Investments (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] |
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Consolidated Investments |
: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | Amortized Cost | | Allowance for Expected Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | | Available-for-sale securities | (In millions) | | | Asset-backed securities | $ | 14,631 | | | $ | (11) | | | $ | 191 | | | $ | (469) | | | $ | 14,342 | | | | Commercial mortgage-backed securities | 4,797 | | | (22) | | | 23 | | | (323) | | | 4,475 | | | | Corporates | 20,133 | | | (6) | | | 186 | | | (2,417) | | | 17,896 | | | | Hybrids | 668 | | | — | | | 3 | | | (53) | | | 618 | | | | Municipals | 1,826 | | | — | | | 14 | | | (229) | | | 1,611 | | | | Residential mortgage-backed securities | 2,507 | | | (3) | | | 29 | | | (104) | | | 2,429 | | | | U.S. Government | 679 | | | — | | | 8 | | | (9) | | | 678 | | | | Foreign Governments | 365 | | | — | | | 3 | | | (44) | | | 324 | | | | Total available-for-sale securities | $ | 45,606 | | | $ | (42) | | | $ | 457 | | | $ | (3,648) | | | $ | 42,373 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Amortized Cost | | Allowance for Expected Credit Losses | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | | Available-for-sale securities | (In millions) | | | Asset-backed securities | $ | 12,209 | | | $ | (8) | | | $ | 36 | | | $ | (770) | | | $ | 11,467 | | | | Commercial mortgage-backed/asset-backed securities | 3,337 | | | (1) | | | 11 | | | (284) | | | 3,063 | | | | Corporates | 17,396 | | | (22) | | | 32 | | | (3,069) | | | 14,337 | | | | Hybrids | 806 | | | — | | | 9 | | | (84) | | | 731 | | | | Municipals | 1,749 | | | — | | | 4 | | | (293) | | | 1,460 | | | | Residential mortgage-backed securities | 1,638 | | | (8) | | | 6 | | | (109) | | | 1,527 | | | | U.S. Government | 287 | | | — | | | — | | | (16) | | | 271 | | | | Foreign Governments | 286 | | | — | | | — | | | (47) | | | 239 | | | | Total available-for-sale securities | $ | 37,708 | | | $ | (39) | | | $ | 98 | | | $ | (4,672) | | | $ | 33,095 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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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, 2023 | December 31, 2022 | | | | | | (in millions) | (in millions) | | | | | | Amortized Cost | | Fair Value | Amortized Cost | | Fair 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 years | 4,320 | | | 4,209 | | 3,288 | | | 3,089 | | | | | | Due after five years through ten years | 3,195 | | | 3,048 | | 2,171 | | | 1,939 | | | | | | Due after ten years | 15,453 | | | 13,183 | | 14,503 | | | 11,457 | | | | | | | 23,671 | | | 21,127 | | 20,498 | | | 17,012 | | | | | | Other securities, which provide for periodic payments: | | | | | | | | | | | Asset-backed securities | 14,631 | | | 14,342 | | 12,209 | | | 11,467 | | | | | | Commercial mortgage-backed securities | 4,797 | | | 4,475 | | 3,337 | | | 3,063 | | | | | | Structured hybrids | — | | | — | | 26 | | | 26 | | | | | | Residential mortgage-backed securities | 2,507 | | | 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 | | | | | |
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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 months | | 12 months or longer | | Total | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | Available-for-sale securities | (Dollars in millions) | Asset-backed securities | $ | 1,707 | | | $ | (56) | | | $ | 5,835 | | | $ | (404) | | | $ | 7,542 | | | $ | (460) | | Commercial mortgage-backed securities | 819 | | | (53) | | | 1,922 | | | (235) | | | 2,741 | | | (288) | | Corporates | 2,387 | | | (134) | | | 10,739 | | | (2,283) | | | 13,126 | | | (2,417) | | Hybrids | 60 | | | (2) | | | 483 | | | (51) | | | 543 | | | (53) | | Municipals | 399 | | | (49) | | | 920 | | | (179) | | | 1,319 | | | (228) | | Residential mortgage-backed securities | 336 | | | (5) | | | 662 | | | (89) | | | 998 | | | (94) | | U.S. Government | 84 | | | — | | | 159 | | | (9) | | | 243 | | | (9) | | Foreign Government | 49 | | | (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 months | | | | | | | | | | | 1,035 | | Total number of available-for-sale securities in an unrealized loss position twelve months or longer | | | | | | | | | | | 2,846 | Total number of available-for-sale securities in an unrealized loss position | | | | | | | | | | | 3,881 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Less than 12 months | | 12 months or longer | | Total | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | | Fair Value | | Gross Unrealized Losses | Available-for-sale securities | | | | | | | | | | | | Asset-backed securities | $ | 7,001 | | | $ | (410) | | | $ | 3,727 | | | $ | (360) | | | $ | 10,728 | | | $ | (770) | | Commercial mortgage-backed securities | 2,079 | | | (169) | | | 475 | | | (116) | | | 2,554 | | | (285) | | Corporates | 9,913 | | | (1,735) | | | 3,523 | | | (1,330) | | | 13,436 | | | (3,065) | | Hybrids | 628 | | | (83) | | | 3 | | | (1) | | | 631 | | | (84) | | Municipals | 998 | | | (180) | | | 352 | | | (113) | | | 1,350 | | | (293) | | Residential mortgage-backed securities | 992 | | | (51) | | | 184 | | | (22) | | | 1,176 | | | (73) | | U.S. Government | 130 | | | (7) | | | 140 | | | (8) | | | 270 | | | (15) | | Foreign Government | 119 | | | (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 months | | | | | | | | | | | 3,114 | Total number of available-for-sale securities in an unrealized loss position twelve months or longer | | | | | | | | | | | 1,296 | Total number of available-for-sale securities in an unrealized loss position | | | | | | | | | | | 4,410 | |
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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, 2023 | | December 31, 2022 | | Amortized Cost | | % of Total | | Amortized Cost | | % of Total | Property Type: | (Dollars in millions) | | | | | | | | | | | | | | | | | Hotel | $ | 18 | | | 1 | % | | $ | 18 | | | 1 | % | Industrial | 616 | | | 24 | % | | 520 | | | 22 | % | Mixed Use | 11 | | | — | % | | 12 | | | 1 | % | Multifamily | 1,012 | | | 40 | % | | 1,013 | | | 42 | % | Office | 316 | | | 13 | % | | 330 | | | 14 | % | Retail | 102 | | | 4 | % | | 105 | | | 4 | % | Student Housing | 83 | | | 3 | % | | 83 | | | 3 | % | Other | 392 | | | 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 Central | 75 | | | 3 | % | | 76 | | | 3 | % | Middle Atlantic | 354 | | | 14 | % | | 326 | | | 13 | % | Mountain | 352 | | | 14 | % | | 355 | | | 15 | % | New England | 168 | | | 6 | % | | 158 | | | 7 | % | Pacific | 766 | | | 30 | % | | 708 | | | 28 | % | South Atlantic | 563 | | | 22 | % | | 521 | | | 22 | % | West North Central | 4 | | | — | % | | 4 | | | 1 | % | West South Central | 117 | | | 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 | | | |
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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 Ratios | | Total Amount | | % of Total | | Estimated Fair Value | | % of Total | | >1.25 | | 1.00 - 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 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Total | 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 - 1.25x | 59 | | | 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 | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Total | 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 - 1.25x | 3 | | | — | | | — | | | — | | | — | | | 4 | | | 7 | | Less than 1.00x | 9 | | | — | | | — | | | — | | | — | | | 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.
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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 York | 129 | | | 5 | % | Texas | 129 | | | 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 | % | Texas | 215 | | | 10 | % | New Jersey | 172 | | | 8 | % | Pennsylvania | 153 | | | 7 | % | California | 139 | | | 6 | % | New York | 138 | | | 6 | % | Georgia | 125 | | | 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%.
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Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming |
The credit quality of RMLs was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | December 31, 2022 | Performance indicators: | Amortized Cost | | % of Total | | Amortized Cost | | % of Total | | (Dollars in millions) | Performing | $ | 2,795 | | | 98 | % | | $ | 2,118 | | | 97 | % | Non-performing | 57 | | | 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 | % |
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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 | | 2023 | | 2022 | | 2021 | | 2020 | | 2019 | | Prior | | Total | | (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 | | 2022 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior | | Total | | (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 | | | | | | | | | | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | | | | | | | | | 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 | | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | Residential mortgages | (In millions) | Current (less than 30 days past due) | $ | 766 | | $ | 884 | | $ | 214 | | $ | 185 | | $ | 23 | | $ | 33 | | $ | 2,105 | | 30-89 days past due | 2 | | 7 | | — | | 4 | | — | | — | | 13 | | 90 days or more past due | 3 | | 9 | | 15 | | 34 | | 1 | | — | | 62 | | Total residential mortgages | $ | 771 | | $ | 900 | | $ | 229 | | $ | 223 | | $ | 24 | | $ | 33 | | $ | 2,180 | |
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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-accrual | December 31, 2023 | December 31, 2022 | | (In millions) | Residential mortgage | $ | 57 | | $ | 62 | | Commercial mortgage | — | | 9 | | Total non-accrual mortgages | $ | 57 | | $ | 71 | | | | | | | | | | | | | | | | | | | |
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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, 2023 | | Year ended December 31, 2022 | | | | | | | | | | | | | | Residential Mortgage | | Commercial Mortgage | | Total | | Residential Mortgage | | Commercial Mortgage | | Total | Beginning Balance | | | | | | | $ | 32 | | | $ | 10 | | | $ | 42 | | | $ | 25 | | | $ | 6 | | | $ | 31 | | Provision for loan losses | | | | | | | 22 | | | 5 | | | 27 | | | 7 | | | 4 | | | 11 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ending Balance | | | | | | | $ | 54 | | | $ | 12 | | | $ | 66 | | | $ | 32 | | | $ | 10 | | | $ | 42 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2021 | | | | | | | | | | | | Residential Mortgage | | Commercial Mortgage | | Total | Beginning Balance | | | | | | | 37 | | | 2 | | | 39 | | Provision for loan losses | | | | | | | (12) | | | 4 | | | (8) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Ending Balance | | | | | | | $ | 25 | | | $ | 6 | | | $ | 31 | |
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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, 2023 | | December 31, 2022 | | December 31, 2021 | | | | | | (In millions) | Fixed maturity securities, available-for-sale | | | | | $ | 1,911 | | | $ | 1,489 | | | $ | 1,267 | | Equity securities | | | | | 33 | | | 31 | | | 23 | | Preferred securities | | | | | 52 | | | 67 | | | 63 | | Mortgage loans | | | | | 229 | | | 186 | | | 131 | | | | | | | | | | | | Invested cash and short-term investments | | | | | 151 | | | 61 | | | 7 | | | | | | | | | | | | Limited partnerships | | | | | 231 | | | 110 | | | 589 | | Tax deferred property exchange income | | | | | 166 | | | 103 | | | 16 | | Other investments | | | | | 91 | | | 41 | | | 32 | | Gross investment income | | | | | 2,864 | | | 2,088 | | | 2,128 | | Investment expense | | | | | (257) | | | (197) | | | (167) | | Interest and investment income | | | | | $ | 2,607 | | | $ | 1,891 | | | $ | 1,961 | |
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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, 2023 | | December 31, 2022 | | December 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 instruments | | | | | 358 | | | (693) | | | 159 | | Change in fair value of reinsurance related embedded derivatives | | | | | (128) | | | 352 | | | 34 | | Change in fair value of other derivatives and embedded derivatives | | | | | 11 | | | (10) | | | 6 | | Realized (losses) gains on derivatives and embedded derivatives | | | | | 30 | | | (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.
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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, 2023 | | December 31, 2022 | | December 31, 2021 | Proceeds | | | | | $ | 2,698 | | | $ | 3,264 | | | $ | 4,749 | | Gross gains | | | | | 18 | | | 14 | | | 158 | | Gross losses | | | | | (145) | | | (252) | | | (49) | |
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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, 2023 | | December 31, 2022 | | Carrying Value | | Maximum Loss Exposure | | Carrying Value | | Maximum Loss Exposure | | (In millions) | Investments in unconsolidated affiliates | $ | 3,071 | | | $ | 4,806 | | | $ | 2,427 | | | $ | 4,030 | | Fixed maturity securities | 20,837 | | | 22,346 | | | 15,680 | | | 17,404 | | Total unconsolidated VIE investments | $ | 23,908 | | | $ | 27,152 | | | $ | 18,107 | | | $ | 21,434 | |
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Schedule of Investment Concentrations |
Our underlying investment concentrations that exceed 10% of shareholders equity are as follows: | | | | | | | | | | | | | | | December 31, 2023 | | December 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: | | | | | | | | | | | | | | | | | | | 2023 | | 2022 | | 2021 | Texas | 14.3 | % | | 15.0 | % | | 13.0 | % | California | 13.0 | % | | 12.0 | % | | 14.6 | % | Florida | 10.7 | % | | 10.6 | % | | 9.3 | % | Illinois | 6.0 | % | | 5.3 | % | | 5.1 | % | Pennsylvania | 4.9 | % | | 5.2 | % | | 5.1 | % |
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