
	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
(In millions)
Fixed maturity securities	$	455		$	444		$	910		$	890
Limited partnership investments		43			60			124			108
Short term investments		14			11			29			20
Equity securities		16			12			46			22
Income from trading portfolio (a)		29			23			110			20
Other		12			17			26			28
Total investment income		569			567			1,245			1,088
Investment expenses		(18	)		(16	)		(37	)		(31	)
Net investment income	$	551		$	551		$	1,208		$	1,057

(a)	Net unrealized gains (losses) related to changes in fair value on securities still held were $ 8 and $(4) for the three months ended June 30, 2019 and 2018 and $ 48 and $ (25 ) for the six months ended June 30, 2019 and 2018.

Investment gains (losses) are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
(In millions)

Fixed maturity securities	$	(3	)	$	4		$	(9	)	$	22
Equity securities		11			(10	)		53			(25	)
Derivative instruments		(6	)		4			(11	)		9
Short term investments and other					(1	)
Investment gains (losses) (a)	$	2		$	(3	)	$	33		$	6

(a)

Gross investment gains on

available-for-sale

securities were $

and $

for the three months ended June 30, 2019 and 2018 and $

and $

106

for the six months ended June 30, 2019 and 2018. Gross investment losses on

available-for-sale

securities were $

and $

for the three months ended June 30, 2019 and 2018 and $

and $

or the six months ended June 30, 2019 and 2018.

During the three and six months ended June 30, 2019,

and $

of Net investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2019. During the three and six months ended June 30, 2018,

and $

of Net investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of June 30, 2018.

The components of other-than-temporary impairment (“OTTI”) losses recognized in earnings by asset type are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
(In millions)

Fixed maturity securities available-for-sale:
Corporate and other bonds	$	6			$	12	$	5
Asset-backed						8		1
Net OTTI losses recognized in earnings	$	6	$	-	$	20	$	6

The amortized cost and fair values of fixed maturity securities are as follows:


June 30, 2019	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Unrealized OTTI Losses (Gains)
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	19,654	$	1,880	$	44	$	21,490
States, municipalities and political subdivisions		9,196		1,507				10,703
Asset-backed:
Residential mortgage-backed		4,668		131		2		4,797	$	(24	)
Commercial mortgage-backed		2,032		93		4		2,121
Other asset-backed		1,865		40		7		1,898		(2	)
Total asset-backed		8,565		264		13		8,816		(26	)
U.S. Treasury and obligations of government-sponsored enterprises		118		5				123
Foreign government		480		17				497
Redeemable preferred stock		10						10
Fixed maturities available-for-sale		38,023		3,673		57		41,639		(26	)
Fixed maturities trading		22		2				24
Total fixed maturity securities	$	38,045	$	3,675	$	57	$	41,663	$	(26	)


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

Fixed maturity securities:
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
Fixed maturities available-for-sale		38,081		1,982		521		39,542		(20	)
Fixed maturities trading		153		4				157
Total fixed maturities	$	38,234	$	1,986	$	521	$	39,699	$	(20	)

The net unrealized gains on

available-for-sale

investments included in the tables above are recorded as a component of Accumulated other comprehensive income (“AOCI”). When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting long term care products and structured settlements not funded by annuities would result in a premium deficiency if those gains were realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (“Shadow Adjustments”). As of June 30, 2019 and December 31, 2018, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $

1.6

billion and $964 million (after tax and noncontrolling interests).

The

available-for-sale

securities in a gross unrealized loss position are as follows:


	Less than 12 Months				12 Months or Longer				Total
June 30, 2019	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	776	$	22	$	498	$	22	$	1,274	$	44
States, municipalities and political subdivisions		19				2				21
Asset-backed:
Residential mortgage-backed		163				134		2		297		2
Commercial mortgage-backed		58		2		69		2		127		4
Other asset-backed		386		5		77		2		463		7
Total asset-backed		607		7		280		6		887		13
U.S. Treasury and obligations of government-sponsored enterprises						4				4
Foreign government		3				11				14
Total fixed maturity securities	$	1,405	$	29	$	795	$	28	$	2,200	$	57

December 31, 2018

Fixed maturity securities:
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 fixed maturity securities	$	12,689	$	404	$	2,614	$	117	$	15,303	$	521

Based on current facts and circumstances, the Company believes the unrealized losses presented in the June 30, 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 June 30, 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 June 30, 2019 and 2018 for which a portion of an OTTI loss was recognized in OCI.


	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
(In millions)

Beginning balance of credit losses on fixed maturity securities	$	17		$	25		$	18		$	27
Reductions for securities sold during the period		(1	)		(4	)		(2	)		(6	)
Ending balance of credit losses on fixed maturity securities	$	16		$	21		$	16		$	21

Contractual Maturity

The following table presents

available-for-sale

fixed maturity securities by contractual maturity.


	June 30, 2019				December 31, 2018
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	1,018	$	1,032	$	1,350	$	1,359
Due after one year through five years		8,097		8,476		7,979		8,139
Due after five years through ten years		16,403		17,297		16,859		16,870
Due after ten years		12,505		14,834		11,893		13,174
Total	$	38,023	$	41,639	$	38,081	$	39,542

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

Derivative Financial Instruments

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under the agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.


	June 30, 2019							December 31, 2018
	Contractual/ Notional		Estimated Fair Value					Contractual/ Notional		Estimated Fair Value
	Amount		Asset		(Liability)			Amount		Asset		(Liability)
(In millions)

With hedge designation:

Interest rate swaps	$	540			$	(9	)	$	500	$	11

Without hedge designation:

Equity markets:
Options – purchased		303	$	5					213		18
– written		95				(3	)		239				$	(17	)
Futures – short
Commodity futures – long		11							32
Embedded derivative on funds withheld liability		172				(8	)		172		4