Net Realized and Unrealized Gains (Losses) on Investments

Net realized and unrealized gains (losses) on investments are as follows:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(In thousands)	2018			2017			2018			2017
Net realized and unrealized gains (losses) on investments in earnings
Fixed maturity securities:
Gains	$	2,152		$	8,763		$	23,412		$	21,795
Losses	(2,747		)	(197		)	(10,612		)	(4,162		)
Equity securities (1):
Net realized gains on investment sales	149,562			34,720			391,305			109,566
Change in unrealized gains	(131,513		)	—			(280,370		)	—
Investment funds (2)	(30		)	124,228			(264		)	125,383
Real estate	4,518			1,956			12,114			4,892
Loans receivable	449			—			2,508			—
Other	(57		)	14,489			2,336			19,286
Net realized and unrealized gains on investments in earnings before OTTI	22,334			183,959			140,429			276,760
Other-than-temporary impairments	—			—			—			—
Net realized and unrealized gains on investments in earnings	22,334			183,959			140,429			276,760
Income tax expense	(4,690		)	(64,386		)	(29,490		)	(96,866		)
After-tax net realized and unrealized gains on investments in earnings	$	17,644		$	119,573		$	110,939		$	179,894



Change in unrealized investment (losses) gains of available for sale securities:
Fixed maturity securities	$	(100,490	)	$	(10,627	)	$	(297,065	)	$	84,214
Previously impaired fixed maturity securities	(7		)	61			4			905
Equity securities available for sale (3)	—			(2,126		)	—			(44,812		)
Investment funds	3,669			4,129			(1,103		)	9,841
Total change in unrealized investment (losses) gains	(96,828		)	(8,563		)	(298,164		)	50,148
Income tax benefit (expense)	2,086			423			45,280			(23,550		)
Noncontrolling interests	60			5			86			19
After-tax change in unrealized investment (losses) gains of available for sale securities	$	(94,682	)	$	(8,135	)	$	(252,798	)	$	26,617

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(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

(2) Investment funds includes a gain of $124 million from the sale of an investment in an office building located in Washington, D.C. for the three and nine months ended September 30, 2017.

(3) Effective January 1, 2018, the Company adopted new accounting guidance that requires all equity investments with readily determinable fair values (subject to certain exceptions) to be measured at fair value with changes in the fair value recognized in net income. The Company recorded an adjustment of $291 million to opening AOCI net of tax as a result of this guidance. Refer to Note 3 for further information.