XML 66 R43.htm IDEA: XBRL DOCUMENT v3.24.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments [Abstract]  
Schedule of Available-for-Sale Securities Reconciliation
The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows:

As of December 31, 2023
Amortized CostGross UnrealizedAllowance for Credit LossesFair Value
GainsLosses
Fixed maturity AFS securities:
Corporate bonds$77,085 $852 $8,272 $8 $69,657 
U.S. government bonds416 6 29 – 393 
State and municipal bonds3,106 101 417 – 2,790 
Foreign government bonds314 16 47 – 283 
RMBS1,948 28 197 6 1,773 
CMBS1,622 5 203 – 1,424 
ABS12,698 62 585 4 12,171 
Hybrid and redeemable preferred securities244 21 17 1 247 
Total fixed maturity AFS securities$97,433 $1,091 $9,767 $19 $88,738 

As of December 31, 2022
Amortized CostGross UnrealizedAllowance for Credit LossesFair Value
GainsLosses
Fixed maturity AFS securities:
Corporate bonds$89,249 $787 $11,004 $9 $79,023 
U.S. government bonds405 5 31 – 379 
State and municipal bonds5,410 172 512 – 5,070 
Foreign government bonds348 17 47 – 318 
RMBS2,216 22 222 7 2,009 
CMBS1,917 3 246 – 1,674 
ABS11,797 38 926 5 10,904 
Hybrid and redeemable preferred securities365 25 30 1 359 
Total fixed maturity AFS securities$111,707 $1,069 $13,018 $22 $99,736 
Investments Classified by Contractual Maturity Date
The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2023, were as follows:

Amortized CostFair Value
Due in one year or less$4,295 $4,257 
Due after one year through five years17,171 16,563 
Due after five years through ten years15,113 13,956 
Due after ten years44,586 38,594 
Subtotal81,165 73,370 
Structured securities (RMBS, CMBS, ABS)16,268 15,368 
Total fixed maturity AFS securities$97,433 $88,738 
Schedule of Available-for-Sale Securities Unrealized Loss Position
The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

As of December 31, 2023
Less Than or Equal
to Twelve Months		Greater Than Twelve MonthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds$14,005 $3,270 $34,595 $5,002 $48,600 $8,272 
U.S. government bonds65 6 195 23 260 29 
State and municipal bonds371 72 874 345 1,245 417 
Foreign government bonds111 31 57 16 168 47 
RMBS360 20 886 177 1,246 197 
CMBS583 56 589 147 1,172 203 
ABS1,900 68 7,217 517 9,117 585 
Hybrid and redeemable preferred securities32 3 95 14 127 17 
Total fixed maturity AFS securities$17,427 $3,526 $44,508 $6,241 $61,935 $9,767 
Total number of fixed maturity AFS securities in an unrealized loss position7,605 

As of December 31, 2022
Less Than or Equal
to Twelve Months		Greater Than Twelve MonthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds$59,929 $9,049 $7,094 $1,955 $67,023 $11,004 
U.S. government bonds261 25 27 6 288 31 
State and municipal bonds1,958 440 237 72 2,195 512 
Foreign government bonds130 19 58 28 188 47 
RMBS1,490 179 193 43 1,683 222 
CMBS1,224 156 320 90 1,544 246 
ABS6,715 552 3,326 374 10,041 926 
Hybrid and redeemable preferred securities63 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 position8,175 

(1) As of December 31, 2023 and 2022, we recognized $8 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.
The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:

As of December 31, 2023
Fair ValueGross Unrealized Losses
Number
of
Securities (1)
Less than six months$2,492 $927 533 
Six months or greater, but less than nine months343 96 79 
Nine months or greater, but less than twelve months336 109 90 
Twelve months or greater4,094 2,922 997 
Total$7,265 $4,054 1,699 

As of December 31, 2022
Fair ValueGross Unrealized Losses
Number
of
Securities (1)
Less than six months$11,351 $3,659 1,500 
Six months or greater, but less than nine months4,411 2,226 650 
Nine months or greater, but less than twelve months447 302 74 
Twelve months or greater2 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.
Debt Securities, Available-for-Sale
Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:

For the Year Ended December 31, 2023
Corporate BondsRMBSOtherTotal
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 recognized25 1 – 26 
Additions (reductions) for securities for which credit losses
 were previously recognized(2)(2)(1)(5)
Reductions for securities disposed(2)– – (2)
Reductions for securities charged-off(22)– – (22)
Balance as of end-of-year (2)
$8 $6 $5 $19 

For the Year Ended December 31, 2022
Corporate BondsRMBSOtherTotal
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 recognized4 3 1 8 
Additions (reductions) for securities for which credit losses
were previously recognized2 3 4 9 
Reductions for securities disposed(2)– – (2)
Reductions for securities charged-off(12)– – (12)
Balance as of end-of-year (2)
$9 $7 $6 $22 
 
For the Year Ended December 31, 2021
Corporate BondsRMBSOtherTotal
Balance as of beginning-of-year$12 $1 $– $13 
Additions from purchases of PCD debt securities (1)
– – – – 
Additions for securities for which credit losses were not
previously recognized8 – 1 9 
Additions (reductions) for securities for which credit losses
were previously recognized5 – – 5 
Reductions for securities disposed(2)– – (2)
Reductions for securities charged-off(6)– – (6)
Balance as of end-of-year (2)
$17 $1 $1 $19 
(1) Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.
(2) As of December 31, 2023, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $908 million, $1.1 billion and $972 million, respectively, and was excluded from the estimate of credit losses.
Fair Value of Trading Securities
Trading securities at fair value (in millions) consisted of the following:

As of December 31,
20232022
Fixed maturity securities:
Corporate bonds$1,653 $2,248 
State and municipal bonds21 21 
Foreign government bonds46 49 
RMBS62 99 
CMBS104 137 
ABS455 919 
Hybrid and redeemable preferred securities18 25 
Total trading securities$2,359 $3,498 
Composition of Current and Past Due Mortgage Loans on Real Estate
The following provides the current and past due composition of our mortgage loans on real estate (in millions):

As of December 31, 2023As of December 31, 2022
CommercialResidentialTotalCommercialResidentialTotal
Current$17,256 $1,665 $18,921 $17,003 $1,315 $18,318 
30 to 59 days past due61 28 89 19 23 42 
60 to 89 days past due– 9 9 – 6 6 
90 or more days past due– 60 60 – 33 33 
Allowance for credit losses(86)(28)(114)(84)(15)(99)
Unamortized premium (discount)(7)43 36 (8)36 28 
Mark-to-market gains (losses) (1)
(37)(1)(38)(27)– (27)
Total carrying value$17,187 $1,776 $18,963 $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 Note15 for additional information.
Schedule of Average Carrying Value of Impaired Mortgage Loans on Real Estate
Additional information related to impaired mortgage loans on real estate (in millions) was as follows:

For the Years Ended December 31,
202320222021
Average aggregate carrying value for impaired mortgage loans on real estate$30 $16 $32 
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
The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows:

As of December 31, 2023As of December 31, 2022
Nonaccrual
with no
Allowance
for Credit
Losses		NonaccrualNonaccrual
with no
Allowance
for Credit
Losses		Nonaccrual
Commercial mortgage loans on real estate$– $– $– $– 
Residential mortgage loans on real estate– 62– 34
Total$– $62 $– $34 
Financing Receivable Credit Quality Indicators The amortized cost of commercial mortgage loans on real estate (dollars in millions) by year of origination and credit quality indicator was as follows:
As of December 31, 2023
Less than 65%Debt-Service Coverage Ratio65% to 75%Debt-Service Coverage RatioGreater than 75%Debt-Service Coverage RatioTotal
Origination Year
2023$1,368 1.90 $54 1.38 $– – $1,422 
20221,710 2.06 140 1.54 – – 1,850 
20212,335 3.34 61 1.55 – – 2,396 
20201,214 3.24 11 1.38 – – 1,225 
20192,446 2.40 80 1.56 10 2.33 2,536 
2018 and prior7,789 2.39 78 1.60 14 0.87 7,881 
Total$16,862 $424 $24 $17,310 
As of December 31, 2022
Less than 65%Debt-Service Coverage Ratio65% to 75%Debt-Service Coverage RatioGreater than 75%Debt-Service Coverage RatioTotal
Origination Year
2022$1,769 2.06$105 1.50 $2 1.45 $1,876 
20212,354 3.05721.53– – 2,426 
20201,289 3.00171.58– – 1,306 
20192,685 2.18811.5029 1.58 2,795 
20182,225 2.17711.62– – 2,296 
2017 and prior6,184 2.441311.75– – 6,315 
Total$16,506 $477 $31 $17,014 
The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:
As of December 31, 2023
PerformingNonperformingTotal
Origination Year
2023$515 $2 $517 
2022533 22 555 
2021465 18 483 
202078 3 81 
201999 13 112 
2018 and prior53 4 57 
Total$1,743 $62 $1,805 

As of December 31, 2022
PerformingNonperformingTotal
Origination Year
2022$578 $5 $583 
2021527 6 533 
202090 3 93 
2019119 18 137 
201865 2 67 
2017 and prior– – – 
Total$1,379 $34 $1,413 
Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate
Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:

For the Year Ended December 31, 2023
CommercialResidentialTotal
Balance as of beginning-of-year$84 $15 $99 
Additions (reductions) from provision for credit loss expense (1)
2 13 15 
Additions from purchases of PCD mortgage loans on real estate– – – 
Balance as of end-of-year (2)
$86 $28 $114 

For the Year Ended December 31, 2022
CommercialResidentialTotal
Balance as of beginning-of-year$79 $17 $96 
Additions (reductions) from provision for credit loss expense (1)
5 (2)3 
Additions from purchases of PCD mortgage loans on real estate– – – 
Balance as of end-of-year (2)
$84 $15 $99 

For the Year Ended December 31, 2021
CommercialResidentialTotal
Balance as of beginning-of-year$187 $17 $204 
Additions (reductions) from provision for credit loss expense (1)
(108)– (108)
Additions from purchases of PCD mortgage loans on real estate– – – 
Balance as of end-of-year (2)
$79 $17 $96 

(1) We recognized $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2023. We did not recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022. We recognized $4 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2021.
(2) Accrued investment income on mortgage loans on real estate totaled $68 million, $51 million and $49 million as of December 31, 2023, 2022 and 2021, respectively, and was excluded from the estimate of credit losses.
Net Investment Income
The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:

For the Years Ended December 31,
202320222021
Fixed maturity AFS securities$4,819 $4,469 $4,351 
Trading securities161 182 167 
Equity securities13 11 3 
Mortgage loans on real estate755 689 680 
Policy loans103 101 115 
Cash and invested cash129 13 – 
Commercial mortgage loan prepayment
and bond make-whole premiums10 105 199 
Alternative investments243 66 679 
Consent fees3 8 10 
Other investments(33)79 64 
Investment income6,203 5,723 6,268 
Investment expense(324)(208)(157)
Net investment income$5,879 $5,515 $6,111 
Credit Loss Expense Incurred
Details underlying intent to sell impairments and credit loss benefit (expense) incurred that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:

For the Years Ended December 31,
202320222021
Intent to Sell Impairments (1)
Fixed maturity AFS securities:
Corporate bonds$(941)$– $– 
State and municipal bonds(48)– – 
RMBS(28)– – 
CMBS(36)– – 
ABS(37)– – 
Hybrid and redeemable preferred securities(1)– – 
Total intent to sell impairments$(1,091)$– $– 
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds$(24)$(5)$(10)
RMBS1 (6)– 
ABS1 (4)– 
Hybrid and redeemable preferred securities– – (1)
Total credit loss benefit (expense)$(22)$(15)$(11)

(1)     Represents impairments 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 Fortitude Re reinsurance transaction. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $335 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses on fixed maturity AFS securities in Note 21. See Note 8 for additional information.
Payables for Collateral on Investments
The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:

As of December 31, 2023As of December 31, 2022
Carrying ValueFair ValueCarrying ValueFair Value
Collateral payable for derivative investments (1)
$5,250 $5,250 $3,284 $3,284 
Securities pledged under securities lending agreements (2)
205 197 298 287 
Investments pledged for FHLBI (3)
2,650 3,603 3,130 3,925 
Total payables for collateral on investments$8,105 $9,050 $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 or fixed maturity AFS securities. 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 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
Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:

For the Years Ended December 31,
202320222021
Collateral payable for derivative investments$1,966 $(2,291)$2,599 
Securities pledged under securities lending agreements(93)57 125 
Investments pledged for FHLBI(480)– – 
Total increase (decrease) in payables for collateral on investments$1,393 $(2,234)$2,724 
Schedule of Securities Pledged by Contractual Maturity The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:
As of December 31, 2023
Overnight and ContinuousUp to 30 Days30-90 DaysGreater than 90 DaysTotal
Securities Lending
Corporate bonds$202 $– $– $– $202 
Equity securities3 – – – 3 
Total gross secured borrowings$205 $– $– $– $205 
As of December 31, 2022
Overnight and ContinuousUp to 30 Days30-90 DaysGreater than 90 DaysTotal
Securities Lending
Corporate bonds$288 $– $– $– $288 
Foreign government bonds2– – – 2
Equity securities8– – – 8
Total gross secured borrowings$298 $– $– $– $298