| Investments | 5 . Investments Fixed Maturity Securities Available-for-Sale Fixed Maturity Securities Available-for-Sale by Sector The following table presents the fixed maturity securities available-for-sale (“AFS”) by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes Agency, prime, alternative and sub-prime mortgage-backed securities. Asset-backed securities (“ABS”) includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds, and to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple properties. RMBS, ABS and CMBS are collectively “Structured Securities.” March 31, 2019 December 31, 2018 Amortized Gross Unrealized Estimated Amortized Gross Unrealized Estimated Temporary OTTI Temporary OTTI (In millions) U.S. corporate $ 52,163 $ 3,548 $ 536 $ — $ 55,175 $ 53,927 $ 2,440 $ 1,565 $ — $ 54,802 U.S. government and agency 27,587 2,846 177 — 30,256 28,139 2,388 366 — 30,161 Foreign corporate 27,441 1,180 817 — 27,804 26,592 674 1,303 — 25,963 RMBS 22,372 974 164 (29 ) 23,211 22,186 831 305 (25 ) 22,737 ABS 8,650 40 59 — 8,631 8,599 40 112 — 8,527 Municipals 6,073 1,129 8 — 7,194 6,070 907 30 — 6,947 CMBS 5,475 114 29 — 5,560 5,471 48 75 — 5,444 Foreign government 4,122 491 57 — 4,556 4,191 408 107 — 4,492 Total fixed maturity securities AFS $ 153,883 $ 10,322 $ 1,847 $ (29 ) $ 162,387 $ 155,175 $ 7,736 $ 3,863 $ (25 ) $ 159,073 __________________ (1) Noncredit OTTI losses included in AOCI in an unrealized gain position are due to increases in estimated fair value subsequent to initial recognition of noncredit losses on such securities. See also “— Net Unrealized Investment Gains (Losses).” The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $24 million and $14 million , and unrealized gains (losses) of less than $1 million and ($1) million at March 31, 2019 and December 31, 2018 , respectively. Maturities of Fixed Maturity Securities AFS The amortized cost and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2019 : 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 AFS (In millions) Amortized cost $ 8,873 $ 26,920 $ 27,372 $ 54,221 $ 36,497 $ 153,883 Estimated fair value $ 8,798 $ 27,323 $ 28,363 $ 60,501 $ 37,402 $ 162,387 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at: March 31, 2019 December 31, 2018 Less than 12 Months Equal to or Greater Less than 12 Months Equal to or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 7,164 $ 210 $ 5,883 $ 326 $ 23,398 $ 1,176 $ 3,043 $ 389 U.S. government and agency 2,089 3 6,363 174 4,322 29 7,948 337 Foreign corporate 5,762 428 3,581 389 12,911 893 2,138 410 RMBS 1,196 25 6,440 110 5,611 107 4,482 173 ABS 4,844 48 598 11 5,958 105 223 7 Municipals 75 3 191 5 675 22 94 8 CMBS 1,148 7 506 22 2,455 45 344 30 Foreign government 294 29 385 28 1,364 83 191 24 Total fixed maturity securities AFS $ 22,572 $ 753 $ 23,947 $ 1,065 $ 56,694 $ 2,460 $ 18,463 $ 1,378 Total number of securities in an unrealized loss position 2,352 1,833 5,263 1,125 Evaluation of Fixed Maturity Securities AFS for OTTI and Evaluating Temporarily Impaired Fixed Maturity Securities AFS As described more fully in Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report, the Company performs a regular evaluation of all investment classes for impairment, including fixed maturity securities AFS 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 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, 2019 . Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, and foreign currency exchange rates. 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 AFS decreased $2.0 billion for the three months ended March 31, 2019 to $1.8 billion . The decrease in gross unrealized losses for the three months ended March 31, 2019 was primarily attributable to decreases in interest rates, narrowing credit spreads and, to a lesser extent, the impact of strengthening foreign currencies on non-functional currency denominated fixed maturity securities AFS. At March 31, 2019 , $97 million of the total $1.8 billion of gross unrealized losses were from 20 fixed maturity securities AFS with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities AFS Of the $97 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $67 million , or 69% , were related to gross unrealized losses on 11 investment grade fixed maturity securities AFS. Unrealized losses on investment grade fixed maturity securities AFS are principally related to widening credit spreads since purchase and, with respect to fixed-rate fixed maturity securities AFS, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities AFS Of the $97 million of gross unrealized losses on fixed maturity securities AFS with an unrealized loss of 20% or more of amortized cost for six months or greater, $30 million , or 31% , were related to gross unrealized losses on 9 below investment grade fixed maturity securities AFS. Unrealized losses on below investment grade fixed maturity securities AFS are principally related to CMBS and U.S. and foreign corporate securities (primarily industrial and financial institutions) and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty. Management evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security and 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. Equity Securities Equity securities are summarized as follows at: March 31, 2019 December 31, 2018 Estimated Fair Value % of Total Estimated Fair Value % of Total (Dollars in millions) Common stock $ 475 58.1 % $ 442 57.2 % Non-redeemable preferred stock 342 41.9 331 42.8 Total equity securities $ 817 100.0 % $ 773 100.0 % Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: March 31, 2019 December 31, 2018 Carrying Value % of Total Carrying Value % of Total (Dollars in millions) Mortgage loans: Commercial $ 39,220 59.5 % $ 38,123 59.9 % Agricultural 14,355 21.8 14,164 22.2 Residential 12,370 18.7 11,392 17.9 Total recorded investment 65,945 100.0 63,679 100.0 Valuation allowances (295 ) (0.4 ) (291 ) (0.5 ) Subtotal mortgage loans, net 65,650 99.6 63,388 99.5 Residential — FVO 276 0.4 299 0.5 Total mortgage loans, net $ 65,926 100.0 % $ 63,687 100.0 % Information on commercial, agricultural and residential mortgage loans is presented in the tables below. Information on residential mortgage loans — fair value option (“FVO”) is presented in Note 7 . The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis. The amount of net discounts, included within total recorded investment, primarily attributable to residential mortgage loans, was $988 million and $907 million at March 31, 2019 and December 31, 2018 , respectively. Purchases of mortgage loans, primarily residential, were $1.3 billion and $288 million for the three months ended March 31, 2019 and 2018 , respectively . 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, 2019 Commercial $ — $ — $ — $ — $ — $ 39,220 $ 194 $ — Agricultural 31 31 3 93 92 14,232 42 120 Residential — — — 447 399 11,971 56 399 Total $ 31 $ 31 $ 3 $ 540 $ 491 $ 65,423 $ 292 $ 519 December 31, 2018 Commercial $ — $ — $ — $ — $ — $ 38,123 $ 190 $ — Agricultural 31 31 3 169 169 13,964 41 197 Residential — — — 431 386 11,006 57 386 Total $ 31 $ 31 $ 3 $ 600 $ 555 $ 63,093 $ 288 $ 583 The average recorded investment for impaired commercial, agricultural and residential mortgage loans was $0 , $161 million and $393 million , respectively, for the three months ended March 31, 2019 and $0 , $84 million and $331 million , respectively, for the three months ended March 31, 2018 . Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows: Three Months 2019 2018 Commercial Agricultural Residential Total Commercial Agricultural Residential Total (In millions) Balance, beginning of period $ 190 $ 44 $ 57 $ 291 $ 173 $ 40 $ 58 $ 271 Provision (release) 4 1 1 6 11 — — 11 Charge-offs, net of recoveries — — (2 ) (2 ) — — (1 ) (1 ) Balance, end of period $ 194 $ 45 $ 56 $ 295 $ 184 $ 40 $ 57 $ 281 Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans was as follows at: Recorded Investment Estimated % of Debt Service Coverage Ratios % of > 1.20x 1.00x - 1.20x < 1.00x Total (Dollars in millions) March 31, 2019 Loan-to-value ratios: Less than 65% $ 32,588 $ 707 $ 117 $ 33,412 85.2 % $ 34,093 85.4 % 65% to 75% 4,509 26 — 4,535 11.6 4,586 11.5 76% to 80% 311 238 55 604 1.5 591 1.5 Greater than 80% 502 167 — 669 1.7 638 1.6 Total $ 37,910 $ 1,138 $ 172 $ 39,220 100.0 % $ 39,908 100.0 % December 31, 2018 Loan-to-value ratios: Less than 65% $ 31,282 $ 723 $ 85 $ 32,090 84.2 % $ 32,440 84.3 % 65% to 75% 4,759 — 21 4,780 12.5 4,829 12.6 76% to 80% 340 210 56 606 1.6 585 1.5 Greater than 80% 480 167 — 647 1.7 613 1.6 Total $ 36,861 $ 1,100 $ 162 $ 38,123 100.0 % $ 38,467 100.0 % Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans was as follows at: March 31, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Loan-to-value ratios: Less than 65% $ 13,430 93.5 % $ 13,075 92.3 % 65% to 75% 904 6.3 1,034 7.3 76% to 80% — — 32 0.2 Greater than 80% 21 0.2 23 0.2 Total $ 14,355 100.0 % $ 14,164 100.0 % The estimated fair value of agricultural mortgage loans was $14.4 billion and $14.1 billion at March 31, 2019 and December 31, 2018 , respectively. Credit Quality of Residential Mortgage Loans The credit quality of residential mortgage loans was as follows at: March 31, 2019 December 31, 2018 Recorded Investment % of Total Recorded Investment % of Total (Dollars in millions) Performance indicators: Performing $ 11,960 96.7 % $ 10,990 96.5 % Nonperforming (1) 410 3.3 402 3.5 Total $ 12,370 100.0 % $ 11,392 100.0 % __________________ (1) Includes residential mortgage loans in process of foreclosure of $140 million at both March 31, 2019 and December 31, 2018 . The estimated fair value of residential mortgage loans was $12.8 billion and $11.8 billion at March 31, 2019 and December 31, 2018 , respectively. Past Due and Nonaccrual Mortgage Loans The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both March 31, 2019 and December 31, 2018 . The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. The past due and nonaccrual mortgage loans at recorded investment, prior to valuation allowances, by portfolio segment, were as follows at: Past Due Greater than 90 Days Past Due and Still Accruing Interest Nonaccrual March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 (In millions) Commercial $ — $ — $ — $ — $ 167 $ 167 Agricultural 134 204 39 109 105 105 Residential 410 402 — — 410 402 Total $ 544 $ 606 $ 39 $ 109 $ 682 $ 674 Real Estate and Real Estate Joint Ventures The Company’s real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, operating income and equity method income from real estate joint ventures. Real estate investments, by income type, as well as income earned, are as follows at and for the periods indicated: March 31, 2019 December 31, 2018 Three Months 2019 2018 Carrying Value Income (In millions) Leased real estate investments $ 1,231 $ 1,134 $ 41 $ 56 Other real estate investments 475 460 30 31 Real estate joint ventures 4,575 4,558 (5 ) 24 Total real estate and real estate joint ventures $ 6,281 $ 6,152 $ 66 $ 111 The carrying value of real estate investments acquired through foreclosure was $41 million and $42 million at March 31, 2019 and December 31, 2018 , respectively. Depreciation expense on real estate investments was $15 million and $19 million for the three months ended March 31, 2019 and 2018 , respectively. Real estate investments were net of accumulated depreciation of $686 million and $671 million at March 31, 2019 and December 31, 2018 , respectively. Leases Leased Real Estate Investments - Operating Leases The Company, as lessor, leases investment real estate, principally commercial real estate for office and retail use, through a variety of operating lease arrangements, which typically include tenant reimbursement for property operating costs and options to renew or extend the lease. In some circumstances, leases may include an option for the lessee to purchase the property. In addition, certain leases of retail space may stipulate that a portion of the income earned is contingent upon the level of the tenants’ revenues. The Company has elected a practical expedient of not separating non-lease components related to reimbursement of property operating costs from associated lease components. These property operating costs have the same timing and pattern of transfer as the related lease component, because they are incurred over the same period of time as the operating lease. Therefore, the combined component is accounted for as an operating lease. Risk is managed through lessee credit analysis, property type diversification, and geographic diversification, primarily across the United States. Leased real estate investments and income earned, by property type, are as follows at and for the periods indicated: March 31, 2019 December 31, 2018 Three Months 2019 2018 Carrying Value Income (In millions) Leased real estate investments: Office $ 373 $ 373 $ 14 $ 16 Retail 539 450 17 18 Apartment (1) — — — 13 Industrial 261 209 10 9 Other 58 102 — — Total leased real estate investments $ 1,231 $ 1,134 $ 41 $ 56 __________________ (1) The Company sold its investment in apartment properties in the fourth quarter of 2018. Future contractual receipts under operating leases at March 31, 2019 are $97 million for the remainder of 2019, $120 million in 2020, $97 million in 2021, $76 million in 2022, $60 million in 2023, $149 million thereafter, and in total are $599 million . Leveraged and Direct Financing Leases The Company has diversified leveraged lease and direct financing lease portfolios. Its leveraged leases principally include renewable energy generation facilities, rail cars, commercial real estate and commercial aircraft, and its direct financing leases principally include renewable energy generation facilities. These assets are leased through a variety of lease arrangements, which may include options to renew or extend the lease and options for the lessee to purchase the property. Residual values are estimated using available third-party data at inception of the lease. Risk is managed through lessee credit analysis, asset allocation, geographic diversification, and ongoing reviews of estimated residual values, using available third-party data. Generally, estimated residual values are not guaranteed by the lessee or a third party. Investment in leveraged and direct financing leases consisted of the following at: March 31, 2019 December 31, 2018 Leveraged Direct Leveraged Direct (In millions) Lease receivables, net (1) $ 711 $ 250 $ 715 $ 256 Estimated residual values 618 42 618 42 Subtotal 1,329 292 1,333 298 Unearned income (392 ) (94 ) (401 ) (100 ) Investment in leases $ 937 $ 198 $ 932 $ 198 __________________ (1) The future contractual receipts under direct financing leases at March 31, 2019 are $15 million for the remainder of 2019, $21 million in 2020, $21 million in 2021, $21 million in 2022, $21 million 2023, $151 million thereafter, and in total are $250 million . Lease receivables are generally due in periodic installments, with payment periods generally ranging from one to 15 years, but in certain circumstances can be over 25 years. For lease receivables, the primary credit quality indicator is whether the lease receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming lease receivables as those that are 90 days or more past due. At both March 31, 2019 and December 31, 2018 , all lease receivables were performing. The Company’s deferred income tax liability related to leveraged leases was $462 million and $465 million at March 31, 2019 and December 31, 2018 , respectively. 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 $3.9 billion and $5.0 billion at March 31, 2019 and December 31, 2018 , respectively. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities AFS and derivatives and the effect on DAC, VOBA, deferred sales inducements (“DSI”), future policy benefits and the policyholder dividend obligation, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: March 31, 2019 December 31, 2018 (In millions) Fixed maturity securities AFS $ 8,490 $ 3,890 Fixed maturity securities AFS with noncredit OTTI losses included in AOCI 29 25 Total fixed maturity securities AFS 8,519 3,915 Derivatives 1,813 1,742 Other 226 231 Subtotal 10,558 5,888 Amounts allocated from: Future policy benefits (15 ) (5 ) DAC, VOBA and DSI (810 ) (571 ) Policyholder dividend obligation (1,116 ) (428 ) Subtotal (1,941 ) (1,004 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (6 ) (5 ) Deferred income tax benefit (expense) (1,763 ) (982 ) Net unrealized investment gains (losses) $ 6,848 $ 3,897 The changes in net unrealized investment gains (losses) were as follows: Three Months (In millions) Balance, beginning of period $ 3,897 Cumulative effects of changes in accounting principles, net of income tax (Note 1) 17 Fixed maturity securities AFS on which noncredit OTTI losses have been recognized 4 Unrealized investment gains (losses) during the period 4,644 Unrealized investment gains (losses) relating to: Future policy benefits (10 ) DAC, VOBA and DSI (239 ) Policyholder dividend obligation (688 ) Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI (1 ) Deferred income tax benefit (expense) (776 ) Balance, end of period $ 6,848 Change in net unrealized investment gains (losses) $ 2,951 Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both March 31, 2019 and December 31, 2018 . Securities Lending and Repurchase Agreements Securities, Collateral and Reinvestment Portfolio A summary of the securities lending and repurchase agreements transactions is as follows: March 31, December 31, 2019 2018 Securities on Loan (1) Securities on Loan (1) Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value Amortized Cost Estimated Fair Value Cash Collateral Received from Counterparties (2), (3) Reinvestment Portfolio at Estimated Fair Value (In millions) Securities lending $ 12,123 $ 13,005 $ 13,275 $ 13,378 $ 12,521 $ 13,138 $ 13,351 $ 13,376 Repurchase agreements $ 1,779 $ 1,890 $ 1,860 $ 1,873 $ 974 $ 1,020 $ 1,000 $ 1,001 __________________ (1) Securities on loan in connection with securities lending are included within fixed maturities securities AFS and securities on loan in connection with repurchase agreements are included within fixed maturities securities AFS and short-term investments. (2) In connection with securities lending, in addition to cash collateral received, the Company received from counterparties security collateral of $59 million and $64 million at March 31, 2019 and December 31, 2018 , respectively , which may not be sold or re-pledged, unless the counterparty is in default, and is not reflected on the consolidated financial statements. (3) The securities lending liability for cash collateral is included within payables for collateral under securities loaned and other transactions, and the repurchase agreements liability for cash collateral is included within payables for collateral under securities loaned and other transactions and other liabilities. Contractual Maturities A summary of the remaining contractual maturities of securities lending agreements and repurchase agreements is as follows: March 31, December 31, 2019 2018 Remaining Maturities Remaining Maturities Open (1) 1 Month or Less Over 1 to 6 Months Total Open (1) 1 Month or Less Over 1 to 6 Months Total (In millions) Cash collateral liability by loaned security type: Securities lending: U.S. government and agency $ 2,010 $ 4,060 $ 7,205 $ 13,275 $ 1,970 $ 7,426 $ 3,955 $ 13,351 Repurchase agreements: U.S. government and agency $ — $ 1,860 $ — $ 1,860 $ — $ 1,000 $ — $ 1,000 __________________ (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. The estimated fair value of the securities on loan related to this cash collateral at March 31, 2019 was $2.0 billion , all 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. 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 securities lending and repurchase agreements reinvestment portfolios acquired with the cash collateral consisted principally of high quality, liquid, publicly-traded fixed maturity securities AFS, 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. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit 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, 2019 December 31, 2018 (In millions) Invested assets on deposit (regulatory deposits) $ 46 $ 47 Invested assets pledged as collateral (1) 20,591 20,207 Total invested assets on deposit and pledged as collateral $ 20,637 $ 20,254 __________________ (1) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4 of the Notes to the Consolidated Financial Statements included in the 2018 Annual Report) and derivative transactions (see Note 6 ). See “— Securities Lending and Repurchase Agreements” for information regarding securities supporting securities lending and repurchase agreement transactions and Note 4 for information regarding investments designated to the closed block. In addition, the restricted investment in Federal Home Loan Bank common stock was $724 million , at redemption value, at both March 31, 2019 and December 31, 2018 . Variable Interest Entities The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity, an estimate of the entity’s expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. Consolidated VIEs Creditors or beneficial interest holders of VIEs where the Company is the primary 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 relating to investment-related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at: March 31, 2019 December 31, 2018 Total Assets Total Liabilities Total Assets Total Liabilities (In millions) Real estate joint ventures (1) $ 1,411 $ — $ 1,394 $ — Renewable energy partnership (2) 103 — 102 — Investment fund (primarily mortgage loans) (3) 224 — 219 — Other investments 20 5 21 5 Total $ 1,758 $ 5 $ 1,736 $ 5 __________________ (1) The Company’s investment in these affiliated real estate joint ventures was $1.3 billion at both March 31, 2019 and December 31, 2018 . Other affiliates’ investments in these affiliated real estate joint ventures were $131 million and $123 million at March 31, 2019 and December 31, 2018 , respectively. (2) Assets of the renewable energy partnership primarily consisted of other invested assets. (3) The Company’s investment in this affiliated investment fund was $182 million and $178 million at March 31, 2019 and December 31, 2018 , respectively. An affiliate had an investment in this affiliated investment fund of $42 million and $41 million at March 31, 2019 and December 31, 2018 , 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, 2019 December 31, 2018 Carrying Amount Maximum Exposure to Loss (1) Carrying Amount Maximum Exposure to Loss (1) (In millions) Fixed maturity securities AFS: Structured Securities (2) $ 35,810 $ 35,810 $ 35,112 $ 35,112 U.S. and foreign corporate 757 757 669 669 Other limited partnership interests 4,018 6,724 3,979 6,405 Other invested assets 1,851 1,981 1,914 2,066 Real estate joint ventures 31 35 33 37 Total $ 42,467 $ 45,307 $ 41,707 $ 44,289 __________________ (1) The maximum exposure to loss relating to fixed maturity 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 $75 million and $93 million at March 31, 2019 and December 31, 2018 , respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2) For these variable interests, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity. As described in Note 13 , the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs for both the three months ended March 31, 2019 and 2018 . Net Investment Income The components of net investment income were as follows: Three Months 2019 2018 (In millions) Investment income: Fixed maturity securities AFS $ 1,768 $ 1,785 Equity securities 9 11 Mortgage loans 764 671 Policy loans 76 72 Real estate and real estate joint ventures 66 111 Other limited partnership interests 85 147 Cash, cash equivalents and short-term investments 43 20 FVO Securities (1) 23 — Operating joint venture 11 7 Other 59 79 Subtotal 2,904 2,903 Less: Investment expenses 259 202 Net investment income $ 2,645 $ 2,701 __________________ (1) Changes in estimated fair value subsequent to purchase for FVO securities (“FVO Securities”) still held as of March 31, 2019 included in net investment income were $23 million for the three months ended March 31, 2019 . There were no changes in estimated fair value subsequent to purchase for FVO Securities still held as of March 31, 2018 included in net investment income for the three months ended March 31, 2018 . See “— Related Party Investment Transactions” for discussion of affiliated net investment income and investment expenses. The Company invests in real estate joint ventures, other limited partnership interests and tax credit and renewable energy partnerships, and also does business through an operating joint venture, t he majority of which is accounted for under the equity method. Net investment income from other limited partnership interests and the operating joint venture, accounted for under the equity method, and real estate joint ventures and tax credit and renewable energy partnerships, primarily accounted for under the equity method, totaled $36 million and $133 milli |
