CLOSED BLOCK (Tables)

9 Months Ended

Sep. 30, 2018

Summarized financial information for the Company’s Closed Block is as follows:



	September 30, 2018		December 31, 2017
	(in millions)
CLOSED BLOCK LIABILITIES:
Future policy benefits, policyholders’ account balances and other	6,788		6,958
Policyholder dividend obligation	—		19
Other liabilities	48		271
Total Closed Block liabilities	6,836		7,248
ASSETS DESIGNATED TO THE CLOSED BLOCK:
Fixed maturities, available for sale, at fair value (amortized cost of $3,681 and $3,923)	3,669		4,070
Mortgage loans on real estate	1,902		1,720
Policy loans	745		781
Cash and other invested assets	39		351
Other assets	187		182
Total assets designated to the Closed Block	6,542		7,104
Excess of Closed Block liabilities over assets designated to the Closed Block	294		144
Amounts included in accumulated other comprehensive income (loss):
Net unrealized investment gains (losses), net of policyholder dividend obligation of $0 and $19	(2	)	138
Maximum Future Earnings To Be Recognized From Closed Block Assets and Liabilities	292		282

The Company’s Closed Block revenues and expenses are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(in millions)
REVENUES:
Premiums and other income	44		52		144		167
Net investment income (loss)	72		82		218		244
Net investment gains (losses)	—		(2	)	1		(18	)
Total revenues	116		132		363		393
BENEFITS AND OTHER DEDUCTIONS:
Policyholders’ benefits and dividends	123		132		372		416
Other operating costs and expenses	1		1		3		2
Total benefits and other deductions	124		133		375		418
Net revenues (loss) before income taxes	(8	)	(1	)	(12	)	(25	)
Income tax (expense) benefit	2		1		2		9
Net revenues (losses)	(6	)	—		(10	)	(16	)

A reconciliation of the Company’s policyholder dividend obligation follows:



	Nine Months Ended September 30,
	2018			2017
	(in millions)
Balances, beginning of year	$	19		$	52
Unrealized investment gains (losses), net of DAC	(19		)	(5		)
Balances, end of period	$	—		$	47