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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2020
Available-for-Sale Debt Securities
The amortized cost for the Company's investments in fixed maturity securities, the cost for equity securities and the fair values of these investments are shown in the following tables.
  
September 30, 2020
(In millions)
Amortized
Cost		Allowance for Credit LossesGross
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 
Municipalities1,013 0 305 3 1,315 
Mortgage- and asset-backed securities337 0 28 1 364 
Public utilities4,585 0 960 1 5,544 
Sovereign and supranational1,054 0 82 4 1,132 
Banks/financial institutions7,505 0 683 180 8,008 
Other corporate7,934 0 1,484 86 9,332 
Total yen-denominated55,074 0 7,839 317 62,596 
  U.S. dollar-denominated:
U.S. government and agencies276 0 18 0 294 
Municipalities1,143 0 161 0 1,304 
Mortgage- and asset-backed securities344 0 10 1 353 
Public utilities3,942 0 924 12 4,854 
Sovereign and supranational230 0 66 6 290 
Banks/financial institutions2,956 0 738 6 3,688 
Other corporate25,973 38 4,110 296 29,749 
Total U.S. dollar-denominated34,864 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 
Municipalities516 116 3 629 
Mortgage- and asset-backed securities229 25 0 254 
Public utilities1,855 406 0 2,261 
Sovereign and supranational680 50 0 730 
Banks/financial institutions6,152 700 86 6,766 
Other corporate5,323 944 24 6,243 
Total yen-denominated45,684 7,410 113 52,981 
  U.S dollar-denominated:
U.S. government and agencies293 9 0 302 
Municipalities1,077 141 0 1,218 
Mortgage- and asset-backed securities149 7 0 156 
Public utilities3,804 725 10 4,519 
Sovereign and supranational239 73 0 312 
Banks/financial institutions2,879 646 4 3,521 
Other corporate25,246 3,255 248 28,253 
Total U.S. dollar-denominated33,687 4,856 262 38,281 
Total securities available for sale$79,371 $12,266 $375 $91,262 
Held-to-maturity Securities
  
September 30, 2020
(In millions)
Amortized
Cost		Allowance for Credit LossesNet Carrying AmountGross
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 
Municipalities370 0 370 120 0 490 
Public utilities47 1 46 14 0 60 
Sovereign and supranational564 5 559 164 0 723 
Other corporate24 0 24 8 0 32 
Total yen-denominated23,946 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 
Municipalities821 262 0 1,083 
Mortgage- and asset-backed securities16 1 0 17 
Public utilities2,535 419 0 2,954 
Sovereign and supranational1,123 197 0 1,320 
Banks/financial institutions916 105 3 1,018 
Other corporate2,433 485 7 2,911 
Total yen-denominated30,085 7,519 10 37,594 
Total securities held to maturity$30,085 $7,519 $10 $37,594 
Equity securities, FV-NI
(In millions)September 30, 2020December 31, 2019
Equity securities, carried at fair value through net earnings:Fair ValueFair Value
Equity securities:
      Yen-denominated$630 $658 
      U.S. dollar-denominated145 144 
Total equity securities$775 $802 
Investments Classified by Contractual Maturity Date The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2020, were as follows:
(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 years8,938 9,175 
Due after five years through 10 years13,159 15,092 
Due after 10 years66,091 77,091 
Mortgage- and asset-backed securities681 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 years0 0 
Due after five years through 10 years251 292 
Due after 10 years23,686 29,515 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held to maturity$23,937 $29,807 
(1) Net of allowance for credit losses
Investment Exposures Exceeding Ten Percent Shareholders Equity
Investment exposures that individually exceeded 10% of shareholders' equity were as follows:
September 30, 2020December 31, 2019
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$54,078$63,588A+$51,726$62,584
(1)Japan Government Bonds (JGBs) or JGB-backed securities
Gain (Loss) on Investments
Information regarding pretax net gains and losses from investments is as follows:
  
Three Months Ended
September 30,		Nine Months Ended
September 30,
(In millions)2020201920202019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales$7 $11 $28 $55 
Gross losses from sales0 (18)(46)(29)
Foreign currency gains (losses) on sales and redemptions(5)(21)(39)(12)
Total sales and redemptions2 (28)(57)14 
Equity securities12 

18 (106)65 
Loan loss reserves (1)
0 (5)0 (8)
Credit losses:
Fixed maturity securities available for sale0 (13)
(2)
(75)(13)
(2)
Fixed maturity securities held to maturity0 0 1 0 
Commercial mortgage and other loans78 0 (86)0 
Loan commitments64 0 (17)0 
Reinsurance recoverables and other0 0 (2)0 
Total credit losses142 (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)
(1) U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only
(2) Includes other-than-temporary impairment losses for prior year
Net Effect on Shareholders' Equity of Unrealized Gains and Losses from Investment Securities
The net effect on shareholders’ equity of unrealized gains and losses from fixed maturity securities was as follows:
(In millions)September 30, 2020December 31,
2019
Unrealized gains (losses) on securities available for sale$13,228 $11,891 
Deferred income taxes(3,708)(3,343)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$9,520 $8,548 
Investments Gross Unrealized Loss Aging 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
  
TotalLess than 12 months12 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-denominated74 3 60 2 14 1 
Mortgage- and asset-
backed securities:
  U.S. dollar-denominated67 1 67 1 0 0 
  Yen-denominated36 1 36 1 0 0 
  Public utilities:
  U.S. dollar-denominated342 12 210 6 132 6 
      Yen-denominated214 1 214 1 0 0 
  Sovereign and supranational:
  U.S. dollar-denominated36 6 36 6 0 0 
  Yen-denominated35 4 35 4 0 0 
  Banks/financial institutions:
  U.S. dollar-denominated103 6 65 1 38 5 
  Yen-denominated2,859 180 1,853 102 1,006 78 
  Other corporate:
  U.S. dollar-denominated4,574 296 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
  
TotalLess than 12 months12 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-denominated306 10 69 2 237 8 
  Banks/financial institutions:
  U.S. dollar-denominated79 4 18 0 61 4 
  Yen-denominated1,828 89 1,828 89 0 0 
  Other corporate:
  U.S. dollar-denominated4,261 248 792 53 3,469 195 
  Yen-denominated636 31 636 31 0 0 
  Total $7,190 $385 $3,423 $178 $3,767 $207 
Composition of the Carrying Value for Commercial Mortgage and Other Loans by Property Type The following table reflects the composition of the carrying value for commercial mortgage and other loans by property type as of the periods presented.
(In millions)September 30, 2020December 31, 2019
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$2,146 19.5 %$1,800 18.7 %
Retail179 1.6 131 1.4 
Apartments/Multi-Family2,000 18.2 2,085 21.7 
Industrial145 1.3 256 2.7 
Hospitality1,093 10.0 1,036 10.8 
Other81 0.7 164 1.7 
Total transitional real estate loans5,644 51.3 5,472 57.0 
Commercial mortgage loans:
Office403 3.7 410 4.3 
Retail342 3.1 348 3.5 
Apartments/Multi-Family594 5.4 569 5.9 
Industrial393 3.6 383 4.0 
Total commercial mortgage loans1,732 15.8 1,710 17.7 
Middle market loans3,611 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 
(1) U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.
Allowance for Loan Losses by Portfolio Segment The following table presents the roll forward of the allowance for credit losses by portfolio segment during the nine-month period ended September 30, 2020.
(in millions)Transitional Real Estate LoansCommercial Mortgage LoansMiddle Market LoansHeld to Maturity SecuritiesAvailable for Sale SecuritiesReinsurance Recoverables
Balance at December 31, 2019 (1)
$(22)$(3)$(20)$0 $0 $0 
Transition impact to retained earnings(2)(8)(33)(10)0 (11)
(Addition to) release of allowance for credit losses(29)(17)(31)1 (75)0 
Write-offs, net of recoveries0 0 0 0 37 0 
Balance at September 30, 2020$(53)$(28)$(84)$(9)$(38)$(11)
(1) U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only.
Other Investments
The table below reflects the composition of the carrying value for other investments as of the periods presented.
(In millions)September 30, 2020December 31, 2019
Other investments:
Policy loans$261 $250 
Short-term investments (1)
823 628 
Limited partnerships795 569 
Other25 30 
Total other investments$1,904 $1,477 
(1) Includes securities lending collateral
Securities Lending Transactions Accounted for as Secured Borrowings
Details of collateral by loaned security type and remaining maturity of the agreements were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
September 30, 2020December 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 utilities61 0 61 35 0 35 
Sovereign and supranational2 0 2 2 0 2 
Banks/financial institutions85 0 85 48 0 48 
Other corporate813 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 
(1) The related loaned security, under the Company's U.S. securities lending program, can be returned to the Company at the transferee's discretion; therefore, they are classified as Overnight and Continuous.
Variable Interest Entity, Consolidated  
Investments in Variable Interest Entities
VIEs - Consolidated

The following table presents the cost or amortized cost, fair value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.
Investments in Consolidated Variable Interest Entities
September 30, 2020December 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 loans9,245 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 
(1) Net of allowance for credit losses
(2) Consists entirely of alternative investments in limited partnerships
(3) Consists entirely of derivatives
Variable Interest Entity, Not Consolidated  
Investments in Variable Interest Entities
VIEs - Not Consolidated
The table below reflects the amortized cost, fair value and balance sheet caption in which the Company's investment in VIEs not consolidated are reported.
Investments in Variable Interest Entities Not Consolidated
  
September 30, 2020December 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 maturity0 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 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
Transitional Real Estate Loans
(In millions)20202019201820172016PriorTotal
Loan-to-Value Ratio:
0%-59.99%$48 $529 $382 $158 $20 $57 $1,194 
60%-69.99%324 811 825 440 0 0 2,400 
70%-79.99%132 767 851 224 14 0 1,988 
80% or greater26 36 0 0 0 0 62 
Total$530 $2,143 $2,058 $822 $34 $57 $5,644 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20202019201820172016PriorTotalWeighted-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 greater0 0 0 0 26 0 26 1.66
Total48 659 171 69 785 0 1,732 2.39
Weighted Average DSCR1.982.532.232.562.320.002.39
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20202019201820172016PriorRevolving LoansTotal
Credit Ratings:
BBB$25 $117 $62 $56 $5 $0 $16 $281 
BB201 235 237 84 37 15 86 895 
B267 740 315 235 119 24 185 1,885 
CCC15 98 121 96 37 31 90 488 
CC and lower0 0 19 39 3 0 1 62 
Total$508 $1,190 $754 $510 $201 $70 $378 $3,611