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Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investments [Abstract]  
Net investment income
The significant components of Net investment income are presented in the following table.
Years ended December 31
 
 
 
 
 
(In millions)
2018
 
2017
 
2016
Fixed maturity securities
$
1,795

 
$
1,812

 
$
1,819

Equity securities
18

 
12

 
10

Limited partnership investments
(22
)
 
207

 
155

Mortgage loans
50

 
34

 
41

Short term investments
26

 
15

 
8

Trading portfolio
7

 
12

 
10

Other
4

 
1

 
4

Gross investment income
1,878

 
2,093

 
2,047

Investment expense
(61
)
 
(59
)
 
(59
)
Net investment income
$
1,817

 
$
2,034

 
$
1,988
Net realized investment gains (losses)
Net realized investment gains (losses) are presented in the following table.
Years ended December 31
 
 
 
 
 
(In millions)
2018
 
2017
 
2016
Net realized investment gains (losses):
 
 
 
 
 
Fixed maturity securities:
 
 
 
 
 
Gross realized gains
$
168

 
$
186

 
$
204

Gross realized losses
(164
)
 
(64
)
 
(138
)
Net realized investment gains (losses) on fixed maturity securities
4

 
122

 
66

Equity securities
(74
)
 
—

 
(5
)
Derivatives
9

 
(4
)
 
(2
)
Short term investments and other
9

 
(25
)
 
(9
)
Net realized investment gains (losses)
$
(52
)
 
$
93

 
$
50
Net change in unrealized gains (losses) on investments
Net change in unrealized gains on investments is presented in the following table.
Years ended December 31
 
 
 
 
 
(In millions)
2018
 
2017
 
2016
Net change in unrealized gains on investments:
 
 
 
 
 
Fixed maturity securities
$
(1,811
)
 
$
728

 
$
225

Equity securities(1)
—

 
32

 
(2
)
Other
—

 
(2
)
 
1

Total net change in unrealized gains on investments
$
(1,811
)
 
$
758

 
$
224


(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 Consolidated Financial Statements for additional information.
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.
Years ended December 31
 
 
 
 
 
(In millions)
2018
 
2017
 
2016
Fixed maturity securities available-for-sale:

 
 
 
 
Corporate and other bonds
$
12

 
$
12

 
$
59

Asset-backed
9

 
1

 
13

Total fixed maturity securities available-for-sale
21

 
13

 
72

Equity securities available-for-sale
—

 
1

 
9

OTTI losses recognized in earnings
$
21

 
$
14

 
$
81
Summary of fixed maturity and equity securities
The following tables present a summary of fixed maturity and equity securities.
December 31, 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
$
18,764

 
$
791

 
$
395

 
$
19,160

 
$
—

States, municipalities and political subdivisions
9,681

 
1,076

 
9

 
10,748

 
—

Asset-backed:
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
4,815

 
68

 
57

 
4,826

 
(20
)
Commercial mortgage-backed
2,200

 
28

 
32

 
2,196

 
—

Other asset-backed
1,975

 
11

 
24

 
1,962

 
—

Total asset-backed
8,990

 
107

 
113

 
8,984

 
(20
)
U.S. Treasury and obligations of government-sponsored enterprises
156

 
3

 
—

 
159

 
—

Foreign government
480

 
5

 
4

 
481

 
—

Redeemable preferred stock
10

 
—

 
—

 
10

 
—

Total fixed maturity securities available-for-sale
38,081

 
1,982

 
521

 
39,542

 
$
(20
)
Total fixed maturity securities trading
4

 
—

 
—

 
4

 
 
Total fixed maturity securities
$
38,085

 
$
1,982

 
$
521

 
$
39,546

 
 
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 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
December 31, 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
$
8,543

 
$
340

 
$
825

 
$
55

 
$
9,368

 
$
395

States, municipalities and political subdivisions
517

 
8

 
5

 
1

 
522

 
9

Asset-backed:
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed
1,932

 
23

 
1,119

 
34

 
3,051

 
57

Commercial mortgage-backed
728

 
10

 
397

 
22

 
1,125

 
32

Other asset-backed
834

 
21

 
125

 
3

 
959

 
24

Total asset-backed
3,494

 
54

 
1,641

 
59

 
5,135

 
113

U.S. Treasury and obligations of government-sponsored enterprises
21

 
—

 
19

 
—

 
40

 
—

Foreign government
114

 
2

 
124

 
2

 
238

 
4

Total
$
12,689


$
404


$
2,614


$
117


$
15,303


$
521

 
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 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 December 31, 2018, 2017 and 2016 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).
Years ended December 31
 
 
 
 
 
(In millions)
2018
 
2017
 
2016
Beginning balance of credit losses on fixed maturity securities
$
27

 
$
36

 
$
53

Reductions for securities sold during the period
(9
)
 
(9
)
 
(16
)
Reductions for securities the Company intends to sell or more likely than not will be required to sell
—

 
—

 
(1
)
Ending balance of credit losses on fixed maturity securities
$
18

 
$
27

 
$
36
Contractual maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.
December 31
2018
 
2017
(In millions)
Cost or
Amortized
Cost
 
Estimated
Fair
Value
 
Cost or
Amortized
Cost
 
Estimated
Fair
Value
Due in one year or less
$
1,350

 
$
1,359

 
$
1,135

 
$
1,157

Due after one year through five years
7,979

 
8,139

 
8,165

 
8,501

Due after five years through ten years
16,859

 
16,870

 
16,060

 
16,718

Due after ten years
11,893

 
13,174

 
12,852

 
15,108

Total
$
38,081

 
$
39,542

 
$
38,212

 
$
41,484