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Investments (Tables)
 9 Months Ended
Sep. 30, 2021
Investments [Abstract]  
Portfolio composition
Portfolio composition
($ in millions)September 30, 2021December 31, 2020
Fixed income securities, at fair value$39,989 $42,565 
Equity securities, at fair value3,807 3,168 
Mortgage loans, net752 746 
Limited partnership interests 7,578 4,563 
Short-term investments, at fair value6,428 6,807 
Other, net3,286 1,691 
Total$61,840 $59,540 
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)Amortized cost, netGross unrealized
Fair
value
GainsLosses
September 30, 2021    
U.S. government and agencies$3,035 $22 $(15)$3,042 
Municipal7,117 318 (18)7,417 
Corporate26,515 963 (111)27,367 
Foreign government1,054 12 (7)1,059 
ABS1,057 14 (1)1,070 
MBS33 1 — 34 
Total fixed income securities$38,811 $1,330 $(152)$39,989 
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)September 30, 2021
Amortized cost, net Fair value
Due in one year or less$920 $928 
Due after one year through five years17,788 18,257 
Due after five years through ten years13,763 14,209 
Due after ten years5,250 5,491 
 37,721 38,885 
ABS and MBS1,090 1,104 
Total$38,811 $39,989 
Schedule of net investment income
Net investment income
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Fixed income securities$279 $314 $870 $918 
Equity securities24 18 51 49 
Mortgage loans9 8 31 25 
Limited partnership interests438 123 1,467 (71)
Short-term investments1 2 3 15 
Other50 29 139 91 
Investment income, before expense801 494 2,561 1,027 
Investment expense(37)(30)(115)(97)
Net investment income
$764 $464 $2,446 $930 
Schedule of realized capital gains and losses by asset type
Realized capital gains (losses) by asset type
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Fixed income securities$86 $216 $355 $758 
Equity securities6 114 322 (148)
Mortgage loans— 1 19 (2)
Limited partnership interests(15)15 1 (56)
Derivatives46 (30)54 62 
Other(18)3 67 (17)
Realized capital gains (losses)$105 $319 $818 $597 
Schedule of realized capital gains and losses by transaction type
Realized capital gains (losses) by transaction type
($ in millions)
Three months ended September 30,Nine months ended September 30,
2021202020212020
Sales$80 $214 $441 $762 
Credit losses(12)7 2 (29)
Valuation of equity investments (1)
(9)128 321 (198)
Valuation and settlements of derivative instruments46 (30)54 62 
Realized capital gains (losses)$105 $319 $818 $597 
(1)Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Gross realized gains (losses) on sales of fixed income securities
Gross realized gains (losses) on sales of fixed income securities
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Gross realized gains$104 $228 $460 $926 
Gross realized losses (18)(11)(106)(164)
Valuation changes included in net income for investments
Net appreciation (decline) recognized in net income
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Equity securities$(20)$105 $170 $(5)
Limited partnership interests carried at fair value
137 73 415 20 
Total$117 $178 $585 $15 
Schedule of credit losses on fixed income securities recognized in earnings
Credit losses recognized in net income
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Assets
Fixed income securities:    
Corporate$— $(1)$— $(2)
ABS— — 1 (2)
Total fixed income securities— (1)1 (4)
Mortgage loans— 1 17 (2)
Limited partnership interests— — — (6)
Other investments
Bank loans(13)6 (16)(18)
Agent loans1 — — — 
Total credit losses by asset type$(12)$6 $2 $(30)
Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans— 1 — 1 
Total $(12)$7 $2 $(29)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
Fair
value
Gross unrealized
Unrealized net
gains (losses)
September 30, 2021GainsLosses
Fixed income securities$39,989 $1,330 $(152)$1,178 
Short-term investments6,428 — — — 
Derivative instruments— — (3)(3)
Equity method of accounting (“EMA”) limited partnerships (1)
   — 
Investments classified as held for sale1,796 
Unrealized net capital gains and losses, pre-tax   2,971 
Amounts recognized for:    
Insurance reserves (2)
   (383)
DAC and DSI (3)
   (271)
Reclassification of noncontrolling interest2 
Amounts recognized   (652)
Deferred income taxes   (491)
Unrealized net capital gains and losses, after-tax   $1,828 
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)Nine months ended September 30, 2021
Fixed income securities$(1,353)
Short-term investments— 
Derivative instruments— 
EMA limited partnerships1 
Investments classified as held for sale(573)
Total(1,925)
Amounts recognized for: 
Insurance reserves113 
DAC and DSI93 
Reclassification of noncontrolling interest2 
Amounts recognized208 
Deferred income taxes365 
Decrease in unrealized net capital gains and losses, after-tax$(1,352)
Carrying value for limited partnership interests
Carrying value for limited partnership interests
($ in millions)September 30, 2021December 31, 2020
EMAFair ValueTotalEMAFair ValueTotal
Private equity$4,679 $1,496 $6,175 $2,667 $988 $3,655 
Real estate903 59 962 623 74 697 
Other (1)
441 — 441 211 — 211 
Total (2)
$6,023 $1,555 $7,578 $3,501 $1,062 $4,563 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
(2)Carrying value for limited partnership interests as of September 30, 2021 includes certain investments which were classified as assets held for sale as of December 31, 2020 and March 31, 2021, and transferred to continuing operations in the first and second quarter of 2021, respectively.
Schedule of other investments by type
Other investments by asset type
($ in millions)September 30, 2021December 31, 2020
Bank loans, net$1,592 $772 
Real estate849 659 
Agent loans, net567 — 
Policy loans144 181 
Derivatives20 20 
Other114 59 
Total (1)
$3,286 $1,691 
(1)Other investments as of September 30, 2021 includes certain real estate, agent loans and other investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.
Allowance for credit loss
Rollforward of credit loss allowance for fixed income securities
Three months ended September 30,Nine months ended September 30,
($ in millions)2021202020212020
Beginning balance$(2)$(7)$(3)$— 
Credit losses on securities for which credit losses not previously reported— (1)— (10)
Net (increases) decreases related to credit losses previously reported— (1)1 — 
Reduction of allowance related to sales— 1 — 2 
Write-offs— — — — 
Ending balance (1) (2)
$(2)$(8)$(2)$(8)
(1)Allowance for fixed income securities as of September 30, 2021 comprised $1 million and $1 million of corporate bonds and ABS, respectively. Allowance for fixed income securities as of September 30, 2020 comprised $3 million, $2 million, $2 million and $1 million of municipal bonds, corporate bonds, ABS and MBS, respectively.
(2)Includes $1 million and $4 million of credit loss allowance for fixed income securities that are classified as held for sale as of September 30, 2021 and 2020, respectively.
Rollforward of credit loss allowance for mortgage loans
Three months ended September 30,Nine months ended September 30,
($ in millions)2021202020212020
Beginning balance$(30)$(86)$(67)$(3)
Cumulative effect of change in accounting principle— — — (42)
Net decreases (increases) related to credit losses2 1 39 (40)
Write-offs— — — — 
Ending balance (1)
$(28)$(85)$(28)$(85)
(1)Includes $21 million and $74 million of credit loss allowance for mortgage loans that are classified as held for sale as of September 30, 2021 and 2020, respectively.
Rollforward of credit loss allowance for bank loans
($ in millions)Three months ended September 30,Nine months ended September 30,
2021202020212020
Beginning balance$(52)$(76)$(67)$— 
Cumulative effect of change in accounting principle— — — (53)
Net (increases) decreases related to credit losses(14)10 (10)(20)
Reduction of allowance related to sales2 5 13 7 
Write-offs— — — 5 
Ending balance (1)
$(64)$(61)$(64)$(61)
(1)Includes $7 million and $15 million of credit loss allowance for bank loans that are classified as held for sale as of September 30, 2021 and 2020, respectively.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ 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
September 30, 2021       
Fixed income securities       
U.S. government and agencies112 $2,271 $(14)5 $6 $(1)$(15)
Municipal804 1,205 (17)2 14 (1)(18)
Corporate939 6,816 (96)22 122 (15)(111)
Foreign government66 373 (7)3 2 — (7)
ABS26 92 (1)5 8 — (1)
MBS18 2 — 47 — — — 
Total fixed income securities1,965 $10,759 $(135)84 $152 $(17)$(152)
Investment grade fixed income securities1,813 $9,593 $(115)69 $99 $(5)$(120)
Below investment grade fixed income securities152 1,166 (20)15 53 (12)(32)
Total fixed income securities1,965 $10,759 $(135)84 $152 $(17)$(152)
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 September 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)
$(120)$(20)$(140)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)
— (12)(12)
Total unrealized losses$(120)$(32)$(152)
(1)Below investment grade fixed income securities include $18 million that have been in an unrealized loss position for less than twelve months.
(2)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.
(3)No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.
(4)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
September 30, 2021December 31, 2020
($ in millions)2016 and prior2017201820192020CurrentTotalTotal
Below 1.0$— $— $— $— $— $— $— $— 
1.0 - 1.2511 — — 25 10 — 46 46 
1.26 - 1.5043 5 — 105 — — 153 201 
Above 1.5066 40 146 149 67 92 560 507 
Amortized cost before allowance$120 $45 $146 $279 $77 $92 $759 $754 
Allowance(7)(8)
Amortized cost, net$752 $746 
Bank loans amortized cost by credit quality and year of origination
Bank loans amortized cost by credit rating and year of origination
September 30, 2021December 31, 2020
($ in millions)2016 and prior2017201820192020CurrentTotalTotal
BBB$— $— $6 $14 $7 $68 $95 $38 
BB9 17 20 23 35 548 652 168 
B— 29 58 42 71 581 781 456 
CCC and below3 21 18 47 9 23 121 161 
Amortized cost before allowance$12 $67 $102 $126 $122 $1,220 $1,649 $823 
Allowance(57)(51)
Amortized cost, net$1,592 $772