

Three months ended March 31
(In millions)	2019			2018
Fixed maturity securities	$	455		$	446
Equity securities	30			10
Limited partnership investments	76			30
Mortgage loans	12			11
Short term investments	10			6
Trading portfolio	2			2
Other	2			—
Gross investment income	587			505
Investment expense	(16		)	(15		)
Net investment income	$	571		$	490

During the three months ended March 31, 2019 and 2018, $17 million and less than $1 million of Net investment income was recognized due to the change in fair value of common stock still held as of March 31, 2019 and 2018.



Three months ended March 31
(In millions)	2019			2018
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	36		$	69
Gross losses	(42		)	(51		)
Net investment gains (losses) on fixed maturity securities	(6		)	18
Equity securities	42			(15		)
Derivatives	(5		)	5
Short term investments and other	—			4
Net investment gains (losses)	$	31		$	12

During the three months ended March 31, 2019 and 2018, $42 million of Net investment gains and $15 million of Net investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2019 and 2018.



Three months ended March 31
(In millions)	2019		2018
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	6	$	5
Asset-backed	8		1
OTTI losses recognized in earnings	$	14	$	6



March 31, 2019	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	19,296	$	1,269	$	99	$	20,466	$	—
States, municipalities and political subdivisions	9,279		1,299		—		10,578		—
Asset-backed:
Residential mortgage-backed	4,760		92		20		4,832		(22		)
Commercial mortgage-backed	2,026		53		7		2,072		—
Other asset-backed	1,877		25		12		1,890		(3		)
Total asset-backed	8,663		170		39		8,794		(25		)
U.S. Treasury and obligations of government-sponsored enterprises	162		3		1		164		—
Foreign government	502		12		1		513		—
Redeemable preferred stock	10		—		—		10		—
Total fixed maturity securities available-for-sale	37,912		2,753		140		40,525		$	(25	)
Total fixed maturity securities trading	28		—		—		28
Total fixed maturity securities	$	37,940	$	2,753	$	140	$	40,553



December 31, 2018	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
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

The net unrealized gains on investments included in the tables above are recorded as a component of AOCI. When presented in AOCI, these amounts are net of tax and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments). As of March 31, 2019 and December 31, 2018, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1,458 million and $1,078 million.

The following tables present the estimated fair value and gross unrealized losses of fixed maturity 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
March 31, 2019	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	1,656	$	39	$	1,743	$	60	$	3,399	$	99
States, municipalities and political subdivisions	14		—		3		—		17		—
Asset-backed:
Residential mortgage-backed	94		—		1,494		20		1,588		20
Commercial mortgage-backed	184		2		236		5		420		7
Other asset-backed	450		10		95		2		545		12
Total asset-backed	728		12		1,825		27		2,553		39
U.S. Treasury and obligations of government-sponsored enterprises	48		1		14		—		62		1
Foreign government	32		1		27		—		59		1
Total	$	2,478	$	53	$	3,612	$	87	$	6,090	$	140



	Less than 12 Months				12 Months or Longer				Total
December 31, 2018	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
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

Based on current facts and circumstances, the Company believes the unrealized losses presented in the March 31, 2019 securities in a gross unrealized loss position table above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are attributable to changes in interest rates, credit spreads and other factors. The Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional OTTI losses to be recorded as of March 31, 2019.

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 March 31, 2019 and 2018 for which a portion of an OTTI loss was recognized in Other comprehensive income (loss).



Three months ended March 31
(In millions)	2019			2018
Beginning balance of credit losses on fixed maturity securities	$	18		$	27
Reductions for securities sold during the period	(1		)	(2		)
Ending balance of credit losses on fixed maturity securities	$	17		$	25



	March 31, 2019				December 31, 2018
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,144	$	1,155	$	1,350	$	1,359
Due after one year through five years	7,718		7,992		7,979		8,139
Due after five years through ten years	16,874		17,374		16,859		16,870
Due after ten years	12,176		14,004		11,893		13,174
Total	$	37,912	$	40,525	$	38,081	$	39,542

The Company holds an embedded derivative on a funds withheld liability with a notional value of $174 million and $172 million as of March 31, 2019 and December 31, 2018 and a fair value of $(2) million and $4 million as of March 31, 2019 and December 31, 2018. The embedded derivative on the funds withheld liability is accounted for separately and reported with the funds withheld liability in Other liabilities on the Condensed Consolidated Balance Sheets.

As of March 31, 2019, the Company had committed approximately $597 million to future capital calls from various third-party limited partnership investments in exchange for an ownership interest in the related partnerships.