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Investments (excluding Consolidated Investment Entities) (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Fixed Maturities

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2020:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		Allowance for credit losses
Fixed maturities:
U.S. Treasuries	$	1,033	$	438	$	—	$	—	$	1,471	$	—
U.S. Government agencies and authorities	74		28		—		—		102		—
State, municipalities and political subdivisions	1,166		180		—		—		1,346		—
U.S. corporate public securities	13,366		3,028		7		—		16,387		—
U.S. corporate private securities	5,653		828		35		—		6,446		—
Foreign corporate public securities and foreign governments(1)	4,023		714		1		—		4,736		—
Foreign corporate private securities(1)	4,220		470		29		—		4,646		15




Residential mortgage-backed securities	5,370		255		17		20		5,626		2
Commercial mortgage-backed securities	3,882		290		40		—		4,131		1
Other asset-backed securities	2,110		46		10		—		2,138		8

Total fixed maturities, including securities pledged	40,897		6,277		139		20		47,029		26
Less: Securities pledged	355		95		1		—		449		—
Total fixed maturities	$	40,542	$	6,182	$	138	$	20	$	46,580	$	26

(1) Primarily U.S. dollar denominated.

(2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Consolidated Statements of Operations.

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	1,074	$	308	$	—	$	—	$	1,382	$	—
U.S. Government agencies and authorities	74		21		—		—		95		—
State, municipalities and political subdivisions	1,220		103		—		—		1,323		—
U.S. corporate public securities	12,980		1,977		19		—		14,938		—
U.S. corporate private securities	5,568		488		21		—		6,035		—
Foreign corporate public securities and foreign governments(1)	3,887		460		6		—		4,341		—
Foreign corporate private securities(1)	4,545		288		2		—		4,831		—




Residential mortgage-backed securities	4,999		200		14		19		5,204		5
Commercial mortgage-backed securities	3,402		176		4		—		3,574		—
Other asset-backed securities	2,058		22		25		—		2,055		1

Total fixed maturities, including securities pledged	39,807		4,043		91		19		43,778		6
Less: Securities pledged	1,264		154		10		—		1,408		—
Total fixed maturities	$	38,543	$	3,889	$	81	$	19	$	42,370	$	6

(1) Primarily U.S. dollar denominated.

(3) Represents OTTI reported as a component of Other comprehensive income (loss).

(4) Amount excludes $336 of net unrealized gains on impaired available-for-sale securities.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturities, including securities pledged, as of December 31, 2020, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. MBS and Other ABS are shown separately because they are not due at a single maturity date.


	Amortized Cost		Fair Value
Due to mature:
One year or less	$	1,222	$	1,239
After one year through five years	5,040		5,431
After five years through ten years	7,402		8,485
After ten years	15,871		19,979
Mortgage-backed securities	9,252		9,757
Other asset-backed securities	2,110		2,138
Fixed maturities, including securities pledged	$	40,897	$	47,029

U.S. and Foreign Corporate Securities by Industry

The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:


	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
December 31, 2020
Communications	$	1,629	$	425	$	1	$	2,053
Financial	4,419		811		3		5,227
Industrial and other companies	11,670		2,088		15		13,743
Energy	2,594		474		28		3,040
Utilities	4,963		944		1		5,906
Transportation	1,331		196		23		1,504
Total	$	26,606	$	4,938	$	71	$	31,473

December 31, 2019
Communications	$	1,694	$	295	$	—	$	1,989
Financial	4,067		535		1		4,601
Industrial and other companies	11,669		1,274		16		12,927
Energy	2,819		368		27		3,160
Utilities	4,895		561		1		5,455
Transportation	1,206		116		2		1,320
Total	$	26,350	$	3,149	$	47	$	29,452

Schedule of Securities Borrowed Under Securities Lending Transactions

The following table presents borrowings under securities lending transactions by asset class pledged for the dates indicated:


	December 31, 2020 (1)(2)		December 31, 2019 (1)(2)
U.S. Treasuries	$	90	$	213
U.S. Government agencies and authorities	3		15
U.S. corporate public securities	76		684
Equity securities	—		—

Foreign corporate public securities and foreign governments	33		289
Payables under securities loan agreements	$	202	$	1,201

(1) As of December 31, 2020 and 2019, borrowings under securities lending transactions include cash collateral of $106 and $1,055, respectively.

(2) As of December 31, 2020 and 2019, borrowings under securities lending transactions include non-cash collateral of $96 and $146, respectively.

Financing Receivable, Allowance for Credit Loss

The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the period presented:


	Year Ended December 31, 2020
	Residential mortgage-backed securities		Commercial mortgage-backed securities		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1	$	—	$	—	$	—	$	—	$	—
Credit losses on securities for which credit losses were not previously recorded	2		1		15		8		26
Initial allowance for credit losses recognized on financial assets accounted for as PCD	—		—		—		—		—
Reductions for securities sold during the period	—		—		—		—		—
Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost	—		—		—		—		—
Increase (decrease) on securities with allowance recorded in previous period	—		—		—		—		—
Write-offs	—		—		—		—		—
Recoveries of amounts previously written-off	—		—		—		—		—
Balance as of December 31	$	2	$	1	$	15	$	8	$	26

Schedule of Unrealized Loss on Investments

The following table presents available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by market sector and duration as of the date indicated:


	Twelve Months or Less Below Amortized Cost				More Than Twelve Months Below Amortized Cost						Total
	Fair Value		Unrealized Capital Losses			Number of securities	Fair Value		Unrealized Capital Losses			Number of securities	Fair Value		Unrealized Capital Losses		Number of securities
December 31, 2020
U.S. Treasuries	$	12	$	—		2	$	—	$	—		—	$	12	$	—	2

State, municipalities and political subdivisions	7		—			2	—		—			—	7		—		2
U.S. corporate public securities	241		5			163	23		2			4	264		7		167
U.S. corporate private securities	419		12			30	112		23			8	531		35		38
Foreign corporate public securities and foreign governments	45		—			19	9		1			2	54		1		21
Foreign corporate private securities	238		29			19	6		—			1	244		29		20
Residential mortgage-backed	658		12			150	147		5			75	805		17		225
Commercial mortgage-backed	844		39			127	36		1			7	880		40		134
Other asset-backed	261		2			61	376		8			110	637		10		171
Total	$	2,725	$	99		573	$	709	$	40		207	$	3,434	$	139	780

The Company concluded that an allowance for credit losses was unnecessary for these securities because the unrealized losses are interest rate related.

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2019:


	Twelve Months or Less Below Amortized Cost					More Than Twelve Months Below Amortized Cost			Total
	Fair Value		Unrealized Capital Losses				Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	2	$	—	*		$	21	$	—	*	$	23	$	—	*

State, municipalities and political subdivisions	25		—		*		1		—		*	26		—		*
U.S. corporate public securities	122		3				199		16			321		19
U.S. corporate private securities	113		1				195		20			308		21
Foreign corporate public securities and foreign governments	15		—		*		103		6			118		6
Foreign corporate private securities	36		—		*		78		2			114		2
Residential mortgage-backed	730		8				194		6			924		14
Commercial mortgage-backed	472		4				18		—		*	490		4
Other asset-backed	308		5				641		20			949		25
Total	$	1,823	$	21			$	1,450	$	70		$	3,273	$	91
Total number of securities in an unrealized loss position	334						338					672

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table identifies the Company's impairments included in the Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:


	Year Ended December 31,
	2020			2019				2018
	Impairment		No. of Securities	Impairment			No. of Securities	Impairment		No. of Securities

State, municipalities and political subdivisions	$	—	13	$	—	*	8	$	—	—
U.S. corporate public securities	32		83	18			38	6		2
U.S. corporate private securities	1		9	1			18	—		—
Foreign corporate public securities and foreign governments(1)	4		40	5			22	2		3
Foreign corporate private securities(1)	8		17	26			12	15		1
Residential mortgage-backed	7		60	5			89	5		61
Commercial mortgage-backed	28		129	1			34	—		1
Other asset-backed	1		75	4			94	—		1




Total	$	81	426	$	60		315	$	28	69
Credit Impairments	$	—		$	28			$	19
Intent Impairments	$	81		$	32			$	9

(1) Primarily U.S. dollar denominated.

* Less than $1

Mortgage Loans by Loan to Value Ratio

The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of December 31, 2020 and December 31, 2019, respectively.



	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
As of December 31, 2020
2020	$	202	$	251	$	39	$	—	$	—	$	492
2019	327		230		125		—		—		682
2018	211		158		73		—		—		442
2017	645		427		5		—		—		1,077
2016	627		313		2		—		—		942
2015	639		94		—		—		—		733
2014 and prior	1,886		554		22		—		—		2,462
Total	$	4,537	$	2,027	$	266	$	—	$	—	$	6,830



As of December 31, 2019

2019	$	121	$	138	$	228	$	211	$	26	$	724
2018	11		141		188		159		14		513
2017	153		283		697		12		15		1,160
2016	122		221		578		50		—		971
2015	39		502		249		15		—		805
2014 and prior	241		438		1,770		256		1		2,706
Total	$	687	$	1,723	$	3,710	$	703	$	56	$	6,879

Mortgage Loans by Debt Service Coverage Ratio

The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of December 31, 2020 and December 31, 2019, respectively.



	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Commercial mortgage loans secured by land or construction loans		Total
As of December 31, 2020
2020	$	356	$	116	$	20	$	—	$	—	$	492
2019	455		108		51		68		—		682
2018	205		90		92		55		—		442
2017	630		243		133		71		—		1,077
2016	841		58		40		3		—		942
2015	685		36		6		6		—		733
2014 and prior	2,029		247		115		71		—		2,462
Total	$	5,201	$	898	$	457	$	274	$	—	$	6,830



As of December 31, 2019

2019	$	493	$	165	$	66	$	—	$	—	$	724
2018	351		13		88		61		—		513
2017	608		292		167		93		—		1,160
2016	873		63		31		4		—		971
2015	743		50		6		6		—		805
2014 and prior	2,265		210		139		92		—		2,706
Total	$	5,333	$	793	$	497	$	256	$	—	$	6,879

Mortgage Loans by Geographic Location of Collateral

The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of December 31, 2020 and December 31, 2019, respectively.



	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
As of December 31, 2020
2020	$	107	$	187	$	41	$	39	$	38	$	39	$	2	$	15	$	24	$	492
2019	98		194		21		169		69		61		18		13		39		682
2018	105		141		70		37		59		15		—		15		—		442
2017	172		125		417		155		102		62		6		38		—		1,077
2016	274		174		185		46		103		114		13		27		6		942
2015	205		185		167		37		53		64		11		11		—		733
2014 and prior	685		499		354		200		246		226		59		149		44		2,462
Total	$	1,646	$	1,505	$	1,255	$	683	$	670	$	581	$	109	$	268	$	113	$	6,830



As of December 31, 2019

2019	$	102	$	200	$	35	$	187	$	67	$	63	$	18	$	15	$	37	$	724
2018	106		182		73		47		60		16		—		14		15		513
2017	176		128		464		171		107		63		6		45		—		1,160
2016	276		181		193		47		107		119		14		28		6		971
2015	227		218		171		43		54		68		12		12		—		805
2014 and prior	740		553		390		224		275		242		67		169		46		2,706
Total	$	1,627	$	1,462	$	1,326	$	719	$	670	$	571	$	117	$	283	$	104	$	6,879

Mortgage Loans by Property Type of Collateral

The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of December 31, 2020 and December 31, 2019, respectively.



	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
As of December 31, 2020
2020	$	59	$	94	$	165	$	174	$	—	$	—	$	—	$	492
2019	55		111		384		95		37		—		—		682
2018	77		109		191		25		5		35		—		442
2017	138		505		252		178		4		—		—		1,077
2016	175		301		255		187		10		9		5		942
2015	164		279		125		78		20		67		—		733
2014 and prior	1,112		205		445		348		97		201		54		2,462
Total	$	1,780	$	1,604	$	1,817	$	1,085	$	173	$	312	$	59	$	6,830



As of December 31, 2019

2019	$	57	$	130	$	400	$	105	$	32	$	—	$	—	$	724
2018	84		122		221		46		4		36		—		513
2017	141		557		268		190		4		—		—		1,160
2016	178		312		263		192		10		10		6		971
2015	198		285		133		90		30		69		—		805
2014 and prior	1,215		230		512		376		108		209		56		2,706
Total	$	1,873	$	1,636	$	1,797	$	999	$	188	$	324	$	62	$	6,879

Allowance for Credit Losses for Commercial Mortgage Loans

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:


	2020			2019
Allowance for credit losses, balance at January 1	$	16	(1)	$	2
Credit losses on mortgage loans for which credit losses were not previously recorded	7			—

Increase (decrease) on mortgage loans with allowance recorded in previous period	69			(1)
Provision for expected credit losses	92			—
Write-offs	(3)			—
Recoveries of amounts previously written off	—			—
Allowance for credit losses, balance at December 31	$	89		$	1

(1) On January 1, 2020, as a result of implementing ASU 2016-13 Measurement of Credit Losses of Financial Instruments, the company recorded a transition adjustment on a continuing basis for Allowance for credit losses on mortgage loans on real estate of $15.

Financing Receivable, Past Due

The following table presents past due commercial mortgage loans as of the dates indicated:


	December 31, 2020		December 31, 2019
Delinquency:
Current	$	6,825	$	6,879
30-59 days past due	—		—
60-89 days past due	—		—
Greater than 90 days past due	5		—
Total	$	6,830	$	6,879

Net Investment Income

The following table summarizes Net investment income for the periods indicated:


	Year Ended December 31,
	2020		2019		2018
Fixed maturities	$	2,401	$	2,241	$	2,181
Equity securities	14		11		12
Mortgage loans on real estate	295		334		335
Policy loans	45		42		47
Short-term investments and cash equivalents	4		12		14
Other	223		222		146
Gross investment income	2,982		2,862		2,735
Less: investment expenses	73		70		66
Net investment income	$	2,909	$	2,792	$	2,669

Realized Gain (Loss) on Investments

Net realized capital gains (losses) were as follows for the periods indicated:


	Year Ended December 31,
	2020		2019		2018
Fixed maturities, available-for-sale, including securities pledged	$	(17)	$	(21)	$	(88)
Fixed maturities, at fair value option	(235)		40		(357)
Equity securities	10		(16)		(9)
Derivatives	(7)		(164)		(16)
Embedded derivatives - fixed maturities	1		3		(6)
Guaranteed benefit derivatives	(34)		(6)		92
Mortgage Loans	(75)		—		5
Other investments	(8)		—		22
Net realized capital gains (losses)	$	(365)	$	(164)	$	(357)

Gain (Loss) on Securities

Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:


	Year Ended December 31,
	2020		2019		2018
Proceeds on sales	$	2,456	$	4,105	$	4,162
Gross gains	151		63		29
Gross losses	81		54		82