
Years ended December 31
(In millions)	2022		2021		2020
Fixed maturity securities	$	1,787	$	1,707	$	1,728
Equity securities	23		83		65
Limited partnership investments	(12)		362		121
Mortgage loans	54		61		57
Short term investments	16		1		9
Trading portfolio	4		9		18
Other	5		—		1
Gross investment income	1,877		2,223		1,999
Investment expense	(72)		(64)		(64)
Net investment income	$	1,805	$	2,159	$	1,935
Net investment income (loss) recognized due to the change in fair value of common stock held as of December 31, 2022, 2021 and 2020	$	47	$	28	$	34

As of December 31, 2022 and 2021, the Company held $0 and less than $1 million of non-income producing fixed maturity securities. As of December 31, 2022 and 2021, the Company held $7 million of non-income producing mortgage loans. As of December 31, 2022 and 2021, no investments in a single issuer exceeded 10% of stockholders' equity, other than investments in securities issued by the U.S. Treasury and obligations of government-sponsored enterprises.


Years ended December 31
(In millions)	2022		2021		2020
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	120	$	186	$	220
Gross losses	(261)		(90)		(220)
Net investment gains (losses) on fixed maturity securities	(141)		96		—
Equity securities	(116)		4		(3)
Derivatives	64		6		(10)
Mortgage loans	(8)		10		(21)
Short term investments and other	2		4		(20)
Net investment gains (losses)	$	(199)	$	120	$	(54)
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of December 31, 2022, 2021 and 2020	$	(75)	$	2	$	(3)

Net investment gains (losses) for the year ended December 31, 2022 in the table above include an $18 million net gain related to the novation of a coinsurance agreement on the Company’s legacy annuity business, which was transacted on a funds withheld basis and gave rise to an embedded derivative. The net gain of $18 million is comprised of a $62 million gain on the associated embedded derivative partially offset by a $44 million loss on fixed maturity securities supporting the funds withheld liability, transferred with the novation, to recognize unrealized losses which had been included in AOCI since the inception of the coinsurance agreement. Taken together, this net gain is the final recognition of changes in the valuation of the funds held assets and offsets previously recognized net investment losses on the associated embedded derivative.

The components of available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) 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)	2022		2021		2020
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	62	$	11	$	87
Asset-backed	—		20		24
Impairment losses (gains) recognized in earnings	$	62	$	31	$	111

For the years ended December 31, 2022, 2021, and 2020 the Company also recognized $8 million of losses,$10 million of gains and $21 million of losses related to mortgage loans primarily due to changes in expected credit losses.


December 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	$	23,137	$	301	$	2,009	$	—	$	21,429
States, municipalities and political subdivisions	8,918		338		939		—		8,317
Asset-backed:
Residential mortgage-backed	3,073		5		447		—		2,631
Commercial mortgage-backed	1,886		4		255		—		1,635
Other asset-backed	3,287		2		361		1		2,927
Total asset-backed	8,246		11		1,063		1		7,193
U.S. Treasury and obligations of government-sponsored enterprises	111		1		2		—		110
Foreign government	617		1		43		—		575
Redeemable preferred stock	3		—		—		—		3
Total fixed maturity securities available-for-sale	41,032		652		4,056		1		37,627
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	41,032	$	652	$	4,056	$	1	$	37,627


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 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, 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	$	15,946	$	1,585	$	1,634	$	424	$	17,580	$	2,009
States, municipalities and political subdivisions	4,079		769		456		170		4,535		939
Asset-backed:
Residential mortgage-backed	1,406		144		1,143		303		2,549		447
Commercial mortgage-backed	1,167		159		408		96		1,575		255
Other asset-backed	2,087		262		542		99		2,629		361
Total asset-backed	4,660		565		2,093		498		6,753		1,063
U.S. Treasury and obligations of government-sponsored enterprises	76		1		16		1		92		2
Foreign government	473		26		78		17		551		43
Total	$	25,234	$	2,946	$	4,277	$	1,110	$	29,511	$	4,056


	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.


	December 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	$	2,355	$	337	$	898	$	8
AAA	1,559		298		368		6
AA	4,327		817		875		17
A	6,615		749		1,516		23
BBB	13,226		1,621		1,812		42
Non-investment grade	1,429		234		596		16
Total	$	29,511	$	4,056	$	6,065	$	112

Based on current facts and circumstances, the Company believes the unrealized losses presented in the December 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 a general market widening of credit spreads. In reaching this determination, the Company considered the recent volatility in risk-free rates and credit 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 December 31, 2022.

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 $394 million and $369 million as of December 31, 2022 and 2021 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, 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	—		3		3

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	—		—		—

Write-offs charged against the allowance	12		—		12


Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		(9)		(8)
Balance as of December 31, 2022	$	—	$	1	$	1



(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

Write-offs charged against the allowance	16		—		16


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


December 31	2022				2021
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,012	$	1,001	$	1,603	$	1,624
Due after one year through five years	9,880		9,399		10,637		11,229
Due after five years through ten years	13,788		12,453		13,294		14,338
Due after ten years	16,352		14,774		14,411		17,182
Total	$	41,032	$	37,627	$	39,945	$	44,373

The carrying value of limited partnerships as of December 31, 2022 and 2021 was $1,926 million and $1,859 million, which includes net undistributed earnings of $176 million and $266 million. Limited partnerships comprising 26% of the total carrying value are reported on a current basis through December 31, 2022 with no reporting lag, 5% are reported on a one month lag and the remainder are reported on more than a one month lag. The number of limited partnerships held and the strategies employed provide diversification to the limited partnership portfolio and the overall invested asset portfolio.

Limited partnerships comprising 76% and 68% of the carrying value as of December 31, 2022 and 2021 were invested in private debt and equity. Limited partnerships comprising 24% and 32% of the carrying value as of December 31, 2022 and 2021 employ hedge fund strategies. Private debt and equity funds cover a broad range of investment strategies including buyout, co-investment, private credit, growth capital, distressed investing and real estate. Hedge fund strategies include both long and short positions in fixed income, equity and derivative instruments.

The ten largest limited partnership positions held totaled $633 million and $665 million as of December 31, 2022 and 2021. Based on the most recent information available regarding the Company’s percentage ownership of the individual limited partnerships, the carrying value reflected on the Consolidated Balance Sheets represents approximately 1% of the aggregate partnership equity as of December 31, 2022 and 2021, and the related income reflected on the Consolidated Statements of Operations represents approximately 2% of the changes in aggregate partnership equity for the years ended December 31, 2022, 2021 and 2020.

There are risks inherent in limited partnership investments which may result in losses due to short-selling, derivatives or other speculative investment practices. The use of leverage increases volatility generated by the underlying investment strategies.

The Company’s private debt, private equity and other non-hedge fund limited partnership investments generally do not permit voluntary withdrawals. The Company’s hedge fund limited partnership investments contain withdrawal provisions that generally limit liquidity for a period of thirty days up to one year or longer. Typically, hedge fund withdrawals require advance written notice of up to 90 days.

The Company may use derivatives in the normal course of business, primarily in an attempt to reduce its exposure to market risk (principally interest rate risk and foreign currency risk) stemming from various assets and liabilities. The Company's principal objective under such strategies is to achieve the desired reduction in economic risk, even if the position does not receive hedge accounting treatment.

The Company may enter into interest rate swaps, futures and forward commitments to purchase securities to manage interest rate risk. The Company may use foreign currency forward contracts to manage foreign currency risk.

Credit exposure associated with non-performance by the counterparties to derivative instruments is generally limited to the uncollateralized fair value of the asset related to the instruments recognized on the Consolidated Balance Sheets. The Company generally requires that all over-the-counter derivative contracts be governed by an International Swaps and Derivatives Association Master Agreement, and exchanges collateral under the terms of these agreements with its derivative investment counterparties depending on the amount of the exposure and the credit rating of the counterparty. Gross estimated fair values of derivative positions are presented in Other invested assets and Other liabilities on the Consolidated Balance Sheets. The Company does not offset derivative positions against the fair value of collateral provided or positions subject to netting arrangements. There would be no significant difference in the balance included in such accounts if the estimated fair values were presented net as of December 31, 2022 and 2021.

There was less than $1 million of cash collateral provided by the Company and no cash collateral received from counterparties as of December 31, 2022. There was no cash collateral provided by the Company or cash collateral received from counterparties as of December 31, 2021.

As of December 31, 2021, the Company held an embedded derivative on a funds withheld liability related to a coinsurance agreement on its legacy annuity business. The embedded derivative had a notional value of $270 million and a fair value of $(12) million as of December 31, 2021 and was accounted for separately and reported with the funds withheld liability in Other liabilities on the Consolidated Balance Sheets. During the year ended December 31, 2022, the Company novated the coinsurance agreement resulting in the transfer of $224 million of fixed maturity securities, $4 million of short term investments and $2 million of accrued investment income in settlement of the $216 million funds withheld liability and associated $14 million embedded derivative.

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 December 31, 2022, the Company had commitments to purchase or fund approximately $1,455 million and sell approximately $60 million under the terms of these investments.

Cash and securities with carrying values of approximately $2.8 billion and $3.0 billion were deposited by the Company’s insurance subsidiaries under requirements of regulatory authorities and others as of December 31, 2022 and 2021.

Cash and securities with carrying values of approximately $0.9 billion and $1.2 billion were deposited with financial institutions in trust accounts or as collateral for letters of credit to secure obligations with various third parties as of December 31, 2022 and 2021.


December 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	$	13	$	112	$	41	$	53	$	255	$	483
LTV 55% to 65%	13		—		—		—		—		—		13
LTV greater than 65%	18		11		—		—		—		—		29
DSCR 1.2x - 1.6x
LTV less than 55%	5		49		18		43		10		37		162
LTV 55% to 65%	86		—		20		—		—		8		114
LTV greater than 65%	15		—		—		—		—		—		15
DSCR ≤1.2
LTV less than 55%	35		—		—		57		—		—		92
LTV 55% to 65%	41		21		—		38		—		—		100
LTV greater than 65%	27		—		—		22		—		7		56
Total	$	249	$	94	$	150	$	201	$	63	$	307	$	1,064

As of December 31, 2022, accrued interest receivable on mortgage loans totaled $4 million and is excluded from the amortized cost basis disclosed in the table above and the estimate of expected credit losses.