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Investments (Tables)
 9 Months Ended
Sep. 30, 2018
Investments [Abstract]  
Net investment income
The significant components of Net investment income are presented in the following table.
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2018
 
2017
 
2018
 
2017
Fixed maturity securities
$
449

 
$
455

 
$
1,339

 
$
1,367

Equity securities
10

 
1

 
32

 
4

Limited partnership investments
23

 
51

 
93

 
157

Mortgage loans
11

 
9

 
36

 
24

Short term investments
6

 
4

 
18

 
10

Trading portfolio
1

 
3

 
6

 
9

Other
1

 
1

 
4

 
2

Gross investment income
501

 
524

 
1,528

 
1,573

Investment expense
(14
)
 
(15
)
 
(45
)
 
(44
)
Net investment income
$
487

 
$
509

 
$
1,483

 
$
1,529
Net realized investment gains (losses)
Net realized investment gains (losses) are presented in the following table.
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2018
 
2017
 
2018
 
2017
Net realized investment gains (losses):
 
 
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
 
 
Gross realized gains
$
42

 
$
34

 
$
148

 
$
139

Gross realized losses
(32
)
 
(18
)
 
(116
)
 
(47
)
Net realized investment gains (losses) on fixed maturity securities
10

 
16

 
32

 
92

Equity securities
2

 
—

 
(23
)
 
—

Derivatives
1

 
(1
)
 
10

 
(3
)
Short term investments and other
1

 
(39
)
 
6

 
(27
)
Net realized investment gains (losses)
$
14

 
$
(24
)
 
$
25

 
$
62
Components of net other than temporary impairment losses recognized in earnings by asset type
The components of OTTI losses recognized in earnings by asset type are presented in the following table.
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2018
 
2017
 
2018
 
2017
Fixed maturity securities available-for-sale:

 
 
 
 
 
 
Corporate and other bonds
$
1

 
$
4

 
$
6

 
$
8

Asset-backed
2

 
1

 
3

 
1

OTTI losses recognized in earnings
$
3

 
$
5

 
$
9

 
$
9
Summary of fixed maturity and equity securities
The following tables present a summary of fixed maturity and equity securities.
September 30, 2018 (1)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
18,348

 
$
887

 
$
215

 
$
19,020

 
$
—

States, municipalities and political subdivisions
10,171

 
994

 
20

 
11,145

 
—

Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
5,024

 
62

 
115

 
4,971

 
(24
)
Commercial mortgage-backed
2,165

 
23

 
36

 
2,152

 
—

Other asset-backed
1,732

 
6

 
9

 
1,729

 
—

Total asset-backed
8,921

 
91

 
160

 
8,852

 
(24
)
U.S. Treasury and obligations of government-sponsored enterprises
145

 
2

 
2

 
145

 
—

Foreign government
457

 
4

 
6

 
455

 
—

Redeemable preferred stock
9

 
1

 
—

 
10

 
—

Total fixed maturity securities available-for-sale
38,051

 
1,979

 
403

 
39,627

 
$
(24
)
Total fixed maturity securities trading
1

 
 
 
 
 
1

 
 
Total fixed maturity securities
$
38,052

 
$
1,979

 
$
403

 
$
39,628

 
 

December 31, 2017
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Unrealized
OTTI
Losses (Gains)
(In millions)
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
17,210

 
$
1,625

 
$
28

 
$
18,807

 
$
—

States, municipalities and political subdivisions
12,478

 
1,551

 
2

 
14,027

 
(11
)
Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
5,043

 
109

 
32

 
5,120

 
(27
)
Commercial mortgage-backed
1,840

 
46

 
14

 
1,872

 
—

Other asset-backed
1,083

 
16

 
5

 
1,094

 
—

Total asset-backed
7,966

 
171

 
51

 
8,086

 
(27
)
U.S. Treasury and obligations of government-sponsored enterprises
111

 
2

 
4

 
109

 
—

Foreign government
437

 
9

 
2

 
444

 
—

Redeemable preferred stock
10

 
1

 
—

 
11

 
—

Total fixed maturity securities available-for-sale
38,212

 
3,359

 
87

 
41,484

 
$
(38
)
Total fixed maturity securities trading
3

 
 
 
 
 
3

 
 
Equity securities available-for-sale:
 
 
 
 
 
 
 
 
 
Common stock
21

 
7

 
1

 
27

 
 
Preferred stock
638

 
31

 
1

 
668

 
 
Total equity securities available-for-sale
659

 
38

 
2

 
695

 
 
Total fixed maturity and equity securities
$
38,874

 
$
3,397

 
$
89

 
$
42,182

 
 

(1)
As of January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The change in fair value of equity securities is now recognized through the income statement. See Note A to the Condensed Consolidated Financial Statements for additional information.
Securities in a gross unrealized loss position
The following tables present the estimated fair value and gross unrealized losses of fixed maturity and equity securities in a gross unrealized loss position by the length of time in which the securities have continuously been in that position.
 
Less than 12 Months
 
12 Months or Longer
 
Total
September 30, 2018 (1)
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
(In millions)
 
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
7,546

 
$
197

 
$
342

 
$
18

 
$
7,888

 
$
215

States, municipalities and political subdivisions
807

 
19

 
2

 
1

 
809

 
20

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
3,409

 
89

 
501

 
26

 
3,910

 
115

Commercial mortgage-backed
968

 
15

 
322

 
21

 
1,290

 
36

Other asset-backed
953

 
9

 
45

 
—

 
998

 
9

Total asset-backed
5,330

 
113

 
868

 
47

 
6,198

 
160

U.S. Treasury and obligations of government-sponsored enterprises
35

 
—

 
42

 
2

 
77

 
2

Foreign government
188

 
4

 
64

 
2

 
252

 
6

Total
$
13,906

 
$
333

 
$
1,318

 
$
70

 
$
15,224

 
$
403


 
Less than 12 Months
 
12 Months or Longer
 
Total
December 31, 2017
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
 
Gross
Unrealized
Losses
(In millions)
 
 
 
 
 
Fixed maturity securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
Corporate and other bonds
$
1,354

 
$
21

 
$
168

 
$
7

 
$
1,522

 
$
28

States, municipalities and political subdivisions
72

 
1

 
85

 
1

 
157

 
2

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
1,228

 
5

 
947

 
27

 
2,175

 
32

Commercial mortgage-backed
403

 
4

 
212

 
10

 
615

 
14

Other asset-backed
248

 
3

 
18

 
2

 
266

 
5

Total asset-backed
1,879

 
12

 
1,177

 
39

 
3,056

 
51

U.S. Treasury and obligations of government-sponsored enterprises
49

 
2

 
21

 
2

 
70

 
4

   Foreign government
166

 
2

 
4

 
—

 
170

 
2

Total fixed maturity securities available-for-sale
3,520

 
38

 
1,455

 
49

 
4,975

 
87

Equity securities available-for-sale:

 

 

 

 

 

Common stock
7

 
1

 
—

 
—

 
7

 
1

Preferred stock
93

 
1

 
—

 
—

 
93

 
1

Total equity securities available-for-sale
100

 
2

 
—

 
—

 
100

 
2

Total
$
3,620

 
$
40

 
$
1,455

 
$
49

 
$
5,075

 
$
89


(1)
As of January 1, 2018, the Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The change in fair value of equity securities is now recognized through the income statement. See Note A to the Condensed Consolidated Financial Statements for additional information.
Activity related to the pretax fixed maturity credit loss component reflected within retained earnings for securities still held for which a portion of an OTTI loss was recognized in OCI
The following table presents the activity related to the pretax credit loss component reflected in Retained earnings on fixed maturity securities still held as of September 30, 2018 and 2017 and for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).
Periods ended September 30
Three Months
 
Nine Months
(In millions)
2018
 
2017
 
2018
 
2017
Beginning balance of credit losses on fixed maturity securities
$
21

 
$
30

 
$
27

 
$
36

Reductions for securities sold during the period
(2
)
 
(2
)
 
(8
)
 
(8
)
Ending balance of credit losses on fixed maturity securities
$
19

 
$
28

 
$
19

 
$
28
Contractual maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
 
September 30, 2018
 
December 31, 2017
(In millions)
Cost or
Amortized
Cost
 
Estimated
Fair
Value
 
Cost or
Amortized
Cost
 
Estimated
Fair
Value
Due in one year or less
$
1,457

 
$
1,473

 
$
1,135

 
$
1,157

Due after one year through five years
8,017

 
8,197

 
8,165

 
8,501

Due after five years through ten years
16,453

 
16,475

 
16,060

 
16,718

Due after ten years
12,124

 
13,482

 
12,852

 
15,108

Total
$
38,051

 
$
39,627

 
$
38,212

 
$
41,484