Level 3~Investments (Tables)

3 Months Ended

Mar. 31, 2018



Net Realized Capital Gains (Losses)
	Three Months Ended March 31,
(Before tax)	2018			2017
Gross gains on sales	$	19		$	61
Gross losses on sales	(57		)	(46		)
Equity securities [1]	16			—
Net OTTI losses recognized in earnings	—			(1		)
Transactional foreign currency revaluation	1			6
Non-qualifying foreign currency derivatives	(3		)	(7		)
Other, net [2]	(6		)	11
Net realized capital gains (losses)	$	(30	)	$	24


[1]	Effective January 1, 2018, with adoption of new accounting guidance for equity securities at fair value, includes all changes in fair value and trading gains and losses for equity securities.


[2]	Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $(10) and $7, respectively, for the three months ended March 31, 2018 and 2017.

Impairments



Impairments in Earnings by Type
	Three Months Ended March 31,
	2018		2017
Credit impairments	$	—	$	1
Intent-to-sell impairments	—		—
Impairments on equity securities	—		—
Total impairments	$	—	$	1



Cumulative Credit Impairments
	Three Months Ended March 31,
(Before tax)	2018			2017
Balance as of beginning of period	$	(25	)	$	(110	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	—			(1		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	4			7
Securities due to an increase in expected cash flows	—			5
Balance as of end of period	$	(21	)	$	(99	)


[1]	These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.

Schedule of Available-for-sale Securities

Available-for-Sale Securities



AFS Securities by Type
	March 31, 2018												December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]			Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Non-Credit OTTI [1]
ABS	$	911	$	6	$	(6	)	$	911	$	—		$	1,119	$	9	$	(2	)	$	1,126	$	—
CDOs	1,145		1		(2		)	1,144		—			1,257		3		—			1,260		—
CMBS	3,334		34		(57		)	3,311		(5		)	3,304		58		(26		)	3,336		(5		)
Corporate	12,550		294		(210		)	12,634		—			12,370		490		(56		)	12,804		—
Foreign govt./govt. agencies	1,076		22		(16		)	1,082		—			1,071		43		(4		)	1,110		—
Municipal	11,052		541		(49		)	11,544		—			11,743		754		(12		)	12,485		—
RMBS	3,064		54		(32		)	3,086		—			2,985		63		(4		)	3,044		—
U.S. Treasuries	2,198		35		(21		)	2,212		—			1,763		46		(10		)	1,799		—
Total fixed maturities, AFS	35,330		987		(393		)	35,924		(5		)	35,612		1,466		(114		)	36,964		(5		)
Equity securities, AFS [2]													907		121		(16		)	1,012		—
Total AFS securities	$	35,330	$	987	$	(393	)	$	35,924	$	(5	)	$	36,519	$	1,587	$	(130	)	$	37,976	$	(5	)


[1]	Represents the amount of cumulative non-credit OTTI losses recognized in OCI on securities that also had credit impairments. These losses are included in gross unrealized losses in AOCI as of March 31, 2018, and December 31, 2017.


[2]	Effective January 1, 2018, with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of March 31, 2018.



Fixed maturities, AFS, by Contractual Maturity Year
	March 31, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,425	$	1,430	$	1,507	$	1,513
Over one year through five years	5,361		5,414		5,007		5,119
Over five years through ten years	6,499		6,525		6,505		6,700
Over ten years	13,591		14,103		13,928		14,866
Subtotal	26,876		27,472		26,947		28,198
Mortgage-backed and asset-backed securities	8,454		8,452		8,665		8,766
Total fixed maturities, AFS	$	35,330	$	35,924	$	35,612	$	36,964

Investments by Contractual Maturity Year



Fixed maturities, AFS, by Contractual Maturity Year
	March 31, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,425	$	1,430	$	1,507	$	1,513
Over one year through five years	5,361		5,414		5,007		5,119
Over five years through ten years	6,499		6,525		6,505		6,700
Over ten years	13,591		14,103		13,928		14,866
Subtotal	26,876		27,472		26,947		28,198
Mortgage-backed and asset-backed securities	8,454		8,452		8,665		8,766
Total fixed maturities, AFS	$	35,330	$	35,924	$	35,612	$	36,964

Unrealized Loss on Investments



Unrealized Loss Aging for AFS Securities by Type and Length of Time as of March 31, 2018
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	520	$	515	$	(5	)	$	33	$	32	$	(1	)	$	553	$	547	$	(6	)
CDOs	905		903		(2		)	—		—		—			905		903		(2		)
CMBS	1,701		1,662		(39		)	242		224		(18		)	1,943		1,886		(57		)
Corporate	5,931		5,785		(146		)	1,066		1,002		(64		)	6,997		6,787		(210		)
Foreign govt./govt. agencies	552		539		(13		)	51		48		(3		)	603		587		(16		)
Municipal	2,077		2,044		(33		)	230		214		(16		)	2,307		2,258		(49		)
RMBS	1,448		1,421		(27		)	132		127		(5		)	1,580		1,548		(32		)
U.S. Treasuries	850		838		(12		)	272		263		(9		)	1,122		1,101		(21		)
Total fixed maturities, AFS in an unrealized loss position	13,984		13,707		(277		)	2,026		1,910		(116		)	16,010		15,617		(393		)



Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2017
	Less Than 12 Months							12 Months or More							Total
	Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses			Amortized Cost		Fair Value		Unrealized Losses
ABS	$	461	$	460	$	(1	)	$	30	$	29	$	(1	)	$	491	$	489	$	(2	)
CDOs	359		359		—			1		1		—			360		360		—
CMBS	1,178		1,167		(11		)	243		228		(15		)	1,421		1,395		(26		)
Corporate	2,322		2,302		(20		)	1,064		1,028		(36		)	3,386		3,330		(56		)
Foreign govt./govt. agencies	244		242		(2		)	51		49		(2		)	295		291		(4		)
Municipal	511		507		(4		)	236		228		(8		)	747		735		(12		)
RMBS	889		887		(2		)	137		135		(2		)	1,026		1,022		(4		)
U.S. Treasuries	658		652		(6		)	254		250		(4		)	912		902		(10		)
Total fixed maturities, AFS	6,622		6,576		(46		)	2,016		1,948		(68		)	8,638		8,524		(114		)
Equity securities, AFS [1]	176		163		(13		)	24		21		(3		)	200		184		(16		)
Total securities in an unrealized loss position	$	6,798	$	6,739	$	(59	)	$	2,040	$	1,969	$	(71	)	$	8,838	$	8,708	$	(130	)

[1]Effective January 1, 2018, with the adoption of new accounting guidance for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of March 31, 2018.

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block]



Valuation Allowance Activity
	2018			2017
Balance, as of January 1	$	(1	)	$	—
Reversals	—			—
Deductions	—			—
Balance, as of March 31	$	(1	)	$	—

Loans Credit Quality



Commercial Mortgage Loans Credit Quality
	March 31, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	0.00x	$	18	1.27x
65% - 80%	265		1.95x	265		1.95x
Less than 65%	2,956		2.78x	2,892		2.76x
Total commercial mortgage loans	$	3,221	2.71x	$	3,175	2.69x

Mortgage Loans



Commercial Mortgage Loans Credit Quality
	March 31, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	0.00x	$	18	1.27x
65% - 80%	265		1.95x	265		1.95x
Less than 65%	2,956		2.78x	2,892		2.76x
Total commercial mortgage loans	$	3,221	2.71x	$	3,175	2.69x



Mortgage Loans by Region
	March 31, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	251	7.8	%	$	251	7.9	%
Middle Atlantic	272		8.4	%	272		8.6	%
Mountain	31		1.0	%	31		1.0	%
New England	292		9.1	%	293		9.2	%
Pacific	828		25.7	%	760		23.9	%
South Atlantic	693		21.5	%	710		22.4	%
West North Central	148		4.6	%	149		4.7	%
West South Central	277		8.6	%	278		8.7	%
Other [1]	429		13.3	%	431		13.6	%
Total mortgage loans	$	3,221	100.0	%	$	3,175	100.0	%


[1]	Primarily represents loans collateralized by multiple properties in various regions.



Mortgage Loans by Property Type
	March 31, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	$	830	25.8	%	$	817	25.7	%
Multifamily	1,043		32.4	%	1,006		31.7	%
Office	749		23.3	%	751		23.7	%
Retail	365		11.2	%	367		11.5	%
Other	234		7.3	%	234		7.4	%
Total mortgage loans	$	3,221	100.0	%	$	3,175	100.0	%

Offsetting Liabilities



Securities Lending and Repurchase Agreements
	March 31, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	741	$	922
Gross amount of associated liability for collateral received [1]	$	755	$	945

Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	171	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	174	$	176


[1]	Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $4 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, respectively.


[2]	Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Condensed Consolidated Balance Sheets.



Offsetting Derivative Assets and Liabilities
	(i)			(ii)			(iii) = (i) - (ii)						(iv)				(v) = (iii) - (iv)
							Net Amounts Presented in the Statement of Financial Position							Collateral Disallowed for Offset in the Statement of Financial Position
	Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset in the Statement of Financial Position			Derivative Assets [1] (Liabilities) [2]			Accrued Interest and Cash Collateral (Received) [3] Pledged [2]				Financial Collateral (Received) Pledged [4]			Net Amount
As of March 31, 2018
Other investments	$	499		$	497		$	12		$	(10	)		$	2		$	—
Other liabilities	$	(573	)	$	(478	)	$	(86	)	$	(9	)		$	(85	)	$	(10	)
As of December 31, 2017
Other investments	$	469		$	466		$	10		$	(7	)		$	1		$	2
Other liabilities	$	(559	)	$	(454	)	$	(100	)	$	(5	)		$	(96	)	$	(9	)


[1]	Included in other investments in the Company's Condensed Consolidated Balance Sheets.


[2]	Included in other liabilities in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative payable associated with each counterparty.


[3]	Included in other investments in the Company's Condensed Consolidated Balance Sheets and is limited to the net derivative receivable associated with each counterparty.


[4]	Excludes collateral associated with exchange-traded derivative instruments.