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: September 30, 2015 Amortized 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 $ 13,808 $ 3,977 $ 4 $ 17,781 $ 0 Obligations of U.S. states and their political subdivisions 7,826 674 61 8,439 0 Foreign government bonds 70,652 11,318 164 81,806 1 Corporate securities(1) 144,812 13,968 3,064 155,716 (5 ) Asset-backed securities(2) 10,268 244 105 10,407 (465 ) Commercial mortgage-backed securities 10,985 358 16 11,327 (1 ) Residential mortgage-backed securities(3) 4,930 375 3 5,302 (4 ) Total fixed maturities, available-for-sale(1) $ 263,281 $ 30,914 $ 3,417 $ 290,778 $ (474 ) Equity securities, available-for-sale $ 6,755 $ 2,530 $ 176 $ 9,109 September 30, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in millions) Fixed maturities, held-to-maturity Foreign government bonds $ 820 $ 175 $ 0 $ 995 Corporate securities(5) 708 59 1 766 Commercial mortgage-backed securities 46 1 0 47 Residential mortgage-backed securities(3) 806 55 0 861 Total fixed maturities, held-to-maturity(5) $ 2,380 $ 290 $ 1 $ 2,669 __________ (1) Excludes notes with amortized cost of $693 million (fair value, $686 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 (“OTTI”) losses in Accumulated Other Comprehensive Income (“AOCI”), which were not included in earnings. Amount excludes $727 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, $4,131 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 OTTI 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 OTTI 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 September 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 $ 10,199 $ 10,904 $ 0 $ 0 Due after one year through five years 45,200 50,066 74 78 Due after five years through ten years 57,392 62,844 170 179 Due after ten years(1) 124,307 139,928 1,284 1,504 Asset-backed securities 10,268 10,407 0 0 Commercial mortgage-backed securities 10,985 11,327 46 47 Residential mortgage-backed securities 4,930 5,302 806 861 Total $ 263,281 $ 290,778 $ 2,380 $ 2,669 __________ (1) Excludes available-for-sale notes with amortized cost of $693 million (fair value, $686 million ) and held-to-maturity notes with amortized cost of $3,850 million (fair value, $4,131 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 Nine Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities, available-for-sale Proceeds from sales $ 6,016 $ 5,859 $ 21,059 $ 21,897 Proceeds from maturities/repayments 4,496 5,874 14,209 16,580 Gross investment gains from sales, prepayments and maturities 427 294 1,401 1,195 Gross investment losses from sales and maturities (73) (125 ) (170 ) (360 ) Fixed maturities, held-to-maturity Gross investment gains from prepayments $ 0 $ 0 $ 0 $ 0 Proceeds from maturities/repayments 58 145 181 377 Equity securities, available-for-sale Proceeds from sales $ 1,181 $ 1,456 $ 3,734 $ 3,937 Gross investment gains from sales 167 224 594 555 Gross investment losses from sales (61 ) (33 ) (123 ) (92 ) Fixed maturity and equity security impairments Net writedowns for other-than-temporary impairment losses on fixed maturities recognized in earnings(1) $ (73 ) $ (5 ) $ (110 ) $ (47 ) Writedowns for impairments on equity securities (60 ) (9 ) (77 ) (26 ) __________ (1) Excludes the portion of OTTI 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 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 Nine Months Ended (in millions) Balance, beginning of period $ 751 $ 781 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (187 ) (215 ) Credit loss impairments previously recognized on securities impaired to fair value during the period(1) (6 ) (19 ) 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 1 2 Increases due to the passage of time on previously recorded credit losses 1 14 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (3 ) (9 ) Balance, end of period $ 557 $ 557 Three Months Ended Nine Months Ended (in millions) Balance, beginning of period $ 794 $ 968 Credit loss impairments previously recognized on securities which matured, paid down, prepaid or were sold during the period (15 ) (214 ) 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 0 12 Additional credit loss impairments recognized in the current period on securities previously impaired 1 5 Increases due to the passage of time on previously recorded credit losses 10 28 Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected (3 ) (12 ) Balance, end of period $ 787 $ 787 __________ (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: September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 971 $ 970 $ 196 $ 196 Fixed maturities: Corporate securities 12,282 12,483 11,922 12,439 Commercial mortgage-backed securities 1,798 1,836 2,505 2,546 Residential mortgage-backed securities(1) 1,472 1,504 1,640 1,676 Asset-backed securities(2) 1,417 1,432 1,180 1,198 Foreign government bonds 659 674 621 650 U.S. government authorities and agencies and obligations of U.S. states 310 356 303 372 Total fixed maturities 17,938 18,285 18,171 18,881 Equity securities 1,016 1,153 896 1,186 Total trading account assets supporting insurance liabilities $ 19,925 $ 20,408 $ 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 $(251) million and $(194) million during the three months ended September 30, 2015 and 2014 , respectively, and $(517) million and $73 million during the nine months ended September 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: September 30, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (in millions) Short-term investments and cash equivalents $ 24 $ 24 $ 27 $ 27 Fixed maturities 10,517 10,326 8,306 8,282 Equity securities 1,068 1,129 992 1,105 Other 5 9 7 11 Subtotal $ 11,614 11,488 $ 9,332 9,425 Derivative instruments 2,587 1,449 Total other trading account assets $ 14,075 $ 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 $(227) million and $(66) million during the three months ended September 30, 2015 and 2014 , respectively, and $(219) million and $(31) million during the nine months ended September 30, 2015 and 2014 , 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 both September 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 . September 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 $ 53,360 $ 60,732 $ 52,703 $ 60,379 Fixed maturities, held-to-maturity 799 970 801 981 Trading account assets supporting insurance liabilities 478 487 457 470 Other trading account assets 35 35 36 36 Short-term investments 0 0 0 0 Cash equivalents 0 0 0 0 Total $ 54,672 $ 62,224 $ 53,997 $ 61,866 September 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 $ 6,880 $ 8,877 $ 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 $ 6,924 $ 8,922 $ 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: September 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 $ 11,350 23.4 % $ 9,612 21.5 % Retail 8,957 18.4 8,765 19.6 Apartments/Multi-Family 11,622 24.0 10,369 23.2 Industrial 7,651 15.8 7,628 16.9 Hospitality 2,506 5.2 2,270 5.1 Other 3,680 7.6 3,659 8.2 Total commercial mortgage loans 45,766 94.4 42,303 94.5 Agricultural property loans 2,736 5.6 2,445 5.5 Total commercial mortgage and agricultural property loans by property type 48,502 100.0 % 44,748 100.0 % Valuation allowance (103 ) (105 ) Total net commercial mortgage and agricultural property loans by property type 48,399 44,643 Other loans: Uncollateralized loans 1,032 1,092 Residential property loans 318 392 Other collateralized loans 313 319 Total other loans 1,663 1,803 Valuation allowance (14 ) (14 ) Total net other loans 1,649 1,789 Total commercial mortgage and other loans(1) $ 50,048 $ 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 (8%) and Texas (9%) ), and also include loans secured by property in Europe and Asia at September 30, 2015 . Activity in the allowance for credit losses for all commercial mortgage and other loans, as of the dates indicated, is as follows: September 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 (2 ) 1 (2 ) 0 2 (1 ) Charge-offs, net of recoveries 0 0 0 0 0 0 Change in foreign exchange (1 ) 0 0 0 0 (1 ) Total ending balance $ 101 $ 2 $ 3 $ 0 $ 11 $ 117 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: September 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 98 2 3 0 11 114 Loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance $ 101 $ 2 $ 3 $ 0 $ 11 $ 117 Recorded Investment(1): Gross of reserves: individually evaluated for impairment $ 217 $ 8 $ 0 $ 0 $ 2 $ 227 Gross of reserves: collectively evaluated for impairment 45,549 2,728 318 313 1,030 49,938 Gross of reserves: loans acquired with deteriorated credit quality 0 0 0 0 0 0 Total ending balance, gross of reserves $ 45,766 $ 2,736 $ 318 $ 313 $ 1,032 $ 50,165 __________ (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 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: September 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 3 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 $ 3 $ 0 With an allowance recorded: Commercial mortgage loans $ 55 $ 55 $ 3 $ 72 $ 2 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 $ 72 $ 2 Total: Commercial mortgage loans $ 55 $ 55 $ 3 $ 72 $ 2 Agricultural property loans 0 0 0 3 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 $ 75 $ 2 __________ (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. 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 September 30, 2015 and December 31, 2014 , was $151 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 September 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 September 30, 2015 , based upon the recorded investment gross of allowance for credit losses. Commercial mortgage loans Debt Service Coverage Ratio—September 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% $ 24,274 $ 322 $ 209 $ 24,805 60%-69.99% 13,488 426 71 13,985 70%-79.99% 6,018 476 99 6,593 Greater than 80% 90 177 116 383 Total commercial mortgage loans $ 43,870 $ 1,401 $ 495 $ 45,766 Agricultural property loans Debt Service Coverage Ratio—September 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% $ 2,407 $ 115 $ 3 $ 2,525 60%-69.99% 208 0 0 208 70%-79.99% 3 0 0 3 Greater than 80% 0 0 0 0 Total agricultural property loans $ 2,618 $ 115 $ 3 $ 2,736 Total commercial mortgage and agricultural property loans Debt Service Coverage Ratio—September 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% $ 26,681 $ 437 $ 212 $ 27,330 60%-69.99% 13,696 426 71 14,193 70%-79.99% 6,021 476 99 6,596 Greater than 80% 90 177 116 383 Total commercial mortgage and agricultural property loans $ 46,488 $ 1,516 $ 498 $ 48,502 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. September 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 $ 45,744 $ 22 $ 0 $ 0 $ 0 $ 22 $ 45,766 $ 103 Agricultural property loans 2,735 0 0 0 1 1 2,736 3 Residential property loans 307 4 1 0 6 11 318 5 Other collateralized loans 313 0 0 0 0 0 313 0 Uncollateralized loans 1,032 0 0 0 0 0 1,032 0 Total $ 50,131 $ 26 $ 1 $ 0 $ 7 $ 34 $ 50,165 $ 111 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 the three and nine months ended September 30, 2015 , there were $145 million and $198 million , respectively, of commercial mortgage and other loans acquired, other than those through direct origination and there were $0 million and $18 million , respectively, of commercial mortgage and other loans sold, other than those classified as held-for-sale. For both the three and nine months ended September 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 September 30, 2015 and December 31, 2014 , the Company had no significant commitments to borrowers that have been involved in a troubled debt restructuring. During the three months and nine months ended September 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 September 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 nine months ended September 30, 2015 and 2014 , was from the following sources: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities, available-for-sale(1) $ 2,572 $ 2,659 $ 7,766 $ 7,945 Fixed maturities, held-to-maturity(1) 51 53 151 135 Equity securities, available-for-sale 87 92 264 281 Trading account assets 304 277 885 794 Commercial mortgage and other loans 580 519 1,680 1,539 Policy loans 156 162 464 474 Short-term investments and cash equivalents 13 9 37 26 Other long-term investments 208 254 589 771 Gross investment income 3,971 4,025 11,836 11,965 Less: investment expenses (230 ) (184 ) (655 ) (532 ) Net investment income $ 3,741 $ 3,841 $ 11,181 $ 11,433 __________ (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 $264 million and $218 million of investments in low-income housing tax credit limited partnerships and has committed to fund $46 million and $67 million as of September 30, 2015 and December 31, 2014 , respectively. Generally, the Company uses the equity method of accounting for these investments. The Company recognized $8 million and $5 million of equity method losses and utilized $16 million and $18 million of tax credits associated with these investments for the three months ended September 30, 2015 and 2014 , respectively. The Company recognized $15 million and $11 million of equity method losses and utilized $49 million and $52 million of tax credits associated with these investments for the nine months ended September 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 nine months ended September 30, 2015 and 2014 , were from the following sources: Three Months Ended Nine Months Ended 2015 2014 2015 2014 (in millions) Fixed maturities $ 281 $ 163 $ 1,121 $ 788 Equity securities 46 185 394 438 Commercial mortgage and other loans (8 ) 91 23 107 Investment real estate 0 0 38 0 Joint ventures and limited partnerships (71 ) (14 ) (80 ) (13 ) Derivatives(1) 1,453 (356 ) 2,688 (441 ) Other (1 ) 6 6 13 Realized investment gains (losses), net $ 1,700 $ 75 $ 4,190 $ 892 __________ (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: September 30, December 31, (in millions) Fixed maturity securities on which an OTTI loss has been recognized $ 253 $ 349 Fixed maturity securities, available-for-sale—all other 27,244 33,625 Equity securities, available-for-sale 2,354 2,940 Derivatives designated as cash flow hedges(1) 1,017 206 Other investments(2) (18 ) (7 ) Net unrealized gains (losses) on investments $ 30,850 $ 37,113 __________ (1) See Note 14 for more information on cash flow hedges. (2) As of September 30, 2015 , there were $1 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: September 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 $ 192 $ 4 $ 0 $ 0 $ 192 $ 4 Obligations of U.S. states and their political subdivisions 2,136 60 8 1 2,144 61 Foreign government bonds 1,781 77 799 87 2,580 164 Corporate securities 37,885 1,963 7,248 1,101 45,133 3,064 Commercial mortgage-backed securities 1,755 11 577 5 2,332 16 Asset-backed securities 2,910 22 3,163 83 6,073 105 Residential mortgage-backed securities 158 1 124 2 282 3 Total $ 46,817 $ 2,138 $ 11,919 $ 1,279 $ 58,736 $ 3,417 Equity securities, available-for-sale $ 2,301 $ 172 $ 15 $ 4 $ 2,316 $ 176 __________ (1) Includes $86 million of fair value and $1 million of gross unrealized losses at September 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 |