693		1,325
Hedge funds	2,306		2,419
Real estate-related	286		247
Subtotal fair value(1)	4,285		3,991
Total LPs/LLCs	9,662		8,720
Real estate held through direct ownership(2)	2,265		2,409
Derivative instruments	813		1,214
Other(3)	1,050		1,030
Total other invested assets(4)	$	13,790	$	13,373

_________ 

(1) As of December 31, 2017, $1,572 million was accounted for using the cost method.

(2) As of September 30, 2018 and December 31, 2017, real estate held through direct ownership had mortgage debt of $759 million and $799 million, respectively.

(3) Primarily includes strategic investments made by investment management operations, leveraged leases and member and activity stock held in the Federal Home Loan Banks of New York and Boston. For additional information regarding the Company’s holdings in the Federal Home Loan Banks of New York and Boston, see Note 14 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

(4) Prior period amounts have been reclassified to conform to current period presentation. For additional information, see Note 2.

Net Investment Income

The following table sets forth “Net investment income” by investment type, for the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in millions)
Fixed maturities, available-for-sale(1)	$	2,981		$	2,873		$	8,936		$	8,524
Fixed maturities, held-to-maturity(1)	57			55			169			163
Fixed maturities, trading	44			38			105			125
Assets supporting experience-rated contractholder liabilities, at fair value	181			186			553			558
Equity securities, at fair value	29			104			123			308
Commercial mortgage and other loans	586			571			1,749			1,691
Policy loans	154			153			462			460
Other invested assets	152			245			456			825
Short-term investments and cash equivalents	91			51			245			141
Gross investment income	4,275			4,276			12,798			12,795
Less: investment expenses	(229		)	(200		)	(658		)	(569		)
Net investment income(2)	$	4,046		$	4,076		$	12,140		$	12,226

__________ 

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

(2) Prior period amounts have been reclassified to conform to current period presentation.

Realized Investment Gains (Losses), Net

The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in millions)
Fixed maturities(1)	$	76		$	228		$	319		$	631
Equity securities(2)	0			316			0			736
Commercial mortgage and other loans	16			21			33			49
Investment real estate	(1		)	0			61			12
LPs/LLCs	0			(1		)	16			(22		)
Derivatives(3)	62			1,044			835			(463		)
Other	(2		)	0			(3		)	0
Realized investment gains (losses), net	$	151		$	1,608		$	1,261		$	943

__________ 

(1) Includes fixed maturity securities classified as available-for-sale and held-to-maturity and excludes fixed maturity securities classified as trading.

(2) Effective January 1, 2018, realized gains (losses) on equity securities are recorded within “Other income.”

(3) Includes the hedged items offset in qualifying fair value hedge accounting relationships.

Net Unrealized Gains (Losses) on Investment

The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:

	September 30, 2018		December 31, 2017
	(in millions)
Fixed maturity securities, available-for-sale—with OTTI	$	204	$	286
Fixed maturity securities, available-for-sale—all other	19,598		34,109
Equity securities, available-for-sale(1)	0		2,027
Derivatives designated as cash flow hedges(2)	139		(39		)
Other investments(3)	4		15
Net unrealized gains (losses) on investments	$	19,945	$	36,398

__________ 

(1) Effective January 1, 2018, unrealized gains (losses) on equity securities are recorded within “Other income.”

(2) For more information on cash flow hedges, see Note 5.

(3) As of September 30, 2018, there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.”

Repurchase Agreements and Securities Lending

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 “Securities sold under agreements to repurchase,” as of the dates indicated:

	September 30, 2018								December 31, 2017
	Remaining Contractual Maturities of the Agreements								Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		30 to 90 Days		Total		Overnight & Continuous		Up to 30 Days		30 to 90 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	8,636	$	0	$	165	$	8,801	$	911	$	7,349	$	0	$	8,260
U.S. corporate public securities	20		0		0		20		1		0		0		1
Foreign corporate public securities	0		0		0		0		0		0		0		0
Residential mortgage-backed securities	355		0		0		355		0		139		0		139
Equity securities	0		0		0		0		0		0		0		0
Total securities sold under agreements to repurchase	$	9,011	$	0	$	165	$	9,176	$	912	$	7,488	$	0	$	8,400

The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:

	September 30, 2018						December 31, 2017
	Remaining Contractual Maturities of the Agreements						Remaining Contractual Maturities of the Agreements
	Overnight & Continuous		Up to 30 Days		Total		Overnight & Continuous		Up to 30 Days		Total
	(in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies	$	122	$	50	$	172	$	87	$	35	$	122
Obligations of U.S. states and their political subdivisions	113		0		113		103		0		103
Foreign government bonds	511		0		511		335		0		335
U.S. corporate public securities	2,858		0		2,858		2,961		0		2,961
Foreign corporate public securities	830		0		830		655		0		655
Residential mortgage-backed securities	0		0		0		0		0		0
Equity securities	172		0		172		178		0		178
Total cash collateral for loaned securities(1)	$	4,606	$	50	$	4,656	$	4,319	$	35	$	4,354

__________ 

(1) The Company did not have any agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.