
Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Fixed maturity securities	$	491	$	454	$	1,443	$	1,324
Equity securities	9		2		42		(7)
Limited partnership investments	28		(35)		108		(11)
Mortgage loans	15		13		43		40
Short term investments	23		4		51		6
Trading portfolio	1		1		4		2
Other	6		1		20		1
Gross investment income	573		440		1,711		1,355
Investment expense	(20)		(18)		(58)		(53)
Net investment income	$	553	$	422	$	1,653	$	1,302
Net investment income (loss) recognized due to the change in fair value of common stock held as of September 30, 2023 and 2022	$	(3)	$	(18)	$	2	$	(38)


Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	12	$	23	$	55	$	94
Gross losses	(49)		(134)		(141)		(222)
Net investment gains (losses) on fixed maturity securities	(37)		(111)		(86)		(128)
Equity securities	2		(2)		(9)		(111)
Derivatives	—		24		—		79
Mortgage loans	(5)		(8)		(11)		(8)
Short term investments and other	2		1		1		2
Net investment gains (losses)	$	(38)	$	(96)	$	(105)	$	(166)
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of September 30, 2023 and 2022	$	2	$	(2)	$	2	$	(109)

Net investment gains (losses) for the three months ended September 30, 2022 in the table above included a $35 million net loss 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 loss of $35 million was comprised of a $59 million loss on the fixed maturity securities supporting the funds withheld liability to recognize unrealized losses which had been included in AOCI since the inception of the coinsurance agreement, partially offset by a $24 million gain on the associated embedded derivative. Taken together, this net loss was the final recognition of changes in the valuation of the funds held assets and offsets previously recognized net investment gains on the associated embedded derivative. The coinsurance agreement was novated in the fourth quarter of 2022.

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.


Periods ended September 30	Three Months				Nine Months
(In millions)	2023		2022		2023		2022
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	8	$	24	$	25	$	53
Asset-backed	4		1		12		2
Impairment losses (gains) recognized in earnings	$	12	$	25	$	37	$	55

The Company also recognized $5 million and $11 million of losses on mortgage loans during the three and nine months ended September 30, 2023 due to changes in expected credit losses. There were $8 million of losses recognized on mortgage loans during the three and nine months ended September 30, 2022.


September 30, 2023	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	$	24,757	$	196	$	2,437	$	5	$	22,511
States, municipalities and political subdivisions	8,003		183		1,152		—		7,034
Asset-backed:
Residential mortgage-backed	3,425		4		599		—		2,830
Commercial mortgage-backed	1,833		4		276		7		1,554
Other asset-backed	3,483		7		366		6		3,118
Total asset-backed	8,741		15		1,241		13		7,502
U.S. Treasury and obligations of government-sponsored enterprises	150		1		2		—		149
Foreign government	713		1		56		—		658
Redeemable preferred stock	—		—		—		—		—
Total fixed maturity securities available-for-sale	42,364		396		4,888		18		37,854
Total fixed maturity securities trading	2		—		—		—		2
Total fixed maturity securities	$	42,366	$	396	$	4,888	$	18	$	37,856


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

The following tables present the estimated fair value and gross unrealized losses of available-for-sale 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
September 30, 2023	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	$	6,374	$	378	$	12,794	$	2,059	$	19,168	$	2,437
States, municipalities and political subdivisions	1,593		138		2,902		1,014		4,495		1,152
Asset-backed:
Residential mortgage-backed	680		30		2,094		569		2,774		599
Commercial mortgage-backed	273		9		1,161		267		1,434		276
Other asset-backed	609		40		1,873		326		2,482		366
Total asset-backed	1,562		79		5,128		1,162		6,690		1,241
U.S. Treasury and obligations of government-sponsored enterprises	106		1		21		1		127		2
Foreign government	201		9		436		47		637		56
Total	$	9,836	$	605	$	21,281	$	4,283	$	31,117	$	4,888


	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

The following table presents the estimated fair value and gross unrealized losses of available-for-sale fixed maturity securities in a gross unrealized loss position for which an allowance for credit loss has not been recorded, by ratings distribution.


	September 30, 2023				December 31, 2022
(In millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
U.S. Government, Government agencies and Government-sponsored enterprises	$	2,620	$	466	$	2,355	$	337
AAA	1,893		382		1,559		298
AA	4,458		1,037		4,327		817
A	7,240		913		6,615		749
BBB	13,704		1,881		13,226		1,621
Non-investment grade	1,202		209		1,429		234
Total	$	31,117	$	4,888	$	29,511	$	4,056

Based on current facts and circumstances, the Company believes the unrealized losses presented in the September 30, 2023 securities in a gross unrealized loss position tables above are not indicative of the ultimate collectability of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates. In reaching this determination, the Company considered the continued 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 September 30, 2023.

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 $430 million, $394 million, and $401 million as of September 30, 2023, December 31, 2022, and September 30, 2022 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 July 1, 2023	$	13	$	9	$	22
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	5		—		5
Available-for-sale securities accounted for as PCD assets	2		—		2

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	15		—		15


Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		4		4
Balance as of September 30, 2023	$	5	$	13	$	18



(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of July 1, 2022	$	—	$	5	$	5
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	—		—		—


Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	—		(2)		(2)
Balance as of September 30, 2022	$	—	$	3	$	3


(In millions)	Corporate and other bonds		Asset-backed		Total
Allowance for credit losses:
Balance as of January 1, 2023	$	—	$	1	$	1
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	6		7		13
Available-for-sale securities accounted for as PCD assets	22		—		22

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	3		—		3
Write-offs charged against the allowance	15		—		15


Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		5		6
Balance as of September 30, 2023	$	5	$	13	$	18



(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)	—		—		—
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	12		—		12


Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		(7)		(6)
Balance as of September 30, 2022	$	—	$	3	$	3


	September 30, 2023				December 31, 2022
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,137	$	1,096	$	1,012	$	1,001
Due after one year through five years	11,320		10,651		9,880		9,399
Due after five years through ten years	13,044		11,610		13,788		12,453
Due after ten years	16,863		14,497		16,352		14,774
Total	$	42,364	$	37,854	$	41,032	$	37,627

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.

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 September 30, 2023, the Company had commitments to purchase or fund approximately $1,555 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).


September 30, 2023	Mortgage Loans Amortized Cost Basis by Origination Year (1)
(In millions)	2023		2022		2021		2020		2019		Prior		Total
DSCR ≥1.6x
LTV less than 55%	$	—	$	9	$	8	$	97	$	61	$	242	$	417
LTV 55% to 65%	—		—		5		—		8		—		13
LTV greater than 65%	—		31		11		—		—		—		42
DSCR 1.2x - 1.6x
LTV less than 55%	28		5		—		14		29		28		104
LTV 55% to 65%	15		36		36		24		—		32		143
LTV greater than 65%	—		65		—		—		—		—		65
DSCR ≤1.2
LTV less than 55%	22		34		—		—		—		—		56
LTV 55% to 65%	10		41		—		—		43		—		94
LTV greater than 65%	—		27		21		—		41		7		96
Total	$	75	$	248	$	81	$	135	$	182	$	309	$	1,030

(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 September 30, 2023, 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.