The components of fair value and amortized cost for fixed maturities classified as AFS on the 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 September 30, 2022 and December 31, 2021 was $24 million and $20 million. There was no accrued interest written off for AFS fixed maturities for the three and nine months ended September 30, 2022 and 2021.


	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
September 30, 2022:
Fixed Maturities:
Corporate (1)	$	2,492	$	—	$	—	$	409	$	2,083
U.S. Treasury, government and agency	15		—		—		1		14
States and political subdivisions	41		—		—		9		32
Foreign governments	—		—		—		—		—

Asset-backed (2)	54		—		—		4		50
Commercial mortgage-backed	81		—		—		16		65

Total at September 30, 2022	$	2,683	$	—	$	—	$	439	$	2,244

December 31, 2021:
Fixed Maturities:
Corporate (1)	$	2,237	$	—	$	135	$	10	$	2,362
U.S. Treasury, government and agency	66		—		1		1		66
States and political subdivisions	31		—		3		—		34


Asset-backed (2)	30		—		—		—		30
Commercial mortgage-backed	80		—		—		—		80

Total at December 31, 2021	$	2,444	$	—	$	139	$	11	$	2,572

The contractual maturities of AFS fixed maturities as of September 30, 2022 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)
September 30, 2022:
Contractual maturities:
Due in one year or less	$	34	$	34
Due in years two through five	627		598
Due in years six through ten	908		772
Due after ten years	979		725
Subtotal	2,548		2,129

Asset-backed	54		50
Commercial mortgage-backed	81		65

Total at September 30, 2022	$	2,683	$	2,244


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Proceeds from sales	$	—	$	71	$	62	$	100
Gross gains on sales	$	—	$	—	$	—	$	—
Gross losses on sales	$	—	$	(1)	$	4	$	(1)

Net change in Allowance for Credit and Intent to Sell losses	$	—	$	—	$	—	$	—


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Balance, beginning of period	$	—	$	2	$	2	$	2
Previously recognized impairments on securities that matured, paid, prepaid or sold	—		—		(2)		—
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	—		—		—
Additional credit losses this period on securities previously impaired	—		—		—		—
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 September 30,	$	—	$	2	$	—	$	2


	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, July 1, 2022	$	(293)	$	119	$	(80)	$	53	$	(201)
Net investment gains (losses) arising during the period	(146)		—		—		—		(146)
Reclassification adjustment:
Included in net income (loss)	—		—		—		—		—

Other	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		56		(45)		29		40
Net unrealized investment gains (losses) excluding credit losses	(439)		175		(125)		82		(307)
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, September 30, 2022	$	(439)	$	175	$	(125)	$	82	$	(307)

Balance, July 1, 2021	$	171	$	(82)	$	39	$	(27)	$	101
Net investment gains (losses) arising during the period	(19)		—		—		—		(19)
Reclassification adjustment:	—		—		—		—		—
Included in net income (loss)	1		—		—		—		1

Other (1)	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		21		(10)		3		14
Net unrealized investment gains (losses) excluding credit losses	153		(61)		29		(24)		97
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, September 30, 2021	$	153	$	(61)	$	29	$	(24)	$	97


	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, 2022	$	128	$	(46)	$	28	$	(24)	$	86
Net investment gains (losses) arising during the period	(570)		—		—		—		(570)
Reclassification adjustment:
Included in net income (loss)	3		—		—		—		3

Other	—		—		—		—		—
Impact of net unrealized investment gains (losses)	—		221		(153)		106		174
Net unrealized investment gains (losses) excluding credit losses	(439)		175		(125)		82		(307)
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, September 30, 2022	$	(439)	$	175	$	(125)	$	82	$	(307)


	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	$	246	$	(111)	$	37	$	(37)	$	135
Net investment gains (losses) arising during the period	(93)		—		—		—		(93)
Reclassification adjustment:
Included in net income (loss)	3		—		—		—		3

Other	(3)		—		—		—		(3)
Impact of net unrealized investment gains (losses)	—		50		(8)		13		55
Net unrealized investment gains (losses) excluding credit losses	153		(61)		29		(24)		97
Net unrealized investment gains (losses) with credit losses	—		—		—		—		—
Balance, September 30, 2021	$	153	$	(61)	$	29	$	(24)	$	97

The following tables disclose the fair values and gross unrealized losses of the 861 issues as of September 30, 2022 and the 119 issues as of December 31, 2021 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:


	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)
September 30, 2022:
Fixed Maturities:
Corporate	$	1,854	$	320	$	212	$	89	$	2,066	$	409
U.S. Treasury, government and agency	14		1		—		—		14		1
States and political subdivisions	30		8		1		1		31		9


Asset-backed	49		4		1		—		50		4
Commercial mortgage-backed	61		15		4		1		65		16

Total at September 30, 2022	$	2,008	$	348	$	218	$	91	$	2,226	$	439

December 31, 2021:
Fixed Maturities:
Corporate	$	243	$	4	$	111	$	6	$	354	$	10
U.S. Treasury, government and agency	45		1		2		—		47		1
States and political subdivisions	—		—		—		—		—		—


Asset-backed	—		—		—		—		—		—
Commercial mortgage-backed	—		—		—		—		—		—

Total at December 31, 2021	$	288	$	5	$	113	$	6	$	401	$	11

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. 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 1.1% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of September 30, 2022 and December 31, 2021 were $24 million and $27 million, respectively, representing 6.2% and 3.8% of the 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 September 30, 2022 and December 31, 2021, respectively, approximately $4 million and $10 million, or 0.1% and 0.4%, of the $2.7 billion and $2.4 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had no gross unrealized losses as of September 30, 2022 and December 31, 2021.

As of September 30, 2022 and December 31, 2021, respectively, the $91 million and $6 million of gross unrealized losses of twelve months or more were concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either September 30, 2022 or December 31, 2021. As of September 30, 2022 and December 31, 2021, 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 September 30, 2022, the Company determined that the unrealized loss was primarily due to increases in interest rates, credit spreads and changes in credit ratings.

The Company held two commercial mortgage loans with a carrying value of $17 million at September 30, 2022 and December 31, 2021. The loans were issued prior to 2017 for apartment complex properties located in the Mid-Atlantic region. The loans were current as of September 30, 2022 and December 31, 2021 with LTV ratios between 0%-50% and DSC ratios greater than 2.0x.

Accrued interest receivable as of September 30, 2022 and December 31, 2021 was $0 million and no accrued interest was written off for the three and nine months ended September 30, 2022 and 2021. The allowance for credit losses was $0 million as of September 30, 2022 and 2021, with a change of $0 million for the periods ended.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period	$	(1)	$	1	$	(4)	$	3
Net investment gains (losses) recognized on securities sold during the period	—		—		—		—
Unrealized and realized gains (losses) on equity securities	$	(1)	$	1	$	(4)	$	3