| Investments | 4. 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 available-for-sale (“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”). March 31, 2016 December 31, 2015 Cost or Gross Unrealized Estimated Cost or Gross Unrealized Estimated Gains Temporary OTTI Gains Temporary OTTI (In millions) Fixed maturity securities U.S. corporate $ 15,775 $ 1,375 $ 222 $ — $ 16,928 $ 16,160 $ 979 $ 393 $ — $ 16,746 U.S. government and agency 13,251 2,091 6 — 15,336 12,562 1,297 53 — 13,806 RMBS 9,557 248 102 24 9,679 8,391 201 95 19 8,478 Foreign corporate 4,839 231 120 — 4,950 4,995 153 194 — 4,954 State and political subdivision 2,514 429 2 1 2,940 2,398 321 13 1 2,705 ABS 3,013 15 40 — 2,988 2,694 14 34 — 2,674 CMBS (1) 2,979 75 9 (1 ) 3,046 2,303 20 23 (1 ) 2,301 Foreign government 690 131 3 — 818 651 104 10 — 745 Total fixed maturity securities $ 52,618 $ 4,595 $ 504 $ 24 $ 56,685 $ 50,154 $ 3,089 $ 815 $ 19 $ 52,409 Equity securities Non-redeemable preferred stock $ 214 $ 14 $ 14 $ — $ 214 $ 217 $ 16 $ 9 $ — $ 224 Common stock 159 24 1 — 182 167 23 5 — 185 Total equity securities $ 373 $ 38 $ 15 $ — $ 396 $ 384 $ 39 $ 14 $ — $ 409 __________________ (1) The noncredit loss component of other-than-temporary impairment (“OTTI”) losses for CMBS was in an unrealized gain position of $1 million at both March 31, 2016 and December 31, 2015 , 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 $6 million and $11 million with unrealized gains (losses) of $1 million and $1 million at March 31, 2016 and December 31, 2015 , 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, 2016 : Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 2,373 $ 9,280 $ 8,459 $ 16,957 $ 15,549 $ 52,618 Estimated fair value $ 2,386 $ 9,696 $ 8,778 $ 20,112 $ 15,713 $ 56,685 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 (RMBS, ABS and CMBS) 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. March 31, 2016 December 31, 2015 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 (In millions, except number of securities) Fixed maturity securities U.S. corporate $ 2,083 $ 103 $ 915 $ 119 $ 4,569 $ 278 $ 571 $ 115 U.S. government and agency 407 1 109 5 4,037 53 — — RMBS 1,556 64 760 62 4,305 73 495 41 Foreign corporate 743 36 618 84 1,650 96 605 98 State and political subdivision 96 2 22 1 373 12 19 2 ABS 1,995 32 280 8 1,818 28 194 6 CMBS 378 4 91 4 1,346 21 44 1 Foreign government 62 2 9 1 130 9 6 1 Total fixed maturity securities $ 7,320 $ 244 $ 2,804 $ 284 $ 18,228 $ 570 $ 1,934 $ 264 Equity securities Non-redeemable preferred stock $ 50 $ 2 $ 39 $ 12 $ 25 $ 1 $ 40 $ 8 Common stock 3 1 — — 6 5 1 — Total equity securities $ 53 $ 3 $ 39 $ 12 $ 31 $ 6 $ 41 $ 8 Total number of securities in an unrealized loss position 1,101 505 1,850 394 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 2015 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, 2016 . 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. 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 $306 million during the three months ended March 31, 2016 to $528 million . The decrease in gross unrealized losses for the three months ended March 31, 2016 was primarily attributable to a decrease in interest rates and, to a lesser extent, the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities. At March 31, 2016 , $70 million of the total $528 million of gross unrealized losses were from 32 fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities Of the $70 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, $39 million , or 56% , were related to gross unrealized losses on nine investment grade fixed maturity securities. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Of the $70 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, $31 million , or 44% , were related to gross unrealized losses on 23 below investment grade fixed maturity securities. Unrealized losses on below investment grade fixed maturity securities are principally related to U.S. and foreign corporate securities (primarily industrial securities) and non-agency RMBS (primarily alternative residential mortgage loans) 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 and valuations of residential real estate supporting non-agency RMBS. 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; and evaluates non-agency RMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security. Equity Securities Gross unrealized losses on equity securities increased $1 million during the three months ended March 31, 2016 to $15 million . Of the $15 million , $7 million were from two securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Of the $7 million , 43% were rated A or better, and all were from financial services industry investment grade non-redeemable preferred stock. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2016 December 31, 2015 Carrying Value % of Total Carrying Value % of Total (In millions) (In millions) Mortgage loans Commercial $ 5,464 73.5 % $ 5,331 73.4 % Agricultural 1,471 19.8 1,460 20.1 Residential 361 4.9 335 4.6 Subtotal (1) 7,296 98.2 7,126 98.1 Valuation allowances (37 ) (0.5 ) (36 ) (0.5 ) Subtotal mortgage loans, net 7,259 97.7 7,090 97.6 Commercial mortgage loans held by CSEs - FVO 169 2.3 172 2.4 Total mortgage loans, net $ 7,428 100.0 % $ 7,262 100.0 % __________________ (1) Purchases of mortgage loans were $39 million for the three months ended March 31, 2016 . There were no mortgage loans purchased for the three months ended March 31, 2015 . See “— Variable Interest Entities” for discussion of consolidated securitization entities (“CSEs”). See “— Related Party Investment Transactions” for discussion of related party mortgage loans. Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on commercial mortgage loans held by CSEs - FVO is presented in Note 6 . The Company elects the FVO for certain commercial 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, 2016 Commercial $ — $ — $ — $ — $ — $ 5,464 $ 28 $ — Agricultural 4 3 — — — 1,468 5 3 Residential — — — — — 361 4 — Total $ 4 $ 3 $ — $ — $ — $ 7,293 $ 37 $ 3 December 31, 2015 Commercial $ — $ — $ — $ — $ — $ 5,331 $ 28 $ — Agricultural 4 3 — — — 1,457 5 3 Residential — — — — — 335 3 — Total $ 4 $ 3 $ — $ — $ — $ 7,123 $ 36 $ 3 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $3 million and $0 , respectively, for both the three months ended March 31, 2016 and 2015 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2016 2015 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 28 $ 5 $ 3 $ 36 $ 21 $ 4 $ — $ 25 Provision (release) — — 1 1 1 — — 1 Balance, end of period $ 28 $ 5 $ 4 $ 37 $ 22 $ 4 $ — $ 26 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Debt Service Coverage Ratios % of Total Estimated Fair Value % of Total > 1.20x 1.00x - 1.20x < 1.00x Total (In millions) (In millions) March 31, 2016 Loan-to-value ratios Less than 65% $ 4,757 $ 125 $ 102 $ 4,984 91.2 % $ 5,253 91.7 % 65% to 75% 354 — 22 376 6.9 375 6.5 76% to 80% 21 — — 21 0.4 23 0.4 Greater than 80% 69 — 14 83 1.5 80 1.4 Total $ 5,201 $ 125 $ 138 $ 5,464 100.0 % $ 5,731 100.0 % December 31, 2015 Loan-to-value ratios Less than 65% $ 4,659 $ 151 $ 100 $ 4,910 92.1 % $ 5,124 92.6 % 65% to 75% 330 — 8 338 6.3 330 6.0 76% to 80% — — — — — — — Greater than 80% 44 25 14 83 1.6 80 1.4 Total $ 5,033 $ 176 $ 122 $ 5,331 100.0 % $ 5,534 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: March 31, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (In millions) (In millions) Loan-to-value ratios Less than 65% $ 1,415 96.2 % $ 1,366 93.6 % 65% to 75% 56 3.8 94 6.4 Total $ 1,471 100.0 % $ 1,460 100.0 % The estimated fair value of agricultural mortgage loans was $1.5 billion at both March 31, 2016 and December 31, 2015 . Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: March 31, 2016 December 31, 2015 Recorded Investment % of Total Recorded Investment % of Total (In millions) (In millions) Performance indicators Performing $ 356 98.6 % $ 331 98.8 % Nonperforming 5 1.4 4 1.2 Total $ 361 100.0 % $ 335 100.0 % The estimated fair value of residential mortgage loans was $371 million and $345 million at March 31, 2016 and December 31, 2015 , respectively. Past Due and Interest Accrual Status of 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, 2016 and December 31, 2015 . 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 accrual status of mortgage loans at recorded investment, prior to valuation allowances by portfolio segment, were as follows at: Past Due Nonaccrual Status March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 (In millions) Commercial $ — $ — $ — $ — Agricultural 16 — — — Residential 5 4 5 4 Total $ 21 $ 4 $ 5 $ 4 Mortgage Loans Modified in a Troubled Debt Restructuring There were no mortgage loans modified in a troubled debt restructuring during the three months ended March 31, 2016 and 2015 . 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 $1.1 billion at both March 31, 2016 and December 31, 2015 . 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”) and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in accumulated other comprehensive income (loss) (“AOCI”). The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2016 December 31, 2015 (In millions) Fixed maturity securities $ 4,081 $ 2,265 Fixed maturity securities with noncredit OTTI losses included in AOCI (24 ) (19 ) Total fixed maturity securities 4,057 2,246 Equity securities 49 54 Derivatives 379 368 Other 99 78 Subtotal 4,584 2,746 Amounts allocated from: Future policy benefits (376 ) (56 ) DAC and VOBA related to noncredit OTTI losses recognized in AOCI (1 ) (1 ) DAC, VOBA and DSI (243 ) (198 ) Subtotal (620 ) (255 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 12 7 Deferred income tax benefit (expense) (1,358 ) (844 ) Net unrealized investment gains (losses) $ 2,618 $ 1,654 The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows: Three Months Year (In millions) Balance, beginning of period $ (19 ) $ (34 ) Noncredit OTTI losses and subsequent changes recognized — 9 Securities sold with previous noncredit OTTI loss 1 17 Subsequent changes in estimated fair value (6 ) (11 ) Balance, end of period $ (24 ) $ (19 ) The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 1,654 Fixed maturity securities on which noncredit OTTI losses have been recognized (5 ) Unrealized investment gains (losses) during the period 1,843 Unrealized investment gains (losses) relating to: Future policy benefits (320 ) DAC, VOBA and DSI (45 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI 5 Deferred income tax benefit (expense) (514 ) Balance, end of period $ 2,618 Change in net unrealized investment gains (losses) $ 964 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s stockholder’s equity, other than the U.S. government and its agencies, at both March 31, 2016 and December 31, 2015 . Securities Lending Elements of the securities lending program are presented below at: March 31, 2016 December 31, 2015 (In millions) Securities on loan: (1) Amortized cost $ 8,158 $ 8,047 Estimated fair value $ 9,506 $ 8,830 Cash collateral on deposit from counterparties (2) $ 9,654 $ 8,981 Security collateral on deposit from counterparties (3) $ 30 $ 23 Reinvestment portfolio — estimated fair value $ 9,649 $ 8,938 __________________ (1) Included within fixed maturity securities and short-term investments. At March 31, 2016 , both amortized cost and estimated fair value also included $105 million , at estimated fair value, of securities which are not reflected in the consolidated financial statements. (2) Included within payables for collateral under securities loaned and other transactions. (3) Security collateral on deposit 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 were as follows at: March 31, 2016 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (In millions) Cash collateral liability by loaned security type U.S. government and agency $ 2,704 $ 2,657 $ 2,674 $ 8,035 83.2 % Agency RMBS 12 654 579 1,245 12.9 U.S. corporate 11 306 — 317 3.3 Foreign government 1 44 — 45 0.5 Foreign corporate — 12 — 12 0.1 Total $ 2,728 $ 3,673 $ 3,253 $ 9,654 100 % December 31, 2015 Remaining Tenor of Securities Lending Agreements Open (1) 1 Month or Less 1 to 6 Months Total % of Total (In millions) Cash collateral liability by loaned security type U.S. government and agency $ 2,631 $ 3,140 $ 1,338 $ 7,109 79.1 % Agency RMBS — 939 579 1,518 16.9 U.S. corporate 9 302 — 311 3.5 Foreign government 1 42 — 43 0.5 Foreign corporate — — — — — Total $ 2,641 $ 4,423 $ 1,917 $ 8,981 100 % __________________ (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, 2016 was $2.7 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, U.S. government and agency, ABS, non-agency RMBS and U.S. corporate securities) with 64% invested in agency RMBS, U.S. government and agency, short-term investments, 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. Repurchase Agreement Transactions The Company participates in short-term repurchase agreements and reverse repurchase agreements with unaffiliated financial institutions. Under these agreements, the Company lends fixed maturity securities and contemporaneously borrows other fixed maturity securities (e.g., repurchase and reverse repurchase, respectively). The Company obtains cash collateral in an amount greater than or equal to 95% of the estimated fair value of the securities loaned, and pledges cash collateral in an amount generally equal to 98% of the estimated fair value of the borrowed securities at the inception of the transaction. The Company monitors the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. The Company accounted for these transactions as collateralized borrowing and lending. The amount of fixed maturity securities lent and borrowed, at estimated fair value, was $315 million and $305 million , respectively, at March 31, 2016 . There were no such transactions outstanding as of December 31, 2015. Securities loaned under such transactions may be sold or re-pledged by the transferee. Securities borrowed under such transactions may be re-pledged and are not reflected on the consolidated financial statements. The amount of borrowed securities which were re-pledged was $105 million , at estimated fair value, at March 31, 2016 . The Company has elected to offset amounts recognized as receivables and payables resulting from these transactions. The gross amounts of the receivables and payables related to these transactions at March 31, 2016 were both $300 million . After the effect of offsetting of $300 million , the net amount presented on the consolidated balance sheet at March 31, 2016 was a liability of less than $1 million . Amounts owed to and due from counterparties may be settled in cash or offset, in accordance with the agreements. Cash inflows and outflows for cash settlements are reported on the consolidated statements of cash flows. At March 31, 2016 , all $300 million of payables from repurchase agreements had a remaining tenor of six months to one year and were loans of U.S. and foreign corporate securities. See Note 5 for information regarding the estimated fair value of the Company’s net derivative assets and net derivative liabilities after the application of master netting agreements and collateral. 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, 2016 December 31, 2015 (In millions) Invested assets on deposit (regulatory deposits) $ 7,603 $ 7,245 Invested assets held in trust (reinsurance agreements) (1) 1,188 952 Invested assets pledged as collateral (2) 4,104 2,801 Total invested assets on deposit, held in trust and pledged as collateral $ 12,895 $ 10,998 __________________ (1) The Company has held in trust certain investments, primarily fixed maturity securities, in connection with certain reinsurance transactions. (2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 5 of the Notes to the Consolidated Financial Statements included in the 2015 Annual Report) and derivative transactions (see Note 5 ). See “— Securities Lending” and “— Repurchase Agreement Transactions” for information regarding securities on loan. Variable Interest Entities The Company is involved with certain 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. 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, 2016 and December 31, 2015 . March 31, 2016 December 31, 2015 (In millions) CSEs: (1) Assets: Mortgage loans (commercial mortgage loans) $ 169 $ 172 Accrued investment income 1 1 Total assets $ 170 $ 173 Liabilities: Long-term debt $ 44 $ 48 Other liabilities — 1 Total liabilities $ 44 $ 49 __________________ (1) The Company consolidates entities that are structured as CMBS. 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. The Company’s exposure was limited to that of its remaining investment in these entities of $107 million and $105 million at estimated fair value at March 31, 2016 and December 31, 2015 , respectively. The long-term debt bears interest primarily at fixed rates, ranging from 2.25% to 5.57% , payable primarily on a monthly basis. Interest expense related to these obligations, included in other expenses, was less than $1 million and $1 million for the three months ended March 31, 2016 and 2015 , respectively. 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, 2016 December 31, 2015 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured securities (RMBS, ABS and CMBS) (2) $ 15,713 $ 15,713 $ 13,453 $ 13,453 U.S. and foreign corporate 427 427 461 461 Other limited partnership interests 1,636 2,258 1,367 1,647 Real estate joint ventures (3) 398 405 35 38 Other investments (4) 59 65 57 62 Total $ 18,233 $ 18,868 $ 15,373 $ 15,661 __________________ (1) The maximum exposure to loss relating to fixed maturity 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 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 less than $1 million at both March 31, 2016 and December 31, 2015 . 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) Included in real estate joint ventures are investments in affiliated real estate joint ventures with a carrying value and maximum exposure to loss of $342 million at March 31, 2016 . (4) Other investments are comprised of other invested assets and non-redeemable preferred stock. As described in Note 9 , 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, 2016 and 2015 . Net Investment Income The components of net investment income were as follows: Three Months 2016 2015 (In millions) Investment income: Fixed maturity securities $ 515 $ 487 Equity securities 5 4 Mortgage loans 88 72 Policy loans 14 13 Real estate and real estate joint ventures 13 22 Other limited partnership interests 21 52 Cash, cash equivalents and short-term investments 4 2 Operating joint venture 2 2 Other — 4 Subtotal 662 658 Less: Investment expenses 38 27 Subtotal, net 624 631 FVO CSEs — interest income — commercial mortgage loans 3 4 Net investment income $ 627 $ 635 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Three Months 2016 2015 (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 $ (13 ) $ (1 ) Total U.S. and foreign corporate securities (13 ) (1 ) RMBS (2 ) (2 ) OTTI losses on fixed maturity securities recognized in earnings (15 ) (3 ) Fixed maturity securities — net gains (losses) on sales and disposals (33 ) 25 Total gains (losses) on fixed maturity securities (48 ) 22 Total gains (losses) on equity securities: Total OTTI losses recognized — by sector: Common stock (1 ) — OTTI losses on equity securities recognized in earnings (1 ) — Equity securities — net gains (losses) on sales and disposals 4 (1 ) Total gains (losses) on equity securities 3 (1 ) Mortgage loans (2 ) (1 ) Real estate and real estate joint ventures (1 ) 23 Other limited partnership interests (4 ) (1 ) Other 2 2 Subtotal (50 ) 44 FVO CSEs: Commercial mortgage loans 1 (3 ) Long-term debt — related to commercial mortgage loans — 1 Non-investment portfolio gains (losses) 1 — Subtotal 2 (2 ) Total net investment gains (losses) $ (48 ) $ 42 See “— Variable Interest Entities” for discussion of CSEs. See “— Related Party Investment Transactions” for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transactions included within net investment gains (losses) were $3 million and $1 million for the three months ended March 31, 2016 and 2015 , 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 2016 2015 2016 2015 Fixed Maturity Securities Equity Securities (In millions) Proceeds $ 8,838 $ 7,984 $ 4 $ 2 Gross investment gains $ 33 $ 48 $ 4 $ — Gross investment losses (66 ) (23 ) — (1 ) OTTI losses (15 ) (3 ) (1 ) — Net investment gains (losses) $ (48 ) $ 22 $ 3 $ (1 ) 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 2016 2015 (In millions) Balance, beginning of period $ 52 $ 57 Additions: Additional impairments — credit loss OTTI on securities previously impaired 1 2 Reductions: Sales (maturities, pay downs or prepayments) of securities previously impaired as credit loss OTTI (2 ) (2 ) Increase in cash flows — accretion of previous credit loss OTTI — (1 ) Balance, end of period $ 51 $ 56 Related Party Investment Transactions The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. The estimated fair value of invested assets transferred from affiliates for the three months ended March 31, 2016 and 2015 was $237 million and $525 million , resp |
