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Investments (Tables)
 3 Months Ended
Mar. 31, 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
 
March 31, 2018
 
 

 
 

 
 

 
 

U.S. government and agencies
 
$
3,373

 
$
50

 
$
(17
)
 
$
3,406

Municipal
 
8,404

 
257

 
(92
)
 
8,569

Corporate
 
41,699

 
763

 
(611
)
 
41,851

Foreign government
 
968

 
21

 
(10
)
 
979

Asset-backed securities (“ABS”)
 
1,196

 
11

 
(10
)
 
1,197

Residential mortgage-backed securities (“RMBS”)
 
453

 
100

 
(3
)
 
550

Commercial mortgage-backed securities (“CMBS”)
 
95

 
6

 
(2
)
 
99

Redeemable preferred stock
 
21

 
2

 
—

 
23

Total fixed income securities
 
$
56,209

 
$
1,210

 
$
(745
)
 
$
56,674

 
 
 
 
 
 
 
 
 
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 March 31, 2018
 
Amortized cost
 
Fair value
Due in one year or less
 
$
4,629

 
$
4,627

Due after one year through five years
 
28,201

 
28,199

Due after five years through ten years
 
16,363

 
16,220

Due after ten years
 
5,272

 
5,782

 
 
54,465

 
54,828

ABS, RMBS and CMBS
 
1,744

 
1,846

Total
 
$
56,209

 
$
56,674
Schedule of net investment income
Net investment income
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Fixed income securities
 
$
508

 
$
518

Equity securities
 
34

 
44

Mortgage loans
 
51

 
55

Limited partnership interests (1)(2)
 
180

 
120

Short-term investments
 
12

 
6

Other
 
66

 
56

Investment income, before expense
 
851

 
799

Investment expense
 
(65
)
 
(51
)
Net investment income 
 
$
786

 
$
748


(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 $103 million for EMA limited partnership interests and $77 million for limited partnership interests carried at fair value for the three months ended March 31, 2018.
Schedule of realized capital gains and losses by asset type
Realized capital gains and losses by asset type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Fixed income securities
 
$
(43
)
 
$
5

Equity securities
 
(93
)
 
106

Limited partnership interests
 
10

 
40

Derivatives
 
(8
)
 
(15
)
Other
 
—

 
(2
)
Realized capital gains and losses
 
$
(134
)
 
$
134
Schedule of realized capital gains and losses by transaction type
Realized capital gains and losses by transaction type
 
 
 
 
($ in millions)
 
Three months ended March 31,
 
2018
 
2017
Impairment write-downs (1)
 
$
(1
)
 
$
(43
)
Change in intent write-downs (1)
 
—

 
(16
)
Net OTTI losses recognized in earnings
 
(1
)
 
(59
)
Sales (1)
 
(42
)
 
208

Valuation of equity investments (1)
 
(83
)
 
—

Valuation and settlements of derivative instruments
 
(8
)
 
(15
)
Realized capital gains and losses
 
$
(134
)
 
$
134


(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 March 31, 2018
 
 
($ in millions)
 
Three months ended
March 31, 2018
Equity securities
 
$
(49
)
Limited partnership interests carried at fair value 
 
78

Total valuation changes
 
$
29
Schedule of other-than-temporary impairment losses by asset type
OTTI losses by asset type
($ in millions)
 
Three months ended March 31, 2018
 
Three months ended March 31, 2017
 
Gross
 
Included
 in OCI
 
Net
 
Gross
 
Included
in OCI
 
Net
Fixed income securities:
 
 

 
 

 
 

 
 

 
 

 
 

Corporate
 
$
—

 
$
—

 
$
—

 
$
(9
)
 
$
3

 
$
(6
)
RMBS
 
—

 
—

 
—

 
(1
)
 
(3
)
 
(4
)
CMBS
 
—

 
(1
)
 
(1
)
 
(6
)
 
3

 
(3
)
Total fixed income securities
 
—

 
(1
)
 
(1
)
 
(16
)
 
3

 
(13
)
Equity securities (1)
 
—

 
—

 
—

 
(36
)
 
—

 
(36
)
Limited partnership interests (1)
(2)
 
—

 
—

 
—

 
(7
)
 
—

 
(7
)
Other
 
—

 
—

 
—

 
(3
)
 
—

 
(3
)
OTTI losses
 
$
—

 
$
(1
)
 
$
(1
)
 
$
(62
)
 
$
3

 
$
(59
)

(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
The total amount of OTTI losses included in AOCI at the time of impairment for fixed income securities, which were not included in earnings, are presented in the following table. The amounts exclude $202 million and $208 million as of March 31, 2018 and December 31, 2017, respectively, of net unrealized gains related to changes in valuation of the fixed income securities subsequent to the impairment measurement date.
OTTI losses included in AOCI at the time of impairment for fixed income securities
($ in millions)
 
March 31, 2018
 
December 31, 2017
Municipal
 
$
(5
)
 
$
(5
)
ABS
 
(12
)
 
(15
)
RMBS
 
(74
)
 
(77
)
CMBS
 
(4
)
 
(4
)
Total
 
$
(95
)
 
$
(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
($ in millions)
 
March 31,
 
2018
 
2017
Beginning balance
 
$
(226
)
 
$
(318
)
Additional credit loss for securities previously other-than-temporarily impaired
 
(1
)
 
(8
)
Additional credit loss for securities not previously other-than-temporarily impaired
 
—

 
(5
)
Reduction in credit loss for securities disposed or collected
 
15

 
37

Ending balance
 
$
(212
)
 
$
(294
)
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)
March 31, 2018
 
 
Gains
 
Losses
 
Fixed income securities
 
$
56,674

 
$
1,210

 
$
(745
)
 
$
465

Short-term investments
 
3,424

 
—

 
—

 
—

Derivative instruments (1)
 
2

 
2

 
(3
)
 
(1
)
EMA limited partnerships (2)
 
 

 
 

 
 

 
1

Unrealized net capital gains and losses, pre-tax
 
 

 
 

 
 

 
465

Amounts recognized for:
 
 

 
 

 
 

 
 

Insurance reserves (3)
 
 

 
 

 
 

 
(119
)
DAC and DSI (4)
 
 

 
 

 
 

 
(109
)
Amounts recognized
 
 

 
 

 
 

 
(228
)
Deferred income taxes
 
 

 
 

 
 

 
(50
)
Unrealized net capital gains and losses, after-tax
 
 

 
 

 
 

 
$
187

(1) 
Included in the fair value of derivative instruments is $2 million classified as liabilities.
(2) 
Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ other comprehensive income. Fair value and gross unrealized gains and losses are not applicable.
(3) 
The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at current lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuities).
(4) 
The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Unrealized net capital gains and losses included in AOCI
($ 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)
 
Three months ended March 31, 2018
Fixed income securities
 
$
(1,002
)
Equity securities (1)
 
—

Total
 
(1,002
)
Amounts recognized for:
 
 

Insurance reserves
 
196

DAC and DSI
 
87

Amounts recognized
 
283

Deferred income taxes
 
154

Decrease in unrealized net capital gains and losses, after-tax
 
$
(565
)

(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
 
March 31, 2018
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Fixed income securities
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. government and agencies
 
57

 
$
1,514

 
$
(16
)
 
13

 
$
74

 
$
(1
)
 
$
(17
)
Municipal
 
2,535

 
4,626

 
(74
)
 
160

 
323

 
(18
)
 
(92
)
Corporate
 
1,656

 
22,720

 
(458
)
 
199

 
3,006

 
(153
)
 
(611
)
Foreign government
 
43

 
531

 
(9
)
 
4

 
39

 
(1
)
 
(10
)
ABS
 
80

 
541

 
(6
)
 
7

 
11

 
(4
)
 
(10
)
RMBS
 
139

 
36

 
(1
)
 
181

 
43

 
(2
)
 
(3
)
CMBS
 
—

 
—

 
—

 
6

 
24

 
(2
)
 
(2
)
Total fixed income securities
 
4,510

 
29,968

 
(564
)
 
570

 
3,520

 
(181
)
 
(745
)
Investment grade fixed income securities
 
4,161

 
$
27,020

 
$
(470
)
 
516

 
$
3,284

 
$
(153
)
 
$
(623
)
Below investment grade fixed income securities
 
349

 
2,948

 
(94
)
 
54

 
236

 
(28
)
 
(122
)
Total fixed income securities
 
4,510

 
$
29,968

 
$
(564
)
 
570

 
$
3,520

 
$
(181
)
 
$
(745
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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)
 
March 31, 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
 
$
27

 
$
—

 
$
27

 
$
3

 
$
—

 
$
3

1.0 - 1.25
 
355

 
—

 
355

 
345

 
—

 
345

1.26 - 1.50
 
1,165

 
30

 
1,195

 
1,141

 
30

 
1,171

Above 1.50
 
2,998

 
100

 
3,098

 
2,949

 
62

 
3,011

Total non-impaired mortgage loans
 
$
4,545

 
$
130

 
$
4,675

 
$
4,438

 
$
92

 
$
4,530
Net carrying value of impaired mortgage loans
Net carrying value of impaired mortgage loans
($ in millions)
 
March 31, 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)
 
March 31, 2018
 
December 31, 2017
Bank loans
 
$
1,681

 
$
1,702

Policy loans
 
900

 
905

Real estate
 
763

 
632

Agent loans
 
562

 
538

Other
 
186

 
195

Total
 
$
4,092

 
$
3,972