INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Available-for-sale Securities

	December 31, 2017
(In millions)	Cost or Amortized Cost				Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities available for sale, carried at fair value:
Fixed maturity securities: (1)
Yen-denominated:
Japan government and agencies		$	27,980			$	3,363		$	271		$	31,072
Municipalities		314				28			12			330
Mortgage- and asset-backed securities		242				29			0			271
Public utilities		1,635				352			6			1,981
Sovereign and supranational		1,380				190			1			1,569
Banks/financial institutions		4,742				811			53			5,500
Other corporate		4,085				809			7			4,887
Total yen-denominated		40,378				5,582			350			45,610
U.S dollar-denominated:
U.S. government and agencies		146				13			1			158
Municipalities		872				168			0			1,040
Mortgage- and asset-backed securities		161				12			0			173
Public utilities		5,116				884			27			5,973
Sovereign and supranational		267				73			0			340
Banks/financial institutions		2,808				633			8			3,433
Other corporate		25,384				2,620			418			27,586
Total U.S. dollar-denominated		34,754				4,403			454			38,703
Total securities available for sale		$	75,132	(1)		$	9,985		$	804		$	84,313	(1)

⁽¹⁾ Includes perpetual securities ($1,462 at amortized cost and $1,789 at fair value)

The amortized cost for the Company's investments in debt securities, the cost for equity securities and the fair values of these investments are shown in the following tables.

	March 31, 2018
(In millions)	Cost or Amortized Cost				Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities: (1)
Yen-denominated:
Japan government and agencies		$	32,961			$	3,811		$	192		$	36,580
Municipalities		350				33			11			372
Mortgage- and asset-backed securities		254				30			0			284
Public utilities		1,739				325			4			2,060
Sovereign and supranational		1,348				212			27			1,533
Banks/financial institutions		5,157				799			76			5,880
Other corporate		4,345				754			8			5,091
Total yen-denominated		46,154				5,964			318			51,800
U.S. dollar-denominated:
U.S. government and agencies		148				9			1			156
Municipalities		866				135			0			1,001
Mortgage- and asset-backed securities		165				7			1			171
Public utilities		5,223				631			107			5,747
Sovereign and supranational		274				59			0			333
Banks/financial institutions		2,841				457			34			3,264
Other corporate		25,936				1,736			1,111			26,561
Total U.S. dollar-denominated		35,453				3,034			1,254			37,233
Total securities available for sale		$	81,607	(1)		$	8,998		$	1,572		$	89,033	(1)

⁽¹⁾ Includes perpetual securities ($1,506 at amortized cost and $1,774 at fair value)

	December 31, 2017
(In millions)		Fair Value
Equity securities, carried at fair value:
Equity securities:
Yen-denominated			$	695
U.S. dollar-denominated			328
Total equity securities			$	1,023

Held-to-maturity Securities

	March 31, 2018
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair   Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies		$	22,686		$	5,631		$	0		$	28,317
Municipalities		379			114			0			493
Mortgage- and asset-backed securities		26			2			0			28
Public utilities		3,508			383			0			3,891
Sovereign and supranational		1,620			299			0			1,919
Banks/financial institutions		2,300			190			13			2,477
Other corporate		2,858			485			0			3,343
Total yen-denominated		33,377			7,104			13			40,468
Total securities held to maturity		$	33,377		$	7,104		$	13		$	40,468

	December 31, 2017
(In millions)	Cost or Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies		$	21,331		$	5,160		$	0		$	26,491
Municipalities		357			105			0			462
Mortgage- and asset-backed securities		26			1			0			27
Public utilities		3,300			398			0			3,698
Sovereign and supranational		1,523			312			0			1,835
Banks/financial institutions		2,206			190			9			2,387
Other corporate		2,687			485			0			3,172
Total yen-denominated		31,430			6,651			9			38,072
Total securities held to maturity		$	31,430		$	6,651		$	9		$	38,072

Equity securities, FV-NI

	March 31, 2018
(In millions)		Fair   Value
Equity securities, carried at fair value through   net earnings:
Equity securities: (1)
Yen-denominated			$	711
U.S. dollar-denominated			397
Total equity securities			$	1,108	(1)

⁽¹⁾ Includes perpetual securities ($71 at fair value)

Investments Classified by Contractual Maturity Date

The contractual and economic maturities of the Company's investments in fixed maturity securities at March 31, 2018, were as follows:

(In millions)	Amortized Cost			Fair Value
Available for sale: (1)
Due in one year or less		$	485		$	502
Due after one year through five years		9,685			9,551
Due after five years through 10 years		10,637			11,143
Due after 10 years		60,381			67,382
Mortgage- and asset-backed securities		419			455
Total fixed maturity securities available for sale		$	81,607		$	89,033
Held to maturity:
Due in one year or less		$	1,036		$	1,049
Due after one year through five years		508			527
Due after five years through 10 years		1,597			1,754
Due after 10 years		30,210			37,110
Mortgage- and asset-backed securities		26			28
Total fixed maturity securities held to maturity		$	33,377		$	40,468

⁽¹⁾ Includes perpetual securities, categorized in accordance with their respective economic maturities (the expected maturity date created by the combination of features in the financial instrument)

Investment Exposures Exceeding Ten Percent Shareholders Equity

Investment exposures that individually exceeded 10% of shareholders' equity were as follows:

	March 31, 2018			December 31, 2017
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A	$54,465	$63,576	A	$48,399	$56,532

⁽¹⁾Japan Government Bonds (JGBs) or JGB-backed securities

Gain (Loss) on Investments

Information regarding pretax realized gains and losses from investments is as follows:

	Three Months Ended March 31,
(In millions)	2018				2017
Realized investment gains (losses):
Fixed maturity securities: (1)
Available for sale:
Gross gains from sales	$	9			$	12
Gross losses from sales	(4		)		(15		)
Net gains (losses) from redemptions	(2		)		(28		)
Other-than-temporary impairment losses	0				(4		)
Total fixed maturity securities	3				(35		)
Equity securities (2)	(46		)	(1)	19			(3)
Loan loss reserves	(7		)		(1		)
Derivatives and other:
Derivative gains (losses)	144				(52		)
Foreign currency gains (losses)	(228		)		(71		)
Total derivatives and other	(84		)		(123		)
Total realized investment gains (losses)	$	(134	)		$	(140	)

⁽¹⁾ Includes perpetual securities

⁽²⁾ See Note 1 of the Notes to the Consolidated Financial Statements for the adoption of accounting guidance on January 1, 2018 related to financial instruments.

⁽³⁾ Includes $6 of impairments

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)	March 31, 2018				December 31, 2017
Unrealized gains (losses) on securities available for sale		$	7,426			$	9,358
Deferred income taxes		(2,220		)		(3,394		)
Shareholders’ equity, unrealized gains (losses) on investment securities		$	5,206			$	5,964

See Note 1 for discussion of the accounting treatment of tax on amounts recorded in accumulated other comprehensive income pursuant to the Tax Act and for the adoption of accounting guidance on January 1, 2018 related to financial instruments.

Investments Gross Unrealized Loss Aging

The following tables show the fair values and gross unrealized losses of the Company's 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.

	March 31, 2018
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities: (1)
U.S. government and agencies:
U.S. dollar-denominated		$	79		$	1		$	71		$	1		$	8		$	0
Japan government and agencies:
Yen-denominated		4,054			192			128			0			3,926			192
Municipalities:
Yen-denominated		128			11			0			0			128			11
Mortgage- and asset- backed securities:
U.S. dollar-denominated		91			1			71			1			20			0
Public utilities:
U.S. dollar-denominated		1,649			107			1,095			52			554			55
Yen-denominated		90			4			0			0			90			4
Sovereign and supranational:
Yen-denominated		302			27			302			27			0			0
Banks/financial institutions:
U.S. dollar-denominated		685			34			596			28			89			6
Yen-denominated		1,467			89			645			14			822			75
Other corporate:
U.S. dollar-denominated		13,730			1,111			8,903			420			4,827			691
Yen-denominated		302			8			276			6			26			2
Total		$	22,577		$	1,585		$	12,087		$	549		$	10,490		$	1,036

⁽¹⁾ Includes perpetual securities

	December 31, 2017
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities: (1)
U.S. government and agencies:
U.S. dollar-denominated		$	74		$	1		$	74		$	1		$	0		$	0
Japan government and agencies:
Yen-denominated		5,255			271			1,264			9			3,991			262
Municipalities:
Yen-denominated		129			12			10			0			119			12
Public utilities:
U.S. dollar-denominated		785			27			221			3			564			24
Yen-denominated		83			6			0			0			83			6
Sovereign and supranational:
Yen-denominated		309			1			309			1			0			0
Banks/financial institutions:
U.S. dollar-denominated		362			8			316			5			46			3
Yen-denominated		1,507			62			394			4			1,113			58
Other corporate:
U.S. dollar-denominated		7,741			418			2,839			50			4,902			368
Yen-denominated		440			7			349			4			91			3
Total		$	16,685		$	813		$	5,776		$	77		$	10,909		$	736

⁽¹⁾ Includes perpetual securities

Other Investments

The table below reflects the composition of the carrying value for other investments as of the periods presented.

(In millions)	March 31, 2018			December 31, 2017
Other investments:
Transitional real estate loans		$	2,719		$	1,235
Commercial mortgage loans		917			908
Middle market loans		957			859
Policy loans		227			210
Short-term investments		0			57
Other		253			133
Total other investments		$	5,073		$	3,402

Securities Lending Transactions Accounted for as Secured Borrowings

Details of the Company's securities lending activities were as follows:

Securities Lending Transactions Accounted for as Secured Borrowings
March 31, 2018
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	4,894	$	4,894
Public utilities	30		0		30
Banks/financial institutions	52		0		52
Other corporate	384		0		384
Equity securities	8		0		8
Total borrowings	$	474	$	4,894	$	5,368
Gross amount of recognized liabilities for securities lending transactions					$	5,368
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

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

Securities Lending Transactions Accounted for as Secured Borrowings
December 31, 2017
Remaining Contractual Maturity of the Agreements
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	49	$	49
Public utilities	73		0		73
Banks/financial institutions	54		0		54
Other corporate	415		0		415
Equity securities	15		0		15
Total borrowings	$	557	$	49	$	606
Gross amount of recognized liabilities for securities lending transactions					$	606
Amounts related to agreements not included in offsetting disclosure in Note 4					$	0

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

Variable Interest Entity, Consolidated

Investments in Variable Interest Entities

VIEs - Consolidated

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.

Investments in Consolidated Variable Interest Entities

	March 31, 2018						December 31, 2017
(In millions)	Cost or Amortized Cost			Fair Value			Cost or Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale (1)		$	4,695		$	5,431		$	4,538		$	5,509
Equity securities		760			760			606			753
Other investments (2)		3,994			3,974			2,341			2,328
Other assets (3)		241			241			151			151
Total assets of consolidated VIEs		$	9,690		$	10,406		$	7,636		$	8,741
Liabilities:
Other liabilities (3)		$	86		$	86		$	128		$	128
Total liabilities of consolidated VIEs		$	86		$	86		$	128		$	128

⁽¹⁾ Includes perpetual securities

⁽²⁾ Consists of TREs, CMLs, MMLs, and alternative investments in limited partnerships

⁽³⁾ Consists entirely of derivatives

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 the Company's investment in VIEs not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

	March 31, 2018						December 31, 2017
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale (1)		$	5,194		$	5,749		$	5,004		$	5,724
Fixed maturity securities, held to maturity		2,711			3,077			2,549			2,929
Other investments		110			108			55			55
Total investments in VIEs not consolidated		$	8,015		$	8,934		$	7,608		$	8,708

⁽¹⁾ Includes perpetual securities