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Investments
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments 6. Investments
See Notes 1 and 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a description of the Company’s accounting policies for investments and the fair value hierarchy for investments and the related valuation methodologies.
Fixed Maturity Securities Available-for-sale
Fixed Maturity Securities by Sector
Fixed maturity securities by sector were as follows at:
March 31, 2023December 31, 2022
Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair
Value		Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair
Value
GainsLossesGainsLosses
(In millions)
U.S. corporate$37,171 $— $320 $3,879 $33,612 $36,926 $1 $203 $4,521 $32,607 
Foreign corporate12,465 — 56 1,638 10,883 12,471 1 38 1,932 10,576 
U.S. government and agency8,310 — 472 495 8,287 8,318 — 300 602 8,016 
RMBS8,357 2 46 811 7,590 8,431 2 44 945 7,528 
CMBS7,343 3 — 666 6,674 7,324 3 — 710 6,611 
ABS5,835 — 9 248 5,596 5,652 — 3 296 5,359 
State and political subdivision4,072 — 178 301 3,949 4,074 — 125 400 3,799 
Foreign government1,140 — 49 95 1,094 1,148 — 39 106 1,081 
Total fixed maturity securities$84,693 $5 $1,130 $8,133 $77,685 $84,344 $7 $752 $9,512 $75,577 
The Company held non-income producing fixed maturity securities with an estimated fair value of $13 million at March 31, 2023. The Company did not hold non-income producing fixed maturity securities at December 31, 2022.
Maturities of Fixed Maturity Securities
The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at March 31, 2023:
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$1,556 $14,307 $16,379 $30,916 $21,535 $84,693 
Estimated fair value$1,528 $13,669 $14,794 $27,834 $19,860 $77,685 
_______________
(1)Structured securities include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”) (collectively, “Structured Securities”).
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities 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 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:
March 31, 2023December 31, 2022
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$15,735 $1,324 $12,122 $2,555 $24,509 $3,351 $3,979 $1,170 
Foreign corporate4,986 423 4,828 1,215 8,260 1,413 1,601 519 
U.S. government and agency1,515 119 2,266 376 3,121 265 1,147 337 
RMBS3,017 209 3,942 602 4,731 497 2,246 448 
CMBS3,582 265 3,041 401 5,589 543 970 167 
ABS1,828 50 2,980 198 3,347 159 1,733 137 
State and political subdivision1,223 100 789 201 2,041 317 247 83 
Foreign government408 27 368 68 777 99 21 7 
Total fixed maturity securities$32,294 $2,517 $30,336 $5,616 $52,375 $6,644 $11,944 $2,868 
Total number of securities in an unrealized loss position4,595 4,746 7,309 2,049 
Allowance for Credit Losses for Fixed Maturity Securities
Evaluation and Measurement Methodologies
For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI.
Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses).
Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses.
Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $656 million and $602 million at March 31, 2023 and December 31, 2022, respectively, and is included in accrued investment income.
Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities.
Current Period Evaluation
Based on the Company’s current evaluation of its fixed maturity securities in an unrealized loss position and the current intent or requirement to sell, the Company recorded an allowance for credit losses of $5 million, relating to fifteen securities at March 31, 2023. Management concluded that for all other fixed maturity securities in an unrealized loss position, the unrealized loss was not due to issuer-specific credit-related factors and as a result was recognized in OCI. Where unrealized losses have not been recognized into income, it is primarily because the securities’ bond issuer(s) are of high credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in estimated fair value is largely due to changes in interest rates and non-issuer specific credit spreads. These issuers continued to make timely principal and interest payments and the estimated fair value is expected to recover as the securities approach maturity.
Allowance for Credit Losses for Fixed Maturity Securities
The allowance for credit losses for fixed maturity securities was $5 million and $7 million at March 31, 2023 and December 31, 2022, respectively. For both the three months ended March 31, 2023 and 2022, the change in the allowance for fixed maturity securities by sector was not significant. The Company recorded total write-offs of $7 million and $2 million for the three months ended March 31, 2023 and 2022, respectively.
Mortgage Loans
Mortgage Loans by Portfolio Segment
Mortgage loans are summarized as follows at:
March 31, 2023December 31, 2022
Carrying
Value		% of
Total		Carrying
Value		% of
Total
(Dollars in millions)
Commercial$13,529 59.3 %$13,574 59.2 %
Agricultural4,388 19.2 4,365 19.0 
Residential5,042 22.1 5,116 22.3 
Total mortgage loans (1)22,959 100.6 23,055 100.5 
Allowance for credit losses(136)(0.6)(119)(0.5)
Total mortgage loans, net$22,823 100.0 %$22,936 100.0 %
_______________
(1)Purchases of mortgage loans from third parties were $32 million and $840 million for the three months ended March 31, 2023 and 2022, respectively, and were primarily comprised of residential mortgage loans.
Allowance for Credit Losses for Mortgage Loans
Evaluation and Measurement Methodologies
The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible.
Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $109 million and $115 million at March 31, 2023 and December 31, 2022, respectively.
The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year.
Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, modifications, foreclosure probable loans, and loans with dissimilar risk characteristics.
Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a non-credit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments.
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)
Three Months Ended March 31, 2023
Balance, beginning of period$49 $15 $55 $119 
Current period provision15 (1)3 17 
Balance, end of period$64 $14 $58 $136 
Three Months Ended March 31, 2022
Balance, beginning of period$67 $12 $44 $123 
Current period provision2 3 (1)4 
Balance, end of period$69 $15 $43 $127 
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:
20232022202120202019PriorTotal
(In millions)
March 31, 2023
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%$47 $1,914 $2,840 $404 $1,481 $4,492 $11,178 
65% to 75%— 503 354 — 270 714 1,841 
76% to 80%— — 18 39 40 119 216 
Greater than 80%— — — — 75 219 294 
Total commercial mortgage loans47 2,417 3,212 443 1,866 5,544 13,529 
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%36 560 1,138 412 498 1,362 4,006 
65% to 75%— 139 116 59 49 18 381 
Greater than 80%— — — — — 1 1 
Total agricultural mortgage loans36 699 1,254 471 547 1,381 4,388 
Residential mortgage loans
Performing2 1,269 1,713 163 211 1,613 4,971 
Nonperforming— 5 10 1 2 53 71 
Total residential mortgage loans2 1,274 1,723 164 213 1,666 5,042 
Total$85 $4,390 $6,189 $1,078 $2,626 $8,591 $22,959 
20222021202020192018PriorTotal
(In millions)
December 31, 2022
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%$1,916 $2,819 $405 $1,493 $888 $3,627 $11,148 
65% to 75%503 354 — 271 367 425 1,920 
76% to 80%— 18 40 90 65 48 261 
Greater than 80%— — — 25 57 163 245 
Total commercial mortgage loans2,419 3,191 445 1,879 1,377 4,263 13,574 
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%532 1,163 420 496 643 740 3,994 
65% to 75%148 90 59 56 1 16 370 
Greater than 80%— — — — 1 — 1 
Total agricultural mortgage loans680 1,253 479 552 645 756 4,365 
Residential mortgage loans
Performing1,266 1,745 167 215 168 1,491 5,052 
Nonperforming4 8 — 2 1 49 64 
Total residential mortgage loans1,270 1,753 167 217 169 1,540 5,116 
Total$4,369 $6,197 $1,091 $2,648 $2,191 $6,559 $23,055 
The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments.
The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:
March 31, 2023December 31, 2022
Amortized Cost% of
Total		Amortized Cost% of
Total
(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x$12,365 91.4 %$12,157 89.6 %
1.00x - 1.20x421 3.1 590 4.3 
Less than 1.00x743 5.5 827 6.1 
Total$13,529 100.0 %$13,574 100.0 %
The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments.
Past Due Mortgage Loans by Portfolio Segment
The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both March 31, 2023 and December 31, 2022. Delinquency is defined 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 aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:
March 31, 2023December 31, 2022
CommercialAgriculturalResidentialTotalCommercialAgriculturalResidentialTotal
(In millions)
Current$13,512 $4,382 $4,969 $22,863 $13,574 $4,346 $5,041 $22,961 
30-59 days past due17 — 2 19 — — 11 11 
60-89 days past due— 4 31 35 — — 16 16 
90-179 days past due— — 6 6 — 3 31 34 
180+ days past due— 2 34 36 — 16 17 33 
Total
$13,529 $4,388 $5,042 $22,959 $13,574 $4,365 $5,116 $23,055 
Mortgage Loans in Nonaccrual Status by Portfolio Segment
Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized.
The amortized cost of mortgage loans in a nonaccrual status by portfolio segment was as follows at:
CommercialAgriculturalResidential (1)Total
(In millions)
March 31, 2023
$29 $2 $71 $102 
December 31, 2022
$11 $3 $64 $78 
_______________
(1)The Company had $2 million of mortgage loans in nonaccrual status for which there was no related allowance for credit losses at March 31, 2023. All mortgage loans in nonaccrual status had an allowance for credit losses at December 31, 2022. Mortgage loans in nonaccrual status for which there was no related allowance for credit losses pertains to collateral dependent loans where the collateral value exceeds amortized cost.
Current period investment income on mortgage loans in nonaccrual status was less than $1 million for both the three months ended March 31, 2023 and 2022
Other Invested Assets
Over 80% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 7 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes the Company’s investment in company-owned life insurance, Federal Home Loan Bank (“FHLB”) stock, tax credit and renewable energy partnerships and leveraged leases.
Net Unrealized Investment Gains (Losses)
Unrealized investment gains (losses) on fixed maturity securities and the effect on future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.
The components of net unrealized investment gains (losses), included in AOCI, were as follows at:
March 31, 2023December 31, 2022
(In millions)
Fixed maturity securities$(7,003)$(8,760)
Derivatives598 638 
Other(8)3 
Subtotal(6,413)(8,119)
Amounts allocated from:
Future policy benefits646 917 
Deferred income tax benefit (expense)1,211 1,512 
Net unrealized investment gains (losses)$(4,556)$(5,690)
The changes in net unrealized investment gains (losses) were as follows:
Three Months Ended March 31, 2023
(In millions)
Balance at December 31, 2022$(5,690)
Unrealized investment gains (losses) during the period1,706 
Unrealized investment gains (losses) relating to:
Future policy benefits(271)
Deferred income tax benefit (expense)(301)
Balance at March 31, 2023$(4,556)
Change in net unrealized investment gains (losses)$1,134 
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, 2023 and December 31, 2022.
Securities Lending
Elements of the securities lending program are presented below at:
March 31, 2023December 31, 2022
(In millions)
Securities on loan: (1)
Amortized cost$3,819 $3,995 
Estimated fair value$3,626 $3,638 
Cash collateral received from counterparties (2)$3,692 $3,731 
Reinvestment portfolio — estimated fair value$3,590 $3,603 
_______________
(1)Included in fixed maturity securities.
(2)Included in payables for collateral under securities loaned and other transactions.
The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:
March 31, 2023December 31, 2022
Open (1)1 Month or Less1 to 6 MonthsTotalOpen (1)1 Month or Less1 to 6 MonthsTotal
(In millions)
U.S. government and agency$790 $1,055 $1,293 $3,138 $640 $1,527 $984 $3,151 
U.S. corporate— 359 — 359 2 410 — 412 
Foreign corporate— 178 — 178 — 152 — 152 
Foreign government— 17 — 17 — 16 — 16 
Total$790 $1,609 $1,293 $3,692 $642 $2,105 $984 $3,731 
_______________
(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.
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 in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at March 31, 2023 was $775 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement.
The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including ABS, agency RMBS, U.S. government and agency securities, U.S. and foreign corporate securities, non-agency RMBS and CMBS) with 54% invested in U.S. government and agency securities, agency RMBS and cash and cash equivalents at March 31, 2023. 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, 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:
March 31, 2023December 31, 2022
(In millions)
Invested assets on deposit (regulatory deposits) (1)$8,328 $7,999 
Invested assets held in trust (reinsurance agreements) (2)5,857 5,621 
Invested assets pledged as collateral (3)12,829 13,920 
Total invested assets on deposit, held in trust and pledged as collateral$27,014 $27,540 
_______________
(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $58 million and $21 million of the assets on deposit represents restricted cash and cash equivalents at March 31, 2023 and December 31, 2022, respectively.
(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $266 million and $240 million of the assets held in trust balance represents restricted cash and cash equivalents at March 31, 2023 and December 31, 2022, 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 2022 Annual Report) and derivative transactions (see Note 7).
See “— Securities Lending” for information regarding securities on loan. In addition, the Company’s investment in FHLB common stock, which is considered restricted until redeemed by the issuer, was $220 million and $201 million at redemption value at March 31, 2023 and December 31, 2022, respectively.
Variable Interest Entities
A variable interest entity (“VIE”) is a legal entity that does not have sufficient equity at risk to finance its activities or is structured such that equity investors lack the ability to make significant decisions relating to the entity’s operations through voting rights or do not substantively participate in the gains and losses of the entity.
The Company enters into various arrangements with VIEs in the normal course of business and has invested in legal entities that are VIEs. VIEs are consolidated when it is determined that the Company is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both (i) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In addition, the evaluation of whether a legal entity is a VIE and if the Company is a primary beneficiary includes a review of the capital structure of the VIE, the related contractual relationships and terms, the nature of the operations and purpose of the VIE, the nature of the VIE interests issued and the Company’s involvement with the entity.
There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either March 31, 2023 or December 31, 2022.
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:
 March 31, 2023December 31, 2022
 Carrying
Amount		Maximum
Exposure
to Loss		Carrying
Amount		Maximum
Exposure
to Loss
 (In millions)
Fixed maturity securities$16,017 $17,409 $15,896 $17,471 
Limited partnerships and LLCs4,184 5,431 4,136 5,491 
Total$20,201 $22,840 $20,032 $22,962 
The Company’s investments in unconsolidated VIEs are described below.
Fixed Maturity Securities
The Company invests in U.S. corporate bonds, foreign corporate bonds and Structured Securities issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities.
Limited Partnerships and LLCs
The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, and, to a lesser extent, tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 12.
Net Investment Income
The components of net investment income were as follows:
Three Months Ended
March 31,
20232022
(In millions)
Investment income:
Fixed maturity securities$837 $718 
Mortgage loans239 203 
Policy loans15 15 
Limited partnerships and LLCs (1)(13)241 
Cash, cash equivalents and short-term investments50 1 
Other22 14 
Total investment income1,150 1,192 
Less: Investment expenses91 41 
Net investment income$1,059 $1,151 
_______________
(1)Includes net investment income pertaining to other limited partnership interests of ($1) million and $212 million for the three months ended March 31, 2023 and 2022, respectively.
Net Investment Gains (Losses)
Components of Net Investment Gains (Losses)
The components of net investment gains (losses) were as follows:
Three Months Ended
March 31,
20232022
(In millions)
Fixed maturity securities $(76)$(42)
Equity securities(3)(6)
Mortgage loans(17)(4)
Limited partnerships and LLCs— (16)
Total net investment gains (losses)$(96)$(68)
Gains (losses) from foreign currency transactions included within net investment gains (losses) were $2 million and ($16) million for the three months ended March 31, 2023 and 2022, respectively.
Sales or Disposals of Fixed Maturity Securities
Investment gains and losses on sales of securities are determined on a specific identification basis. 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
March 31,
20232022
(In millions)
Proceeds$772 $2,539 
Gross investment gains$3 $44 
Gross investment losses(73)(83)
Net investment gains (losses)$(70)$(39)