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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2023
Available-for-Sale Debt Securities
The amortized cost and allowance for credit losses for the Company's investments in fixed maturity securities and the fair values of these investments as well as the fair value of the Company's investments in equity securities are shown in the following tables.
  
September 30, 2023
(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$22,605 $0 $863 $1,695 $21,773 
Municipalities918 0 105 58 965 
Mortgage- and asset-backed securities206 0 6 11 201 
Public utilities3,652 0 292 89 3,855 
Sovereign and supranational355 0 19 6 368 
Banks/financial institutions5,561 0 301 403 5,459 
Other corporate5,835 0 587 374 6,048 
Total yen-denominated39,132 0 2,173 2,636 38,669 
  U.S. dollar-denominated:
U.S. government and agencies189 0 0 10 179 
Municipalities1,241 0 47 112 1,176 
Mortgage- and asset-backed securities2,641 0 228 74 2,795 
Public utilities3,342 0 291 238 3,395 
Sovereign and supranational121 0 31 9 143 
Banks/financial institutions2,696 0 285 99 2,882 
Other corporate19,799 0 2,006 1,243 20,562 
Total U.S. dollar-denominated30,029 0 2,888 1,785 31,132 
Total securities available-for-sale$69,161 $0 $5,061 $4,421 $69,801 
  
December 31, 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 
Held-to-maturity Securities
  
September 30, 2023
(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$16,202 $2 $16,200 $1,487 $0 $17,687 
Municipalities253 0 253 36 0 289 
Public utilities33 0 33 3 0 36 
Sovereign and supranational399 3 396 33 0 429 
Other corporate17 0 17 2 0 19 
Total yen-denominated16,904 5 16,899 1,561 0 18,460 
Total securities held-to-maturity$16,904 $5 $16,899 $1,561 $0 $18,460 
  
December 31, 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 
Equity securities, FV-NI
(In millions)September 30,
2023		December 31, 2022
Equity securities, carried at fair value through net earnings:Fair ValueFair Value
Equity securities:
      Yen-denominated$708 $670 
      U.S. dollar-denominated241 374 
Other currencies41 47 
Total equity securities$990 $1,091 
Investments Classified by Contractual Maturity Date The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2023, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available-for-sale:
Due in one year or less$1,835 $1,871 
Due after one year through five years6,385 6,920 
Due after five years through 10 years16,998 18,432 
Due after 10 years41,096 39,582 
Mortgage- and asset-backed securities2,847 2,996 
Total fixed maturity securities available-for-sale$69,161 $69,801 
Held-to-maturity:
Due in one year or less$0 $0 
Due after one year through five years35 37 
Due after five years through 10 years9,014 9,815 
Due after 10 years7,850 8,608 
Mortgage- and asset-backed securities0 0 
Total fixed maturity securities held-to-maturity$16,899 $18,460 
(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, 2023December 31, 2022
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$37,858$38,498A+$42,618$44,178
(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)2023202220232022
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available-for-sale:
Gross gains from sales$3 $8 $11 $93 
Gross losses from sales(13)(4)(22)(30)
Foreign currency gains (losses)51 54 136 187 
Other investments:
Gross gains (losses) from sales and redemptions36 1 33 10 
Commercial mortgage and other loans:
Gross gains (losses) from sales and redemptions(53)0 (53)0 
Total sales and redemptions24 59 105 260 
Equity securities47 

(22)35 (313)
Credit losses:
Fixed maturity securities held-to-maturity0 0 1 0 
Commercial mortgage and other loans(30)(12)(63)(8)
Impairment losses0 (4)0 (21)
Loan commitments1 5 5 7 
Reinsurance recoverables and other0 0 (3)2 
Total credit losses(29)(11)(60)(20)
Derivatives and other:
Derivative gains (losses)(53)(491)(630)(1,515)
Foreign currency gains (losses)434 664 1,651 2,473 
Total derivatives and other381 173 1,021 958 
Total net investment gains (losses)$423 $199 $1,101 $885 
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,
2023		December 31,
2022
Unrealized gains (losses) on securities available-for-sale$640 $272 
Deferred income taxes(1,043)(974)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$(403)$(702)
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, 2023 and December 31, 2022, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.
  
September 30, 2023
  
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$179 $10 $42 $1 $137 $9 
  Japan government and
      agencies:
  Yen-denominated7,997 1,695 656 24 7,341 1,671 
  Municipalities:
  U.S. dollar-denominated738 112 123 7 615 105 
  Yen-denominated283 58 32 0 251 58 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated1,094 74 804 61 290 13 
  Yen-denominated54 11 0 0 54 11 
  Public utilities:
  U.S. dollar-denominated1,754 238 944 96 810 142 
      Yen-denominated963 89 415 18 548 71 
  Sovereign and supranational:
  U.S. dollar-denominated33 9 0 0 33 9 
  Yen-denominated58 6 0 0 58 6 
  Banks/financial institutions:
  U.S. dollar-denominated1,043 99 460 16 583 83 
  Yen-denominated3,491 403 110 3 3,381 400 
  Other corporate:
  U.S. dollar-denominated8,831 1,243 2,994 166 5,837 1,077 
  Yen-denominated 2,017 374 524 27 1,493 347 
  Total$28,535 $4,421 $7,104 $419 $21,431 $4,002 
  
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-denominated2,090 408 1,507 273 583 135 
  Total $31,709 $4,528 $20,347 $2,213 $11,362 $2,315 
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, 2023December 31, 2022
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$1,912 14.6 %$2,158 15.8 %
Retail471 3.6 493 3.6 
Apartments/Multi-Family2,616 19.8 2,701 19.7 
Industrial442 3.4 123 .9 
Hospitality813 6.2 803 5.9 
Other296 2.3 231 1.7 
Total transitional real estate loans6,550 49.9 6,509 47.6 
Commercial mortgage loans:
Office375 2.9 388 2.8 
Retail304 2.3 310 2.3 
Apartments/Multi-Family604 4.6 630 4.6 
Industrial451 3.4 694 5.1 
Total commercial mortgage loans1,734 13.2 2,022 14.8 
Middle market loans4,849 36.9 5,157 37.6 
Total commercial mortgage and other loans$13,133 100.0 %$13,688 100.0 %
Allowance for credit losses(260)(192)
Total net commercial mortgage and other loans$12,873 $13,496 
Financing Receivable Nonaccrual
The following table presents an aging of past due and nonaccrual loans at amortized cost, before allowance for credit losses, as of the period presented.
September 30, 2023
(In millions)Current Less Than 90 Days Past Due
90 Days
or More
 Past Due(1)
Total Past DueTotal
Loans		Nonaccrual Status
Transitional real estate loans$6,005 $54 $491 $545 $6,550 $545 
Commercial mortgage loans1,734 0 0 0 1,734 0 
Middle market loans4,774 0 75 75 4,849 75 
Total$12,513 $54 $566 $620 $13,133 $620 
(1) As of September 30, 2023, there were no loans that were 90 days or more past due that continued to accrue interest
Allowance for Loan Losses by Portfolio Segment
The following table presents the roll forward of the allowance for credit losses by portfolio segment for loans and by accounting classification for securities.
(In millions)Transitional Real Estate LoansCommercial Mortgage LoansMiddle Market LoansHeld-to-Maturity SecuritiesAvailable-for-Sale SecuritiesReinsurance Recoverables
Three Months Ended September 30, 2023:
Balance at June 30, 2023
$(76)$(9)$(140)$(5)$0 $(10)
(Addition to) release of allowance for credit
   losses (1)
(35)(3)3 1 0 0 
Write-offs, net of recoveries0 0 0 0 0 0 
Change in foreign exchange0 0 0 (1)0 1 
Balance at September 30, 2023 (2)
$(111)$(12)$(137)$(5)$0 $(9)
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 (2)
$(55)$(10)$(117)$(6)$0 $(8)
Nine Months Ended September 30, 2023:
Balance at December 31, 2022
$(54)$(9)$(129)$(7)$0 $(8)
(Addition to) release of allowance for credit
   losses (1)
(57)(3)(8)1 0 (2)
Write-offs, net of recoveries0 0 0 0 0 0 
Change in foreign exchange0 0 0 1 0 1 
Balance at September 30, 2023 (2)
$(111)$(12)$(137)$(5)$0 $(9)
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 (2)
$(55)$(10)$(117)$(6)$0 $(8)
(1) Includes an allowance for credit losses of $4 recognized on financial assets accounted for as purchased financial assets with credit deterioration that is not recorded in earnings upon recognition.
(2) Excludes allowance on firm loan commitments of $19 and $26 as of September 30, 2023 and 2022, respectively.
Other Investments
The table below reflects the composition of the carrying value for other investments as of the periods presented.
(In millions)September 30,
2023		December 31, 2022
Other investments:
Policy loans$201 $214 
Short-term investments (1)
2,288 1,532 
Limited partnerships2,629 2,290 
Real estate owned89 0 
Other34 34 
Total other investments$5,241 $4,070 
(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, 2023December 31, 2022
(In millions)
Overnight
and
Continuous(1)
Up to 30
days		30-90 daysTotal
Overnight
and
Continuous(1)
Up to 30
days		Total
Securities lending
  transactions:
Fixed maturity securities:
Japan government and
  agencies		$0 $3,684 $251 $3,935 $0 $1,087 $1,087 
Public utilities17 0 0 17 12 0 12 
Banks/financial institutions78 0 0 78 89 0 89 
Other corporate577 0 0 577 621 0 621 
          Total borrowings$672 $3,684 $251 $4,607 $722 $1,087 $1,809 
Gross amount of recognized liabilities for securities
   lending transactions		$4,607 $1,809 
(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, 2023December 31, 2022
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available-for-sale$2,731 $3,432 $3,223 $3,805 
Commercial mortgage and other loans10,425 10,097 10,832 10,762 
Other investments (2)
2,278 2,278 1,909 1,909 
Other assets (3)
59 59 62 62 
Total assets of consolidated VIEs$15,493 $15,866 $16,026 $16,538 
Liabilities:
Other liabilities (3)
$442 $442 $390 $390 
Total liabilities of consolidated VIEs$442 $442 $390 $390 
(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, 2023December 31, 2022
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available-for-sale$5,741 $6,196 $3,998 $4,259 
Other investments (1)
351 351 381 381 
Total investments in VIEs not consolidated$6,092 $6,547 $4,379 $4,640 
(1) Consists entirely of alternative investments in limited partnerships
Transitional real estate loans  
Financing Receivable Credit Quality Indicators
Transitional Real Estate Loans
(In millions)20232022202120202019PriorTotal
Loan-to-Value Ratio:
0%-59.99%$114 $805 $554 $36 $124 $10 $1,643 
60%-69.99%43 561 673 52 469 125 1,923 
70%-79.99%0 809 956 139 249 65 2,218 
80% or greater0 215 214 46 96 195 766 
Total$157 $2,390 $2,397 $273 $938 $395 $6,550 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20232022202120202019PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$19 $0 $311 $45 $459 $596 $1,430 2.57
60%-69.99%0 0 0 0 17 87 104 1.82
70%-79.99%0 0 0 0 80 44 124 1.49
80% or greater0 0 0 0 28 48 76 2.20
Total$19 $0 $311 $45 $584 $775 $1,734 2.43
Weighted Average DSCR2.080.003.182.052.442.14
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20232022202120202019PriorRevolving LoansTotal
Credit Ratings:
BBB$7 $57 $128 $68 $37 $27 $146 $470 
BB31 321 466 297 170 111 388 1,784 
B15 216 615 362 420 291 285 2,204 
CCC0 5 21 39 110 134 56 365 
CC0 0 0 0 7 10 0 17 
C and lower0 0 0 0 0 6 3 9 
Total$53 $599 $1,230 $766 $744 $579 $878 $4,849