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Investments (Tables)
 6 Months Ended
Jun. 30, 2021
Investments [Abstract]  
Portfolio composition
Portfolio composition
($ in millions)June 30, 2021December 31, 2020
Fixed income securities, at fair value$42,825 $42,565 
Equity securities, at fair value3,059 3,168 
Mortgage loans, net786 746 
Limited partnership interests 7,073 4,563 
Short-term investments, at fair value5,516 6,807 
Other, net3,311 1,691 
Total$62,570 $59,540 
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)Amortized cost, netGross unrealized
Fair
value
GainsLosses
June 30, 2021    
U.S. government and agencies$4,766 $24 $(15)$4,775 
Municipal7,284 374 (9)7,649 
Corporate27,196 1,167 (85)28,278 
Foreign government994 17 (5)1,006 
ABS1,054 13 (1)1,066 
MBS50 1 — 51 
Total fixed income securities$41,344 $1,596 $(115)$42,825 
December 31, 2020    
U.S. government and agencies$2,058 $50 $(1)$2,107 
Municipal7,100 480 (2)7,578 
Corporate29,057 1,986 (26)31,017 
Foreign government921 37 — 958 
ABS840 9 (3)846 
MBS58 1 — 59 
Total fixed income securities$40,034 $2,563 $(32)$42,565 
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
($ in millions)June 30, 2021
Amortized cost, net Fair value
Due in one year or less$1,099 $1,111 
Due after one year through five years20,247 20,845 
Due after five years through ten years13,728 14,278 
Due after ten years5,166 5,474 
 40,240 41,708 
ABS and MBS1,104 1,117 
Total$41,344 $42,825 
Schedule of net investment income
Net investment income
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Fixed income securities$290 $306 $591 $604 
Equity securities13 21 27 31 
Mortgage loans12 8 22 17 
Limited partnership interests651 (117)1,029 (194)
Short-term investments1 2 2 13 
Other48 31 89 62 
Investment income, before expense1,015 251 1,760 533 
Investment expense(41)(31)(78)(67)
Net investment income
$974 $220 $1,682 $466 
Schedule of realized capital gains and losses by asset type
Realized capital gains (losses) by asset type
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Fixed income securities$86 $168 $269 $542 
Equity securities152 248 316 (262)
Mortgage loans13 7 19 (3)
Limited partnership interests12 15 16 (71)
Derivatives(3)14 8 92 
Other27 (12)85 (20)
Realized capital gains (losses)$287 $440 $713 $278 
Schedule of realized capital gains and losses by transaction type
Realized capital gains (losses) by transaction type
($ in millions)
Three months ended June 30,Six months ended June 30,
2021202020212020
Sales$115 $160 $361 $548 
Credit losses12 1 14 (36)
Valuation of equity investments (1)
163 265 330 (326)
Valuation and settlements of derivative instruments(3)14 8 92 
Realized capital gains (losses)$287 $440 $713 $278 
(1)Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Gross realized gains (losses) on sales of fixed income securities
Gross realized gains (losses) on sales of fixed income securities
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Gross realized gains$111 $263 $356 $698 
Gross realized losses (24)(94)(88)(153)
Valuation changes included in net income for investments
Net appreciation (decline) recognized in net income
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Equity securities$132 $196 $226 $(114)
Limited partnership interests carried at fair value
137 (26)278 (54)
Total$269 $170 $504 $(168)
Schedule of credit losses on fixed income securities recognized in earnings
Credit losses recognized in net income
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Assets
Fixed income securities:    
Corporate(1)— $— $(1)
ABS— (2)1 (2)
MBS— 1 — — 
Total fixed income securities(1)(1)1 (3)
Mortgage loans11 6 17 (3)
Limited partnership interests— (1)— (6)
Other investments
Bank loans3 (4)(3)(24)
Agent loans(1)— (1)— 
Total credit losses by asset type$12 $— $14 $(36)
Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans— 1 — — 
Total $12 $1 $14 $(36)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
Fair
value
Gross unrealized
Unrealized net
gains (losses)
June 30, 2021GainsLosses
Fixed income securities$42,825 $1,596 $(115)$1,481 
Short-term investments5,516 — — — 
Derivative instruments— — (3)(3)
Equity method of accounting (“EMA”) limited partnerships (1)
   (1)
Investments classified as held for sale1,980 
Unrealized net capital gains and losses, pre-tax   3,457 
Amounts recognized for:    
Insurance reserves (2)
   (414)
DAC and DSI (3)
   (298)
Reclassification of noncontrolling interest1 
Amounts recognized   (711)
Deferred income taxes   (582)
Unrealized net capital gains and losses, after-tax   $2,164 
December 31, 2020
Fixed income securities$42,565 $2,563 $(32)$2,531 
Short-term investments6,807 — — — 
Derivative instruments — — (3)(3)
EMA limited partnerships
 
 
 
(1)
Investments classified as held for sale2,369 
Unrealized net capital gains and losses, pre-tax   4,896 
Amounts recognized for:   
 
Insurance reserves   (496)
DAC and DSI   (364)
Amounts recognized   (860)
Deferred income taxes   (856)
Unrealized net capital gains and losses, after-tax   $3,180 
(1)Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
(2)The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuity), which are now classified as held for sale.
(3)The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized. This adjustment relates to life insurance products, which are now primarily classified as held for sale.
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains (losses)
($ in millions)Six months ended June 30, 2021
Fixed income securities$(1,050)
Short-term investments— 
Derivative instruments— 
EMA limited partnerships— 
Investments classified as held for sale(389)
Total(1,439)
Amounts recognized for: 
Insurance reserves82 
DAC and DSI66 
Reclassification of noncontrolling interest1 
Amounts recognized149 
Deferred income taxes274 
Decrease in unrealized net capital gains and losses, after-tax$(1,016)
Carrying value for limited partnership interests
Carrying value for limited partnership interests
($ in millions)June 30, 2021December 31, 2020
EMAFair ValueTotalEMAFair ValueTotal
Private equity$4,439 $1,424 $5,863 $2,667 $988 $3,655 
Real estate880 59 939 623 74 697 
Other (1)
271 — 271 211 — 211 
Total (2)
$5,590 $1,483 $7,073 $3,501 $1,062 $4,563 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
(2)Carrying value for limited partnership interests as of June 30, 2021 includes certain investments which were classified as assets held for sale as of December 31, 2020 and March 31, 2021, and transferred to continuing operations in the first and second quarter of 2021, respectively.
Schedule of other investments by type
Other investments by asset type
($ in millions)June 30, 2021December 31, 2020
Bank loans, net$1,584 $772 
Real estate822 659 
Agent loans, net581 — 
Policy loans162 181 
Derivatives47 20 
Other115 59 
Total (1)
$3,311 $1,691 
(1)Other investments as of June 30, 2021 includes certain real estate, agent loans and other investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.
Allowance for credit loss
Rollforward of credit loss allowance for fixed income securities
Three months ended June 30,Six months ended June 30,
($ in millions)2021202020212020
Beginning balance$(1)$(4)$(3)$— 
Credit losses on securities for which credit losses not previously reported— (5)— (8)
Net (increases) decreases related to credit losses previously reported(1)1 1 — 
Reduction of allowance related to sales— 1 — 1 
Write-offs— — — — 
Ending balance (1) (2)
$(2)$(7)$(2)$(7)
(1)Allowance for fixed income securities as of June 30, 2021 comprised $1 million and $1 million of corporate bonds and ABS, respectively. Allowance for fixed income securities as of June 30, 2020 comprised $3 million, $1 million, $2 million and $1 million of municipal bonds, corporate bonds, ABS and MBS, respectively.
(2)Includes $1 million and $4 million of credit loss allowance for fixed income securities that are classified as held for sale as of June 30, 2021 and 2020, respectively.
Rollforward of credit loss allowance for mortgage loans
Three months ended June 30,Six months ended June 30,
($ in millions)2021202020212020
Beginning balance$(45)$(85)$(67)$(3)
Cumulative effect of change in accounting principle— — — (42)
Net decreases (increases) related to credit losses15 (1)37 (41)
Write-offs— — — — 
Ending balance (1)
$(30)$(86)$(30)$(86)
(1)Includes $23 million and $75 million of credit loss allowance for mortgage loans that are classified as held for sale as of June 30, 2021 and 2020, respectively.
Rollforward of credit loss allowance for bank loans
($ in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Beginning balance$(60)$(79)$(67)$— 
Cumulative effect of change in accounting principle— — — (53)
Net decreases (increases) related to credit losses6 (3)4 (30)
Reduction of allowance related to sales2 1 11 2 
Write-offs— 5 — 5 
Ending balance (1)
$(52)$(76)$(52)$(76)
(1)Includes $8 million and $20 million of credit loss allowance for bank loans that are classified as held for sale as of June 30, 2021 and 2020, respectively.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ in millions)Less than 12 months12 months or more
Total
unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
June 30, 2021       
Fixed income securities       
U.S. government and agencies109 $3,926 $(15)— $— $— $(15)
Municipal479 800 (9)1 4 — (9)
Corporate749 4,868 (71)16 61 (14)(85)
Foreign government50 224 (5)— — — (5)
ABS23 198 (1)8 15 — (1)
MBS18 2 — 50 — — — 
Total fixed income securities1,428 $10,018 $(101)75 $80 $(14)$(115)
Investment grade fixed income securities1,316 $9,205 $(85)59 $16 $— $(85)
Below investment grade fixed income securities112 813 (16)16 64 (14)(30)
Total fixed income securities1,428 $10,018 $(101)75 $80 $(14)$(115)
December 31, 2020       
Fixed income securities       
U.S. government and agencies26 $215 $(1)— $— $— $(1)
Municipal43 116 (2)— — — (2)
Corporate107 730 (21)14 46 (5)(26)
Foreign government7 7 — — — — — 
ABS21 157 (2)12 43 (1)(3)
MBS11 — — 57 — — — 
Total fixed income securities215 $1,225 $(26)83 $89 $(6)$(32)
Investment grade fixed income securities146 $855 $(8)66 $45 $— $(8)
Below investment grade fixed income securities69 370 (18)17 44 (6)(24)
Total fixed income securities215 $1,225 $(26)83 $89 $(6)$(32)
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution
Gross unrealized losses by unrealized loss position and credit quality as of June 30, 2021
($ in millions)
Investment
grade
Below investment gradeTotal
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)
$(85)$(15)$(100)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)
— (15)(15)
Total unrealized losses$(85)$(30)$(115)
(1)Below investment grade fixed income securities include $12 million that have been in an unrealized loss position for less than twelve months.
(2)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.
(3)No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.
(4)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
($ in millions)June 30, 2021December 31, 2020
2016 and prior2017201820192020CurrentTotalTotal
Below 1.0$9 $— $— $— $— $— $9 $— 
1.0 - 1.2529 — — 14 10 — 53 46 
1.26 - 1.5031 10 29 134 — — 204 201 
Above 1.50118 44 127 171 67 — 527 507 
Amortized cost before allowance$187 $54 $156 $319 $77 $— $793 $754 
Allowance(7)(8)
Amortized cost, net$786 $746 
Bank loans amortized cost by credit quality and year of origination
Bank loans amortized cost by credit rating and year of origination
($ in millions)June 30, 2021December 31, 2020
2016 and prior2017201820192020CurrentTotalTotal
BBB$— $5 $7 $13 $8 $58 $91 $38 
BB9 17 28 28 31 443 556 168 
B2 41 70 54 94 582 843 456 
CCC and below11 23 18 49 12 25 138 161 
Amortized cost before allowance$22 $86 $123 $144 $145 $1,108 $1,628 $823 
Allowance(44)(51)
Amortized cost, net$1,584 $772