Shareholders’ Equity and Dividend Restrictions

Declared cash dividends per share were $2.50, $1.92 and $2.30 for the years ended December 31, 2017, 2016 and 2015, respectively.

Our insurance subsidiary declared dividends to the parent company of $465 million in 2017, $475 million in 2016 and $447 million in 2015. State regulatory requirements restrict the dividends insurance subsidiaries can pay. Generally, the most our insurance subsidiary can pay without prior regulatory approval is the greater of 10 percent of statutory capital and surplus or 100 percent of statutory net income for the prior calendar year. Dividends exceeding these limitations may be paid only with approval of the insurance department of the domiciliary state. During 2018, the total that our insurance subsidiary, which is the parent of all other insurance subsidiaries, may declare in dividends is approximately $509 million.

Accumulated Other Comprehensive Income

The table below shows beginning and end of year accumulated other comprehensive income (AOCI) for investments, pension obligations, life deferred acquisition costs, life policy reserves and other. The changes from the beginning of year to the end of year are the result of changes to other comprehensive income or loss (OCI).

Additionally, as a result of the early adoption of ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, included in the table below is the reclassification of $492 million which increased AOCI and decreased retained earnings. See Note 1, Summary of Significant Accounting Policies for further explanation of this ASU.



(Dollars in millions)	2017									2016									2015
	Before tax			Income tax			Net			Before tax			Income tax			Net			Before tax			Income tax			Net
Investments:
AOCI, January 1	$	2,625		$	908		$	1,717		$	2,094		$	722		$	1,372		$	2,719		$	942		$	1,777
OCI before realized gains recognized in net income	1,054			366			688			653			229			424			(556		)	(196		)	(360		)
Realized gains recognized in net income	(139		)	(49		)	(90		)	(122		)	(43		)	(79		)	(69		)	(24		)	(45		)
OCI	915			317			598			531			186			345			(625		)	(220		)	(405		)
Adjustment to reclassify certain tax effects from AOCI	—			(492		)	492			—			—			—			—			—			—
AOCI, December 31	$	3,540		$	733		$	2,807		$	2,625		$	908		$	1,717		$	2,094		$	722		$	1,372

Pension obligations:
AOCI, January 1	$	(26	)	$	(8	)	$	(18	)	$	(42	)	$	(14	)	$	(28	)	$	(36	)	$	(12	)	$	(24	)
OCI excluding amortization recognized in net income	12			6			6			13			5			8			(12		)	(5		)	(7		)
Amortization recognized in net income	2			1			1			3			1			2			6			3			3
OCI	14			7			7			16			6			10			(6		)	(2		)	(4		)
AOCI, December 31	$	(12	)	$	(1	)	$	(11	)	$	(26	)	$	(8	)	$	(18	)	$	(42	)	$	(14	)	$	(28	)

Life deferred acquisition costs, life policy reserves and other:
AOCI, January 1	$	(9	)	$	(3	)	$	(6	)	$	1		$	1		$	—		$	(12	)	$	(3	)	$	(9	)
OCI before realized gains recognized in net income	8			5			3			(8		)	(3		)	(5		)	14			5			9
Realized gains recognized in net income	(9		)	(4		)	(5		)	(2		)	(1		)	(1		)	(1		)	(1		)	—
OCI	(1		)	1			(2		)	(10		)	(4		)	(6		)	13			4			9
AOCI, December 31	$	(10	)	$	(2	)	$	(8	)	$	(9	)	$	(3	)	$	(6	)	$	1		$	1		$	—

Summary of AOCI:
AOCI, January 1	$	2,590		$	897		$	1,693		$	2,053		$	709		$	1,344		$	2,671		$	927		$	1,744
Investments OCI	915			317			598			531			186			345			(625		)	(220		)	(405		)
Pension obligations OCI	14			7			7			16			6			10			(6		)	(2		)	(4		)
Life deferred acquisition costs, life policy reserves and other OCI	(1		)	1			(2		)	(10		)	(4		)	(6		)	13			4			9
Total OCI	928			325			603			537			188			349			(618		)	(218		)	(400		)
Adjustment to reclassify certain tax effects from AOCI	—			(492		)	492			—			—			—			—			—			—
AOCI, December 31	$	3,518		$	730		$	2,788		$	2,590		$	897		$	1,693		$	2,053		$	709		$	1,344

Investments realized gains and life deferred acquisition costs, life policy reserves and other realized gains are recorded in the realized investment gains, net, line item in the consolidated statements of income. Amortization on pension obligations is recorded in the insurance losses and contract holders' benefits and underwriting, acquisition and insurance expenses line items in the consolidated statements of income.