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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2022
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, 2022
(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$23,342 $0 $1,558 $1,158 $23,742 
Municipalities947 0 164 40 1,071 
Mortgage- and asset-backed securities231 0 9 8 232 
Public utilities3,605 0 303 87 3,821 
Sovereign and supranational603 0 34 1 636 
Banks/financial institutions5,813 0 365 399 5,779 
Other corporate5,712 0 696 264 6,144 
Total yen-denominated40,253 0 3,129 1,957 41,425 
  U.S. dollar-denominated:
U.S. government and agencies176 0 0 8 168 
Municipalities1,252 0 58 105 1,205 
Mortgage- and asset-backed securities1,732 0 119 74 1,777 
Public utilities3,398 0 312 181 3,529 
Sovereign and supranational194 0 45 13 226 
Banks/financial institutions3,002 0 347 97 3,252 
Other corporate21,028 0 2,152 1,119 22,061 
Total U.S. dollar-denominated30,782 0 3,033 1,597 32,218 
Total securities available for sale$71,035 $0 $6,162 $3,554 $73,643 
  
December 31, 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 
Held-to-maturity Securities
  
September 30, 2022
(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$16,745 $3 $16,742 $2,483 $0 $19,225 
Municipalities264 0 264 57 0 321 
Public utilities34 0 34 7 0 41 
Sovereign and supranational412 3 409 68 0 477 
Other corporate17 0 17 4 0 21 
Total yen-denominated17,472 6 17,466 2,619 0 20,085 
Total securities held to maturity$17,472 $6 $17,466 $2,619 $0 $20,085 
  
December 31, 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 
Equity securities, FV-NI
(In millions)September 30,
2022		December 31, 2021
Equity securities, carried at fair value through net earnings:Fair ValueFair Value
Equity securities:
      Yen-denominated$592 $744 
      U.S. dollar-denominated427 817 
Other currencies45 42 
Total equity securities$1,064 $1,603 
Investments Classified by Contractual Maturity Date The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2022, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available for sale:
Due in one year or less$1,285 $1,455 
Due after one year through five years7,261 7,815 
Due after five years through 10 years13,081 14,297 
Due after 10 years47,445 48,067 
Mortgage- and asset-backed securities1,963 2,009 
Total fixed maturity securities available for sale$71,035 $73,643 
Held to maturity:
Due in one year or less$0 $0 
Due after one year through five years37 39 
Due after five years through 10 years9,285 10,498 
Due after 10 years8,144 9,548 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held to maturity$17,466 $20,085 
(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, 2022December 31, 2021
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$39,106$41,927A+$50,186$57,862
(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)2022202120222021
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales$8 $24 $93 $40 
Gross losses from sales(4)(36)(30)(39)
Foreign currency gains (losses)54 (2)187 (21)
Other investments:
Gross gains from sales1 0 10 0 
Total sales and redemptions59 (14)260 (20)
Equity securities(22)

(119)(313)(17)
Credit losses:
Fixed maturity securities available for sale0 27 0 38 
Fixed maturity securities held to maturity0 0 0 1 
Commercial mortgage and other loans(12)(29)(8)15 
Impairment losses(4)0 (21)(20)
Loan commitments5 3 7 3 
Reinsurance recoverables and other0 0 2 (2)
Total credit losses(11)1 (20)35 
Derivatives and other:
Derivative gains (losses)(491)(174)(1,515)(557)
Foreign currency gains (losses)664 135 2,473 783 
Total derivatives and other173 (39)958 226 
Total net investment gains (losses)$199 $(171)$885 $224 
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,
2022		December 31,
2021
Unrealized gains (losses) on securities available for sale$2,608 $13,330 
Deferred income taxes(1,477)(3,728)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$1,131 $9,602 
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, 2022 and December 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
  
September 30, 2022
  
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$51 $8 $0 $5 $51 $3 
  Japan government and
      agencies:
  Yen-denominated8,091 1,158 4,300 482 3,791 676 
  Municipalities:
  U.S. dollar-denominated708 105 675 95 33 10 
  Yen-denominated278 40 166 18 112 22 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated839 74 723 63 116 11 
  Yen-denominated69 8 46 4 23 4 
  Public utilities:
  U.S. dollar-denominated1,544 181 1,486 171 58 10 
      Yen-denominated1,041 87 929 79 112 8 
  Sovereign and supranational:
  U.S. dollar-denominated29 13 0 0 29 13 
  Yen-denominated68 1 34 1 34 0 
  Banks/financial institutions:
  U.S. dollar-denominated968 97 760 69 208 28 
  Yen-denominated3,485 399 2,625 281 860 118 
  Other corporate:
  U.S. dollar-denominated8,276 1,119 7,463 905 813 214 
  Yen-denominated 1,696 264 1,435 208 261 56 
  Total$27,143 $3,554 $20,642 $2,381 $6,501 $1,173 
  
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-denominated541 26 274 4 267 22 
  Total $7,914 $239 $2,948 $42 $4,966 $197 
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, 2022December 31, 2021
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$2,121 15.5 %$2,001 16.7 %
Retail485 3.6 267 2.2 
Apartments/Multi-Family2,730 20.0 1,893 15.8 
Industrial154 1.1 94 .8 
Hospitality835 6.1 876 7.3 
Other177 1.3 228 1.9 
Total transitional real estate loans6,502 47.6 5,359 44.7 
Commercial mortgage loans:
Office390 2.9 398 3.3 
Retail312 2.3 332 2.8 
Apartments/Multi-Family634 4.6 649 5.4 
Industrial691 5.1 525 4.4 
Total commercial mortgage loans2,027 14.9 1,904 15.9 
Middle market loans5,112 37.5 4,697 39.4 
Total commercial mortgage and other loans$13,641 100.0 %$11,960 100.0 %
Allowance for credit losses(182)(174)
Total net commercial mortgage and other loans$13,459 $11,786 
Allowance for Loan Losses by Portfolio Segment
The following table presents the roll forward of the allowance for credit losses by portfolio segment.
(In millions)Transitional Real Estate LoansCommercial Mortgage LoansMiddle Market LoansHeld to Maturity SecuritiesAvailable for Sale SecuritiesReinsurance Recoverables
Three Months Ended September 30, 2022:
Balance at June 30, 2022$(53)$(8)$(109)$(7)$0 $(8)
(Addition to) release of allowance for credit
   losses		(2)(2)(6)0 0 0 
Write-offs, net of recoveries0 0 (2)0 0 0 
Change in foreign exchange0 0 0 1 0 0 
Balance at September 30, 2022
$(55)$(10)$(117)$(6)$0 $(8)
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)
Nine Months Ended September 30, 2022:
Balance at December 31, 2021
$(68)$(10)$(96)$(8)$0 $(13)
(Addition to) release of allowance for credit
   losses		13 0 (24)0 0 2 
Write-offs, net of recoveries0 0 3 0 0 0 
Change in foreign exchange0 0 0 2 0 3 
Balance at September 30, 2022
$(55)$(10)$(117)$(6)$0 $(8)
Nine Months Ended September 30, 2021:
Balance at December 31, 2020$(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)
Other Investments
The table below reflects the composition of the carrying value for other investments as of the periods presented.
(In millions)September 30,
2022		December 31, 2021
Other investments:
Policy loans$195 $236 
Short-term investments (1)
1,816 1,726 
Limited partnerships2,145 1,858 
Other30 22 
Total other investments$4,186 $3,842 
(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, 2022December 31, 2021
(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 $1,874 $1,874 $0 $920 $920 
Public utilities23 0 23 40 0 40 
Sovereign and supranational0 0 0 2 0 2 
Banks/financial institutions96 0 96 88 0 88 
Other corporate727 0 727 1,112 0 1,112 
Equity securities1 0 1 0 0 0 
          Total borrowings$847 $1,874 $2,721 $1,242 $920 $2,162 
Gross amount of recognized liabilities for securities
   lending transactions		$2,721 $2,162 
(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, 2022December 31, 2021
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available for sale$2,908 $3,617 $3,264 $4,490 
Commercial mortgage and other loans10,775 10,716 9,740 9,910 
Other investments (2)
1,815 1,815 1,535 1,535 
Other assets (3)
65 65 78 78 
Total assets of consolidated VIEs$15,563 $16,213 $14,617 $16,013 
Liabilities:
Other liabilities (3)
$463 $463 $414 $414 
Total liabilities of consolidated VIEs$463 $463 $414 $414 
(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, 2022December 31, 2021
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available for sale$3,809 $4,131 $4,779 $5,864 
Other investments (1)
330 330 323 323 
Total investments in VIEs not consolidated$4,139 $4,461 $5,102 $6,187 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
Transitional Real Estate Loans
(In millions)20222021202020192018PriorTotal
Loan-to-Value Ratio:
0%-59.99%$534 $585 $137 $192 $102 $0 $1,550 
60%-69.99%580 796 56 504 437 50 2,423 
70%-79.99%780 928 107 380 159 1 2,355 
80% or greater15 159 0 0 0 0 174 
Total$1,909 $2,468 $300 $1,076 $698 $51 $6,502 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20222021202020192018PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$211 $322 $46 $513 $152 $542 $1,786 2.23
60%-69.99%0 15 0 46 0 115 176 2.08
70%-79.99%0 0 0 40 0 25 65 1.18
80% or greater0 0 0 0 0 0 0 0.00
Total$211 $337 $46 $599 $152 $682 $2,027 2.18
Weighted Average DSCR0.002.741.922.562.062.30
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20222021202020192018PriorRevolving LoansTotal
Credit Ratings:
BBB$30 $153 $85 $37 $19 $0 $114 $438 
BB258 456 327 210 80 46 309 1,686 
B283 716 396 497 243 220 350 2,705 
CCC0 0 21 71 70 56 50 268 
CC0 0 0 0 14 0 1 15 
C and lower0 0 0 0 0 0 0 0 
Total$571 $1,325 $829 $815 $426 $322 $824 $5,112