INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Available-for-Sale Fixed Maturities by Classification

The following tables provide information relating to the Company’s fixed maturities classified as AFS.

AFS Fixed Maturities by Classification

	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate (1)	$	45,578	$	22	$	2,382	$	214	$	47,724
U.S. Treasury, government and agency	13,032		—		2,196		14		15,214
States and political subdivisions	527		—		73		3		597
Foreign governments	1,124		—		42		14		1,152
Residential mortgage-backed (2)	82		—		8		—		90
Asset-backed (3)	5,904		—		20		19		5,905
Commercial mortgage-backed	2,348		—		19		26		2,341
Redeemable preferred stock (4)	41		—		12		—		53
Total at December 31, 2021	$	68,636	$	22	$	4,752	$	290	$	73,076
December 31, 2020:
Fixed Maturities:
Corporate (1)	$	48,501	$	13	$	4,703	$	89	$	53,102
U.S. Treasury, government and agency	12,644		—		3,304		5		15,943
States and political subdivisions	482		—		92		—		574
Foreign governments	1,011		—		98		6		1,103
Residential mortgage-backed (2)	119		—		12		—		131
Asset-backed (3)	3,633		—		28		5		3,656
Commercial mortgage-backed	1,148		—		55		—		1,203
Redeemable preferred stock	598		—		46		3		641
Total at December 31, 2020	$	68,136	$	13	$	8,338	$	108	$	76,353

______________

(1)Corporate fixed maturities include both public and private issues.

(2)Includes publicly traded agency pass-through securities and collateralized obligations.

(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types.

(4) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments).

Contractual Maturities of Available-for-Sale Fixed Maturities

The contractual maturities of AFS fixed maturities as of December 31, 2021 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Contractual Maturities of AFS Fixed Maturities

	Amortized Cost (Less Allowance for Credit Losses)		Fair Value
	(in millions)
December 31, 2021:
Contractual maturities:
Due in one year or less	$	896	$	898
Due in years two through five	13,658		14,164
Due in years six through ten	16,486		17,302
Due after ten years	29,199		32,323
Subtotal	60,239		64,687
Residential mortgage-backed	82		90
Asset-backed	5,904		5,905
Commercial mortgage-backed	2,348		2,341
Redeemable preferred stock	41		53
Total at December 31, 2021	$	68,614	$	73,076

Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019:

Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities

		Year Ended December 31,
		2021		2020		2019
	(in millions)
Proceeds from sales		$	26,678	$	12,670	$	8,702
Gross gains on sales		$	1,141	$	854	$	229
Gross losses on sales		$	(189)	$	(34)	$	(28)
Credit losses		$	(16)	$	(13)	$	—

AFS Fixed Maturities - Credit Loss Impairments

The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.

AFS Fixed Maturities - Credit Loss Impairments

	Year Ended December 31,
		2021		2020		2019
	(in millions)
Balance, beginning of period		$	28	$	15	$	46
Previously recognized impairments on securities that matured, paid, prepaid or sold		(2)		—		(31)
Recognized impairments on securities impaired to fair value this period (1)		—		—		—
Credit losses recognized this period on securities for which credit losses were not previously recognized		9		6		—
Additional credit losses this period on securities previously impaired		7		7		—
Increases due to passage of time on previously recorded credit losses		—		—		—

Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)	—		—		—
Balance at December 31,	$	42	$	28	$	15

______________

(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.

Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities

The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Net Unrealized Gains (Losses) on Investments		DAC		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
	(in millions)
Balance, January 1, 2021	$	8,230	$	(466)	$	(1,814)	$	(1,250)	$	4,700
Net investment gains (losses) arising during the period	(2,902)		—		—		—		(2,902)
Reclassification adjustment:									—
Included in net income (loss)	(835)		—		—		—		(835)
Excluded from net income (loss)	—		—		—		—		—
Other	(31)		—		—		—		(31)
Impact of net unrealized investment gains (losses)	—		182		837		577		1,596
Net unrealized investment gains (losses) excluding credit losses	4,462		(284)		(977)		(673)		2,528
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, December 31, 2021	$	4,462	$	(284)	$	(977)	$	(673)	$	2,528
Balance, January 1, 2020	$	3,084	$	(826)	$	(192)	$	(433)	$	1,633
Net investment gains (losses) arising during the period	5,953		—		—		—		5,953
Reclassification adjustment:									—
Included in Net income (loss)	(802)		—		—		—		(802)
Excluded from Net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		360		(1,623)		(818)		(2,081)
Net unrealized investment gains (losses) excluding credit losses	8,235		(466)		(1,815)		(1,251)		4,703
Net unrealized investment gains (losses) with credit losses	(5)		—		1		1		(3)
Balance, December 31, 2020	$	8,230	$	(466)	$	(1,814)	$	(1,250)	$	4,700
Balance, January 1, 2019	$	(577)	$	37	$	(69)	$	125	$	(484)
Net investment gains (losses) arising during the period	3,872		—		—		—		3,872
Reclassification adjustment:
Included in Net income (loss)	(211)		—		—		—		(211)
Excluded from Net income (loss)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		(863)		(123)		(558)		(1,544)
Net unrealized investment gains (losses) excluding credit losses	3,084		(826)		(192)		(433)		1,633
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, December 31, 2019	$	3,084	$	(826)	$	(192)	$	(433)	$	1,633

_____________

(1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments).

Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities

The following tables disclose the fair values and gross unrealized losses of the 1,896 issues as of December 31, 2021 and the 537 issues as of December 31, 2020 that are not deemed to have credit losses, aggregated by investment

category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:

AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded

	Less Than 12 Months				12 Months or Longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
	(in millions)
December 31, 2021
Fixed Maturities:
Corporate	$	9,497	$	150	$	1,301	$	62	$	10,798	$	212
U.S. Treasury, government and agency	947		10		103		4		1,050		14
States and political subdivisions	112		2		11		1		123		3
Foreign governments	349		6		92		8		441		14
Asset-backed	3,843		19		38		—		3,881		19
Commercial mortgage-backed	1,515		22		96		4		1,611		26
Total at December 31, 2021	$	16,263	$	209	$	1,641	$	79	$	17,904	$	288
December 31, 2020:
Fixed Maturities:
Corporate	$	2,773	$	52	$	332	$	32	$	3,105	$	84
U.S. Treasury, government and agency	881		5		—		—		881		5
Foreign governments	153		2		20		4		173		6
Asset-backed	809		4		76		1		885		5
Redeemable preferred stock	53		1		11		2		64		3
Total at December 31, 2020	$	4,669	$	64	$	439	$	39	$	5,108	$	103

Financing Receivable, Allowance for Credit Loss on Mortgage Loans

The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the years ended December 31, 2021 and 2020 were as follows:

	Year Ended December 31,
	2021		2020
	(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period	$	77	$	33
Current-period provision for expected credit losses	(20)		44
Write-offs charged against the allowance	—		—
Recoveries of amounts previously written off	—		—
Net change in allowance	(20)		44
Balance, end of period	$	57	$	77
Agricultural mortgages:
Balance, beginning of period	$	4	$	3
Current-period provision for expected credit losses	1		1
Write-offs charged against the allowance	—		—
Recoveries of amounts previously written off	—		—
Net change in allowance	1		1
Balance, end of period	$	5	$	4
Total allowance for credit losses	$	62	$	81

Financing Receivable Credit Quality Indicators

The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of December 31, 2021 and December 31, 2020.

LTV Ratios (1)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	184	$	293	$	992	$	1,469
50% - 70%	1,967		1,334		407		619		491		2,533		7,351
70% - 90%	190		236		412		415		276		972		2,501
90% plus	—		—		—		35		5		73		113
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,570	$	11,434
Agricultural:
0% - 50%	$	180	$	212	$	128	$	129	$	119	$	738	$	1,506
50% - 70%	200		268		102		126		87		338		1,121
70% - 90%	—		—		—		—		—		17		17
90% plus	—		—		—		—		—		—		—
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:
0% - 50%	$	180	$	212	$	128	$	313	$	412	$	1,730	$	2,975
50% - 70%	2,167		1,602		509		745		578		2,871		8,472
70% - 90%	190		236		412		415		276		989		2,518
90% plus	—		—		—		35		5		73		113
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,663	$	14,078

Debt Service Coverage Ratios (2)

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,143	$	1,243	$	210	$	772	$	485	$	2,218	$	6,071
1.8x to 2.0x	185		135		250		46		161		372		1,149
1.5x to 1.8x	275		97		284		211		166		919		1,952
1.2x to 1.5x	264		95		75		101		253		701		1,489
1.0x to 1.2x	290		—		—		88		—		287		665
Less than 1.0x	—		—		—		35		—		73		108
Total commercial	$	2,157	$	1,570	$	819	$	1,253	$	1,065	$	4,570	$	11,434
Agricultural:
Greater than 2.0x	$	49	$	64	$	25	$	22	$	24	$	210	$	394
1.8x to 2.0x	52		37		25		14		14		70		212
1.5x to 1.8x	43		113		28		22		41		193		440
1.2x to 1.5x	161		179		112		116		72		355		995
1.0x to 1.2x	75		83		31		77		54		226		546
Less than 1.0x	—		4		9		4		1		39		57
Total agricultural	$	380	$	480	$	230	$	255	$	206	$	1,093	$	2,644
Total mortgage loans:

	December 31, 2021
	Amortized Cost Basis by Origination Year
	2021		2020		2019		2018		2017		Prior		Total
	(in millions)
Greater than 2.0x	$	1,192	$	1,307	$	235	$	794	$	509	$	2,428	$	6,465
1.8x to 2.0x	237		172		275		60		175		442		1,361
1.5x to 1.8x	318		210		312		233		207		1,112		2,392
1.2x to 1.5x	425		274		187		217		325		1,056		2,484
1.0x to 1.2x	365		83		31		165		54		513		1,211
Less than 1.0x	—		4		9		39		1		112		165
Total mortgage loans	$	2,537	$	2,050	$	1,049	$	1,508	$	1,271	$	5,663	$	14,078

_____________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

LTV Ratios (1)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
0% - 50%	$	—	$	—	$	—	$	324	$	170	$	505	$	999
50% - 70%	1,294		357		803		656		2,190		1,697		6,997
70% - 90%	321		457		452		219		203		538		2,190
90% plus	—		—		12		5		—		288		305
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,563	$	3,028	$	10,491
Agricultural:
0% - 50%	$	218	$	135	$	169	$	157	$	236	$	652	$	1,567
50% - 70%	277		129		161		102		124		351		1,144
70% - 90%	—		—		3		—		—		18		21
90% plus	—		—		—		—		—		—		—
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
0% - 50%	$	218	$	135	$	169	$	481	$	406	$	1,157	$	2,566
50% - 70%	1,571		486		964		758		2,314		2,048		8,141
70% - 90%	321		457		455		219		203		556		2,211
90% plus	—		—		12		5		—		288		305
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,923	$	4,049	$	13,223

Debt Service Coverage Ratios (2)

	December 31, 2020
	Amortized Cost Basis by Origination Year
	2020		2019		2018		2017		2016		Prior		Total
	(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x	$	1,230	$	492	$	772	$	268	$	1,942	$	1,230	$	5,934
1.8x to 2.0x	227		83		118		378		184		329		1,319
1.5x to 1.8x	98		138		187		479		437		616		1,955
1.2x to 1.5x	60		57		154		79		—		658		1,008
1.0x to 1.2x	—		44		—		—		—		123		167
Less than 1.0x	—		—		36		—		—		72		108
Total commercial	$	1,615	$	814	$	1,267	$	1,204	$	2,563	$	3,028	$	10,491
Agricultural:
Greater than 2.0x	$	67	$	26	$	36	$	38	$	71	$	167	$	405
1.8x to 2.0x	38		35		14		15		20		82		204
1.5x to 1.8x	117		38		41		45		52		209		502
1.2x to 1.5x	183		120		141		90		142		313		989
1.0x to 1.2x	86		35		93		70		57		233		574
Less than 1.0x	4		10		8		1		18		17		58
Total agricultural	$	495	$	264	$	333	$	259	$	360	$	1,021	$	2,732
Total mortgage loans:
Greater than 2.0x	$	1,297	$	518	$	808	$	306	$	2,013	$	1,397	$	6,339
1.8x to 2.0x	265		118		132		393		204		411		1,523
1.5x to 1.8x	215		176		228		524		489		825		2,457
1.2x to 1.5x	243		177		295		169		142		971		1,997
1.0x to 1.2x	86		79		93		70		57		356		741
Less than 1.0x	4		10		44		1		18		89		166
Total mortgage loans	$	2,110	$	1,078	$	1,600	$	1,463	$	2,923	$	4,049	$	13,223

_____________

(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.

(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

Age Analysis Of Past Due Mortgage Loans

The following table provides information relating to the aging analysis of past-due mortgage loans as of December 31, 2021 and 2020, respectively:

Age Analysis of Past Due Mortgage Loans (1)

	Accruing Loans												Non-accruing Loans		Total Loans		Non-accruing Loans with No Allowance		Interest Income on Non-accruing Loans
	Past Due								Current		Total
	30-59 Days		60-89 Days		90 Days or  More		Total
	(in millions)
December 31, 2021:
Mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	11,434	$	11,434	$	—	$	11,434	$	—	$	—
Agricultural	1		1		25		27		2,601		2,628		16		2,644		—		—
Total	$	1	$	1	$	25	$	27	$	14,035	$	14,062	$	16	$	14,078	$	—	$	—
December 31, 2020:
Mortgage loans:
Commercial	$	162	$	—	$	—	$	162	$	10,329	$	10,491	$	—	$	10,491	$	—	$	—
Agricultural	76		7		29		112		2,620		2,732		—		2,732		—		—
Total	$	238	$	7	$	29	$	274	$	12,949	$	13,223	$	—	$	13,223	$	—	$	—

_______________

(1)Amounts presented at amortized cost basis.

Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities

The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the year ended December 31, 2021.

Unrealized and Realized Gains (Losses) from Equity Securities (1)

	Year Ended December 31,
	2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	9
Net investment gains (losses) recognized on securities sold during the period	(2)
Unrealized and realized gains (losses) on equity securities	$	7

______________     

(1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements – Investments).

The table below shows a breakdown of net investment income (loss) from trading securities during the years ended December 31, 2021, 2020 and 2019:

Net Investment Income (Loss) from Trading Securities

		Year Ended December 31,
		2021		2020		2019
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period		$	(264)	$	96	$	422
Net investment gains (losses) recognized on securities sold during the period		206		10		7
Unrealized and realized gains (losses) on trading securities		(58)		106		429
Interest and dividend income from trading securities		92		206		283
Net investment income (loss) from trading securities		$	34	$	312	$	712

Net Investment Income (Loss)

The following table breaks out net investment income (loss) by asset category:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	2,293	$	2,193	$	1,902
Mortgage loans on real estate	547		516		540
Other equity investments	525		79		72
Policy loans	209		198		198
Trading securities	34		312		712
Other investment income	47		49		18
Gross investment income (loss)	3,655		3,347		3,442
Investment expenses	(172)		(139)		(144)
Net investment income (loss)	$	3,483	$	3,208	$	3,298

Investment Gains (Losses), Net

Investment gains (losses), net including changes in the valuation allowances and credit losses are as follows:

	Year Ended December 31,
	2021		2020		2019
	(in millions)
Fixed maturities	$	834	$	801	$	203
Mortgage loans on real estate	20		(45)		(1)
Other equity investments (1)	—		30		3
Other	(1)		1		1
Investment gains (losses), net	$	853	$	787	$	206

(1) Investment gains (losses), net of Other equity investments includes Real Estate Held for production during years ended December 31, 2020 and December 31, 2019.