INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross 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	$	22,304	$	0	$	758	$	2,322	$	20,740
Municipalities	963		0		85		77		971
Mortgage- and asset-backed securities	384		0		5		22		367
Public utilities	3,043		0		232		116		3,159
Sovereign and supranational	368		0		23		8		383
Banks/financial institutions	5,929		0		309		332		5,906
Other corporate	5,898		0		628		300		6,226
Total yen-denominated	38,889		0		2,040		3,177		37,752
U.S. dollar-denominated:
U.S. government and agencies	199		0		3		1		201
Municipalities	1,218		0		73		32		1,259
Mortgage- and asset-backed securities	3,211		0		199		47		3,363
Public utilities	3,982		0		431		98		4,315
Sovereign and supranational	79		0		32		0		111
Banks/financial institutions	3,462		0		415		23		3,854
Other corporate	19,352		0		2,554		497		21,409
Total U.S. dollar-denominated	31,503		0		3,707		698		34,512
Other currencies:
Other corporate	27		0		1		0		28
Total other currencies	27		0		1		0		28
Total securities available-for-sale	$	70,419	$	0	$	5,748	$	3,875	$	72,292

	December 31, 2023
(In millions)	Amortized Cost		Allowance for Credit Losses		Gross 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
Municipalities	968		0		115		58		1,025
Mortgage- and asset-backed securities	215		0		6		11		210
Public utilities	3,757		0		325		82		4,000
Sovereign and supranational	373		0		24		7		390
Banks/financial institutions	5,896		0		320		365		5,851
Other corporate	5,898		0		699		294		6,303
Total yen-denominated	40,174		0		2,529		2,513		40,190
U.S. dollar-denominated:
U.S. government and agencies	191		0		2		4		189
Municipalities	1,246		0		65		38		1,273
Mortgage- and asset-backed securities	2,748		0		184		56		2,876
Public utilities	3,346		0		360		114		3,592
Sovereign and supranational	122		0		33		8		147
Banks/financial institutions	2,676		0		359		51		2,984
Other corporate	20,186		0		2,518		665		22,039
Total U.S. dollar-denominated	30,515		0		3,521		936		33,100
Total securities available-for-sale	$	70,689	$	0	$	6,050	$	3,449	$	73,290

Held-to-maturity Securities

	September 30, 2024
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses		Fair   Value
Securities held-to-maturity, carried at   amortized cost:
Fixed maturity securities:
Yen-denominated:
Japan government and agencies	$	16,970	$	2	$	16,968	$	1,200	$	0	$	18,168
Municipalities	262		0		262		31		0		293
Public utilities	35		0		35		2		0		37
Sovereign and supranational	418		3		415		42		0		457
Other corporate	18		0		18		2		0		20
Total yen-denominated	17,703		5		17,698		1,277		0		18,975
Total securities held-to-maturity	$	17,703	$	5	$	17,698	$	1,277	$	0	$	18,975

	December 31, 2023
(In millions)	Amortized Cost		Allowance for Credit Losses		Net Carrying Amount		Gross 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
Municipalities	266		0		266		41		0		307
Public utilities	34		0		34		4		0		38
Sovereign and supranational	421		3		418		44		0		462
Other corporate	18		0		18		3		0		21
Total yen-denominated	17,824		5		17,819		1,838		0		19,657
Total securities held-to-maturity	$	17,824	$	5	$	17,819	$	1,838	$	0	$	19,657

Equity securities, FV-NI

	September 30, 2024			December 31, 2023
(In millions)	Fair Value			Fair Value
Equity securities, carried at fair value through net earnings:
Equity securities:
Yen-denominated		$	515		$	751
U.S. dollar-denominated		293			252
Other currencies		0			85
Total equity securities		$	808		$	1,088

Investments Classified by Contractual Maturity Date

The contractual and economic maturities of the Company's investments in fixed maturity securities at September 30, 2024, were as follows:

(In millions)	Amortized Cost (1)			Fair Value
Available-for-sale:
Due in one year or less		$	1,240		$	1,329
Due after one year through five years		7,793			8,611
Due after five years through 10 years		19,539			21,081
Due after 10 years		38,252			37,541
Mortgage- and asset-backed securities		3,595			3,730
Total fixed maturity securities available-for-sale		$	70,419		$	72,292
Held-to-maturity:
Due in one year or less		$	0		$	0
Due after one year through five years		37			38
Due after five years through 10 years		9,440			10,201
Due after 10 years		8,221			8,736
Total fixed maturity securities held-to-maturity		$	17,698		$	18,975

(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, 2024			December 31, 2023
(In millions)	Credit Rating	Amortized Cost	Fair Value	Credit Rating	Amortized Cost	Fair Value
Japan National Government(1)	A+	$38,280	$37,942	A+	$39,151	$40,222

(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)	2024		2023		2024		2023
Net investment gains (losses):
Sales and redemptions:
Fixed maturity securities available-for-sale:
Gross gains from sales	$	1	$	3	$	41	$	11
Gross losses from sales	(66)		(13)		(375)		(22)
Foreign currency gains (losses)	173		51		660		136
Other investments:
Gross gains (losses) from sales and redemptions	(3)		36		7		33
Total sales and redemptions	105		77		333		158
Equity securities	13		47		100		35
Credit losses:
Fixed maturity securities held-to-maturity	0		0		0		1
Commercial mortgage and other loans	(85)		(83)		(113)		(116)
Impairment losses	(55)		0		(55)		0
Loan commitments	(1)		1		2		5
Reinsurance recoverables and other	0		0		5		(3)
Total credit losses	(141)		(82)		(161)		(113)
Derivatives and other:
Derivative gains (losses)	436		(53)		(54)		(630)
Foreign currency gains (losses)	(1,821)		434		21		1,651
Total derivatives and other	(1,385)		381		(33)		1,021
Total net investment gains (losses)	$	(1,408)	$	423	$	239	$	1,101

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, 2024			December 31, 2023
Unrealized gains (losses) on securities available-for-sale		$	1,873		$	2,601
Deferred income taxes		(1,316)			(1,462)
Shareholders’ equity, unrealized gains (losses) on fixed maturity securities		$	557		$	1,139

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, 2024 and December 31, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	September 30, 2024
	Total						Less than 12 months						12 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		$	76		$	1		$	27		$	0		$	49		$	1
Japan government and       agencies:
Yen-denominated		8,088			2,322			874			230			7,214			2,092
Municipalities:
U.S. dollar-denominated		636			32			8			0			628			32
Yen-denominated		289			77			10			0			279			77
Mortgage- and asset-     backed securities:
U.S. dollar-denominated		999			47			580			20			419			27
Yen-denominated		208			22			0			0			208			22
Public utilities:
U.S. dollar-denominated		1,256			98			369			9			887			89
Yen-denominated		910			116			304			32			606			84
Sovereign and supranational:
Yen-denominated		56			8			0			0			56			8
Banks/financial institutions:
U.S. dollar-denominated		716			23			419			3			297			20
Yen-denominated		3,484			332			431			10			3,053			322
Other corporate:
U.S. dollar-denominated		6,079			497			1,579			31			4,500			466
Yen-denominated		1,807			300			213			7			1,594			293
Total		$	24,604		$	3,875		$	4,814		$	342		$	19,790		$	3,533

	December 31, 2023
	Total						Less than 12 months						12 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-denominated		8,393			1,696			1,657			303			6,736			1,393
Municipalities:
U.S. dollar-denominated		703			38			31			1			672			37
Yen-denominated		301			58			34			0			267			58
Mortgage- and asset-     backed securities:
U.S. dollar-denominated		925			56			340			6			585			50
Yen-denominated		58			11			0			0			58			11
Public utilities:
U.S. dollar-denominated		1,120			114			228			4			892			110
Yen-denominated		1,028			82			444			13			584			69
Sovereign and supranational:
U.S. dollar-denominated		35			8			0			0			35			8
Yen-denominated		60			7			0			0			60			7
Banks/financial institutions:
U.S. dollar-denominated		655			51			159			4			496			47
Yen-denominated		3,673			365			186			4			3,487			361
Other corporate:
U.S. dollar-denominated		6,380			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

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, 2024				December 31, 2023
	Amortized Cost		% of Total		Amortized Cost		% of Total
Commercial Mortgage and other loans:
Transitional real estate loans:
Office	$	1,513	12.8	%	$	1,807	14.1	%
Retail	350		3.0		473		3.7
Apartments/Multi-Family	2,334		19.7		2,608		20.4
Industrial	116		1.0		157		1.2
Hospitality	663		5.6		814		6.4
Other	424		3.6		255		2.0
Total transitional real estate loans	5,400		45.7		6,114		47.8
Commercial mortgage loans:
Office	330		2.8		359		2.8
Retail	216		1.8		301		2.4
Apartments/Multi-Family	576		4.9		586		4.6
Industrial	438		3.7		463		3.6
Other	15		.1		0		0.0
Total commercial mortgage loans	1,575		13.3		1,709		13.4
Middle market loans	4,511		38.1		4,677		36.5
Other loans	342		2.9		301		2.3
Total commercial mortgage and other loans	$	11,828	100.0	%	$	12,801	100.0	%
Allowance for credit losses	(284)				(274)
Total net commercial mortgage and other loans	$	11,544			$	12,527

Financing Receivable Nonaccrual

The following tables present an aging of past due and nonaccrual loans at amortized cost, before allowance for credit losses, as of the periods presented.

	September 30, 2024
(In millions)	Current		Less Than 90 Days Past Due		90 Days or More  Past Due(1)		Total Past Due		Total Loans		Nonaccrual Status
Transitional real estate loans	$	4,843	$	32	$	525	$	557	$	5,400	$	525
Commercial mortgage loans	1,575		0		0		0		1,575		0
Middle market loans	4,403		46		62		108		4,511		67
Other loans	342		0		0		0		342		0
Total	$	11,163	$	78	$	587	$	665	$	11,828	$	592

(1) As of September 30, 2024, there were $18 of loans that were 90 days or more past due that continued to accrue interest.

	December 31, 2023
(In millions)	Current		Less Than 90 Days Past Due		90 Days or More  Past Due(1)		Total Past Due		Total Loans		Nonaccrual Status
Transitional real estate loans	$	5,481	$	108	$	525	$	633	$	6,114	$	633
Commercial mortgage loans	1,676		33		0		33		1,709		0
Middle market loans	4,592		0		85		85		4,677		85
Other loans	301		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.

Effect of Loan Modifications

The following tables present the amortized cost basis of modified loans to borrowers experiencing financial difficulty and the financial effect of the modifications, disaggregated by loan classification and type of modification.

Three Months Ended September 30, 2024
(In millions)	Amortized Cost (1)		% of Total		Financial Effect
Transitional Real Estate Loans:
Other-than-insignificant payment   delays	$	123	2.3	%	Delay in payments of 24 months on average

(1) Net of allowance for credit losses

Nine Months Ended September 30, 2024
(In millions)	Amortized Cost (1)		% of Total		Financial Effect
Transitional Real Estate Loans:
Other-than-insignificant payment   delays	$	198	3.8	%	Delay in payments of 29 months on average
Other-than-insignificant payment   delays and interest rate   reduction	216		4.1		Delay in payments of 47 months on average, and reduction in the weighted-average contractual interest rate from 7.9% to 6.6%

(1) Net of allowance for credit losses

Loan Performance After Modifications

The following table presents an aging of loans that received modifications in the 12 months preceding the period presented, at amortized cost.

	September 30, 2024
(In millions)	Current		Less Than 90 Days Past Due		90 Days or More  Past Due
Transitional real estate loans	$	414	$	0	$	0

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 Loans		Commercial Mortgage Loans		Middle Market Loans		Other Loans and Loan Commitments		Held-to- Maturity Securities		Available- for-Sale Securities		Total
Three Months Ended   September 30, 2024:
Balance at June 30, 2024	$	(123)	$	(17)	$	(98)	$	(13)	$	(5)	$	0	$	(256)
(Addition to) release of allowance   for credit losses	(67)		(16)		(5)		(1)		0		0		(89)
Writeoffs, net of recoveries	39		3		0		0		0		0		42
Change in foreign exchange	0		0		0		0		0		0		0
Balance at September 30, 2024	$	(151)	$	(30)	$	(103)	$	(14)	$	(5)	$	0	$	(303)
Three Months Ended   September 30, 2023:
Balance at June 30, 2023	$	(76)	$	(9)	$	(140)	$	(20)	$	(5)	$	0	$	(250)
(Addition to) release of allowance for credit losses (1)	(35)		(3)		3		1		1		0		(33)
Writeoffs, net of recoveries	0		0		0		0		0		0		0
Change in foreign exchange	0		0		0		0		(1)		0		(1)
Balance at September 30, 2023	$	(111)	$	(12)	$	(137)	$	(19)	$	(5)	$	0	$	(284)
Nine Months Ended   September 30, 2024:
Balance at December 31, 2023	$	(112)	$	(16)	$	(146)	$	(16)	$	(5)	$	0	$	(295)
(Addition to) release of allowance for credit losses	(93)		(17)		(7)		2		0		0		(115)
Writeoffs, net of recoveries	54		3		50		0		0		0		107
Change in foreign exchange	0		0		0		0		0		0		0
Balance at September 30, 2024	$	(151)	$	(30)	$	(103)	$	(14)	$	(5)	$	0	$	(303)
Nine Months Ended   September 30, 2023:
Balance at December 31, 2022	$	(54)	$	(9)	$	(129)	$	(24)	$	(7)	$	0	$	(223)
(Addition to) release of allowance for credit losses (1)	(57)		(3)		(8)		5		1		0		(62)
Writeoffs, net of recoveries	0		0		0		0		0		0		0
Change in foreign exchange	0		0		0		0		1		0		1
Balance at September 30, 2023	$	(111)	$	(12)	$	(137)	$	(19)	$	(5)	$	0	$	(284)

(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 the periods presented.

(In millions)	September 30, 2024			December 31, 2023
Other investments:
Policy loans		$	221		$	214
Short-term investments (1)		3,533			1,304
Limited partnerships (2)		3,206			2,750
Real estate owned		645			227
Other		42			35
Total other investments		$	7,647		$	4,530

(1) Includes securities lending collateral

(2) Includes tax credit investments and asset classes such as private equity and real estate funds

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, 2024						December 31, 2023
(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	$	3,179	$	3,179	$	0	$	737	$	737
Public utilities	52		0		52		19		0		19
Banks/financial institutions	133		0		133		72		0		72
Other corporate	869		0		869		675		0		675
Total borrowings	$	1,054	$	3,179	$	4,233	$	766	$	737	$	1,503
Gross amount of recognized liabilities for securities    lending transactions					$	4,233					$	1,503

(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 carrying value and balance sheet caption in which the assets and liabilities of consolidated VIEs are reported.

Investments in Consolidated Variable Interest Entities

(In millions)	September 30, 2024			December 31, 2023
Assets:
Fixed maturity securities, available-for-sale		$	4,031		$	3,712
Commercial mortgage and other loans		9,261			10,150
Other investments (1)		2,704			2,381
Other assets (2)		52			55
Total assets of consolidated VIEs		$	16,048		$	16,298
Liabilities:
Other liabilities (2)		$	623		$	507
Total liabilities of consolidated VIEs		$	623		$	507

(1) Consists entirely of alternative investments in limited partnerships

(2) Consists entirely of derivatives

Variable Interest Entity, Not Consolidated

Investments in Variable Interest Entities

The table below reflects the carrying value and balance sheet caption in which the Company's investments in VIEs that are not consolidated are reported.

Investments in Variable Interest Entities Not Consolidated

(In millions)	September 30, 2024			December 31, 2023
Assets:
Fixed maturity securities, available-for-sale		$	6,683		$	6,424
Other investments (1)		502			369
Total investments in VIEs not consolidated		$	7,185		$	6,793

(1) Consists entirely of alternative investments in limited partnerships

Transitional real estate loans

Financing Receivable Credit Quality Indicators

Transitional Real Estate Loans
(In millions)	2024		2023		2022		2021		2020		Prior		Total
Loan-to-Value Ratio:
0%-59.99%	$	0	$	0	$	617	$	587	$	36	$	19	$	1,259
60%-69.99%	0		115		396		573		18		559		1,661
70%-79.99%	0		14		814		712		82		55		1,677
80% or greater	0		0		220		236		80		267		803
Total	$	0	$	129	$	2,047	$	2,108	$	216	$	900	$	5,400
Current-period gross   writeoffs:	$	0	$	0	$	0	$	5	$	0	$	49	$	54

Commercial mortgage loans

Financing Receivable Credit Quality Indicators

Commercial Mortgage Loans
(In millions)	2024		2023		2022		2021		2020		Prior		Total		Weighted-Average DSCR
Loan-to-Value Ratio:
0%-59.99%	$	0	$	33	$	0	$	268	$	58	$	935	$	1,294	2.78
60%-69.99%	0		0		0		25		0		46		71		2.11
70%-79.99%	13		0		0		0		0		88		101		1.25
80% or greater	0		0		0		0		0		109		109		0.65
Total	$	13	$	33	$	0	$	293	$	58	$	1,178	$	1,575	2.50
Weighted Average DSCR	1.21		2.62		0.00		3.15		2.59		2.35
Current-period gross   writeoffs:	$	0	$	0	$	0	$	0	$	0	$	3	$	3

Middle market loans

Financing Receivable Credit Quality Indicators

Middle Market Loans
(In millions)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Credit Ratings:
BBB	$	10	$	27	$	39	$	80	$	93	$	80	$	16	$	345
BB	206		55		396		421		276		409		72		1,835
B	156		49		253		557		249		598		49		1,911
CCC	0		0		22		78		88		113		17		318
CC	4		0		0		0		0		23		1		28
C and lower	0		0		0		6		0		68		0		74
Total	$	376	$	131	$	710	$	1,142	$	706	$	1,291	$	155	$	4,511
Current-period gross   writeoffs:	$	0	$	0	$	0	$	27	$	0	$	23	$	0	$	50

Other loans

Financing Receivable Credit Quality Indicators

Other Loans
(In millions)	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Credit Ratings:
A	$	0	$	21	$	86	$	0	$	0	$	0	$	0	$	107
AA	0		0		8		3		0		0		0		11
BBB	78		73		0		0		0		0		0		151
BB	0		0		73		0		0		0		0		73
Total	$	78	$	94	$	167	$	3	$	0	$	0	$	0	$	342
Current-period gross   writeoffs:	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0