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Investments (Tables)

12 Months Ended

Dec. 31, 2021

The significant components of Net investment income are presented in the following table.


Years ended December 31
(In millions)	2021		2020		2019
Fixed maturity securities	$	1,707	$	1,728	$	1,817
Equity securities	83		65		85
Limited partnership investments	362		121		180
Mortgage loans	61		57		51
Short term investments	1		9		34
Trading portfolio	9		18		9
Other	—		1		5
Gross investment income	2,223		1,999		2,181
Investment expense	(64)		(64)		(63)
Net investment income	$	2,159	$	1,935	$	2,118

Net realized investment gains (losses)

Net investment gains (losses) are presented in the following table.


Years ended December 31
(In millions)	2021		2020		2019
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	186	$	220	$	125
Gross losses	(90)		(220)		(131)
Net investment gains (losses) on fixed maturity securities	96		—		(6)
Equity securities	4		(3)		66
Derivatives	6		(10)		(11)
Mortgage loans	10		(21)		—
Short term investments and other	4		(20)		(20)
Net investment gains (losses)	$	120	$	(54)	$	29

Debt securities, available-for-sale, allowance for credit loss

Accrued interest receivable on available-for-sale fixed maturity securities totaled $369 million and $371 million as of December 31, 2021 and 2020 and is excluded from the estimate of expected credit losses and the amortized cost basis in the table included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2021	$	23	$	17	$	40
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	14		—		14
Available-for-sale securities accounted for as PCD assets	5		6		11

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	7		17		24
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	—		—		—
Write-offs charged against the allowance	16		—		16
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	(8)		1		(7)
Balance as of December 31, 2021	$	11	$	7	$	18



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2020	$	—	$	—	$	—
Additions to the allowance for credit losses:
Impact of adopting ASC 326	6		—		6
Securities for which credit losses were not previously recorded	67		12		79
Available-for-sale securities accounted for as PCD assets	5		—		5

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	22		—		22
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	1		—		1
Write-offs charged against the allowance	—		—		—
Recoveries of amounts previously written off	—		—		—

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	(32)		5		(27)
Balance as of December 31, 2020	$	23	$	17	$	40

Components of net other than temporary impairment losses recognized in earnings by asset type

The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date.


Years ended December 31
(In millions)	2021		2020		2019
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	11	$	87	$	33
Asset-backed	20		24		11
Impairment (gains) losses recognized in earnings	$	31	$	111	$	44

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


December 31, 2021	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	21,444	$	2,755	$	56	$	11	$	24,132
States, municipalities and political subdivisions	10,358		1,599		14		—		11,943
Asset-backed:
Residential mortgage-backed	2,893		71		8		—		2,956
Commercial mortgage-backed	1,987		63		19		—		2,031
Other asset-backed	2,561		54		10		7		2,598
Total asset-backed	7,441		188		37		7		7,585
U.S. Treasury and obligations of government-sponsored enterprises	132		1		3		—		130
Foreign government	570		15		2		—		583
Total fixed maturity securities available-for-sale	39,945		4,558		112		18		44,373
Total fixed maturity securities trading	7		—		—		—		7
Total fixed maturity securities	$	39,952	$	4,558	$	112	$	18	$	44,380


December 31, 2020	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	20,792	$	3,578	$	22	$	23	$	24,325
States, municipalities and political subdivisions	9,729		1,863		—		—		11,592
Asset-backed:
Residential mortgage-backed	3,442		146		1		—		3,587
Commercial mortgage-backed	1,933		93		42		17		1,967
Other asset-backed	2,179		81		9		—		2,251
Total asset-backed	7,554		320		52		17		7,805
U.S. Treasury and obligations of government-sponsored enterprises	339		2		3		—		338
Foreign government	512		32		—		—		544

Total fixed maturity securities available-for-sale	38,926		5,795		77		40		44,604
Total fixed maturity securities trading	27		—		—		—		27
Total fixed maturity securities	$	38,953	$	5,795	$	77	$	40	$	44,631

Securities in a gross unrealized loss position

The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by the length of time in which the securities have continuously been in that position.


	Less than 12 Months				12 Months or Longer				Total
December 31, 2021	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	2,389	$	48	$	136	$	8	$	2,525	$	56
States, municipalities and political subdivisions	730		14		—		—		730		14
Asset-backed:
Residential mortgage-backed	1,043		8		—		—		1,043		8
Commercial mortgage-backed	527		7		167		12		694		19
Other asset-backed	840		10		62		—		902		10
Total asset-backed	2,410		25		229		12		2,639		37
U.S. Treasury and obligations of government-sponsored enterprises	69		3		5		—		74		3
Foreign government	97		2		—		—		97		2
Total	$	5,695	$	92	$	370	$	20	$	6,065	$	112


	Less than 12 Months				12 Months or Longer				Total
December 31, 2020	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	609	$	21	$	12	$	1	$	621	$	22
States, municipalities and political subdivisions	33		—		—		—		33		—
Asset-backed:
Residential mortgage-backed	71		1		11		—		82		1
Commercial mortgage-backed	533		40		28		2		561		42
Other asset-backed	344		9		13		—		357		9
Total asset-backed	948		50		52		2		1,000		52
U.S. Treasury and obligations of government-sponsored enterprises	63		3		—		—		63		3
Foreign government	13		—		—		—		13		—
Total	$	1,666	$	74	$	64	$	3	$	1,730	$	77

Contractual maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.


December 31	2021				2020
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,603	$	1,624	$	1,456	$	1,458
Due after one year through five years	10,637		11,229		12,304		13,098
Due after five years through ten years	13,294		14,338		12,319		13,878
Due after ten years	14,411		17,182		12,847		16,170
Total	$	39,945	$	44,373	$	38,926	$	44,604

Financing receivable credit quality indicators

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination.


December 31, 2021	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2021		2020		2019		2018		2017		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	2	$	75	$	6	$	38	$	99	$	181	$	401
LTV 55% to 65%	5		38		15		17		—		24		99
LTV greater than 65%	17		—		8		—		—		—		25
DSCR 1.2x - 1.6x
LTV less than 55%	14		14		95		—		5		42		170
LTV 55% to 65%	36		—		—		24		10		—		70
LTV greater than 65%	—		24		—		—		8		—		32
DSCR ≤1.2
LTV less than 55%	—		—		35		—		30		—		65
LTV 55% to 65%	—		—		28		—		—		—		28
LTV greater than 65%	21		9		62		—		—		7		99
Total	$	95	$	160	$	249	$	79	$	152	$	254	$	989

(1) The values in the table above reflect DSCR on a standardized amortization period and LTV based on the most recent appraised values trended forward using changes in a commercial real estate price index.