
	September 30, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	32,646	$	0	$	4,297	$	42	$	36,901
Municipalities	1,013		0		305		3		1,315
Mortgage- and asset-backed securities	337		0		28		1		364
Public utilities	4,585		0		960		1		5,544
Sovereign and supranational	1,054		0		82		4		1,132
Banks/financial institutions	7,505		0		683		180		8,008
Other corporate	7,934		0		1,484		86		9,332
Total yen-denominated	55,074		0		7,839		317		62,596
U.S. dollar-denominated:
U.S. government and agencies	276		0		18		0		294
Municipalities	1,143		0		161		0		1,304
Mortgage- and asset-backed securities	344		0		10		1		353
Public utilities	3,942		0		924		12		4,854
Sovereign and supranational	230		0		66		6		290
Banks/financial institutions	2,956		0		738		6		3,688
Other corporate	25,973		38		4,110		296		29,749
Total U.S. dollar-denominated	34,864		38		6,027		321		40,532
Total securities available for sale	$	89,938	$	38	$	13,866	$	638	$	103,128


	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities available for sale, carried at fair value through other comprehensive income:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	30,929	$	5,169	$	0	$	36,098
Municipalities	516		116		3		629
Mortgage- and asset-backed securities	229		25		0		254
Public utilities	1,855		406		0		2,261
Sovereign and supranational	680		50		0		730
Banks/financial institutions	6,152		700		86		6,766
Other corporate	5,323		944		24		6,243
Total yen-denominated	45,684		7,410		113		52,981
U.S dollar-denominated:
U.S. government and agencies	293		9		0		302
Municipalities	1,077		141		0		1,218
Mortgage- and asset-backed securities	149		7		0		156
Public utilities	3,804		725		10		4,519
Sovereign and supranational	239		73		0		312
Banks/financial institutions	2,879		646		4		3,521
Other corporate	25,246		3,255		248		28,253
Total U.S. dollar-denominated	33,687		4,856		262		38,281
Total securities available for sale	$	79,371	$	12,266	$	375	$	91,262


	September 30, 2020
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,941	$	3	$	22,938	$	5,564	$	0	$	28,502
Municipalities	370		0		370		120		0		490

Public utilities	47		1		46		14		0		60
Sovereign and supranational	564		5		559		164		0		723

Other corporate	24		0		24		8		0		32
Total yen-denominated	23,946		9		23,937		5,870		0		29,807
Total securities held to maturity	$	23,946	$	9	$	23,937	$	5,870	$	0	$	29,807


	December 31, 2019
(In millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	22,241	$	6,050	$	0	$	28,291
Municipalities	821		262		0		1,083
Mortgage- and asset-backed securities	16		1		0		17
Public utilities	2,535		419		0		2,954
Sovereign and supranational	1,123		197		0		1,320
Banks/financial institutions	916		105		3		1,018
Other corporate	2,433		485		7		2,911
Total yen-denominated	30,085		7,519		10		37,594
Total securities held to maturity	$	30,085	$	7,519	$	10	$	37,594

During the second and third quarter of 2020, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category. During the first quarter of 2020, as a result of the adoption of ASU 2019-04 discussed in Note 1, the Company reclassified $6.9 billion (at amortized cost) of pre-payable fixed-maturity securities from the held-to-maturity category to the available-for-sale category. This reclassification resulted in recording in accumulated other comprehensive income a net unrealized gain of $848 million on an after-tax basis. During the first nine months of 2019, the Company did not reclassify any investments from the held-to-maturity category to the available-for-sale category.


(In millions)	Amortized Cost (1)			Fair Value
Available for sale:
Due in one year or less		$	1,031		$	1,053
Due after one year through five years		8,938			9,175
Due after five years through 10 years		13,159			15,092
Due after 10 years		66,091			77,091
Mortgage- and asset-backed securities		681			717
Total fixed maturity securities available for sale		$	89,900		$	103,128
Held to maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		0			0
Due after five years through 10 years		251			292
Due after 10 years		23,686			29,515
Mortgage- and asset-backed securities		0			0
Total fixed maturity securities held to maturity		$	23,937		$	29,807

The Company's process for investing in credit-related investments begins with an independent approach to underwriting each issuer's fundamental credit quality. The Company evaluates independently those factors that it believes could influence an issuer's ability to make payments under the contractual terms of the Company's instruments. This includes a thorough analysis of a variety of items including the issuer's country of domicile (including political, legal, and financial considerations); the industry in which the issuer competes (with an analysis of industry structure, end-market dynamics, and regulation); company specific issues (such as management, assets, earnings, cash generation, and capital needs); and contractual provisions of the instrument (such as financial covenants and position in the capital structure). The Company further evaluates the investment considering broad business and portfolio management objectives, including asset/liability needs, portfolio diversification, and expected income.


	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2020		2019			2020		2019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales	$	7	$	11		$	28	$	55
Gross losses from sales	0		(18)			(46)		(29)
Foreign currency gains (losses) on sales and redemptions	(5)		(21)			(39)		(12)
Total sales and redemptions	2		(28)			(57)		14
Equity securities	12		18			(106)		65

Loan loss reserves (1)	0		(5)			0		(8)
Credit losses:
Fixed maturity securities available for sale	0		(13)		(2)	(75)		(13)		(2)
Fixed maturity securities held to maturity	0		0			1		0
Commercial mortgage and other loans	78		0			(86)		0
Loan commitments	64		0			(17)		0
Reinsurance recoverables and other	0		0			(2)		0
Total credit losses	142		(13)			(179)		(13)
Derivatives and other:
Derivative gains (losses)	138		(146)			173		(24)
Foreign currency gains (losses)	(186)		21			(356)		(181)
Total derivatives and other	(48)		(125)			(183)		(205)
Total net investment gains (losses)	$	108	$	(153)		$	(525)	$	(147)

The unrealized holding gains, net of losses, recorded as a component of net investment gains and losses for the three-month period ended September 30, 2020, that relate to equity securities still held at the September 30, 2020 reporting date, were $31 million. The unrealized holding losses, net of gains, recorded as a component of net investment gains and losses for the nine-month period ended September 30, 2020, that relate to equity securities still held at the September 30, 2020 reporting date, were $109 million.

The following tables show the fair values and gross unrealized losses of the Company's available-for-sale investments for the period ended September 30, 2020 and available-for-sale and held-to-maturity investments for prior periods that were in an unrealized loss position, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.


	September 30, 2020
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities available for sale:


Japan government and agencies:
Yen-denominated		$	1,997		42			1,997			42			0			0
Municipalities:
Yen-denominated		74			3			60			2			14			1
Mortgage- and asset- backed securities:
U.S. dollar-denominated		67			1			67			1			0			0
Yen-denominated		36			1			36			1			0			0
Public utilities:
U.S. dollar-denominated		342			12			210			6			132			6
Yen-denominated		214			1			214			1			0			0
Sovereign and supranational:
U.S. dollar-denominated		36			6			36			6			0			0
Yen-denominated		35			4			35			4			0			0
Banks/financial institutions:
U.S. dollar-denominated		103			6			65			1			38			5
Yen-denominated		2,859			180			1,853			102			1,006			78
Other corporate:
U.S. dollar-denominated		4,574			296			2,200			76			2,374			220
Yen-denominated		1,095			86			911			81			184			5
Total		$	11,432		$	638		$	7,684		$	323		$	3,748		$	315


	December 31, 2019
	Total						Less than 12 months						12 months or longer
(In millions)	Fair Value			Unrealized Losses			Fair Value			Unrealized Losses			Fair Value			Unrealized Losses
Fixed maturity securities:




Municipalities:

Yen-denominated		$	80		$	3		$	80		$	3		$	0		$	0


Public utilities:
U.S. dollar-denominated		306			10			69			2			237			8

Banks/financial institutions:
U.S. dollar-denominated		79			4			18			0			61			4
Yen-denominated		1,828			89			1,828			89			0			0
Other corporate:
U.S. dollar-denominated		4,261			248			792			53			3,469			195
Yen-denominated		636			31			636			31			0			0
Total		$	7,190		$	385		$	3,423		$	178		$	3,767		$	207

For any significant declines in fair value of its fixed maturity securities, the Company performs a more focused review of the related issuers' credit profile. For corporate issuers, the Company evaluates their assets, business profile including industry dynamics and competitive positioning, financial statements and other available financial data. For non-corporate issuers, the Company analyzes all sources of credit support, including issuer-specific factors. The Company utilizes information available in the public domain and, for certain private placement issuers, from consultations with the issuers directly. The Company also considers ratings from Nationally Recognized Statistical Rating Organizations (NRSROs), as well as the specific characteristics of the security it owns including seniority in the issuer's capital structure, covenant protections, or other relevant features. From these reviews, the Company evaluates the issuers' continued ability to service the Company's investment through payment of interest and principal.

Assuming no credit-related factors develop, unrealized gains and losses on fixed maturity securities are expected to diminish as investments near maturity. Based on its credit analysis, the Company believes that the issuers of its fixed maturity investments in the sectors shown in the table above have the ability to service their obligations to the Company, and the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity.

However, the Company has identified certain available-for-sale fixed maturity securities where the amortized cost basis exceeds the present value of the cash flows expected to be collected due to credit related factors and as a result, a credit allowance has been calculated. As of September 30, 2020, the Company held an allowance of $38 million. Refer to the Credit Losses section below for additional information.

The Company classifies its transitional real estate loans (TREs), commercial mortgage loans (CMLs) and middle market loans (MMLs) as held-for-investment and includes them in the commercial mortgage and other loans line on the consolidated balance sheets. The Company carries them on the balance sheet at amortized cost less an estimated allowance for credit losses.


(In millions)	September 30, 2020				December 31, 2019
	Amortized Cost		% of Total		Amortized Cost			% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	2,146	19.5	%	$	1,800		18.7	%
Retail	179		1.6		131			1.4
Apartments/Multi-Family	2,000		18.2		2,085			21.7
Industrial	145		1.3		256			2.7
Hospitality	1,093		10.0		1,036			10.8
Other	81		0.7		164			1.7
Total transitional real estate loans	5,644		51.3		5,472			57.0
Commercial mortgage loans:
Office	403		3.7		410			4.3
Retail	342		3.1		348			3.5
Apartments/Multi-Family	594		5.4		569			5.9
Industrial	393		3.6		383			4.0


Total commercial mortgage loans	1,732		15.8		1,710			17.7
Middle market loans	3,611		32.9		2,432			25.3
Total commercial mortgage and other loans	$	10,987	100.0	%	$	9,614		100.0	%
Allowance for credit losses	(165)				(45)		(1)
Total net commercial mortgage and other loans	$	10,822			$	9,569

Transitional real estate loans are commercial mortgage loans that are typically relatively short-term floating rate instruments secured by a first lien on the property. These loans provide funding for properties undergoing a change in their physical characteristics and/or economic profile and do not typically require any principal repayment prior to the maturity date. This loan portfolio is generally considered to be investment grade. As of September 30, 2020, the Company had $657 million in outstanding commitments to fund transitional real estate loans. These commitments are contingent on the final underwriting and due diligence to be performed.

Commercial mortgage loans are typically fixed rate loans on commercial real estate with partial repayment of principal over the life of the loan with the remaining outstanding principal being repaid upon maturity. This loan portfolio is generally considered higher quality investment grade loans. As of September 30, 2020, the Company had no outstanding commitments to fund commercial mortgage loans.

Middle market loans are typically first lien senior secured cash flow loans to small to mid-size companies for working capital, refinancing, acquisition, and recapitalization. These loans are generally considered to be below investment grade. The carrying value for middle market loans included $26 million and $99 million for a short term credit facility that is reflected in other liabilities on the consolidated balance sheets, as of September 30, 2020, and December 31, 2019, respectively.

As of September 30, 2020, the Company had commitments of approximately $2.3 billion of which $2.0 billion was a result of a new agreement with an external manager during the first quarter of 2020 to fund future middle market loans. These commitments are contingent upon the availability of middle market loans that meet the Company's underwriting criteria.

Effective January 1, 2020, the Company adopted ASC 326: Financial Instruments - Credit Losses. The newly adopted accounting standard requires the Company to estimate an expected lifetime credit loss on financial assets including short-term receivables, held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverables. For the Company’s available-for-sale fixed maturity securities, the newly adopted guidance requires an entity to evaluate estimated credit losses only when the fair value of the available-for-sale fixed maturity security is below its amortized cost basis. Credit loss changes are recorded as a component of net investment gains and losses for the Company’s held-to-maturity and available-for-sale securities, loan receivables, loan commitments and reinsurance recoverables. The Company’s off-balance sheet credit exposure is primarily attributable to loan commitments that are not unconditionally cancellable. The Company considers the contractual period of exposure to credit risk, the likelihood that funding will occur, the risk of loss, and the current conditions and expectations of future economic conditions to develop the estimate of expected credit losses. The Company records the estimate of expected credit losses for certain loan commitments within other liabilities in the consolidated balance sheet.

The Company has elected not to measure an allowance on accrued interest income for all asset types, because the uncollectible accrued interest receivable is written off in a timely manner. The Company writes off accrued interest when it is more than ninety days past due. The Company has elected to write off accrued interest by reversing interest income, which is a component of net investment income, in the consolidated statement of earnings.

The Company designates nonaccrual status for a nonperforming debt security or a loan that is not generating its stated interest rate because of nonpayment of periodic interest by the borrower. The Company applies the cash basis method to record any payments received on non-accrual assets. The Company resumes the accrual of interest on fixed maturity securities and loans that are currently making contractual payments or for those that are not current where the borrower has paid timely (less than 30 days outstanding).

The Company records due premium receivable net of current expected credit losses in the receivables line item in the consolidated balance sheet, utilizing an aging methodology based on historical loss information, adjusted for current conditions and reasonable and supportable forecasts. Changes in the estimated credit losses related to premium receivable are recorded in net premiums in the consolidated statement of earnings.

For TREs, the Company’s key credit quality indicator is loan-to-value (LTV). Given that TRE loans involve properties undergoing renovation or construction, loan-to-value provides the most insight into the credit risk of the loan. The Company monitors the performance of the loans periodically, but not less frequently than quarterly.

For CMLs, the Company’s key credit quality indicators include LTV and debt service coverage ratios (DSCR). LTV is calculated by dividing the current outstanding loan balance by the most recent estimated property value. DSCR is the most recently available operating income of the underlying property compared to the required debt service of the loan.

For MMLs and held-to-maturity fixed maturity securities, the Company’s key credit quality indicator is credit ratings. The Company’s held-to-maturity portfolio is composed of investment grade securities that are senior unsecured instruments, while its MMLs generally have below-investment-grade ratings but are typically senior secured instruments. The Company monitors the credit ratings periodically, but not less frequently than quarterly.

For the Company’s reinsurance recoverable balance, the key credit quality indicator is the credit rating of the Company’s reinsurance counterparty. The Company uses external credit ratings focused on the reinsurer’s financial strength and credit worthiness. The Company's counterparties are rated A+. The Company monitors the credit ratings periodically, but not less frequently than quarterly.


Commercial Mortgage Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	32	$	402	$	101	$	69	$	553	$	0	$	1,157	2.63
60%-69.99%	16		224		70		0		184		0		494		1.93
70%-79.99%	0		33		0		0		22		0		55		1.79
80% or greater	0		0		0		0		26		0		26		1.66
Total	48		659		171		69		785		0		1,732		2.39
Weighted Average DSCR	1.98		2.53		2.23		2.56		2.32		0.00		2.39


Middle Market Loans
(In millions)	2020		2019		2018		2017		2016		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	25	$	117	$	62	$	56	$	5	$	0	$	16	$	281
BB	201		235		237		84		37		15		86		895
B	267		740		315		235		119		24		185		1,885
CCC	15		98		121		96		37		31		90		488
CC and lower	0		0		19		39		3		0		1		62
Total	$	508	$	1,190	$	754	$	510	$	201	$	70	$	378	$	3,611

The Company calculates its allowance for credit losses for held-to-maturity fixed maturity securities, loan receivables, loan commitments and reinsurance recoverable by grouping assets with similar risk characteristics when there is not a specific expectation of a loss for an individual asset. For held-to-maturity fixed maturity securities, MMLs, and MML commitments, the Company groups assets by credit ratings, industry, and country. The Company groups CMLs and TREs and respective loan commitments by property type, property location and the property’s loan-to-value and debt service coverage ratios. The credit allowance for the reinsurance recoverable balance is estimated using a probability-of-default (PD) / loss-given-default (LGD) method.

The Company’s methodology for estimating credit losses for available-for-sale fixed maturity securities utilizes the discounted cash flow model, based on past events, current market conditions and future economic conditions, as well as industry analysis and credit ratings of the fixed maturity securities. In addition, the Company evaluates the specific issuer’s probability of default and expected recovery of its position in the event of default based on the underlying financial condition and assets of the borrower as well as seniority and/or security of other debt holders in the issuer when developing management’s best estimate of expected cash flows.

The credit allowance for held-to-maturity fixed maturity securities and loan receivables is estimated using a PD / LGD method, discounted for the time value of money. For held-to-maturity fixed maturity securities, available-for-sale fixed maturity securities and loan receivables, the Company includes the change in present value due to the passage of time in the change in the allowance for credit losses. The Company’s methodology for estimating credit losses utilizes the contractual maturity date of the financial asset, adjusted when necessary to reflect the expected timing of repayment (such as prepayment options, renewal options, call options, or extension options). The Company applies reasonable and supportable forecasts of macroeconomic variables that impact the determination of PD/LGD over a two-year period for held-to-maturity fixed maturity securities and MMLs. The Company reverts to historical loss information over one year, following the two-year forecast period. For the CML and TRE portfolio, the Company applies reasonable and supportable forecasts of macroeconomic variables as well as national and local real-estate market factors to estimate future credit losses where the market factors revert back to historical levels over time with the period being dependent on current market conditions, projected market conditions and difference in the current and historical market levels for each factor. The Company continuously monitors the estimation methodology, due to changes in portfolio composition, changes in underwriting practices and significant events or conditions and makes adjustments as necessary.

A TDR involves a situation where the Company grants a concession to a borrower that the Company would not otherwise have considered due to the borrower’s financial difficulties. The Company has elected to apply Section 4013 of the CARES Act, or the Interagency statement which temporarily suspends TDR accounting guidance for loan modifications, such as extensions or deferrals, related to COVID-19. The relief provided by the CARES Act applies to loan modifications made between March 1, 2020 and the earlier of (i) December 31, 2020 or (ii) 60 days after the end of the COVID-19 national emergency, as determined by the Executive Branch, whereas the Interagency statement does not specify a time horizon.

The Company granted certain loan modifications in its MML and TRE portfolios due to COVID-19 during the nine months ended September 30, 2020. The nature of the modifications varied in scope and significance, but generally a small proportion of modifications qualified as TDR. The Company continues to evaluate loan modifications in our MML and TRE portfolios. As of September 30, 2020, the amortized cost of modified loans where Section 4013 of the CARES Act or the Interagency statement is applicable was immaterial.

The Company had an immaterial amount of TDRs during the nine months ended September 30, 2020. The Company had no TDRs during 2019. For certain TDRs, modifications resulted in write-offs for certain loans where the modified loan resulted in a forgiveness of existing principal and are included in the rollforward of the allowance for credit losses below.


(in millions)	Transitional Real Estate Loans		Commercial Mortgage Loans		Middle Market Loans		Held to Maturity Securities		Available for Sale Securities		Reinsurance Recoverables
Balance at December 31, 2019 (1)	$	(22)	$	(3)	$	(20)	$	0	$	0	$	0
Transition impact to retained earnings	(2)		(8)		(33)		(10)		0		(11)
(Addition to) release of allowance for credit losses	(29)		(17)		(31)		1		(75)		0
Write-offs, net of recoveries	0		0		0		0		37		0

Balance at September 30, 2020	$	(53)	$	(28)	$	(84)	$	(9)	$	(38)	$	(11)

For assets that are subject to the credit loss measurement, the change in credit loss allowance will be significantly impacted by purchases and sales in those assets during the period as well as entering into new non-cancelable loan commitments. During the first quarter of 2020, the Company entered into a loan commitment with an external manager that met the requirements to recognize a credit loss on over $2.2 billion of loan commitments over the next few years. The estimate of credit losses for loan commitments as of September 30, 2020 was $31 million.

The Company's ownership interest in VIEs is limited to holding the obligations issued by them. The Company has no direct or contingent obligations to fund the limited activities of these VIEs, nor does it have any direct or indirect financial guarantees related to the limited activities of these VIEs. The Company has not provided any assistance or any other type of financing support to any of the VIEs it invests in, nor does it have any intention to do so in the future. For those VIEs in which the Company holds debt obligations, the weighted-average lives of the Company's notes are very similar to the underlying collateral held by these VIEs where applicable.


	September 30, 2020						December 31, 2019
(In millions)	Amortized Cost (1)			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	3,279		$	4,284		$	3,308		$	4,312

Commercial mortgage and other loans		9,245			9,201			7,956			8,015
Other investments (2)		658			658			494			494
Other assets (3)		97			97			169			169
Total assets of consolidated VIEs		$	13,279		$	14,240		$	11,927		$	12,990
Liabilities:
Other liabilities (3)		$	240		$	240		$	126		$	126
Total liabilities of consolidated VIEs		$	240		$	240		$	126		$	126

The Company is substantively the only investor in the consolidated VIEs listed in the table above. As the sole investor in these VIEs, the Company has the power to direct the activities of a variable interest entity that most significantly impact the entity's economic performance and is therefore considered to be the primary beneficiary of the VIEs that it consolidates. The Company also participates in substantially all of the variability created by these VIEs. The activities of these VIEs are limited to holding invested assets and foreign currency swaps, as appropriate, and utilizing the cash flows from these securities to service its investment. Neither the Company nor any of its creditors are able to obtain the underlying collateral of the VIEs unless there is an event of default or other specified event. For those VIEs that contain a swap, the Company is not a direct counterparty to the swap contracts and has no control over them. The Company's loss exposure to these VIEs is limited to its original investment. The Company's consolidated VIEs do not rely on outside or ongoing sources of funding to support their activities beyond the underlying collateral and swap contracts, if applicable. With the exception of its investment in unit trust structures, the underlying collateral assets and funding of the Company's consolidated VIEs are generally static in nature.


	September 30, 2020						December 31, 2019
(In millions)	Amortized Cost			Fair Value			Amortized Cost			Fair Value
Assets:
Fixed maturity securities, available for sale		$	5,800		$	6,985		$	4,129		$	4,884
Fixed maturity securities, held to maturity		0			0			1,848			2,236
Other investments (1)		137			137			75			74
Total investments in VIEs not consolidated		$	5,937		$	7,122		$	6,052		$	7,194

The Company holds alternative investments in limited partnerships that have been determined to be VIEs. These partnerships invest in private equity and structured investments. The Company’s maximum exposure to loss on these investments is limited to the amount of its investment. The Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them. The Company classifies these investments as Other investments in the consolidated balance sheets.

Certain investments in VIEs that the Company is not required to consolidate are investments that are in the form of debt obligations from the VIEs that are irrevocably and unconditionally guaranteed by their corporate parents or sponsors. These VIEs are the primary financing vehicles used by their corporate sponsors to raise financing in the capital markets. The variable interests created by these VIEs are principally or solely a result of the debt instruments issued by them. The Company does not have the power to direct the activities that most significantly impact the entity's economic performance, nor does it have the obligation to absorb losses of the entity or the right to receive benefits from the entity. As such, the Company is not the primary beneficiary of these VIEs and is therefore not required to consolidate them.

The Company lends fixed maturity and public equity securities to financial institutions in short-term security-lending transactions. These short-term security-lending arrangements increase investment income with minimal risk. The Company receives cash or other securities as collateral for such loans. The Company's security lending policy requires that the fair value of the securities received as collateral be 102% or more of the fair value of the loaned securities and that unrestricted cash received as collateral be 100% or more of the fair value of the loaned securities. The securities loaned continue to be carried as investment assets on the Company's balance sheet during the terms of the loans and are not reported as sales. For loans involving unrestricted cash or securities as collateral, the collateral is reported as an asset with a corresponding liability for the return of the collateral. For loans where the Company receives as collateral securities that the Company is not permitted to sell or repledge, the collateral is not reflected on the consolidated financial statements.


Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
	September 30, 2020						December 31, 2019
(In millions)	Overnight and Continuous(1)		Up to 30 days		Total			Overnight and Continuous(1)		Up to 30 days		Total
Securities lending transactions:
Fixed maturity securities:
Japan government and agencies	$	0	$	534	$	534		$	0	$	1,013	$	1,013

Public utilities	61		0		61			35		0		35
Sovereign and supranational	2		0		2			2		0		2
Banks/financial institutions	85		0		85			48		0		48
Other corporate	813		0		813			778		0		778
Total borrowings	$	961	$	534	$	1,495		$	863	$	1,013	$	1,876
Gross amount of recognized liabilities for securities lending transactions					$	1,495						$	1,876

In connection with securities lending, in addition to cash collateral received, the Company received from counterparties securities collateral of $6,176 million and $4,759 million at September 30, 2020 and December 31, 2019, respectively, which may not be sold or re-pledged, unless the counterparty is in default. Such securities collateral is not reflected on the consolidated financial statements.