Investments (Tables)

3 Months Ended

Mar. 31, 2021

Total investments at March 31, 2021 and December 31, 2020 were as follows:


	March 31, 2021						December 31, 2020
In millions	Current		Long-term		Total		Current		Long-term		Total
Debt securities available for sale	$	3,003	$	18,501	$	21,504	$	2,774	$	18,414	$	21,188
Mortgage loans	187		810		997		226		821		1,047
Other investments	—		1,714		1,714		—		1,577		1,577
Total investments	$	3,190	$	21,025	$	24,215	$	3,000	$	20,812	$	23,812

Debt Securities Available For Sale

Debt securities available for sale at March 31, 2021 and December 31, 2020 were as follows:


In millions	Amortized Cost (1)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2021
Debt securities:
U.S. government securities	$	2,236	$	72	$	(2)	$	2,306
States, municipalities and political subdivisions	2,778		142		(4)		2,916
U.S. corporate securities	8,671		689		(36)		9,324
Foreign securities	2,655		215		(12)		2,858
Residential mortgage-backed securities	744		24		(6)		762
Commercial mortgage-backed securities	943		55		(13)		985
Other asset-backed securities	2,295		30		(2)		2,323
Redeemable preferred securities	27		3		—		30
Total debt securities (2)	$	20,349	$	1,230	$	(75)	$	21,504

December 31, 2020
Debt securities:
U.S. government securities	$	2,341	$	128	$	—	$	2,469
States, municipalities and political subdivisions	2,556		172		—		2,728
U.S. corporate securities	7,879		1,023		(8)		8,894
Foreign securities	2,595		324		(1)		2,918
Residential mortgage-backed securities	673		32		—		705
Commercial mortgage-backed securities	962		84		—		1,046
Other asset-backed securities	2,369		36		(2)		2,403
Redeemable preferred securities	21		4		—		25
Total debt securities (2)	$	19,396	$	1,803	$	(11)	$	21,188

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(1)There was no allowance for credit losses recorded on available-for-sale debt securities at March 31, 2021 or December 31, 2020.

(2)Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At March 31, 2021, debt securities with a fair value of $870 million, gross unrealized capital gains of $90 million and gross unrealized capital losses of $2 million and at December 31, 2020, debt securities with a fair value of $919 million, gross unrealized capital gains of $135 million and no gross unrealized capital losses were included in total debt securities, but support experience-rated products. Changes in net unrealized capital gains (losses) on these securities are not reflected in accumulated other comprehensive income.

Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at March 31, 2021 are shown below by contractual maturity. Actual maturities may differ from contractual maturities because securities may be restructured, called or prepaid, or the Company intends to sell a security prior to maturity.


In millions	Amortized Cost		Fair Value
Due to mature:
Less than one year	$	1,199	$	1,213
One year through five years	6,997		7,289
After five years through ten years	4,150		4,367
Greater than ten years	4,021		4,565
Residential mortgage-backed securities	744		762
Commercial mortgage-backed securities	943		985
Other asset-backed securities	2,295		2,323
Total	$	20,349	$	21,504

Debt Securities In An Unrealized Capital Loss Position

Summarized below are the debt securities the Company held at March 31, 2021 and December 31, 2020 that were in an unrealized capital loss position, aggregated by the length of time the investments have been in that position:


	Less than 12 months					Greater than 12 months					Total
In millions, except number of securities	Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
March 31, 2021
Debt securities:
U.S. government securities	235	$	877	$	2	—	$	—	$	—	235	$	877	$	2
States, municipalities and political subdivisions	219	386		4		—	—		—		219	386		4
U.S. corporate securities	1,199	1,633		35		11	12		1		1,210	1,645		36
Foreign securities	293	453		12		7	8		—		300	461		12
Residential mortgage-backed securities	105	396		6		5	—		—		110	396		6
Commercial mortgage-backed securities	112	311		13		—	—		—		112	311		13
Other asset-backed securities	231	476		2		25	31		—		256	507		2
Redeemable preferred securities	2	5		—		—	—		—		2	5		—
Total debt securities	2,396	$	4,537	$	74	48	$	51	$	1	2,444	$	4,588	$	75

December 31, 2020
Debt securities:
U.S. government securities	32	$	205	$	—	—	$	—	$	—	32	$	205	$	—
States, municipalities and political subdivisions	49	83		—		—	—		—		49	83		—
U.S. corporate securities	145	155		8		2	—		—		147	155		8
Foreign securities	41	69		1		5	5		—		46	74		1
Residential mortgage-backed securities	23	26		—		3	—		—		26	26		—
Commercial mortgage-backed securities	22	75		—		—	—		—		22	75		—
Other asset-backed securities	156	256		1		49	41		1		205	297		2
Total debt securities	468	$	869	$	10	59	$	46	$	1	527	$	915	$	11

The maturity dates for debt securities in an unrealized capital loss position at March 31, 2021 were as follows:


	Supporting experience-rated products				Supporting remaining products				Total
In millions	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Due to mature:
Less than one year	$	—	$	—	$	9	$	—	$	9	$	—
One year through five years	2		—		1,569		13		1,571		13
After five years through ten years	29		—		1,287		25		1,316		25
Greater than ten years	23		1		455		15		478		16
Residential mortgage-backed securities	—		—		396		6		396		6
Commercial mortgage-backed securities	6		1		305		12		311		13
Other asset-backed securities	3		—		504		2		507		2
Total	$	63	$	2	$	4,525	$	73	$	4,588	$	75

Activity in Mortgage Loan Portfolio

During the three months ended March 31, 2021 and 2020, the Company had the following activity in its mortgage loan portfolio:


	Three Months Ended March 31,
In millions	2021		2020
New mortgage loans	$	47	$	8
Mortgage loans fully repaid	90		44
Mortgage loans foreclosed	—		—

Mortgage Loan Internal Credit Rating

Based on the Company’s assessments at March 31, 2021 and December 31, 2020, the amortized cost basis of the Company's mortgage loans within each credit quality indicator by year of origination was as follows:


	Amortized Cost Basis by Year of Origination
In millions, except credit quality indicator	2021		2020		2019		2018		2017		Prior		Total
March 31, 2021
1	$	—	$	—	$	—	$	—	$	22	$	36	$	58
2 to 4	30		48		97		75		112		542		904
5 and 6	—		—		—		3		4		28		35
7	—		—		—		—		—		—		—
Total	$	30	$	48	$	97	$	78	$	138	$	606	$	997

December 31, 2020
1			$	—	$	—	$	—	$	22	$	37	$	59
2 to 4			46		96		91		124		595		952
5 and 6			—		—		3		4		29		36
7			—		—		—		—		—		—
Total			$	46	$	96	$	94	$	150	$	661	$	1,047

Net Investment Income

Sources of net investment income for the three months ended March 31, 2021 and 2020 were as follows:


	Three Months Ended March 31,
In millions	2021		2020
Debt securities	$	157	$	144
Mortgage loans	15		15
Other investments	86		47
Gross investment income	258		206
Investment expenses	(8)		(8)
Net investment income (excluding net realized capital gains or losses)	250		198
Net realized capital gains (losses) (1)	47		(36)
Net investment income (2)	$	297	$	162

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(1)Net realized capital gains are net of yield-related impairment losses on debt securities of $30 million in the three months ended March 31, 2021. There were no credit-related losses on debt securities in the three months ended March 31, 2021. Net realized capital losses include credit-related and yield-related impairment losses on debt securities of $45 million and $41 million, respectively, in the three months ended March 31, 2020.

(2)Net investment income includes $9 million and $11 million for the three months ended March 31, 2021 and 2020, respectively, related to investments supporting experience-rated products.

Excluding amounts related to experience-rated products, proceeds from the sale of available-for-sale debt securities and the related gross realized capital gains and losses for the three months ended March 31, 2021 and 2020 were as follows:


	Three Months Ended March 31,
In millions	2021		2020
Proceeds from sales	$	1,348	$	723
Gross realized capital gains	22		20
Gross realized capital losses	9		35