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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 $89 million and $78 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 LossesGross
Unrealized
Gains		Gross
Unrealized
Losses
Fair Value
(in millions)
March 31, 2024:
Fixed Maturities:
Corporate (1)$6,281 $— $60 $317 $6,024 
U.S. Treasury, government and agency15 — — 1 14 
States and political subdivisions51 — — 8 43 
Foreign governments49 — 1 1 49 
Residential mortgage-backed
1,112 — 8 8 1,112 
Asset-backed (2)
3,778 — 34 3 3,809 
Commercial mortgage-backed265 — 2 12 255 
Total at March 31, 2024$11,551 $— $105 $350 $11,306 
December 31, 2023:
Fixed Maturities:
Corporate (1)$5,842 $— $96 $276 $5,662 
U.S. Treasury, government and agency15 — — — 15 
States and political subdivisions50 — — 7 43 
Foreign governments31 — 1 1 31 
Residential mortgage-backed961 — 15 4 972 
Asset-backed (2)2,956 — 32 2 2,986 
Commercial mortgage-backed195 — 1 14 182 
Total at December 31, 2023$10,050 $— $145 $304 $9,891 
______________
(1)Corporate fixed maturities include both public and private issues.
(2)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$123 $123 
Due in years two through five1,599 1,587 
Due in years six through ten3,260 3,199 
Due after ten years1,414 1,221 
Subtotal6,396 6,130 
Residential mortgage-backed1,112 1,112 
Asset-backed3,778 3,809 
Commercial mortgage-backed265 255 
Total at March 31, 2024$11,551 $11,306 

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,
 20242023
 (in millions)
Proceeds from sales$— $50 
Gross gains on sales$— $— 
Gross losses on sales$— $(5)

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,
20242023
(in millions)
Balance, beginning of period$— $— 
Previously recognized impairments on securities that matured, paid, prepaid or sold— — 
Balance, end of period$— $— 
The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI:
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Three Months Ended March 31, 2024
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ Liabilities
Deferred Income Tax Asset (Liability) (1)
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (1)
(in millions)
Balance, beginning of period$(159)$8 $(33)$(184)
Net investment gains (losses) arising during the period(85)— — (85)
Reclassification adjustment:
Included in net income (loss)— — — — 
Other
— — (4)(4)
Impact of net unrealized investment gains (losses)— 1 18 19 
Net unrealized investment gains (losses) excluding credit losses(244)9 (19)(254)
Balance, end of period$(244)$9 $(19)$(254)
Three Months Ended March 31, 2023
Balance, beginning of period$(388)$8 $(1)$(381)
Net investment gains (losses) arising during the period71 — — 71 
Reclassification adjustment:
Included in net income (loss)5 — — 5 
Other
— — 16 16 
Impact of net unrealized investment gains (losses)— (2)(16)(18)
Net unrealized investment gains (losses) excluding credit losses(312)6 (1)(307)
Balance, end of period$(312)$6 $(1)$(307)
_____________
(1)Certain balances were revised from previously filed financial statements.

The following tables disclose the fair values and gross unrealized losses of the 1,088 issues as of March 31, 2024 and the 891 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 Months12 Months or LongerTotal
 Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
March 31, 2024:
Fixed Maturities:
Corporate$1,237 $16 $1,974 $301 $3,211 $317 
U.S. Treasury, government and agency— — 8 1 8 1 
States and political subdivisions— — 32 8 32 8 
Foreign governments25 1 4 — 29 1 
Residential mortgage-backed396 4 19 4 415 8 
Asset-backed733 2 21 1 754 3 
Commercial mortgage-backed1 — 60 12 61 12 
Total at March 31, 2024$2,392 $23 $2,118 $327 $4,510 $350 
December 31, 2023:
Fixed Maturities:
Corporate$505 $7 $1,900 $269 $2,405 $276 
U.S. Treasury, government and agency— — 8 — 8 — 
States and political subdivisions— — 33 7 33 7 
Foreign governments7 1 4 — 11 1 
Residential mortgage-backed103 — 9 4 112 4 
Asset-backed290 1 23 1 313 2 
Commercial mortgage-backed29 — 61 14 90 14 
Total at December 31, 2023$934 $9 $2,038 $295 $2,972 $304 

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 1.4% 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 $83 million and $82 million, respectively, representing 4.0% and 3.8% of the 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 $138 million and $92 million, or 1.2% and 0.9%, of the $11.6 billion and $10.1 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 $0 million and $0 million as of March 31, 2024 and December 31, 2023, respectively.
As of March 31, 2024 and December 31, 2023, respectively, the $327 million and $295 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 Consolidated Financial Statements, the Company concluded that an 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 $21 million and $23 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 $21 million and $23 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 2024 the Company began investing in residential mortgage loans. Accrued interest receivable on commercial and residential mortgage loans was $3 million and $1 million as of March 31, 2024 and December 31, 2023 and no accrued interest was written off for the three months ended March 31, 2024 and 2023.
As of March 31, 2024 and December 31, 2023, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.
Allowance for Credit Losses on Mortgage Loans
The change in the allowance for credit losses for commercial and residential mortgage loans were as follows:
Three Months Ended March 31,
20242023
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$2 $— 
Current-period provision for expected credit losses1 — 
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance1 — 
Balance, end of period$3 $— 
Residential mortgages:
Balance, beginning of period$— $— 
Current-period provision for expected credit losses— — 
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance— — 
Balance, end of period$— $— 
Total allowance for credit losses$3 $— 
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 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
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial mortgage loans:
0% - 50%$— $58 $— $— $— $17 $— $— $75 
50% - 70%122 221 — — — — — — 343 
70% - 90%— — — — — — — — — 
90% plus— — — — — — — — — 
Total commercial$122 $279 $— $— $— $17 $— $— $418 

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

March 31, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial mortgage loans:
Greater than 2.0x$— $— $— $— $— $17 $— $— $17 
1.8x to 2.0x40 — — — — — — — 40 
1.5x to 1.8x— — — — — — — — — 
1.2x to 1.5x82 221 — — — — — — 303 
1.0x to 1.2x— 58 — — — — — — 58 
Less than 1.0x— — — — — — — — — 
Total commercial$122 $279 $— $— $— $17 $— $— $418 
_____________
(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
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial mortgage loans:
0% - 50%$58 $— $— $— $— $17 $— $— $75 
50% - 70%221 — — — — — — — 221 
70% - 90%— — — — — — — — — 
90% plus— — — — — — — — — 
Total commercial$279 $— $— $— $— $17 $— $— $296 

DSC Ratios (2) (3)
December 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial mortgage loans:
Greater than 2.0x$— $— $— $— $— $17 $— $— $17 
1.8x to 2.0x— — — — — — — — — 
1.5x to 1.8x— — — — — — — — — 
1.2x to 1.5x221 — — — — — — — 221 
1.0x to 1.2x58 — — — — — — — 58 
Less than 1.0x— — — — — — — — — 
Total commercial$279 $— $— $— $— $17 $— $— $296 
_____________
(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
20242023202220212020PriorTotal
(in millions)
Performance indicators: (1)
Performing
$— $96 $18 $16 $1 $— $131 
Nonperforming
— — — — — — — 
Total$— $96 $18 $16 $1 $— $131 
_____________
(1)The Company began investing in residential mortgages in 2024. Therefore, 2023 comparative information is not applicable.
Past-Due and Nonaccrual Mortgage Loan Status
The aging analysis of past-due mortgage loans were as follows:
Age Analysis of Past Due Mortgage Loans (1)
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past Due
Current
Total
30-59 Days
60-89
Days
90
Days
or More
Total
(in millions)
March 31, 2024:
Mortgage loans:
Commercial$— 0$— $— $— $418 $418 $— $418 $— $— 
Residential
— 0— — — 131 131 — 131 — — 
Total$— $— $— $— $549 $549 $— $549 $— $— 
December 31, 2023:
Mortgage loans:
Commercial$— $— $— $— $296 $296 $— $296 $— $— 
Residential
— — — — — — — — — — 
Total$— $— $— $— $296 $296 $— $296 $— $— 
________________
(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 $0 million and $0 million, respectively.
Equity Securities
The breakdown of unrealized and realized gains and (losses) on equity securities was as follows:
Unrealized and Realized Gains (Losses) from Equity Securities
Three Months Ended March 31,
20242023
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$— $(1)
Unrealized and realized gains (losses) on equity securities $— $(1)
Trading Securities
As of March 31, 2024 and December 31, 2023, respectively, the fair value of the Company’s trading securities was $0 million and $0 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 $1 million and $1 million.
The breakdown of net investment income (loss) from trading securities was as follows:
Net Investment Income (Loss) from Trading Securities
Three Months Ended March 31,
20242023
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$— $(2)
Unrealized and realized gains (losses) on trading securities— (2)
Net investment income (loss) from trading securities$— $(2)
Net Investment Income
The following tables provide the components of net investment income by investment type:
Three Months Ended March 31,
20242023
(in millions)
Fixed maturities$143 $29 
Mortgage loans on real estate7 — 
Policy loans1 1 
Other equity investments1 (1)
Trading securities— (2)
Other investment income13 3 
Gross investment income (loss)165 30 
Investment expenses(4)(1)
Net investment income (loss)$161 $29 
Investment Gains (Losses), Net
Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows:
Three Months Ended March 31,
20242023
(in millions)
Fixed maturities$— $(5)
Mortgage loans on real estate(1)— 
Investment gains (losses), net$(1)$(5)