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.

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.

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.