Net Investment Income



	For the years ended December 31,
(Before-tax)	2017			2016			2015
Fixed maturities [1]	$	1,303		$	1,319		$	1,301
Equity securities	24			22			17
Mortgage loans	124			116			115
Limited partnerships and other alternative investments	174			128			130
Other investments [2]	49			51			57
Investment expenses	(71		)	(59		)	(59		)
Total net investment income	$	1,603		$	1,577		$	1,561


[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)	2017			2016			2015
Gross gains on sales	$	275		$	222		$	219
Gross losses on sales	(113		)	(159		)	(194		)
Net OTTI losses recognized in earnings	(8		)	(27		)	(41		)
Valuation allowances on mortgage loans	(1		)	—			(1		)
Transactional foreign currency revaluation	14			(78		)	—
Non-qualifying foreign currency derivatives	(14		)	83			13
Other, net [1]	12			(151		)	(8		)
Net realized capital gains (losses)	$	165		$	(110	)	$	(12	)

[1]

Includes gains (losses) on non-qualifying derivatives, excluding foreign currency derivatives, of $8, $(9), and $(20), respectively for 2017, 2016 and 2015. 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 $152, $36, and $(5) for the years ended December 31, 2017, 2016, and 2015, respectively.

Sales of AFS Securities



	For the years ended December 31,
	2017			2016			2015
Fixed maturities, AFS
Sale proceeds	$	17,614		$	9,984		$	11,161
Gross gains	204			196			177
Gross losses	(90		)	(138		)	(156		)
Equity securities, AFS
Sale proceeds	$	607		$	359		$	733
Gross gains	69			26			35
Gross losses	(23		)	(20		)	(20		)

Sales of AFS securities in 2017 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's considerations include, but are 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,
	2017		2016		2015
Credit impairments	$	2	$	21	$	6
Impairments on equity securities	6		4		2
Intent-to-sell impairments	—		2		30
Other impairments	—		—		3
Total impairments	$	8	$	27	$	41

Cumulative Credit Impairments



	For the years ended December 31,
(Before-tax)	2017			2016			2015
Balance as of beginning of period	$	(110	)	$	(113	)	$	(128	)
Additions for credit impairments recognized on [1]:
Securities not previously impaired	(1		)	(16		)	(4		)
Securities previously impaired	(1		)	(5		)	(2		)
Reductions for credit impairments previously recognized on:
Securities that matured or were sold during the period	76			15			10
Securities the Company made the decision to sell or more likely than not will be required to sell	—			—			1
Securities due to an increase in expected cash flows	11			9			10
Balance as of end of period	$	(25	)	$	(110	)	$	(113	)


[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, 2017												December 31, 2016
	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	$	1,119	$	9	$	(2	)	$	1,126	$	—		$	1,385	$	8	$	(4	)	$	1,389	$	—
CDOs	1,257		3		—			1,260		—			960		18		(2		)	976		—
CMBS	3,304		58		(26		)	3,336		(5		)	2,772		52		(34		)	2,790		(5		)
Corporate	12,370		490		(56		)	12,804		—			10,703		399		(129		)	10,973		—
Foreign govt./govt. agencies	1,071		43		(4		)	1,110		—			827		15		(16		)	826		—
Municipal	11,743		754		(12		)	12,485		—			9,727		635		(65		)	10,297		—
RMBS	2,985		63		(4		)	3,044		—			2,995		32		(21		)	3,006		—
U.S. Treasuries	1,763		46		(10		)	1,799		—			1,927		29		(31		)	1,925		—
Total fixed maturities, AFS	35,612		1,466		(114		)	36,964		(5		)	31,296		1,188		(302		)	32,182		(5		)
Equity securities, AFS	907		121		(16		)	1,012		—			878		84		(17		)	945		—
Total AFS securities	$	36,519	$	1,587	$	(130	)	$	37,976	$	(5	)	$	32,174	$	1,272	$	(319	)	$	33,127	$	(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 as of December 31, 2017 and 2016.

Fixed maturities, AFS, by Contractual Maturity Year



	December 31, 2017				December 31, 2016
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,507	$	1,513	$	1,174	$	1,185
Over one year through five years	5,007		5,119		4,830		4,987
Over five years through ten years	6,505		6,700		5,476		5,596
Over ten years	13,928		14,866		11,704		12,253
Subtotal	26,947		28,198		23,184		24,021
Mortgage-backed and asset-backed securities	8,665		8,766		8,112		8,161
Total fixed maturities, AFS	$	35,612	$	36,964	$	31,296	$	32,182

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 agencies as of December 31, 2017 or December 31, 2016. As of December 31, 2017, other than U.S. government and certain U.S. government agencies, the Company’s three largest exposures by issuer were the New York State Dormitory Authority, New York City Transitional Finance Authority, and the Commonwealth of Massachusetts which each comprised less than 1% of total invested assets. 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 Commonwealth of Massachusetts, New York State Dormitory Authority, and the State of California which each comprised less than 1% of total invested assets. The Company’s three largest exposures by sector as of December 31, 2017 were municipal securities, CMBS, and RMBS which comprised approximately 28%, 7% and 7%, respectively, of total invested assets. The Company’s three largest exposures by sector as of December 31, 2016 were municipal investments, RMBS, and CMBS which comprised approximately 26%, 8% and 7%, 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, 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	)
CDOs	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	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	)

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	$	333	$	331	$	(2	)	$	103	$	101	$	(2	)	$	436	$	432	$	(4	)
CDOs	316		315		(1		)	160		159		(1		)	476		474		(2		)
CMBS	1,018		997		(21		)	154		141		(13		)	1,172		1,138		(34		)
Corporate	2,883		2,784		(99		)	433		403		(30		)	3,316		3,187		(129		)
Foreign govt./govt. agencies	409		395		(14		)	21		19		(2		)	430		414		(16		)
Municipal	1,401		1,338		(63		)	43		41		(2		)	1,444		1,379		(65		)
RMBS	1,107		1,089		(18		)	393		390		(3		)	1,500		1,479		(21		)
U.S. Treasuries	1,047		1,016		(31		)	—		—		—			1,047		1,016		(31		)
Total fixed maturities, AFS	8,514		8,265		(249		)	1,307		1,254		(53		)	9,821		9,519		(302		)
Equity securities, AFS	271		258		(13		)	33		29		(4		)	304		287		(17		)
Total securities in an unrealized loss position	$	8,785	$	8,523	$	(262	)	$	1,340	$	1,283	$	(57	)	$	10,125	$	9,806	$	(319	)

As of December 31, 2017, AFS securities in an unrealized loss position consisted of 2,526 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, 2017, 96% of these securities were depressed less than 20% of cost or amortized cost. The improvement in unrealized losses during 2017 was primarily attributable to tighter credit spreads.

Most of the securities depressed for twelve months or more relate to corporate securities and structured securities with exposure to commercial real estate. Corporate securities and commercial real estate securities were primarily depressed because current market spreads are wider than spreads at the securities' respective purchase dates. Certain other corporate securities were 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. 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 fair value. The mortgage loan's estimated fair 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, 2017, commercial mortgage loans had an amortized cost and carrying value of $3.2 billion. As of December 31, 2016, commercial mortgage loans had an amortized cost and carrying value of $2.9 billion. Amortized cost represents carrying value prior to valuation allowances, if any.

As of December 31, 2017 the carrying value of mortgage loans that had a valuation allowance was $24. As of December 31, 2016, there were no mortgage loans that had a valuation allowance or were held-for-sale. As of December 31, 2017, 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,
	2017			2016			2015
Balance as of January 1	$	—		$	(4	)	$	(3	)
(Additions)/Reversals	(1		)	—			(3		)
Deductions	—			4			2
Balance as of December 31	$	(1	)	$	—		$	(4	)

The weighted-average LTV ratio of the Company’s commercial mortgage loan portfolio was 52% as of December 31, 2017, while the weighted-average LTV ratio at origination of these loans was 61%. 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. As of December 31, 2017 and December 31, 2016 , the Company held no delinquent commercial mortgages loan past due by 90 days or more.

Commercial Mortgage Loans Credit Quality



	December 31, 2017			December 31, 2016
Loan-to-value	Carrying Value		Avg. Debt-Service Coverage Ratio	Carrying Value		Avg. Debt-Service Coverage Ratio
Greater than 80%	$	18	1.27x	$	—	0.00x
65% - 80%	265		1.95x	386		2.16x
Less than 65%	2,892		2.76x	2,500		2.95x
Total commercial mortgage loans	$	3,175	2.69x	$	2,886	2.83x

Mortgage Loans by Region



	December 31, 2017				December 31, 2016
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
East North Central	$	251	7.9	%	$	239	8.3	%
Middle Atlantic	272		8.6	%	297		10.3	%
Mountain	31		1.0	%	61		2.1	%
New England	293		9.2	%	252		8.7	%
Pacific	760		23.9	%	795		27.5	%
South Atlantic	710		22.4	%	585		20.3	%
West North Central	149		4.7	%	40		1.4	%
West South Central	278		8.7	%	210		7.3	%
Other [1]	431		13.6	%	407		14.1	%
Total mortgage loans	$	3,175	100.0	%	$	2,886	100.0	%


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

Mortgage Loans by Property Type



	December 31, 2017				December 31, 2016
	Carrying Value		Percent of Total		Carrying Value		Percent of Total
Commercial
Industrial	817		25.7	%	675		23.4	%
Multifamily	1,006		31.7	%	830		28.8	%
Office	751		23.7	%	756		26.2	%
Retail	367		11.5	%	425		14.7	%
Other	234		7.4	%	200		6.9	%
Total mortgage loans	$	3,175	100.0	%	$	2,886	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, 2017, under this program, the Company serviced commercial mortgage loans with a total outstanding principal of $1.3 billion, of which $402 was serviced on behalf of third parties, $566 was retained and reported in total investments and $356 was reported in assets held for sale on the Company's Consolidated Balance Sheets. As of December 31, 2016, under this program the Company serviced commercial mortgage loans with a total outstanding principal balance of $901, of which $251 was serviced on behalf of third parties, $417 was retained and reported in total investments and $233 was reported in assets held for sale on the Company's Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were zero as of December 31, 2017 and 2016 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 previously as a means of accessing capital through a contingent capital facility ("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

As of December 31, 2017, the Company did not hold any securities for which it is the primary beneficiary. As of December 31, 2016, the Company held one CDO for which it was the primary beneficiary. The CDO represented a structured investment vehicle for which the Company had a controlling financial interest. As of December 31, 2016 the Company held total CDO assets of $5 included in cash with an associated liability of $5 included in other liabilities on the Company's Consolidated Balance Sheets. The Company did not have any additional exposure to loss associated with this investment.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. 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, 2017 and 2016 is limited to the total carrying value of $920 and $871, respectively, which are included in limited partnerships and other alternative investments in the Company's Consolidated Balance Sheets. As of December 31, 2017 and 2016, the Company has outstanding commitments totaling $787 and $701, 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. 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.

As of December 31, 2016, the Company held a significant variable interest in a VIE for which it was not the primary beneficiary. This VIE represented a contingent capital facility that had been held by the Company since February 2007. Assets and liabilities recorded were $1 and $3, respectively, as of December 31, 2016, as well as a maximum exposure to loss of $3. The Company did not have a controlling financial interest and as such, did not consolidate its variable interest in the facility. As of December 31, 2017, the Company no longer held an interest in the facility. For further information on the facility, see Note 13 of these financial statements.

Securities Lending, Repurchase Agreements and Other Collateral Transactions

The Company enters into securities financing transactions as a way to earn additional income or manage liquidity, primarily through securities lending and repurchase agreements.

Securities Lending

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 Condensed 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 Company's Consolidated Balance Sheets. Income associated with securities lending transactions is reported as a component of net investment income in the Company’s Consolidated Statements of Operations.

Repurchase Agreements

From time to time, the Company enters into repurchase agreements to manage liquidity or to earn incremental 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. These transactions generally have a contractual maturity of ninety days or less. 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, the Company's current positions do not meet the specific conditions for net presentation.

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. 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.

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The agreements require additional collateral to be transferred to the Company when necessary and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing.



Securities Lending and Repurchase Agreements
	December 31, 2017		December 31, 2016
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	922	$	53
Gross amount of associated liability for collateral received [1]	$	945	$	54

Repurchase agreements:
Gross amount of recognized liabilities for repurchase agreements	$	174	$	123
Gross amount of collateral pledged related to repurchase agreements [2]	$	176	$	127


[1]	Cash collateral received is reinvested in fixed maturities, AFS and short term investments which are included in the Consolidated Balance Sheets. Amount includes additional securities collateral received of $0 and $13 million which are excluded from the Company's Consolidated Balance Sheets as of December 31, 2017 and December 31, 2016, respectively.


[2]	Collateral pledged is included within fixed maturities, AFS and short term investments in the Company's Consolidated Balance Sheets.

Other Collateral Transactions

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. As of December 31, 2017 and December 31, 2016, the fair value of securities on deposit was $2.5 billion and $2.5 billion, respectively.

As of December 31, 2017 and December 31, 2016, the Company has pledged collateral of $104 and $102, 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 of these financial statements.

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 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. 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, 2017 is limited to the total carrying value of $1.2 billion. In addition, the Company has outstanding commitments totaling $829 to fund limited partnership and other alternative investments as of December 31, 2017. 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 2017, aggregate investment income from limited partnerships and other alternative investments exceeded 10% of the Company’s pre-tax consolidated net income (loss). 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 $165.9 billion and $93.7 billion as of December 31, 2017 and 2016, respectively. Aggregate total liabilities of the limited partnerships in which the Company invested totaled $47.8 billion and $13.6 billion as of December 31, 2017 and 2016, respectively. Aggregate net investment income of the limited partnerships in which the Company invested totaled $1.9 billion, $844, and $914 for the periods ended December 31, 2017, 2016 and 2015, respectively. Aggregate net income of the limited partnerships in which the Company invested totaled $9.8 billion, $7.7 billion and $6.5 billion for the periods ended December 31, 2017, 2016 and 2015, respectively. As of, and for the period ended, December 31, 2017, the aggregated summarized financial data reflects the latest available financial information.