Investment Income and Gains and Losses

12 Months Ended

Dec. 31, 2014

Investment Income And Gains And Losses [Abstract]

Note 14— Investment Income and Gains and Losses

Net Investment Income

The components of pre-tax net investment income for the years ended December 31 were as follows:

(In millions)	2014		2013		2012
Fixed maturities	$	876	$	823	$	843
Equity securities		3		6		4
Commercial mortgage loans		133		174		192
Policy loans		72		74		74
Other long-term investments		105		101		57
Short-term investments and cash		17		22		14
Total investment income		1,206		1,200		1,184
Less investment expenses		40		36		40
Net investment income	$	1,166	$	1,164	$	1,144

Net investment income for separate accounts that is excluded from the Company's revenues was $225 million for 2014, $232 million for 2013, and $181 million for 2012.

B. Realized Investment Gains and Losses

The following realized gains and losses on investments for the years ended December 31 exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.

(In millions)	2014		2013		2012
Fixed maturities	$	14	$	113	$	48
Equity securities		13		8		4
Commercial mortgage loans		(6)		(3)		(9)
Other investments, including derivatives		133		95		1
Realized investment gains, before income taxes		154		213		44
Less income taxes		48		72		13
Net realized investment gains	$	106	$	141	$	31

Included in these realized investment gains (losses) were pre-tax asset write-downs as follows:


(In millions)	2014		2013		2012
Credit related ⁽¹⁾	$	(16)	$	(8)	$	(20)
Other		(36)		(21)		(2)
Total	$	(52)	$	(29)	$	(22)

⁽¹⁾ Credit-related losses include other-than-temporary declines in fair value of equity securities, increases in valuation reserves on commercial mortgage loans and asset write-downs related to investments in real estate entities.

In 2014 and 2013, realized investment gains in other investments, including derivatives, primarily represented gains on sale of real estate properties held in joint ventures.

Realized investment gains that are excluded from the Company's revenues for the years ended December 31 were as follows:

(In millions)	2014		2013		2012
Separate accounts	$	376	$	417	$	206
Investment gains required to adjust future policy benefits for the run-off settlement annuity business	$	86	$	9	$	21

Sales information for available-for-sale fixed maturities and equity securities for the years ended December 31 were as follows:

(In millions)	2014		2013		2012
Proceeds from sales	$	1,769	$	1,775	$	591
Gross gains on sales	$	62	$	102	$	37
Gross losses on sales	$	6	$	4	$	2