The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities (“Corporate”), Canadian and Canadian provincial government securities (“Canadian government”), Japanese government and agencies (“Japanese government”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”), U.S. government and agencies (“U.S. government”), state and political subdivisions, and other foreign government, supranational and foreign government-sponsored enterprises (“Other foreign government”). ABS, CMBS, and RMBS are collectively “structured securities.”


March 31, 2024:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	44,575	$	79	$	485	$	3,933	$	41,048	62.4	%
Canadian government	3,455		—		326		68		3,713		5.6
Japanese government	5,722		—		4		522		5,204		7.9
ABS	5,137		15		30		207		4,945		7.5
CMBS	2,002		1		14		154		1,861		2.8
RMBS	1,250		—		10		110		1,150		1.7
U.S. government	3,028		—		2		244		2,786		4.2
State and political subdivisions	1,249		—		6		139		1,116		1.7
Other foreign government	4,372		—		39		407		4,004		6.2
Total fixed maturity securities	$	70,790	$	95	$	916	$	5,784	$	65,827	100.0	%


December 31, 2023:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	42,014	$	62	$	554	$	3,751	$	38,755	64.1	%
Canadian government	3,477		—		473		33		3,917		6.5
Japanese government	3,630		—		3		502		3,131		5.2
ABS	4,661		12		19		239		4,429		7.3
CMBS	1,969		1		7		202		1,773		2.9
RMBS	1,173		—		8		102		1,079		1.8
U.S. government	2,725		—		9		214		2,520		4.2
State and political subdivisions	1,236		—		7		129		1,114		1.8
Other foreign government	4,092		—		45		388		3,749		6.2
Total fixed maturity securities	$	64,977	$	75	$	1,125	$	5,560	$	60,467	100.0	%

The Company monitors its concentrations of financial instruments on an ongoing basis and mitigates credit risk by maintaining a diversified investment portfolio that limits exposure to any one issuer. The Company’s exposure to concentrations of credit


	March 31, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Japanese government	$	5,722	$	5,204	$	3,630	$	3,131
U.S. government	3,028		2,786		2,725		2,520
Canadian province of Quebec	1,454		1,636		1,467		1,748
Canadian province of Ontario	1,002		1,070		1,019		1,125

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of March 31, 2024, are shown by contractual maturity in the table below (dollars in millions). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Structured securities are shown separately in the table below, as they are not due at a single maturity date.


	Amortized Cost		Estimated Fair Value
Available-for-sale:
Due in one year or less	$	1,316	$	1,313
Due after one year through five years	11,090		10,925
Due after five years through ten years	12,989		12,401
Due after ten years	37,006		33,232
Structured securities	8,389		7,956
Total	$	70,790	$	65,827


March 31, 2024:	Amortized Cost		Estimated Fair Value		% of Total
Finance	$	15,788	$	14,526	35.4	%
Industrial	22,606		20,946		51.0
Utility	6,181		5,576		13.6

Total	$	44,575	$	41,048	100.0	%

December 31, 2023:	Amortized Cost		Estimated Fair Value		% of Total
Finance	$	15,052	$	13,789	35.6	%
Industrial	21,413		19,935		51.4
Utility	5,549		5,031		13.0
Total	$	42,014	$	38,755	100.0	%

As discussed in Note 2 – “Significant Accounting Policies and Pronouncements” of the Company’s 2023 Annual Report, allowances for credit losses on fixed maturity securities are recognized in investment related gains (losses), net. The amount recognized represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the fixed maturity security prior to the allowance for credit losses. Any remaining difference between the fair value and amortized cost is recognized in OCI.


For the three months ended March 31, 2024:
	Corporate		ABS		CMBS		Total
Balance, beginning of year	$	62	$	12	$	1	$	75
Credit losses recognized on securities for which credit losses were not previously recorded	30		—		—		30
Reductions for securities sold during the period	(8)		—		—		(8)
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	(5)		3		—		(2)
Balance, end of period	$	79	$	15	$	1	$	95


For the three months ended March 31, 2023:
	Corporate		ABS		CMBS		Total
Balance, beginning of year	$	27	$	10	$	—	$	37
Credit losses recognized on securities for which credit losses were not previously recorded	43		—		—		43

Reductions for securities sold during the period	(3)		—		—		(3)

Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	2		—		—		2


Balance, end of period	$	69	$	10	$	—	$	79

The Company’s determination of whether a decline in value necessitates the recording of an allowance for credit losses includes an analysis of whether the issuer is current on its contractual payments, evaluating whether it is probable that the Company will be able to collect all amounts due according to the contractual terms of the security and analyzing the overall ability of the Company to recover the amortized cost of the investment.

The following tables present the estimated fair value and gross unrealized losses for the 6,101 and 5,788 fixed maturity securities for which both the estimated fair value had declined and remained below amortized cost and an allowance for credit loss has not been recorded as of March 31, 2024 and December 31, 2023 (dollars in millions). These investments are presented by class and grade of security, as well as the length of time the related fair value has continuously remained below amortized cost.


	Less than 12 months				12 months or greater				Total
March 31, 2024:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate	$	4,063	$	89	$	23,710	$	3,753	$	27,773	$	3,842
Canadian government	291		14		433		54		724		68
Japanese government	2,728		63		2,013		459		4,741		522
ABS	560		8		2,883		191		3,443		199
CMBS	108		1		1,266		143		1,374		144
RMBS	161		3		683		107		844		110
U.S. government	1,932		14		654		230		2,586		244
State and political subdivisions	119		3		815		136		934		139
Other foreign government	466		6		2,190		348		2,656		354
Total investment grade securities	10,428		201		34,647		5,421		45,075		5,622
Below investment grade securities:
Corporate	246		25		512		66		758		$	91

ABS	10		1		62		7		72		8
CMBS	—		—		4		1		4		1
Other foreign government	—		—		193		53		193		53
Total below investment grade securities	256		26		771		127		1,027		153
Total fixed maturity securities	$	10,684	$	227	$	35,418	$	5,548	$	46,102	$	5,775


	Less than 12 months				12 months or greater				Total
December 31, 2023:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate	$	2,134	$	70	$	24,207	$	3,524	$	26,341	$	3,594
Canadian government	—		—		459		33		459		33
Japanese government	876		50		2,193		452		3,069		502
ABS	336		5		3,025		223		3,361		228
CMBS	160		5		1,328		190		1,488		195
RMBS	115		3		681		99		796		102
U.S. government	614		10		717		204		1,331		214
State and political subdivisions	73		1		864		128		937		129
Other foreign government	254		3		2,290		333		2,544		336
Total investment grade securities	4,562		147		35,764		5,186		40,326		5,333
Below investment grade securities:
Corporate	295		36		649		121		944		157


ABS	—		—		68		10		68		10
CMBS	—		—		4		1		4		1

Other foreign government	—		—		193		52		193		52
Total below investment grade securities	295		36		914		184		1,209		220
Total fixed maturity securities	$	4,857	$	183	$	36,678	$	5,370	$	41,535	$	5,553

The Company did not intend to sell, and more likely than not would not be required to sell, the securities outlined in the tables above, as of the dates indicated. However, unforeseen facts and circumstances may cause the Company to sell fixed maturity securities in the ordinary course of managing its portfolio to meet certain diversification, credit quality and liquidity guidelines. Changes in unrealized losses are primarily driven by changes in risk-free interest rates and credit spreads.


	Three months ended March 31,
		2024		2023
Fixed maturity securities available-for-sale		$	760	$	645
Equity securities		2		2
Mortgage loans		90		74
Policy loans		14		13
Funds withheld at interest		89		72
Limited partnerships and real estate joint ventures		7		54
Short-term investments and cash and cash equivalents		34		21

Other invested assets		4		9
Investment income		1,000		890
Investment expense		(39)		(34)
Net investment income		$	961	$	856


	Three months ended March 31,
		2024		2023
Fixed maturity securities available-for-sale:
Change in allowance for credit losses		$	(20)	$	(42)
Impairments on fixed maturity securities		—		(1)
Realized gains on investment activity		32		31
Realized losses on investment activity		(134)		(75)
Net gains (losses) on equity securities		4		2
Change in mortgage loan allowance for credit losses		(10)		3
Limited partnerships and real estate joint venture impairment losses		(8)		—
Change in fair value of certain limited partnership investments		1		(3)
Net losses on freestanding derivatives		(99)		(31)
Net gains (losses) on embedded derivatives		77		37
Other, net		8		2
Total investment related gains (losses), net		$	(149)	$	(77)

The Company enters into various collateral arrangements with counterparties that require both the pledging and acceptance of invested assets as collateral. Pledged invested assets are included in the condensed consolidated balance sheets. Invested assets received as collateral are held in separate custodial accounts and are not recorded on the Company’s condensed consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge collateral it receives; however, as of March 31, 2024 and December 31, 2023, none of the collateral received had been sold or repledged.

The following table includes invested assets on deposit, invested assets pledged and received as collateral, assets in trust held to satisfy collateral requirements and FHLB common stock restricted as to sale as of March 31, 2024 and December 31, 2023 (dollars in millions):


	March 31, 2024				December 31, 2023
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Invested assets on deposit (regulatory deposits)	$	12	$	9	$	12	$	9
Invested assets pledged as collateral	717		631		572		517
Invested assets received as collateral	n/a		1,932		n/a		1,827
Assets in trust held to satisfy collateral requirements	33,402		30,798		32,758		30,359
FHLB common stock restricted as to sale	63		63		63		63


	March 31, 2024						December 31, 2023
	Securities Loaned, Pledged, or Sold (1)		Securities Borrowed or Collateral Received from Counterparties (2)		Cash Collateral Received from Counterparties (3)		Securities Loaned, Pledged, or Sold (1)		Securities Borrowed or Collateral Received from Counterparties (2)		Cash Collateral Received from Counterparties (3)
Securities lending transactions	$	912	$	1,160	$	—	$	732	$	1,013	$	—
Repurchase/reverse repurchase transactions	1,568		732		719		1,333		517		820

(1)Securities loaned or pledged through securities lending transactions or sold to counterparties through repurchase transactions are included within fixed maturity securities. Collateral associated with certain securities lending transactions is not included within this table as the collateral pledged to the counterparty is the right to reinsurance treaty cash flows. Certain securities lending transactions do not require collateral.


	March 31, 2024										December 31, 2023
	Remaining Contractual Maturity of the Agreements										Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 – 90 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		30 – 90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate	$	—	$	75	$	66	$	202	$	343	$	—	$	—	$	94	$	41	$	135

Japanese government	—		—		—		536		536		—		88		—		480		568



U.S. government	—		—		—		9		9		—		—		—		—		—
State and political subdivisions	—		—		—		6		6		—		—		—		11		11
Other foreign government	—		—		7		11		18		—		—		13		5		18
Total	—		75		73		764		912		—		88		107		537		732
Repurchase/reverse repurchase transactions:
Corporate	—		39		—		538		577		—		—		—		553		553

Japanese government	—		—		—		382		382		—		—		—		158		158
ABS	—		—		52		157		209		—		—		—		229		229
CMBS	—		24		56		108		188		—		—		—		221		221
RMBS	—		1		8		43		52		—		—		—		52		52
U.S. government	—		—		—		61		61		—		—		—		14		14

Other foreign government	—		—		—		99		99		—		—		—		106		106
Total	—		64		116		1,388		1,568		—		—		—		1,333		1,333
Total transactions	$	—	$	139	$	189	$	2,152	$	2,480	$	—	$	88	$	107	$	1,870	$	2,065

As of March 31, 2024, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (14.0%), Texas (10.4%) and Washington (7.3%), in addition to loans secured by properties in Canada (4.0%) and the United Kingdom (2.4%). The recorded investment in mortgage loans presented below is gross of unamortized deferred loan origination fees and expenses and allowance for credit losses.


	March 31, 2024				December 31, 2023
Property type:	Carrying Value		% of Total		Carrying Value		% of Total
Office	$	1,692	22.2	%	$	1,700	22.8	%
Retail	2,487		32.6		2,437		32.7
Industrial	2,068		27.1		1,947		26.1
Apartment	927		12.1		913		12.2
Hotel	411		5.4		413		5.5
Other commercial	48		0.6		49		0.7
Recorded investment	7,633		100.0	%	7,459		100.0	%
Unamortized balance of loan origination fees and expenses	(17)				(15)
Allowance for credit losses	(77)				(67)
Total mortgage loans	$	7,539			$	7,377


	March 31, 2024				December 31, 2023
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	3,463	45.4	%	$	3,228	43.3	%
Due after five years through ten years	3,321		43.5		3,334		44.7
Due after ten years	849		11.1		897		12.0
Total	$	7,633	100.0	%	$	7,459	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
March 31, 2024:
Loan-to-Value Ratio
0% – 59.99%	$	3,820	$	298	$	40	$	50	$	4,208	55.1	%
60% – 69.99%	1,950		160		38		—		2,148		28.2
70% – 79.99%	849		28		47		—		924		12.1
80% or greater	189		55		109		—		353		4.6
Total	$	6,808	$	541	$	234	$	50	$	7,633	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
December 31, 2023:
Loan-to-Value Ratio
0% – 59.99%	$	3,672	$	272	$	27	$	46	$	4,017	53.9	%
60% – 69.99%	1,947		154		44		—		2,145		28.8
70% – 79.99%	843		52		34		—		929		12.4
80% or greater	198		70		100		—		368		4.9
Total	$	6,660	$	548	$	205	$	46	$	7,459	100.0	%


	Recorded Investment
	Year of Origination
	2024		2023		2022		2021		2020		Prior		Total
March 31, 2024:
Internal credit quality grade:
High investment grade	$	126	$	474	$	632	$	563	$	257	$	2,174	$	4,226
Investment grade	172		754		671		390		242		899		3,128
Average	—		12		—		—		18		203		233
Watch list	—		—		—		—		—		23		23
In or near default	—		—		—		—		—		23		23
Total	$	298	$	1,240	$	1,303	$	953	$	517	$	3,322	$	7,633


	Recorded Investment
	Year of Origination
	2023		2022		2021		2020		2019		Prior		Total
December 31, 2023:
Internal credit quality grade:
High investment grade	$	475	$	635	$	573	$	304	$	491	$	1,734	$	4,212
Investment grade	754		668		384		245		313		564		2,928
Average	12		—		—		18		63		203		296
Watch list	—		—		—		—		—		16		16
In or near default	—		—		—		—		—		7		7
Total	$	1,241	$	1,303	$	957	$	567	$	867	$	2,524	$	7,459

During the three months ended March 31, 2024, the Company modified two mortgage loans for borrowers experiencing financial difficulty, providing interest only payments and maturity extensions. The total recorded investment before allowance for credit losses for the modified loans was $21 million as of March 31, 2024. The Company did not modify any mortgage loans during the three months ended March 31, 2023.

The Company had three mortgage loans totaling $23 million that were on a nonaccrual status as of March 31, 2024. The Company had one mortgage loan in the amount of $19 million that was on nonaccrual status as of March 31, 2023. During the three months ended March 31, 2024, the Company did not convert any mortgage loans to owned properties through a deed in lieu of foreclosure. During the three months ended March 31, 2023, the Company converted one mortgage loan in the amount of $17 million to an owned property through a deed in lieu of foreclosure. The Company did not acquire any impaired mortgage loans during the three months ended March 31, 2024 and 2023.

The majority of policy loans are associated with one client. These policy loans present no credit risk as the amount of the loan cannot exceed the obligation due to the ceding company upon the death of the insured or surrender of the underlying policy. The provisions of the treaties in force and the underlying policies determine the policy loan interest rates. The Company earns a spread between the interest rate earned on policy loans and the interest rate credited to corresponding liabilities.

As of March 31, 2024, $3.3 billion of the funds withheld at interest balance is primarily associated with two clients. For reinsurance agreements written on a modco basis and certain agreements written on a coinsurance funds withheld basis, assets equal to the net statutory reserves are withheld and legally owned and managed by the ceding company and are reflected as funds withheld at interest. In the event of a ceding company’s insolvency, the Company would need to assert a claim on the assets supporting its reserve liabilities. However, the risk of loss to the Company is mitigated by its ability to offset amounts it owes the ceding company for claims or allowances against amounts owed to the Company from the ceding company.


	March 31, 2024		December 31, 2023
Limited partnerships – equity method	$	923	$	925
Limited partnerships – fair value	893		856
Limited partnerships – cost method	71		71
Real estate joint ventures	810		783
Total limited partnerships and real estate joint ventures	$	2,697	$	2,635

Other invested assets include lifetime mortgages, derivative contracts and FHLB common stock. Other invested assets also includes real estate held for investment, which is included in “Other” in the table below. As of March 31, 2024 and December 31, 2023, the allowance for credit losses for lifetime mortgages was not material. The carrying values of other invested assets as of March 31, 2024 and December 31, 2023 are as follows (dollars in millions):