Net Investment Income (Loss)



	For the years ended December 31,
(Before-tax)	2016			2015			2014
Fixed maturities [1]	$	2,379		$	2,409		$	2,420
Equity securities	31			25			38
Mortgage loans	252			267			265
Policy loans	83			82			80
Limited partnerships and other alternative investments	214			227			294
Other investments [2]	115			138			179
Investment expenses	(113		)	(118		)	(122		)
Total net investment income	$	2,961		$	3,030		$	3,154


[1]	Includes net investment income on short-term investments.


[2]	Includes income from derivatives that hedge fixed maturities and qualify for hedge accounting.

Net Realized Capital Gains (Losses)



	For the years ended December 31,
(Before-tax)	2016			2015			2014
Gross gains on sales	$	441		$	460		$	527
Gross losses on sales	(253		)	(405		)	(250		)
Net OTTI losses recognized in earnings	(56		)	(102		)	(59		)
Valuation allowances on mortgage loans	—			(5		)	(4		)
Results of variable annuity hedge program
GMWB derivatives, net	(38		)	(87		)	5
Macro hedge program	(163		)	(46		)	(11		)
Total results of variable annuity hedge program	(201		)	(133		)	(6		)
Transactional foreign currency revaluation	(148		)	(4		)	124
Non-qualifying foreign currency derivatives	140			(3		)	(142		)
Other, net [1]	(191		)	36			(174		)
Net realized capital gains (losses)	$	(268	)	$	(156	)	$	16

[1]

Includes non-qualifying derivatives, excluding variable annuity hedge program and foreign currency derivatives, of $(3), $32, and $(205), respectively for 2016, 2015 and 2014. Also included for the year ended December 31, 2016, is a loss related to the write-down of investments in solar energy partnerships, which generated tax benefits, and a loss related to the sale of the Company's U.K. property and casualty run-off subsidiaries.

Net realized capital gains and losses from investment sales are reported as a component of revenues and are determined on a specific identification basis. Before tax, net gains and losses on sales and impairments previously reported as unrealized gains or losses in AOCI were $132, $(32), and $217 for the years ended December 31, 2016, 2015, and 2014, respectively.

Sales of AFS Securities



	For the years ended December 31,
	2016			2015			2014
Fixed maturities, AFS
Sale proceeds	$	17,393		$	20,615		$	22,923
Gross gains	409			372			456
Gross losses	(223		)	(317		)	(182		)
Equity securities, AFS
Sale proceeds	$	680		$	1,319		$	354
Gross gains	30			61			22
Gross losses	(28		)	(46		)	(20		)

Sales of AFS securities in 2016 were primarily a result of duration and liquidity management, as well as tactical changes to the portfolio as a result of changing market conditions.

Recognition and Presentation of Other-Than-Temporary Impairments

The Company will record an other-than-temporary impairment (“OTTI”) for fixed maturities and certain equity securities with debt-like characteristics (collectively “debt securities”) if the Company intends to sell or it is more likely than not that the Company will be required to sell the security before a recovery in value. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and amortized cost basis of the security.

The Company will also record an OTTI for those debt securities for which the Company does not expect to recover the entire amortized cost basis. For these securities, the excess of the amortized cost basis over its fair value is separated into the portion representing a credit OTTI, which is recorded in net realized capital losses, and the remaining non-credit amount, which is recorded in OCI. The credit OTTI amount is the excess of its amortized cost basis over the Company’s best estimate of discounted expected future cash flows. The non-credit amount is the excess of the best estimate of the discounted expected future cash flows over the fair value. The Company’s best estimate of discounted expected future cash flows becomes the new cost basis and accretes prospectively into net investment income over the estimated remaining life of the security.

The Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company considers, but is not limited to (a) changes in the financial condition of the issuer and the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, security-specific developments, industry earnings multiples and the issuer’s ability to restructure and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios, average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.

The Company will also record an OTTI for equity securities where the decline in the fair value is deemed to be other-than-temporary. A corresponding charge is recorded in net realized capital losses equal to the difference between the fair value and cost basis of the security. The previous cost basis less the impairment becomes the new cost basis. The Company’s evaluation and assumptions used to determine an equity OTTI include, but is not limited to, (a) the length of time and extent to which the fair value has been less than the cost of the security, (b) changes in the financial condition, credit rating and near-term prospects of the issuer, (c) whether the issuer is current on preferred stock dividends and (d) the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery. For the remaining equity securities which are determined to be temporarily impaired, the Company asserts its intent and ability to retain those equity securities until the price recovers.

Impairments in Earnings by Type



	For the years ended December 31,
	2016		2015		2014
Intent-to-sell impairments	$	6	$	54	$	17
Credit impairments	43		29		37
Impairments on equity securities	7		16		2
Other impairments	—		3		3
Total impairments	$	56	$	102	$	59

Cumulative Credit Impairments



	For the years ended December 31,
(Before-tax)	2016			2015			2014
Balance as of beginning of period	$	(324	)	$	(424	)	$	(552	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	(25		)	(15		)	(15		)
Securities previously impaired	(18		)	(14		)	(22		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	59			68			138
Securities the Company made the decision to sell or more likely than not will be required to sell	—			2			—
Securities due to an increase in expected cash flows	28			59			27
Balance as of end of period	$	(280	)	$	(324	)	$	(424	)


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

Available-for-Sale Securities

AFS Securities by Type



	December 31, 2016												December 31, 2015
	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	$	2,396	$	17	$	(31	)	$	2,382	$	—		$	2,520	$	24	$	(45	)	$	2,499	$	—
CDOs [2]	1,853		67		(4		)	1,916		—			2,989		75		(23		)	3,038		—
CMBS	4,907		97		(68		)	4,936		(6		)	4,668		105		(56		)	4,717		(8		)
Corporate	24,380		1,510		(224		)	25,666		—			25,876		1,342		(416		)	26,802		(3		)
Foreign govt./govt. agencies	1,164		33		(26		)	1,171		—			1,321		34		(47		)	1,308		—
Municipal	10,825		732		(71		)	11,486		—			11,124		1,008		(11		)	12,121		—
RMBS	4,738		66		(37		)	4,767		—			3,986		82		(22		)	4,046		—
U.S. Treasuries	3,542		182		(45		)	3,679		—			4,481		222		(38		)	4,665		—
Total fixed maturities, AFS	53,805		2,704		(506		)	56,003		(6		)	56,965		2,892		(658		)	59,196		(11		)
Equity securities, AFS [3]	1,020		96		(19		)	1,097		—			842		38		(41		)	839		—
Total AFS securities	$	54,825	$	2,800	$	(525	)	$	57,100	$	(6	)	$	57,807	$	2,930	$	(699	)	$	60,035	$	(11	)


[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 as of December 31, 2016 and 2015.


[2]	Gross unrealized gains (losses) exclude the fair value of bifurcated embedded derivatives within certain securities. Subsequent changes in value are recorded in net realized capital gains (losses).


[3]	Excludes equity securities, FVO, with a cost and fair value of $293 and $282 as of December 31, 2015. The Company held no equity securities, FVO as of December 31, 2016.

Fixed maturities, AFS, by Contractual Maturity Year



	December 31, 2016				December 31, 2015
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,896	$	1,912	$	2,373	$	2,405
Over one year through five years	9,015		9,289		10,929		11,200
Over five years through ten years	9,038		9,245		9,322		9,497
Over ten years	19,962		21,556		20,178		21,794
Subtotal	39,911		42,002		42,802		44,896
Mortgage-backed and asset-backed securities	13,894		14,001		14,163		14,300
Total fixed maturities, AFS	$	53,805	$	56,003	$	56,965	$	59,196

Estimated maturities may differ from contractual maturities due to security call or prepayment provisions. Due to the potential for variability in payment speeds (i.e. prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity, other than the U.S. government and certain U.S. government securities as of December 31, 2016 or December 31, 2015. As of December 31, 2016, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the State of California, Morgan Stanley, and the Commonwealth of Massachusetts which each comprised less than 1% of total invested assets. As of December 31, 2015, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were Morgan Stanley, the State of California, and JP Morgan Chase &Co. which each comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2016, were municipal securities, utilities, and financial services which comprised approximately 16%, 8% and 8%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2015 were municipal investments, financial services, and CMBS which comprised approximately 17%, 9% and 6%, respectively, of total invested assets.

Unrealized Losses on AFS Securities

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2016



	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	$	582	$	579	$	(3	)	$	368	$	340	$	(28	)	$	950	$	919	$	(31	)
CDOs [1]	641		640		(1		)	370		367		(3		)	1,011		1,007		(4		)
CMBS	2,076		2,027		(49		)	293		274		(19		)	2,369		2,301		(68		)
Corporate	5,418		5,248		(170		)	835		781		(54		)	6,253		6,029		(224		)
Foreign govt./govt. agencies	573		550		(23		)	27		24		(3		)	600		574		(26		)
Municipal	1,567		1,498		(69		)	43		41		(2		)	1,610		1,539		(71		)
RMBS	1,655		1,624		(31		)	591		585		(6		)	2,246		2,209		(37		)
U.S. Treasuries	1,432		1,387		(45		)	—		—		—			1,432		1,387		(45		)
Total fixed maturities, AFS	13,944		13,553		(391		)	2,527		2,412		(115		)	16,471		15,965		(506		)
Equity securities, AFS [2]	330		315		(15		)	38		34		(4		)	368		349		(19		)
Total securities in an unrealized loss position	$	14,274	$	13,868	$	(406	)	$	2,565	$	2,446	$	(119	)	$	16,839	$	16,314	$	(525	)

Unrealized Loss Aging for AFS Securities by Type and Length of Time as of December 31, 2015



	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	$	1,619	$	1,609	$	(10	)	$	357	$	322	$	(35	)	$	1,976	$	1,931	$	(45	)
CDOs [1]	1,164		1,154		(10		)	1,243		1,227		(13		)	2,407		2,381		(23		)
CMBS	1,726		1,681		(45		)	189		178		(11		)	1,915		1,859		(56		)
Corporate	9,206		8,866		(340		)	656		580		(76		)	9,862		9,446		(416		)
Foreign govt./govt. agencies	679		646		(33		)	124		110		(14		)	803		756		(47		)
Municipal	440		430		(10		)	18		17		(1		)	458		447		(11		)
RMBS	1,349		1,340		(9		)	415		402		(13		)	1,764		1,742		(22		)
U.S. Treasuries	2,432		2,394		(38		)	8		8		—			2,440		2,402		(38		)
Total fixed maturities, AFS	18,615		18,120		(495		)	3,010		2,844		(163		)	21,625		20,964		(658		)
Equity securities, AFS [2]	480		449		(31		)	62		52		(10		)	542		501		(41		)
Total securities in an unrealized loss position	$	19,095	$	18,569	$	(526	)	$	3,072	$	2,896	$	(173	)	$	22,167	$	21,465	$	(699	)


[1]	Unrealized losses exclude the change in fair value of bifurcated embedded derivatives within certain securities, for which changes in fair value are recorded in net realized capital gains (losses).


[2]	As of December 31, 2016 and 2015, excludes equity securities, FVO which are included in equity securities, AFS on the Consolidated Balance Sheets.

As of December 31, 2016, AFS securities in an unrealized loss position consisted of 4,187 securities, primarily in the corporate sector, which were depressed primarily due to an increase in interest rates and/or widening of credit spreads since the securities were purchased. As of December 31, 2016, 95% of these securities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during 2016 was primarily attributable to tighter credit spreads, partially offset by higher interest rates.

Most of the securities depressed for twelve months or more relate to corporate securities concentrated in the financial services and energy sectors, student loan ABS, and structured securities with exposure to commercial real estate. Corporate financial services securities and student loan ABS were primarily depressed because the securities have floating-rate coupons and have long-dated maturities, and current credit spreads are wider than when these securities were purchased. Corporate securities within the energy sector are primarily depressed due to a lower level of oil prices. For certain commercial real estate securities, current market spreads are wider than spreads at the securities' respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion.

Mortgage Loans

Mortgage Loan Valuation Allowances

Commercial mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement. The Company reviews mortgage loans on a quarterly basis to identify potential credit losses. Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates, and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (“DSCR”). In addition, the Company considers historical, current and projected delinquency rates and property values. Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates.

For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying amount and estimated value. The mortgage loan's estimated value is most frequently the Company's share of the fair value of the collateral but may also be the Company’s share of either (a) the present value of the expected future cash flows discounted at the loan’s effective interest rate or (b) the loan’s observable market price. A valuation allowance may be recorded for an individual loan or for a group of loans that have an LTV ratio of 90% or greater, a low DSCR or have other lower credit quality characteristics. Changes in valuation allowances are recorded in net realized capital gains and losses. Interest income on impaired loans is accrued to the extent it is deemed collectible and the borrowers continue to make payments under the original or restructured loan terms. The Company stops accruing interest income on loans when it is probable that the Company will not receive interest and principal payments according to the contractual terms of the loan agreement. The company resumes accruing interest income when it determines that sufficient collateral exists to satisfy the full amount of the loan principal and interest payments and when it is probable cash will be received in the foreseeable future. Interest income on defaulted loans is recognized when received.

As of December 31, 2016, commercial mortgage loans had an amortized cost of $5.7 billion, with a valuation allowance of $19 and a carrying value of $5.7 billion. As of December 31, 2015, commercial mortgage loans had an amortized cost of $5.6 billion, with a valuation allowance of $23 and a carrying value of $5.6 billion. Amortized cost represents carrying value prior to valuation allowances, if any.

As of December 31, 2016 and 2015, the carrying value of mortgage loans that had a valuation allowance was $31 and $82, respectively. There were no mortgage loans held-for-sale as of December 31, 2016 or December 31, 2015. As of December 31, 2016, the Company had an immaterial amount of mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.

The following table presents the activity within the Company’s valuation allowance for mortgage loans. These loans have been evaluated both individually and collectively for impairment. Loans evaluated collectively for impairment are immaterial.

Valuation Allowance Activity



	For the years ended December 31,
	2016			2015			2014
Balance as of January 1	$	(23	)	$	(18	)	$	(67	)
(Additions)/Reversals	—			(7		)	(4		)
Deductions	4			2			53
Balance as of December 31	$	(19	)	$	(23	)	$	(18	)

The weighted-average LTV ratio of the Company’s commercial mortgage loan portfolio was 52% as of December 31, 2016, while the weighted-average LTV ratio at origination of these loans was 62%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan. The loan collateral values are updated no less than annually through reviews of the underlying properties. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments. The weighted average DSCR of the Company’s commercial mortgage loan portfolio was 2.70x as of December 31, 2016. As of December 31, 2016, the Company held one delinquent commercial mortgage loan past due by 90 days or more. The loan had a total carrying value and valuation allowance of $15 and $16, respectively, and was not accruing income. As of December 31, 2015, the Company held two delinquent commercial mortgage loans past due by 90 days or more. The loans had a total carrying value and valuation allowance of $17 and $20, respectively, and neither loan was accruing income.

Commercial Mortgage Loans Credit Quality



	December 31, 2016			December 31, 2015
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	20	0.59x	$	24	0.81x
65% - 80%	568		2.17x	623		1.82x
Less than 65%	5,109		2.78x	4,977		2.75x
Total commercial mortgage loans	$	5,697	2.70x	$	5,624	2.63x

Mortgage Loans by Region



	December 31, 2016				December 31, 2015
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	293	5.1	%	$	289	5.1	%
East South Central	14		0.2	%	14		0.2	%
Middle Atlantic	534		9.4	%	384		6.8	%
Mountain	61		1.1	%	32		0.6	%
New England	345		6.1	%	446		7.9	%
Pacific	1,609		28.3	%	1,669		29.7	%
South Atlantic	1,198		21.0	%	1,174		20.9	%
West North Central	40		0.7	%	29		0.5	%
West South Central	338		5.9	%	318		5.7	%
Other [1]	1,265		22.2	%	1,269		22.6	%
Total mortgage loans	$	5,697	100.0	%	$	5,624	100.0	%


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

Mortgage Loans by Property Type



	December 31, 2016				December 31, 2015
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Agricultural	$	16	0.3	%	$	26	0.5	%
Industrial	1,468		25.7	%	1,422		25.3	%
Lodging	25		0.4	%	26		0.5	%
Multifamily	1,365		24.0	%	1,345		23.9	%
Office	1,361		23.9	%	1,547		27.5	%
Retail	1,036		18.2	%	1,109		19.7	%
Other	426		7.5	%	149		2.6	%
Total mortgage loans	$	5,697	100.0	%	$	5,624	100.0	%

Mortgage Servicing

The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fees income over the period that services are performed. As of December 31, 2016, the Company serviced commercial mortgage loans with a total outstanding principal of $901, of which $251 was serviced on behalf of third parties and $650 was retained and reported on the Company’s Consolidated Balance Sheets, including $124 in separate account assets. As of December 31, 2015, under this program the Company serviced commercial mortgage loans with a total outstanding principal balance of $359, of which $129 was serviced on behalf of third parties and $230 was retained and reported as assets on the Company's Consolidated Balance Sheets, including $54 in separate account assets. Servicing rights are carried at the lower of cost or fair value and were zero as of December 31, 2016 and December 31, 2015 because servicing fees were market-level fees at origination and remain adequate to compensate the Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities but also as an investment manager and as a means of accessing capital through a contingent capital facility ("the facility").

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Consolidated Financial Statements.

Consolidated VIEs

The following table presents the carrying value of assets and liabilities, and the maximum exposure to loss relating to the VIEs for which the Company is the primary beneficiary. Creditors have no recourse against the Company in the event of default by these VIEs nor does the Company have any implied or unfunded commitments to these VIEs. The Company’s financial or other support provided to these VIEs is limited to its collateral or investment management services and original investment.

Consolidated VIEs



	December 31, 2016						December 31, 2015
	Total Assets		Total Liabilities [1]		Maximum Exposure to Loss [2]		Total Assets		Total Liabilities [1]		Maximum Exposure to Loss [2]
CDO [3]	$	5	$	5	$	—	$	5	$	5	$	—
Investment funds [4]	—		—		—		159		7		151
Limited partnerships and other alternative investments [5]	—		—		—		2		—		2
Total	$	5	$	5	$	—	$	166	$	12	$	153


[1]	Included in other liabilities on the Company’s Consolidated Balance Sheets.


[2]	The maximum exposure to loss represents the maximum loss amount that the Company could recognize as a reduction in net investment income or as a realized capital loss and is the cost basis of the Company’s investment.


[3]	Total assets included in cash on the Company’s Consolidated Balance Sheets.


[4]	Total assets included in fixed maturities, FVO, short-term investments, equity, AFS, and cash on the Company's Consolidated Balance Sheets.


[5]	Total assets included in limited partnerships and other alternative investments on the Company's Consolidated Balance Sheets.

Effective January 1, 2016, the Company adopted new consolidation guidance and determined that three investment funds, that were previously identified as consolidated VIEs and for which the Company has management and control of the investments, are voting interest entities under the new consolidation guidance. The Company still owns a majority interest in one investment fund that is still consolidated on the Company's Consolidated Financial Statements; however, as of December 31, 2016, this fund is not included as a VIE in the table above. The remaining two investment funds previously identified as consolidated VIEs were disposed of during 2016.

CDO represents a structured investment vehicle for which the Company has a controlling financial interest as it provides collateral management services, earns a fee for those services and also holds investments in the security issued by this vehicle.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. Upon the adoption of the new consolidation guidance, discussed above, these investments are now considered VIEs. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of December 31, 2016 and December 31, 2015 is limited to the total carrying value of $1.7 billion and $1.5 billion, respectively, which are included in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets. As of December 31, 2016 and December 31, 2015, the Company has outstanding commitments totaling $1.2 billion and $692 million, respectively, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management.

In addition, the Company also makes passive investments in structured securities issued by VIEs for which the Company is not the manager and, therefore does not consolidate. These investments are included in ABS, CDOs, CMBS and RMBS in the Available-for-Sale Securities table and fixed maturities, FVO, in the Company’s Consolidated Balance Sheets. The Company has not provided financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits and the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

The Company also holds a significant variable interest in a VIE for which it is not the primary beneficiary. This VIE represents a contingent capital facility ("facility") that has been held by the Company since February 2007 and for which the Company has no implied or unfunded commitments. Assets and liabilities recorded for the contingent capital facility were $1 and $3, respectively, as of December 31, 2016, and $7 and $8, respectively, as of December 31, 2015. Additionally, the Company has a maximum exposure to loss of $3 and $3, respectively, as of December 31, 2016 and 2015, which represents the issuance costs that were incurred to establish the facility. The Company does not have a controlling financial interest as it does not manage the assets of the facility nor does it have the obligation to absorb losses or the right to receive benefits that could potentially be significant to the facility, as the asset manager has significant variable interest in the vehicle. The Company’s financial or other support provided to the facility is limited to providing ongoing support to cover the facility’s operating expenses. As such, the Company does not consolidate its variable interest in the facility. For further information on the facility, see Note 13 - Debt of Notes to Consolidated Financial Statements.

Securities Lending, Repurchase Agreements and Other Collateral Transactions

The Company enters into securities financing transactions as a way to earn income on securities loaned (securities lending) or on securities sold and repurchased (repurchase agreements).

Under a securities lending program, the Company lends certain fixed maturities within the corporate, foreign government/government agencies, and municipal sectors as well as equity securities to qualifying third-party borrowers in return for collateral in the form of cash or securities. For domestic and non-domestic loaned securities, respectively, borrowers provide collateral of 102% and 105% of the fair value of the securities lent at the time of the loan. Borrowers will return the securities to the Company for cash or securities collateral at maturity dates generally of 90 days or less. Security collateral on deposit from counterparties in connection with securities lending transactions may not be sold or re-pledged, except in the event of default by the counterparty, and is not reflected on the Company’s consolidated balance sheets. Additional collateral is obtained if the fair value of the collateral falls below 100% of the fair value of the loaned securities. The agreements provide the counterparty the right to sell or re-pledge the securities loaned. If cash, rather than securities, is received as collateral, the cash is typically invested in short-term investments or fixed maturities and is reported as an asset on the consolidated balance sheets. Income associated with securities lending transactions is reported as a component of net investment income on the Company’s consolidated statements of operations. As of December 31, 2016, the fair value of securities on loan and the associated liability for cash collateral received was $488 and $461, respectively. The Company also received securities collateral of $39 which was not included in the Company's Consolidated Balance Sheets. As of December 31, 2015, the fair value of securities on loan and the associated liability for cash collateral received was $67 and $68, respectively.

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental spread income. A repurchase agreement is a transaction in which one party (transferor) agrees to sell securities to another party (transferee) in return for cash (or securities), with a simultaneous agreement to repurchase the same securities at a specified price at a later date. A dollar roll is a type of repurchase agreement where a mortgage backed security is sold with an agreement to repurchase substantially the same security at a specified date in the future. These transactions generally have a contractual maturity of ninety days or less.

Under repurchase agreements, the Company transfers collateral of U.S. government and government agency securities and receives cash. For repurchase agreements, the Company obtains cash in an amount equal to at least 95% of the fair value of the securities transferred. The agreements require additional collateral to be transferred when necessary and provide the counterparty the right to sell or re-pledge the securities transferred. The cash received from the repurchase program is typically invested in short-term investments or fixed maturities and is reported as an asset on the Company's consolidated balance sheets. Repurchase agreements include master netting provisions that provide both counterparties the right to offset claims and apply securities held by them with respect to their obligations in the event of a default. Although the Company has the contractual right to offset claims, fixed maturities do not meet the specific conditions for net presentation under U.S. GAAP. The Company accounts for the repurchase agreements as collateralized borrowings. The securities transferred under repurchase agreements are included in fixed maturities, AFS with the obligation to repurchase those securities recorded in other liabilities on the Company's Consolidated Balance Sheets.

As of December 31, 2016, the Company reported in fixed maturities, AFS on the Consolidated Balance Sheets financial collateral pledged relating to repurchase agreements of $226 in fixed maturities, AFS and $22 in cash. The Company reported a corresponding obligation to repurchase the pledged securities of $241 in other liabilities on the Consolidated Balance Sheets. As of December 31, 2015, the Company reported financial collateral pledged relating to repurchase agreements $440 in fixed maturities, AFS and $5 in cash. The Company reported a corresponding obligation to repurchase the pledged securities of $445 in other liabilities on the Consolidated Balance Sheets. The Company had no outstanding dollar roll transactions as of December 31, 2016 or December 31, 2015.

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of December 31, 2016 and 2015, the fair value of securities on deposit was approximately $2.5 billion.

As of December 31, 2016 and 2015, the Company has pledged as collateral $102 and $35, respectively, of U.S. government securities and government agency securities or cash primarily related to certain bank loan participations committed to through a limited partnership agreement. These amounts also include collateral related to letters of credit.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section of Note 7 - Derivative Instruments.

Equity Method Investments

The majority of the Company's investments in limited partnerships and other alternative investments, including hedge funds, real estate funds, and private equity and other funds (collectively, “limited partnerships”), are accounted for under the equity method of accounting. The remainder of investments in limited partnerships and other alternative investments consists primarily of investments in insurer-owned life insurance accounted for at cash surrender value and a wholly-owned fund of funds accounted for under investment fund accounting measured at fair value as discussed in Note 5 Fair Value Measurements of Notes to Consolidated Financial Statements. This fund of funds was liquidated during 2016. For those limited partnerships and other alternative investments accounted for under the equity method, the Company’s maximum exposure to loss as of December 31, 2016 is limited to the total carrying value of $2.1 billion. In addition, the Company has outstanding commitments totaling $1.2 billion to fund limited partnership and other alternative investments as of December 31, 2016. The Company’s investments in limited partnerships are generally of a passive nature in that the Company does not take an active role in the management of the limited partnerships. In 2016, aggregate investment income from limited partnerships and other alternative investments exceeded 10% of the Company’s pre-tax consolidated net income. Accordingly, the Company is disclosing aggregated summarized financial data for the Company’s limited partnership investments. This aggregated summarized financial data does not represent the Company’s proportionate share of limited partnership assets or earnings. Aggregate total assets of the limited partnerships in which the Company invested totaled $114.4 billion and $95.5 billion as of December 31, 2016 and 2015, respectively. Aggregate total liabilities of the limited partnerships in which the Company invested totaled $19.1 billion and $15.2 billion as of December 31, 2016 and 2015, respectively. Aggregate net investment income of the limited partnerships in which the Company invested totaled $1.0 billion, $1.0 billion and $3.6 billion for the periods ended December 31, 2016, 2015 and 2014, respectively. Aggregate net income of the limited partnerships in which the Company invested totaled $8.0 billion, $6.3 billion and $9.6 billion for the periods ended December 31, 2016, 2015 and 2014, respectively. As of, and for the period ended, December 31, 2016, the aggregated summarized financial data reflects the latest available financial information.