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Investments
 12 Months Ended
Dec. 31, 2023
Investments [Abstract]  
Investments
Note 5Investments
Portfolio composition
As of December 31,
($ in millions)20232022
Fixed income securities, at fair value$48,865 $42,485 
Equity securities, at fair value2,411 4,567 
Mortgage loans, net822 762 
Limited partnership interests8,380 8,114 
Short-term investments, at fair value5,144 4,173 
Other investments, net1,055 1,728 
Total$66,677 $61,829 
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
Amortized
cost, net		Gross unrealized
Fair
value
($ in millions)GainsLosses
December 31, 2023
U.S. government and agencies$8,624 $114 $(119)$8,619 
Municipal6,049 109 (152)6,006 
Corporate31,951 397 (1,143)31,205 
Foreign government1,286 17 (13)1,290 
ABS1,739 13 (7)1,745 
Total fixed income securities$49,649 $650 $(1,434)$48,865 
December 31, 2022
U.S. government and agencies$8,123 $6 $(231)$7,898 
Municipal6,500 36 (326)6,210 
Corporate28,562 46 (2,345)26,263 
Foreign government997 — (40)957 
ABS1,188 4 (35)1,157 
Total fixed income securities$45,370 $92 $(2,977)$42,485 
Scheduled maturities for fixed income securities
As of December 31, 2023As of December 31, 2022
($ in millions)Amortized
cost, net
Fair
value
Amortized
cost, net		Fair
value
Due in one year or less$3,422 $3,374 $2,870 $2,836 
Due after one year through five years23,218 22,614 26,546 25,217 
Due after five years through ten years12,553 12,273 11,035 9,870 
Due after ten years8,717 8,859 3,731 3,405 
47,910 47,120 44,182 41,328 
ABS1,739 1,745 1,188 1,157 
Total$49,649 $48,865 $45,370 $42,485 
Actual maturities may differ from those scheduled as a result of calls and make-whole payments by the issuers. ABS is shown separately because of potential prepayment of principal prior to contractual maturity dates.
Net investment income
For the years ended December 31,
($ in millions)202320222021
Fixed income securities$1,761 $1,255 $1,148 
Equity securities75 132 100 
Mortgage loans35 33 43 
Limited partnership interests499 985 1,973 
Short-term investments253 82 5 
Other investments169 162 195 
Investment income, before expense2,792 2,649 3,464 
Investment expense(314)(246)(171)
Net investment income$2,478 $2,403 $3,293 
Net gains (losses) on investments and derivatives by asset type
For the years ended December 31,
($ in millions)202320222021
Fixed income securities$(540)$(875)$425 
Equity securities282 (900)520 
Mortgage loans(4)(1)20 
Limited partnership interests4 (191)(52)
Derivatives(84)874 49 
Other investments42 21 122 
Net gains (losses) on investments and derivatives$(300)$(1,072)$1,084 
Net gains (losses) on investments and derivatives by transaction type
For the years ended December 31,
($ in millions)202320222021
Sales$(433)$(832)$578 
Credit losses(99)(54)(42)
Valuation change of equity investments (1)
316 (1,060)499 
Valuation change and settlements of derivatives(84)874 49 
Net gains (losses) on investments and derivatives$(300)$(1,072)$1,084 
(1)Includes valuation change of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Gross realized gains (losses) on sales of fixed income securities
For the years ended December 31,
($ in millions)202320222021
Gross realized gains$115 $136 $587 
Gross realized losses(633)(1,004)(158)
Net appreciation (decline) recognized in net income for assets that are still held
For the years ended December 31,
($ in millions)202320222021
Equity securities$151 $(466)$377 
Limited partnership interests carried at fair value85 (5)435 
Total
$236 $(471)$812 
Credit losses recognized in net income
For the years ended December 31,
($ in millions)202320222021
Assets
Fixed income securities:
Corporate$(24)$(6)$(5)
ABS2 (1)1 
Total fixed income securities(22)(7)(4)
Mortgage loans(4)(1)18 
Limited partnership interests(25)(4)(34)
Other investments
Bank loans(18)(26)(22)
Real estate(29)(16)— 
Total credit losses by asset type$(98)$(54)$(42)
Liabilities
Commitments to fund commercial mortgage loans and bank loans(1)— — 
Total $(99)$(54)$(42)
Unrealized net capital gains and losses included in AOCI
($ in millions)
Fair
value
Gross unrealizedUnrealized net gains (losses)
December 31, 2023GainsLosses
Fixed income securities$48,865 $650 $(1,434)$(784)
Short-term investments5,144 — (1)(1)
Derivative instruments— — (2)(2)
Limited partnership interests (1)
(4)
Unrealized net capital gains and losses, pre-tax(791)
Reclassification of noncontrolling interest13 
Deferred income taxes174 
Unrealized net capital gains and losses, after-tax$(604)
December 31, 2022
Fixed income securities$42,485 $92 $(2,977)$(2,885)
Short-term investments4,173 — (1)(1)
Derivative instruments— — (3)(3)
Limited partnership interests2 
Unrealized net capital gains and losses, pre-tax(2,887)
Reclassification of noncontrolling interest23 
Deferred income taxes609 
Unrealized net capital gains and losses, after-tax$(2,255)
(1)Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
Change in unrealized net capital gains (losses)
 For the years ended December 31,
($ in millions)202320222021
Fixed income securities$2,101 $(3,645)$(1,771)
Short-term investments— (1)— 
Derivative instruments1 — — 
Limited partnerships interests(6)3 — 
Investments classified as held for sale— — (2,369)
Total2,096 (3,643)(4,140)
Reclassification of noncontrolling interest and other (1)
(10)19 864 
Deferred income taxes(435)771 693 
Increase (decrease) in unrealized net capital gains and losses, after-tax$1,651 $(2,853)$(2,583)
(1)2021 includes changes in amounts by which the amortization of DAC would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized.
Mortgage loans The Company’s mortgage loans are commercial mortgage loans collateralized by a variety of commercial real estate property types located across the United States and totaled $822 million and $762 million, net of credit loss allowance, as of December 31, 2023 and 2022, respectively. Substantially all of the commercial mortgage loans are non-recourse to the borrower.
Principal geographic distribution of commercial real estate exceeding 5% of the mortgage loans portfolio
As of December 31,
(% of mortgage loan portfolio carrying value)20232022
California21.9 %24.9 %
Texas17.9 16.3 
Florida7.5 6.4 
Washington5.8 7.3 
Tennessee5.6 6.1 
Ohio5.0 5.6 
Types of properties collateralizing the mortgage loan portfolio
As of December 31,
(% of mortgage loan portfolio carrying value)20232022
Apartment complex30.6 %30.2 %
Retail25.0 27.4 
Warehouse20.0 16.0 
Office15.2 17.5 
Other9.2 8.9 
Total100.0 %100.0 %
Contractual maturities of the mortgage loan portfolio
As of December 31, 2023
($ in millions)Number of loansAmortized cost, netPercent
20245 $88 10.7 %
20256 70 8.5 
202611 166 20.2 
20276 58 7.1 
Thereafter29 440 53.5 
Total57 $822 100.0 %
Limited partnership interests include interests in private equity funds, real estate funds and other funds. Principal factors influencing carrying value appreciation or decline include operating performance, comparable public company earnings multiples, capitalization rates and the economic environment. For equity method limited partnerships, the Company recognizes an impairment loss when evidence demonstrates that the loss is other than temporary. Evidence of a loss in value that is other than temporary may include the absence of an ability to recover the carrying amount of the investment or the inability of the investee to sustain a level of earnings that would justify the carrying amount of the investment. Changes in fair value limited partnerships are recorded through net investment income and therefore are not tested for impairment.
Carrying value for limited partnership interests
As of December 31, 2023As of December 31, 2022
($ in millions)EMAFair ValueTotalEMAFair Value Total
Private equity$6,015 $1,139 $7,154 $5,372 $1,217 $6,589 
Real estate1,059 26 1,085 1,013 29 1,042 
Other (1)
141 — 141 483 — 483 
Total $7,215 $1,165 $8,380 $6,868 $1,246 $8,114 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
Municipal bonds The Company maintains a diversified portfolio of municipal bonds, including tax exempt and taxable securities, which totaled $6.01 billion and $6.21 billion as of December 31, 2023 and 2022, respectively. The balance as of December 31, 2023 includes $4.85 billion of tax exempt securities. The municipal bond portfolio includes general obligations of state and local issuers and revenue bonds (including pre-refunded bonds, which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest).
Principal geographic distribution of municipal bond issuers exceeding 5% of the portfolio
As of December 31,
(% of municipal bond portfolio carrying value)20232022
Texas12.8 %9.6 %
California7.7 8.5 
New York6.3 6.7 
Illinois5.4 5.6 
Pennsylvania5.4 5.4 
Florida4.8 5.0 
Short-term investments Short-term investments, including money market funds, commercial paper, U.S. Treasury bills and other short-term investments, are carried at fair value. As of December 31, 2023 and 2022, the fair value of short-term investments totaled $5.14 billion and $4.17 billion, respectively.
Other investments Other investments primarily consist of bank loans, real estate, policy loans and derivatives. Bank loans are primarily senior secured corporate loans and are carried at amortized cost, net. Policy loans are carried at unpaid principal balances. Real estate is carried at cost less accumulated depreciation. Derivatives are carried at fair value.
Other investments by asset type
As of December 31,
($ in millions)20232022
Bank loans, net$224 $686 
Real estate709 813 
Policy loans119 120 
Derivatives1 1 
Other2 108 
Total $1,055 $1,728 
Concentration of credit risk As of December 31, 2023, the Company is not exposed to any credit concentration risk of a single issuer and its affiliates greater than 10% of the Company’s shareholders’ equity, other than the U.S. government and its agencies.
Securities loaned The Company’s business activities include securities lending programs with third parties, mostly large banks. As of December 31, 2023 and 2022, fixed income and equity securities with a carrying value of $1.83 billion and $1.93 billion, respectively, were on loan under these agreements. Interest income on collateral, net of fees, was zero, $6 million and $1 million in 2023, 2022 and 2021, respectively.
Other investment information Included in fixed income securities are below investment grade assets totaling $4.18 billion and $4.10 billion as of December 31, 2023 and 2022, respectively.
As of December 31, 2023, fixed income securities and short-term investments with a carrying value of $201 million were on deposit with regulatory authorities as required by law.
As of December 31, 2023, the carrying value of fixed income securities and other investments that were non-income producing was $92 million.

Portfolio monitoring and credit losses
Fixed income securities The Company has a comprehensive portfolio monitoring process to identify and evaluate each fixed income security that may require a credit loss allowance.
For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings.
If the Company has not made the decision to sell the fixed income security and it is not more likely than not the Company will be required to sell the fixed income security before recovery of its amortized cost basis, the Company evaluates whether it expects to receive cash flows sufficient to recover the entire amortized cost basis of the security. The Company calculates the estimated recovery value based on the best estimate of future cash flows considering past events, current conditions and reasonable and supportable forecasts. The estimated future cash flows are discounted at the security’s current effective rate and is compared to the amortized cost of the security.
The determination of cash flow estimates is inherently subjective, and methodologies may vary depending on facts and circumstances specific to the security. All reasonably available information relevant to the collectability of the security is considered when developing the estimate of cash flows expected to be collected. That information generally includes, but is not limited to, the remaining payment terms of the security, prepayment speeds, the financial condition and future earnings potential of the issue or issuer, expected defaults, expected recoveries, the value of underlying collateral, origination vintage year, geographic concentration of underlying collateral, available reserves or escrows, current subordination levels, third-party guarantees and other credit enhancements. Other information, such as industry analyst reports and forecasts, credit ratings, financial condition of the bond insurer for insured fixed income securities, and other market data relevant to the realizability of contractual cash flows, may also be considered. The estimated fair value of collateral will be used to estimate recovery value if the Company determines that the security is dependent on the liquidation of collateral for ultimate settlement.
If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed income security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. The portion of the unrealized loss related to factors other than credit remains classified in AOCI. If the Company determines that the fixed income security does not have sufficient cash flow or other information to estimate a recovery value for the security, the Company may conclude that the entire decline in fair value is deemed to be credit related and the loss is recorded in earnings.
When a security is sold or otherwise disposed or when the security is deemed uncollectible and written off, the Company removes amounts previously recognized in the credit loss allowance. Recoveries after write-offs are recognized when received. Accrued interest excluded from the amortized cost of fixed income securities totaled $495 million and $389 million as of December 31, 2023, and 2022, respectively, and is reported within the accrued investment income line of the Consolidated Statements of Financial Position. The Company monitors accrued interest and writes off amounts when they are not expected to be received.
The Company’s portfolio monitoring process includes a quarterly review of all securities to identify instances where the fair value of a security compared to its amortized cost is below internally established thresholds. The process also includes the monitoring of other credit loss indicators such as ratings, ratings downgrades and payment defaults. The securities identified, in addition to other securities for which the Company may have a concern, are evaluated for potential credit losses using all reasonably available information relevant to the collectability or recovery of the security. Inherent in the Company’s evaluation of credit losses for these securities are assumptions and estimates about the financial condition and future earnings potential of the issue or issuer. Some of the factors that may be considered in evaluating whether a decline in fair value requires a credit loss allowance are: 1) the financial condition, near-term and long-term prospects of the issue or issuer, including relevant industry specific market conditions and trends, geographic location and implications of rating agency actions and offering prices; 2) the specific reasons that a security is in an unrealized loss position, including overall market conditions which could affect liquidity; and 3) the extent to which the fair value has been less than amortized cost.
Rollforward of credit loss allowance for fixed income securities
For the years ended December 31,
($ in millions)202320222021
Beginning balance$(13)$(6)$(2)
Credit losses on securities for which credit losses not previously reported(11)(1)(5)
Net (increases) decreases related to credit losses previously reported(11)(6)1 
(Increase) decrease of allowance related to sales and other(1)— — 
Write-offs— — — 
Ending balance$(36)$(13)$(6)
Components of credit loss allowance as of December 31
Corporate bonds$(35)$(11)$(6)
ABS(1)(2)— 
Total$(36)$(13)$(6)
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position (1)
Less than 12 months12 months or more
($ in millions)Number of issuesFair valueUnrealized lossesNumber of issuesFair valueUnrealized lossesTotal unrealized losses
December 31, 2023
Fixed income securities
U.S. government and agencies63 $2,554 $(38)117 $2,513 $(81)$(119)
Municipal271 400 (4)1,784 2,245 (148)(152)
Corporate251 2,225 (48)2,106 17,319 (1,095)(1,143)
Foreign government7 31 — 75 356 (13)(13)
ABS19 64 (1)150 584 (6)(7)
Total fixed income securities611 $5,274 $(91)4,232 $23,017 $(1,343)$(1,434)
Investment grade fixed income securities568 $5,061 $(83)3,864 $20,429 $(1,151)$(1,234)
Below investment grade fixed income securities43 213 (8)368 2,588 (192)(200)
Total fixed income securities611 $5,274 $(91)4,232 $23,017 $(1,343)$(1,434)
December 31, 2022
Fixed income securities
U.S. government and agencies112 $4,900 $(138)75 $2,393 $(93)$(231)
Municipal3,015 3,944 (215)507 740 (111)(326)
Corporate2,085 18,072 (1,389)845 6,105 (956)(2,345)
Foreign government74 739 (22)42 200 (18)(40)
ABS194 874 (27)83 109 (8)(35)
Total fixed income securities5,480 $28,529 $(1,791)1,552 $9,547 $(1,186)$(2,977)
Investment grade fixed income securities4,959 $25,487 $(1,409)1,437 $8,791 $(1,009)$(2,418)
Below investment grade fixed income securities521 3,042 (382)115 756 (177)(559)
Total fixed income securities5,480 $28,529 $(1,791)1,552 $9,547 $(1,186)$(2,977)
(1)Includes fixed income securities with fair values of $32 million and $10 million and unrealized losses of $3 million and $5 million with credit loss alllowances of $8 million and $11 million as of December 31, 2023, and 2022, respectively.
Gross unrealized losses by unrealized loss position and credit quality as of December 31, 2023
($ in millions)
Investment
grade
Below investment gradeTotal
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)
$(1,167)$(173)$(1,340)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)
(67)(27)(94)
Total unrealized losses$(1,234)$(200)$(1,434)
(1)Below investment grade fixed income securities include $5 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)Below investment grade fixed income securities include $25 million that 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.
Investment grade is defined as a security having a National Association of Insurance Commissioners (“NAIC”) designation of 1 or 2, which is comparable to a rating of Aaa, Aa, A or Baa from Moody’s or AAA, AA, A or BBB from S&P Global Ratings (“S&P”), or a comparable internal rating if an externally provided rating is not available. Market prices for certain securities may have credit spreads which imply higher or lower credit quality than the current third-party rating. Unrealized losses on investment grade securities are principally related to an increase in market yields which may include increased risk-free interest rates or wider credit spreads since the time of initial purchase. The unrealized losses are expected to reverse as the securities approach maturity.
ABS in an unrealized loss position were evaluated based on actual and projected collateral losses relative to the securities’ positions in the respective securitization trusts, security specific expectations of cash flows, and credit ratings. This evaluation also takes into consideration credit enhancement, measured in terms of (i) subordination from other classes of securities in the trust that are contractually obligated to absorb losses before the class of security the Company owns, and (ii) the expected impact of other structural features embedded in the securitization trust beneficial to the class of securities the Company owns, such as overcollateralization and excess spread. Municipal bonds in an unrealized loss position were evaluated based on the underlying credit quality of the primary obligor, obligation type and quality of the underlying assets.
As of December 31, 2023, the Company has not made the decision to sell and it is not more likely than not the Company will be required to sell fixed income securities with unrealized losses before recovery of the amortized cost basis.
Loans The Company establishes a credit loss allowance for mortgage loans and bank loans when they are originated or purchased, and for unfunded commitments unless they are unconditionally cancellable by the Company. The Company uses a probability of default and loss given default model for mortgage loans and bank loans to estimate current expected credit losses that considers all relevant information available including past events, current conditions, and reasonable and supportable forecasts over the life of an asset. The Company also considers such factors as historical losses, expected prepayments and various economic factors. For mortgage loans the Company considers origination vintage year and property level information such as debt service coverage, property type, property location and collateral value. For bank loans the Company considers the credit rating of the borrower, credit spreads and type of loan. After the reasonable and supportable forecast period, the Company’s model reverts to historical loss trends.
Loans are evaluated on a pooled basis when they share similar risk characteristics. The Company monitors loans through a quarterly credit monitoring process to determine when they no longer share similar risk characteristics and are to be evaluated individually when estimating credit losses.
Loans are written off against their corresponding allowances when there is no reasonable expectation of recovery. If a loan recovers after a write-off, the estimate of expected credit losses includes the expected recovery.
Accrual of income is suspended for loans that are in default or when full and timely collection of principal and interest payments is not probable. Accrued income receivable is monitored for recoverability and when not expected to be collected is written off through net investment income. Cash receipts on loans on non-accrual status are generally recorded as a reduction of amortized cost.
Accrued interest is excluded from the amortized cost of loans and is reported within the accrued investment income line of the Consolidated Statements of Financial Position.
Accrued interest
As of December 31,
($ in millions)20232022
Mortgage loans$3 $3 
Bank Loans3 3 
Mortgage loans When it is determined a mortgage loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as using collateral value less estimated costs to sell where applicable, including when foreclosure is probable or when repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. When collateral value is used, the mortgage loans may not have a credit loss allowance when the fair value of the collateral exceeds the loan’s
amortized cost. An alternative approach may be utilized to estimate credit losses using the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.
Individual loan credit loss allowances are adjusted for subsequent changes in the fair value of the collateral less costs to sell, when applicable, or present value of the loan’s expected future repayment cash flows.
Debt service coverage ratio is considered a key credit quality indicator when mortgage loan credit loss allowances are estimated. Debt service coverage ratio represents the amount of estimated cash flow from the property available to the borrower to meet principal and interest payment obligations. Debt service coverage ratio estimates are updated annually or more frequently if conditions are warranted based on the Company’s credit monitoring process.
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
December 31, 2023December 31, 2022
($ in millions)2018 and prior2019202020212022CurrentTotalTotal
Below 1.0$— $— $— $— $13 $— $13 $18 
1.0 - 1.2527 12 — — — 2 41 42 
1.26 - 1.5024 4 10 — 30 65 133 151 
Above 1.5065 220 42 184 59 76 646 558 
Amortized cost before allowance$116 $236 $52 $184 $102 $143 $833 $769 
Allowance
(11)(7)
Amortized cost, net$822 $762 
Mortgage loans with a debt service coverage ratio below 1.0 that are not considered impaired primarily relate to instances where the borrower has the financial capacity to fund the revenue shortfalls from the properties for the foreseeable term, the decrease in cash flows from the properties is considered
temporary, or there are other risk mitigating circumstances such as additional collateral, escrow balances or borrower guarantees. Payments on all mortgage loans were current as of December 31, 2023, 2022 and 2021.
Rollforward of credit loss allowance for mortgage loans
For the years ended December 31,
($ in millions)202320222021
Beginning balance$(7)$(6)$(67)
Net (increases) decreases related to credit losses(4)(1)40 
Reduction of allowance related to sales— — 21 
Write-offs— — — 
Ending balance
$(11)$(7)$(6)
Bank loans When it is determined a bank loan shall be evaluated individually, the Company uses various methods to estimate credit losses on individual loans such as the present value of the loan’s expected future repayment cash flows discounted at the loan’s current effective interest rate.
Credit ratings of the borrower are considered a key credit quality indicator when bank loan credit loss allowances are estimated. The ratings are either received from the Securities Valuation Office of the NAIC based on availability of applicable ratings from rating agencies on the NAIC credit rating provider list or a comparable internal rating. The year of origination is determined to be the year in which the asset is acquired.
Bank loans amortized cost by credit rating and year of origination
($ in millions)December 31, 2023December 31, 2022
2018 and prior2019202020212022CurrentTotalTotal
NAIC 2 / BBB$— $— $2 $6 $— $1 $9 $54 
NAIC 3 / BB— — — 21 — 17 38 266 
NAIC 4 / B— 17 1 33 16 86 153 329 
NAIC 5-6 / CCC and below 21 — — 11 5 9 46 94 
Amortized cost before allowance$21 $17 $3 $71 $21 $113 $246 $743 
Allowance (22)(57)
Amortized cost, net$224 $686 
Rollforward of credit loss allowance for bank loans
For the years ended December 31,
($ in millions)202320222021
Beginning balance$(57)$(61)$(67)
Net increases related to credit losses(18)(26)(15)
Reduction of allowance related to sales50 30 21 
Write-offs3 — — 
Ending balance
$(22)$(57)$(61)