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Investments (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Fixed Maturity Securities by Sector
Fixed maturity securities by sector were as follows at:
September 30, 2020December 31, 2019
Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair
Value		Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair
Value
GainsLossesGainsLosses
(In millions)
U.S. corporate$31,303 $2 $4,738 $133 $35,906 $28,375 $— $2,852 $67 $31,160 
Foreign corporate9,702 1 1,069 110 10,660 9,177 — 741 74 9,844 
RMBS7,807 1 652 9 8,449 8,692 — 438 12 9,118 
U.S. government and agency5,713 — 3,222 — 8,935 5,529 — 1,869 2 7,396 
CMBS5,865 — 569 9 6,425 5,500 — 264 9 5,755 
State and political subdivision3,478 — 953 2 4,429 3,358 — 701 2 4,057 
ABS2,681 — 54 21 2,714 1,945 — 21 11 1,955 
Foreign government1,512 — 314 6 1,820 1,503 — 250 2 1,751 
Total fixed maturity securities$68,061 $4 $11,571 $290 $79,338 $64,079 $— $7,136 $179 $71,036 
Maturities of Fixed Maturity Securities
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at September 30, 2020:
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 (1)		Total Fixed
Maturity
Securities
(In millions)
Amortized cost$1,535 $7,291 $14,164 $28,718 $16,353 $68,061 
Estimated fair value$1,549 $7,729 $15,661 $36,811 $17,588 $79,338 
_______________
(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).
Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector
The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:
September 30, 2020December 31, 2019
Less than 12 Months12 Months or GreaterLess than 12 Months12 Months or Greater
Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses
(Dollars in millions)
U.S. corporate$2,993 $112 $188 $21 $2,017 $44 $326 $23 
Foreign corporate862 37 451 73 576 12 561 62 
RMBS420 9 11 — 857 8 386 4 
U.S. government and agency— — — — 40 2 — — 
CMBS344 7 59 2 559 7 171 2 
State and political subdivision123 2 — — 143 2 8 — 
ABS667 8 590 13 362 2 676 9 
Foreign government121 6 6 — 65 2 — — 
Total fixed maturity securities
$5,530 $181 $1,305 $109 $4,619 $79 $2,128 $100 
Total number of securities in an unrealized loss position1,069 248 720 302 
Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector
The changes in the allowance for credit losses by sector were as follows:
U.S. CorporateRMBSForeign CorporateTotal
(In millions)
Balance at January 1, 2020$3 $— $1 $4 
Allowance on securities where credit losses were not previously recorded3 1 1 5 
Reductions for securities sold(1)— — (1)
Write-offs charged against allowance (1)(3)— (1)(4)
Balance at September 30, 2020
$2 $1 $1 $4 
_______________
(1)The Company recorded total write-offs of $13 million during the nine months ended September 30, 2020.
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
September 30, 2020December 31, 2019
Carrying
Value		% of
Total		Carrying
Value		% of
Total
(Dollars in millions)
Commercial$9,830 62.4 %$9,721 61.7 %
Agricultural3,380 21.5 3,388 21.5 
Residential2,626 16.7 2,708 17.2 
Total mortgage loans (1)15,836 100.6 15,817 100.4 
Allowance for credit losses(90)(0.6)(64)(0.4)
Total mortgage loans, net$15,746 100.0 %$15,753 100.0 %
_______________
(1)Purchases of mortgage loans from third parties were $47 million and $535 million for the three months and nine months ended September 30, 2020, respectively, and $159 million and $722 million for the three months and nine months ended September 30, 2019, respectively, and were primarily comprised of residential mortgage loans.
Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment
The changes in the allowance for credit losses by portfolio segment were as follows:
CommercialAgriculturalResidentialTotal
(In millions)
Balance at December 31, 2019$47 $10 $7 $64 
Cumulative effect of change in accounting principle(20)7 15 2 
Balance at January 1, 202027 17 22 66 
Current period provision17 (1)8 24 
Balance at September 30, 2020$44 $16 $30 $90 
Purchases of PCD Mortgage Loans
Purchases of PCD mortgage loans are summarized as follows:
Nine Months Ended September 30, 2020
(In millions)
Purchase price$77 
Allowance at acquisition date$2 
Discount or premium attributable to other factors$2 
Par value$81 
Credit Quality of Mortgage Loans by Portfolio Segment
The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:
20202019201820172016PriorTotal
(In millions)
September 30, 2020
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%$288 $1,645 $1,113 $572 $1,124 $3,210 $7,952 
65% to 75%114 345 452 340 40 277 1,568 
76% to 80%— — — — 84 — 84 
Greater than 80%— — 10 13 6 197 226 
Total commercial mortgage loans402 1,990 1,575 925 1,254 3,684 9,830 
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%202 556 754 438 486 765 3,201 
65% to 75%37 81 10 33 — 18 179 
Total agricultural mortgage loans239 637 764 471 486 783 3,380 
Residential mortgage loans
Performing200 428 478 116 43 1,261 2,526 
Nonperforming1 5 5 1 — 88 100 
Total residential mortgage loans201 433 483 117 43 1,349 2,626 
Total$842 $3,060 $2,822 $1,513 $1,783 $5,816 $15,836 
The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:
September 30, 2020December 31, 2019
Amortized Cost% of
Total		Amortized Cost% of
Total
(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x$9,286 94.5 %$9,257 95.2 %
1.00x - 1.20x359 3.6 298 3.1 
Less than 1.00x185 1.9 166 1.7 
Total$9,830 100.0 %$9,721 100.0 %
Past Due Mortgage Loans by Portfolio Segment
The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:
September 30, 2020
CommercialAgriculturalResidentialTotal
(In millions)
Current$9,830 $3,379 $2,461 $15,670 
30-59 days past due— — 65 65 
60-89 days past due— — 69 69 
90-179 days past due— 1 16 17 
180+ days past due— — 15 15 
Total
$9,830 $3,380 $2,626 $15,836 
Mortgage Loans in Nonaccrual Status by Portfolio Segment
The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:
CommercialAgriculturalResidentialTotal
(In millions)
December 31, 2019
$— $21 $37 $58 
September 30, 2020 (1)
$— $14 $100 $114 
_______________
(1)The Company had $8 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses at September 30, 2020.
Net Unrealized Investment Gains (Losses)
The components of net unrealized investment gains (losses), included in AOCI, were as follows at:
September 30, 2020December 31, 2019
(In millions)
Fixed maturity securities$11,281 $6,957 
Derivatives464 245 
Other(17)(13)
Subtotal11,728 7,189 
Amounts allocated from:
Future policy benefits(4,376)(2,692)
DAC, VOBA and DSI(482)(341)
Subtotal(4,858)(3,033)
Deferred income tax benefit (expense)(1,443)(873)
Net unrealized investment gains (losses)$5,427 $3,283 
The changes in net unrealized investment gains (losses) were as follows:
Nine Months Ended September 30, 2020
(In millions)
Balance at December 31, 2019$3,283 
Unrealized investment gains (losses) during the period4,539 
Unrealized investment gains (losses) relating to:
Future policy benefits(1,684)
DAC, VOBA and DSI(141)
Deferred income tax benefit (expense)(570)
Balance at September 30, 2020$5,427 
Change in net unrealized investment gains (losses)$2,144 
Securities Lending
Elements of the securities lending program are presented below at:
September 30, 2020December 31, 2019
(In millions)
Securities on loan: (1)
Amortized cost$2,037 $2,031 
Estimated fair value$3,531 $2,996 
Cash collateral received from counterparties (2)$3,625 $3,074 
Securities collateral received from counterparties (3)$6 $— 
Reinvestment portfolio — estimated fair value$3,764 $3,174 
_______________
(1)Included within fixed maturity securities.
(2)Included within payables for collateral under securities loaned and other transactions.
(3)Securities collateral received from counterparties is not reported on the consolidated balance sheets and may not be sold or re-pledged unless the counterparty is in default.
The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
September 30, 2020December 31, 2019
Open (1)1 Month or Less1 to 6 MonthsTotalOpen (1)1 Month or Less1 to 6 MonthsTotal
(In millions)
U.S. government and agency$1,229 $1,801 $593 $3,623 $1,279 $1,094 $701 $3,074 
Foreign corporate2 — — 2 — — — — 
Total$1,231 $1,801 $593 $3,625 $1,279 $1,094 $701 $3,074 
_______________
(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.
Invested Assets on Deposit, Held in Trust and Pledged as Collateral
Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:
September 30, 2020December 31, 2019
(In millions)
Invested assets on deposit (regulatory deposits) (1)$10,061 $9,349 
Invested assets held in trust (reinsurance agreements) (2)5,518 4,561 
Invested assets pledged as collateral (3)5,608 3,641 
Total invested assets on deposit, held in trust and pledged as collateral$21,187 $17,551 
_______________
(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $83 million and $69 million of the assets on deposit represents restricted cash and cash equivalents at September 30, 2020 and December 31, 2019, respectively.
(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $83 million and $124 million of the assets held in trust balance represents restricted cash and cash equivalents at September 30, 2020 and December 31, 2019, respectively.
(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3 of the Notes to the Consolidated Financial Statements included in the 2019 Annual Report) and derivative transactions (see Note 5).
Variable Interest Entities
The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:
 September 30, 2020December 31, 2019
 Carrying
Amount		Maximum
Exposure
to Loss		Carrying
Amount		Maximum
Exposure
to Loss
 (In millions)
Fixed maturity securities$13,446 $12,393 $13,094 $12,454 
Limited partnerships and LLCs2,083 3,351 1,907 3,080 
Total$15,529 $15,744 $15,001 $15,534 
Components of Net Investment Income
The components of net investment income were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(In millions)
Investment income:
Fixed maturity securities$676 $665 $2,021 $1,997 
Equity securities1 2 4 6 
Mortgage loans166 172 498 507 
Policy loans15 18 40 51 
Limited partnerships and LLCs (1)155 79 48 175 
Cash, cash equivalents and short-term investments7 30 44 67 
Other14 12 39 31 
Total investment income1,034 978 2,694 2,834 
Less: Investment expenses38 50 130 153 
Net investment income$996 $928 $2,564 $2,681 
_______________
(1)Includes net investment income pertaining to other limited partnership interests of $153 million and $34 million for the three months and nine months ended September 30, 2020, respectively, and $67 million and $143 million for the three months and nine months ended September 30, 2019, respectively.
Components of Net Investment Gains (Losses)
The components of net investment gains (losses) were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(In millions)
Fixed maturity securities $1 $28 $(26)$81 
Equity securities4 3 (3)14 
Mortgage loans3 (1)(23)(8)
Limited partnerships and LLCs(1)(3)(4)(8)
Other(2)— 8 — 
Total net investment gains (losses)$5 $27 $(48)$79 
Sales or Disposals of Fixed Maturity Securities Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(In millions)
Proceeds$897 $1,628 $2,168 $8,586 
Gross investment gains$30 $45 $62 $218 
Gross investment losses(29)(17)(72)(137)
Net investment gains (losses)$1 $28 $(10)$81