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Investments (Tables)

3 Months Ended

Mar. 31, 2022

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


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

Net realized investment gains (losses)

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


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

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

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

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.


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

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


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

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
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

Contractual maturity

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


	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

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. 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.