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Investments (Tables)
 3 Months Ended
Mar. 31, 2021
Investments [Abstract]  
Net Investment Income

Net investment income is as follows:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities
  
$
428
    
$
438
  
Limited partnership investments
    
47
      
(102
)
Short term investments
            
7
  
Equity securities
    
29
      
(44
)
Income (loss) from trading portfolio (a)
    
50
      
(129
)
Other
    
16
      
14
  
Total investment income
    
570
      
184
  
Investment expenses
    
(20
)
    
(21
)
Net investment income
  
$
550
    
$
163
  

(a)
Net unrealized gains (losses) related to changes in fair value on securities still held were $32 and $(117) for the three months ended March 31, 2021 and 2020.
Investment Gains (Losses)

Investment gains (losses) are as follows:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities
  
$
38
    
$
(75
)
Equity securities
    
2
      
(133
)
Derivative instruments
    
17
      
5
  
Short term investments and other
            
(13
)
Investment gains (losses) (a)
  
$
57
    
$
(216
)

(a)
Gross investment gains on available-for-sale securities were $58 and $29 for the three months ended March 31, 2021 and 2020. Gross investment losses on available-for-sale securities were $20 and $104 for the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021 and 2020, $2 of investment gains and $133 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2021 and 2020.
Allowance for Credit Losses

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, $371 million and $390 million as of March 31, 2021, December 31, 2020 and March 31, 2020 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, 2021
  
Corporate and
Other Bonds
    
Asset-backed
    
Total
  
(In millions)
                  
                   
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
  
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
                        
                         
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
  
                         
Three months ended March 31, 2020
                        
                         
Allowance for credit losses:
                        
Balance as of January 1, 2020
  
$
-
    
$
-
    
$
-
  
Additions to the allowance for credit losses:
                        
Impact of adopting ASC 326
    
6
              
6
  
Securities for which credit losses were not previously recorded
    
48
              
48
  
Available-for-sale securities accounted for as PCD assets
    
1
              
1
  
                         
Reductions to the allowance for credit losses:
                        
Securities sold during the period (realized)
    
5
              
5
  
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
    
1
              
1
  
Total allowance for credit losses
  
$
49
    
$
-
    
$
49
  
Available-for-Sale Impairment Losses Recognized in Earnings

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:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities available-for-sale:
            
Corporate and other bonds
  
$
7
    
$
91
  
Asset-backed
    
(1
)
    
1
  
Impairment losses recognized in earnings
  
$
6
    
$
92
  
Amortized Cost and Fair Values of Fixed Maturity Securities

The amortized cost and fair values of fixed maturity securities are as follows:

March 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
  
$
21,110
    
$
2,644
    
$
71
    
$
27
    
$
23,656
  
States, municipalities and political subdivisions
    
10,041
      
1,590
      
31
              
11,600
  
Asset-backed:
                                        
Residential mortgage-backed
    
3,215
      
108
      
40
              
3,283
  
Commercial mortgage-backed
    
1,952
      
76
      
24
      
16
      
1,988
  
Other asset-backed
    
2,281
      
71
      
7
              
2,345
  
Total asset-backed
    
7,448
      
255
      
71
      
16
      
7,616
  
U.S. Treasury and obligations of government-sponsored enterprises
    
138
      
1
      
7
              
132
  
Foreign government
    
508
      
23
      
2
              
529
  
Redeemable preferred stock
    
12
                              
12
  
Fixed maturities available-for-sale
    
39,257
      
4,513
      
182
      
43
      
43,545
  
Fixed maturities trading
    
36
      
3
                      
39
  
Total fixed maturity securities
  
$
39,293
    
$
4,516
    
$
182
    
$
43
    
$
43,584
  

December 31, 2020
                              
                               
Fixed maturity securities:
                              
Corporate and other bonds
  
$
20,792
    
$
3,578
    
$
22
    
$
23
    
$
24,325
  
States, municipalities and political subdivisions
    
9,729
      
1,863
                      
11,592
  
Asset-backed:
                                        
Residential mortgage-backed
    
3,442
      
146
      
1
              
3,587
  
Commercial mortgage-backed
    
1,933
      
93
      
42
      
17
      
1,967
  
Other asset-backed
    
2,179
      
81
      
9
              
2,251
  
Total asset-backed
    
7,554
      
320
      
52
      
17
      
7,805
  
U.S. Treasury and obligations of government-sponsored enterprises
    
339
      
2
      
3
              
338
  
Foreign government
    
512
      
32
                      
544
  
Fixed maturities available-for-sale
    
38,926
      
5,795
      
77
      
40
      
44,604
  
Fixed maturities trading
    
37
      
5
                      
42
  
Total fixed maturity securities
  
$
38,963
    
$
5,800
    
$
77
    
$
40
    
$
44,646
  
Available-for-Sale Securities in Gross Unrealized Loss Position

The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:

  
Less than
12 Months
    
12 Months
or Longer
    
Total
  
March 31, 2021
  
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
  
$
1,868
    
$
66
    
$
82
    
$
5
    
$
1,950
    
$
71
  
States, municipalities and political subdivisions
    
866
      
31
                      
866
      
31
  
Asset-backed:
                                                
Residential mortgage-backed
    
1,584
      
40
      
12
              
1,596
      
40
  
Commercial mortgage-backed
    
320
      
9
      
285
      
15
      
605
      
24
  
Other asset-backed
    
337
      
3
      
97
      
4
      
434
      
7
  
Total asset-backed
    
2,241
      
52
      
394
      
19
      
2,635
      
71
  
U.S. Treasury and obligations of government-sponsored enterprises
    
65
      
7
                      
65
      
7
  
Foreign government
    
45
      
2
                      
45
      
2
  
Total fixed maturity securities
  
$
5,085
    
$
158
    
$
476
    
$
24
    
$
5,561
    
$
182
  

December 31, 2020
                                    
                                     
Fixed maturity securities:
                                    
Corporate and other bonds
  
$
609
    
$
21
    
$
12
    
$
1
    
$
621
    
$
22
  
States, municipalities and political subdivisions
    
33
                              
33
          
Asset-backed:
                                                
Residential mortgage-backed
    
71
      
1
      
11
              
82
      
1
  
Commercial mortgage-backed
    
533
      
40
      
28
      
2
      
561
      
42
  
Other asset-backed
    
344
      
9
      
13
              
357
      
9
  
Total asset-backed
    
948
      
50
      
52
      
2
      
1,000
      
52
  
U.S. Treasury and obligations of government-sponsored enterprises
    
63
      
3
                      
63
      
3
  
Foreign government
    
13
                              
13
          
Total fixed maturity securities
  
$
1,666
    
$
74
    
$
64
    
$
3
    
$
1,730
    
$
77
  
Available-for-Sale Fixed Maturity Securities by Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.

  
March 31, 2021
    
December 31, 2020
  
   
Cost or
Amortized
Cost
    
Estimated
Fair
Value
    
Cost or
Amortized
Cost
    
Estimated
Fair
Value
  
(In millions)
                        
                         
Due in one year or less
  
$
1,468
    
$
1,473
    
$
1,456
    
$
1,458
  
Due after one year through five years
    
10,837
      
11,583
      
12,304
      
13,098
  
Due after five years through ten years
    
13,640
      
14,685
      
12,319
      
13,878
  
Due after ten years
    
13,312
      
15,804
      
12,847
      
16,170
  
Total
  
$
39,257
    
$
43,545
    
$
38,926
    
$
44,604
  
Amortized Cost Basis of Mortgage Loans for Each Credit Quality Indicator by Year of Origination

The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios:

  
Mortgage Loans Amortized Cost Basis by Origination Year (a)
  
As of March 31, 2021
  
2021
    
2020
    
2019
    
2018
    
2017
    
Prior
    
Total
  
(In millions)
                                          
                                           
DSCR ≥1.6x
                                          
LTV less than 55%
        
$
75
    
$
32
    
$
36
    
$
114
    
$
187
    
$
444
  
LTV 55% to 65%
          
14
      
20
      
14
      
15
      
11
      
74
  
LTV greater than 65%
  
$
5
              
5
                      
24
      
34
  
DSCR 1.2x - 1.6x
                                                        
LTV less than 55%
                    
16
              
5
      
77
      
98
  
LTV 55% to 65%
            
20
      
40
      
53
      
27
              
140
  
LTV greater than 65%
    
10
      
52
      
44
              
9
      
12
      
127
  
DSCR ≤1.2x
                                                        
LTV less than 55%
                    
50
              
8
      
10
      
68
  
LTV 55% to 65%
                    
48
                              
48
  
LTV greater than 65%
                    
29
                      
7
      
36
  
Total
  
$
15
    
$
161
    
$
284
    
$
103
    
$
178
    
$
328
    
$
1,069
  

(a)
The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index.
Aggregate Contractual or Notional Amounts and Estimated Fair Values Related to Derivative Financial Instruments

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, 2021
    
December 31, 2020
  
   
Contractual/
Notional
    
Estimated Fair Value
    
Contractual/
Notional
    
Estimated Fair Value
  
   
Amount
    
Asset
    
(Liability)
    
Amount
    
Asset
    
(Liability)
  
(In millions)
        
_
      
-
                    
                                       
With hedge designation:
                                      
Interest rate swaps (a)
                      
$
675
          
$
(26
)
                                           
Without hedge designation:
                                          
                                           
Equity markets:
                                          
Options – purchased
  
$
200
    
$
2
    
_
      
135
    
$
3
          
Interest rate swaps
    
100
            
$
(2
)
    
100
              
(3
)
Embedded derivative on funds withheld liability
    
256
              
(2
)
    
190
              
(19
)

(a)
As of March 31, 2021, Interest rate swaps exclude amounts classified as held for sale. See Note 2 for further discussion.