v3.8.0.1

Investments | 12 Months Ended
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Dec. 31, 2017
Investments [Abstract] |
Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables set forth information relating to fixed maturities and equity securities (excluding investments classified as trading), as of the dates indicated:
| December 31, 2017
| Amortized Cost or Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | OTTI in AOCI(4)
| (in millions)
Fixed maturities, available-for-sale: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 22,837 |  |  | $ | 3,647 |  |  | $ | 346 |  |  | $ | 26,138 |  |  | $ | 0 |
Obligations of U.S. states and their political subdivisions | 9,366 |  |  | 1,111 |  |  | 6 |  |  | 10,471 |  |  | 0 |
Foreign government bonds | 88,062 |  |  | 15,650 |  |  | 293 |  |  | 103,419 |  |  | 0 |
U.S. corporate public securities | 81,967 |  |  | 8,671 |  |  | 414 |  |  | 90,224 |  |  | (10 | )
U.S. corporate private securities(1) | 31,852 |  |  | 2,051 |  |  | 169 |  |  | 33,734 |  |  | (13 | )
Foreign corporate public securities | 26,389 |  |  | 3,118 |  |  | 99 |  |  | 29,408 |  |  | (5 | )
Foreign corporate private securities | 23,322 |  |  | 1,242 |  |  | 337 |  |  | 24,227 |  |  | 0 |
Asset-backed securities(2) | 11,965 |  |  | 278 |  |  | 10 |  |  | 12,233 |  |  | (237 | )
Commercial mortgage-backed securities | 13,134 |  |  | 238 |  |  | 91 |  |  | 13,281 |  |  | 0 |
Residential mortgage-backed securities(3) | 3,491 |  |  | 165 |  |  | 11 |  |  | 3,645 |  |  | (2 | )
Total fixed maturities, available-for-sale(1) | $ | 312,385 |  |  | $ | 36,171 |  |  | $ | 1,776 |  |  | $ | 346,780 |  |  | $ | (267 | )
Equity securities, available-for-sale | $ | 4,147 |  |  | $ | 2,056 |  |  | $ | 29 |  |  | $ | 6,174 |  |  |
|  | December 31, 2017
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
|  | (in millions)
Fixed maturities, held-to-maturity: |  |  |  |  |  |  |  |
Foreign government bonds |  | $ | 865 |  |  | $ | 265 |  |  | $ | 0 |  |  | $ | 1,130 |
Foreign corporate public securities |  | 654 |  |  | 82 |  |  | 0 |  |  | 736 |
Foreign corporate private securities(5) |  | 84 |  |  | 2 |  |  | 0 |  |  | 86 |
Commercial mortgage-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Residential mortgage-backed securities(3) |  | 446 |  |  | 32 |  |  | 0 |  |  | 478 |
Total fixed maturities, held-to-maturity(5) |  | $ | 2,049 |  |  | $ | 381 |  |  | $ | 0 |  |  | $ | 2,430 |
__________
(1) | Excludes notes with amortized cost of $2,660 million (fair value, $2,660 million), which have been offset with the associated payables under a netting agreement.
(2) | Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(3) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(4) | Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $553 million of net unrealized gains on impaired available-for-sale securities and $2 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(5) | Excludes notes with amortized cost of $4,627 million (fair value, $4,913 million), which have been offset with the associated payables under a netting agreement.
| December 31, 2016
| Amortized Cost or Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value |  | OTTI in AOCI(4)
| (in millions)
Fixed maturities, available-for-sale: |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 21,505 |  |  | $ | 3,280 |  |  | $ | 1,001 |  |  | $ | 23,784 |  |  | $ | 0 |
Obligations of U.S. states and their political subdivisions | 9,060 |  |  | 716 |  |  | 84 |  |  | 9,692 |  |  | 0 |
Foreign government bonds | 79,862 |  |  | 16,748 |  |  | 354 |  |  | 96,256 |  |  | 0 |
U.S. corporate public securities | 76,383 |  |  | 6,460 |  |  | 1,232 |  |  | 81,611 |  |  | (17 | )
U.S. corporate private securities(1) | 29,974 |  |  | 2,122 |  |  | 308 |  |  | 31,788 |  |  | (22 | )
Foreign corporate public securities | 25,758 |  |  | 2,784 |  |  | 305 |  |  | 28,237 |  |  | (6 | )
Foreign corporate private securities | 21,383 |  |  | 646 |  |  | 1,149 |  |  | 20,880 |  |  | 0 |
Asset-backed securities(2) | 11,759 |  |  | 229 |  |  | 53 |  |  | 11,935 |  |  | (288 | )
Commercial mortgage-backed securities | 12,589 |  |  | 240 |  |  | 125 |  |  | 12,704 |  |  | (1 | )
Residential mortgage-backed securities(3) | 4,308 |  |  | 238 |  |  | 14 |  |  | 4,532 |  |  | (3 | )
Total fixed maturities, available-for-sale(1) | $ | 292,581 |  |  | $ | 33,463 |  |  | $ | 4,625 |  |  | $ | 321,419 |  |  | $ | (337 | )
Equity securities, available-for-sale | $ | 7,149 |  |  | $ | 2,641 |  |  | $ | 42 |  |  | $ | 9,748 |  |  |
|  | December 31, 2016
|  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
|  | (in millions)
Fixed maturities, held-to-maturity: |  |  |  |  |  |  |  |
Foreign government bonds |  | $ | 839 |  |  | $ | 262 |  |  | $ | 0 |  |  | $ | 1,101 |
Foreign corporate public securities |  | 651 |  |  | 71 |  |  | 0 |  |  | 722 |
Foreign corporate private securities(5) |  | 81 |  |  | 4 |  |  | 0 |  |  | 85 |
Commercial mortgage-backed securities |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Residential mortgage-backed securities(3) |  | 573 |  |  | 43 |  |  | 0 |  |  | 616 |
Total fixed maturities, held-to-maturity(5) |  | $ | 2,144 |  |  | $ | 380 |  |  | $ | 0 |  |  | $ | 2,524 |
__________
(1) | Excludes notes with amortized cost of $1,456 million (fair value, $1,456 million), which have been offset with the associated payables under a netting agreement.
(2) | Includes credit-tranched securities collateralized by loan obligations, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
(3) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(4) | Represents the amount of unrealized losses remaining in AOCI, from the impairment measurement date. Amount excludes $649 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(5) | Excludes notes with amortized cost of $4,403 million (fair value, $4,403 million), which have been offset with the associated payables under a netting agreement.
The following tables set forth the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity and equity securities had been in a continuous unrealized loss position, as of the dates indicated:
|  | December 31, 2017
|  | Less Than Twelve Months |  | Twelve Months or More |  | Total
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (in millions)
Fixed maturities(1): |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government authorities and agencies |  | $ | 3,450 |  |  | $ | 28 |  |  | $ | 6,391 |  |  | $ | 318 |  |  | $ | 9,841 |  |  | $ | 346 |
Obligations of U.S. states and their political subdivisions |  | 44 |  |  | 0 |  |  | 287 |  |  | 6 |  |  | 331 |  |  | 6 |
Foreign government bonds |  | 4,417 |  |  | 55 |  |  | 2,937 |  |  | 238 |  |  | 7,354 |  |  | 293 |
U.S. corporate public securities |  | 7,914 |  |  | 110 |  |  | 6,831 |  |  | 304 |  |  | 14,745 |  |  | 414 |
U.S. corporate private securities |  | 4,596 |  |  | 76 |  |  | 2,009 |  |  | 93 |  |  | 6,605 |  |  | 169 |
Foreign corporate public securities |  | 2,260 |  |  | 21 |  |  | 1,678 |  |  | 78 |  |  | 3,938 |  |  | 99 |
Foreign corporate private securities |  | 1,213 |  |  | 20 |  |  | 5,339 |  |  | 317 |  |  | 6,552 |  |  | 337 |
Asset-backed securities |  | 564 |  |  | 2 |  |  | 366 |  |  | 8 |  |  | 930 |  |  | 10 |
Commercial mortgage-backed securities |  | 2,593 |  |  | 17 |  |  | 2,212 |  |  | 74 |  |  | 4,805 |  |  | 91 |
Residential mortgage-backed securities |  | 584 |  |  | 4 |  |  | 286 |  |  | 7 |  |  | 870 |  |  | 11 |
Total |  | $ | 27,635 |  |  | $ | 333 |  |  | $ | 28,336 |  |  | $ | 1,443 |  |  | $ | 55,971 |  |  | $ | 1,776 |
Equity securities, available-for-sale |  | $ | 358 |  |  | $ | 28 |  |  | $ | 0 |  |  | $ | 1 |  |  | $ | 358 |  |  | $ | 29 |
__________
(1) | Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of December 31, 2017.
|  | December 31, 2016
|  | Less Than Twelve Months |  | Twelve Months or More |  | Total
|  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses
|  | (in millions)
Fixed maturities(1): |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government authorities and agencies |  | $ | 9,345 |  |  | $ | 1,001 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 9,345 |  |  | $ | 1,001 |
Obligations of U.S. states and their political subdivisions |  | 2,677 |  |  | 79 |  |  | 19 |  |  | 5 |  |  | 2,696 |  |  | 84 |
Foreign government bonds |  | 6,076 |  |  | 325 |  |  | 310 |  |  | 29 |  |  | 6,386 |  |  | 354 |
U.S. corporate public securities |  | 22,803 |  |  | 905 |  |  | 2,943 |  |  | 327 |  |  | 25,746 |  |  | 1,232 |
U.S. corporate private securities |  | 7,797 |  |  | 228 |  |  | 1,296 |  |  | 80 |  |  | 9,093 |  |  | 308 |
Foreign corporate public securities |  | 5,196 |  |  | 162 |  |  | 1,047 |  |  | 143 |  |  | 6,243 |  |  | 305 |
Foreign corporate private securities |  | 6,557 |  |  | 350 |  |  | 4,916 |  |  | 799 |  |  | 11,473 |  |  | 1,149 |
Asset-backed securities |  | 2,357 |  |  | 20 |  |  | 1,581 |  |  | 33 |  |  | 3,938 |  |  | 53 |
Commercial mortgage-backed securities |  | 4,879 |  |  | 123 |  |  | 60 |  |  | 2 |  |  | 4,939 |  |  | 125 |
Residential mortgage-backed securities |  | 926 |  |  | 12 |  |  | 78 |  |  | 2 |  |  | 1,004 |  |  | 14 |
Total |  | $ | 68,613 |  |  | $ | 3,205 |  |  | $ | 12,250 |  |  | $ | 1,420 |  |  | $ | 80,863 |  |  | $ | 4,625 |
Equity securities, available-for-sale |  | $ | 637 |  |  | $ | 41 |  |  | $ | 12 |  |  | $ | 1 |  |  | $ | 649 |  |  | $ | 42 |
__________
(1) | Includes $12 million of fair value and less than $1 million of gross unrealized losses, which are not reflected in AOCI, on securities classified as held-to-maturity, as of December 31, 2016.
As of December 31, 2017 and 2016, the gross unrealized losses on fixed maturity securities were composed of $1,470 million and $4,233 million, respectively, related to “1” highest quality or “2” high quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $306 million and $392 million, respectively, related to other than high or highest quality securities based on NAIC or equivalent rating. As of December 31, 2017, the $1,443 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in U.S. government bonds, foreign government bonds and in the Company’s corporate securities within the energy, utility and consumer non-cyclical sectors. As of December 31, 2016, the $1,420 million of gross unrealized losses on fixed maturity securities of twelve months or more were concentrated in the Company’s corporate securities within the energy, utility and capital goods sectors. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these fixed maturity securities was not warranted at either December 31, 2017 or 2016. These conclusions were based on a detailed analysis of the underlying credit and cash flows on each security. Gross unrealized losses are primarily attributable to general credit spread widening, increases in interest rates and foreign currency exchange rate movements. As of December 31, 2017, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost basis. As of December 31, 2017, $8 million of the gross unrealized losses on equity securities represented declines in value of 20% or more, $5 million of which had been in a gross unrealized loss position for less than six months. As of December 31, 2016, $9 million of the gross unrealized losses on equity securities represented declines in value of 20% or more, $8 million of which had been in a gross unrealized loss position for less than six months. In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these equity securities was not warranted at either December 31, 2017 or 2016. The following table sets forth the amortized cost and fair value of fixed maturities by contractual maturities, as of the date indicated:
|  | December 31, 2017
|  | Available-for-Sale |  | Held-to-Maturity
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
|  | (in millions)
Fixed maturities: |  |  |  |  |  |  |  |
Due in one year or less |  | $ | 8,244 |  |  | $ | 8,711 |  |  | $ | 0 |  |  | $ | 0 |
Due after one year through five years |  | 47,967 |  |  | 51,936 |  |  | 176 |  |  | 183 |
Due after five years through ten years |  | 69,445 |  |  | 75,596 |  |  | 565 |  |  | 642 |
Due after ten years(1) |  | 158,139 |  |  | 181,378 |  |  | 862 |  |  | 1,127 |
Asset-backed securities |  | 11,965 |  |  | 12,233 |  |  | 0 |  |  | 0 |
Commercial mortgage-backed securities |  | 13,134 |  |  | 13,281 |  |  | 0 |  |  | 0 |
Residential mortgage-backed securities |  | 3,491 |  |  | 3,645 |  |  | 446 |  |  | 478 |
Total |  | $ | 312,385 |  |  | $ | 346,780 |  |  | $ | 2,049 |  |  | $ | 2,430 |
__________
(1) | Excludes available-for-sale notes with amortized cost of $2,660 million (fair value, $2,660 million) and held-to-maturity notes with amortized cost of $4,627 million (fair value, $4,913 million), which have been offset with the associated payables under a netting agreement.
Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Asset-backed, commercial mortgage-backed and residential mortgage-backed securities are shown separately in the table above, as they do not have a single maturity date. The following table sets forth the sources of fixed maturity and equity security proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities, for the periods indicated:
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (in millions)
Fixed maturities, available-for-sale: |  |
Proceeds from sales(1) |  | $ | 34,002 |  |  | $ | 29,878 |  |  | $ | 27,679 |
Proceeds from maturities/prepayments |  | 24,460 |  |  | 19,710 |  |  | 19,559 |
Gross investment gains from sales and maturities |  | 1,548 |  |  | 1,433 |  |  | 2,115 |
Gross investment losses from sales and maturities |  | (700 | ) |  | (545 | ) |  | (340 | )
OTTI recognized in earnings(2) |  | (267 | ) |  | (222 | ) |  | (141 | )
Fixed maturities, held-to-maturity: |  |  |  |  |  |
Proceeds from maturities/prepayments(3) |  | $ | 153 |  |  | $ | 272 |  |  | $ | 235 |
Equity securities, available-for-sale: |  |  |  |  |  |
Proceeds from sales(4) |  | $ | 4,552 |  |  | $ | 3,504 |  |  | $ | 4,589 |
Gross investment gains from sales |  | 1,187 |  |  | 608 |  |  | 746 |
Gross investment losses from sales |  | (94 | ) |  | (158 | ) |  | (169 | )
OTTI recognized in earnings |  | (27 | ) |  | (74 | ) |  | (126 | )
__________
(1) | Includes $218 million, $(125) million and $158 million of non-cash related proceeds for the years ended December 31, 2017, 2016 and 2015, respectively.
(2) | Excludes the portion of OTTI recorded in “Other comprehensive income (loss)” (“OCI”), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.
(3) | Includes $(2) million, $1 million and less than $1 million of non-cash related proceeds for the years ended December 31, 2017, 2016 and 2015, respectively.
(4) | Includes $2 million, $2 million and $12 million of non-cash related proceeds for the years ended December 31, 2017, 2016 and 2015, respectively.
The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company for which a portion of the OTTI loss was recognized in OCI and the corresponding changes in such amounts, for the periods indicated:
|  | Years Ended December 31,
|  | 2017 |  | 2016
|  | (in millions)
Balance, beginning of period |  | $ | 359 |  |  | $ | 532 |
New credit loss impairments |  | 10 |  |  | 41 |
Additional credit loss impairments on securities previously impaired |  | 11 |  |  | 1 |
Increases due to the passage of time on previously recorded credit losses |  | 15 |  |  | 24 |
Reductions for securities which matured, paid down, prepaid or were sold during the period |  | (58 | ) |  | (229 | )
Reductions for securities impaired to fair value during the period(1) |  | (13 | ) |  | (2 | )
Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected |  | (5 | ) |  | (8 | )
Balance, end of period |  | $ | 319 |  |  | $ | 359 |
__________
(1) | Represents circumstances where the Company determined in the current period that it intends to sell the security or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
Trading Account Assets Supporting Insurance Liabilities The following table sets forth the composition of “Trading account assets supporting insurance liabilities,” as of the dates indicated:
|  | December 31, 2017 |  | December 31, 2016
|  | Amortized Cost or Cost |  | Fair Value |  | Amortized Cost or Cost |  | Fair Value
|  | (in millions)
Short-term investments and cash equivalents |  | $ | 245 |  |  | $ | 245 |  |  | $ | 655 |  |  | $ | 655 |
Fixed maturities: |  |  |  |  |  |  |  |
Corporate securities |  | 13,816 |  |  | 14,073 |  |  | 13,903 |  |  | 13,997 |
Commercial mortgage-backed securities |  | 2,294 |  |  | 2,311 |  |  | 2,032 |  |  | 2,052 |
Residential mortgage-backed securities(1) |  | 961 |  |  | 966 |  |  | 1,142 |  |  | 1,150 |
Asset-backed securities(2) |  | 1,363 |  |  | 1,392 |  |  | 1,333 |  |  | 1,349 |
Foreign government bonds |  | 1,050 |  |  | 1,057 |  |  | 915 |  |  | 926 |
U.S. government authorities and agencies and obligations of U.S. states |  | 357 |  |  | 410 |  |  | 330 |  |  | 376 |
Total fixed maturities |  | 19,841 |  |  | 20,209 |  |  | 19,655 |  |  | 19,850 |
Equity securities |  | 1,278 |  |  | 1,643 |  |  | 1,097 |  |  | 1,335 |
Total trading account assets supporting insurance liabilities |  | $ | 21,364 |  |  | $ | 22,097 |  |  | $ | 21,407 |  |  | $ | 21,840 |
__________
(1) | Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
(2) | Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans and other asset types.
The net change in unrealized gains (losses) from trading account assets supporting insurance liabilities still held at period end, recorded within “Other income,” was $300 million, $75 million and $(642) million during the years ended December 31, 2017, 2016 and 2015, respectively. Other Trading Account Assets The following table sets forth the composition of “Other trading account assets,” as of the dates indicated:
|  | December 31, 2017 |  | December 31, 2016
|  | Amortized Cost or Cost |  | Fair Value |  | Amortized Cost or Cost |  | Fair Value
|  | (in millions)
Short-term investments and cash equivalents |  | $ | 25 |  |  | $ | 25 |  |  | $ | 26 |  |  | $ | 26 |
Fixed maturities |  | 3,509 |  |  | 3,507 |  |  | 3,634 |  |  | 3,453 |
Equity securities |  | 1,007 |  |  | 1,155 |  |  | 985 |  |  | 1,056 |
Other |  | 6 |  |  | 7 |  |  | 4 |  |  | 5 |
Subtotal |  | $ | 4,547 |  |  | 4,694 |  |  | $ | 4,649 |  |  | 4,540 |
Derivative instruments |  |  |  | 1,058 |  |  |  |  | 1,224 |
Total other trading account assets |  |  |  | $ | 5,752 |  |  |  |  | $ | 5,764 |
The net change in unrealized gains (losses) from other trading account assets, excluding derivative instruments, still held at period end, recorded within “Other income,” was $256 million, $164 million and $(366) million during the years ended December 31, 2017, 2016 and 2015, respectively. Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer. As of the dates indicated, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and certain U.S. government agencies and securities guaranteed by the U.S. government, as well as the securities disclosed below:
|  | December 31, 2017 |  | December 31, 2016
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
|  | (in millions)
Investments in Japanese government and government agency securities: |  |  |  |  |  |  |  |
Fixed maturities, available-for-sale |  | $ | 64,628 |  |  | $ | 76,311 |  |  | $ | 60,240 |  |  | $ | 73,051 |
Fixed maturities, held-to-maturity |  | 844 |  |  | 1,103 |  |  | 818 |  |  | 1,075 |
Trading account assets supporting insurance liabilities |  | 657 |  |  | 667 |  |  | 537 |  |  | 550 |
Other trading account assets |  | 23 |  |  | 23 |  |  | 16 |  |  | 16 |
Total |  | $ | 66,152 |  |  | $ | 78,104 |  |  | $ | 61,611 |  |  | $ | 74,692 |
|  | December 31, 2017 |  | December 31, 2016
|  | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
|  | (in millions)
Investments in South Korean government and government agency securities: |  |  |  |  |  |  |  |
Fixed maturities, available-for-sale |  | $ | 9,425 |  |  | $ | 10,989 |  |  | $ | 7,581 |  |  | $ | 9,435 |
Fixed maturities, held-to-maturity |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Trading account assets supporting insurance liabilities |  | 15 |  |  | 15 |  |  | 44 |  |  | 44 |
Other trading account assets |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total |  | $ | 9,440 |  |  | $ | 11,004 |  |  | $ | 7,625 |  |  | $ | 9,479 |
Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:
|  | December 31, 2017 |  | December 31, 2016
|  | Amount (in millions) |  | % of Total |  | Amount (in millions) |  | % of Total
Commercial mortgage and agricultural property loans by property type: |  |  |  |  |  |  |  |
Office |  | $ | 12,670 |  |  | 22.9 | % |  | $ | 12,424 |  |  | 23.9 | %
Retail |  | 8,543 |  |  | 15.5 |  |  | 8,555 |  |  | 16.5 |
Apartments/Multi-Family |  | 15,465 |  |  | 28.0 |  |  | 13,733 |  |  | 26.4 |
Industrial |  | 9,451 |  |  | 17.1 |  |  | 8,075 |  |  | 15.5 |
Hospitality |  | 2,067 |  |  | 3.7 |  |  | 2,274 |  |  | 4.4 |
Other |  | 3,888 |  |  | 7.0 |  |  | 3,966 |  |  | 7.6 |
Total commercial mortgage loans |  | 52,084 |  |  | 94.2 |  |  | 49,027 |  |  | 94.3 |
Agricultural property loans |  | 3,203 |  |  | 5.8 |  |  | 2,958 |  |  | 5.7 |
Total commercial mortgage and agricultural property loans by property type |  | 55,287 |  |  | 100.0 | % |  | 51,985 |  |  | 100.0 | %
Valuation allowance |  | (100 | ) |  |  |  | (98 | ) |  |
Total net commercial mortgage and agricultural property loans by property type |  | 55,187 |  |  |  |  | 51,887 |  |  |
Other loans: |  |  |  |  |  |  |  |
Uncollateralized loans |  | 663 |  |  |  |  | 638 |  |  |
Residential property loans |  | 196 |  |  |  |  | 252 |  |  |
Other collateralized loans |  | 5 |  |  |  |  | 10 |  |  |
Total other loans |  | 864 |  |  |  |  | 900 |  |  |
Valuation allowance |  | (6 | ) |  |  |  | (8 | ) |  |
Total net other loans |  | 858 |  |  |  |  | 892 |  |  |
Total commercial mortgage and other loans(1) |  | $ | 56,045 |  |  |  |  | $ | 52,779 |  |  |
__________
(1) | Includes loans held for sale which are carried at fair value and are collateralized primarily by apartment complexes. As of December 31, 2017 and 2016, the net carrying value of these loans was $593 million and $519 million, respectively.
As of December 31, 2017, the commercial mortgage and agricultural property loans were geographically dispersed throughout the United States (with the largest concentrations in California (27%), Texas (9%) and New York (9%)) and included loans secured by properties in Europe (6%) and Asia (1%). The following tables set forth the activity in the allowance for credit losses for commercial mortgage and other loans, as of the dates indicated:
|  | December 31, 2017
|  | Commercial Mortgage Loans |  | Agricultural Property Loans |  | Residential Property Loans |  | Other Collateralized Loans |  | Uncollateralized Loans |  | Total
|  | (in millions)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year |  | $ | 96 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 0 |  |  | $ | 6 |  |  | $ | 106 |
Addition to (release of) allowance for losses |  | 2 |  |  | 1 |  |  | (1 | ) |  | 0 |  |  | (1 | ) |  | 1 |
Charge-offs, net of recoveries |  | (1 | ) |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | (1 | )
Change in foreign exchange |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total ending balance |  | $ | 97 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 5 |  |  | $ | 106 |
|  | December 31, 2016
|  | Commercial Mortgage Loans |  | Agricultural Property Loans |  | Residential Property Loans |  | Other Collateralized Loans |  | Uncollateralized Loans |  | Total
|  | (in millions)
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year |  | $ | 97 |  |  | $ | 2 |  |  | $ | 3 |  |  | $ | 0 |  |  | $ | 10 |  |  | $ | 112 |
Addition to (release of) allowance for losses |  | 0 |  |  | 0 |  |  | (1 | ) |  | 0 |  |  | (5 | ) |  | (6 | )
Charge-offs, net of recoveries |  | (1 | ) |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | (1 | )
Change in foreign exchange |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 1 |
Total ending balance |  | $ | 96 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 0 |  |  | $ | 6 |  |  | $ | 106 |
The following tables set forth the allowance for credit losses and the recorded investment in commercial mortgage and other loans, as of the dates indicated:
|  | December 31, 2017
|  | Commercial Mortgage Loans |  | Agricultural Property Loans |  | Residential Property Loans |  | Other Collateralized Loans |  | Uncollateralized Loans |  | Total
|  | (in millions)
Allowance for credit losses: |  |
Individually evaluated for impairment |  | $ | 7 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 7 |
Collectively evaluated for impairment |  | 90 |  |  | 3 |  |  | 1 |  |  | 0 |  |  | 5 |  |  | 99 |
Total ending balance(1) |  | $ | 97 |  |  | $ | 3 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 5 |  |  | $ | 106 |
Recorded investment(2): |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 75 |  |  | $ | 39 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 2 |  |  | $ | 116 |
Collectively evaluated for impairment |  | 52,009 |  |  | 3,164 |  |  | 196 |  |  | 5 |  |  | 661 |  |  | 56,035 |
Total ending balance(1) |  | $ | 52,084 |  |  | $ | 3,203 |  |  | $ | 196 |  |  | $ | 5 |  |  | $ | 663 |  |  | $ | 56,151 |
__________
(1) | As of December 31, 2017, there were no loans acquired with deteriorated credit quality.
(2) | Recorded investment reflects the carrying value gross of related allowance.
|  | December 31, 2016
|  | Commercial Mortgage Loans |  | Agricultural Property Loans |  | Residential Property Loans |  | Other Collateralized Loans |  | Uncollateralized Loans |  | Total
|  | (in millions)
Allowance for credit losses: |  |
Individually evaluated for impairment |  | $ | 6 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 6 |
Collectively evaluated for impairment |  | 90 |  |  | 2 |  |  | 2 |  |  | 0 |  |  | 6 |  |  | 100 |
Total ending balance(1) |  | $ | 96 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 0 |  |  | $ | 6 |  |  | $ | 106 |
Recorded investment(2): |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 116 |  |  | $ | 30 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 2 |  |  | $ | 148 |
Collectively evaluated for impairment |  | 48,911 |  |  | 2,928 |  |  | 252 |  |  | 10 |  |  | 636 |  |  | 52,737 |
Total ending balance(1) |  | $ | 49,027 |  |  | $ | 2,958 |  |  | $ | 252 |  |  | $ | 10 |  |  | $ | 638 |  |  | $ | 52,885 |
__________
(1) | As of December 31, 2016, there were no loans acquired with deteriorated credit quality.
(2) | Recorded investment reflects the carrying value gross of related allowance.
The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:
Commercial mortgage loans |  |
|  | December 31, 2017
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 30,082 |  |  | $ | 639 |  |  | $ | 251 |  |  | $ | 30,972 |
60%-69.99% |  | 13,658 |  |  | 530 |  |  | 121 |  |  | 14,309 |
70%-79.99% |  | 5,994 |  |  | 514 |  |  | 29 |  |  | 6,537 |
80% or greater |  | 93 |  |  | 54 |  |  | 119 |  |  | 266 |
Total commercial mortgage loans |  | $ | 49,827 |  |  | $ | 1,737 |  |  | $ | 520 |  |  | $ | 52,084 |
Agricultural property loans |  |  |  |  |  |  |  |
|  | December 31, 2017
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 2,988 |  |  | $ | 170 |  |  | $ | 5 |  |  | $ | 3,163 |
60%-69.99% |  | 40 |  |  | 0 |  |  | 0 |  |  | 40 |
70%-79.99% |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
80% or greater |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total agricultural property loans |  | $ | 3,028 |  |  | $ | 170 |  |  | $ | 5 |  |  | $ | 3,203 |
Total commercial mortgage and agricultural property loans |  |  |  |  |  |  |  |
|  | December 31, 2017
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 33,070 |  |  | $ | 809 |  |  | $ | 256 |  |  | $ | 34,135 |
60%-69.99% |  | 13,698 |  |  | 530 |  |  | 121 |  |  | 14,349 |
70%-79.99% |  | 5,994 |  |  | 514 |  |  | 29 |  |  | 6,537 |
80% or greater |  | 93 |  |  | 54 |  |  | 119 |  |  | 266 |
Total commercial mortgage and agricultural property loans |  | $ | 52,855 |  |  | $ | 1,907 |  |  | $ | 525 |  |  | $ | 55,287 |
The following tables set forth certain key credit quality indicators based upon the recorded investment gross of allowance for credit losses, as of the date indicated:
Commercial mortgage loans |  |  |  |  |  |  |  |
|  | December 31, 2016
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 28,131 |  |  | $ | 446 |  |  | $ | 626 |  |  | $ | 29,203 |
60%-69.99% |  | 12,608 |  |  | 401 |  |  | 115 |  |  | 13,124 |
70%-79.99% |  | 5,383 |  |  | 694 |  |  | 56 |  |  | 6,133 |
80% or greater |  | 373 |  |  | 62 |  |  | 132 |  |  | 567 |
Total commercial mortgage loans |  | $ | 46,495 |  |  | $ | 1,603 |  |  | $ | 929 |  |  | $ | 49,027 |
Agricultural property loans |  |  |  |  |  |  |  |
|  | December 31, 2016
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 2,803 |  |  | $ | 114 |  |  | $ | 17 |  |  | $ | 2,934 |
60%-69.99% |  | 24 |  |  | 0 |  |  | 0 |  |  | 24 |
70%-79.99% |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
80% or greater |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total agricultural property loans |  | $ | 2,827 |  |  | $ | 114 |  |  | $ | 17 |  |  | $ | 2,958 |
Total commercial mortgage and agricultural property loans |  |  |  |  |  |  |  |
|  | December 31, 2016
|  | Debt Service Coverage Ratio |  |
|  | >1.2X |  | 1.0X to <1.2X |  | < 1.0X |  | Total
|  | (in millions)
Loan-to-Value Ratio: |  |
0%-59.99% |  | $ | 30,934 |  |  | $ | 560 |  |  | $ | 643 |  |  | $ | 32,137 |
60%-69.99% |  | 12,632 |  |  | 401 |  |  | 115 |  |  | 13,148 |
70%-79.99% |  | 5,383 |  |  | 694 |  |  | 56 |  |  | 6,133 |
80% or greater |  | 373 |  |  | 62 |  |  | 132 |  |  | 567 |
Total commercial mortgage and agricultural property loans |  | $ | 49,322 |  |  | $ | 1,717 |  |  | $ | 946 |  |  | $ | 51,985 |
The following tables set forth an aging of past due commercial mortgage and other loans based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage and other loans on non-accrual status, as of the dates indicated:
|  | December 31, 2017
|  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due(1) |  | Total Past Due |  | Total Loans |  | Non-Accrual Status(2)
|  | (in millions)
Commercial mortgage loans |  | $ | 52,084 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 52,084 |  |  | $ | 71 |
Agricultural property loans |  | 3,201 |  |  | 0 |  |  | 0 |  |  | 2 |  |  | 2 |  |  | 3,203 |  |  | 23 |
Residential property loans |  | 191 |  |  | 3 |  |  | 0 |  |  | 2 |  |  | 5 |  |  | 196 |  |  | 2 |
Other collateralized loans |  | 5 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 5 |  |  | 0 |
Uncollateralized loans |  | 663 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 663 |  |  | 0 |
Total |  | $ | 56,144 |  |  | $ | 3 |  |  | $ | 0 |  |  | $ | 4 |  |  | $ | 7 |  |  | $ | 56,151 |  |  | $ | 96 |
__________
(1) | As of December 31, 2017, there were no loans in this category accruing interest.
(2) | For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.
|  | December 31, 2016
|  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 Days or More Past Due(1) |  | Total Past Due |  | Total Loans |  | Non-Accrual Status(2)
|  | (in millions)
Commercial mortgage loans |  | $ | 49,006 |  |  | $ | 21 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 21 |  |  | $ | 49,027 |  |  | $ | 49 |
Agricultural property loans |  | 2,956 |  |  | 0 |  |  | 0 |  |  | 2 |  |  | 2 |  |  | 2,958 |  |  | 2 |
Residential property loans |  | 241 |  |  | 7 |  |  | 1 |  |  | 3 |  |  | 11 |  |  | 252 |  |  | 3 |
Other collateralized loans |  | 10 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 10 |  |  | 0 |
Uncollateralized loans |  | 638 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 638 |  |  | 0 |
Total |  | $ | 52,851 |  |  | $ | 28 |  |  | $ | 1 |  |  | $ | 5 |  |  | $ | 34 |  |  | $ | 52,885 |  |  | $ | 54 |
__________
(1) | As of December 31, 2016, there were no loans in this category accruing interest.
(2) | For additional information regarding the Company’s policies for accruing interest on loans, see Note 2.
For the years ended December 31, 2017 and 2016, there were no commercial mortgage and other loans acquired, other than those through direct origination and there were $2 million and $0 million of commercial mortgage and other loans sold, respectively, other than those classified as held-for-sale. The Company’s commercial mortgage and other loans may occasionally be involved in a troubled debt restructuring. As of December 31, 2017 and 2016, there were $0 million and $47 million, respectively, of new troubled debt restructurings related to commercial mortgage and other loans with payment defaults on loans that were modified as a troubled debt restructuring within the twelve months preceding. As of both December 31, 2017 and 2016, the Company had no significant commitments to provide additional funds to borrowers that had been involved in a troubled debt restructurings. For additional information relating to the accounting for troubled debt restructurings, see Note 2. As of December 31, 2017, there were $5 million of private debt commitments to provide additional funds to borrowers that had been involved in a troubled debt restructuring. Other Long-Term Investments The following table sets forth the composition of “Other long-term investments,” as of the dates indicated:
|  | December 31,
|  | 2017 |  | 2016
|  | (in millions)
Joint ventures and limited partnerships: |  |  |  |
Private equity |  | $ | 4,280 |  |  | $ | 4,059 |
Hedge funds |  | 3,222 |  |  | 2,660 |
Real estate-related |  | 1,218 |  |  | 1,291 |
Total joint ventures and limited partnerships |  | 8,720 |  |  | 8,010 |
Real estate held through direct ownership(1) |  | 2,409 |  |  | 2,195 |
Other(2) |  | 1,179 |  |  | 1,078 |
Total other long-term investments |  | $ | 12,308 |  |  | $ | 11,283 |
__________
(1) | As of December 31, 2017 and 2016, real estate held through direct ownership had mortgage debt of $799 million and $659 million, respectively.
(2) | Primarily includes strategic investments made by investment management operations, leveraged leases, member and activity stock held in the Federal Home Loan Banks of New York and Boston and certain derivatives. For additional information regarding the Company’s holdings in the Federal Home Loan Banks of New York and Boston, see Note 14.
In certain investment structures, the Company’s investment management business invests with other co-investors in an investment fund referred to as a feeder fund. In these structures, the invested capital of several feeder funds is pooled together and used to purchase ownership interests in another fund, referred to as a master fund. The master fund utilizes this invested capital and, in certain cases, other debt financing, to purchase various classes of assets on behalf of its investors. Specialized industry accounting for investment companies calls for the feeder fund to reflect its investment in the master fund as a single net asset equal to its proportionate share of the net assets of the master fund, regardless of its level of interest in the master fund. In cases where the Company consolidates the feeder fund, it retains the feeder fund’s net asset presentation and reports the consolidated feeder fund’s proportionate share of the net assets of the master fund in “Other long-term investments,” with any unaffiliated investors’ non-controlling interest in the feeder fund reported in “Other liabilities” or “Noncontrolling interests.” The consolidated feeder funds’ investments in these master funds, reflected on this net asset basis, totaled $451 million and $216 million as of December 31, 2017 and 2016, respectively. There was $310 million and $93 million of unaffiliated interest in the consolidated feeder funds as of December 31, 2017 and 2016, respectively, and the master funds had gross assets of $82,126 million and $36,279 million, respectively, and gross liabilities of $79,185 million and $34,880 million, respectively, which are not included on the Company’s balance sheet. Equity Method Investments The following tables set forth summarized combined financial information for significant joint ventures and limited partnership interests accounted for under the equity method, including the Company’s investments in operating joint ventures that are described in more detail in Note 7. Changes between periods in the tables below reflect changes in the activities within the joint ventures and limited partnerships, as well as changes in the Company’s level of investment in such entities.
|  | December 31,
|  | 2017 |  | 2016
|  | (in millions)
STATEMENTS OF FINANCIAL POSITION |  |  |  |
Total assets(1) |  | $ | 62,292 |  |  | $ | 59,897 |
Total liabilities(2) |  | $ | 15,225 |  |  | $ | 14,787 |
Partners’ capital |  | 47,067 |  |  | 45,110 |
Total liabilities and partners’ capital |  | $ | 62,292 |  |  | $ | 59,897 |
Total liabilities and partners’ capital included above |  | $ | 5,515 |  |  | $ | 5,135 |
Equity in limited partnership interests not included above |  | 696 |  |  | 592 |
Carrying value |  | $ | 6,211 |  |  | $ | 5,727 |
__________
(1) | Assets consist primarily of investments in real estate, investments in securities and other miscellaneous assets.
(2) | Liabilities consist primarily of third-party-borrowed funds, securities repurchase agreements and other miscellaneous liabilities.
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (in millions)
STATEMENTS OF OPERATIONS |  |  |  |  |  |
Total revenue(1) |  | $ | 6,392 |  |  | $ | 5,360 |  |  | $ | 4,356 |
Total expenses(2) |  | (2,300 | ) |  | (1,995 | ) |  | (1,803 | )
Net earnings (losses) |  | $ | 4,092 |  |  | $ | 3,365 |  |  | $ | 2,553 |
Equity in net earnings (losses) included above |  | $ | 409 |  |  | $ | 247 |  |  | $ | 216 |
Equity in net earnings (losses) of limited partnership interests not included above |  | 123 |  |  | 103 |  |  | 32 |
Total equity in net earnings (losses) |  | $ | 532 |  |  | $ | 350 |  |  | $ | 248 |
__________
(1) | Revenue consists of income from investments in real estate, investments in securities and other income.
(2) | Expenses consist primarily of interest expense, investment management fees, salary expenses and other expenses.
Net Investment Income The following table sets forth “Net investment income” by investment type, for the periods indicated:
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (in millions)
Fixed maturities, available-for-sale(1) |  | $ | 11,482 |  |  | $ | 10,920 |  |  | $ | 10,347 |
Fixed maturities, held-to-maturity(1) |  | 215 |  |  | 208 |  |  | 202 |
Equity securities, available-for-sale |  | 377 |  |  | 366 |  |  | 337 |
Trading account assets |  | 920 |  |  | 986 |  |  | 1,205 |
Commercial mortgage and other loans |  | 2,267 |  |  | 2,243 |  |  | 2,255 |
Policy loans |  | 617 |  |  | 627 |  |  | 619 |
Short-term investments and cash equivalents |  | 203 |  |  | 145 |  |  | 56 |
Other long-term investments |  | 1,117 |  |  | 731 |  |  | 717 |
Gross investment income |  | 17,198 |  |  | 16,226 |  |  | 15,738 |
Less: investment expenses |  | (763 | ) |  | (706 | ) |  | (909 | )
Net investment income |  | $ | 16,435 |  |  | $ | 15,520 |  |  | $ | 14,829 |
__________
(1) | Includes income on credit-linked notes which are reported on the same financial statement line items as related surplus notes, as conditions are met for right to offset.
The carrying value of non-income producing assets included $111 million in available-for-sale fixed maturities, $22 million in trading account assets supporting insurance liabilities, less than $1 million in other trading account assets and less than $1 million in other long-term investments as of December 31, 2017. Non-income producing assets represent investments that have not produced income for the twelve months preceding December 31, 2017. Realized Investment Gains (Losses), Net The following table sets forth “Realized investment gains (losses), net,” by investment type, for the periods indicated:
|  | Years Ended December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (in millions)
Fixed maturities |  | $ | 581 |  |  | $ | 666 |  |  | $ | 1,634 |
Equity securities |  | 1,066 |  |  | 376 |  |  | 451 |
Commercial mortgage and other loans |  | 70 |  |  | 55 |  |  | 37 |
Investment real estate |  | 12 |  |  | 15 |  |  | 40 |
Joint ventures and limited partnerships |  | (23 | ) |  | (94 | ) |  | (122 | )
Derivatives(1) |  | (1,275 | ) |  | 1,175 |  |  | 1,970 |
Other |  | 1 |  |  | 1 |  |  | 15 |
Realized investment gains (losses), net |  | $ | 432 |  |  | $ | 2,194 |  |  | $ | 4,025 |
__________
(1) | Includes the hedged items offset in qualifying fair value hedge accounting relationships.
Net Unrealized Gains (Losses) on Investments The following table sets forth net unrealized gains (losses) on investments, as of the dates indicated:
|  | December 31,
|  | 2017 |  | 2016 |  | 2015
|  | (in millions)
Fixed maturity securities, available-for-sale—with OTTI |  | $ | 286 |  |  | $ | 312 |  |  | $ | 234 |
Fixed maturity securities, available-for-sale—all other |  | 34,109 |  |  | 28,526 |  |  | 24,673 |
Equity securities, available-for-sale |  | 2,027 |  |  | 2,599 |  |  | 2,427 |
Derivatives designated as cash flow hedges(1) |  | (39 | ) |  | 1,316 |  |  | 1,165 |
Other investments(2) |  | 15 |  |  | (21 | ) |  | (25 | )
Net unrealized gains (losses) on investments |  | $ | 36,398 |  |  | $ | 32,732 |  |  | $ | 28,474 |
__________
(1) | See Note 21 for more information on cash flow hedges.
(2) | As of December 31, 2017, there were no net unrealized losses on held-to-maturity securities that were previously transferred from available-for-sale. Includes net unrealized gains on certain joint ventures that are strategic in nature and are included in “Other assets.”
Repurchase Agreements and Securities Lending In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions. The following table sets forth the composition of “Securities sold under agreements to repurchase,” as of the dates indicated:
| December 31, 2017 |  | December 31, 2016
| Remaining Contractual Maturities of the Agreements |  |  |  | Remaining Contractual Maturities of the Agreements |  |
| Overnight & Continuous |  | Up to 30 Days |  | Total |  | Overnight & Continuous |  | Up to 30 Days |  | Total
| (in millions) |  | (in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 911 |  |  | $ | 7,349 |  |  | $ | 8,260 |  |  | $ | 950 |  |  | $ | 6,417 |  |  | $ | 7,367 |
U.S. corporate public securities | 1 |  |  | 0 |  |  | 1 |  |  | 0 |  |  | 0 |  |  | 0 |
Foreign corporate public securities | 0 |  |  | 0 |  |  | 0 |  |  | 6 |  |  | 0 |  |  | 6 |
Residential mortgage-backed securities | 0 |  |  | 139 |  |  | 139 |  |  | 0 |  |  | 233 |  |  | 233 |
Equity securities | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |
Total securities sold under agreements to repurchase(1) | $ | 912 |  |  | $ | 7,488 |  |  | $ | 8,400 |  |  | $ | 956 |  |  | $ | 6,650 |  |  | $ | 7,606 |
__________
(1) | The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.
The following table sets forth the composition of “Cash collateral for loaned securities” which represents the liability to return cash collateral received for the following types of securities loaned, as of the dates indicated:
| December 31, 2017 |  | December 31, 2016
| Remaining Contractual Maturities of the Agreements |  |  |  | Remaining Contractual Maturities of the Agreements |  |
| Overnight & Continuous |  | Up to 30 Days |  | Total |  | Overnight & Continuous |  | Up to 30 Days |  | Total
| (in millions) |  | (in millions)
U.S. Treasury securities and obligations of U.S. government authorities and agencies | $ | 87 |  |  | $ | 35 |  |  | $ | 122 |  |  | $ | 9 |  |  | $ | 0 |  |  | $ | 9 |
Obligations of U.S. states and their political subdivisions | 103 |  |  | 0 |  |  | 103 |  |  | 18 |  |  | 0 |  |  | 18 |
Foreign government bonds | 335 |  |  | 0 |  |  | 335 |  |  | 279 |  |  | 0 |  |  | 279 |
U.S. corporate public securities | 2,961 |  |  | 0 |  |  | 2,961 |  |  | 2,731 |  |  | 0 |  |  | 2,731 |
Foreign corporate public securities | 655 |  |  | 0 |  |  | 655 |  |  | 786 |  |  | 0 |  |  | 786 |
Residential mortgage-backed securities | 0 |  |  | 0 |  |  | 0 |  |  | 55 |  |  | 74 |  |  | 129 |
Equity securities | 178 |  |  | 0 |  |  | 178 |  |  | 381 |  |  | 0 |  |  | 381 |
Total cash collateral for loaned securities(1) | $ | 4,319 |  |  | $ | 35 |  |  | $ | 4,354 |  |  | $ | 4,259 |  |  | $ | 74 |  |  | $ | 4,333 |
__________
(1) | The Company did not have agreements with remaining contractual maturities of thirty days or greater, as of the dates indicated.
Securities Pledged, Restricted Assets and Special Deposits The Company pledges as collateral investment securities it owns to unaffiliated parties through certain transactions, including securities lending, securities sold under agreements to repurchase, collateralized borrowings and postings of collateral with derivative counterparties. The following table sets forth the carrying value of investments pledged to third parties, as of the dates indicated:
|  | December 31,
|  | 2017 |  | 2016
|  | (in millions)
Fixed maturities |  | $ | 13,303 |  |  | $ | 11,393 |
Trading account assets supporting insurance liabilities |  | 369 |  |  | 477 |
Other trading account assets |  | 1 |  |  | 2 |
Separate account assets |  | 2,992 |  |  | 3,386 |
Equity securities |  | 171 |  |  | 368 |
Total securities pledged |  | $ | 16,836 |  |  | $ | 15,626 |
The following table sets forth the carrying amount of the associated liabilities supported by the pledged collateral, as of the dates indicated:
|  | December 31,
|  | 2017 |  | 2016
|  | (in millions)
Securities sold under agreements to repurchase |  | $ | 8,400 |  |  | $ | 7,606 |
Cash collateral for loaned securities |  | 4,354 |  |  | 4,333 |
Separate account liabilities |  | 3,064 |  |  | 3,462 |
Policyholders’ account balances(1) |  | 436 |  |  | 1,001 |
Total liabilities supported by the pledged collateral |  | $ | 16,254 |  |  | $ | 16,402 |
__________
(1) | Represents amounts supporting outstanding funding agreements.
In the normal course of its business activities, the Company accepts collateral that can be sold or repledged. The primary sources of this collateral are securities in customer accounts, securities purchased under agreements to resell and postings of collateral from OTC derivative counterparties. The fair value of this collateral was approximately $5,126 million as of December 31, 2017 (the largest components of which include $599 million of securities and $4,527 million of cash from OTC derivative counterparties) and $7,185 million as of December 31, 2016 (the largest components of which include $1,595 million of securities and $5,590 million of cash from OTC derivative counterparties). A portion of the aforementioned securities, for both periods, had either been sold or repledged. Assets of $73 million and $78 million at December 31, 2017 and 2016, respectively, were on deposit with governmental authorities or trustees, including certain restricted cash balances and securities. Restricted cash and securities of $45 million and $54 million at December 31, 2017 and 2016, respectively, were included in “Other assets.” Additionally, assets carried at $3.5 billion and $3.3 billion at December 31, 2017 and 2016, respectively, were held in a trust established for the benefit of certain policyholders related to a reinsurance agreement between two wholly-owned subsidiaries. Assets carried at $604 million and $605 million at December 31, 2017 and 2016, respectively, were held in voluntary trusts established primarily to fund guaranteed dividends to certain policyholders and to fund certain employee benefits. Securities restricted as to sale amounted to $59 million and $89 million as of December 31, 2017 and 2016, respectively. These amounts include member and activity-based stock associated with memberships in the Federal Home Loan Banks of New York and Boston.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=4738149 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2289146 + Details
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