Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Net investment income

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

Years ended December 31
(In millions)	2023		2022		2021
Fixed maturity securities	$	1,941	$	1,787	$	1,707
Equity securities	63		23		83
Limited partnership investments	174		(12)		362
Mortgage loans	58		54		61
Short-term investments	75		16		1
Trading portfolio	4		4		9
Other	28		5		—
Gross investment income	2,343		1,877		2,223
Investment expense	(79)		(72)		(64)
Net investment income	$	2,264	$	1,805	$	2,159
Net investment income (loss) recognized due to the change in fair value of common stock held as of December 31, 2023, 2022 and 2021	$	11	$	47	$	28

Net realized investment gains (losses)

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

Years ended December 31
(In millions)	2023		2022		2021
Net investment gains (losses):
Fixed maturity securities:
Gross gains	$	75	$	120	$	186
Gross losses	(166)		(261)		(90)
Net investment gains (losses) on fixed maturity securities	(91)		(141)		96
Equity securities	4		(116)		4
Derivatives	(1)		64		6
Mortgage loans	(11)		(8)		10
Short-term investments and other	—		2		4
Net investment gains (losses)	$	(99)	$	(199)	$	120
Net investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock held as of December 31, 2023, 2022 and 2021	$	14	$	(75)	$	2

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)	2023		2022		2021
Fixed maturity securities available-for-sale:
Corporate and other bonds	$	33	$	62	$	11
Asset-backed	11		—		20
Impairment losses (gains) recognized in earnings	$	44	$	62	$	31

Summary of fixed maturity securities

The following tables present a summary of fixed maturity securities.

December 31, 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	$	25,020	$	597	$	1,345	$	4	$	24,268
States, municipalities and political subdivisions	7,713		382		703		—		7,392
Asset-backed:
Residential mortgage-backed	3,411		16		425		—		3,002
Commercial mortgage-backed	1,862		7		230		8		1,631
Other asset-backed	3,515		13		256		4		3,268
Total asset-backed	8,788		36		911		12		7,901
U.S. Treasury and obligations of government-sponsored enterprises	152		1		2		—		151
Foreign government	741		6		34		—		713
Redeemable preferred stock	—		—		—		—		—
Total fixed maturity securities available-for-sale	42,414		1,022		2,995		16		40,425
Total fixed maturity securities trading	—		—		—		—		—
Total fixed maturity securities	$	42,414	$	1,022	$	2,995	$	16	$	40,425

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

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, 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	$	1,943	$	37	$	13,406	$	1,308	$	15,349	$	1,345
States, municipalities and political subdivisions	598		18		3,104		685		3,702		703
Asset-backed:
Residential mortgage-backed	233		4		2,212		421		2,445		425
Commercial mortgage-backed	200		5		1,184		225		1,384		230
Other asset-backed	392		8		1,869		248		2,261		256
Total asset-backed	825		17		5,265		894		6,090		911
U.S. Treasury and obligations of government-sponsored enterprises	65		1		23		1		88		2
Foreign government	52		1		450		33		502		34
Total	$	3,483	$	74	$	22,248	$	2,921	$	25,731	$	2,995

	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 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, 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	$	2,273	$	309	$	2,355	$	337
AAA	1,524		261		1,559		298
AA	3,817		658		4,327		817
A	5,652		517		6,615		749
BBB	11,523		1,095		13,226		1,621
Non-investment grade	942		155		1,429		234
Total	$	25,731	$	2,995	$	29,511	$	4,056

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

(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	10		7		17
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	8		—		8
Write-offs charged against the allowance	15		—		15
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		4		5
Balance as of December 31, 2023	$	4	$	12	$	16

(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
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		(9)		(8)
Balance as of December 31, 2022	$	—	$	1	$	1

Contractual maturity

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

December 31	2023				2022
(In millions)	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,121	$	1,091	$	1,012	$	1,001
Due after one year through five years	11,563		11,180		9,880		9,399
Due after five years through ten years	13,359		12,573		13,788		12,453
Due after ten years	16,371		15,581		16,352		14,774
Total	$	42,414	$	40,425	$	41,032	$	37,627

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).

December 31, 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%	$	33	$	9	$	8	$	98	$	60	$	238	$	446
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		21		97
LTV 55% to 65%	34		36		36		23		—		32		161
LTV greater than 65%	—		65		—		—		—		—		65
DSCR ≤1.2
LTV less than 55%	6		34		—		—		—		—		40
LTV 55% to 65%	26		40		—		—		43		—		109
LTV greater than 65%	—		28		21		—		41		7		97
Total	$	127	$	248	$	81	$	135	$	181	$	298	$	1,070

(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.