INVESTMENTS

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS

INVESTMENTS

Fixed Maturities AFS

The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within other assets. Accrued interest receivable on AFS fixed maturities as of March 31, 2024 and December 31, 2023 was $535 million and $528 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three months ended March 31, 2024 and 2023.

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)
March 31, 2024
Fixed Maturities:
Corporate (1)	$	41,802	$	4	$	187	$	5,413	$	36,572
U.S. Treasury, government and agency	5,661		—		1		1,259		4,403
States and political subdivisions	496		—		5		67		434
Foreign governments	662		—		1		121		542
Residential mortgage-backed (2)	1,527		—		2		138		1,391
Asset-backed (3)	8,066		—		27		81		8,012
Commercial mortgage-backed	3,389		—		1		422		2,968
Redeemable preferred stock	56		—		3		—		59
Total at March 31, 2024	$	61,659	$	4	$	227	$	7,501	$	54,381
December 31, 2023:
Fixed Maturities:
Corporate (1)	$	42,014	$	4	$	217	$	4,960	$	37,267
U.S. Treasury, government and agency	5,639		—		2		1,102		4,539
States and political subdivisions	525		—		9		64		470
Foreign governments	689		—		2		110		581
Residential mortgage-backed (2)	1,469		—		3		128		1,344
Asset-backed (3)	8,092		—		20		107		8,005
Commercial mortgage-backed	3,400		—		1		501		2,900
Redeemable preferred stock	56		—		3		—		59
Total at December 31, 2023	$	61,884	$	4	$	257	$	6,972	$	55,165

______________

(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.

The contractual maturities of AFS fixed maturities as of March 31, 2024 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)
March 31, 2024:
Contractual maturities:
Due in one year or less	$	1,451	$	1,436
Due in years two through five	12,209		11,734
Due in years six through ten	12,362		11,274
Due after ten years	22,595		17,507
Subtotal	48,617		41,951
Residential mortgage-backed	1,527		1,391
Asset-backed	8,066		8,012
Commercial mortgage-backed	3,389		2,968
Redeemable preferred stock	56		59
Total at March 31, 2024	$	61,655	$	54,381

The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities:

Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

	Three Months Ended March 31,
	2024		2023
	(in millions)
Proceeds from sales	$	444	$	728
Gross gains on sales	$	—	$	2
Gross losses on sales	$	(24)	$	(18)
Net (increase) decrease in Allowance for Credit and Intent to Sell losses	$	(2)	$	(54)

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 and Intent to Sell Loss Impairments

	Three Months Ended March 31,
	2024		2023
	(in millions)
Balance, beginning of period	$	48	$	36
Previously recognized impairments on securities that matured, paid, prepaid or sold	(4)		(3)
Recognized impairments on securities impaired to fair value this period (1) (2)	—		50
Credit losses recognized this period on securities for which credit losses were not previously recognized	3		3
Additional credit losses this period on securities previously impaired	1		1
Balance, end of period	$	48	$	87

______________

(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.

(2)Amounts reflected for the three months ended March 31, 2023 represent AFS fixed maturities in an unrealized loss position, which the Company sold in anticipation of the Company’s ordinary dividend to Holdings.

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

Net Unrealized Gains (Losses) on AFS Fixed Maturities

	Three Months Ended March 31, 2024
	Net Unrealized Gains (Losses) on Investments		Policyholders’ Liabilities		Deferred Income Tax Asset (Liability) (1)		AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (1)
	(in millions)
Balance, beginning of period	$	(6,715)	$	13	$	227	$	(6,475)
Net investment gains (losses) arising during the period	(581)		—		—		(581)
Reclassification adjustment:
Included in net income (loss)	26		—		—		26
Other	—		—		—		—
Impact of net unrealized investment gains (losses)	—		4		116		120
Net unrealized investment gains (losses) excluding credit losses	(7,270)		17		343		(6,910)
Net unrealized investment gains (losses) with credit losses	(4)		—		1		(3)
Balance, end of period	$	(7,274)	$	17	$	344	$	(6,913)
	Three Months Ended March 31, 2023
Balance, beginning of period	$	(9,116)	$	21	$	421	$	(8,674)
Net investment gains (losses) arising during the period	1,444		—		—		1,444
Reclassification adjustment:
Included in net income (loss)	70		—		—		70
Other	—		—		317		317
Impact of net unrealized investment gains (losses)	—		(3)		(317)		(320)
Net unrealized investment gains (losses) excluding credit losses	(7,602)		18		421		(7,163)
Net unrealized investment gains (losses) with credit losses	(7)		—		1		(6)
Balance, end of period	$	(7,609)	$	18	$	422	$	(7,169)

_____________

(1)Certain balances were revised from previously filed financial statements.

The following tables disclose the fair values and gross unrealized losses of the 3,900 issues as of March 31, 2024 and the 3,986 issues as of December 31, 2023 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)
March 31, 2024
Fixed Maturities:
Corporate	$	2,916	$	141	$	28,351	$	5,267	$	31,267	$	5,408
U.S. Treasury, government and agency	101		3		4,236		1,256		4,337		1,259
States and political subdivisions	10		—		250		67		260		67
Foreign governments	31		1		483		120		514		121
Residential mortgage-backed	182		1		986		137		1,168		138
Asset-backed	1,355		3		1,716		78		3,071		81
Commercial mortgage-backed	47		8		2,830		414		2,877		422
Total at March 31, 2024	$	4,642	$	157	$	38,852	$	7,339	$	43,494	$	7,496
December 31, 2023:
Fixed Maturities:
Corporate	$	1,693	$	119	$	29,617	$	4,839	$	31,310	$	4,958
U.S. Treasury, government and agency	111		2		4,361		1,100		4,472		1,102
States and political subdivisions	10		—		244		64		254		64
Foreign governments	8		1		514		109		522		110
Residential mortgage-backed	74		1		1,030		127		1,104		128
Asset-backed	238		—		5,499		107		5,737		107
Commercial mortgage-backed	62		11		2,796		490		2,858		501
Total at December 31, 2023	$	2,196	$	134	$	44,061	$	6,836	$	46,257	$	6,970

The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.9% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of March 31, 2024 and December 31, 2023 were $317 million and $360 million, respectively, representing 15.5% and 21.9% of the total consolidated equity of the Company.

Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of March 31, 2024 and December 31, 2023, respectively, approximately $2.9 billion and $2.5 billion, or 4.6% and 4.1%, of the $61.7 billion and $61.9 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $127 million and $102 million as of March 31, 2024 and December 31, 2023, respectively.

As of March 31, 2024 and December 31, 2023, respectively, the $7.3 billion and $6.8 billion of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to the allowance for credit losses for these securities was not warranted at either March 31, 2024 or December 31, 2023. As of March 31, 2024 and December 31, 2023, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.

Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of March 31, 2024, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.

Securities Lending

Beginning in 2023, the Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of March 31, 2024 and December 31, 2023, the estimated fair value of loaned securities was $123 million and $91 million. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as cash collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. As of March 31, 2024 and December 31, 2023, cash collateral received in the amount of $126 million and $93 million was invested by the agent bank. A securities lending payable for the overnight and continuous loans is included in other liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income and were not material for the March 31, 2024 and December 31, 2023.

Mortgage Loans on Real Estate

In September 2023, the Company began investing in residential mortgage loans. Accrued interest receivable on commercial, agricultural and residential mortgage loans as of March 31, 2024 and December 31, 2023 was $82 million and $81 million, respectively. There was no accrued interest written off for commercial, agricultural and residential mortgage loans for the three months ended March 31, 2024 and 2023.

As of March 31, 2024 and December 31, 2023, the Company had one commercial mortgage loan for which foreclosure was probable. That loan has an amortized cost of $108 million and an associated allowance of $54 million.

Allowance for Credit Losses on Mortgage Loans

The change in the allowance for credit losses for commercial, agricultural and residential mortgage loans were as follows:

	Three Months Ended March 31,
	2024		2023
	(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period	$	270	$	123
Current-period provision for expected credit losses	14		10
Write-offs charged against the allowance	—		—
Recoveries of amounts previously written off	—		—
Net change in allowance	14		10
Balance, end of period	$	284	$	133
Agricultural mortgages:
Balance, beginning of period	$	6	$	6
Current-period provision for expected credit losses	—		—
Write-offs charged against the allowance	—		—
Recoveries of amounts previously written off	—		—
Net change in allowance	—		—
Balance, end of period	$	6	$	6

	Three Months Ended March 31,
	2024		2023
	(in millions)
Residential mortgages:
Balance, beginning of period	$	1	$	—
Current-period provision for expected credit losses	2		—
Write-offs charged against the allowance	—		—
Recoveries of amounts previously written off	—		—
Net change in allowance	2		—
Balance, end of period	$	3	$	—
Total allowance for credit losses	$	293	$	139

The change in the allowance for credit losses is attributable to:

•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization and

•changes in credit quality and economic assumptions.

Credit Quality Information

The Company’s commercial and agricultural mortgage loans segregated by risk rating exposure were as follows:

Loan to Value (“LTV”) Ratios (1) (3)

	March 31, 2024
	Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%	$	—	$	250	$	155	$	129	$	35	$	1,515	$	—	$	—	$	2,084
50% - 70%	73		699		1,871		670		749		2,522		517		96		7,197
70% - 90%	—		240		1,197		1,144		576		1,657		62		36		4,912
90% plus	—		—		—		158		—		949		—		—		1,107
Total commercial	$	73	$	1,189	$	3,223	$	2,101	$	1,360	$	6,643	$	579	$	132	$	15,300
Agricultural:
0% - 50%	$	14	$	102	$	160	$	190	$	242	$	910	$	—	$	—	$	1,618
50% - 70%	40		60		144		150		180		334		—		—		908
70% - 90%	—		—		—		—		—		16		—		—		16
90% plus	—		—		—		—		—		—		—		—		—
Total agricultural	$	54	$	162	$	304	$	340	$	422	$	1,260	$	—	$	—	$	2,542

	March 31, 2024
	Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Total commercial and agricultural mortgage loans:
0% - 50%	$	14	$	352	$	315	$	319	$	277	$	2,425	$	—	$	—	$	3,702
50% - 70%	113		759		2,015		820		929		2,856		517		96		8,105
70% - 90%	—		240		1,197		1,144		576		1,673		62		36		4,928
90% plus	—		—		—		158		—		949		—		—		1,107
Total commercial and agricultural mortgage loans	$	127	$	1,351	$	3,527	$	2,441	$	1,782	$	7,903	$	579	$	132	$	17,842

Debt Service Coverage (“DSC”) Ratios (2) (3)

	March 31, 2024
	Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x	$	—	$	175	$	693	$	1,190	$	1,133	$	3,556	$	—	$	—	$	6,747
1.8x to 2.0x	—		75		—		208		167		637		318		96		1,501
1.5x to 1.8x	—		164		911		143		—		1,016		100		—		2,334
1.2x to 1.5x	—		391		981		427		—		912		79		—		2,790
1.0x to 1.2x	73		376		281		67		—		464		82		36		1,379
Less than 1.0x	—		8		357		66		60		58		—		—		549
Total commercial	$	73	$	1,189	$	3,223	$	2,101	$	1,360	$	6,643	$	579	$	132	$	15,300
Agricultural:
Greater than 2.0x	$	8	$	7	$	50	$	34	$	59	$	196	$	—	$	—	$	354
1.8x to 2.0x	5		18		16		56		29		83		—		—		207
1.5x to 1.8x	2		12		49		31		110		209		—		—		413
1.2x to 1.5x	35		46		110		148		159		433		—		—		931
1.0x to 1.2x	3		47		55		67		57		307		—		—		536
Less than 1.0x	1		32		24		4		8		32		—		—		101
Total agricultural	$	54	$	162	$	304	$	340	$	422	$	1,260	$	—	$	—	$	2,542

	March 31, 2024
	Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Total commercial and agricultural mortgage loans:
Greater than 2.0x	$	8	$	182	$	743	$	1,224	$	1,192	$	3,752	$	—	$	—	$	7,101
1.8x to 2.0x	5		93		16		264		196		720		318		96		1,708
1.5x to 1.8x	2		176		960		174		110		1,225		100		—		2,747
1.2x to 1.5x	35		437		1,091		575		159		1,345		79		—		3,721
1.0x to 1.2x	76		423		336		134		57		771		82		36		1,915
Less than 1.0x	1		40		381		70		68		90		—		—		650
Total commercial and agricultural mortgage loans	$	127	$	1,351	$	3,527	$	2,441	$	1,782	$	7,903	$	579	$	132	$	17,842

_____________

(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.

(3)Residential mortgage loans are excluded from the above tables.

LTV Ratios (1) (3)

	December 31, 2023
	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%	$	191	$	164	$	129	$	35	$	—	$	1,540	$	—	$	—	$	2,059
50% - 70%	703		1,916		671		750		299		2,319		463		96		7,217
70% - 90%	308		1,197		1,236		523		245		1,384		37		35		4,965
90% plus	—		—		66		54		92		858		—		—		1,070
Total commercial	$	1,202	$	3,277	$	2,102	$	1,362	$	636	$	6,101	$	500	$	131	$	15,311
Agricultural:
0% - 50%	$	102	$	162	$	191	$	235	$	132	$	802	$	—	$	—	$	1,624
50% - 70%	60		146		152		201		58		288		—		—		905
70% - 90%	—		—		—		—		—		16		—		—		16
90% plus	—		—		—		—		—		—		—		—		—
Total agricultural	$	162	$	308	$	343	$	436	$	190	$	1,106	$	—	$	—	$	2,545

	December 31, 2023
	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Total commercial and agricultural mortgage loans:
0% - 50%	$	293	$	326	$	320	$	270	$	132	$	2,342	$	—	$	—	$	3,683
50% - 70%	763		2,062		823		951		357		2,607		463		96		8,122
70% - 90%	308		1,197		1,236		523		245		1,400		37		35		4,981
90% plus	—		—		66		54		92		858		—		—		1,070
Total commercial and agricultural mortgage loans	$	1,364	$	3,585	$	2,445	$	1,798	$	826	$	7,207	$	500	$	131	$	17,856

DSC Ratios (2) (3)

	December 31, 2023
	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x	$	175	$	693	$	1,125	$	1,135	$	249	$	3,256	$	—	$	—	$	6,633
1.8x to 2.0x	—		—		182		167		171		662		383		96		1,661
1.5x to 1.8x	80		1,060		234		—		162		924		—		—		2,460
1.2x to 1.5x	469		687		457		—		11		838		41		—		2,503
1.0x to 1.2x	470		668		38		—		43		317		76		35		1,647
Less than 1.0x	8		169		66		60		—		104		—		—		407
Total commercial	$	1,202	$	3,277	$	2,102	$	1,362	$	636	$	6,101	$	500	$	131	$	15,311
Agricultural:
Greater than 2.0x	$	7	$	50	$	36	$	59	$	20	$	179	$	—	$	—	$	351
1.8x to 2.0x	18		16		56		33		23		61		—		—		207
1.5x to 1.8x	12		50		31		109		17		193		—		—		412
1.2x to 1.5x	46		111		148		170		98		365		—		—		938
1.0x to 1.2x	47		57		68		57		26		284		—		—		539
Less than 1.0x	32		24		4		8		6		24		—		—		98
Total agricultural	$	162	$	308	$	343	$	436	$	190	$	1,106	$	—	$	—	$	2,545

	December 31, 2023
	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total
	(in millions)
Total commercial and agricultural mortgage loans:
Greater than 2.0x	$	182	$	743	$	1,161	$	1,194	$	269	$	3,435	$	—	$	—	$	6,984
1.8x to 2.0x	18		16		238		200		194		723		383		96		1,868
1.5x to 1.8x	92		1,110		265		109		179		1,117		—		—		2,872
1.2x to 1.5x	515		798		605		170		109		1,203		41		—		3,441
1.0x to 1.2x	517		725		106		57		69		601		76		35		2,186
Less than 1.0x	40		193		70		68		6		128		—		—		505
Total commercial and agricultural mortgage loans	$	1,364	$	3,585	$	2,445	$	1,798	$	826	$	7,207	$	500	$	131	$	17,856

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(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.

(3)Residential mortgage loans are excluded from the above tables.

The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows:

	March 31, 2024
	Amortized Cost Basis by Origination Year
	2024		2023		2022		2021		2020		Prior		Total
	(in millions)
Performance indicators:
Performing	$	—	$	277	$	120	$	74	$	2	$	2	$	475
Nonperforming	—		—		—		—		—		—		—
Total	$	—	$	277	$	120	$	74	$	2	$	2	$	475

	December 31, 2023
	Amortized Cost Basis by Origination Year
	2023		2022		2021		2020		2019		Prior		Total
	(in millions)
Performance indicators:
Performing	$	98	$	121	$	74	$	2	$	1	$	2	$	298
Nonperforming	—		—		—		—		—		—		—
Total	$	98	$	121	$	74	$	2	$	1	$	2	$	298

Past-Due and Nonaccrual Mortgage Loan Status

The aging analysis of past-due mortgage loans were as follows:

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)
March 31, 2024:
Mortgage loans:
Commercial	$	—	$	—	$	—	$	—	$	15,066	$	15,066	$	234	$	15,300	$	—	$	—
Agricultural	1		5		54		60		2,463		2,523		19		2,542		—		—
Residential	—		—		—		—		475		475		—		475		—		—
Total	$	1	$	5	$	54	$	60	$	18,004	$	18,064	$	253	$	18,317	$	—	$	—
December 31, 2023:
Mortgage loans:
Commercial	$	32	$	—	$	—	$	32	$	15,045	$	15,077	$	234	$	15,311	$	—	$	7
Agricultural	7		5		40		52		2,474		2,526		19		2,545		—		—
Residential	—		—		—		—		298		298		—		298		—		—
Total	$	39	$	5	$	40	$	84	$	17,817	$	17,901	$	253	$	18,154	$	—	$	7

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(1)Amounts presented at amortized cost basis.

As of March 31, 2024 and December 31, 2023, the amortized cost of problem mortgage loans that had been classified as non-accrual loans were $127 million and $127 million, respectively

Troubled Debt Restructuring

During the year ended December 31, 2023, the Company granted modification of interest rates on four commercial mortgage loans, but not to market terms and required management of excess cash. The loans have an amortized cost of $235 million and $234 million for the period ended March 31, 2024 and December 31, 2023, respectively, which represents 1.5% of total commercial mortgage loans. Two of the four loans also have term extensions of 17 months to 4 years. The impact to Investment income or gains (losses) as a result of these modifications in 2023 was not material to the consolidated financial statements. For the accounting policy pertaining to our TDRs see Note 2 of the Notes to these Consolidated Financial Statements.

There were no TDRs for the three months ended March 31, 2024.

Equity Securities

The breakdown of unrealized and realized gains and (losses) on equity securities was as follows:

Unrealized and Realized Gains (Losses) from Equity Securities

	Three Months Ended March 31,
	2024		2023
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	15	$	(1)
Net investment gains (losses) recognized on securities sold during the period	(1)		—
Unrealized and realized gains (losses) on equity securities	$	14	$	(1)

Trading Securities

As of March 31, 2024 and December 31, 2023, respectively, the fair value of the Company’s trading securities was $275 million and $257 million. As of March 31, 2024 and December 31, 2023, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $52 million and $48 million.

The breakdown of net investment income (loss) from trading securities was as follows:

Net Investment Income (Loss) from Trading Securities

	Three Months Ended March 31,
	2024		2023
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	15	$	13
Net investment gains (losses) recognized on securities sold during the period	—		(1)
Unrealized and realized gains (losses) on trading securities	15		12
Interest and dividend income from trading securities	1		2
Net investment income (loss) from trading securities	$	16	$	14

Net Investment Income

The following tables provide the components of net investment income by investment type:

	Three Months Ended March 31,
	2024						2023
	Excluding Funds Withheld and NI Modco		Funds Withheld and NI Modco		Total		Excluding (1) Funds Withheld and NI Modco		Funds Withheld and NI Modco		Total
	(in millions)
Fixed maturities	$	391	$	272	$	663	$	671	$	—	$	671
Mortgage loans on real estate	142		86		228		177		—		177
Policy loans	44		7		51		48		—		48
Other equity investments	55		8		63		22		—		22
Trading securities	16		—		16		14		—		14
Other investment income	(7)		6		(1)		5		—		5
Gross investment income (loss)	641		379		1,020		937		—		937
Investment expenses	(52)		(34)		(86)		(79)		—		(79)
Net investment income (loss)	$	589	$	345	$	934	$	858	$	—	$	858

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(1)“NI Modco” represents modco arrangement on non-insulated Separate Accounts as part of the Reinsurance Treaty with Equitable America.

Investment Gains (Losses), Net

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

	Three Months Ended March 31,
	2024						2023
	Excluding Funds Withheld and NI Modco		Funds Withheld Assets and NI Modco		Total		Excluding Funds Withheld and NI Modco		Funds Withheld and NI Modco		Total
	(in millions)
Fixed maturities	$	(3)	$	(23)	$	(26)	$	(71)	$	—	$	(71)
Mortgage loans on real estate	(3)		(13)		(16)		(10)		—		(10)
Other equity investments	—		—		—		—		—		—
Other	4		—		4		3		—		3
Investment gains (losses), net	$	(2)	$	(36)	$	(38)	$	(78)	$	—	$	(78)

For the three months ended March 31, 2024 and 2023, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $0 million and $0 million.