Investments | INVESTMENTS Fixed Maturities and Equity Securities The following tables provide information relating to fixed maturities and equity securities (excluding investments classified as trading) as of the dates indicated: June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 14,196 $ 3,635 $ 20 $ 17,811 $ 0 Obligations of U.S. states and their political subdivisions 7,378 614 106 7,886 0 Foreign government bonds 68,681 10,342 162 78,861 (1 ) Corporate securities(1) 144,539 14,607 2,572 156,574 (18 ) Asset-backed securities(2) 10,948 387 100 11,235 (565 ) Commercial mortgage-backed securities 11,918 284 50 12,152 (1 ) Residential mortgage-backed securities(3) 5,160 391 7 5,544 (4 ) Total fixed maturities, available-for-sale(1) $ 262,820 $ 30,260 $ 3,017 $ 290,063 $ (589 ) Equity securities, available-for-sale $ 6,870 $ 3,119 $ 88 $ 9,901 June 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 804 $ 160 $ 0 $ 964 Corporate securities(5) 696 60 2 754 Commercial mortgage-backed securities 59 2 0 61 Residential mortgage-backed securities(3) 837 58 0 895 Total fixed maturities, held-to-maturity(5) $ 2,396 $ 280 $ 2 $ 2,674 __________ (1) Excludes notes with amortized cost of $693 million (fair value, $695 million ) which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by 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 other-than-temporary impairment losses in Accumulated Other Comprehensive Income (“AOCI”), which were not included in earnings. Amount excludes $944 million of net unrealized gains on impaired available-for-sale securities and less than $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 $3,850 million (fair value, $4,069 million ) which have been offset with the associated payables under a netting agreement. December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-than- temporary Impairments in AOCI(4) (in millions) Fixed maturities, available-for-sale U.S. Treasury securities and obligations of U.S. government authorities and agencies $ 15,807 $ 4,321 $ 5 $ 20,123 $ 0 Obligations of U.S. states and their political subdivisions 5,720 814 3 6,531 0 Foreign government bonds 69,894 11,164 117 80,941 (1 ) Corporate securities(1) 143,631 17,799 1,054 160,376 (6 ) Asset-backed securities(2) 10,966 353 134 11,185 (592 ) Commercial mortgage-backed securities 13,486 430 39 13,877 (1 ) Residential mortgage-backed securities(3) 5,612 448 3 6,057 (5 ) Total fixed maturities, available-for-sale(1) $ 265,116 $ 35,329 $ 1,355 $ 299,090 $ (605 ) Equity securities, available-for-sale $ 6,921 $ 3,023 $ 83 $ 9,861 December 31, 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 821 $ 184 $ 0 $ 1,005 Corporate securities(5) 713 68 1 780 Commercial mortgage-backed securities 78 7 0 85 Residential mortgage-backed securities(3) 963 69 0 1,032 Total fixed maturities, held-to-maturity(5) $ 2,575 $ 328 $ 1 $ 2,902 __________ (1) Excludes notes with amortized cost of $385 million (fair value, $385 million ) which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by 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 other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $954 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 $3,588 million (fair value, $3,953 million ) which have been offset with the associated payables under a netting agreement. The amortized cost and fair value of fixed maturities by contractual maturities at June 30, 2015 , are as follows: Available-for-Sale Held-to-Maturity Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Due in one year or less $ 11,624 $ 12,378 $ 0 $ 0 Due after one year through five years 44,963 50,198 72 77 Due after five years through ten years 56,728 62,754 167 175 Due after ten years(1) 121,479 135,802 1,261 1,466 Asset-backed securities 10,948 11,235 0 0 Commercial mortgage-backed securities 11,918 12,152 59 61 Residential mortgage-backed securities 5,160 5,544 837 895 Total $ 262,820 $ 290,063 $ 2,396 $ 2,674 __________ (1) Excludes available-for-sale notes with amortized cost of $693 million (fair value, $695 million ) and held-to-maturity notes with amortized cost of $3,850 million (fair value, $4,069 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 are not due at a single maturity date. The following table depicts the sources of fixed maturity proceeds and related investment gains (losses), as well as losses on impairments of both fixed maturities and equity securities: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities, available-for-sale Proceeds from sales $ 7,626 $ 7,460 $ 15,044 $ 16,038 Proceeds from maturities/repayments 4,618 5,847 9,713 10,706 Gross investment gains from sales, prepayments and maturities 442 476 974 901 Gross investment losses from sales and maturities (42) (83 ) (97 ) (235 ) Fixed maturities, held-to-maturity Gross investment gains from prepayments $ 0 $ 0 $ 0 $ 0 Proceeds from maturities/repayments 63 138 123 232 Equity securities, available-for-sale Proceeds from sales $ 1,564 $ 1,316 $ 2,553 $ 2,481 Gross investment gains from sales 273 198 427 331 Gross investment losses from sales (35 ) (22 ) (61 ) (60 ) Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(1) $ (29 ) $ (26 ) $ (37 ) $ (42 ) Writedowns for impairments on equity securities (11 ) (7 ) (17 ) (17 ) __________ (1) Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” 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. As discussed in Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , a portion of certain other-than-temporary impairment (“OTTI”) losses on fixed maturity securities is recognized in “Other comprehensive income (loss)” (“OCI”). For these securities, the net amount recognized in earnings (“credit loss impairments”) represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in OCI. The following table sets forth the amount of pre-tax credit loss impairments on fixed maturity securities held by the Company as of the dates indicated, for which a portion of the OTTI loss was recognized in OCI, and the corresponding changes in such amounts: Three Months Ended Six Months Ended (in millions) Balance, beginning of period $ 773 $ 781 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (15 ) (28 ) Credit loss impairments previously recognized on securities impaired to fair value during the period(1) (12 ) (13 ) Credit loss impairments recognized in the current period on securities not previously impaired 0 3 Additional credit loss impairments recognized in the current period on securities previously impaired 2 2 Increases due to the passage of time on previously recorded credit losses 7 13 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (4 ) (7 ) Balance, end of period $ 751 $ 751 Three Months Ended Six Months Ended (in millions) Balance, beginning of period $ 838 $ 968 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (59 ) (199 ) Credit loss impairments previously recognized on securities impaired to fair value during the period(1) 0 0 Credit loss impairments recognized in the current period on securities not previously impaired 10 12 Additional credit loss impairments recognized in the current period on securities previously impaired 0 4 Increases due to the passage of time on previously recorded credit losses 9 18 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (4 ) (9 ) Balance, end of period $ 794 $ 794 __________ (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: June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 423 $ 422 $ 196 $ 196 Fixed maturities: Corporate securities 12,251 12,566 11,922 12,439 Commercial mortgage-backed securities 2,055 2,078 2,505 2,546 Residential mortgage-backed securities(1) 1,488 1,508 1,640 1,676 Asset-backed securities(2) 1,417 1,440 1,180 1,198 Foreign government bonds 635 647 621 650 U.S. government authorities and agencies and obligations of U.S. states 290 333 303 372 Total fixed maturities 18,136 18,572 18,171 18,881 Equity securities 974 1,273 896 1,186 Total trading account assets supporting insurance liabilities $ 19,533 $ 20,267 $ 19,263 $ 20,263 __________ (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 $(276) million and $201 million during the three months ended June 30, 2015 and 2014 , respectively, and $(266) million and $267 million during the six months ended June 30, 2015 and 2014 , respectively. Other Trading Account Assets The following table sets forth the composition of the “Other trading account assets” as of the dates indicated: June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 61 $ 62 $ 27 $ 27 Fixed maturities 9,487 9,475 8,306 8,282 Equity securities 1,027 1,135 992 1,105 Other 12 16 7 11 Subtotal $ 10,587 10,688 $ 9,332 9,425 Derivative instruments 2,061 1,449 Total other trading account assets $ 12,749 $ 10,874 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 $61 million and $9 million during the three months ended June 30, 2015 and 2014 , respectively, and $9 million and $35 million during the six months ended June 30, 2015 and 2014 , respectively. Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments on an ongoing basis, and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer. As of both June 30, 2015 and December 31, 2014 , 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, certain U.S. government agencies and certain securities guaranteed by the U.S. government, as well as the securities disclosed below . June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in Japanese government and government agency securities: Fixed maturities, available-for-sale $ 50,735 $ 57,562 $ 52,703 $ 60,379 Fixed maturities, held-to-maturity 783 940 801 981 Trading account assets supporting insurance liabilities 475 482 457 470 Other trading account assets 35 35 36 36 Short-term investments 0 0 0 0 Cash equivalents 163 163 0 0 Total $ 52,191 $ 59,182 $ 53,997 $ 61,866 June 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Investments in South Korean government and government agency securities: Fixed maturities, available-for-sale $ 7,207 $ 8,815 $ 6,927 $ 8,438 Fixed maturities, held-to-maturity 0 0 0 0 Trading account assets supporting insurance liabilities 44 45 49 50 Other trading account assets 0 0 0 0 Short-term investments 0 0 0 0 Cash equivalents 0 0 0 0 Total $ 7,251 $ 8,860 $ 6,976 $ 8,488 Commercial Mortgage and Other Loans The Company’s commercial mortgage and other loans are comprised as follows, as of the dates indicated: June 30, 2015 December 31, 2014 Amount (in millions) % of Total Amount (in millions) % of Total Commercial mortgage and agricultural property loans by property type: Office $ 10,905 23.2 % $ 9,612 21.5 % Retail 8,810 18.8 8,765 19.6 Apartments/Multi-Family 11,098 23.6 10,369 23.2 Industrial 7,542 16.1 7,628 16.9 Hospitality 2,451 5.2 2,270 5.1 Other 3,587 7.6 3,659 8.2 Total commercial mortgage loans 44,393 94.5 42,303 94.5 Agricultural property loans 2,604 5.5 2,445 5.5 Total commercial mortgage and agricultural property loans by property type 46,997 100.0 % 44,748 100.0 % Valuation allowance (97 ) (105 ) Total net commercial mortgage and agricultural property loans by property type 46,900 44,643 Other loans: Uncollateralized loans 1,038 1,092 Residential property loans 327 392 Other collateralized loans 315 319 Total other loans 1,680 1,803 Valuation allowance (11 ) (14 ) Total net other loans 1,669 1,789 Total commercial mortgage and other loans(1) $ 48,569 $ 46,432 __________ (1) Includes loans held at fair value. The commercial mortgage and agricultural property loans are geographically dispersed throughout the United States (with the largest concentrations in California (26%) , New York (9%) and Texas (9%) ) and Asia at June 30, 2015 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: June 30, 2015 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 104 $ 1 $ 5 $ 0 $ 9 $ 119 Addition to (release of) allowance for losses (8 ) 0 (2 ) 0 0 (10 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange 0 0 0 0 (1 ) (1 ) Total ending balance $ 96 $ 1 $ 3 $ 0 $ 8 $ 108 December 31, 2014 Commercial Mortgage Loans Agricultural Property Loans Residential Property Loans Other Collateralized Loans Uncollateralized Loans Total (in millions) Allowance for credit losses, beginning of year $ 188 $ 7 $ 6 $ 3 $ 12 $ 216 Addition to (release of) allowance for losses (77 ) (6 ) (1 ) (1 ) (2 ) (87 ) Charge-offs, net of recoveries (7 ) 0 0 (2 ) 0 (9 ) Change in foreign exchange 0 0 0 0 (1 ) (1 ) Total ending balance $ 104 $ 1 $ 5 $ 0 $ 9 $ 119 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: June 30, 2015 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 $ 3 $ 0 $ 0 $ 0 $ 0 $ 3 Collectively evaluated for impairment 93 1 3 0 8 105 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 96 $ 1 $ 3 $ 0 $ 8 $ 108 Recorded Investment(1): Gross of reserves: individually evaluated for impairment $ 254 $ 4 $ 0 $ 1 $ 2 $ 261 Gross of reserves: collectively evaluated for impairment 44,139 2,600 327 314 1,036 48,416 Gross of reserves: loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance, gross of reserves $ 44,393 $ 2,604 $ 327 $ 315 $ 1,038 $ 48,677 __________ (1) Recorded investment reflects the balance sheet carrying value gross of related allowance. December 31, 2014(1) 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 $ 8 $ 0 $ 0 $ 0 $ 0 $ 8 Collectively evaluated for impairment 96 1 5 0 9 111 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 104 $ 1 $ 5 $ 0 $ 9 $ 119 Recorded Investment(2): Gross of reserves: individually evaluated for impairment $ 247 $ 4 $ 0 $ 1 $ 2 $ 254 Gross of reserves: collectively evaluated for impairment 42,056 2,441 392 318 1,090 46,297 Gross of reserves: loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance, gross of reserves $ 42,303 $ 2,445 $ 392 $ 319 $ 1,092 $ 46,551 __________ (1) Prior period’s amounts are presented on a basis consistent with current period presentation. (2) Recorded investment reflects the balance sheet carrying value gross of related allowance. Impaired loans include those loans for which it is probable that all amounts due will not be collected according to the contractual terms of the loan agreement. Impaired commercial mortgage and other loans identified in management’s specific review of probable loan losses and the related allowance for losses, as of the dates indicated, are as follows: June 30, 2015 Recorded Investment(1) Unpaid Principal Balance Related Allowance Average Recorded Investment Before Allowance(2) Interest Income Recognized(3) (in millions) With no related allowance recorded: Commercial mortgage loans $ 0 $ 0 $ 0 $ 0 $ 0 Agricultural property loans 0 0 0 0 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 0 0 Uncollateralized loans 0 1 0 0 0 Total with no related allowance $ 0 $ 1 $ 0 $ 0 $ 0 With an allowance recorded: Commercial mortgage loans $ 55 $ 55 $ 3 $ 79 $ 1 Agricultural property loans 0 0 0 0 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 0 0 Uncollateralized loans 0 0 0 0 0 Total with related allowance $ 55 $ 55 $ 3 $ 79 $ 1 Total: Commercial mortgage loans $ 55 $ 55 $ 3 $ 79 $ 1 Agricultural property loans 0 0 0 0 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 0 0 Uncollateralized loans 0 1 0 0 0 Total $ 55 $ 56 $ 3 $ 79 $ 1 __________ (1) Recorded investment reflects the balance sheet carrying value gross of related allowance. (2) Average recorded investment represents the average of the beginning-of-period and end-of-period balances. (3) The interest income recognized is for the year-to-date income regardless of when the impairments occurred. December 31, 2014 Recorded Investment(1) Unpaid Principal Balance Related Allowance Average Recorded Investment Before Allowance(2) Interest Income Recognized(3) (in millions) With no related allowance recorded: Commercial mortgage loans $ 8 $ 8 $ 0 $ 16 $ 1 Agricultural property loans 4 4 0 4 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 0 0 Uncollateralized loans 0 1 0 0 0 Total with no related allowance $ 12 $ 13 $ 0 $ 20 $ 1 With an allowance recorded: Commercial mortgage loans $ 76 $ 76 $ 8 $ 82 $ 6 Agricultural property loans 0 0 0 0 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 3 1 Uncollateralized loans 0 0 0 0 0 Total with related allowance $ 76 $ 76 $ 8 $ 85 $ 7 Total: Commercial mortgage loans $ 84 $ 84 $ 8 $ 98 $ 7 Agricultural property loans 4 4 0 4 0 Residential property loans 0 0 0 0 0 Other collateralized loans 0 0 0 3 1 Uncollateralized loans 0 1 0 0 0 Total $ 88 $ 89 $ 8 $ 105 $ 8 __________ (1) Recorded investment reflects the balance sheet carrying value gross of related allowance. (2) Average recorded investment represents the average of the beginning-of-period and all subsequent quarterly end-of-period balances. (3) The interest income recognized is for the year-to-date income regardless of when the impairments occurred. The net carrying value of commercial and other loans held for sale by the Company as of June 30, 2015 and December 31, 2014 , was $391 million and $380 million , respectively. In all of these transactions, the Company pre-arranges that it will sell the loan to an investor. As of both June 30, 2015 and December 31, 2014 , all of the Company’s commercial and other loans held for sale were collateralized, with collateral primarily consisting of apartment complexes. The following tables set forth certain key credit quality indicators as of June 30, 2015 , based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans Debt Service Coverage Ratio—June 30, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 23,344 $ 429 $ 275 $ 24,048 60%-69.99% 13,434 444 79 13,957 70%-79.99% 5,440 448 60 5,948 Greater than 80% 135 139 166 440 Total commercial mortgage loans $ 42,353 $ 1,460 $ 580 $ 44,393 Agricultural property loans Debt Service Coverage Ratio—June 30, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,290 $ 148 $ 2 $ 2,440 60%-69.99% 164 0 0 164 70%-79.99% 0 0 0 0 Greater than 80% 0 0 0 0 Total agricultural property loans $ 2,454 $ 148 $ 2 $ 2,604 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—June 30, 2015 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 25,634 $ 577 $ 277 $ 26,488 60%-69.99% 13,598 444 79 14,121 70%-79.99% 5,440 448 60 5,948 Greater than 80% 135 139 166 440 Total commercial mortgage and agricultural property loans $ 44,807 $ 1,608 $ 582 $ 46,997 The following tables set forth certain key credit quality indicators as of December 31, 2014 , based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans Debt Service Coverage Ratio—December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 22,557 $ 637 $ 207 $ 23,401 60%-69.99% 12,563 500 237 13,300 70%-79.99% 4,354 664 21 5,039 Greater than 80% 234 127 202 563 Total commercial mortgage loans $ 39,708 $ 1,928 $ 667 $ 42,303 Agricultural property loans Debt Service Coverage Ratio—December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 2,152 $ 140 $ 2 $ 2,294 60%-69.99% 151 0 0 151 70%-79.99% 0 0 0 0 Greater than 80% 0 0 0 0 Total agricultural property loans $ 2,303 $ 140 $ 2 $ 2,445 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—December 31, 2014 Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total (in millions) Loan-to-Value Ratio 0%-59.99% $ 24,709 $ 777 $ 209 $ 25,695 60%-69.99% 12,714 500 237 13,451 70%-79.99% 4,354 664 21 5,039 Greater than 80% 234 127 202 563 Total commercial mortgage and agricultural property loans $ 42,011 $ 2,068 $ 669 $ 44,748 The following tables provide an aging of past due commercial mortgage and other loans as of the dates indicated, based upon the recorded investment gross of allowance for credit losses, as well as the amount of commercial mortgage loans on nonaccrual status as of the dates indicated. June 30, 2015 Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days - Accruing Greater Than 90 Days - Not Accruing Total Past Due Total Commercial Mortgage and Other Loans Non Accrual Status (in millions) Commercial mortgage loans $ 44,344 $ 49 $ 0 $ 0 $ 0 $ 49 $ 44,393 $ 103 Agricultural property loans 2,603 0 0 0 1 1 2,604 1 Residential property loans 315 4 1 0 7 12 327 7 Other collateralized loans 314 0 0 0 1 1 315 1 Uncollateralized loans 1,038 0 0 0 0 0 1,038 0 Total $ 48,614 $ 53 $ 1 $ 0 $ 9 $ 63 $ 48,677 $ 112 December 31, 2014 Current 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days - Accruing Greater Than 90 Days - Not Accruing Total Past Due Total Commercial Mortgage and Other Loans Non Accrual Status (in millions) Commercial mortgage loans $ 42,239 $ 62 $ 0 $ 0 $ 2 $ 64 $ 42,303 $ 101 Agricultural property loans 2,443 0 1 0 1 2 2,445 1 Residential property loans 375 7 2 0 8 17 392 8 Other collateralized loans 319 0 0 0 0 0 319 0 Uncollateralized loans 1,092 0 0 0 0 0 1,092 0 Total $ 46,468 $ 69 $ 3 $ 0 $ 11 $ 83 $ 46,551 $ 110 See Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 , for further discussion regarding nonaccrual status loans. For both the three and six months ended June 30, 2015 , there were $53 million of commercial mortgage and other loans acquired, other than those through direct origination and there were $18 million of commercial mortgage and other loans sold, other than those classified as held-for-sale. For both the three and six months ended June 30, 2014 , there were no commercial mortgage and other loans acquired, other than those through direct origination, no r were there any commercial mortgage and other loans sold, 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 June 30, 2015 and December 31, 2014 , the Company had no significant commitments to fund to borrowers that have been involved in a troubled debt restructuring. During the three months and six months ended June 30, 2015 and 2014 , there were no new troubled debt restructurings related to commercial mortgage loans, and no payment defaults on commercial mortgage and other loans that were modified as a troubled debt restructuring within the 12 months preceding each respective period. For additional information relating to the accounting for troubled debt restructurings, see Note 2 to the Company’s Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2014 . As of June 30, 2015 and December 31, 2014 , the Company did not have any foreclosed residential real estate property. Net Investment Income Net investment income for the three and six months ended June 30, 2015 and 2014 , was from the following sources: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities, available-for-sale(1) $ 2,611 $ 2,669 $ 5,194 $ 5,286 Fixed maturities, held-to-maturity(1) 51 42 100 82 Equity securities, available-for-sale 81 105 177 189 Trading account assets 294 259 581 517 Commercial mortgage and other loans 556 522 1,100 1,020 Policy loans 154 158 308 312 Short-term investments and cash equivalents 11 8 24 17 Other long-term investments 137 175 381 517 Gross investment income 3,895 3,938 7,865 7,940 Less: investment expenses (224 ) (184 ) (425 ) (348 ) Net investment income $ 3,671 $ 3,754 $ 7,440 $ 7,592 __________ (1) Includes income on credit-linked notes which are reported on the same financial line item as related surplus notes, as conditions are met for right-of-offset. The Company had $238 million and $218 million of investments in low-income housing tax credit limited partnerships and has committed to fund $52 million and $67 million as of June 30, 2015 and December 31, 2014 , respectively. Generally, the Company uses the equity method of accounting for these investments. The Company recognized $1 million and $6 million of equity method losses and utilized $0 million and $8 million of tax credits associated with these investments for the three months ended June 30, 2015 and 2014 , respectively. The company recognized $3 million and $8 million of equity method losses and utilized $9 million and $15 million of tax credits associated with these investments for the six months ended June 30, 2015 and 2014 , respectively. There were no impairment losses from forfeiture or ineligibility of tax credits. Realized Investment Gains (Losses), Net Realized investment gains (losses), net, for the three and six months ended June 30, 2015 and 2014 , were from the following sources: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities $ 371 $ 367 $ 840 $ 624 Equity securities 227 169 348 254 Commercial mortgage and other loans 20 8 31 16 Investment real estate 14 0 38 0 Joint ventures and limited partnerships (4 ) 0 (9 ) 1 Derivatives(1) (503 ) 60 1,235 (85 ) Other 4 5 7 7 Realized investment gains (losses), net $ 129 $ 609 $ 2,490 $ 817 __________ (1) Includes the offset of hedged items in qualifying effective hedge relationships prior to maturity or termination. Net Unrealized Gains (Losses) on Investments by Asset Class The table below presents net unrealized gains (losses) on investments by asset class as of the dates indicated: June 30, December 31, (in millions) Fixed maturity securities on which an OTTI loss has been recognized $ 355 $ 349 Fixed maturity securities, available-for-sale—all other 26,888 33,625 Equity securities, available-for-sale 3,031 2,940 Derivatives designated as cash flow hedges(1) 702 206 Other investments(2) (10 ) (7 ) Net unrealized gains (losses) on investments $ 30,966 $ 37,113 __________ (1) See Note 14 for more information on cash flow hedges. (2) As of June 30, 2015 , there were $0 million of 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.” Duration of Gross Unrealized Loss Positions for Fixed Maturities and Equity Securities The following table shows the fair value and gross unrealized losses aggregated by investment category and length of time that individual fixed maturity securities and equity securities have been in a continuous unrealized loss position, as of the dates indicated: June 30, 2015 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 $ 1,563 $ 20 $ 0 $ 0 $ 1,563 $ 20 Obligations of U.S. states and their political subdivisions 3,060 105 8 1 3,068 106 Foreign government bonds 2,498 72 1,314 90 3,812 162 Corporate securities 36,276 1,984 5,642 588 41,918 2,572 Commercial mortgage-backed securities 2,983 38 550 12 3,533 50 Asset-backed securities 2,535 7 2,714 93 5,249 100 Residential mortgage-backed securities 529 4 122 3 651 7 Total $ 49,444 $ 2,230 $ 10,350 $ 787 $ 59,794 $ 3,017 Equity securities, available-for-sale $ 1,855 $ 87 $ 6 $ 1 $ 1,861 $ 88 __________ (1) Includes $84 million of fair value and $2 million of gross unrealized losses at June 30, 2015 , on securities classified as held-to-maturity, a portion of which is not reflected in AOCI. December 31, 2014 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 $ 2,145 $ 5 $ 10 $ 0 $ 2, |