Investment Income and Gains and Losses

12 Months Ended

Dec. 31, 2015

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)	2015		2014		2013
Fixed maturities	$	879	$	876	$	823
Equity securities		3		3		6
Commercial mortgage loans		112		133		174
Policy loans		72		72		74
Other long-term investments		116		105		101
Short-term investments and cash		14		17		22
Total investment income		1,196		1,206		1,200
Less investment expenses		43		40		36
Net investment income	$	1,153	$	1,166	$	1,164

Net investment income for separate accounts that is excluded from the Company's revenues was $262 million for 2015, $225 million for 2014, and $232 million for 2013.

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)	2015		2014		2013
Fixed maturities	$	(82)	$	14	$	113
Equity securities		36		13		8
Commercial mortgage loans		(2)		(6)		(3)
Other investments, including derivatives		105		133		95
Net realized investment gains, before income taxes		57		154		213
Less income taxes		17		48		72
Net realized investment gains	$	40	$	106	$	141

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


(In millions)	2015		2014		2013
Other-than-temporary impairments on debt securities:
Credit-related	$	(11)	$	-	$	-
Non credit-related⁽¹⁾		(101)		(36)		(11)
Total other-than-temporary impairments on debt securities		(112)		(36)		(11)
Other credit-related⁽²⁾		(28)		(16)		(8)
Other non credit-related		-		-		(10)
Total	$	(140)	$	(52)	$	(29)

⁽¹⁾ These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.
⁽²⁾ Other credit-related losses include other-than-temporary declines in the fair values of equity securities, increases in valuation reserves on commercial mortgage loans, and asset write-downs related to security partnerships and real estate investments.

Realized investment gains in other investments, including derivatives, represented primarily 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)	2015		2014		2013
Separate accounts	$	117	$	376	$	417
Investment gains required to adjust future policy benefits for the run-off settlement annuity business	$	114	$	86	$	9

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

(In millions)	2015		2014		2013
Proceeds from sales	$	1,555	$	1,769	$	1,775
Gross gains on sales	$	85	$	62	$	102
Gross losses on sales	$	13	$	6	$	4