Proceeds from the sales of fixed maturities, AFS totaled $1.4 billion and $5.5 billion for the three months ended March 31, 2023, and 2022 respectively.

Accrued Interest Receivable on Fixed Maturities, AFS and Mortgage Loans

As of March 31, 2023 and December 31, 2022, the Company reported accrued interest receivable related to fixed maturities, AFS of $345 and $338, respectively, and accrued interest receivable related to mortgage loans of $19 and $18, respectively. These amounts are recorded in other assets on the Condensed Consolidated Balance Sheets and are not included in the carrying value of the fixed maturities or mortgage loans. The Company does not include the current accrued interest receivable balance when estimating the ACL. The Company has a policy to write-off accrued interest receivable balances that are more than 90 days past due. Write-offs of accrued interest receivable are recorded as a credit loss component of net realized gains and losses.

Interest income on fixed maturities and mortgage loans is accrued unless it is past due over 90 days or management deems the interest uncollectible.

Recognition and Presentation of Intent-to-Sell Impairments and ACL on Fixed Maturities, AFS

The Company will record an "intent-to-sell impairment" as a reduction to the amortized cost of fixed maturities, AFS in an unrealized loss position if the Company intends to sell or it is more likely than not that the Company will be required to sell the fixed maturity before a recovery in value. A corresponding charge is recorded in net realized losses equal to the difference between the fair value on the impairment date and the

amortized cost basis of the fixed maturity before recognizing the impairment.

For fixed maturities where a credit loss has been identified and no intent-to-sell impairment has been recorded, the Company will record an ACL for the portion of the unrealized loss related to the credit loss. Any remaining unrealized loss on a fixed maturity after recording an ACL is the non-credit amount and is recorded in OCI. The ACL is the excess of the amortized cost over the greater of the Company's best estimate of the present value of expected future cash flows or the security's fair value. Cash flows are discounted at the effective yield that is used to record interest income. The ACL cannot exceed the unrealized loss and, therefore, it may fluctuate with changes in the fair value of the fixed maturity if the fair value is greater than the Company's best estimate of the present value of expected future cash flows. The initial ACL and any subsequent changes are recorded in net realized gains and losses. The ACL is written off against the amortized cost in the period in which all or a portion of the related fixed maturity is determined to be uncollectible.

Developing the Company’s best estimate of expected future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions regarding the future performance. The Company's considerations include, but are not limited to, (a) changes in the financial condition of the issuer and/or the underlying collateral, (b) whether the issuer is current on contractually obligated interest and principal payments, (c) credit ratings, (d) payment structure of the security and (e) the extent to which the fair value has been less than the amortized cost of the security.

For non-structured securities, assumptions include, but are not limited to, economic and industry-specific trends and fundamentals, instrument-specific developments including changes in credit ratings, industry earnings multiples and the

issuer’s ability to restructure, access capital markets, and execute asset sales.

For structured securities, assumptions include, but are not limited to, various performance indicators such as historical and projected default and recovery rates, credit ratings, current and projected delinquency rates, loan-to-value ("LTV") ratios,

average cumulative collateral loss rates that vary by vintage year, prepayment speeds, and property value declines. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries which may include estimating the underlying collateral value.


ACL on Fixed Maturities, AFS by Type
	Three Months Ended March 31,
		2023			2022
(Before tax)			Corporate			CMBS		Total		Corporate		Foreign govt./govt. agencies		CMBS		Total
Balance as of beginning of period			$	2		$	10	$	12	$	1	$	—	$	—	$	1
Credit losses on fixed maturities where an allowance was not previously recorded			4			—		4		8		3		1		12


Net increases (decreases) on fixed maturities where an allowance was previously recorded			—			1		1		—		—		—		—


Balance as of end of period			$	6		$	11	$	17	$	9	$	3	$	1	$	13

Fixed Maturities, AFS


Fixed Maturities, AFS, by Type
	March 31, 2023										December 31, 2022
	Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		ACL		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
ABS	$	2,233	$	—	$	5	$	(57)	$	2,181		$	2,016	$	—	$	—	$	(75)	$	1,941
CLO	3,089		—		3		(79)		3,013			3,040		—		3		(102)		2,941
CMBS	3,661		(11)		20		(341)		3,329			3,715		(10)		21		(358)		3,368
Corporate	17,424		(6)		69		(1,277)		16,210			16,794		(2)		33		(1,592)		15,233
Foreign govt./govt. agencies	588		—		1		(40)		549			596		—		—		(49)		547
Municipal	6,616		—		119		(370)		6,365			6,718		—		93		(515)		6,296
RMBS	4,169		—		5		(437)		3,737			4,214		—		2		(508)		3,708
U.S. Treasuries	2,238		—		2		(180)		2,060			2,440		—		—		(243)		2,197
Total fixed maturities, AFS	$	40,018	$	(17)	$	224	$	(2,781)	$	37,444		$	39,533	$	(12)	$	152	$	(3,442)	$	36,231


Fixed Maturities, AFS, by Contractual Maturity Year
	March 31, 2023				December 31, 2022
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,269	$	1,248	$	1,417	$	1,396
Over one year through five years	8,806		8,461		8,340		7,930
Over five years through ten years	7,427		6,848		7,259		6,485
Over ten years	9,364		8,627		9,532		8,462
Subtotal	26,866		25,184		26,548		24,273
Mortgage-backed and asset-backed securities	13,152		12,260		12,985		11,958
Total fixed maturities, AFS	$	40,018	$	37,444	$	39,533	$	36,231

Estimated maturities may differ from contractual maturities due to call or prepayment provisions. Due to the potential for variability in payment speeds (i.e., prepayments or extensions), mortgage-backed and asset-backed securities are not categorized by contractual maturity.

Concentration of Credit Risk

The Company aims to maintain a diversified investment portfolio including issuer, sector and geographic stratification, where

applicable, and has established certain exposure limits, diversification standards and review procedures to mitigate credit risk. The Company had no investment exposure to any credit concentration risk of a single issuer greater than 10% of the Company's stockholders' equity as of March 31, 2023 or December 31, 2022 other than U.S. government securities and certain U.S. government agencies.

Unrealized Losses on Fixed Maturities, AFS


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of March 31, 2023
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	1,225	$	(17)	$	562	$	(40)	$	1,787	$	(57)
CLO	403		(6)		2,551		(73)		2,954		(79)
CMBS	914		(52)		2,232		(289)		3,146		(341)
Corporate	6,114		(278)		7,233		(999)		13,347		(1,277)
Foreign govt./govt. agencies	133		(6)		363		(34)		496		(40)
Municipal	2,125		(92)		1,832		(278)		3,957		(370)
RMBS	1,008		(59)		2,488		(378)		3,496		(437)
U.S. Treasuries	857		(54)		1,102		(126)		1,959		(180)
Total fixed maturities, AFS in an unrealized loss position	$	12,779	$	(564)	$	18,363	$	(2,217)	$	31,142	$	(2,781)


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2022
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	1,577	$	(50)	$	281	$	(25)	$	1,858	$	(75)
CLO	1,490		(48)		1,378		(54)		2,868		(102)
CMBS	2,560		(270)		521		(88)		3,081		(358)
Corporate	11,157		(1,071)		2,575		(521)		13,732		(1,592)
Foreign govt./govt. agencies	308		(26)		224		(23)		532		(49)
Municipal	4,270		(461)		228		(54)		4,498		(515)
RMBS	2,311		(249)		1,250		(259)		3,561		(508)
U.S. Treasuries	1,554		(145)		633		(98)		2,187		(243)
Total fixed maturities, AFS in an unrealized loss position	$	25,227	$	(2,320)	$	7,090	$	(1,122)	$	32,317	$	(3,442)

As of March 31, 2023, fixed maturities, AFS in an unrealized loss position consisted of 4,565 instruments, and were primarily depressed due to higher interest rates and/or wider credit spreads since the purchase date. As of March 31, 2023, 94% of these fixed maturities were depressed less than 20% of cost or amortized cost. The decrease in unrealized losses during the three months ended March 31, 2023, was primarily attributable to lower interest rates, partially offset by wider credit spreads.

Most of the fixed maturities depressed for twelve months or more relate to the corporate sector, RMBS, CMBS, and municipal bonds which were primarily depressed because current rates are higher and/or market spreads are wider than at the respective purchase dates. The Company neither has an intention to sell nor does it expect to be required to sell the fixed maturities outlined in the preceding discussion. The decision to record credit losses on fixed maturities, AFS in the form of an ACL requires us to make qualitative and quantitative estimates of expected future cash flows.

Mortgage Loans

ACL on Mortgage Loans

The Company reviews mortgage loans on a quarterly basis to estimate the ACL with changes in the ACL recorded in net realized gains and losses. Apart from an ACL recorded on individual mortgage loans where the borrower is experiencing financial difficulties, the Company records an ACL on the pool of mortgage loans based on lifetime expected credit losses. The Company utilizes a third-party forecasting model to estimate lifetime expected credit losses at a loan level under multiple economic scenarios. The scenarios use macroeconomic data provided by an internationally recognized economics firm that generates forecasts of varying economic factors such as GDP growth, unemployment and interest rates. The economic scenarios are projected over 10 years. The first two to four years of the 10-year period assume a specific modeled economic scenario (including moderate upside, moderate recession and severe recession scenarios) and then revert to historical long-term assumptions over the remaining period. Using these economic scenarios, the forecasting model projects property-specific operating income and capitalization rates used to estimate the value of a future operating income stream. The operating income and the property valuations derived from capitalization rates are compared to loan payment and principal amounts to create debt service coverage ratios ("DSCRs") and LTVs over the forecast period. The Company's process also considers qualitative factors. The model overlays historical data about mortgage loan performance based on DSCRs and LTVs and projects the probability of default, amount of loss given a default and resulting expected loss through maturity for each loan under each economic scenario. Economic scenarios are probability-weighted based on a statistical analysis of the forecasted economic factors and qualitative analysis. The Company records the change in the ACL on mortgage loans based on the weighted-average expected credit losses across the selected economic scenarios.

When a borrower is experiencing financial difficulty, including when foreclosure is probable, the Company measures an ACL on individual mortgage loans. The ACL is established for any shortfall between the amortized cost of the loan and the fair value of the collateral less costs to sell. Estimates of collectibility from an individual borrower require the use of significant management judgment and include the probability and timing of

borrower default and loss severity estimates. In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates. As of March 31, 2023, the Company did not have any mortgage loans for which an ACL was established on an individual basis.

There were no mortgage loans held-for-sale as of March 31, 2023 or December 31, 2022. For the three months ended March 31, 2023 and 2022, respectively, the Company had no mortgage loans that have had extensions or restructurings other than what is allowable under the original terms of the contract.


ACL on Mortgage Loans
	Three Months Ended March 31,
	2023		2022
ACL as of beginning of period	$	36	$	29
Current period provision (release)	—		2



ACL as of March 31,	$	36	$	31

For the three months ended March 31, 2023, there was no change to the ACL on mortgage loans which currently incorporates a level of economic uncertainty and the potential impact it might have on real estate property valuations.

The weighted-average LTV ratio of the Company’s mortgage loan portfolio was 52% as of March 31, 2023, while the weighted-average LTV ratio at origination of these loans was 59%. LTV ratios compare the loan amount to the value of the underlying property collateralizing the loan with property values based on appraisals updated no less than annually. Factors considered in estimating property values include, among other things, actual and expected property cash flows, geographic market data and the ratio of the property's net operating income to its value. DSCR compares a property’s net operating income to the borrower’s principal and interest payments and are updated no less than annually through reviews of underlying properties.


Mortgage Loans LTV & DSCR by Origination Year as of March 31, 2023
	2023			2022			2021			2020			2019			2018 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	10	1.92x	$	10	1.92x
65% - 80%	—		—x	16		2.02x	58		1.84x	43		2.87x	100		2.05x	197		1.34x	414		1.76x
Less than 65%	73		1.35x	855		2.42x	1,509		2.80x	664		3.02x	678		2.91x	1,880		2.45x	5,659		2.65x
Total mortgage loans	$	73	1.35x	$	871	2.41x	$	1,567	2.77x	$	707	3.01x	$	778	2.80x	$	2,087	2.34x	$	6,083	2.59x

[1]Amortized cost of mortgage loans excludes ACL of $36.


Mortgage Loans LTV & DSCR by Origination Year as of December 31, 2022
	2022			2021			2020			2019			2018			2017 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR
Greater than 80%	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	—	—x	$	23	1.40x	$	23	1.40x
65% - 80%	16		2.02x	59		2.61x	43		2.78x	100		1.95x	108		1.11x	117		1.91x	443		1.91x
Less than 65%	839		2.43x	1,475		2.79x	663		3.02x	680		2.77x	437		2.21x	1,476		2.54x	5,570		2.65x
Total mortgage loans	$	855	2.42x	$	1,534	2.78x	$	706	3.01x	$	780	2.66x	$	545	1.99x	$	1,616	2.48x	$	6,036	2.59x

[1]Amortized cost of mortgage loans excludes ACL of $36.


Mortgage Loans by Region
	March 31, 2023				December 31, 2022
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
East North Central	$	337	5.6	%	$	317	5.3	%

Middle Atlantic	315		5.2	%	316		5.2	%
Mountain	706		11.6	%	707		11.7	%
New England	354		5.8	%	395		6.5	%
Pacific	1,279		21.0	%	1,299		21.5	%
South Atlantic	1,732		28.5	%	1,670		27.7	%
West North Central	111		1.8	%	105		1.7	%
West South Central	432		7.1	%	421		7.0	%
Other [1]	817		13.4	%	806		13.4	%
Total mortgage loans	6,083		100.0	%	6,036		100.0	%
ACL	(36)				(36)
Total mortgage loans, net of ACL	$	6,047			$	6,000

[1]Primarily represents loans collateralized by multiple properties in various regions.


Mortgage Loans by Property Type
	March 31, 2023				December 31, 2022
	Amortized Cost		Percent of Total		Amortized Cost		Percent of Total
Commercial

Industrial	$	2,266	37.3	%	$	2,217	36.7	%

Multifamily	2,287		37.6	%	2,247		37.2	%
Office	585		9.6	%	585		9.7	%
Retail [1]	945		15.5	%	947		15.7	%

Other	—		—	%	40		0.7	%
Total mortgage loans	6,083		100.0	%	6,036		100.0	%
ACL	(36)				(36)
Total mortgage loans, net of ACL	$	6,047			$	6,000

[1]Primarily comprised of grocery-anchored retail centers, with no exposure to regional shopping malls.

Past-Due Mortgage Loans

Mortgage loans are considered past due if a payment of principal or interest is not received according to the contractual terms of the loan agreement, which typically includes a grace period. As of March 31, 2023 and December 31, 2022, the Company held no mortgage loans considered past due.

Mortgage Servicing

The Company originates, sells and services commercial mortgage loans on behalf of third parties and recognizes servicing fee income over the period that services are performed. As of March 31, 2023, under this program, the Company serviced mortgage loans with a total outstanding principal of $9.5 billion, of which $4.5 billion was serviced on behalf of third parties and $5.0 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. As of December 31, 2022, the Company serviced mortgage loans with a total outstanding principal balance of $9.3 billion, of which $4.4 billion was serviced on behalf of third parties and $4.9 billion was retained and reported in total investments on the Company's Condensed Consolidated Balance Sheets. Servicing rights are carried at the lower of cost or fair value and were $0 as of March 31, 2023 and December 31, 2022, because servicing fees were market-level fees at origination and remain adequate to compensate the

Company for servicing the loans.

Variable Interest Entities

The Company is engaged with various special purpose entities and other entities that are deemed to be VIEs primarily as an investor through normal investment activities or, at times, as an investment manager.

A VIE is an entity that either has investors that lack certain essential characteristics of a controlling financial interest, such as simple majority kick-out rights, or lacks sufficient funds to finance its own activities without financial support provided by other entities. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in the VIE and therefore is the primary beneficiary. The Company is deemed to have a controlling financial interest when it has both the ability to direct the activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. Based on the Company’s assessment, if it determines it is the primary beneficiary, the Company consolidates the VIE in the Company’s Condensed Consolidated Financial Statements.

Consolidated VIEs

As of March 31, 2023 and December 31, 2022, the Company did not hold any securities for which it is the primary beneficiary.

Non-Consolidated VIEs

The Company, through normal investment activities, makes passive investments in limited partnerships and other alternative investments. For these non-consolidated VIEs, the Company has determined it is not the primary beneficiary as it has no ability to direct activities that could significantly affect the economic performance of the investments. The Company’s maximum exposure to loss as of March 31, 2023 and December 31, 2022 was limited to the total carrying value of $2.6 billion for both periods, which are a portion of the investments in limited partnerships and other alternative investments in the Company's Condensed Consolidated Balance Sheets that are primarily recorded using the equity method of accounting. As of March 31, 2023 and December 31, 2022, the Company has outstanding commitments totaling $1.8 billion for both periods, whereby the Company is committed to fund these investments and may be called by the partnership during the commitment period to fund the purchase of new investments and partnership expenses. These investments are generally of a passive nature in that the Company does not take an active role in management. For further discussion of these investments, see Equity Method Investments within Note 5 - Investments of Notes to Consolidated Financial Statements included in the Company’s 2022 Form 10-K Annual Report.

In addition, the Company makes passive investments in structured securities issued by VIEs for which the Company is not the manager. These investments are included in ABS, CLO, CMBS, and RMBS and are reported in fixed maturities, AFS, and fixed maturities, FVO, on the Company's Condensed Consolidated Balance Sheets. The Company has not provided

financial or other support with respect to these investments other than its original investment. For these investments, the Company determined it is not the primary beneficiary due to the relative size of the Company’s investment in comparison to the principal amount of the structured securities issued by the VIEs, the Company’s inability to direct the activities that most significantly impact the economic performance of the VIEs, and, where applicable, the level of credit subordination which reduces the Company’s obligation to absorb losses or right to receive benefits. The Company’s maximum exposure to loss on these investments is limited to the amount of the Company’s investment.

Reverse Repurchase Agreements, Other Collateral Transactions and Restricted Investments

Reverse Repurchase Agreements

From time to time, the Company enters into reverse repurchase agreements where the Company purchases securities and simultaneously agrees to resell the same or substantially the same securities. The maturity of these transactions is generally within one year. The agreements require additional collateral to be transferred to the Company under specified conditions and the Company has the right to sell or re-pledge the securities received. The Company accounts for reverse repurchase agreements as collateralized financing. As of March 31, 2023 and December 31, 2022, the Company reported $34 and $41, respectively, within short-term investments on the Condensed Consolidated Balance Sheets representing a receivable for the amount of cash transferred to purchase the securities.

Other Collateral Transactions

As of March 31, 2023 and December 31, 2022, the Company pledged collateral of $7 and $7, respectively, of U.S. government securities or cash primarily related to certain bank loan participations committed through a limited partnership agreement.

For disclosure of collateral in support of derivative transactions, refer to the Derivative Collateral Arrangements section in Note 6 - Derivatives of Notes to Condensed Consolidated Financial Statements.

Other Restricted Investments

The Company is required by law to deposit securities with government agencies in certain states in which it conducts business. In addition, the Company is required to hold fixed maturities and short-term investments in trust for the benefit of syndicate policyholders, hold fixed maturities in a Lloyd's of London ("Lloyd's") trust account to provide a portion of the required capital, and maintain other investments primarily consisting of overseas deposits in various countries with Lloyd's to support underwriting activities in those countries. Lloyd's is an insurance market-place operating worldwide. Lloyd's does not underwrite risks. The Company accepts risks as the sole member of Lloyd's Syndicate 1221 ("Lloyd's Syndicate").

The following table presents the components of the Company’s exposure to other restricted investments.



	March 31, 2023		December 31, 2022
	Fair Value		Fair Value
Securities on deposit with government agencies	$	2,316	$	2,189
Fixed maturities in trust for benefit of Lloyd's Syndicate policyholders	783		718
Short-term investments in trust for benefit of Lloyd's Syndicate policyholders	33		8
Fixed maturities in Lloyd's trust account	176		161
Other investments	66		62
Total Other Restricted Investments	$	3,374	$	3,138