XML 78 R49.htm IDEA: XBRL DOCUMENT v3.8.0.1
Investments (Tables)
12 Months Ended
Dec. 31, 2017
Investment [Line Items]  
Other long-term investments
Unfunded
Fair value as of December 31,Commitments as of
(In millions)20172016December 31, 2017
Real estate investments$591$738$270
Securities partnerships863650876
Other647432
Total$1,518$1,462$1,178
Schedule of short-term investments and cash equivalents
December 31,December 31,
(In millions)20172016
Corporate securities$1,143$2,234
Federal government securities$604$378
Foreign government securities$159$94
Money market funds$12$11
Components of pre-tax net investment income
(In millions)201720162015
Fixed maturities$946$899$879
Equity securities1443
Commercial mortgage loans8191112
Policy loans697272
Other long-term investments12498116
Short-term investments and cash422614
Total investment income1,2761,1901,196
Less investment expenses504343
Net investment income$1,226$1,147$1,153
Net investment income for separate accounts (1)$225$236$262
(1) Net investment income for these investments is excluded from the Company's revenues.
Realized gains and losses on investments
(In millions)201720162015
Fixed maturities$25$23$(82)
Equity securities52(1)36
Commercial mortgage loans(1)4(2)
Other investments, including derivatives161143105
Net realized investment gains, before income taxes23716957
Less income taxes816017
Net realized investment gains$156$109$40
Realized investment gains that are excluded from the Company's revenues
(In millions)201720162015
Separate accounts $ 157 $ 16 $ 117
Investment gains required to adjust future policy benefits for the run-off settlement annuity business$20$63$114
Sales information for available-for-sale fixed maturities and equity securities
(In millions)201720162015
Proceeds from sales $ 2,012 $ 1,544 $ 1,555
Gross gains on sales$103$83$85
Gross losses on sales $ (18) $ (7) $ (13)
Fixed Maturities [Member]  
Investment [Line Items]  
Investment maturities
Amortized Fair
(In millions)CostValue
Due in one year or less$1,511$1,522
Due after one year through five years6,6556,848
Due after five years through ten years9,3779,599
Due after ten years3,8554,672
Mortgage and other asset-backed securities469497
Total$21,867$23,138
Gross unrealized appreciation (depreciation) on fixed maturities
AmortizedUnrealizedUnrealizedFair
(In millions)CostAppreciationDepreciationValue
December 31, 2017
Federal government and agency$541 $ 239 $ (1) $ 779
State and local government1,19693(2)1,287
Foreign government2,360142(15)2,487
Corporate17,301868(81)18,088
Mortgage and other asset-backed46929(1)497
Total$21,867$1,371$(100)$23,138
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,200 $ 681 $ (2) $ 2,879
December 31, 2016
Federal government and agency$658 $ 223 $ (4)$877
State and local government1,34299(6)1,435
Foreign government1,998129(14)2,113
Corporate15,483716(149)16,050
Mortgage and other asset-backed46129(4)486
Total$19,942$1,196$(177)$20,961
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,196 $ 539 $ (15)$2,720
(1) Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
Fixed maturities with a decline in fair value from amortized cost
December 31, 2017December 31, 2016
Fair Amortized UnrealizedNumberFair Amortized UnrealizedNumber
(Dollars in millions)ValueCostDepreciationof IssuesValueCostDepreciationof Issues
One year or less
Investment grade$3,272$3,309$(37)797$4,346$4,475$(129)992
Below investment grade$543$553$(10)643$724$736$(12)591
More than one year
Investment grade$1,503$1,549$(46)373$308$327$(19)53
Below investment grade$155$162$(7)42$186$203$(17)28
Commercial Mortgage Loans [Member]  
Investment [Line Items]  
Commercial mortgage loans by property type and geographic region
(In millions)20172016
Property type
Office buildings$652$592
Apartment buildings608428
Industrial197302
Hotels 141205
Retail facilities135139
Other28-
Total$1,761$1,666
U.S. geographic region
Pacific$841$714
South Atlantic210268
New England238227
Central 237239
Middle Atlantic203186
Mountain3232
Total$1,761$1,666
Credit risk profile of commercial mortgage loan portfolio
(Dollars in millions)20172016
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$1,1092.03$9432.06
60% to 79%6522.24 7021.89
80% to 100%--21-
Total$1,7612.1157% $ 1,6661.9557%