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INVESTMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Schedule Of Net Investment Income
The components of net investment income for the years ended December 31 were as follows:
(In millions)202320222021
Fixed maturity securities$2,873 $2,926 $3,068 
Equity securities28 31 35 
Commercial mortgage and other loans1,002 716 570 
Other investments (1)
(70)131 356 
Short-term investments and cash equivalents213 78 7 
Gross investment income4,046 3,882 4,036 
Less investment expenses235 226 218 
Net investment income$3,811 $3,656 $3,818 
(1) The change in value of federal historic rehabilitation and solar investments in partnerships of $343, $91, and $138 in 2023, 2022, and 2021, respectively, is included as a reduction to net investment income. Tax credits on these investments of $334, $83, and $115 in 2023, 2022, and 2021, respectively, have been recorded as an income tax benefit in the consolidated statement of earnings.
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.
  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$23,067 $0 $1,040 $1,696 $22,411 
Municipalities968 0 115 58 1,025 
Mortgage- and asset-backed securities215 0 6 11 210 
Public utilities3,757 0 325 82 4,000 
Sovereign and supranational373 0 24 7 390 
Banks/financial institutions5,896 0 320 365 5,851 
Other corporate5,898 0 699 294 6,303 
Total yen-denominated40,174 0 2,529 2,513 40,190 
  U.S. dollar-denominated:
U.S. government and agencies191 0 2 4 189 
Municipalities1,246 0 65 38 1,273 
Mortgage- and asset-backed securities2,748 0 184 56 2,876 
Public utilities3,346 0 360 114 3,592 
Sovereign and supranational122 0 33 8 147 
Banks/financial institutions2,676 0 359 51 2,984 
Other corporate20,186 0 2,518 665 22,039 
Total U.S. dollar-denominated30,515 0 3,521 936 33,100 
Total securities available-for-sale$70,689 $0 $6,050 $3,449 $73,290 
 
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
  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$17,085 $2 $17,083 $1,746 $0 $18,829 
Municipalities266 0 266 41 0 307 
Public utilities34 0 34 4 0 38 
Sovereign and supranational421 3 418 44 0 462 
Other corporate18 0 18 3 0 21 
Total yen-denominated17,824 5 17,819 1,838 0 19,657 
Total securities held-to-maturity$17,824 $5 $17,819 $1,838 $0 $19,657 
  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
  
20232022
(In millions)Fair ValueFair Value
Equity securities, carried at fair value through net earnings:
Equity securities:
      Yen-denominated$751 $670 
      U.S. dollar-denominated252 374 
      Other currencies85 47 
Total equity securities$1,088 $1,091 
Investments Classified by Contractual Maturity Date
The contractual and economic maturities of the Company's investments in fixed maturity securities at December 31, 2023, were as follows:
(In millions)
Amortized
Cost (1)
Fair
Value
Available-for-sale:
Due in one year or less$1,422 $1,440 
Due after one year through five years6,690 7,358 
Due after five years through 10 years18,885 20,740 
Due after 10 years40,729 40,666 
Mortgage- and asset-backed securities2,963 3,086 
Total fixed maturity securities available-for-sale$70,689 $73,290 
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 years9,504 10,458 
Due after 10 years8,278 9,160 
Total fixed maturity securities held-to-maturity$17,819 $19,657 
(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:
20232022
(In millions)Credit
Rating		Amortized
Cost		Fair
Value		Credit
Rating		Amortized
Cost		Fair
Value
Japan National Government(1)
A+$39,151$40,222A+$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 for the years ended December 31 follows:
(In millions)202320222021
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available-for-sale:
Gross gains from sales$24 $93 $64 
Gross losses from sales(61)(78)(52)
Foreign currency gains (losses)204 442 1 
Other investments:
Gross gains (losses) from sales and redemptions33 10 0 
Total sales and redemptions200 467 13 
Equity securities88 (341)

164 
Credit losses:
Fixed maturity securities available-for-sale 0 0 38 
Fixed maturity securities held-to-maturity1 0 1 
Commercial mortgage and other loans(146)(18)6 
Impairment losses0 (25)(20)
Loan commitments9 9 4 
Reinsurance recoverables and other(3)(2)(2)
Total credit losses(139)(36)27 
Derivatives and other:
Derivative gains (losses)(531)(1,151)(805)
Foreign currency gains (losses)972 1,424 1,069 
Total derivatives and other441 273 264 
Total net investment gains (losses)$590 $363 $468 
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)202320222021
Changes in unrealized gains (losses):
Fixed maturity securities, available-for-sale$2,327 $(13,056)$(960)
Total change in unrealized gains (losses)$2,327 $(13,056)$(960)
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)20232022
Unrealized gains (losses) on securities available-for-sale$2,601 $272 
Deferred income taxes(1,462)(974)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities$1,139 $(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, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31.
 
  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$123 $4 $53 $1 $70 $3 
  Japan government and
      agencies:
  Yen-denominated8,393 1,696 1,657 303 6,736 1,393 
  Municipalities:
  U.S. dollar-denominated703 38 31 1 672 37 
  Yen-denominated301 58 34 0 267 58 
Mortgage- and asset-
    backed securities:
  U.S. dollar-denominated925 56 340 6 585 50 
  Yen-denominated58 11 0 0 58 11 
  Public utilities:
  U.S. dollar-denominated1,120 114 228 4 892 110 
  Yen-denominated1,028 82 444 13 584 69 
  Sovereign and supranational:
  U.S. dollar-denominated35 8 0 0 35 8 
  Yen-denominated60 7 0 0 60 7 
  Banks/financial institutions:
  U.S. dollar-denominated655 51 159 4 496 47 
  Yen-denominated3,673 365 186 4 3,487 361 
  Other corporate:
  U.S. dollar-denominated6,380 665 799 19 5,581 646 
  Yen-denominated 1,948 294 308 9 1,640 285 
  Total$25,402 $3,449 $4,239 $364 $21,163 $3,085 
  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 
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)20232022
Amortized Cost% of TotalAmortized Cost% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office$1,807 14.1 %$2,158 15.8 %
Retail473 3.7 493 3.6 
Apartments/Multi-Family2,608 20.4 2,701 19.7 
Industrial157 1.2 123 .9 
Hospitality814 6.4 803 5.9 
Other255 2.0 231 1.7 
Total transitional real estate loans6,114 47.8 6,509 47.6 
Commercial mortgage loans:
Office359 2.8 383 2.8 
Retail301 2.4 310 2.3 
Apartments/Multi-Family586 4.6 620 4.5 
Industrial463 3.6 471 3.4 
Total commercial mortgage loans1,709 13.4 1,784 13.0 
Middle market loans4,677 36.5 5,157 37.7 
Other loans301 2.3 %238 1.7 %
Total commercial mortgage and other loans$12,801 100.0 %$13,688 100.0 %
Allowance for credit losses(274)(192)
Total net commercial mortgage and other loans$12,527 $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 December 31.
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$5,481 $108 $525 $633 $6,114 $633 
Commercial mortgage loans1,676 33 0 33 1,709 0 
Middle market loans4,592 0 85 85 4,677 85 
Other loans301 0 0 0 301 0 
Total$12,050 $141 $610 $751 $12,801 $718 
(1) As of December 31, 2023, there were no loans that were 90 days or more past due that continued to accrue interest.
Financing Receivable, Allowance for Credit Loss
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 LoansOther Loans and Loan CommitmentsHeld-to-Maturity SecuritiesAvailable-for-Sale SecuritiesTotal
Balance at December 31, 2020
$(63)$(32)$(85)$(35)$(10)$(38)$(263)
(Addition to) release of allowance for credit losses(5)22 (11)4 1 26 37 
Write-offs, net of recoveries0 0 0 0 0 12 12 
Change in foreign exchange0 0 0 0 1 0 1 
Balance at December 31, 2021
(68)(10)(96)(31)(8)0 (213)
(Addition to) release of allowance for credit losses14 1 (39)7 0 0 (17)
Write-offs, net of recoveries0 0 6 0 0 0 6 
Change in foreign exchange0 0 0 0 1 0 1 
Balance at December 31, 2022
(54)(9)(129)(24)(7)0 (223)
(Addition to) release of allowance for credit losses (1)
(124)(7)(17)8 1 0 (139)
Write-offs, net of recoveries66 0 0 0 0 0 66 
Change in foreign exchange0 0 0 0 1 0 1 
Balance at December 31, 2023
$(112)$(16)$(146)$(16)$(5)$0 $(295)
(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.
Other Investments
The table below reflects the composition of the carrying value for other investments as of December 31.
(In millions)20232022
Other investments:
Policy loans$214 $214 
Short-term investments (1)
1,304 1,532 
Limited partnerships2,750 2,290 
Real estate owned227 0 
Other35 34 
Total other investments$4,530 $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 as of December 31 were as follows:
Securities Lending Transactions Accounted for as Secured Borrowings
Remaining Contractual Maturity of the Agreements
20232022
(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 $737 $737 $0 $1,087 $1,087 
Public utilities19 0 19 12 0 12 
Banks/financial institutions72 0 72 89 0 89 
Other corporate675 0 675 621 0 621 
          Total borrowings$766 $737 $1,503 $722 $1,087 $1,809 
Gross amount of recognized liabilities for securities
   lending transactions		$1,503 $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
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
  20232022
(In millions)
Amortized
Cost (1)
Fair
Value
Amortized
Cost (1)
Fair
Value
Assets:
Fixed maturity securities, available-for-sale$2,882 $3,712 $3,223 $3,805 
Commercial mortgage and other loans10,150 9,915 10,832 10,762 
Other investments (2)
2,381 2,381 1,909 1,909 
Other assets (3)
55 55 62 62 
Total assets of consolidated VIEs$15,468 $16,063 $16,026 $16,538 
Liabilities:
Other liabilities (3)
$507 $507 $390 $390 
Total liabilities of consolidated VIEs$507 $507 $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
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
20232022
(In millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Assets:
Fixed maturity securities, available-for-sale$5,904 $6,424 $3,998 $4,259 
Other investments (1)
369 369 381 381 
Total investments in VIEs not consolidated$6,273 $6,793 $4,379 $4,640 
(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, 2023 the amortized cost basis of TREs, CMLs, MMLs, and other loans by year of origination and credit quality indicator.
Transitional Real Estate Loans
(In millions)20232022202120202019PriorTotal
Loan-to-Value Ratio:
0%-59.99%$252 $603 $506 $36 $125 $2 $1,524 
60%-69.99%91 534 667 18 420 123 1,853 
70%-79.99%14 835 898 85 3 64 1,899 
80% or greater0 217 250 80 87 204 838 
Total$357 $2,189 $2,321 $219 $635 $393 $6,114 
Current-period gross writeoffs:$0 $0 $0 $4 $12 $50 $66 
Commercial mortgage loans  
Financing Receivable Credit Quality Indicators
Commercial Mortgage Loans
(In millions)20232022202120202019PriorTotalWeighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%$33 $0 $310 $45 $422 $599 $1,409 2.56
60%-69.99%0 0 0 0 17 29 46 1.76
70%-79.99%0 0 0 0 39 105 144 2.46
80% or greater0 0 0 0 90 20 110 1.85
Total$33 $0 $310 $45 $568 $753 $1,709 2.49
Weighted Average DSCR2.640.003.242.052.442.23
Current-period gross writeoffs:$0 $0 $0 $0 $0 $0 $0 
Middle market loans  
Financing Receivable Credit Quality Indicators
Middle Market Loans
(In millions)20232022202120202019PriorRevolving LoansTotal
Credit Ratings:
BBB$7 $45 $142 $68 $38 $45 $120 $465 
BB35 313 413 253 176 104 398 1,692 
B64 213 601 322 432 230 275 2,137 
CCC0 20 26 51 78 128 39 342 
CC0 0 0 0 0 10 0 10 
C and lower0 0 0 0 0 12 19 31 
Total$106 $591 $1,182 $694 $724 $529 $851 $4,677 
Current-period gross writeoffs:$0 $0 $0 $0 $0 $0 $0 $0 
Other loans  
Financing Receivable Credit Quality Indicators
Other Loans
(In millions)20232022202120202019PriorRevolving LoansTotal
Credit Ratings:
A$22 $115 $0 $0 $0 $0 $0 $137 
AA0 5 5 0 0 0 0 10 
BBB73 0 5 0 0 0 0 78 
BB0 76 0 0 0 0 0 76 
Total95 196 10 0 0 0 0 301 
Current-period gross writeoffs:0 0 0 0 0 0 0 0