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Investments (Tables) | 12 Months Ended
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Dec. 31, 2019
Investments [Abstract] |
Total investments | Total investments at December 31, 2019 and 2018 were as follows:
| 2019 |  | 2018
In millions | Current |  | Long-term |  | Total |  | Current |  | Long-term |  | Total
Debt securities available for sale | $ | 2,251 |  |  | $ | 14,671 |  |  | $ | 16,922 |  |  | $ | 2,359 |  |  | $ | 12,896 |  |  | $ | 15,255 |
Mortgage loans | 122 |  |  | 1,091 |  |  | 1,213 |  |  | 145 |  |  | 1,216 |  |  | 1,361 |
Other investments | — |  |  | 1,552 |  |  | 1,552 |  |  | 18 |  |  | 1,620 |  |  | 1,638 |
Total investments | $ | 2,373 |  |  | $ | 17,314 |  |  | $ | 19,687 |  |  | $ | 2,522 |  |  | $ | 15,732 |  |  | $ | 18,254 |
Debt securities available for sale | Debt securities available for sale at December 31, 2019 and 2018 were as follows:
In millions | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2019 |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |
U.S. government securities | $ | 1,791 |  |  | $ | 62 |  |  | $ | (1 | ) |  | $ | 1,852 |
States, municipalities and political subdivisions | 2,202 |  |  | 108 |  |  | (1 | ) |  | 2,309 |
U.S. corporate securities | 7,167 |  |  | 573 |  |  | (3 | ) |  | 7,737 |
Foreign securities | 2,149 |  |  | 200 |  |  | (1 | ) |  | 2,348 |
Residential mortgage-backed securities | 508 |  |  | 25 |  |  | — |  |  | 533 |
Commercial mortgage-backed securities | 654 |  |  | 46 |  |  | — |  |  | 700 |
Other asset-backed securities | 1,397 |  |  | 13 |  |  | (5 | ) |  | 1,405 |
Redeemable preferred securities | 30 |  |  | 8 |  |  | — |  |  | 38 |
Total debt securities (1) | $ | 15,898 |  |  | $ | 1,035 |  |  | $ | (11 | ) |  | $ | 16,922 |
December 31, 2018 |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |
U.S. government securities | $ | 1,662 |  |  | $ | 26 |  |  | $ | — |  |  | $ | 1,688 |
States, municipalities and political subdivisions | 2,370 |  |  | 30 |  |  | (1 | ) |  | 2,399 |
U.S. corporate securities | 6,444 |  |  | 61 |  |  | (16 | ) |  | 6,489 |
Foreign securities | 2,355 |  |  | 31 |  |  | (3 | ) |  | 2,383 |
Residential mortgage-backed securities | 567 |  |  | 10 |  |  | — |  |  | 577 |
Commercial mortgage-backed securities | 594 |  |  | 11 |  |  | — |  |  | 605 |
Other asset-backed securities | 1,097 |  |  | 3 |  |  | (15 | ) |  | 1,085 |
Redeemable preferred securities | 30 |  |  | — |  |  | (1 | ) |  | 29 |
Total debt securities (1) | $ | 15,119 |  |  | $ | 172 |  |  | $ | (36 | ) |  | $ | 15,255 |
_____________________________________________
(1) | Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At December 31, 2019, debt securities with a fair value of $965 million, gross unrealized capital gains of $83 million and no gross unrealized capital losses, and at December 31, 2018, debt securities with a fair value of $916 million, gross unrealized capital gains of $12 million and gross unrealized capital losses of $2 million were included in total debt securities, but support experience-rated products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income.
Fair value of debt securities by contractual maturity | The amortized cost and fair value of debt securities at December 31, 2019 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.
In millions | Amortized Cost |  | Fair Value
Due to mature: |  |  |
Less than one year | $ | 1,028 |  |  | $ | 1,034 |
One year through five years | 5,507 |  |  | 5,702 |
After five years through ten years | 3,081 |  |  | 3,296 |
Greater than ten years | 3,723 |  |  | 4,252 |
Residential mortgage-backed securities | 508 |  |  | 533 |
Commercial mortgage-backed securities | 654 |  |  | 700 |
Other asset-backed securities | 1,397 |  |  | 1,405 |
Total | $ | 15,898 |  |  | $ | 16,922 |
Debt securities in an unrealized capital loss position | The maturity dates for debt securities in an unrealized capital loss position at December 31, 2019 were as follows:
| Supporting experience-rated products |  | Supporting remaining products |  | Total
In millions | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Due to mature: |  |  |  |  |  |  |  |  |  |  |
Less than one year | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | — |  |  | $ | 12 |  |  | $ | — |
One year through five years | 3 |  |  | — |  |  | 285 |  |  | 1 |  |  | 288 |  |  | 1 |
After five years through ten years | 9 |  |  | — |  |  | 151 |  |  | 2 |  |  | 160 |  |  | 2 |
Greater than ten years | 11 |  |  | — |  |  | 197 |  |  | 3 |  |  | 208 |  |  | 3 |
Residential mortgage-backed securities | — |  |  | — |  |  | 16 |  |  | — |  |  | 16 |  |  | — |
Commercial mortgage-backed securities | — |  |  | — |  |  | 49 |  |  | — |  |  | 49 |  |  | — |
Other asset-backed securities | 10 |  |  | — |  |  | 426 |  |  | 5 |  |  | 436 |  |  | 5 |
Total | $ | 33 |  |  | $ | — |  |  | $ | 1,136 |  |  | $ | 11 |  |  | $ | 1,169 |  |  | $ | 11 |
Summarized below are the debt securities the Company held at December 31, 2019 and 2018 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:
| Less than 12 months |  | Greater than 12 months |  | Total
In millions, except number of securities | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses |  | Number of Securities |  | Fair Value |  | Unrealized Losses
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 52 |  |  | $ | 168 |  |  | $ | 1 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 52 |  |  | $ | 168 |  |  | $ | 1 |
States, municipalities and political subdivisions | 66 |  |  | 115 |  |  | 1 |  |  | 2 |  |  | 5 |  |  | — |  |  | 68 |  |  | 120 |  |  | 1 |
U.S. corporate securities | 181 |  |  | 305 |  |  | 2 |  |  | 2 |  |  | — |  |  | 1 |  |  | 183 |  |  | 305 |  |  | 3 |
Foreign securities | 39 |  |  | 75 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 39 |  |  | 75 |  |  | 1 |
Residential mortgage-backed securities | 30 |  |  | 16 |  |  | — |  |  | 9 |  |  | — |  |  | — |  |  | 39 |  |  | 16 |  |  | — |
Commercial mortgage-backed securities | 16 |  |  | 49 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | 49 |  |  | — |
Other asset-backed securities | 138 |  |  | 254 |  |  | 1 |  |  | 187 |  |  | 182 |  |  | 4 |  |  | 325 |  |  | 436 |  |  | 5 |
Total debt securities | 522 |  |  | $ | 982 |  |  | $ | 6 |  |  | 200 |  |  | $ | 187 |  |  | $ | 5 |  |  | 722 |  |  | $ | 1,169 |  |  | $ | 11 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities | 8 |  |  | $ | 26 |  |  | $ | — |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 8 |  |  | $ | 26 |  |  | $ | — |
States, municipalities and political subdivisions | 54 |  |  | 86 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 54 |  |  | 86 |  |  | 1 |
U.S. corporate securities | 1,399 |  |  | 1,431 |  |  | 16 |  |  | — |  |  | — |  |  | — |  |  | 1,399 |  |  | 1,431 |  |  | 16 |
Foreign securities | 243 |  |  | 314 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 243 |  |  | 314 |  |  | 3 |
Residential mortgage-backed securities | 45 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 45 |  |  | 1 |  |  | — |
Other asset-backed securities | 516 |  |  | 528 |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 516 |  |  | 528 |  |  | 15 |
Redeemable preferred securities | 14 |  |  | 23 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | 23 |  |  | 1 |
Total debt securities | 2,279 |  |  | $ | 2,409 |  |  | $ | 36 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 2,279 |  |  | $ | 2,409 |  |  | $ | 36 |
Activity in mortgage loan portfolio | The Company’s mortgage loans are collateralized by commercial real estate. During 2019 and subsequent to the Aetna Acquisition Date in 2018, the Company had the following activity in its mortgage loan portfolio:
In millions | 2019 |  | 2018
New mortgage loans | $ | 131 |  |  | $ | 4 |
Mortgage loans fully-repaid | 234 |  |  | 27 |
Mortgage loans foreclosed | — |  |  | — |
At December 31, 2019 scheduled mortgage loan principal repayments were as follows:
In millions |
2020 | $ | 122 |
2021 | 235 |
2022 | 200 |
2023 | 81 |
2024 | 193 |
Thereafter | 382 |
Total | $ | 1,213 |
Mortgage loan internal credit rating | Based upon the Company’s assessments at December 31, 2019 and 2018, the Company’s mortgage loans were given the following credit quality indicators:
In millions, except credit ratings indicator | 2019 |  | 2018
1 | $ | 58 |  |  | $ | 42 |
2 to 4 | 1,143 |  |  | 1,301 |
5 and 6 | 12 |  |  | 18 |
7 | — |  |  | — |
Total | $ | 1,213 |  |  | $ | 1,361 |
Net investment income | Sources of net investment income for the years ended December 31, 2019 and 2018 were as follows:
In millions | 2019 |  | 2018
Debt securities | $ | 589 |  |  | $ | 61 |
Mortgage loans | 71 |  |  | 6 |
Other investments | 194 |  |  | 593 |
Gross investment income | 854 |  |  | 660 |
Investment expenses | (42 | ) |  | (3 | )
Net investment income (excluding net realized capital gains or losses) | 812 |  |  | 657 |
Net realized capital gains (1) | 199 |  |  | 3 |
Net investment income (2) | $ | 1,011 |  |  | $ | 660 |
_____________________________________________
(1) | Net realized capital gains are net of other-than-temporary impairment (“OTTI”) losses on debt securities recognized in the consolidated statements of operations of $24 million for the year ended December 31, 2019. There were no material OTTI losses on debt securities for the year ended December 31, 2018.
(2) Net investment income includes $44 million and $4 million for 2019 and 2018, respectively, related to investments supporting experience-rated products.
Proceeds and related gross realized capital gains and losses from the sale of debt securities | Excluding amounts related to experience-rated products, proceeds from the sale of available for sale debt securities and the related gross realized capital gains and losses in the year ended December 31, 2019 and subsequent to the Aetna Acquisition Date in 2018 were as follows:
In millions | 2019 |  | 2018
Proceeds from sales | $ | 4,773 |  |  | $ | 389 |
Gross realized capital gains | 146 |  |  | 2 |
Gross realized capital losses | (17 | ) |  | (2 | )

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