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Investments (Tables)

12 Months Ended

Dec. 31, 2022

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


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

Net realized investment gains (losses)

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


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)

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

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

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.


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

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

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

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

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

Contractual maturity

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


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

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, 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

(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.