XML 39 R28.htm IDEA: XBRL DOCUMENT

Investments (Tables)

6 Months Ended

Jun. 30, 2023

Financing Receivable, Credit Quality Indicator [Line Items]

Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value



	As of June 30, 2023
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	88,334	$	874	$	9,888	$	13	$	79,307
U.S. government bonds		396		5		30		-		371
State and municipal bonds		5,268		218		412		-		5,074
Foreign government bonds		312		15		46		-		281
RMBS		2,205		22		206		6		2,015
CMBS		1,915		1		232		-		1,684
ABS		12,562		40		804		5		11,793
Hybrid and redeemable preferred securities		362		26		22		1		365
Total fixed maturity AFS securities	$	111,354	$	1,201	$	11,640	$	25	$	100,890



	As of December 31, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	89,249	$	787	$	11,004	$	9	$	79,023
U.S. government bonds		405		5		31		-		379
State and municipal bonds		5,410		172		512		-		5,070
Foreign government bonds		348		17		47		-		318
RMBS		2,216		22		222		7		2,009
CMBS		1,917		3		246		-		1,674
ABS		11,797		38		926		5		10,904
Hybrid and redeemable preferred securities		365		25		30		1		359
Total fixed maturity AFS securities	$	111,707	$	1,069	$	13,018	$	22	$	99,736

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,546	$	3,502
Due after one year through five years		18,491		17,580
Due after five years through ten years		17,189		15,601
Due after ten years		55,446		48,715
Subtotal		94,672		85,398
Structured securities (RMBS, CMBS, ABS)		16,682		15,492
Total fixed maturity AFS securities	$	111,354	$	100,890

Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position



	As of June 30, 2023
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses ⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	22,081		$	1,288	$	44,158		$	8,600	$	66,239		$	9,888
U.S. government bonds		115			9		142			21		257			30
State and municipal bonds		576			25		1,560			387		2,136			412
Foreign government bonds		72			4		118			42		190			46
RMBS		770			41		955			165		1,725			206
CMBS		408			18		1,222			214		1,630			232
ABS		3,183			115		7,449			689		10,632			804
Hybrid and redeemable
preferred securities		57			5		124			17		181			22
Total fixed maturity AFS securities	$	27,262		$	1,505	$	55,728		$	10,135	$	82,990		$	11,640

Total number of fixed maturity AFS securities in an unrealized loss position															8,331



	As of December 31, 2022
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses ⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	59,929		$	9,049	$	7,094		$	1,955	$	67,023		$	11,004
U.S. government bonds		261			25		27			6		288			31
State and municipal bonds		1,958			440		237			72		2,195			512
Foreign government bonds		130			19		58			28		188			47
RMBS		1,490			179		193			43		1,683			222
CMBS		1,224			156		320			90		1,544			246
ABS		6,715			552		3,326			374		10,041			926
Hybrid and redeemable
preferred securities		63			5		97			25		160			30
Total fixed maturity AFS securities	$	71,770		$	10,425	$	11,352		$	2,593	$	83,122		$	13,018

Total number of fixed maturity AFS securities in an unrealized loss position															8,175

⁽¹⁾As of June 30, 2023, and December 31, 2022, we recognized $10 million and $6 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost



	As of June 30, 2023
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities⁽¹⁾
Less than six months	$	4,669	$	1,324			674
Six months or greater, but less than nine months		208		85			34
Nine months or greater, but less than twelve months		4,214		1,588			697
Twelve months or greater		4,687		2,355			666
Total	$	13,778	$	5,352			2,071


	As of December 31, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities ⁽¹⁾
Less than six months	$	11,351	$	3,659			1,500
Six months or greater, but less than nine months		4,411		2,226			650
Nine months or greater, but less than twelve months		447		302			74
Twelve months or greater		2		1			15
Total	$	16,211	$	6,188			2,239

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

Changes In Allowance For Credit Losses On AFS



	For the Three
	Months Ended
	June 30, 2023
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-period	$	27		$	6	$	6	$	39
Additions from purchases of PCD debt securities ⁽¹⁾		-			-		-		-
Additions for securities for which credit losses were not
previously recognized		2			-		-		2
Additions (reductions) for securities for which credit losses
were previously recognized		(3	)		-		-		(3	)
Reductions for securities charged-off		(13	)		-		-		(13	)
Balance as of end-of-period ⁽²⁾	$	13		$	6	$	6	$	25



	For the Six
	Months Ended
	June 30, 2023
	Corporate
	Bonds			RMBS			Other		Total

Balance as of beginning-of-year	$	9		$	7		$	6	$	22
Additions from purchases of PCD debt securities ⁽¹⁾		-			-			-		-
Additions for securities for which credit losses were not
previously recognized		21			-			-		21
Additions (reductions) for securities for which credit losses
were previously recognized		(3	)		(1	)		-		(4	)
Reductions for securities disposed		(1	)		-			-		(1	)
Reductions for securities charged-off		(13	)		-			-		(13	)
Balance as of end-of-period ⁽²⁾	$	13		$	6		$	6	$	25


	For the Three
	Months Ended
	June 30, 2022
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-period	$	16		$	2	$	2	$	20
Additions from purchases of PCD debt securities ⁽¹⁾		-			-		-		-
Additions for securities for which credit losses were not
previously recognized		1			-		-		1
Additions (reductions) for securities for which credit losses
were previously recognized		2			1		-		3
Reductions for securities charged-off		(12	)		-		-		(12	)
Balance as of end-of-period ⁽²⁾	$	7		$	3	$	2	$	12

‎



	For the Six
	Months Ended
	June 30, 2022
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-year	$	17		$	1	$	1	$	19
Additions from purchases of PCD debt securities ⁽¹⁾		-			-		-		-
Additions for securities for which credit losses were not
previously recognized		1			-		1		2
Additions (reductions) for securities for which credit losses
were previously recognized		2			2		-		4
Reductions for securities disposed		(1	)		-		-		(1	)
Reductions for securities charged-off		(12	)		-		-		(12	)
Balance as of end-of-period ⁽²⁾	$	7		$	3	$	2	$	12

⁽¹⁾Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

⁽²⁾As of June 30, 2023 and 2022, accrued investment income on fixed maturity AFS securities totaled $1.1 billion and $1.0 billion, respectively, and was excluded from the estimate of credit losses.

Composition Of Current And Past Due Mortgage Loans On Real Estate



	As of June 30, 2023									As of December 31, 2022
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	17,021		$	1,471		$	18,492		$	17,003		$	1,315		$	18,318
30 to 59 days past due		-			20			20			19			23			42
60 to 89 days past due		-			4			4			-			6			6
90 or more days past due		-			45			45			-			33			33
Allowance for credit losses		(82	)		(23	)		(105	)		(84	)		(15	)		(99	)
Unamortized premium (discount)		(7	)		39			32			(8	)		36			28
Mark-to-market gains (losses) ⁽¹⁾		(27	)		(1	)		(28	)		(27	)		-			(27	)
Total carrying value	$	16,905		$	1,555		$	18,460		$	16,903		$	1,398		$	18,301

⁽¹⁾Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 13 for additional information.

Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate



	For the Three				For the Six
	Months Ended				Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Average aggregate carrying value for impaired mortgage loans on real estate	$	24	$	15	$	21	$	18
Interest income recognized on impaired mortgage loans on real estate		-		-		-		-
Interest income collected on impaired mortgage loans on real estate		-		-		-		-

Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status


	As of June 30, 2023				As of December 31, 2022
	Nonaccrual				Nonaccrual
	with no				with no
	Allowance				Allowance
	for Credit				for Credit
	Losses		Nonaccrual		Losses		Nonaccrual
Commercial mortgage loans on real estate	$	-	$	-	$	-	$	-
Residential mortgage loans on real estate		-		47		-		34
Total	$	-	$	47	$	-	$	34

Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate


	For the Three
	Months Ended
	June 30, 2023
	Commercial			Residential		Total
Balance as of beginning-of-period	$	83		$	20	$	103
Additions (reductions) from provision for credit loss expense ⁽¹⁾		(1	)		3		2
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period ⁽²⁾	$	82		$	23	$	105



	For the Six
	Months Ended
	June 30, 2023
	Commercial			Residential		Total
Balance as of beginning-of-year	$	84		$	15	$	99
Additions (reductions) from provision for credit loss expense ⁽¹⁾		(2	)		8		6
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period ⁽²⁾	$	82		$	23	$	105


	For the Three
	Months Ended
	June 30, 2022
	Commercial		Residential			Total
Balance as of beginning-of-period	$	59	$	18		$	77
Additions (reductions) from provision for credit loss expense ⁽¹⁾		13		(9	)		4
Additions from purchases of PCD mortgage loans on real estate		-		-			-
Balance as of end-of-period ⁽²⁾	$	72	$	9		$	81



	For the Six
	Months Ended
	June 30, 2022
	Commercial			Residential			Total
Balance as of beginning-of-year	$	79		$	17		$	96
Additions (reductions) from provision for credit loss expense ⁽¹⁾		(7	)		(8	)		(15	)
Additions from purchases of PCD mortgage loans on real estate		-			-			-
Balance as of end-of-period ⁽²⁾	$	72		$	9		$	81

⁽¹⁾We recognized $(1) million and less than $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended June 30, 2023 and 2022, respectively. We recognized $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the six months ended June 30, 2023 and 2022.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $53 million and $49 million as of June 30, 2023 and 2022, respectively, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred



	For the Three						For the Six
	Months Ended						Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Intent to Sell Impairments⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	(518	)	$	-		$	(518	)	$	-
State and municipal bonds		(20	)		-			(20	)		-
RMBS		(19	)		-			(19	)		-
CMBS		(31	)		-			(31	)		-
ABS		(35	)		-			(35	)		-
Hybrid and redeemable preferred securities		(1	)		-			(1	)		-
Total intent to sell impairments	$	(624	)	$	-		$	(624	)	$	-

Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	1		$	(3	)	$	(17	)	$	(2	)
RMBS		-			(1	)		1			(2	)
ABS		-			-			-			(1	)
Total credit loss benefit (expense)	$	1		$	(4	)	$	(16	)	$	(5	)

⁽¹⁾Represents impairment of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company's intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $473 million pre-tax as of June 30, 2023. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes. See Note 8 for additional information.

Payables For Collateral On Investments



	As of June 30, 2023				As of December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments ⁽¹⁾	$	4,622	$	4,622	$	3,284	$	3,284
Securities pledged under securities lending agreements ⁽²⁾		290		282		298		287
Investments pledged for FHLBI ⁽³⁾		2,150		2,725		3,130		3,925
Total payables for collateral on investments	$	7,062	$	7,629	$	6,712	$	7,496

⁽¹⁾We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. This also includes interest payable on collateral. See Note 6 for additional information.

⁽²⁾Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾Our pledged investments for FHLB of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on the Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule Of Increase (Decrease) In Payables For Collateral On Investments



	For the Six
	Months Ended
	June 30,
	2023			2022
Collateral payable for derivative investments	$	1,338		$	(2,280	)
Securities pledged under securities lending agreements		(8	)		58
Investments pledged for FHLBI		(980	)		800
Total increase (decrease) in payables for collateral on investments	$	350		$	(1,422	)

Schedule Of Securities Pledged By Contractual Maturity



	As of June 30, 2023
	Overnight and Continuous		Up to 30 Days		30 - 90 ‎Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	285	$	-	$	-	$	-	$	285
Equity securities		5		-		-		-		5
Total gross secured borrowings	$	290	$	-	$	-	$	-	$	290


	As of December 31, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 ‎Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	288	$	-	$	-	$	-	$	288
Foreign government bonds		2		-		-		-		2
Equity securities		8		-		-		-		8
Total gross secured borrowings	$	298	$	-	$	-	$	-	$	298

Commercial [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Credit Quality Indicators For Mortgage Loans



	As of June 30, 2023
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2023	$	427	1.80	$	32	1.45	$	-	-	$	459
2022		1,770	2.07		91	2.05		1	1.13		1,862
2021		2,344	3.06		67	1.51		-	-		2,411
2020		1,252	2.90		12	1.55		-	-		1,264
2019		2,593	2.23		87	1.50		18	1.43		2,698
2018 and prior		7,910	2.39		248	1.67		162	1.57		8,320
Total	$	16,296		$	537		$	181		$	17,014



	As of December 31, 2022
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2022	$	1,769	2.06	$	105	1.50	$	2	1.45	$	1,876
2021		2,354	3.05		72	1.53		-	-		2,426
2020		1,289	3.00		17	1.58		-	-		1,306
2019		2,685	2.18		81	1.50		29	1.58		2,795
2018		2,225	2.17		71	1.62		-	-		2,296
2017 and prior		6,184	2.44		131	1.75		-	-		6,315
Total	$	16,506		$	477		$	31		$	17,014

Residential [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Credit Quality Indicators For Mortgage Loans



	As of June 30, 2023
	Performing		Nonperforming			Total
Origination Year
2023	$	185		$	-	$	185
2022		602			14		616
2021		496			10		506
2020		87			1		88
2019		105			19		124
2018 and prior		57			3		60
Total	$	1,532		$	47	$	1,579



	As of December 31, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	578		$	5	$	583
2021		527			6		533
2020		90			3		93
2019		119			18		137
2018		65			2		67
2017 and prior		-			-		-
Total	$	1,379		$	34	$	1,413