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Investments (Tables)
 9 Months Ended
Sep. 30, 2018
Investments [Abstract]  
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains and losses and fair value for fixed income securities
($ in millions)
 
Amortized cost
 
Gross unrealized
 
Fair
value
 
 
Gains
 
Losses
 
September 30, 2018
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,142

 
$
36

 
$
(27
)
 
$
3,151

Municipal
 
9,316

 
204

 
(105
)
 
9,415

Corporate
 
42,828

 
557

 
(723
)
 
42,662

Foreign government
 
854

 
12

 
(12
)
 
854

Asset-backed securities (“ABS”)
 
979

 
8

 
(8
)
 
979

Residential mortgage-backed securities (“RMBS”)
 
404

 
98

 
(2
)
 
500

Commercial mortgage-backed securities (“CMBS”)
 
74

 
7

 
(1
)
 
80

Redeemable preferred stock
 
21

 
1

 
—

 
22

Total fixed income securities
 
$
57,618

 
$
923

 
$
(878
)
 
$
57,663

 
 
 
 
 
 
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,580

 
$
56

 
$
(20
)
 
$
3,616

Municipal
 
8,053

 
311

 
(36
)
 
8,328

Corporate
 
42,996

 
1,234

 
(204
)
 
44,026

Foreign government
 
1,005

 
27

 
(11
)
 
1,021

ABS
 
1,266

 
13

 
(7
)
 
1,272

RMBS
 
480

 
101

 
(3
)
 
578

CMBS
 
124

 
6

 
(2
)
 
128

Redeemable preferred stock
 
21

 
2

 
—

 
23

Total fixed income securities
 
$
57,525

 
$
1,750

 
$
(283
)
 
$
58,992
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
($ in millions)
 
As of September 30, 2018
 
Amortized cost
 
Fair value
Due in one year or less
 
$
4,038

 
$
4,042

Due after one year through five years
 
28,963

 
28,812

Due after five years through ten years
 
16,216

 
15,987

Due after ten years
 
6,944

 
7,263

 
 
56,161

 
56,104

ABS, RMBS and CMBS
 
1,457

 
1,559

Total
 
$
57,618

 
$
57,663
Schedule of net investment income
Net investment income
 
 
 
 
($ in millions)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
2018
 
2017
Fixed income securities
 
$
527

 
$
519

 
$
1,544

 
$
1,564

Equity securities
 
35

 
37

 
130

 
130

Mortgage loans
 
52

 
52

 
163

 
157

Limited partnership interests (1)(2)
 
210

 
223

 
563

 
596

Short-term investments
 
19

 
9

 
50

 
21

Other
 
71

 
58

 
205

 
174

Investment income, before expense
 
914

 
898

 
2,655

 
2,642

Investment expense
 
(70
)
 
(55
)
 
(201
)
 
(154
)
Net investment income 
 
$
844

 
$
843

 
$
2,454

 
$
2,488


(1) 
Due to the adoption of the recognition and measurement accounting standard, limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net investment income.
(2) 
Includes net investment income of $135 million and $381 million for EMA limited partnership interests and $75 million and $182 million for limited partnership interests carried at fair value for the three and nine months ended September 30, 2018, respectively.
Schedule of realized capital gains and losses by asset type
Realized capital gains and losses by asset type
 
 
 
 
 
 
 
 
($ in millions)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
2018
 
2017
Fixed income securities
 
$
(30
)
 
$
41

 
$
(153
)
 
$
78

Equity securities
 
223

 
57

 
204

 
182

Mortgage loans
 
—

 
1

 
2

 
1

Limited partnership interests
 
(23
)
 
21

 
(56
)
 
92

Derivatives
 
5

 
(17
)
 
20

 
(40
)
Other
 
1

 
—

 
—

 
5

Realized capital gains and losses
 
$
176

 
$
103

 
$
17

 
$
318
Schedule of realized capital gains and losses by transaction type
Realized capital gains and losses by transaction type
 
 
 
 
 
 
 
 
($ in millions)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2018
 
2017
 
2018
 
2017
Impairment write-downs (1)
 
$
(5
)
 
$
(23
)
 
$
(10
)
 
$
(94
)
Change in intent write-downs (1)
 
—

 
(5
)
 
—

 
(43
)
Net OTTI losses recognized in earnings
 
(5
)
 
(28
)
 
(10
)
 
(137
)
Sales (1)
 
(22
)
 
148

 
(139
)
 
495

Valuation of equity investments (1)
 
198

 
—

 
149

 
—

Valuation and settlements of derivative instruments
 
5

 
(17
)
 
17

 
(40
)
Realized capital gains and losses
 
$
176

 
$
103

 
$
17

 
$
318

(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities are reported at fair value with changes in fair value recognized in valuation of equity investments and are no longer included in impairment write-downs, change in intent write-downs and sales.
Valuation changes included in net income for investments
Valuation changes included in net income for investments still held as of September 30, 2018
($ in millions)
 
Three months ended
September 30, 2018
 
Nine months ended
September 30, 2018
Equity securities (1)
 
$
234

 
$
321

Limited partnership interests carried at fair value (1)
 
75

 
181

Total valuation changes
 
$
309

 
$
502

(1) 
Investments held at the end of a prior quarter that were sold in the current quarter are not included in the year-to-date amounts shown in the table above; therefore, the sum of the quarterly amounts may not equal the year-to-date amount.
Schedule of other-than-temporary impairment losses by asset type
OTTI losses by asset type
($ in millions)
 
Three months ended September 30, 2018
 
Three months ended September 30, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

ABS
 
—

 
(1
)
 
(1
)
 
—

 
(1
)
 
(1
)
RMBS
 
—

 
—

 
—

 
—

 
—

 
—

CMBS
 
(2
)
 
—

 
(2
)
 
(1
)
 
(1
)
 
(2
)
Total fixed income securities
 
(2
)
 
(1
)
 
(3
)
 
(1
)
 
(2
)
 
(3
)
Equity securities (1)
 
—

 
—

 
—

 
(8
)
 
—

 
(8
)
Mortgage loans
 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Limited partnership interests (1)
 
(2
)
 
—

 
(2
)
 
(16
)
 
—

 
(16
)
Other
 
—

 
—

 
—

 
—

 
—

 
—

OTTI losses
 
$
(4
)
 
$
(1
)
 
$
(5
)
 
$
(26
)
 
$
(2
)
 
$
(28
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 
Nine months ended September 30, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Municipal
 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(2
)
 
$
(3
)
Corporate
 
—

 
—

 
—

 
(9
)
 
3

 
(6
)
ABS
 
(1
)
 
(1
)
 
(2
)
 
(1
)
 
(1
)
 
(2
)
RMBS
 
(1
)
 
—

 
(1
)
 
(1
)
 
(3
)
 
(4
)
CMBS
 
(2
)
 
(1
)
 
(3
)
 
(9
)
 
1

 
(8
)
Total fixed income securities
 
(4
)
 
(2
)
 
(6
)
 
(21
)
 
(2
)
 
(23
)
Equity securities (1)
 
—

 
—

 
—

 
(77
)
 
—

 
(77
)
Mortgage loans
 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Limited partnership interests (1)
 
(3
)
 
—

 
(3
)
 
(32
)
 
—

 
(32
)
Other
 
(1
)
 
—

 
(1
)
 
(4
)
 
—

 
(4
)
OTTI losses
 
$
(8
)
 
$
(2
)
 
$
(10
)
 
$
(135
)
 
$
(2
)
 
$
(137
)
(1) 
Due to the adoption of the recognition and measurement accounting standard, equity securities and limited partnerships previously reported using the cost method are now reported at fair value with changes in fair value recognized in net income and are no longer included in the table above.
Schedule of other-than-temporary impairment losses on fixed income securities included in Accumulated Other Comprehensive Income
OTTI losses included in AOCI at the time of impairment for fixed income securities
($ in millions)
 
September 30, 2018
 
December 31, 2017
Municipal
 
$
(5
)
 
$
(5
)
ABS
 
(11
)
 
(15
)
RMBS
 
(68
)
 
(77
)
CMBS
 
(3
)
 
(4
)
Total
 
$
(87
)
 
$
(101
)
Schedule of credit losses on fixed income securities recognized in earnings
Rollforward of the cumulative credit losses recognized in earnings for fixed income securities held as of September 30,
($ in millions)
 
Three months ended
 
Nine months ended September 30,
 
2018
 
2017
 
2018
 
2017
Beginning balance
 
$
(206
)
 
$
(281
)
 
$
(226
)
 
$
(318
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(3
)
 
(3
)
 
(5
)
 
(15
)
Additional credit loss for securities not previously other-than-temporarily impaired
 
—

 
—

 
(1
)
 
(8
)
Reduction in credit loss for securities disposed or collected
 
4

 
20

 
26

 
76

Change in credit loss due to accretion of increase in cash flows
 
—

 
—

 
1

 
1

Ending balance
 
$
(205
)
 
$
(264
)
 
$
(205
)
 
$
(264
)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
September 30, 2018
 
 
Gains
 
Losses
 
Fixed income securities
 
$
57,663

 
$
923

 
$
(878
)
 
$
45

Short-term investments
 
3,071

 
—

 
—

 
—

Derivative instruments
 
—

 
—

 
(3
)
 
(3
)
EMA limited partnerships (1)
 
 

 
 

 
 

 
2

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
44

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (2)
 
 

 
 

 
 

 
—

DAC and DSI (3)
 
 

 
 

 
 

 
(62
)
Amounts recognized
 
 

 
 

 
 

 
(62
)
Deferred income taxes
 
 

 
 

 
 

 
2

Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
(16
)

(1) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
(2) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).
(3) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Unrealized net capital gains and losses included in AOCI
($ in millions)
 
Fair
value
 
Gross unrealized
 
Unrealized net
gains (losses)
December 31, 2017
 
 
Gains
 
Losses
 
Fixed income securities
 
$
58,992

 
$
1,750

 
$
(283
)
 
$
1,467

Equity securities
 
6,621

 
1,172

 
(12
)
 
1,160

Short-term investments
 
1,944

 
—

 
—

 
—

Derivative instruments (1)
 
2

 
2

 
(3
)
 
(1
)
EMA limited partnerships
 
 

 
 

 
 

 
1

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
2,627

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves
 
 

 
 

 
 

 
(315
)
DAC and DSI
 
 

 
 

 
 

 
(196
)
Amounts recognized
 
 

 
 

 
 

 
(511
)
Deferred income taxes
 
 

 
 

 
 

 
(454
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
1,662

(1) Included in the fair value of derivative instruments is $2 million classified as liabilities.
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains and losses
($ in millions)
 
Nine months ended September 30, 2018
Fixed income securities
 
$
(1,422
)
Equity securities (1)
 
—

Derivative instruments
 
(2
)
EMA limited partnerships
 
1

Total
 
(1,423
)
Amounts recognized for:
 
 

Insurance reserves
 
315

DAC and DSI
 
134

Amounts recognized
 
449

Deferred income taxes
 
206

Decrease in unrealized net capital gains and losses, after-tax
 
$
(768
)
(1) Upon adoption of the recognition and measurement accounting standard on January 1, 2018, $1.16 billion of pre-tax unrealized net capital gains for equity securities were reclassified from AOCI to retained income.  See Note 1 of the condensed consolidated financial statements.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position

($ in millions)
 
Less than 12 months
 
12 months or more
 
Total
unrealized
losses
 
Number
of issues
 
Fair
value
 
Unrealized
losses
 
Number
of issues
 
Fair
value
 
Unrealized
losses
 
September 30, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
65

 
$
2,517

 
$
(23
)
 
26

 
$
175

 
$
(4
)
 
$
(27
)
Municipal
 
3,192

 
5,600

 
(75
)
 
480

 
667

 
(30
)
 
(105
)
Corporate
 
1,823

 
24,061

 
(500
)
 
329

 
4,274

 
(223
)
 
(723
)
Foreign government
 
26

 
166

 
(2
)
 
25

 
432

 
(10
)
 
(12
)
ABS
 
68

 
442

 
(3
)
 
19

 
107

 
(5
)
 
(8
)
RMBS
 
97

 
21

 
—

 
182

 
53

 
(2
)
 
(2
)
CMBS
 
5

 
18

 
—

 
3

 
1

 
(1
)
 
(1
)
Total fixed income securities
 
5,276

 
$
32,825

 
$
(603
)
 
1,064

 
$
5,709

 
$
(275
)
 
$
(878
)
Investment grade fixed income securities
 
4,939

 
$
30,338

 
$
(529
)
 
1,015

 
$
5,461

 
$
(253
)
 
$
(782
)
Below investment grade fixed income securities
 
337

 
2,487

 
(74
)
 
49

 
248

 
(22
)
 
(96
)
Total fixed income securities
 
5,276

 
$
32,825

 
$
(603
)
 
1,064

 
$
5,709

 
$
(275
)
 
$
(878
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
66

 
$
2,829

 
$
(18
)
 
18

 
$
182

 
$
(2
)
 
$
(20
)
Municipal
 
1,756

 
3,143

 
(24
)
 
165

 
349

 
(12
)
 
(36
)
Corporate
 
781

 
11,616

 
(102
)
 
208

 
3,289

 
(102
)
 
(204
)
Foreign government
 
45

 
580

 
(10
)
 
5

 
44

 
(1
)
 
(11
)
ABS
 
57

 
476

 
(3
)
 
9

 
34

 
(4
)
 
(7
)
RMBS
 
118

 
35

 
(1
)
 
181

 
50

 
(2
)
 
(3
)
CMBS
 
2

 
1

 
—

 
6

 
23

 
(2
)
 
(2
)
Redeemable preferred stock
 
1

 
—

 
—

 
—

 
—

 
—

 
—

Total fixed income securities
 
2,826

 
18,680

 
(158
)
 
592

 
3,971

 
(125
)
 
(283
)
Equity securities
 
127

 
369

 
(12
)
 
2

 
—

 
—

 
(12
)
Total fixed income and equity securities
 
2,953

 
$
19,049

 
$
(170
)
 
594

 
$
3,971

 
$
(125
)
 
$
(295
)
Investment grade fixed income securities
 
2,706

 
$
17,668

 
$
(134
)
 
535

 
$
3,751

 
$
(98
)
 
$
(232
)
Below investment grade fixed income securities
 
120

 
1,012

 
(24
)
 
57

 
220

 
(27
)
 
(51
)
Total fixed income securities
 
2,826

 
$
18,680

 
$
(158
)
 
592

 
$
3,971

 
$
(125
)
 
$
(283
)
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution
Carrying value of non-impaired mortgage loans summarized by debt service coverage ratio distribution
($ in millions)
 
September 30, 2018
 
December 31, 2017
Debt service coverage ratio distribution
 
Fixed rate
mortgage
loans
 
Variable rate
mortgage
loans
 
Total
 
Fixed rate
mortgage
loans
 
Variable rate
mortgage
loans
 
Total
Below 1.0
 
$
2

 
$
30

 
$
32

 
$
3

 
$
—

 
$
3

1.0 - 1.25
 
218

 
—

 
218

 
345

 
—

 
345

1.26 - 1.50
 
1,216

 
—

 
1,216

 
1,141

 
30

 
1,171

Above 1.50
 
3,021

 
101

 
3,122

 
2,949

 
62

 
3,011

Total non-impaired mortgage loans
 
$
4,457

 
$
131

 
$
4,588

 
$
4,438

 
$
92

 
$
4,530
Net carrying value of impaired mortgage loans
Net carrying value of impaired mortgage loans
($ in millions)
 
September 30, 2018
 
December 31, 2017
Impaired mortgage loans with a valuation allowance
 
$
4

 
$
4

Impaired mortgage loans without a valuation allowance
 
—

 
—

Total impaired mortgage loans
 
$
4

 
$
4

Valuation allowance on impaired mortgage loans
 
$
3

 
$
3
Schedule of other investments by type
Other investments by asset type
($ in millions)
 
September 30, 2018
 
December 31, 2017
Bank loans
 
$
1,608

 
$
1,702

Policy loans
 
900

 
905

Real estate
 
776

 
632

Agent loans
 
597

 
538

Other
 
194

 
195

Total
 
$
4,075

 
$
3,972