
Three months ended March 31
(In millions)	2022		2021
Fixed maturity securities	$	429	$	428
Equity securities	2		29
Limited partnership investments	18		43
Mortgage loans	15		14

Trading portfolio	1		5
Other	—		2
Gross investment income	465		521
Investment expense	(17)		(17)
Net investment income	$	448	$	504

During the three months ended March 31, 2022 and 2021, $(5) million and $13 million of Net investment (loss) income was recognized due to the change in fair value of common stock still held as of March 31, 2022 and 2021.


Three months ended March 31
(In millions)	2022		2021
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	26	$	58
Gross losses	(28)		(20)
Net investment gains (losses) on fixed maturity securities	(2)		38
Equity securities	(38)		2
Derivatives	29		17

Net investment gains (losses)	$	(11)	$	57

During the three months ended March 31, 2022 and 2021, $38 million of losses and $2 million of gains were recognized in Net investment gains (losses) due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2022 and 2021.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (PCD) assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $389 million, $369 million, and $389 million as of March 31, 2022, December 31, 2021 and March 31, 2021 and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables included within this Note.


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2022	$	11	$	7	$	18
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	—		—		—
Available-for-sale securities accounted for as PCD assets	—		—		—

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	—		—		—
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	—		—		—
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	1		(2)		(1)
Balance as of March 31, 2022	$	12	$	5	$	17



(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	2		—		2

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6		—		6
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	—		—		—
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	(6)		(1)		(7)
Balance as of March 31, 2021	$	27	$	16	$	43

The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date.


Three months ended March 31
(In millions)	2022		2021
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	8	$	7
Asset-backed	2		(1)
Impairment (gains) losses recognized in earnings	$	10	$	6


March 31, 2022	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	$	22,001	$	1,277	$	486	$	12	$	22,780
States, municipalities and political subdivisions	10,516		862		319		—		11,059
Asset-backed:
Residential mortgage-backed	2,983		25		160		—		2,848
Commercial mortgage-backed	2,008		13		81		—		1,940
Other asset-backed	2,710		11		93		5		2,623
Total asset-backed	7,701		49		334		5		7,411
U.S. Treasury and obligations of government-sponsored enterprises	125		—		5		—		120
Foreign government	559		3		13		—		549
Redeemable preferred stock	20		—		—		—		20
Total fixed maturity securities available-for-sale	40,922		2,191		1,157		17		41,939
Total fixed maturity securities trading	6		—		—		—		6
Total fixed maturity securities	$	40,928	$	2,191	$	1,157	$	17	$	41,945


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
Redeemable preferred stock	—		—		—		—		—
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

The net unrealized gains on investments included in the tables above are recorded as a component of Accumulated other comprehensive income (AOCI). When presented in AOCI, these amounts are net of tax and any required Shadow Adjustments. To the extent that unrealized gains on fixed income securities supporting certain products within the Life & Group segment would result in a premium deficiency, or would impact the reserve balance if realized, a related increase in Insurance reserves is recorded, net of tax, as a reduction of net unrealized gains through Other comprehensive income (loss) (Shadow Adjustments). As of March 31, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1,394 million and $2,477 million.

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
March 31, 2022	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	$	7,390	$	441	$	327	$	45	$	7,717	$	486
States, municipalities and political subdivisions	2,796		314		35		5		2,831		319
Asset-backed:
Residential mortgage-backed	2,315		160		—		—		2,315		160
Commercial mortgage-backed	1,274		65		151		16		1,425		81
Other asset-backed	1,717		90		67		3		1,784		93
Total asset-backed	5,306		315		218		19		5,524		334
U.S. Treasury and obligations of government-sponsored enterprises	94		5		5		—		99		5
Foreign government	327		11		26		2		353		13
Total	$	15,913	$	1,086	$	611	$	71	$	16,524	$	1,157


	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

The following table presents 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 ratings distribution.


	March 31, 2022				December 31, 2021
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,095	$	116	$	898	$	8
AAA	993		105		368		6
AA	2,809		269		875		17
A	3,300		205		1,516		23
BBB	6,073		392		1,812		42
Non-investment grade	1,254		70		596		16
Total	$	16,524	$	1,157	$	6,065	$	112

Based on current facts and circumstances, the Company believes the unrealized losses presented in the March 31, 2022 securities in a gross unrealized loss position tables above are not indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates, and to a lesser extent credit spreads. In reaching this determination, the Company considered the recent volatility in risk-free rates and spreads as well as the fact that its unrealized losses are concentrated in investment grade issuers. Additionally, the Company has no current intent to sell securities with unrealized losses, nor is it more likely than not that it will be required to sell prior to recovery of amortized cost; accordingly, the Company has determined that there are no additional impairment losses to be recorded as of March 31, 2022.


	March 31, 2022				December 31, 2021
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,533	$	1,546	$	1,603	$	1,624
Due after one year through five years	10,206		10,337		10,637		11,229
Due after five years through ten years	14,040		14,032		13,294		14,338
Due after ten years	15,143		16,024		14,411		17,182
Total	$	40,922	$	41,939	$	39,945	$	44,373

Actual maturities may differ from contractual maturities because certain securities may be called or prepaid. Securities not due at a single date are allocated based on weighted average life.

The Company holds an embedded derivative on a funds withheld liability with a notional value of $268 million and $270 million and a fair value of $16 million and $(12) million as of March 31, 2022 and December 31, 2021. The embedded derivative on the funds withheld liability is accounted for separately and reported with the funds withheld liability in Other liabilities on the Condensed Consolidated Balance Sheets.

As part of its overall investment strategy, the Company invests in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications, and obligations related to private placement securities. As of March 31, 2022, the Company had commitments to purchase or fund approximately $1,280 million and sell approximately $65 million under the terms of these investments.

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (DSCR) and loan-to-value ratios (LTV).


March 31, 2022	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2022		2021		2020		2019		2018		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	9	$	94	$	21	$	54	$	247	$	425
LTV 55% to 65%	—		5		19		8		—		24		56
LTV greater than 65%	18		11		—		—		—		—		29
DSCR 1.2x - 1.6x
LTV less than 55%	—		13		14		95		10		56		188
LTV 55% to 65%	21		36		24		—		—		8		89
LTV greater than 65%	—		—		—		—		—		—		0
DSCR ≤1.2
LTV less than 55%	—		—		—		52		—		30		82
LTV 55% to 65%	—		—		—		55		—		—		55
LTV greater than 65%	—		21		—		6		—		7		34
Total	$	39	$	95	$	151	$	237	$	64	$	372	$	958

(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.

As of March 31, 2022, accrued interest receivable on mortgage loans totaled $3 million and is excluded from the amortized cost basis disclosed in the table above and the estimate of expected credit losses.