Investments (Tables)

9 Months Ended

Sep. 30, 2018



Net Realized Capital Gains
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Gross gains on sales	$	26		$	46		$	91		$	184
Gross losses on sales	(41		)	(16		)	(129		)	(84		)
Equity securities [1]	46			—			88			—
Net OTTI losses recognized in earnings	(1		)	(1		)	(1		)	(4		)
Transactional foreign currency revaluation	—			—			1			14
Non-qualifying foreign currency derivatives	1			—			2			(14		)
Other, net [2]	7			(3		)	8			9
Net realized capital gains	$	38		$	26		$	60		$	105


[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 $8 and $(1), respectively, for the three months ended September 30, 2018 and 2017. For the nine months ended September 30, 2018 and 2017, the non-qualifying derivatives, excluding foreign currency derivatives, were $6 and $7, respectively.

Impairments



Impairments in Earnings by Type
	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Credit impairments	$	1	$	—	$	1	$	2
Intent-to-sell impairments	—		—		—		—
Impairments on equity securities	—		1		—		2
Total impairments	$	1	$	1	$	1	$	4



Cumulative Credit Impairments
	Three Months Ended September 30,						Nine Months Ended September 30,
(Before tax)	2018			2017			2018			2017
Balance as of beginning of period	$	(20	)	$	(94	)	$	(25	)	$	(110	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	—			—			—			—
Securities previously impaired	(1		)	—			(1		)	(2		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	1			—			6			8
Securities due to an increase in expected cash flows	—			—			—			10
Balance as of end of period	$	(20	)	$	(94	)	$	(20	)	$	(94	)


[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
	September 30, 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	$	1,191	$	3	$	(3	)	$	1,191	$	—		$	1,119	$	9	$	(2	)	$	1,126	$	—
CLOs	1,328		1		(3		)	1,326		—			1,257		3		—			1,260		—
CMBS	3,718		25		(86		)	3,657		(5		)	3,304		58		(26		)	3,336		(5		)
Corporate	13,640		176		(324		)	13,492		—			12,370		490		(56		)	12,804		—
Foreign govt./govt. agencies	961		11		(20		)	952		—			1,071		43		(4		)	1,110		—
Municipal	10,276		402		(76		)	10,602		—			11,743		754		(12		)	12,485		—
RMBS	3,126		44		(52		)	3,118		—			2,985		63		(4		)	3,044		—
U.S. Treasuries	1,854		17		(43		)	1,828		—			1,763		46		(10		)	1,799		—
Total fixed maturities, AFS	36,094		679		(607		)	36,166		(5		)	35,612		1,466		(114		)	36,964		(5		)
Equity securities, AFS [2]													907		121		(16		)	1,012		—
Total AFS securities	$	36,094	$	679	$	(607	)	$	36,166	$	(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 September 30, 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 September 30, 2018

Investments by Contractual Maturity Year



Fixed maturities, AFS, by Contractual Maturity Year
	September 30, 2018				December 31, 2017
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,033	$	1,037	$	1,507	$	1,513
Over one year through five years	6,233		6,242		5,007		5,119
Over five years through ten years	6,543		6,469		6,505		6,700
Over ten years	12,922		13,126		13,928		14,866
Subtotal	26,731		26,874		26,947		28,198
Mortgage-backed and asset-backed securities	9,363		9,292		8,665		8,766
Total fixed maturities, AFS	$	36,094	$	36,166	$	35,612	$	36,964

Unrealized Loss on Investments



Unrealized Loss Aging for AFS Securities by Type and Length of Time as of September 30, 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	$	668	$	666	$	(2	)	$	74	$	73	$	(1	)	$	742	$	739	$	(3	)
CLOs	929		926		(3		)	10		10		—			939		936		(3		)
CMBS	1,995		1,952		(43		)	740		697		(43		)	2,735		2,649		(86		)
Corporate	7,586		7,364		(222		)	1,412		1,310		(102		)	8,998		8,674		(324		)
Foreign govt./govt. agencies	552		537		(15		)	95		90		(5		)	647		627		(20		)
Municipal	2,206		2,151		(55		)	266		245		(21		)	2,472		2,396		(76		)
RMBS	1,795		1,751		(44		)	184		176		(8		)	1,979		1,927		(52		)
U.S. Treasuries	1,024		1,001		(23		)	402		382		(20		)	1,426		1,383		(43		)
Total fixed maturities, AFS in an unrealized loss position	$	16,755	$	16,348	$	(407	)	$	3,183	$	2,983	$	(200	)	$	19,938	$	19,331	$	(607	)



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	)
CLOs	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 September 30, 2018.

Securities Lending and Repurchase Agreements [Table Text Block]



Securities Lending and Repurchase Agreements
	September 30, 2018		December 31, 2017
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	697	$	922
Gross amount of associated liability for collateral received [1]	$	714	$	945

Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	167	$	174
Gross amount of collateral pledged related to repurchase agreements [2]	$	168	$	176
Gross amount of recognized receivables for reverse repurchase agreements	$	36	$	—


[1]	Cash collateral received is reinvested in fixed maturities, AFS and short term investments and is included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $2 and $0 million which are excluded from the Company's Condensed Consolidated Balance Sheets as of September 30, 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.

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets



Valuation Allowance Activity
	2018			2017
Balance, as of January 1	$	(1	)	$	—
Reversals/(Additions)	—			(1		)
Deductions	—			1
Balance, as of September 30	$	(1	)	$	—

Loans Credit Quality



Mortgage Loans Credit Quality
	September 30, 2018			December 31, 2017
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	—	—	$	18	1.27x
65% - 80%	406		1.68x	265		1.95x
Less than 65%	3,153		2.60x	2,892		2.76x
Total mortgage loans	$	3,559	2.50x	$	3,175	2.69x

Mortgage Loans



Mortgage Loans by Region
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	250	7.0	%	$	251	7.9	%
Middle Atlantic	271		7.6	%	272		8.6	%
Mountain	31		0.9	%	31		1.0	%
New England	290		8.2	%	293		9.2	%
Pacific	870		24.4	%	760		23.9	%
South Atlantic	713		20.0	%	710		22.4	%
West North Central	148		4.2	%	149		4.7	%
West South Central	421		11.8	%	278		8.7	%
Other [1]	565		15.9	%	431		13.6	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%


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



Mortgage Loans by Property Type
	September 30, 2018				December 31, 2017
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	$	1,018	28.6	%	$	817	25.7	%
Multifamily	1,083		30.4	%	1,006		31.7	%
Office	760		21.4	%	751		23.7	%
Retail	373		10.5	%	367		11.5	%
Single Family	82		2.3	%	—		—	%
Other	243		6.8	%	234		7.4	%
Total mortgage loans	$	3,559	100.0	%	$	3,175	100.0	%