
Three Months Ended March 31	2022		2021
(In millions)

Fixed maturity securities	$	429	$	428
Limited partnership investments	20		47

Equity securities	2		29
Income (loss) from trading portfolio (a)	(15)		50
Other	15		16
Total investment income	451		570
Investment expenses	(19)		(20)
Net investment income	$	432	$	550


Three Months Ended March 31	2022		2021
(In millions)

Fixed maturity securities:
Gross gains	$	26	$	58
Gross losses	(28)		(20)
Investment gains (losses) on fixed maturity securities	(2)		38
Equity securities	(38)		2
Derivative instruments	29		17

Investment gains (losses) (a)	$	(11)	$	57

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $389 million, $369 million and $389 million as of March 31, 2022, December 31, 2021 and March 31, 2021 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.


Three months ended March 31, 2022	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of January 1, 2022	$	11	$	7	$	18









Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		(2)		(1)
Total allowance for credit losses	$	12	$	5	$	17


Three months ended March 31, 2021

Allowance for credit losses:
Balance as of January 1, 2021	$	23	$	17	$	40
Additions to the allowance for credit losses:

Securities for which credit losses were not previously recorded	14				14
Available-for-sale securities accounted for as PCD assets	2				2

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6				6


Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period	(6)		(1)		(7)
Total allowance for credit losses	$	27	$	16	$	43

The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:


March 31, 2022	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	22,001	$	1,277	$	486	$	12	$	22,780
States, municipalities and political subdivisions	10,516		862		319				11,059
Asset-backed:
Residential mortgage-backed	2,983		25		160				2,848
Commercial mortgage-backed	2,008		13		81				1,940
Other asset-backed	2,710		11		93		5		2,623
Total asset-backed	7,701		49		334		5		7,411
U.S. Treasury and obligations of government sponsored enterprises	125				5				120
Foreign government	559		3		13				549
Redeemable preferred stock	20								20
Fixed maturities available-for-sale	40,922		2,191		1,157		17		41,939
Fixed maturities trading	6								6
Total fixed maturity securities	$	40,928	$	2,191	$	1,157	$	17	$	41,945


December 31, 2021	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	21,444	$	2,755	$	56	$	11	$	24,132
States, municipalities and political subdivisions	10,358		1,599		14				11,943
Asset-backed:
Residential mortgage-backed	2,893		71		8				2,956
Commercial mortgage-backed	1,987		63		19				2,031
Other asset-backed	2,561		54		10		7		2,598
Total asset-backed	7,441		188		37		7		7,585
U.S. Treasury and obligations of government sponsored enterprises	132		1		3				130
Foreign government	570		15		2				583

Fixed maturities available-for-sale	39,945		4,558		112		18		44,373
Fixed maturities trading	7								7
Total fixed maturity securities	$	39,952	$	4,558	$	112	$	18	$	44,380

The net unrealized gains on available-for-sale investments included in the tables above are recorded as a component of AOCI. When presented in AOCI, these amounts are net of tax and noncontrolling interests and any required Shadow Adjustments. To the extent that unrealized gains on fixed maturity securities supporting structured settlements not funded by annuities were realized, or that unrealized gains on fixed maturity securities supporting long term care products would result in a premium deficiency, or would impact the reserve balance, if realized, a related increase in Insurance reserves is recorded, net of tax and noncontrolling interests, as a reduction of net unrealized gains through Other comprehensive income (loss) (“Shadow Adjustments”). As of March 31, 2022 and December 31, 2021, the net unrealized gains on investments included in AOCI were correspondingly reduced by Shadow Adjustments of $1.3 billion and $2.2 billion (after tax and noncontrolling interests).


	Less than 12 Months				12 Months or Longer				Total
March 31, 2022	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	7,390	$	441	$	327	$	45	$	7,717	$	486
States, municipalities and political subdivisions	2,796		314		35		5		2,831		319
Asset-backed:
Residential mortgage-backed	2,315		160						2,315		160
Commercial mortgage-backed	1,274		65		151		16		1,425		81
Other asset-backed	1,717		90		67		3		1,784		93
Total asset-backed	5,306		315		218		19		5,524		334
U.S. Treasury and obligations of government-sponsored enterprises	94		5		5				99		5
Foreign government	327		11		26		2		353		13
Total fixed maturity securities	$	15,913	$	1,086	$	611	$	71	$	16,524	$	1,157

December 31, 2021

Fixed maturity securities:
Corporate and other bonds	$	2,389	$	48	$	136	$	8	$	2,525	$	56
States, municipalities and political subdivisions	730		14						730		14
Asset-backed:
Residential mortgage-backed	1,043		8						1,043		8
Commercial mortgage-backed	527		7		167		12		694		19
Other asset-backed	840		10		62				902		10
Total asset-backed	2,410		25		229		12		2,639		37
U.S. Treasury and obligations of government-sponsored enterprises	69		3		5				74		3
Foreign government	97		2						97		2
Total fixed maturity securities	$	5,695	$	92	$	370	$	20	$	6,065	$	112


	March 31, 2022				December 31, 2021
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	2,095	$	116	$	898	$	8
AAA	993		105		368		6
AA	2,809		269		875		17
A	3,300		205		1,516		23
BBB	6,073		392		1,812		42
Non-investment grade	1,254		70		596		16
Total	$	16,524	$	1,157	$	6,065	$	112

Based on current facts and circumstances, the unrealized losses presented in the March 31, 2022 securities in a gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates, and to a lesser extent credit spreads. In reaching this determination, the recent volatility in risk-free rates and spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded at March 31, 2022.


	March 31, 2022				December 31, 2021
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	1,533	$	1,546	$	1,603	$	1,624
Due after one year through five years	10,206		10,337		10,637		11,229
Due after five years through ten years	14,040		14,032		13,294		14,338
Due after ten years	15,143		16,024		14,411		17,182
Total	$	40,922	$	41,939	$	39,945	$	44,373


	Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of March 31, 2022	2022		2021		2020		2019		2018		Prior		Total
(In millions)

DSCR ≥1.6x
LTV less than 55%			$	9	$	94	$	21	$	54	$	247	$	425
LTV 55% to 65%			5		19		8				24		56
LTV greater than 65%	$	18	11										29
DSCR 1.2x - 1.6x
LTV less than 55%			13		14		95		10		56		188
LTV 55% to 65%	21		36		24						8		89
LTV greater than 65%													—
DSCR ≤1.2x
LTV less than 55%							52				30		82
LTV 55% to 65%							55						55
LTV greater than 65%			21				6				7		34
Total	$	39	$	95	$	151	$	237	$	64	$	372	$	958

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these instruments. Gross estimated fair values of derivative positions are currently presented in Equity securities, Receivables and Payable to brokers on the Consolidated Condensed Balance Sheets.


	March 31, 2022					December 31, 2021
	Contractual/Notional Amount		Estimated Fair Value			Contractual/Notional Amount		Estimated Fair Value
			Asset		(Liability)			Asset	(Liability)
(In millions)

Without hedge designation:

Equity markets:
Options – purchased	$	76	$	1
Futures – short	103		1
Interest rate swaps	240		10			$	100
Forward commitments for mortgage-backed securities	45
Currency forwards	13
Embedded derivative on funds withheld liability	268		16			270			$	(12)

As part of the overall investment strategy, investments are made in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications and obligations related to private placement securities. As of March 31, 2022, commitments to purchase or fund were approximately $1.3 billion and to sell were approximately $65 million under the terms of these investments.