| Investments | 5. Investments Fixed Maturity and Equity Securities Available-for-Sale Fixed Maturity and Equity Securities Available-for-Sale by Sector The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”) (collectively, “Structured Securities”). March 31, 2017 December 31, 2016 Cost or Amortized Cost Gross Unrealized Estimated Fair Value Cost or Amortized Cost Gross Unrealized Estimated Fair Value Gains Temporary Losses OTTI Gains Temporary Losses OTTI (In millions) Fixed maturity securities: U.S. corporate $ 94,491 $ 7,337 $ 915 $ — $ 100,913 $ 94,558 $ 7,351 $ 1,056 $ — $ 100,853 U.S. government and agency 52,486 5,058 664 — 56,880 53,326 4,977 780 — 57,523 Foreign government 54,169 6,649 380 — 60,438 50,923 6,600 385 — 57,138 Foreign corporate 56,664 3,304 1,503 — 58,465 55,676 3,132 1,752 (1 ) 57,057 RMBS 36,785 1,280 484 (23 ) 37,604 36,293 1,244 554 (10 ) 36,993 State and political subdivision 14,555 1,768 96 2 16,225 14,566 1,733 122 1 16,176 ABS 13,819 105 112 3 13,809 13,920 101 141 3 13,877 CMBS 11,016 276 99 (1 ) 11,194 11,092 282 103 (1 ) 11,272 Total fixed maturity securities $ 333,985 $ 25,777 $ 4,253 $ (19 ) $ 355,528 $ 330,354 $ 25,420 $ 4,893 $ (8 ) $ 350,889 Equity securities: Common stock $ 2,174 $ 449 $ 11 $ — $ 2,612 $ 1,927 $ 488 $ 14 $ — $ 2,401 Non-redeemable preferred stock 745 43 23 — 765 817 25 49 — 793 Total equity securities $ 2,919 $ 492 $ 34 $ — $ 3,377 $ 2,744 $ 513 $ 63 $ — $ 3,194 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities with an estimated fair value of $1 million and $6 million , and unrealized gains (losses) of ($3) million and ($2) million , at March 31, 2017 and December 31, 2016 , respectively. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2017 : Due in One Due After Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 15,792 $ 69,241 $ 67,938 $ 119,394 $ 61,620 $ 333,985 Estimated fair value $ 15,902 $ 72,487 $ 70,860 $ 133,672 $ 62,607 $ 355,528 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: March 31, 2017 December 31, 2016 Less than 12 Months Equal to or Greater than 12 Months Less than 12 Months Equal to or Greater than 12 Months Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses (Dollars in millions) Fixed maturity securities: U.S. corporate $ 15,249 $ 570 $ 3,480 $ 345 $ 16,147 $ 656 $ 3,684 $ 400 U.S. government and agency 15,624 637 152 27 13,500 760 141 20 Foreign government 6,449 275 965 105 6,228 271 924 114 Foreign corporate 10,099 480 6,272 1,023 11,613 639 6,127 1,112 RMBS 12,886 356 2,154 105 12,943 403 2,618 141 State and political subdivision 2,215 87 93 11 2,636 114 85 9 ABS 2,054 19 2,184 96 2,702 33 2,789 111 CMBS 2,515 37 753 61 2,570 48 735 54 Total fixed maturity securities $ 67,091 $ 2,461 $ 16,053 $ 1,773 $ 68,339 $ 2,924 $ 17,103 $ 1,961 Equity securities: Common stock 256 10 $ 9 $ 1 $ 105 $ 14 $ 11 $ — Non-redeemable preferred stock 97 1 159 22 196 9 165 40 Total equity securities $ 353 $ 11 $ 168 $ 23 $ 301 $ 23 $ 176 $ 40 Total number of securities in an unrealized loss position 4,811 1,737 5,321 1,790 Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy, in order to evaluate whether such investments are other-than-temporarily impaired. Current Period Evaluation Based on the Company’s current evaluation of its AFS securities in an unrealized loss position in accordance with its impairment policy, and the Company’s current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company concluded that these securities were not other-than-temporarily impaired at March 31, 2017 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings, collateral valuation, interest rates and credit spreads, as well as a change in the Company’s intention to hold or sell a security that is in an unrealized loss position. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities decreased $651 million during the three months ended March 31, 2017 to $4.2 billion . The decrease in gross unrealized losses for the three months ended March 31, 2017 was primarily attributable to narrowing credit spreads and decreasing longer-term interest rates, and to a lesser extent, the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At March 31, 2017 , $182 million of the total $4.2 billion of gross unrealized losses were from 56 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. The change in gross unrealized losses on equity securities was not significant during the three months ended March 31, 2017 . Investment Grade Fixed Maturity Securities Of the $182 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $138 million , or 76% , were related to gross unrealized losses on 28 investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $182 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, $44 million , or 24% , were related to gross unrealized losses on 28 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to foreign and U.S. corporate securities (primarily industrial securities) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainties including concerns over lower oil prices in the energy sector. Management evaluates U.S. and foreign corporate securities based on factors such as expected cash flows and the financial condition and near-term and long-term prospects of the issuers. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2017 December 31, 2016 Carrying Value % of Carrying Value % of (Dollars in millions) Mortgage loans: Commercial $ 49,101 64.1 % $ 48,035 64.4 % Agricultural 14,754 19.3 14,456 19.4 Residential 12,271 16.1 11,696 15.7 Subtotal (1) 76,126 99.5 74,187 99.5 Valuation allowances (353 ) (0.5 ) (344 ) (0.5 ) Subtotal mortgage loans, net 75,773 99.0 73,843 99.0 Residential — FVO 639 0.8 566 0.8 Commercial mortgage loans held by CSEs — FVO 129 0.2 136 0.2 Total mortgage loans, net $ 76,541 100.0 % $ 74,545 100.0 % __________________ (1) Purchases of mortgage loans were $923 million and $292 million for the three months ended March 31, 2017 and 2016 , respectively. See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). I nformation on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential — FVO and commercial mortgage loans held by CSEs — FVO is presented in Note 7 . The Company elects the FVO for certain mortgage loans and related long-term debt that are managed on a total return basis. Mortgage Loans, Valuation Allowance and Impaired Loans by Portfolio Segment Mortgage loans by portfolio segment, by method of evaluation of credit loss, impaired mortgage loans including those modified in a troubled debt restructuring, and the related valuation allowances, were as follows at: Evaluated Individually for Credit Losses Evaluated Collectively for Credit Losses Impaired Loans Impaired Loans with a Valuation Allowance Impaired Loans without a Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Unpaid Principal Balance Recorded Recorded Valuation Carrying (In millions) March 31, 2017 Commercial $ — $ — $ — $ 12 $ 12 $ 49,089 $ 240 $ 12 Agricultural 15 13 1 4 4 14,737 44 16 Residential — — — 293 266 12,005 68 266 Total $ 15 $ 13 $ 1 $ 309 $ 282 $ 75,831 $ 352 $ 294 December 31, 2016 Commercial $ — $ — $ — $ 12 $ 12 $ 48,023 $ 234 $ 12 Agricultural 15 13 1 27 27 14,416 43 39 Residential — — — 266 242 11,454 66 242 Total $ 15 $ 13 $ 1 $ 305 $ 281 $ 73,893 $ 343 $ 293 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $12 million , $28 million and $254 million , respectively, for the three months ended March 31, 2017 , and $128 million , $60 million and $147 million , respectively, for the three months ended March 31, 2016 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2017 2016 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 234 $ 44 $ 66 $ 344 $ 217 $ 42 $ 59 $ 318 Provision (release) 6 1 6 13 64 — 4 68 Charge-offs, net of recoveries — — (4 ) (4 ) — (2 ) (3 ) (5 ) Balance, end of period $ 240 $ 45 $ 68 $ 353 $ 281 $ 40 $ 60 $ 381 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Total Debt Service Coverage Ratios % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) March 31, 2017 Loan-to-value ratios: Less than 65% $ 42,831 $ 1,802 $ 526 $ 45,159 92.0 % $ 45,892 92.2 % 65% to 75% 3,319 8 211 3,538 7.2 3,508 7.0 76% to 80% 146 — — 146 0.3 130 0.3 Greater than 80% 141 41 76 258 0.5 250 0.5 Total $ 46,437 $ 1,851 $ 813 $ 49,101 100 % $ 49,780 100 % December 31, 2016 Loan-to-value ratios: Less than 65% $ 41,811 $ 1,307 $ 874 $ 43,992 91.6 % $ 44,459 91.8 % 65% to 75% 3,335 — 221 3,556 7.4 3,488 7.2 76% to 80% 229 — — 229 0.5 215 0.5 Greater than 80% 142 41 75 258 0.5 250 0.5 Total $ 45,517 $ 1,348 $ 1,170 $ 48,035 100.0 % $ 48,412 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: March 31, 2017 December 31, 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 14,069 95.3 % $ 13,872 96.0 % 65% to 75% 621 4.2 479 3.3 76% to 80% 9 0.1 17 0.1 Greater than 80% 55 0.4 88 0.6 Total $ 14,754 100.0 % $ 14,456 100.0 % The estimated fair value of agricultural mortgage loans was $14.9 billion and $14.7 billion at March 31, 2017 and December 31, 2016 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: March 31, 2017 December 31, 2016 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 11,926 97.2 % $ 11,304 96.6 % Nonperforming 345 2.8 392 3.4 Total $ 12,271 100.0 % $ 11,696 100.0 % The estimated fair value of residential mortgage loans was $12.6 billion and $12.1 billion at March 31, 2017 and December 31, 2016 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2017 and December 31, 2016 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 (In millions) Commercial $ 5 $ 3 $ — $ 3 $ — $ — Agricultural 116 127 108 104 10 23 Residential 345 392 — 37 319 355 Total $ 466 $ 522 $ 108 $ 144 $ 329 $ 378 Mortgage Loans Modified in a Troubled Debt Restructuring During both the three months ended March 31, 2017 and 2016 , the Company did not have a significant amount of mortgage loans modified in a troubled debt restructuring. Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $11.1 billion and $12.2 billion at March 31, 2017 and December 31, 2016 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity and equity securities AFS and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2017 December 31, 2016 (In millions) Fixed maturity securities $ 21,334 $ 20,300 Fixed maturity securities with noncredit OTTI losses included in AOCI 19 8 Total fixed maturity securities 21,353 20,308 Equity securities 521 485 Derivatives 2,904 2,923 Other 196 23 Subtotal 24,974 23,739 Amounts allocated from: Future policy benefits (1,336 ) (1,114 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (3 ) (3 ) DAC, VOBA and DSI (1,481 ) (1,430 ) Policyholder dividend obligation (1,983 ) (1,931 ) Subtotal (4,803 ) (4,478 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (5 ) (1 ) Deferred income tax benefit (expense) (6,971 ) (6,623 ) Net unrealized investment gains (losses) 13,195 12,637 Net unrealized investment gains (losses) attributable to noncontrolling interests (6 ) (6 ) Net unrealized investment gains (losses) attributable to MetLife, Inc. $ 13,189 $ 12,631 The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 12,631 Fixed maturity securities on which noncredit OTTI losses have been recognized 11 Unrealized investment gains (losses) during the period 1,224 Unrealized investment gains (losses) relating to: Future policy benefits (222 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI — DAC, VOBA and DSI (51 ) Policyholder dividend obligation (52 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (4 ) Deferred income tax benefit (expense) (348 ) Net unrealized investment gains (losses) 13,189 Net unrealized investment gains (losses) attributable to noncontrolling interests — Balance, end of period $ 13,189 Change in net unrealized investment gains (losses) $ 558 Change in net unrealized investment gains (losses) attributable to noncontrolling interests — Change in net unrealized investment gains (losses) attributable to MetLife, Inc. $ 558 Concentrations of Credit Risk Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, were in fixed income securities of the Japanese government and its agencies with an estimated fair value of $26.2 billion and $24.9 billion at March 31, 2017 and December 31, 2016 , respectively. Securities Lending Elements of the securities lending program are presented below at: March 31, 2017 December 31, 2016 (In millions) Securities on loan: (1) Amortized cost $ 24,235 $ 24,692 Estimated fair value $ 25,951 $ 26,308 Cash collateral received from counterparties (2) $ 26,527 $ 26,755 Security collateral received from counterparties (3) $ 15 $ 46 Reinvestment portfolio — estimated fair value $ 26,726 $ 26,704 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: March 31, 2017 December 31, 2016 Remaining Tenor of Securities Lending Agreements Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 6,248 $ 7,153 $ 11,623 $ 25,024 $ 6,608 $ 8,403 $ 10,125 $ 25,136 Foreign government — 676 — 676 — 620 144 764 U.S. corporate — 512 — 512 — 523 — 523 Agency RMBS — 257 — 257 — — 274 274 Foreign corporate — 58 — 58 — 58 — 58 Total $ 6,248 $ 8,656 $ 11,623 $ 26,527 $ 6,608 $ 9,604 $ 10,543 $ 26,755 __________________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2017 was $6.1 billion , over 99% of which were U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, cash equivalents and U.S. corporate securities) and short-term investments, with 62% invested in short-term investments, agency RMBS, cash equivalents and U.S. government and agency securities, or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Repurchase Agreements Elements of the short-term repurchase agreements are presented below at: March 31, 2017 December 31, 2016 (In millions) Securities on loan: (1) Amortized cost $ 1,367 $ 98 Estimated fair value $ 1,432 $ 113 Cash collateral received from counterparties (2) $ 1,400 $ 102 Reinvestment portfolio — estimated fair value $ 1,409 $ 100 __________________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions and other liabilities. The cash collateral liability by loaned security type and remaining tenor of the agreements was as follows at: March 31, 2017 December 31, 2016 Remaining Tenor of Repurchase Agreements Remaining Tenor of Repurchase Agreements 1 Month or Less 1 to 6 Months Total 1 Month or Less 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: U.S. government and agency $ 1,305 $ — $ 1,305 $ 5 $ — $ 5 Foreign government and corporate 43 52 95 46 51 97 Total $ 1,348 $ 52 $ 1,400 $ 51 $ 51 $ 102 The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. government and agency securities and U.S. corporate securities) and short-term investments, with 65% invested in short-term investments, agency RMBS, U.S. government and agency securities and cash equivalents, or held in cash. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value at: March 31, 2017 December 31, 2016 (In millions) Invested assets on deposit (regulatory deposits) $ 9,710 $ 9,573 Invested assets held in trust (collateral financing arrangements and reinsurance agreements) 10,882 11,111 Invested assets pledged as collateral (1) 28,100 27,431 Total invested assets on deposit, held in trust and pledged as collateral $ 48,692 $ 48,115 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Notes 4 and 12 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report), collateral financing arrangements (see Note 13 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report) and derivative transactions (see Note 6 ). See Note 14 for subsequent information on the collateral financing arrangement termination. See “— Securities Lending” and “— Repurchase Agreements” for information regarding securities on loan and Note 4 for information regarding investments designated to the closed block. Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the pr imary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment. The following table presents the total assets and total liabilities re lating to VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: March 31, 2017 December 31, 2016 Total Total Total Total (In millions) MRSC (collateral financing arrangement) (1) $ 3,423 $ — $ 3,422 $ — CSEs (assets (primarily loans) and liabilities (primarily debt)) (2) 142 32 146 35 Other investments (3) 50 — 50 — Total $ 3,615 $ 32 $ 3,618 $ 35 __________________ (1) See Note 13 of the Notes to the Consolidated Financial Statements included in the 2016 Annual Report for a description of the MetLife Reinsurance Company of South Carolina (“MRSC”) collateral financing arrangement. See Note 14. The assets consist of fixed maturity securities, short-term investments and cash equivalents. (2) The Company consolidates entities that are structured as CMBS and as collateralized debt obligations. The assets of these entities can only be used to settle their respective liabilities, and under no circumstances is the Company liable for any principal or interest shortfalls should any arise. (3) Other investments is comprised of other invested assets and other limited partnership interests. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at: March 31, 2017 December 31, 2016 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 60,301 $ 60,301 $ 59,773 $ 59,773 U.S. and foreign corporate 2,926 2,926 2,845 2,845 Other limited partnership interests 5,938 11,408 6,208 11,282 Other invested assets 2,262 2,783 2,261 2,837 Other (3) 375 394 252 271 Total $ 71,802 $ 77,812 $ 71,339 $ 77,008 __________________ (1) The maximum exposure to loss relating to fixed maturity securities AFS and equity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests, mortgage loans and real estate joint ventures is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $139 million and $150 million at March 31, 2017 and December 31, 2016 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. (3) Other is comprised of mortgage loans, common stock, non-redeemable preferred stock and real estate joint ventures. As described in Note 13 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during both the three months ended March 31, 2017 and 2016 . Net Investment Income The components of net investment income were as follows: Three Months 2017 2016 (In millions) Investment income: Fixed maturity securities $ 3,420 $ 3,654 Equity securities 34 37 FVO securities — FVO general account securities (1) 29 6 Mortgage loans 845 807 Policy loans 145 149 Real estate and real estate joint ventures 165 157 Other limited partnership interests 297 46 Cash, cash equivalents and short-term investments 59 40 Operating joint ventures 2 12 Other 79 41 Subtotal 5,075 4,949 Less: Investment expenses 297 296 Subtotal, net 4,778 4,653 FVO securities — FVO contractholder-directed unit-linked investments (1) 416 (97 ) FVO CSEs — interest income — commercial mortgage loans 2 3 Subtotal 418 (94 ) Net investment income $ 5,196 $ 4,559 __________________ (1) Changes in estimated fair value subsequent to purchase for securities still held as of the end of the respective periods included in net investment income were $340 million and ($186) million for the three months ended March 31, 2017 and 2016 , respectively. The amount for the three months ended March 31, 2016 included ($4) million related to actively traded securities. FVO securities are primarily comprised of securities for which the FVO has been elected. FVO securities are primarily comprised of contractholder-directed investments supporting unit-linked variable annuity type liabilities which do not qualify as separate accounts. The remainder is comprised of FVO general account securities and FVO securities held by CSEs. The Company previously maintained a trading securities portfolio, principally invested in fixed maturity securities. In June 2016, the Company commenced a reinvestment of this portfolio into other asset classes and, at March 31, 2017 , the Company no longer held any actively traded securities. See “— Variable Interest Entities” for discussion of CSEs. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months 2017 2016 (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized — by sector and industry: U.S. and foreign corporate securities — by industry: Industrial $ — $ (71 ) Communications — (3 ) Total U.S. and foreign corporate securities — (74 ) RMBS — (4 ) OTTI losses on fixed maturity securities recognized in earnings — (78 ) Fixed maturity securities — net gains (losses) on sales and disposals (40 ) 98 Total gains (losses) on fixed maturity securities (40 ) 20 Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock (7 ) (51 ) Non-redeemable preferred stock (1 ) — OTTI losses on equity securities recognized in earnings (8 ) (51 ) Equity securities — net gains (losses) on sales and disposals 43 6 Total gains (losses) on equity securities 35 (45 ) Mortgage loans (15 ) (64 ) Real estate and real estate joint ventures (1 ) 2 Other limited partnership interests (17 ) (27 ) Other (58 ) (18 ) Subtotal (96 ) (132 ) FVO CSEs: Commercial mortgage loans (1 ) 1 Securities — 1 Long-term debt — related to commercial mortgage loans 1 — Non-investment portfolio gains (losses) 104 145 Subtotal 104 147 Total net investment gains (losses) $ 8 $ 15 See “— Variable Interest Entities” for discussion of CSEs. Gains (losses) from foreign currency transactions included within net investment gains (losses) were $49 million and $79 million for the three months ended March 31, 2017 and 2016 , respectively. Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown in the table below. Three Months 2017 2016 2017 2016 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 16,437 $ 31,994 $ 120 $ 59 Gross investment gains $ 150 $ 433 $ 47 $ 11 Gross investment losses (190 ) (335 ) (4 ) (5 ) OTTI losses — (78 ) (8 ) (51 ) Net investment gains (losses) $ (40 ) $ 20 $ 35 $ (45 ) Credit Loss Rollforward The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held for which a portion of the OTTI loss was recognized in other comprehensive income (loss) (“OCI”): Three Months 2017 2016 (In millions) Balance, beginning of period $ 215 $ 277 Additions: Additional impairments — credit loss OTTI on securities previously impaired — 2 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (36 ) (9 ) Balance, end of period $ 179 $ 270 |
