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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021
(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$31,549 $0 $3,574 $62 $35,061 
Municipalities1,224 0 323 5 1,542 
Mortgage- and asset-backed securities310 0 21 1 330 
Public utilities4,584 0 930 2 5,512 
Sovereign and supranational781 0 81 0 862 
Banks/financial institutions7,149 0 834 66 7,917 
Other corporate7,377 0 1,575 22 8,930 
Total yen-denominated52,974 0 7,338 158 60,154 
  U.S. dollar-denominated:
U.S. government and agencies155 0 10 0 165 
Municipalities1,217 0 179 1 1,395 
Mortgage- and asset-backed securities932 0 30 0 962 
Public utilities3,887 0 920 4 4,803 
Sovereign and supranational225 0 59 4 280 
Banks/financial institutions3,081 0 745 1 3,825 
Other corporate24,757 0 4,448 67 29,138 
Total U.S. dollar-denominated34,254 0 6,391 77 40,568 
Total securities available for sale$87,228 $0 $13,729 $235 $100,722 
  
December 31, 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$32,959 $0 $4,182 $52 $37,089 
Municipalities1,324 0 374 5 1,693 
Mortgage- and asset-backed securities342 0 27 1 368 
Public utilities4,777 0 1,096 1 5,872 
Sovereign and supranational981 0 108 0 1,089 
Banks/financial institutions7,552 0 886 102 8,336 
Other corporate8,114 0 1,747 37 9,824 
Total yen-denominated56,049 0 8,420 198 64,271 
  U.S. dollar-denominated:
U.S. government and agencies245 0 16 0 261 
Municipalities1,154 0 173 2 1,325 
Mortgage- and asset-backed securities667 0 8 5 670 
Public utilities4,013 0 947 15 4,945 
Sovereign and supranational232 0 64 3 293 
Banks/financial institutions2,973 0 758 7 3,724 
Other corporate26,297 38 4,385 251 30,393 
Total U.S. dollar-denominated35,581 38 6,351 283 41,611 
Total securities available for sale$91,630 $38 $14,771 $481 $105,882 
Held-to-maturity Securities
  
September 30, 2021
(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$21,676 $3 $21,673 $4,868 $0 $26,541 
Municipalities346 0 346 107 0 453 
Public utilities45 1 44 13 0 57 
Sovereign and supranational533 5 528 139 0 667 
Other corporate22 0 22 8 0 30 
Total yen-denominated22,622 9 22,613 5,135 0 27,748 
Total securities held to maturity$22,622 $9 $22,613 $5,135 $0 $27,748 
  
December 31, 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$23,448 $3 $23,445 $5,625 $0 $29,070 
Municipalities377 0 377 122 0 499 
Public utilities48 1 47 14 0 61 
Sovereign and supranational577 6 571 165 0 736 
Other corporate24 0 24 9 0 33 
Total yen-denominated24,474 10 24,464 5,935 0 30,399 
Total securities held to maturity$24,474 $10 $24,464 $5,935 $0 $30,399 
Equity securities, FV-NI
(In millions)September 30, 2021December 31, 2020
Equity securities, carried at fair value through net earnings:Fair ValueFair Value
Equity securities:
      Yen-denominated$753 $680 
      U.S. dollar-denominated667 603 
Other currencies41 0 
Total equity securities$1,461 $1,283 
Investments Classified by Contractual Maturity Date The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2021, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available for sale:
Due in one year or less$914 $930 
Due after one year through five years8,302 8,909 
Due after five years through 10 years13,291 15,565 
Due after 10 years63,479 74,026 
Mortgage- and asset-backed securities1,242 1,292 
Total fixed maturity securities available for sale$87,228 $100,722 
Held to maturity:
Due in one year or less$0 $0 
Due after one year through five years45 49 
Due after five years through 10 years8,753 10,207 
Due after 10 years13,815 17,492 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held to maturity$22,613 $27,748 
(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, 2021December 31, 2020
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$51,953$60,106A+$55,153$64,657
(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)2021202020212020
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales$24 $7 $40 $28 
Gross losses from sales(36)0 (39)(46)
Foreign currency gains (losses) on sales and redemptions(2)(5)(21)(39)
Total sales and redemptions(14)2 (20)(57)
Equity securities(119)

12 (17)(106)
Credit losses:
Fixed maturity securities available for sale27 0 38 (75)
Fixed maturity securities held to maturity0 0 1 1 
Commercial mortgage and other loans(29)78 15 (86)
Impairment losses0 0 (20)0 
Loan commitments3 64 3 (17)
Reinsurance recoverables and other0 0 (2)(2)
Total credit losses1 142 35 (179)
Derivatives and other:
Derivative gains (losses)(174)138 (557)173 
Foreign currency gains (losses)135 (186)783 (356)
Total derivatives and other(39)(48)226 (183)
Total net investment gains (losses)$(171)$108 $224 $(525)
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, 2021December 31,
2020
Unrealized gains (losses) on securities available for sale$13,494 $14,290 
Deferred income taxes(3,763)(3,929)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$9,731 $10,361 
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 periods ended September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
  
September 30, 2021
  
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$2,980 $62 $342 $2 $2,638 $60 
  Municipalities:
  U.S. dollar-denominated56 1 56 1 0 0 
  Yen-denominated168 5 30 0 138 5 
Mortgage- and asset-
    backed securities:
  Yen-denominated34 1 0 0 34 1 
  Public utilities:
  U.S. dollar-denominated195 4 108 2 87 2 
      Yen-denominated242 2 182 1 60 1 
  Sovereign and supranational:
  U.S. dollar-denominated6 4 6 1 0 3 
  Banks/financial institutions:
  U.S. dollar-denominated152 1 146 1 6 0 
  Yen-denominated1,824 66 735 5 1,089 61 
  Other corporate:
  U.S. dollar-denominated1,731 67 898 17 833 50 
  Yen-denominated 558 22 106 1 452 21 
  Total$7,946 $235 $2,609 $31 $5,337 $204 
  
December 31, 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$2,604 $52 $2,604 $52 $0 $0 
  Municipalities:
  U.S. dollar-denominated94 2 94 2 0 0 
  Yen-denominated183 5 169 4 14 1 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated360 5 360 5 0 0 
  Yen-denominated37 1 37 1 0 0 
  Public utilities:
  U.S. dollar-denominated326 15 208 7 118 8 
  Yen-denominated135 1 135 1 0 0 
  Sovereign and supranational:
U.S. dollar-denominated39 3 39 3 0 0 
  Banks/financial institutions:
  U.S. dollar-denominated82 7 44 1 38 6 
  Yen-denominated1,809 102 765 36 1,044 66 
  Other corporate:
  U.S. dollar-denominated4,499 251 2,157 59 2,342 192 
  Yen-denominated613 37 290 13 323 24 
  Total $10,781 $481 $6,902 $184 $3,879 $297 
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, 2021December 31, 2020
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$1,944 16.8 %$2,115 19.7 %
Retail140 1.2 125 1.2 
Apartments/Multi-Family1,666 14.4 1,782 16.6 
Industrial46 0.4 85 .8 
Hospitality1,075 9.3 1,106 10.3 
Other340 3.0 81 .7 
Total transitional real estate loans5,211 45.1 5,294 49.3 
Commercial mortgage loans:
Office395 3.4 401 3.7 
Retail334 3.0 340 3.2 
Apartments/Multi-Family640 5.5 588 5.5 
Industrial478 4.1 391 3.6 
Other14 0.1 0 0.0 
Total commercial mortgage loans1,861 16.1 1,720 16.0 
Middle market loans4,481 38.8 3,720 34.7 
Total commercial mortgage and other loans$11,553 100.0 %$10,734 100.0 %
Allowance for credit losses(165)(180)
Total net commercial mortgage and other loans$11,388 $10,554 
Allowance for Loan Losses by Portfolio Segment
The following table presents the roll forward of the allowance for credit losses by portfolio segment.
(in millions)Transitional Real Estate LoansCommercial Mortgage LoansMiddle Market LoansHeld to Maturity SecuritiesAvailable for Sale SecuritiesReinsurance Recoverables
Three Months Ended September 30, 2021:
Balance at June 30, 2021$(41)$(22)$(76)$(8)$(26)$(13)
(Addition to) release of allowance for credit
   losses		(18)5 (13)(1)0 0 
Write-offs, net of recoveries0 0 0 0 26 0 
Balance at September 30, 2021$(59)$(17)$(89)$(9)$0 $(13)
Three Months Ended September 30, 2020:
Balance at June 30, 2020
$(66)$(42)$(134)$(9)$(38)$(11)
(Addition to) release of allowance for credit
   losses		13 14 59 0 (1)0 
Write-offs, net of recoveries0 0 (9)0 1 0 
Balance at September 30, 2020$(53)$(28)$(84)$(9)$(38)$(11)
Nine Months Ended September 30, 2021:
Balance at December 31, 2020$(63)$(32)$(85)$(10)$(38)$(12)
(Addition to) release of allowance for credit
   losses		4 15 (4)1 26 (1)
Write-offs, net of recoveries0 0 0 0 12 0 
Balance at September 30, 2021$(59)$(17)$(89)$(9)$0 $(13)
Nine Months Ended September 30, 2020:
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)
Other Investments
The table below reflects the composition of the carrying value for other investments as of the periods presented.
(In millions)September 30, 2021December 31, 2020
Other investments:
Policy loans$241 $260 
Short-term investments (1)
1,833 1,139 
Limited partnerships1,519 1,004 
Other19 26 
Total other investments$3,612 $2,429 
(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, 2021December 31, 2020
(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 $1,587 $1,587 $0 $0 $0 
Public utilities27 0 27 57 0 57 
Sovereign and supranational2 0 2 3 0 3 
Banks/financial institutions81 0 81 63 0 63 
Other corporate1,152 0 1,152 841 0 841 
          Total borrowings$1,262 $1,587 $2,849 $964 $0 $964 
Gross amount of recognized liabilities for securities
   lending transactions		$2,849 $964 
(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, 2021December 31, 2020
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available for sale$3,228 $4,437 $3,487 $4,596 
Commercial mortgage and other loans9,543 9,723 8,964 9,040 
Other investments (2)
1,272 1,272 826 826 
Other assets (3)
99 99 133 133 
Total assets of consolidated VIEs$14,142 $15,531 $13,410 $14,595 
Liabilities:
Other liabilities (3)
$356 $356 $231 $231 
Total liabilities of consolidated VIEs$356 $356 $231 $231 
(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, 2021December 31, 2020
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available for sale$4,990 $6,119 $5,477 $6,767 
Other investments (1)
247 247 178 178 
Total investments in VIEs not consolidated$5,237 $6,366 $5,655 $6,945 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
Transitional Real Estate Loans
(In millions)20212020201920182017Total
Loan-to-Value Ratio:
0%-59.99%$449 $55 $439 $353 $77 $1,373 
60%-69.99%417 136 831 543 182 2,109 
70%-79.99%569 184 443 323 182 1,701 
80% or greater0 28 0 0 0 28 
Total$1,435 $403 $1,713 $1,219 $441 $5,211 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20212020201920182017PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$174 $47 $559 $168 $68 $561 $1,577 2.51
60%-69.99%34 0 87 0 0 138 259 1.97
70%-79.99%0 0 0 0 0 25 25 1.67
Total208 47 646 168 68 724 1,861 2.42
Weighted Average DSCR2.491.942.552.322.782.30
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20212020201920182017PriorRevolving LoansTotal
Credit Ratings:
BBB$54 $78 $51 $39 $10 $3 $68 $303 
BB346 347 283 163 106 27 221 1,493 
B357 493 635 323 154 121 170 2,253 
CCC0 19 64 81 79 49 87 379 
CC0 0 0 14 26 0 5 45 
C and lower0 8 0 0 0 0 0 8 
Total$757 $945 $1,033 $620 $375 $200 $551 $4,481