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INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Schedule Of Net Investment Income
The components of net investment income for the years ended December 31 were as follows:
(In millions)202220212020
Fixed maturity securities$2,926 $3,068 $3,113 
Equity securities31 35 29 
Commercial mortgage and other loans716 570 545 
Other investments (1)
131 356 145 
Short-term investments and cash equivalents78 7 18 
Gross investment income3,882 4,036 3,850 
Less investment expenses226 218 212 
Net investment income$3,656 $3,818 $3,638 
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $91 in 2022 and $138 in 2021 is included as a reduction to net investment income. Tax credits on these investments of $83 in 2022 and $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.
  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$25,418 $0 $1,259 $1,724 $24,953 
Municipalities1,034 0 124 61 1,097 
Mortgage- and asset-backed securities241 0 8 12 237 
Public utilities3,932 0 301 108 4,125 
Sovereign and supranational659 0 24 5 678 
Banks/financial institutions6,348 0 324 531 6,141 
Other corporate6,288 0 555 408 6,435 
Total yen-denominated43,920 0 2,595 2,849 43,666 
  U.S. dollar-denominated:
U.S. government and agencies169 0 0 8 161 
Municipalities1,269 0 43 89 1,223 
Mortgage- and asset-backed securities1,926 0 67 84 1,909 
Public utilities3,481 0 240 180 3,541 
Sovereign and supranational133 0 35 12 156 
Banks/financial institutions2,992 0 271 105 3,158 
Other corporate21,579 0 1,549 1,201 21,927 
Total U.S. dollar-denominated31,549 0 2,205 1,679 32,075 
Total securities available for sale$75,469 $0 $4,800 $4,528 $75,741 

 
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
  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$18,269 $2 $18,267 $2,045 $0 $20,312 
Municipalities287 0 287 48 0 335 
Public utilities38 1 37 4 0 41 
Sovereign and supranational450 4 446 54 0 500 
Other corporate19 0 19 3 0 22 
Total yen-denominated19,063 7 19,056 2,154 0 21,210 
Total securities held to maturity$19,063 $7 $19,056 $2,154 $0 $21,210 
  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
  
20222021
(In millions)Fair ValueFair Value
Equity securities, carried at fair value through net earnings:
Equity securities:
      Yen-denominated$670 $744 
      U.S. dollar-denominated374 817 
      Other currencies47 42 
Total equity securities$1,091 $1,603 
Investments Classified by Contractual Maturity Date
The contractual and economic maturities of the Company's investments in fixed maturity securities at December 31, 2022, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available for sale:
Due in one year or less$1,777 $1,894 
Due after one year through five years6,806 7,080 
Due after five years through 10 years15,467 16,498 
Due after 10 years49,252 48,123 
Mortgage- and asset-backed securities2,167 2,146 
Total fixed maturity securities available for sale$75,469 $75,741 
Held to maturity:
Due in one year or less$0 $0 
Due after one year through five years40 42 
Due after five years through 10 years10,132 11,212 
Due after 10 years8,884 9,956 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held to maturity$19,056 $21,210 
(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:
20222021
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$42,618$44,178A+$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 for the years ended December 31 follows:
(In millions)202220212020
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available for sale:
Gross gains from sales$93 $64 $31 
Gross losses from sales(78)(52)(47)
Foreign currency gains (losses)442 1 (69)
Other investments:
Gross gains from sales10 0 0 
Total sales and redemptions467 13 (85)
Equity securities(341)164 

184 
Credit losses:
Fixed maturity securities available for sale 0 38 (38)
Fixed maturity securities held to maturity0 1 1 
Commercial mortgage and other loans(18)6 (93)
Impairment losses(25)(20)(49)
Loan commitments9 4 (21)
Reinsurance recoverables and other(2)(2)0 
Total credit losses(36)27 (200)
Derivatives and other:
Derivative gains (losses)(1,151)(805)399 
Foreign currency gains (losses)1,424 1,069 (568)
Total derivatives and other273 264 (169)
Total net investment gains (losses)$363 $468 $(270)
Unrealized Gain (Loss) on Investments
Information regarding changes in unrealized gains and losses from investments recorded in AOCI for the years ended December 31 follows:
(In millions)202220212020
Changes in unrealized gains (losses):
Fixed maturity securities, available for sale$(13,056)$(960)$2,399 
Total change in unrealized gains (losses)$(13,056)$(960)$2,399 
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)20222021
Unrealized gains (losses) on securities available for sale$272 $13,330 
Deferred income taxes(974)(3,728)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$(702)$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, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.
 
  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$159 $8 $85 $3 $74 $5 
  Japan government and
      agencies:
  Yen-denominated8,856 1,724 3,733 580 5,123 1,144 
  Municipalities:
  U.S. dollar-denominated854 89 735 57 119 32 
  Yen-denominated286 61 150 26 136 35 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated936 84 640 42 296 42 
  Yen-denominated62 12 38 6 24 6 
  Public utilities:
  U.S. dollar-denominated1,852 180 1,667 144 185 36 
  Yen-denominated880 108 576 61 304 47 
  Sovereign and supranational:
  U.S. dollar-denominated30 12 0 0 30 12 
  Yen-denominated71 5 34 4 37 1 
  Banks/financial institutions:
  U.S. dollar-denominated1,147 105 786 58 361 47 
  Yen-denominated3,957 531 1,760 174 2,197 357 
  Other corporate:
  U.S. dollar-denominated10,529 1,201 8,636 785 1,893 416 
  Yen-denominated 2,090 408 1,507 273 583 135 
  Total$31,709 $4,528 $20,347 $2,213 $11,362 $2,315 
  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 
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 December 31.
(In millions)20222021
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans
  Transitional real estate loans:
    Office$2,158 15.8 %$2,001 16.7 %
    Retail493 3.6 267 2.2 
    Apartments/Multi-Family2,701 19.7 1,893 15.8 
    Industrial123 .9 94 .8 
    Hospitality803 5.9 876 7.3 
    Other231 1.7 228 1.9 
        Total transitional real estate loans6,509 47.6 5,359 44.7 
Commercial mortgage loans:
     Office388 2.8 398 3.3 
     Retail310 2.3 332 2.8 
     Apartments/Multi-Family630 4.6 649 5.4 
     Industrial694 5.1 525 4.4 
        Total commercial mortgage loans2,022 14.8 1,904 15.9 
Middle market loans5,157 37.6 4,697 39.4 
        Total commercial mortgage and other loans$13,688 100.0 %$11,960 100.0 %
Allowance for credit losses(192)(174)
              Total net commercial mortgage and other loans$13,496 $11,786 
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)
(Addition to) release of allowance for credit
  losses		14 1 (39)0 0 2 
Write-offs, net of recoveries0 0 6 0 0 0 
Change in foreign exchange0 0 0 1 0 3 
Balance at December 31, 2022
$(54)$(9)$(129)$(7)$0 $(8)
(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)20222021
Other investments:
Policy loans$214 $236 
Short-term investments (1)
1,532 1,726 
Limited partnerships2,290 1,858 
Other34 22 
Total other investments$4,070 $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 as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
20222021
(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 $1,087 $1,087 $0 $920 $920 
Public utilities12 0 12 40 0 40 
Sovereign and supranational0 0 0 2 0 2 
Banks/financial institutions89 0 89 88 0 88 
Other corporate621 0 621 1,112 0 1,112 
          Total borrowings$722 $1,087 $1,809 $1,242 $920 $2,162 
Gross amount of recognized liabilities for securities
   lending transactions		$1,809 $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
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
  20222021
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available for sale$3,223 $3,805 $3,264 $4,490 
Commercial mortgage and other loans10,832 10,762 9,740 9,910 
Other investments (2)
1,909 1,909 1,535 1,535 
Other assets (3)
62 62 78 78 
Total assets of consolidated VIEs$16,026 $16,538 $14,617 $16,013 
Liabilities:
Other liabilities (3)
$390 $390 $414 $414 
Total liabilities of consolidated VIEs$390 $390 $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 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
20222021
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available for sale$3,998 $4,259 $4,779 $5,864 
Other investments (1)
381 381 323 323 
Total investments in VIEs not consolidated$4,379 $4,640 $5,102 $6,187 
(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, 2022 the amortized cost basis of TREs, CMLs and MMLs by year of origination and credit quality indicator.
Transitional Real Estate Loans
(In millions)20222021202020192018PriorTotal
Loan-to-Value Ratio:
0%-59.99%$532 $596 $36 $153 $61 $0 $1,378 
60%-69.99%679 769 138 485 425 50 2,546 
70%-79.99%787 940 97 389 146 1 2,360 
80% or greater64 161 0 0 0 0 225 
Total$2,062 $2,466 $271 $1,027 $632 $51 $6,509 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20222021202020192018PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$228 $310 $46 $510 $151 $492 $1,737 2.16
60%-69.99%0 15 0 46 0 135 196 2.03
70%-79.99%0 0 0 40 0 24 64 2.21
80% or greater0 0 0 0 0 25 25 1.41
Total$228 $325 $46 $596 $151 $676 $2,022 2.14
Weighted Average DSCR0.002.831.922.502.022.26
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20222021202020192018PriorRevolving LoansTotal
Credit Ratings:
BBB$63 $144 $70 $37 $19 $0 $133 $466 
BB333 451 300 203 80 44 362 1,773 
B252 678 411 483 240 218 311 2,593 
CCC0 15 20 85 59 78 53 310 
CC0 0 0 0 14 0 1 15 
C and lower0 0 0 0 0 0 0 0 
Total$648 $1,288 $801 $808 $412 $340 $860 $5,157