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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2014
Available-for-sale Securities
  
December 31, 2013
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
14,936

 
 
 
$
431

 
 
 
$
33

 
 
 
$
15,334

 
Mortgage- and asset-backed securities
 
558

 
 
 
29

 
 
 
0

 
 
 
587

 
Public utilities
 
2,261

 
 
 
100

 
 
 
18

 
 
 
2,343

 
Sovereign and supranational
 
978

 
 
 
85

 
 
 
28

 
 
 
1,035

 
Banks/financial institutions
 
2,799

 
 
 
220

 
 
 
242

 
 
 
2,777

 
Other corporate
 
3,956

 
 
 
151

 
 
 
185

 
 
 
3,922

 
Total yen-denominated
 
25,488

 
 
 
1,016

 
 
 
506

 
 
 
25,998

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
92

 
 
 
10

 
 
 
4

 
 
 
98

 
Municipalities
 
992

 
 
 
71

 
 
 
12

 
 
 
1,051

 
Mortgage- and asset-backed securities
 
163

 
 
 
21

 
 
 
0

 
 
 
184

 
Public utilities
 
4,931

 
 
 
471

 
 
 
183

 
 
 
5,219

 
Sovereign and supranational
 
404

 
 
 
85

 
 
 
1

 
 
 
488

 
Banks/financial institutions
 
3,318

 
 
 
447

 
 
 
33

 
 
 
3,732

 
Other corporate
 
21,123

 
 
 
1,347

 
 
 
1,170

 
 
 
21,300

 
Total dollar-denominated
 
31,023

 
 
 
2,452

 
 
 
1,403

 
 
 
32,072

 
Total fixed maturities
 
56,511

 
 
 
3,468

 
 
 
1,909

 
 
 
58,070

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
2,582

 
 
 
151

 
 
 
217

 
 
 
2,516

 
Other corporate
 
209

 
 
 
0

 
 
 
0

 
 
 
209

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
196

 
 
 
35

 
 
 
9

 
 
 
222

 
Total perpetual securities
 
2,987

 
 
 
186

 
 
 
226

 
 
 
2,947

 
Equity securities
 
17

 
 
 
5

 
 
 
1

 
 
 
21

 
Total securities available for sale
 
$
59,515

 
 
 
$
3,659

 
 
 
$
2,136

 
 
 
$
61,038

 
The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments are shown in the following tables.
  
September 30, 2014
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
  Fair
  Value
Securities available for sale, carried at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
17,567

 
 
 
$
985

 
 
 
$
0

 
 
 
$
18,552

 
Municipalities
 
83

 
 
 
1

 
 
 
0

 
 
 
84

 
Mortgage- and asset-backed securities
 
397

 
 
 
34

 
 
 
0

 
 
 
431

 
Public utilities
 
1,946

 
 
 
170

 
 
 
6

 
 
 
2,110

 
Sovereign and supranational
 
881

 
 
 
163

 
 
 
0

 
 
 
1,044

 
Banks/financial institutions
 
3,031

 
 
 
288

 
 
 
197

 
 
 
3,122

 
Other corporate
 
3,809

 
 
 
371

 
 
 
107

 
 
 
4,073

 
Total yen-denominated
 
27,714

 
 
 
2,012

 
 
 
310

 
 
 
29,416

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
1,449

 
 
 
24

 
 
 
2

 
 
 
1,471

 
Municipalities
 
982

 
 
 
151

 
 
 
3

 
 
 
1,130

 
Mortgage- and asset-backed securities
 
182

 
 
 
24

 
 
 
0

 
 
 
206

 
Public utilities
 
5,209

 
 
 
753

 
 
 
60

 
 
 
5,902

 
Sovereign and supranational
 
356

 
 
 
94

 
 
 
0

 
 
 
450

 
Banks/financial institutions
 
3,084

 
 
 
646

 
 
 
11

 
 
 
3,719

 
Other corporate
 
23,307

 
 
 
2,106

 
 
 
475

 
 
 
24,938

 
Total dollar-denominated
 
34,569

 
 
 
3,798

 
 
 
551

 
 
 
37,816

 
Total fixed maturities
 
62,283

 
 
 
5,810

 
 
 
861

 
 
 
67,232

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
2,486

 
 
 
230

 
 
 
114

 
 
 
2,602

 
Other corporate
 
201

 
 
 
46

 
 
 
0

 
 
 
247

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
133

 
 
 
45

 
 
 
1

 
 
 
177

 
Total perpetual securities
 
2,820

 
 
 
321

 
 
 
115

 
 
 
3,026

 
Equity securities
 
15

 
 
 
8

 
 
 
0

 
 
 
23

 
Total securities available for sale
 
$
65,118

 
 
 
$
6,139

 
 
 
$
976

 
 
 
$
70,281

 
Held-to-maturity Securities
  
December 31, 2013
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
27,362

 
 
 
$
1,347

 
 
 
$
1

 
 
 
$
28,708

 
Municipalities
 
399

 
 
 
41

 
 
 
0

 
 
 
440

 
Mortgage- and asset-backed securities
 
58

 
 
 
3

 
 
 
0

 
 
 
61

 
Public utilities
 
3,900

 
 
 
150

 
 
 
122

 
 
 
3,928

 
Sovereign and supranational
 
2,941

 
 
 
171

 
 
 
72

 
 
 
3,040

 
Banks/financial institutions
 
6,310

 
 
 
146

 
 
 
328

 
 
 
6,128

 
Other corporate
 
3,445

 
 
 
183

 
 
 
87

 
 
 
3,541

 
Total yen-denominated
 
44,415

 
 
 
2,041

 
 
 
610

 
 
 
45,846

 
Total securities held to maturity
 
$
44,415

 
 
 
$
2,041

 
 
 
$
610

 
 
 
$
45,846

 
  
September 30, 2014
(In millions)
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair  
Value  
Securities held to maturity, carried at amortized cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan government and agencies
 
$
22,056

 
 
 
$
2,143

 
 
 
$
0

 
 
 
$
24,199

 
Municipalities
 
382

 
 
 
56

 
 
 
0

 
 
 
438

 
Mortgage- and asset-backed securities
 
51

 
 
 
3

 
 
 
0

 
 
 
54

 
Public utilities
 
3,681

 
 
 
266

 
 
 
44

 
 
 
3,903

 
Sovereign and supranational
 
2,823

 
 
 
228

 
 
 
22

 
 
 
3,029

 
Banks/financial institutions
 
5,432

 
 
 
207

 
 
 
128

 
 
 
5,511

 
Other corporate
 
3,318

 
 
 
280

 
 
 
16

 
 
 
3,582

 
Total yen-denominated
 
37,743

 
 
 
3,183

 
 
 
210

 
 
 
40,716

 
Total securities held to maturity
 
$
37,743

 
 
 
$
3,183

 
 
 
$
210

 
 
 
$
40,716

 
Investments Classified by Contractual Maturity Date
The contractual maturities of our investments in fixed maturities at September 30, 2014, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
 
$
344

 
 
 
$
357

 
 
 
$
52

 
 
 
$
52

 
Due after one year through five years
 
1,891

 
 
 
2,078

 
 
 
647

 
 
 
755

 
Due after five years through 10 years
 
12,883

 
 
 
13,258

 
 
 
1,441

 
 
 
1,521

 
Due after 10 years
 
35,201

 
 
 
38,084

 
 
 
8,950

 
 
 
10,178

 
Mortgage- and asset-backed securities
 
456

 
 
 
505

 
 
 
37

 
 
 
46

 
Total fixed maturities available for sale
 
$
50,775

 
 
 
$
54,282

 
 
 
$
11,127

 
 
 
$
12,552

 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due in one year or less
 
$
14

 
 
 
$
14

 
 
 
$
0

 
 
 
$
0

 
Due after one year through five years
 
1,491

 
 
 
1,628

 
 
 
0

 
 
 
0

 
Due after five years through 10 years
 
2,323

 
 
 
2,532

 
 
 
0

 
 
 
0

 
Due after 10 years
 
33,864

 
 
 
36,489

 
 
 
0

 
 
 
0

 
Mortgage- and asset-backed securities
 
51

 
 
 
53

 
 
 
0

 
 
 
0

 
Total fixed maturities held to maturity
 
$
37,743

 
 
 
$
40,716

 
 
 
$
0

 
 
 
$
0

 
Economic Maturities of Investments in Perpetual Securities
The economic maturities of our investments in perpetual securities, which were all reported as available for sale at September 30, 2014, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Due in one year or less
 
$
383

 
 
 
$
376

 
 
 
$
5

 
 
 
$
5

 
Due after one year through five years
 
778

 
 
 
830

 
 
 
0

 
 
 
0

 
Due after 10 years
 
1,615

 
 
 
1,759

 
 
 
39

 
 
 
56

 
Total perpetual securities available for sale
 
$
2,776

 
 
 
$
2,965

 
 
 
$
44

 
 
 
$
61

 
Bank and Financial Institution Investments
Our total investments in the bank and financial institution sector, including those classified as perpetual securities, were as follows:
  
September 30, 2014
 
December 31, 2013
  
Total Investments in
Banks and Financial
Institutions Sector
(in millions)
 
Percentage of
Total Investment
Portfolio
 
Total Investments in
Banks and Financial
Institutions Sector
(in millions)
 
Percentage of
Total Investment    
Portfolio
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
 
$
11,547

 
 
 
11
%
 
 
 
$
12,427

 
 
 
12
%
 
Fair value
 
12,352

 
 
 
11

 
 
 
12,637

 
 
 
12

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Upper Tier II:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
 
$
1,849

 
 
 
2
%
 
 
 
$
1,920

 
 
 
2
%
 
Fair value
 
1,951

 
 
 
2

 
 
 
1,913

 
 
 
2

 
Tier I:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
 
770

 
 
 
1

 
 
 
858

 
 
 
1

 
Fair value
 
828

 
 
 
1

 
 
 
825

 
 
 
1

 
Total:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortized cost
 
$
14,166

 
 
 
14
%
 
 
 
$
15,205

 
 
 
15
%
 
Fair value
 
15,131

 
 
 
14

 
 
 
15,375

 
 
 
15

 
Gain (Loss) on Investments
Information regarding pretax realized gains and losses from investments is as follows:
  
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
(In millions)
2014
 
2013
 
2014
 
2013
 
Realized investment gains (losses) on securities:
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
Gross gains from sales
$
17

 
$
92

 
$
144

 
$
284

 
Gross losses from sales
0

 
(24
)
 
(1
)
 
(30
)
 
Net gains (losses) from redemptions
16

 
4

 
27

 
25

 
Other-than-temporary impairment losses
0

 
(10
)
 
(31
)
 
(64
)
 
Held to maturity:
 
 
 
 
 
 
 
 
Net gains (losses) from redemptions
0

 
0

 
1

 
0

 
Total fixed maturities
33

 
62

 
140

 
215

 
Perpetual securities:
 
 
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
 
 
Gross losses from sales
0

 
0

 
0

 
(2
)
 
Total perpetual securities
0

 
0

 
0

 
(2
)
 
Equity securities:
 
 
 
 
 
 
 
 
Other-than-temporary impairment losses
0

 
0

 
0

 
(1
)
 
Total equity securities
0

 
0

 
0

 
(1
)
 
Derivatives and other:
 
 
 
 
 
 
 
 
Derivative gains (losses)
(17
)
 
(41
)
 
(67
)
 
157

 
Other
0

 
1

 
(1
)
 
10

 
  Total derivatives and other
(17
)
 
(40
)
 
(68
)
 
167

 
  Total realized investment gains (losses)
$
16

 
$
22

 
$
72

 
$
379

 
Other Than Temporary Impairment Losses on Investment Securities
The following table details our pretax other-than-temporary impairment losses by investment category that resulted from our impairment evaluation process.
  
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
(In millions)
2014
 
2013
 
2014
 
2013
 
Corporate bonds
$
0

 
$
3

 
$
31

 
$
41

 
Sovereign and supranational
0

 
7

 
0

 
23

 
Equity securities
0

 
0

 
0

 
1

 
Total other-than-temporary impairment losses realized (1)
$
0

 
$
10


$
31


$
65


(1) Includes $0 and $1 for the nine-month periods ended September 30, 2014 and 2013, respectively, for impairments due to severity and duration of decline in fair value; $0 and $10 for the three-month periods and $31 and $64 for the nine-month periods ended September 30, 2014 and 2013, respectively, from change in intent to sell securities
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities
The net effect on shareholders’ equity of unrealized gains and losses from investment securities was as follows:
(In millions)
September 30,
2014
 
December 31,
2013
Unrealized gains (losses) on securities available for sale
 
$
5,163

 
 
 
$
1,523

 
Unamortized unrealized gains on securities transferred to held to maturity
 
8

 
 
 
11

 
Deferred income taxes
 
(1,769
)
 
 
 
(499
)
 
Shareholders’ equity, unrealized gains (losses) on investment securities
 
$
3,402

 
 
 
$
1,035

 
Investments Gross Unrealized Loss Aging
The following tables show the fair values and gross unrealized losses of our available-for-sale and held-to-maturity investments that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

  
September 30, 2014
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
$
73

 
 
 
$
3

 
 
 
$
52

 
 
 
$
2

 
 
 
$
21

 
 
 
$
1

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
1,536

 
 
 
60

 
 
 
445

 
 
 
7

 
 
 
1,091

 
 
 
53

 
  Yen-denominated
 
1,346

 
 
 
50

 
 
 
577

 
 
 
15

 
 
 
769

 
 
 
35

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
389

 
 
 
22

 
 
 
0

 
 
 
0

 
 
 
389

 
 
 
22

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
320

 
 
 
11

 
 
 
34

 
 
 
1

 
 
 
286

 
 
 
10

 
  Yen-denominated
 
2,881

 
 
 
325

 
 
 
341

 
 
 
7

 
 
 
2,540

 
 
 
318

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
10,837

 
 
 
475

 
 
 
2,699

 
 
 
46

 
 
 
8,138

 
 
 
429

 
  Yen-denominated
 
1,266

 
 
 
123

 
 
 
0

 
 
 
0

 
 
 
1,266

 
 
 
123

 
U.S. government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dollar-denominated
 
167

 
 
 
2

 
 
 
167

 
 
 
2

 
 
 
0

 
 
 
0

 
  Total fixed maturities
 
18,815

 
 
 
1,071

 
 
 
4,315

 
 
 
80

 
 
 
14,500

 
 
 
991

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
7

 
 
 
1

 
 
 
0

 
 
 
0

 
 
 
7

 
 
 
1

 
  Yen-denominated
 
814

 
 
 
114

 
 
 
46

 
 
 
0

 
 
 
768

 
 
 
114

 
  Total perpetual securities
 
821

 
 
 
115

 
 
 
46

 
 
 
0

 
 
 
775

 
 
 
115

 
  Total
 
$
19,636

 
 
 
$
1,186

 
 
 
$
4,361

 
 
 
$
80

 
 
 
$
15,275

 
 
 
$
1,106

 

  
December 31, 2013
  
Total
 
Less than 12 months
 
12 months or longer
(In millions)
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Japan government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
$
8,869

 
 
 
$
34

 
 
 
$
8,869

 
 
 
$
34

 
 
 
$
0

 
 
 
$
0

 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
177

 
 
 
12

 
 
 
145

 
 
 
8

 
 
 
32

 
 
 
4

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
2,023

 
 
 
183

 
 
 
1,740

 
 
 
143

 
 
 
283

 
 
 
40

 
  Yen-denominated
 
2,519

 
 
 
140

 
 
 
1,816

 
 
 
54

 
 
 
703

 
 
 
86

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
12

 
 
 
1

 
 
 
12

 
 
 
1

 
 
 
0

 
 
 
0

 
  Yen-denominated
 
1,152

 
 
 
100

 
 
 
791

 
 
 
34

 
 
 
361

 
 
 
66

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
547

 
 
 
33

 
 
 
454

 
 
 
23

 
 
 
93

 
 
 
10

 
  Yen-denominated
 
4,533

 
 
 
570

 
 
 
2,322

 
 
 
107

 
 
 
2,211

 
 
 
463

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
11,588

 
 
 
1,170

 
 
 
8,504

 
 
 
733

 
 
 
3,084

 
 
 
437

 
  Yen-denominated
 
3,372

 
 
 
272

 
 
 
2,296

 
 
 
152

 
 
 
1,076

 
 
 
120

 
  U.S. government and agencies:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
36

 
 
 
4

 
 
 
36

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total fixed maturities
 
34,828

 
 
 
2,519

 
 
 
26,985

 
 
 
1,293

 
 
 
7,843

 
 
 
1,226

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
59

 
 
 
9

 
 
 
52

 
 
 
8

 
 
 
7

 
 
 
1

 
  Yen-denominated
 
1,322

 
 
 
217

 
 
 
748

 
 
 
74

 
 
 
574

 
 
 
143

 
  Total perpetual securities
 
1,381

 
 
 
226

 
 
 
800

 
 
 
82

 
 
 
581

 
 
 
144

 
Equity securities
 
5

 
 
 
1

 
 
 
5

 
 
 
1

 
 
 
0

 
 
 
0

 
  Total
 
$
36,214

 
 
 
$
2,746

 
 
 
$
27,790

 
 
 
$
1,376

 
 
 
$
8,424

 
 
 
$
1,370

 
Investments in Unrealized Loss Position
The following table provides more information on our unrealized loss positions.
 
 
September 30, 2014
 
 
December 31, 2013
 
(In millions)
Percentage of
Total Investments
in an Unrealized
Loss Position
Percentage of
Gross
Unrealized
Losses
Percentage of
Gross
Unrealized
Losses for Investment Grade Securities
Percentage of
Total Investments
in an Unrealized
Loss Position
Percentage of
Gross
Unrealized
Losses
Percentage of
Gross
Unrealized
Losses for Investment Grade Securities
Fixed Maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Japan government
and agencies
 
0
%
 
 
0
%
 
 
0
%
 
 
25
%
 
 
1
%
 
 
100
%
 
  Public utilities
 
15

 
 
9

 
 
98

 
 
13

 
 
12

 
 
98

 
  Sovereign and
supranational
 
2

 
 
2

 
 
100

 
 
3

 
 
4

 
 
100

 
  Banks/financial
institutions
 
16

 
 
28

 
 
44

 
 
14

 
 
22

 
 
64

 
  Other corporate
 
62

 
 
51

 
 
86

 
 
41

 
 
53

 
 
91

 
  U.S. government and
agencies
 
1

 
 
0

 
 
100

 
 
0

 
 
0

 
 
100

 
  Total fixed
maturities
 
96
%
 
 
90
%
 
 
 
 
 
96
%
 
 
92
%
 
 
 
 
Perpetual securities
 
4

 
 
10

 
 
95

 
 
4

 
 
8

 
 
90

 
  Total
 
100
%
 
 
100
%
 
 
 
 
 
100
%
 
 
100
%
 
 
 
 
Securities Lending
The following table presents our security loans outstanding and the corresponding collateral held: 
(In millions)
September 30, 2014
 
December 31, 2013
Security loans outstanding, fair value
 
$
6,873

 
 
 
$
5,656

 
Cash collateral on loaned securities
 
7,025

 
 
 
5,820

 
Perpetual securities:
  
Schedule of Available-for-sale Securities Reconciliation
Details of our holdings of perpetual securities were as follows:

Perpetual Securities
  
  
 
September 30, 2014
 
December 31, 2013
(In millions)
Credit
Rating
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Gain (Loss)
 
Amortized
Cost
 
Fair
Value
 
Unrealized
Gain (Loss)
Upper Tier II:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
A
 
 
$
67

 
 
 
$
87

 
 
 
$
20

 
 
 
$
145

 
 
 
$
183

 
 
 
$
38

 
 
BBB
 
 
1,465

 
 
 
1,487

 
 
 
22

 
 
 
1,563

 
 
 
1,532

 
 
 
(31
)
 
 
BB or lower
 
 
317

 
 
 
377

 
 
 
60

 
 
 
212

 
 
 
198

 
 
 
(14
)
 
Total Upper Tier II
 
 
1,849

 
 
 
1,951

 
 
 
102

 
 
 
1,920

 
 
 
1,913

 
 
 
(7
)
 
Tier I:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BBB
 
 
572

 
 
 
559

 
 
 
(13
)
 
 
 
746

 
 
 
706

 
 
 
(40
)
 
 
BB or lower
 
 
198

 
 
 
269

 
 
 
71

 
 
 
112

 
 
 
119

 
 
 
7

 
Total Tier I
 
 
 
770

 
 
 
828

 
 
 
58

 
 
 
858

 
 
 
825

 
 
 
(33
)
 
Other subordinated
- non-banks:
BB or lower
 
 
201

 
 
 
247

 
 
 
46

 
 
 
209

 
 
 
209

 
 
 
0

 
Total
 
 
 
$
2,820

 
 
 
$
3,026

 
 
 
$
206

 
 
 
$
2,987

 
 
 
$
2,947

 
 
 
$
(40
)
 
Variable Interest Entity, Consolidated
  
Investments in Variable Interest Entities
The following table presents the amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.
Investments in Consolidated Variable Interest Entities
 
September 30, 2014
 
December 31, 2013
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
3,222

 
 
 
$
4,132

 
 
 
$
4,109

 
 
 
$
4,843

 
Perpetual securities, available for sale
 
446

 
 
 
483

 
 
 
463

 
 
 
468

 
Fixed maturities, held to maturity
 
91

 
 
 
88

 
 
 
237

 
 
 
236

 
Other assets
 
98

 
 
 
98

 
 
 
106

 
 
 
106

 
Total assets of consolidated VIEs
 
$
3,857

 
 
 
$
4,801

 
 
 
$
4,915

 
 
 
$
5,653

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
$
190

 
 
 
$
190

 
 
 
$
207

 
 
 
$
207

 
Total liabilities of consolidated VIEs
 
$
190

 
 
 
$
190

 
 
 
$
207

 
 
 
$
207

 
Variable Interest Entity, Not Consolidated
  
Investments in Variable Interest Entities
VIEs-Not Consolidated
The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported.
Investments in Variable Interest Entities Not Consolidated
  
September 30, 2014
 
December 31, 2013
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
6,477

 
 
 
$
7,090

 
 
 
$
6,724

 
 
 
$
6,916

 
Perpetual securities, available for sale
 
356

 
 
 
377

 
 
 
370

 
 
 
378

 
Fixed maturities, held to maturity
 
2,838

 
 
 
3,076

 
 
 
2,949

 
 
 
3,039

 
Total investments in VIEs not consolidated
 
$
9,671

 
 
 
$
10,543

 
 
 
$
10,043

 
 
 
$
10,333