Investments (Tables)

12 Months Ended

Dec. 31, 2022

Total investments at December 31, 2022 and 2021 were as follows:


	2022						2021
In millions	Current		Long-term		Total		Current		Long-term		Total
Debt securities available for sale	$	2,718	$	17,562	$	20,280	$	3,009	$	20,231	$	23,240
Mortgage loans	55		989		1,044		58		844		902
Other investments	5		2,562		2,567		50		1,950		2,000
Total investments (1)	$	2,778	$	21,113	$	23,891	$	3,117	$	23,025	$	26,142

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(1)Includes long-term investments of $17 million which have been accounted for as assets held for sale and are included in assets held for sale on the consolidated balance sheet at December 31, 2022. See Note 2 ‘‘Acquisitions, Divestitures and Asset Sales’’ for additional information.

Schedule of Debt Securities Available For Sale

Debt securities available for sale at December 31, 2022 and 2021 were as follows:


In millions	Gross Amortized Cost		Allowance for Credit Losses		Net Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2022
Debt securities:
U.S. government securities	$	2,074	$	—	$	2,074	$	—	$	(182)	$	1,892
States, municipalities and political subdivisions	2,393		—		2,393		8		(129)		2,272
U.S. corporate securities	9,838		(3)		9,835		26		(903)		8,958
Foreign securities	2,780		(1)		2,779		15		(244)		2,550
Residential mortgage-backed securities	845		—		845		1		(89)		757
Commercial mortgage-backed securities	1,172		—		1,172		1		(155)		1,018
Other asset-backed securities	2,940		—		2,940		6		(136)		2,810
Redeemable preferred securities	25		—		25		—		(2)		23
Total debt securities (1)	$	22,067	$	(4)	$	22,063	$	57	$	(1,840)	$	20,280

December 31, 2021
Debt securities:
U.S. government securities	$	2,349	$	—	$	2,349	$	70	$	(3)	$	2,416
States, municipalities and political subdivisions	2,947		—		2,947		148		(4)		3,091
U.S. corporate securities	9,093		—		9,093		682		(40)		9,735
Foreign securities	2,821		—		2,821		196		(24)		2,993
Residential mortgage-backed securities	870		—		870		15		(10)		875
Commercial mortgage-backed securities	1,278		—		1,278		44		(12)		1,310
Other asset-backed securities	2,791		—		2,791		14		(13)		2,792
Redeemable preferred securities	25		—		25		3		—		28
Total debt securities (1)	$	22,174	$	—	$	22,174	$	1,172	$	(106)	$	23,240

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(1)Investment risks associated with the Company’s experience-rated products generally do not impact the Company’s consolidated operating results. At December 31, 2022, debt securities with a fair value of $609 million, gross unrealized capital gains of $3 million and gross unrealized capital losses of

$59 million, and at December 31, 2021, debt securities with a fair value of $864 million, gross unrealized capital gains of $94 million and gross unrealized capital losses of $2 million 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 (loss).

Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at December 31, 2022 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	$	1,315	$	1,305
One year through five years	6,596		6,206
After five years through ten years	4,899		4,401
Greater than ten years	4,296		3,783
Residential mortgage-backed securities	845		757
Commercial mortgage-backed securities	1,172		1,018
Other asset-backed securities	2,940		2,810
Total	$	22,063	$	20,280

Schedule of Debt Securities In An Unrealized Capital Loss Position

Summarized below are the debt securities the Company held at December 31, 2022 and 2021 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
December 31, 2022
Debt securities:
U.S. government securities	519	$	1,620	$	164	35	$	191	$	18	554	$	1,811	$	182
States, municipalities and political subdivisions	859	1,370		95		196	322		34		1,055	1,692		129
U.S. corporate securities	5,193	6,537		622		1,479	1,822		281		6,672	8,359		903
Foreign securities	1,168	1,715		147		403	592		97		1,571	2,307		244
Residential mortgage-backed securities	452	464		39		91	257		50		543	721		89
Commercial mortgage-backed securities	288	611		69		187	381		86		475	992		155
Other asset-backed securities	1,008	1,893		88		391	694		48		1,399	2,587		136
Redeemable preferred securities	13	18		2		2	5		—		15	23		2
Total debt securities	9,500	$	14,228	$	1,226	2,784	$	4,264	$	614	12,284	$	18,492	$	1,840

December 31, 2021
Debt securities:
U.S. government securities	43	$	242	$	2	10	$	40	$	1	53	$	282	$	3
States, municipalities and political subdivisions	233	428		3		13	33		1		246	461		4
U.S. corporate securities	1,610	2,296		31		165	238		9		1,775	2,534		40
Foreign securities	449	747		20		57	91		4		506	838		24
Residential mortgage-backed securities	165	593		9		10	36		1		175	629		10
Commercial mortgage-backed securities	188	462		7		35	112		5		223	574		12
Other asset-backed securities	1,011	2,030		12		26	31		1		1,037	2,061		13
Redeemable preferred securities	1	2		—		1	3		—		2	5		—
Total debt securities	3,700	$	6,800	$	84	317	$	584	$	22	4,017	$	7,384	$	106

The maturity dates for debt securities in an unrealized capital loss position at December 31, 2022 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	$	33	$	—	$	1,161	$	14	$	1,194	$	14
One year through five years	126		5		5,583		398		5,709		403
After five years through ten years	142		17		3,787		494		3,929		511
Greater than ten years	207		31		3,153		501		3,360		532
Residential mortgage-backed securities	11		1		710		88		721		89
Commercial mortgage-backed securities	32		3		960		152		992		155
Other asset-backed securities	17		2		2,570		134		2,587		136
Total	$	568	$	59	$	17,924	$	1,781	$	18,492	$	1,840

Schedule of Activity in Mortgage Loan Portfolio

The Company’s mortgage loans are collateralized by commercial real estate. During the years ended December 31, 2022 and 2021, the Company had the following activity in its mortgage loan portfolio:


In millions	2022		2021
New mortgage loans	$	356	$	262
Mortgage loans fully repaid	178		373
Mortgage loans foreclosed	—		—

At December 31, 2022 scheduled mortgage loan principal repayments were as follows:


In millions
2023	$	55
2024	152
2025	90
2026	168
2027	203
Thereafter	376
Total	$	1,044

Schedule of Mortgage Loan Amortized Cost and Credit Quality Indicator

Based upon the Company’s assessments at December 31, 2022 and 2021, 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	2022		2021		2020		2019		2018		Prior		Total
December 31, 2022
1	$	—	$	—	$	—	$	—	$	—	$	15	$	15
2 to 4	326		247		36		11		52		350		1,022
5 and 6	—		—		—		—		3		4		7
7	—		—		—		—		—		—		—
Total	$	326	$	247	$	36	$	11	$	55	$	369	$	1,044

December 31, 2021
1			$	—	$	—	$	—	$	—	$	28	$	28
2 to 4			255		48		40		72		446		861
5 and 6			—		—		—		3		10		13
7			—		—		—		—		—		—
Total			$	255	$	48	$	40	$	75	$	484	$	902

Schedule of Net Investment Income

Sources of net investment income for the years ended December 31, 2022, 2021 and 2020 were as follows:


In millions	2022		2021		2020
Debt securities	$	702	$	634	$	598
Mortgage loans	51		55		60
Other investments	448		381		123
Gross investment income	1,201		1,070		781
Investment expenses	(43)		(47)		(35)
Net investment income (excluding net realized capital gains or losses)	1,158		1,023		746
Net realized capital gains (losses) (1)	(320)		176		52
Net investment income (2)	$	838	$	1,199	$	798

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(1)Net realized capital losses include credit-related losses on debt securities of $13 million and yield-related impairment losses on debt securities of $143 million in the year ended December 31, 2022. Net realized capital gains are net of yield-related impairment losses on debt securities of $42 million and $49 million for the years ended December 31, 2021 and 2020, respectively. There were no credit-related losses on debt securities in the years ended December 31, 2021 and 2020.

(2)Net investment income includes $35 million, $38 million and $42 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to investments supporting experience-rated products.

Schedule of Proceeds and Related Gross Realized Capital Gains and Losses From the Sale of Debt Securities

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 in the years ended December 31, 2022, 2021 and 2020 were as follows:


In millions	2022		2021		2020
Proceeds from sales	$	4,243	$	3,572	$	3,913
Gross realized capital gains	24		72		80
Gross realized capital losses	177		14		62