XML 46 R30.htm IDEA: XBRL DOCUMENT v3.22.0.1
INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2021
Schedule Of Net Investment Income
The components of net investment income for the years ended December 31 were as follows:
(In millions)202120202019
Fixed maturity securities$3,068 $3,113 $3,141 
Equity securities35 29 37 
Commercial mortgage and other loans570 545 468 
Other investments (1)
356 145 53 
Short-term investments and cash equivalents7 18 56 
Gross investment income4,036 3,850 3,755 
Less investment expenses218 212 177 
Net investment income$3,818 $3,638 $3,578 
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $138 in 2021 is included as a reduction to net investment income. Tax credits on these investments of $115 in 2021 have been recorded as an income tax benefit in the consolidated statement of earnings.
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 at December 31 are shown in the following tables.
  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$30,335 $0 $3,343 $61 $33,617 
Municipalities1,192 0 322 5 1,509 
Mortgage- and asset-backed securities300 0 19 1 318 
Public utilities4,462 0 906 2 5,366 
Sovereign and supranational760 0 82 0 842 
Banks/financial institutions6,963 0 787 72 7,678 
Other corporate7,148 0 1,535 26 8,657 
Total yen-denominated51,160 0 6,994 167 57,987 
  U.S. dollar-denominated:
U.S. government and agencies196 0 8 1 203 
Municipalities1,340 0 189 2 1,527 
Mortgage- and asset-backed securities897 0 33 2 928 
Public utilities3,781 0 909 5 4,685 
Sovereign and supranational222 0 57 6 273 
Banks/financial institutions3,169 0 747 3 3,913 
Other corporate24,604 0 4,629 53 29,180 
Total U.S. dollar-denominated34,209 0 6,572 72 40,709 
Total securities available for sale$85,369 $0 $13,566 $239 $98,696 
 
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
  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$21,089 $3 $21,086 $4,613 $0 $25,699 
Municipalities335 0 335 101 0 436 
Public utilities44 1 43 12 0 55 
Sovereign and supranational518 4 514 136 0 650 
Other corporate22 0 22 7 0 29 
Total yen-denominated22,008 8 22,000 4,869 0 26,869 
Total securities held to maturity$22,008 $8 22,000 $4,869 $0 $26,869 
  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
  
20212020
(In millions)Fair ValueFair Value
Equity securities, carried at fair value through net earnings:
Equity securities:
      Yen-denominated$744 $680 
      U.S. dollar-denominated817 603 
      Other currencies42 0 
Total equity securities$1,603 $1,283 
Investments Classified by Contractual Maturity Date
The contractual and economic maturities of the Company's investments in fixed maturity securities at December 31, 2021, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available for sale:
Due in one year or less$984 $1,015 
Due after one year through five years8,145 8,782 
Due after five years through 10 years13,288 15,491 
Due after 10 years61,755 72,163 
Mortgage- and asset-backed securities1,197 1,245 
Total fixed maturity securities available for sale$85,369 $98,696 
Held to maturity:
Due in one year or less$0 $0 
Due after one year through five years44 48 
Due after five years through 10 years10,121 11,772 
Due after 10 years11,835 15,049 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held to maturity$22,000 $26,869 
(1) Net of allowance for credit losses
Investment Exposures Exceeding 10 Percent Shareholders Equity
Investment exposures that individually exceeded 10% of shareholders' equity as of December 31 were as follows:
20212020
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$50,186$57,862A+$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 for the years ended December 31 follows:
(In millions)202120202019
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales$64 $31 $115 
Gross losses from sales(52)(47)(68)
Foreign currency gains (losses) on sales and redemptions1 (69)(16)
Total sales and redemptions13 (85)31 
Equity securities164 184 

101 
Loan loss reserves (1)
0 0 (18)
Credit losses:
Fixed maturity securities available for sale 38 (38)0 
Fixed maturity securities held to maturity1 1 0 
Commercial mortgage and other loans6 (93)0 
Impairment losses (2)
(20)(49)(13)
Loan commitments4 (21)0 
Reinsurance recoverables and other(2)0 0 
Total credit losses27 (200)(13)
Derivatives and other:
Derivative gains (losses)(805)399 (174)
Foreign currency gains (losses)1,069 (568)(62)
Total derivatives and other264 (169)(236)
Total net investment gains (losses)$468 $(270)$(135)
(1) U.S. GAAP guidance adopted as of January 1, 2020 has superseded these losses, included for comparative purposes only
(2) Includes OTTI losses in 2019
Unrealized Gain (Loss) on Investments
Information regarding changes in unrealized gains and losses from investments recorded in AOCI for the years ended December 31 follows:
(In millions)202120202019
Changes in unrealized gains (losses):
Fixed maturity securities, available for sale$(960)$2,399 $5,852 
Total change in unrealized gains (losses)$(960)$2,399 $5,852 
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 at December 31 was as follows:
(In millions)20212020
Unrealized gains (losses) on securities available for sale$13,330 $14,290 
Deferred income taxes(3,728)(3,929)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$9,602 $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, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.
 
  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:
  U.S. government and
      agencies:
  U.S. dollar-denominated$1 $1 $0 $1 $1 $0 
  Japan government and
      agencies:
  Yen-denominated2,868 61 445 3 2,423 58 
  Municipalities:
  U.S. dollar-denominated82 2 79 2 3 0 
  Yen-denominated187 5 53 0 134 5 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated278 2 278 2 0 0 
  Yen-denominated33 1 0 0 33 1 
  Public utilities:
  U.S. dollar-denominated130 5 70 2 60 3 
  Yen-denominated26 2 0 0 26 2 
  Sovereign and supranational:
  U.S. dollar-denominated37 6 6 1 31 5 
  Banks/financial institutions:
  U.S. dollar-denominated292 3 274 3 18 0 
  Yen-denominated2,074 72 1,011 16 1,063 56 
  Other corporate:
  U.S. dollar-denominated1,365 53 458 8 907 45 
  Yen-denominated 541 26 274 4 267 22 
  Total$7,914 $239 $2,948 $42 $4,966 $197 
  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 
Commercial Mortgage and Other Loans by Property Type
The table below reflects the composition of the carrying value for commercial mortgage and other loans by property type as of December 31.
(In millions)20212020
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans
  Transitional real estate loans:
    Office$2,001 16.7 $2,115 19.7 
    Retail267 2.2 125 1.2 
    Apartments/Multi-Family1,893 15.8 1,782 16.6 
    Industrial94 .8 85 .8 
    Hospitality876 7.3 1,106 10.3 
    Other228 1.9 81 .7 
        Total transitional real estate loans5,359 44.7 5,294 49.3 
Commercial mortgage loans:
     Office398 3.3 401 3.7 
     Retail332 2.8 340 3.2 
     Apartments/Multi-Family649 5.4 588 5.5 
     Industrial525 4.4 391 3.6 
        Total commercial mortgage loans1,904 15.9 1,720 16.0 
Middle market loans4,697 39.4 3,720 34.7 
        Total commercial mortgage and other loans$11,960 100.0 $10,734 100.0 
Allowance for credit losses(174)(180)
              Total net commercial mortgage and other loans$11,786 $10,554 
Financing Receivable, Allowance for Credit Loss The following table presents the roll forward of the allowance for credit losses by portfolio segment for the years ended December 31.
(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 $0 
Transition impact to retained earnings(2)(8)(33)(10)0 (11)
(Addition to) release of allowance for credit
  losses		(39)(21)(41)0 (75)(1)
Write-offs, net of recoveries0 0 9 0 37 0 
Balance at December 31, 2020(63)(32)(85)(10)(38)(12)
(Addition to) release of allowance for credit
  losses		(5)22 (11)1 26 (2)
Write-offs, net of recoveries0 0 0 0 12 0 
Change in foreign exchange0 0 0 1 0 1 
Balance at December 31, 2021$(68)$(10)$(96)$(8)$0 $(13)
(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 December 31.
(In millions)20212020
Other investments:
Policy loans$236 $260 
Short-term investments (1)
1,726 1,139 
Limited partnerships1,858 1,004 
Other22 26 
Total other investments$3,842 $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 as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
20212020
(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 $920 $920 $0 $0 $0 
Public utilities40 0 40 57 0 57 
Sovereign and supranational2 0 2 3 0 3 
Banks/financial institutions88 0 88 63 0 63 
Other corporate1,112 0 1,112 841 0 841 
          Total borrowings$1,242 $920 $2,162 $964 $0 $964 
Gross amount of recognized liabilities for securities
   lending transactions		$2,162 $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
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 as of December 31.
Investments in Consolidated Variable Interest Entities
  20212020
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available for sale$3,264 $4,490 $3,487 $4,596 
Commercial mortgage and other loans9,740 9,910 8,964 9,040 
Other investments (2)
1,535 1,535 826 826 
Other assets (3)
78 78 133 133 
Total assets of consolidated VIEs$14,617 $16,013 $13,410 $14,595 
Liabilities:
Other liabilities (3)
$414 $414 $231 $231 
Total liabilities of consolidated VIEs$414 $414 $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 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 as of December 31.
Investments in Variable Interest Entities Not Consolidated
20212020
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available for sale$4,779 $5,864 $5,477 $6,767 
Other investments (1)
323 323 178 178 
Total investments in VIEs not consolidated$5,102 $6,187 $5,655 $6,945 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
The following tables present as of December 31, 2021 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.
Transitional Real Estate Loans
(In millions)20212020201920182017PriorTotal
Loan-to-Value Ratio:
0%-59.99%$866 $36 $502 $85 $0 $0 $1,489 
60%-69.99%620 136 840 465 50 0 2,111 
70%-79.99%846 153 312 279 73 0 1,663 
80% or greater68 28 0 0 0 0 96 
Total$2,400 $353 $1,654 $829 $123 $0 $5,359 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20212020201920182017PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$306 $47 $522 $167 $68 $535 $1,645 2.53
60%-69.99%34 0 86 0 0 114 234 1.92
70%-79.99%0 0 0 0 0 25 25 1.65
80% or greater0 0 0 0 0 0 0 0.00
Total$340 $47 $608 $167 $68 $674 $1,904 2.45
Weighted Average DSCR2.831.932.462.292.752.30
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20212020201920182017PriorRevolving LoansTotal
Credit Ratings:
BBB$136 $67 $43 $24 $0 $0 $72 $342 
BB353 332 234 134 42 24 275 1,394 
B721 482 568 267 179 111 246 2,574 
CCC0 22 64 60 79 47 74 346 
CC0 0 0 14 26 0 1 41 
C and lower0 0 0 0 0 0 0 0 
Total$1,210 $903 $909 $499 $326 $182 $668 $4,697