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Investments (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Fixed Maturity Securities AFS by Sector
The following table presents the fixed maturity securities AFS by sector at:
 
December 31, 2019
 
December 31, 2018
 
 Amortized
Cost
 
Gross Unrealized
 
Estimated
Fair
Value
 
 
Amortized
Cost
 
Gross Unrealized
 
Estimated
Fair
Value
 
 
Gains
 
Temporary
Losses
 
OTTI
Losses (1)
 
Gains
 
Temporary
Losses
 
OTTI
Losses (1)
 
 
(In millions)
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. corporate
$
28,375

 
$
2,852

 
$
67

 
$
—

 
$
31,160

 
$
24,312

 
$
830

 
$
669

 
$
—

 
$
24,473

Foreign corporate
9,177

 
741

 
74

 
—

 
9,844

 
8,183

 
159

 
316

 
—

 
8,026

RMBS
8,692

 
438

 
16

 
(4
)
 
9,118

 
8,428

 
246

 
129

 
(2
)
 
8,547

U.S. government and agency
5,529

 
1,869

 
2

 
—

 
7,396

 
7,944

 
1,263

 
112

 
—

 
9,095

CMBS
5,500

 
264

 
9

 
—

 
5,755

 
5,292

 
43

 
88

 
(1
)
 
5,248

State and political subdivision
3,358

 
701

 
2

 
—

 
4,057

 
3,200

 
412

 
15

 
—

 
3,597

ABS
1,945

 
21

 
11

 
—

 
1,955

 
2,135

 
13

 
22

 
—

 
2,126

Foreign government
1,503

 
250

 
2

 
—

 
1,751

 
1,426

 
102

 
32

 
—

 
1,496

Total fixed maturity securities
$
64,079

 
$
7,136

 
$
183

 
$
(4
)
 
$
71,036

 
$
60,920

 
$
3,068

 
$
1,383

 
$
(3
)
 
$
62,608


_______________
(1)
Noncredit OTTI losses included AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities.
Maturities of Fixed Maturity Securities
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2019:
 
Due in One Year or Less
 
Due After One Year Through Five Years
 
Due After Five Years Through Ten Years
 
Due After Ten Years
 
Structured Securities
 
Total Fixed Maturity Securities
 
(In millions)
Amortized cost
$
1,747

 
$
6,943

 
$
12,694

 
$
26,558

 
$
16,137

 
$
64,079

Estimated fair value
$
1,757

 
$
7,169

 
$
13,564

 
$
31,718

 
$
16,828

 
$
71,036
Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector
The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at:
 
December 31, 2019
 
December 31, 2018
 
Less than 12 Months
 
Equal to or Greater
than 12 Months
 
Less than 12 Months
 
Equal to or Greater
than 12 Months
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
(Dollars in millions)
Fixed maturity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. corporate
$
2,017

 
$
44

 
$
326

 
$
23

 
$
10,584

 
$
470

 
$
2,328

 
$
199

Foreign corporate
576

 
12

 
561

 
62

 
3,982

 
203

 
774

 
113

RMBS
857

 
8

 
386

 
4

 
1,627

 
26

 
2,611

 
101

U.S. government and agency
40

 
2

 
—

 
—

 
412

 
8

 
1,543

 
104

CMBS
559

 
7

 
171

 
2

 
2,317

 
53

 
803

 
34

State and political subdivision
143

 
2

 
8

 
—

 
346

 
7

 
158

 
8

ABS
362

 
2

 
676

 
9

 
1,422

 
21

 
70

 
1

Foreign government
65

 
2

 
—

 
—

 
521

 
26

 
132

 
6

Total fixed maturity securities
$
4,619

 
$
79

 
$
2,128

 
$
100

 
$
21,211

 
$
814

 
$
8,419

 
$
566

Total number of securities in an unrealized loss position
720

 
 
 
302

 
 
 
3,027

 
 
 
1,028

 
 
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
 
December 31,
 
2019
 
2018
 
Carrying
Value
 
% of
Total
 
Carrying
Value
 
% of
Total
 
(Dollars in millions)
Mortgage loans:
 
 
 
 
 
 
 
Commercial
$
9,721

 
61.7
 %
 
$
8,529

 
62.3
 %
Agricultural
3,388

 
21.5

 
2,946

 
21.5

Residential
2,708

 
17.2

 
2,276

 
16.6

Subtotal (1)
15,817

 
100.4

 
13,751

 
100.4

Valuation allowances (2)
(64
)
 
(0.4
)
 
(57
)
 
(0.4
)
Total mortgage loans, net
$
15,753

 
100.0
 %
 
$
13,694

 
100.0
 %
_______________
(1)
Purchases of mortgage loans from third parties were $962 million and $1.9 billion for the years ended December 31, 2019 and 2018, respectively, and were primarily comprised of residential mortgage loans.
(2)
The valuation allowances were primarily from collective evaluation (non-specific loan related).
Credit Quality of Mortgage Loans by Portfolio Segment
The credit quality of residential mortgage loans was as follows at:
 
December 31,
 
2019
 
2018
 
Recorded
Investment
 
% of
Total
 
Recorded
Investment
 
% of
Total
 
(Dollars in millions)
Performance indicators:
 
 
 
 
 
 
 
Performing
$
2,671

 
98.6
%
 
$
2,240

 
98.4
%
Nonperforming
37

 
1.4

 
36

 
1.6

Total
$
2,708

 
100.0
%
 
$
2,276

 
100.0
%

The credit quality of agricultural mortgage loans was as follows at:
 
December 31,
 
2019
 
2018
 
Recorded
Investment
 
% of
Total
 
Recorded
Investment
 
% of
Total
 
(Dollars in millions)
Loan-to-value ratios:
 
 
 
 
 
 
 
Less than 65%
$
3,192

 
94.2
%
 
$
2,623

 
89.0
%
65% to 75%
195

 
5.7

 
322

 
10.9

76% to 80%
1

 
0.1

 
1

 
0.1

Total
$
3,388

 
100.0
%
 
$
2,946

 
100.0
%

The credit quality of commercial mortgage loans was as follows at:
 
Recorded Investment
 
Estimated
Fair
Value
 
% of
Total
 
Debt-Service Coverage Ratios
 
Total
 
% of
Total
 
 
> 1.20x
 
1.00x - 1.20x
 
< 1.00x
 
 
(Dollars in millions)
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan-to-value ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 65%
$
8,326

 
$
272

 
$
158

 
$
8,756

 
90.1
%
 
$
9,170

 
90.3
%
65% to 75%
746

 
26

 
8

 
780

 
8.0

 
805

 
7.9

76% to 80%
185

 
—

 
—

 
185

 
1.9

 
184

 
1.8

Total
$
9,257

 
$
298

 
$
166

 
$
9,721

 
100.0
%
 
$
10,159

 
100.0
%
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan-to-value ratios:
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 65%
$
7,470

 
$
89

 
$
34

 
$
7,593

 
89.0
%
 
$
7,668

 
89.0
%
65% to 75%
762

 
—

 
24

 
786

 
9.2

 
798

 
9.3

76% to 80%
141

 
—

 
9

 
150

 
1.8

 
145

 
1.7

Total
$
8,373

 
$
89

 
$
67

 
$
8,529

 
100.0
%
 
$
8,611

 
100.0
%
Net Unrealized Investment Gains (Losses)
The components of net unrealized investment gains (losses), included in AOCI, were as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
(In millions)
Fixed maturity securities
$
6,957

 
$
1,691

 
$
4,808

Equity securities
—

 
—

 
39

Derivatives
245

 
264

 
239

Other
(13
)
 
(13
)
 
(8
)
Subtotal
7,189

 
1,942

 
5,078

Amounts allocated from:
 
 
 
 
 
Future policy benefits
(2,692
)
 
(886
)
 
(2,626
)
DAC, VOBA and DSI
(341
)
 
(90
)
 
(267
)
Subtotal
(3,033
)
 
(976
)
 
(2,893
)
Deferred income tax benefit (expense)
(873
)
 
(203
)
 
(459
)
Net unrealized investment gains (losses)
$
3,283

 
$
763

 
$
1,726


The changes in net unrealized investment gains (losses) were as follows:
 
 
Years Ended December 31,
 
 
2019
 
2018
 
2017
 
 
(In millions)
Balance, December 31,
 
$
763

 
$
1,726

 
$
1,312

Unrealized investment gains (losses) change due to cumulative effect, net of income tax
 
—

 
(79
)
 
—

Balance at January 1,
 
763

 
1,647

 
1,312

Unrealized investment gains (losses) during the year
 
5,247

 
(3,057
)
 
2,036

Unrealized investment gains (losses) relating to:
 
 
 
 
 
 
Future policy benefits
 
(1,806
)
 
1,740

 
(1,824
)
DAC, VOBA and DSI
 
(251
)
 
177

 
(51
)
Deferred income tax benefit (expense)
 
(670
)
 
256

 
253

Balance at December 31,
 
$
3,283

 
$
763

 
$
1,726

Change in net unrealized investment gains (losses)
 
$
2,520

 
$
(884
)
 
$
414
Securities Lending
Elements of the securities lending program are presented below at:
 
December 31,
 
2019
 
2018
 
(In millions)
Securities on loan: (1)
 
 
 
Amortized cost
$
2,031

 
$
3,056

Estimated fair value
$
2,996

 
$
3,628

Cash collateral received from counterparties (2)
$
3,074

 
$
3,646

Security collateral received from counterparties (3)
$
—

 
$
55

Reinvestment portfolio — estimated fair value
$
3,174

 
$
3,658

_______________
(1)
Included within fixed maturity securities.
(2)
Included within payables for collateral under securities loaned and other transactions.
(3)
Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements.
The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
 
December 31, 2019
 
December 31, 2018
 
Remaining Tenor of Securities Lending Agreements
 
 
 
Remaining Tenor of Securities Lending Agreements
 
 
 
Open (1)
 
1 Month or Less
 
1 to 6 Months
 
Total
 
Open (1)
 
1 Month or Less
 
1 to 6 Months
 
Total
 
(In millions)
U.S. government and agency
$
1,279

 
$
1,094

 
$
701

 
$
3,074

 
$
1,474

 
$
1,823

 
$
349

 
$
3,646

_______________
(1)
The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.
Invested Assets on Deposit, Held in Trust and Pledged as Collateral
Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at:
 
December 31,
 
2019
 
2018
 
(In millions)
Invested assets on deposit (regulatory deposits) (1)
$
9,349

 
$
8,176

Invested assets held in trust (reinsurance agreements) (2)
4,561

 
3,455

Invested assets pledged as collateral (3)
3,641

 
3,341

Total invested assets on deposit, held in trust and pledged as collateral
$
17,551

 
$
14,972

_______________
(1)
The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $69 million and $55 million of the assets on deposit balance represents restricted cash at December 31, 2019 and 2018, respectively.
(2)
The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions. $124 million and $87 million of the assets held in trust balance represents restricted cash at December 31, 2019 and 2018, respectively.
(3)
The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3) and derivative transactions (see Note 7).
Variable Interest Entities
The carrying amount and maximum exposure to loss related to the VIEs in which the Company concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:
 
December 31,
 
2019
 
2018
 
Carrying
Amount
 
Maximum
Exposure
to Loss
 
Carrying
Amount
 
Maximum
Exposure
to Loss
 
(In millions)
Fixed maturity securities
$
13,094

 
$
12,454

 
$
13,099

 
$
13,099

Limited partnerships and LLCs
1,907

 
3,080

 
1,756

 
3,145

Total
$
15,001

 
$
15,534

 
$
14,855

 
$
16,244
Components of Net Investment Income
The components of net investment income were as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
(In millions)
Investment income:
 
 
 
 
 
Fixed maturity securities
$
2,673

 
$
2,565

 
$
2,420

Equity securities
8

 
7

 
9

Mortgage loans
680

 
543

 
454

Policy loans
67

 
85

 
73

Limited partnerships and LLCs (1)
220

 
258

 
237

Cash, cash equivalents and short-term investments
93

 
35

 
35

Other
41

 
41

 
28

Subtotal
3,782

 
3,534

 
3,256

Less: Investment expenses
203

 
196

 
178

Net investment income
$
3,579

 
$
3,338

 
$
3,078

_______________
(1)
Includes net investment income pertaining to other limited partnership interests of $181 million, $211 million and $184 million for the years ended December 31, 2019, 2018 and 2017, respectively.
Components of Net Investment Gains (Losses)
The components of net investment gains (losses) were as follows:
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
(In millions)
Fixed maturity securities 
$
106

 
$
(180
)
 
$
(26
)
Equity securities
17

 
(16
)
 
22

Mortgage loans
(10
)
 
(13
)
 
(9
)
Limited partnerships and LLCs
7

 
40

 
(7
)
Other
(8
)
 
(38
)
 
(8
)
Total net investment gains (losses)
$
112

 
$
(207
)
 
$
(28
)
Sales or Disposals of Fixed Maturity Securities Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as shown in the table below.
 
Years Ended December 31,
 
2019
 
2018
 
2017
 
(In millions)
Proceeds
$
9,259

 
$
11,251

 
$
12,665

Gross investment gains
$
257

 
$
102

 
$
59

Gross investment losses
(151
)
 
(282
)
 
(85
)
Net investment gains (losses)
$
106

 
$
(180
)
 
$
(26
)