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INVESTMENTS (Tables)
12 Months Ended
Dec. 31, 2016
Schedule Of Net Investment Income
The components of net investment income for the years ended December 31 were as follows:
(In millions)
2016
 
2015
 
2014
Fixed-maturity securities
 
$
3,214

 
 
 
$
3,094

 
 
 
$
3,249

 
Perpetual securities
 
94

 
 
 
114

 
 
 
141

 
Equity securities
 
35

 
 
 
3

 
 
 
1

 
Other investments
 
31

 
 
 
15

 
 
 
6

 
Short-term investments and cash equivalents
 
11

 
 
 
4

 
 
 
2

 
Gross investment income
 
3,385

 
 
 
3,230

 
 
 
3,399

 
Less investment expenses
 
107

 
 
 
95

 
 
 
80

 
Net investment income
 
$
3,278

 
 
 
$
3,135

 
 
 
$
3,319

 
Available-for-sale Securities
The amortized cost for our investments in debt and perpetual securities, the cost for equity securities and the fair values of these investments at December 31 are shown in the following tables.
  
2016
(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
 
$
22,857

 
 
 
$
3,359

 
 
 
$
160

 
 
 
$
26,056

 
Municipalities
 
246

 
 
 
29

 
 
 
8

 
 
 
267

 
Mortgage- and asset-backed securities
 
1,096

 
 
 
33

 
 
 
8

 
 
 
1,121

 
Public utilities
 
1,533

 
 
 
318

 
 
 
3

 
 
 
1,848

 
Sovereign and supranational
 
862

 
 
 
186

 
 
 
5

 
 
 
1,043

 
Banks/financial institutions
 
2,673

 
 
 
403

 
 
 
74

 
 
 
3,002

 
Other corporate
 
3,192

 
 
 
623

 
 
 
3

 
 
 
3,812

 
Total yen-denominated
 
32,459

 
 
 
4,951

 
 
 
261

 
 
 
37,149

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
148

 
 
 
10

 
 
 
0

 
 
 
158

 
Municipalities
 
894

 
 
 
142

 
 
 
8

 
 
 
1,028

 
Mortgage- and asset-backed securities
 
196

 
 
 
20

 
 
 
0

 
 
 
216

 
Public utilities
 
5,205

 
 
 
690

 
 
 
60

 
 
 
5,835

 
Sovereign and supranational
 
335

 
 
 
91

 
 
 
0

 
 
 
426

 
Banks/financial institutions
 
2,570

 
 
 
507

 
 
 
16

 
 
 
3,061

 
Other corporate
 
24,556

 
 
 
2,021

 
 
 
690

 
 
 
25,887

 
Total dollar-denominated
 
33,904

 
 
 
3,481

 
 
 
774

 
 
 
36,611

 
Total fixed maturities
 
66,363

 
 
 
8,432

 
 
 
1,035

 
 
 
73,760

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,266

 
 
 
128

 
 
 
49

 
 
 
1,345

 
Other corporate
 
189

 
 
 
24

 
 
 
0

 
 
 
213

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
51

 
 
 
24

 
 
 
0

 
 
 
75

 
Total perpetual securities
 
1,506

 
 
 
176

 
 
 
49

 
 
 
1,633

 
Equity securities:
 


 
 
 


 
 
 


 
 
 


 
      Yen-denominated
 
624

 
 
 
83

 
 
 
2

 
 
 
705

 
      Dollar-denominated
 
579

 
 
 
31

 
 
 
6

 
 
 
604

 
Total equity securities
 
1,203

 
 
 
114

 
 
 
8

 
 
 
1,309

 
Total securities available for sale
 
$
69,072

 
 
 
$
8,722

 
 
 
$
1,092

 
 
 
$
76,702

 
 
2015
(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
 
$
17,293

 
 
 
$
1,862

 
 
 
$
0

 
 
 
$
19,155

 
Municipalities
 
128

 
 
 
9

 
 
 
0

 
 
 
137

 
Mortgage- and asset-backed securities
 
322

 
 
 
33

 
 
 
0

 
 
 
355

 
Public utilities
 
1,400

 
 
 
210

 
 
 
10

 
 
 
1,600

 
Sovereign and supranational
 
791

 
 
 
180

 
 
 
0

 
 
 
971

 
Banks/financial institutions
 
2,321

 
 
 
325

 
 
 
105

 
 
 
2,541

 
Other corporate
 
3,337

 
 
 
448

 
 
 
33

 
 
 
3,752

 
Total yen-denominated
 
25,592

 
 
 
3,067

 
 
 
148

 
 
 
28,511

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government and agencies
 
110

 
 
 
11

 
 
 
0

 
 
 
121

 
Municipalities
 
926

 
 
 
151

 
 
 
6

 
 
 
1,071

 
Mortgage- and asset-backed securities
 
200

 
 
 
27

 
 
 
0

 
 
 
227

 
Public utilities
 
5,464

 
 
 
636

 
 
 
221

 
 
 
5,879

 
Sovereign and supranational
 
331

 
 
 
105

 
 
 
0

 
 
 
436

 
Banks/financial institutions
 
2,865

 
 
 
634

 
 
 
21

 
 
 
3,478

 
Other corporate
 
25,154

 
 
 
1,774

 
 
 
1,302

 
 
 
25,626

 
Total dollar-denominated
 
35,050

 
 
 
3,338

 
 
 
1,550

 
 
 
36,838

 
Total fixed maturities
 
60,642

 
 
 
6,405

 
 
 
1,698

 
 
 
65,349

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
1,581

 
 
 
143

 
 
 
93

 
 
 
1,631

 
Other corporate
 
183

 
 
 
22

 
 
 
0

 
 
 
205

 
  Dollar-denominated:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks/financial institutions
 
77

 
 
 
35

 
 
 
1

 
 
 
111

 
Total perpetual securities
 
1,841

 
 
 
200

 
 
 
94

 
 
 
1,947

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Yen-denominated
 
472

 
 
 
19

 
 
 
4

 
 
 
487

 
    Dollar-denominated
 
8

 
 
 
3

 
 
 
0

 
 
 
11

 
Total equity securities
 
480

 
 
 
22

 
 
 
4

 
 
 
498

 
Total securities available for sale
 
$
62,963

 
 
 
$
6,627

 
 
 
$
1,796

 
 
 
$
67,794

 
Held-to-maturity Securities
  
2016
(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
 
$
20,702

 
 
 
$
5,338

 
 
 
$
0

 
 
 
$
26,040

 
Municipalities
 
350

 
 
 
107

 
 
 
0

 
 
 
457

 
Mortgage- and asset-backed securities
 
30

 
 
 
2

 
 
 
0

 
 
 
32

 
Public utilities
 
3,201

 
 
 
358

 
 
 
23

 
 
 
3,536

 
Sovereign and supranational
 
2,602

 
 
 
283

 
 
 
8

 
 
 
2,877

 
Banks/financial institutions
 
3,731

 
 
 
195

 
 
 
26

 
 
 
3,900

 
Other corporate
 
2,734

 
 
 
452

 
 
 
7

 
 
 
3,179

 
Total yen-denominated
 
33,350

 
 
 
6,735

 
 
 
64

 
 
 
40,021

 
Total securities held to maturity
 
$
33,350

 
 
 
$
6,735

 
 
 
$
64

 
 
 
$
40,021

 
  
2015
(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
 
$
20,004

 
 
 
$
3,387

 
 
 
$
0

 
 
 
$
23,391

 
Municipalities
 
341

 
 
 
74

 
 
 
0

 
 
 
415

 
Mortgage- and asset-backed securities
 
36

 
 
 
2

 
 
 
0

 
 
 
38

 
Public utilities
 
3,092

 
 
 
205

 
 
 
94

 
 
 
3,203

 
Sovereign and supranational
 
2,555

 
 
 
182

 
 
 
26

 
 
 
2,711

 
Banks/financial institutions
 
4,431

 
 
 
168

 
 
 
53

 
 
 
4,546

 
Other corporate
 
3,000

 
 
 
260

 
 
 
44

 
 
 
3,216

 
Total yen-denominated
 
33,459

 
 
 
4,278

 
 
 
217

 
 
 
37,520

 
Total securities held to maturity
 
$
33,459

 
 
 
$
4,278

 
 
 
$
217

 
 
 
$
37,520

 
Investments Classified by Contractual Maturity Date
The contractual maturities of our investments in fixed maturities at December 31, 2016, 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
 
$
180

 
 
 
$
204

 
 
 
$
103

 
 
 
$
105

 
Due after one year through five years
 
3,441

 
 
 
3,696

 
 
 
617

 
 
 
668

 
Due after five years through 10 years
 
9,374

 
 
 
9,694

 
 
 
2,860

 
 
 
3,018

 
Due after 10 years
 
39,461

 
 
 
45,125

 
 
 
8,545

 
 
 
9,411

 
Mortgage- and asset-backed securities
 
1,144

 
 
 
1,184

 
 
 
43

 
 
 
48

 
Total fixed maturities available for sale
 
$
53,600

 
 
 
$
59,903

 
 
 
$
12,168

 
 
 
$
13,250

 
Held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Due after one year through five years
 
2,009

 
 
 
2,112

 
 
 
0

 
 
 
0

 
Due after five years through 10 years
 
1,584

 
 
 
1,737

 
 
 
0

 
 
 
0

 
Due after 10 years
 
29,727

 
 
 
36,140

 
 
 
0

 
 
 
0

 
Mortgage- and asset-backed securities
 
30

 
 
 
32

 
 
 
0

 
 
 
0

 
Total fixed maturities held to maturity
 
$
33,350

 
 
 
$
40,021

 
 
 
$
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 December 31, 2016, were as follows:
  
Aflac Japan
 
Aflac U.S.
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair  
Value  
Due in one year or less
 
$
87

 
 
 
$
82

 
 
 
$
0

 
 
 
$
0

 
Due after one year through five years
 
189

 
 
 
213

 
 
 
0

 
 
 
0

 
Due after 10 years
 
1,191

 
 
 
1,282

 
 
 
39

 
 
 
56

 
Total perpetual securities available for sale
 
$
1,467

 
 
 
$
1,577

 
 
 
$
39

 
 
 
$
56

 
Investment Exposures Exceeding 10 Percent Shareholders Equity
Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows:
 
2016
 
2015
(In millions)
Credit
Rating
 
Amortized
Cost
 
Fair
Value
 
Credit
Rating
 
Amortized
Cost
 
Fair
Value
Japan National Government(1)
A
 
$42,931
 
$51,345
 
A
 
$36,859
 
$42,025
(1)Japan Government Bonds (JGBs) or JGB-backed securities
Gain (Loss) on Investments
Information regarding pretax realized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
 
Realized investment gains (losses):
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Gross gains from sales
$
77

 
$
224

 
$
192

 
Gross losses from sales
(134
)
(1) 
(8
)
 
(12
)
 
Net gains (losses) from redemptions (1)
186

 
52

 
34

 
Other-than-temporary impairment losses
(24
)
(1) 
(152
)
 
(31
)
 
Held to maturity:
 
 
 
 
 
 
Net gains (losses) from redemptions
0

 
0

 
1

 
Total fixed maturities
105

 
116

 
184

 
Perpetual securities:
 
 
 
 
 
 
Available for sale:
 
 
 
 
 
 
Net gains (losses) from redemptions
64

 
35

 
0

 
Other-than-temporary impairment losses
(2
)
 
0

 
0

 
Total perpetual securities
62

 
35

 
0

 
Equity securities:
 
 
 
 
 
 
Net gains (losses) from redemptions
22

 
0

 
0

 
Other-than-temporary impairment losses
(57
)
 
(1
)
 
0

 
Total equity securities
(35
)
 
(1
)
 
0

 
Derivatives and other:
 
 
 
 
 
 
Derivative gains (losses)
(255
)
 
(10
)
 
31

 
  Total derivatives and other
(255
)
 
(10
)
 
31

 
  Total realized investment gains (losses)
$
(123
)
 
$
140

 
$
215

 

(1) Primarily driven by foreign exchange
Unrealized Gain (Loss) on Investments
Information regarding changes in unrealized gains and losses from investments for the years ended December 31 follows:
(In millions)
2016
 
2015
 
2014
Changes in unrealized gains (losses):
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
$
2,690

 
 
 
$
(2,481
)
 
 
 
$
5,629

 
Transferred to held to maturity
 
0

 
 
 
0

 
 
 
(10
)
 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
Available for sale
 
21

 
 
 
(123
)
 
 
 
269

 
Equity securities
 
88

 
 
 
9

 
 
 
5

 
Total change in unrealized gains (losses)
 
$
2,799

 
 
 
$
(2,595
)
 
 
 
$
5,893

 
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 at December 31 was as follows:
(In millions)
2016
 
2015
Unrealized gains (losses) on securities available for sale
 
$
7,630

 
 
 
$
4,831

 
Deferred income taxes
 
(2,825
)
 
 
 
(1,845
)
 
Shareholders’ equity, unrealized gains (losses) on investment securities
 
$
4,805

 
 
 
$
2,986

 
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 at December 31.
 
  
2016
  
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
 
$
3,958

 
 
 
$
160

 
 
 
$
3,958

 
 
 
$
160

 
 
 
$
0

 
 
 
$
0

 
  Municipalities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
44

 
 
 
8

 
 
 
0

 
 
 
0

 
 
 
44

 
 
 
8

 
  Yen-denominated
 
105

 
 
 
8

 
 
 
105

 
 
 
8

 
 
 
0

 
 
 
0

 
Mortgage- and asset-
backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
713

 
 
 
8

 
 
 
713

 
 
 
8

 
 
 
0

 
 
 
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
1,265

 
 
 
60

 
 
 
790

 
 
 
32

 
 
 
475

 
 
 
28

 
  Yen-denominated
 
635

 
 
 
26

 
 
 
347

 
 
 
14

 
 
 
288

 
 
 
12

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
244

 
 
 
13

 
 
 
38

 
 
 
5

 
 
 
206

 
 
 
8

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
268

 
 
 
16

 
 
 
238

 
 
 
10

 
 
 
30

 
 
 
6

 
  Yen-denominated
 
1,521

 
 
 
100

 
 
 
636

 
 
 
19

 
 
 
885

 
 
 
81

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
10,462

 
 
 
690

 
 
 
7,252

 
 
 
346

 
 
 
3,210

 
 
 
344

 
  Yen-denominated
 
321

 
 
 
10

 
 
 
321

 
 
 
10

 
 
 
0

 
 
 
0

 
  Total fixed maturities
 
19,536

 
 
 
1,099

 
 
 
14,398

 
 
 
612

 
 
 
5,138

 
 
 
487

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
  Total perpetual securities
 
479

 
 
 
49

 
 
 
85

 
 
 
1

 
 
 
394

 
 
 
48

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
211

 
 
 
6

 
 
 
211

 
 
 
6

 
 
 
0

 
 
 
0

 
  Yen-denominated
 
49

 
 
 
2

 
 
 
49

 
 
 
2

 
 
 
0

 
 
 
0

 
  Total equity securities
 
260

 
 
 
8

 
 
 
260

 
 
 
8

 
 
 
0

 
 
 
0

 
  Total
 
$
20,275

 
 
 
$
1,156

 
 
 
$
14,743

 
 
 
$
621

 
 
 
$
5,532

 
 
 
$
535

 




  
2015
  
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
 
$
80

 
 
 
$
6

 
 
 
$
80

 
 
 
$
6

 
 
 
$
0

 
 
 
$
0

 
  Public utilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
2,127

 
 
 
221

 
 
 
1,689

 
 
 
132

 
 
 
438

 
 
 
89

 
  Yen-denominated
 
1,487

 
 
 
104

 
 
 
1,062

 
 
 
73

 
 
 
425

 
 
 
31

 
  Sovereign and supranational:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
580

 
 
 
26

 
 
 
385

 
 
 
13

 
 
 
195

 
 
 
13

 
  Banks/financial institutions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
366

 
 
 
21

 
 
 
348

 
 
 
11

 
 
 
18

 
 
 
10

 
  Yen-denominated
 
2,350

 
 
 
158

 
 
 
1,147

 
 
 
14

 
 
 
1,203

 
 
 
144

 
  Other corporate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
13,430

 
 
 
1,302

 
 
 
11,068

 
 
 
770

 
 
 
2,362

 
 
 
532

 
  Yen-denominated
 
1,151

 
 
 
77

 
 
 
343

 
 
 
5

 
 
 
808

 
 
 
72

 
  Total fixed maturities
 
21,571

 
 
 
1,915

 
 
 
16,122

 
 
 
1,024

 
 
 
5,449

 
 
 
891

 
Perpetual securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Dollar-denominated
 
6

 
 
 
1

 
 
 
0

 
 
 
0

 
 
 
6

 
 
 
1

 
  Yen-denominated
 
645

 
 
 
93

 
 
 
216

 
 
 
12

 
 
 
429

 
 
 
81

 
  Total perpetual securities
 
651

 
 
 
94

 
 
 
216

 
 
 
12

 
 
 
435

 
 
 
82

 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Yen-denominated
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total equity securities
 
191

 
 
 
4

 
 
 
191

 
 
 
4

 
 
 
0

 
 
 
0

 
  Total
 
$
22,413

 
 
 
$
2,013

 
 
 
$
16,529

 
 
 
$
1,040

 
 
 
$
5,884

 
 
 
$
973

 


Securities Lending Transactions Accounted for as Secured Borrowings
Details of our securities lending activities as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
2016
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous
(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Public utilities
$
62

 
$
0

 
 
$
62

Banks/financial institutions
34

 
0

 
 
34

Other corporate
430

 
0

 
 
430

          Total borrowings
$
526

 
$
0

 
 
$
526

Gross amount of recognized liabilities for securities lending transactions
 
$
526

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0

(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.

Securities Lending Transactions Accounted for as Secured Borrowings
2015
Remaining Contractual Maturity of the Agreements
(In millions)
Overnight
and
Continuous
(1)
 
Up to 30
days
 
 
Total
Securities lending transactions:
 
 
 
 
 
 
Japan government and agencies
$
0

 
$
499

 
 
$
499

Public utilities
108

 
0

 
 
108

Banks/financial institutions
13

 
0

 
 
13

Other corporate
321

 
0

 
 
321

          Total borrowings
$
442

 
$
499

 
 
$
941

Gross amount of recognized liabilities for securities lending transactions
 
$
941

Amounts related to agreements not included in offsetting disclosure in Note 4
 
$
0


(1) These securities are pledged as collateral under our U.S. securities lending program and can be called at our discretion; therefore, they are classified as Overnight and Continuous.
Variable Interest Entity, Consolidated  
Investments in Variable Interest Entities
The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported as of December 31.
Investments in Consolidated Variable Interest Entities
  
2016
 
2015
(In millions)
Cost or Amortized
Cost
 
Fair
Value
 
Cost or Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,168

 
 
 
$
4,982

 
 
 
$
3,739

 
 
 
$
4,554

 
Perpetual securities, available for sale
 
237

 
 
 
208

 
 
 
255

 
 
 
228

 
Equity securities
 
972

 
 
 
1,044

 
 
 
363

 
 
 
363

 
Other investments
 
819

 
 
 
789

 
 
 
0

 
 
 
0

 
Other assets
 
127

 
 
 
127

 
 
 
102

 
 
 
102

 
Total assets of consolidated VIEs
 
$
6,323

 
 
 
$
7,150

 
 
 
$
4,459

 
 
 
$
5,247

 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 
Total liabilities of consolidated VIEs
 
$
146

 
 
 
$
146

 
 
 
$
293

 
 
 
$
293

 
Variable Interest Entity, Not Consolidated  
Investments in Variable Interest Entities
The table below reflects the amortized cost, fair value and balance sheet caption in which our investment in VIEs not consolidated are reported as of December 31.

Investments in Variable Interest Entities Not Consolidated
 
2016
 
2015
(In millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities, available for sale
 
$
4,729

 
 
 
$
5,261

 
 
 
$
4,731

 
 
 
$
5,093

 
Perpetual securities, available for sale
 
172

 
 
 
200

 
 
 
249

 
 
 
253

 
Fixed maturities, held to maturity
 
2,563

 
 
 
2,948

 
 
 
2,477

 
 
 
2,636

 
Other investments
 
1

 
 
 
1

 
 
 
0

 
 
 
0

 
Total investments in VIEs not consolidated
 
$
7,465

 
 
 
$
8,410

 
 
 
$
7,457

 
 
 
$
7,982

 

Prior year amounts have been adjusted for the adoption of accounting guidance on January 1, 2016 related to consolidations.