XML 61 R45.htm IDEA: XBRL DOCUMENT v3.24.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Consolidated Investments :
December 31, 2023
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$14,631 $(11)$191 $(469)$14,342 
Commercial mortgage-backed securities4,797 (22)23 (323)4,475 
Corporates20,133 (6)186 (2,417)17,896 
Hybrids668 — 3 (53)618 
Municipals1,826 — 14 (229)1,611 
Residential mortgage-backed securities2,507 (3)29 (104)2,429 
U.S. Government679 — 8 (9)678 
Foreign Governments365 — 3 (44)324 
Total available-for-sale securities$45,606 $(42)$457 $(3,648)$42,373 
December 31, 2022
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$12,209 $(8)$36 $(770)$11,467 
Commercial mortgage-backed/asset-backed securities3,337 (1)11 (284)3,063 
Corporates17,396 (22)32 (3,069)14,337 
Hybrids806 — 9 (84)731 
Municipals1,749 — 4 (293)1,460 
Residential mortgage-backed securities1,638 (8)6 (109)1,527 
U.S. Government287 — — (16)271 
Foreign Governments286 — — (47)239 
Total available-for-sale securities$37,708 $(39)$98 $(4,672)$33,095 
Investments Classified by Contractual Maturity Date
The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
December 31, 2023December 31, 2022
(in millions)(in millions)
Amortized Cost Fair ValueAmortized CostFair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less$703 $687 $536 $527 
Due after one year through five years4,320 4,209 3,288 3,089 
Due after five years through ten years3,195 3,048 2,171 1,939 
Due after ten years15,453 13,183 14,503 11,457 
23,671 21,127 20,498 17,012 
Other securities, which provide for periodic payments:
Asset-backed securities14,631 14,342 12,209 11,467 
Commercial mortgage-backed securities4,797 4,475 3,337 3,063 
Structured hybrids— — 26 26 
Residential mortgage-backed securities2,507 2,429 1,638 1,527 
21,935 21,246 17,210 16,083 
Total fixed maturity available-for-sale securities$45,606 $42,373 $37,708 $33,095 
Fair Value and Gross Unrealized Losses of Available-for-sale Securities
The fair value and gross unrealized losses of available-for-sale securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost were as follows:
December 31, 2023
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities(Dollars in millions)
Asset-backed securities$1,707 $(56)$5,835 $(404)$7,542 $(460)
Commercial mortgage-backed securities819 (53)1,922 (235)2,741 (288)
Corporates2,387 (134)10,739 (2,283)13,126 (2,417)
Hybrids60 (2)483 (51)543 (53)
Municipals399 (49)920 (179)1,319 (228)
Residential mortgage-backed securities336 (5)662 (89)998 (94)
U.S. Government84 — 159 (9)243 (9)
Foreign Government49 (3)188 (41)237 (44)
Total available-for-sale securities$5,841 $(302)$20,908 $(3,291)$26,749 $(3,593)
Total number of available-for-sale securities in an unrealized loss position less than twelve months1,035 
Total number of available-for-sale securities in an unrealized loss position twelve months or longer2,846
Total number of available-for-sale securities in an unrealized loss position 3,881 
December 31, 2022
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities
Asset-backed securities$7,001 $(410)$3,727 $(360)$10,728 $(770)
Commercial mortgage-backed securities2,079 (169)475 (116)2,554 (285)
Corporates9,913 (1,735)3,523 (1,330)13,436 (3,065)
Hybrids628 (83)3 (1)631 (84)
Municipals998 (180)352 (113)1,350 (293)
Residential mortgage-backed securities992 (51)184 (22)1,176 (73)
U.S. Government130 (7)140 (8)270 (15)
Foreign Government119 (32)59 (14)178 (46)
Total available-for-sale securities$21,860 $(2,667)$8,463 $(1,964)$30,323 $(4,631)
Total number of available-for-sale securities in an unrealized loss position less than twelve months3,114
Total number of available-for-sale securities in an unrealized loss position twelve months or longer1,296
Total number of available-for-sale securities in an unrealized loss position 4,410 
Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:
December 31, 2023December 31, 2022
Amortized Cost% of TotalAmortized Cost% of Total
Property Type:(Dollars in millions)
Hotel$18 1 %$18 1 %
Industrial616 24 %520 22 %
Mixed Use11 — %12 1 %
Multifamily1,012 40 %1,013 42 %
Office316 13 %330 14 %
Retail102 4 %105 4 %
Student Housing83 3 %83 3 %
Other392 15 %335 13 %
Total commercial mortgage loans, gross of valuation allowance $2,550 100 %$2,416 100 %
Allowance for expected credit loss(12)(10)
Total commercial mortgage loans, net of valuation allowance$2,538 $2,406 
U.S. Region:
East North Central$151 6 %$151 6 %
East South Central75 3 %76 3 %
Middle Atlantic354 14 %326 13 %
Mountain352 14 %355 15 %
New England168 6 %158 7 %
Pacific766 30 %708 28 %
South Atlantic563 22 %521 22 %
West North Central4 — %4 1 %
West South Central117 5 %117 5 %
Total commercial mortgage loans, gross of valuation allowance $2,550 100 %$2,416 100 %
Allowance for expected credit loss(12)(10)
Total commercial mortgage loans, net of valuation allowance$2,538 $2,406 
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios
The following tables presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances:
Debt-Service Coverage RatiosTotal Amount% of TotalEstimated Fair Value% of Total
>1.251.00 - 1.25<1.00
December 31, 2023(Dollars in millions)
LTV Ratios:
Less than 50.00%$519 $4 $10 $533 21 %$510 23 %
50.00% to 59.99%764 — — 764 30 %679 30 %
60.00% to 74.99%1,160 56 — 1,216 48 %1,028 46 %
75.00% to 84.99%— 6 9 15 1 %14 1 %
Commercial mortgage loans (a)$2,443 $66 $19 $2,528 100 %$2,231 100 %
December 31, 2022
LTV Ratios:
Less than 50.00%$511 $4 $11 $526 22 %$490 24 %
50.00% to 59.99%706 — — 706 29 %615 30 %
60.00% to 74.99%1,154 3 — 1,157 48 %955 45 %
75.00% to 84.99%— — 18 18 1 %14 1 %
Commercial mortgage loans$2,371 $7 $29 $2,407 100 %$2,074 100 %
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million and $9 million at December 31, 2023 and 2022, respectively.
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
LTV(In millions)
Less than 50.00%$85 $17 $77 $232 $— $122 $533 
50.00% to 59.99%53 149 267 158 — 137 764 
60.00% to 74.99%69 113 912 122 — — 1,216 
75.00% to 84.99%6 9 — — — — 15 
Total commercial mortgage loans (a)$213 $288 $1,256 $512 $— $259 2,528 
DSCR
Greater than 1.25x$154 $276 $1,256 $512 $— $245 $2,443 
1.00x - 1.25x59 3 — — — 4 66 
Less than 1.00x— 9 — — — 10 19 
Total commercial mortgage loans (a)$213 $288 $1,256 $512 $— $259 $2,528 
December 31, 2022
Amortized Cost by Origination Year
20222021202020192018PriorTotal
LTV(In millions)
Less than 50.00%$70 $120 $207 $— $— $129 $526 
50.00% to 59.99%149 268 158 — — 131 706 
60.00% to 74.99%113 912 123 — — 9 1,157 
75.00% to 84.99%9 — — — — 9 18 
Total commercial mortgage loans (a)$341 $1,300 $488 $— $— $278 $2,407 
DSCR
Greater than 1.25x$329 $1,300 $488 $— $— $254 $2,371 
1.00x - 1.25x3 — — — — 4 7 
Less than 1.00x9 — — — — 20 29 
Total commercial mortgage loans (a)$341 $1,300 $488 $— $— $278 $2,407 
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million for December 31, 2023, and an amortized cost and estimated fair value of $9 million for December 31, 2022.
Schedule of Residential Mortgage Loans by State The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances:
December 31, 2023
U.S. State:Amortized Cost (In millions)% of Total
Florida$163 6 %
New York129 5 %
Texas129 5 %
All Other States (1)2,431 85 %
Total residential mortgage loans, gross of valuation allowance $2,852 100 %
Allowance for expected credit loss(54)
Total residential mortgage loans, net of valuation allowance$2,798 
(1) The individual concentration of each state is equal to or less than to 5%.
December 31, 2022
U.S. State:Amortized Cost (In millions)% of Total
Florida$324 15 %
Texas215 10 %
New Jersey172 8 %
Pennsylvania153 7 %
California139 6 %
New York138 6 %
Georgia125 6 %
All other states (a)914 42 %
Total residential mortgage loans, gross of valuation allowance$2,180 100 %
Allowance for expected credit loss(32)
Total residential mortgage loans, net of valuation allowance$2,148 
(1) The individual concentration of each state is less than 5%.
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming The credit quality of RMLs was as follows:
December 31, 2023December 31, 2022
Performance indicators:Amortized Cost% of TotalAmortized Cost% of Total
(Dollars in millions)
Performing$2,795 98 %$2,118 97 %
Non-performing57 2 %62 3 %
Total residential mortgage loans, gross of valuation allowance$2,852 100 %$2,180 100 %
Allowance for expected loan loss(54)— (32)— 
Total residential mortgage loans, net of valuation allowance$2,798 100 %$2,148 100 %
Loans Segregated by Risk Rating Exposure
CMLs segregated by aging of loans and charge offs (by year of origination) were as follows for the year ended December 31, 2023:
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
(In millions)
Current (less than 30 days past due)$213 $288 $1,256 $512 $— $259 $2,528 
30-89 days past due— — — — — — — 
90 days or more past due— — — — — — — 
Total commercial mortgage loans (a)$213 $288 $1256 $512 $— $259 $2,528 
Charge offs$— $— $— $— $— $3 $3 
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million at December 31, 2023.
CMLs segregated by aging of loans (by year of origination) were as follows for the year ended December 31, 2022:
December 31, 2022
Amortized Cost by Origination Year
20222021202020192018PriorTotal
(In millions)
Current (less than 30 days past due)$341 $1,300 $488 $— $— $269 $2,398 
30-89 days past due— — — — — — — 
90 days or more past due— — — — — 9 9 
Total commercial mortgage loans(a)$341 $1,300 $488 $— $— $278 $2,407 
(a) Excludes loans under development with an amortized cost and estimated fair value of $9 million at December 31, 2022.
. RMLs segregated by aging of the loans (by year of origination) as of December 31, 2023 and 2022 were as follows, gross of valuation allowances (in millions):
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
Residential mortgages(In millions)
Current (less than 30 days past due)$373 $985 $854 $192 $183 $192 $2,779 
30-89 days past due— 4 7 3 — 2 16 
90 days or more past due— 6 16 13 21 1 57 
Total residential mortgages$373 $995 $877 $208 $204 $195 $2,852 
December 31, 2022
Amortized Cost by Origination Year
20222021202020192018PriorTotal
Residential mortgages(In millions)
Current (less than 30 days past due)$766 $884 $214 $185 $23 $33 $2,105 
30-89 days past due2 7 — 4 — — 13 
90 days or more past due3 9 15 34 1 — 62 
Total residential mortgages$771 $900 $229 $223 $24 $33 $2,180 
Schedule of Nonaccrual Loans by Amortized Cost
The amortized cost of non-accrual loans as of December 31, 2023 and 2022 were as follows:
Amortized cost of loans on non-accrualDecember 31, 2023December 31, 2022
(In millions)
Residential mortgage$57 $62 
Commercial mortgage— 9 
Total non-accrual mortgages$57 $71 
Changes in Allowance for Expected Credit Losses on Loans
The allowances for our mortgage loan portfolio is summarized as follows (in millions):
Year ended December 31, 2023Year ended December 31, 2022
Residential MortgageCommercial MortgageTotalResidential MortgageCommercial MortgageTotal
Beginning Balance$32 $10 $42 $25 $6 $31 
Provision for loan losses22 5 27 7 4 11 
Ending Balance$54 $12 $66 $32 $10 $42 
Year ended December 31, 2021
Residential MortgageCommercial MortgageTotal
Beginning Balance37 2 39 
Provision for loan losses(12)4 (8)
Ending Balance$25 $6 $31 
Schedule of Sources of Net Investment Income Reported
The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows:
Year ended
December 31, 2023December 31, 2022December 31, 2021
(In millions)
Fixed maturity securities, available-for-sale$1,911 $1,489 $1,267 
Equity securities33 31 23 
Preferred securities52 67 63 
Mortgage loans229 186 131 
Invested cash and short-term investments151 61 7 
Limited partnerships231 110 589 
Tax deferred property exchange income166 103 16 
Other investments91 41 32 
Gross investment income2,864 2,088 2,128 
Investment expense(257)(197)(167)
Interest and investment income$2,607 $1,891 $1,961 
Recognized Gains and Losses, net
Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows:
Year ended
December 31, 2023December 31, 2022December 31, 2021
(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities$(155)$(253)$111 
Net realized/unrealized (losses) gains on equity securities (1)23 (386)(434)
Net realized/unrealized (losses) gains on preferred securities (2)(1)(230)(14)
Realized (losses) gains on other invested assets(25)(68)8 
Change in allowance for expected credit losses(36)(41)8 
Derivatives and embedded derivatives:
Realized (losses) gains on certain derivative instruments(211)(164)456 
Unrealized (losses) gains on certain derivative instruments358 (693)159 
Change in fair value of reinsurance related embedded derivatives(128)352 34 
Change in fair value of other derivatives and embedded derivatives11 (10)6 
Realized (losses) gains on derivatives and embedded derivatives30 (515)655 
Recognized gains and losses, net$(164)$(1,493)$334 
(1) Includes net valuation (losses) gains of $47 million, $(387) million and $(436) million for the years ended December 31, 2023, 2022, and 2021, respectively.
(2) Includes net valuation losses of $80 million, $198 million, and $14 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Proceeds from Sale of Fixed Maturity Available-for-sale Securities
The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions):
Year ended
December 31, 2023December 31, 2022December 31, 2021
Proceeds$2,698 $3,264 $4,749 
Gross gains18 14 158 
Gross losses(145)(252)(49)
Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs
The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs:
December 31, 2023December 31, 2022
Carrying ValueMaximum Loss ExposureCarrying ValueMaximum Loss Exposure
(In millions)
Investments in unconsolidated affiliates $3,071 $4,806 $2,427 $4,030 
Fixed maturity securities20,837 22,346 15,680 17,404 
Total unconsolidated VIE investments$23,908 $27,152 $18,107 $21,434 
Schedule of Investment Concentrations
Our underlying investment concentrations that exceed 10% of shareholders equity are as follows:
December 31, 2023December 31, 2022
(In millions)
Blackstone Wave Asset Holdco (1)
$725 $741 
__________________
(1)Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries.
Title insurance premiums as a percentage of the total title insurance premiums written from those five states are detailed as follows:
 202320222021
Texas14.3 %15.0 %13.0 %
California13.0 %12.0 %14.6 %
Florida10.7 %10.6 %9.3 %
Illinois6.0 %5.3 %5.1 %
Pennsylvania4.9 %5.2 %5.1 %