Investments

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investments

8. Investments

See Note 10 for information about the fair value hierarchy for investments and the related valuation methodologies.

Investment Risks and Uncertainties

Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of ACL and impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements.

The determination of ACL and impairments is highly subjective and is based upon quarterly evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available.

The recognition of income on certain investments (e.g. structured securities, including mortgage-backed securities, asset-backed securities (“ABS”), certain structured investment transactions and FVO Securities) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned.

Fixed Maturity Securities AFS    

Fixed Maturity Securities AFS by Sector

The following table presents fixed maturity securities AFS by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. RMBS includes agency, prime, alternative and sub-prime mortgage-backed securities. ABS includes securities collateralized by corporate loans and consumer loans. Municipals includes taxable and tax-exempt revenue bonds and, to a much lesser extent, general obligations of states, municipalities and political subdivisions. Commercial mortgage-backed securities (“CMBS”) primarily includes securities collateralized by multiple commercial mortgage loans. RMBS, ABS and CMBS are, collectively, “Structured Products.”

	December 31,
	2021										2020
	Amortized Cost				Gross Unrealized (1)				Estimated Fair Value		Amortized Cost				Gross Unrealized (1)				Estimated Fair Value
Sector			Allowance for Credit Loss		Gains		Losses						Allowance for Credit Loss		Gains		Losses
	(In millions)
U.S. corporate	$	82,694	$	(30)	$	10,651	$	281	$	93,034	$	79,788	$	(44)	$	13,924	$	252	$	93,416
Foreign corporate	59,124		(28)		5,275		731		63,640		60,995		(16)		8,897		468		69,408
Foreign government	56,848		(19)		5,603		823		61,609		63,243		(21)		8,883		406		71,699
U.S. government and agency	41,068		—		5,807		276		46,599		39,094		—		8,095		89		47,100
RMBS	29,152		—		1,440		188		30,404		28,415		—		2,062		42		30,435
ABS	18,443		—		185		59		18,569		16,963		—		231		75		17,119
Municipals	11,761		—		2,464		13		14,212		10,982		—		2,746		6		13,722
CMBS	11,794		(14)		476		49		12,207		11,331		—		681		102		11,910
Total fixed maturity securities AFS	$	310,884	$	(91)	$	31,901	$	2,420	$	340,274	$	310,811	$	(81)	$	45,519	$	1,440	$	354,809

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(1)Excludes gross unrealized gains (losses) related to assets held-for-sale; these unrealized gains (losses) are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Methodology for Amortization of Premium and Accretion of Discount on Structured Products

Amortization of premium and accretion of discount on Structured Products considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for Structured Products are estimated using inputs obtained from third-party specialists and based on management’s knowledge of the current market. For credit-sensitive and certain prepayment-sensitive Structured Products, the effective yield is recalculated on a prospective basis. For all other Structured Products, the effective yield is recalculated on a retrospective basis.

Maturities of Fixed Maturity Securities AFS

The amortized cost, net of ACL, and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at December 31, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Products		Total Fixed Maturity Securities AFS
	(In millions)
Amortized cost, net of ACL	$	7,513	$	55,284	$	58,215	$	130,406	$	59,375	$	310,793
Estimated fair value	$	7,623	$	57,395	$	63,550	$	150,526	$	61,180	$	340,274

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities AFS not due at a single maturity date have been presented in the year of final contractual maturity. Structured Products are shown separately, as they are not due at a single maturity.

Continuous Gross Unrealized Losses for Fixed Maturity Securities AFS by Sector

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities AFS in an unrealized loss position without an ACL by sector and aggregated by length of time that the securities have been in a continuous unrealized loss position.

	December 31,
	2021								2020
	Less than 12 Months				Equal to or Greater than 12 Months				Less than 12 Months				Equal to or Greater than 12 Months
Sector & Credit Quality	Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)
	(Dollars in millions)
U.S. corporate	$	8,076	$	165	$	1,499	$	116	$	4,338	$	196	$	506	$	50
Foreign corporate	10,011		404		2,834		327		4,856		321		1,255		147
Foreign government	7,812		319		5,377		502		6,795		305		836		100
U.S. government and agency	14,419		138		1,571		138		4,619		87		33		2
RMBS	10,363		158		417		30		1,531		27		152		14
ABS	8,150		39		804		20		3,428		26		2,842		49
Municipals	524		10		65		3		273		6		—		—
CMBS	2,664		31		657		18		1,887		63		612		39
Total fixed maturity securities AFS	$	62,019	$	1,264	$	13,224	$	1,154	$	27,727	$	1,031	$	6,236	$	401
Investment grade	$	58,358	$	1,123	$	12,022	$	1,025	$	24,572	$	829	$	5,841	$	350
Below investment grade	3,661		141		1,202		129		3,155		202		395		51
Total fixed maturity securities AFS	$	62,019	$	1,264	$	13,224	$	1,154	$	27,727	$	1,031	$	6,236	$	401
Total number of securities in an unrealized loss position	4,774				979				2,177				690

________________

(1)Excludes gross unrealized losses related to assets held-for-sale; these unrealized losses are included in AOCI as no component of equity is held-for-sale. See Note 3 for information on the Company’s business dispositions.

Evaluation of Fixed Maturity Securities AFS for Credit Loss

Evaluation and Measurement Methodologies

Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (i) the extent to which the estimated fair value has been below amortized cost, (ii) adverse conditions specifically related to a security, an industry sector or sub-sector, or an economically depressed geographic area, adverse change in the financial condition of the issuer of the security, changes in technology, discontinuance of a segment of the business that may affect future earnings, and changes in the quality of credit enhancement, (iii) payment structure of the security and likelihood of the issuer being able to make payments, (iv) failure of the issuer to make scheduled interest and principal payments, (v) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (vi) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers, (vii) with respect to Structured Products, changes in forecasted cash flows after considering the changes in the financial condition of the underlying loan obligors and quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying assets backing a particular security, and the payment priority within the tranche structure of the security, (viii) changes in the rating of the security by a rating agency, and (ix) other subjective factors, including concentrations and information obtained from regulators.

The methodology and significant inputs used to determine the amount of credit loss are as follows:

•The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security at the time of purchase for fixed-rate securities and the spot rate at the date of evaluation of credit loss for floating-rate securities.

•When determining collectability and the period over which value is expected to recover, the Company applies considerations utilized in its overall credit loss evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management’s single best estimate, the most likely outcome in a range of possible outcomes, after giving consideration to a variety of variables that include, but are not limited to: payment terms of the security; the likelihood that the issuer can service the interest and principal payments; the quality and amount of any credit enhancements; the security’s position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; any private and public sector programs to restructure foreign government securities and municipals; and changes to the rating of the security or the issuer by rating agencies.

•Additional considerations are made when assessing the unique features that apply to certain Structured Products including, but not limited to: the quality of underlying collateral, historical performance of the underlying loan obligors, historical rent and vacancy levels, changes in the financial condition of the underlying loan obligors, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, changes in the quality of credit enhancement and the payment priority within the tranche structure of the security.

With respect to securities that have attributes of debt and equity (“perpetual hybrid securities”), consideration is given in the credit loss analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe unrealized loss position. Consideration is also given as to whether any perpetual hybrid securities with an unrealized loss, regardless of credit rating, have deferred any dividend payments.

After the adoption of credit loss guidance on January 1, 2020, in periods subsequent to the recognition of an initial ACL on a security, the Company reassesses credit loss quarterly. Subsequent increases or decreases in the expected cash flow from the security result in corresponding decreases or increases in the ACL which are recognized in earnings and reported within net investment gains (losses); however, the previously recorded ACL is not reduced to an amount below zero. Full or partial write-offs are deducted from the ACL in the period the security, or a portion thereof, is considered uncollectible. Recoveries of amounts previously written off are recorded to the ACL in the period received. When the Company has the intent-to-sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost, any ACL is written off and the amortized cost is written down to estimated fair value through a charge within net investment gains (losses), which becomes the new amortized cost of the security.

Methodologies used during the year ended December 31, 2019 to evaluate the recoverability of a security in an unrealized loss position using OTTI guidance were similar to those used after the adoption of credit loss guidance on January 1, 2020, except: (i) the length of time estimated fair value had been below amortized cost was considered for securities, and (ii) for non-functional currency denominated securities, the impact from weakening non-functional currencies on securities that were near maturity was considered in the evaluation. In addition, measurement methodologies were similar, except: (i) a fair value floor was not utilized to limit the credit loss recognized in earnings, (ii) the amortized cost of securities was adjusted for the OTTI to the expected recoverable amount and an ACL was not utilized, (iii) subsequent to a credit loss being recognized, increases in expected cash flows from the security did not result in an immediate increase in valuation recognized in earnings through net investment gains (losses) from reduction of the ACL instead such increases in value were recorded as unrecognized unrealized gains in OCI, and (iv) in periods subsequent to the recognition of OTTI on a security, the Company accounted for the impaired security as if it had been purchased on the measurement date of the impairment; accordingly, the discount (or reduced premium) based on the new cost basis was accreted over the remaining term of the security in a prospective manner based on the amount and timing of estimated future cash flows.

Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position

Gross unrealized losses on securities without an ACL increased $986 million for the year ended December 31, 2021 to $2.4 billion primarily due to increases in interest rates and widening of credit spreads.

Gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater were $1.2 billion at December 31, 2021, or 48% of the total gross unrealized losses on securities without an ACL.

Investment Grade Fixed Maturity Securities AFS

Of the $1.2 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $1.0 billion, or 89%, were related to 817 investment grade securities. Unrealized losses on investment grade securities are principally related to widening credit spreads since purchase and, with respect to fixed-rate securities, rising interest rates since purchase.

Below Investment Grade Fixed Maturity Securities AFS

Of the $1.2 billion of gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater, $129 million, or 11%, were related to 162 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. and foreign corporate securities (primarily industrial and consumer), foreign government securities and CMBS and are the result of significantly wider credit spreads resulting from higher risk premiums since purchase, largely due to economic and market uncertainty, as well as with respect to fixed-rate securities, rising interest rates since purchase. Management evaluates U.S. and foreign corporate securities based on several factors such as expected cash flows, financial condition and near-term and long-term prospects of the issuers. Management evaluates foreign government securities based on several factors impacting the issuers such as expected cash flows, financial condition of the issuers and any country specific economic conditions or public sector programs to restructure foreign government securities. Management evaluates CMBS based on actual and projected cash flows after considering the quality of underlying collateral, credit enhancements, expected prepayment speeds, current and forecasted loss severity, the payment terms of the underlying assets backing a particular security and the payment priority within the tranche structure of the security.

Current Period Evaluation

At December 31, 2021, with respect to securities in an unrealized loss position without an ACL, the Company did not intend to sell these securities, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Based on the Company’s current evaluation of its securities in an unrealized loss position without an ACL, the Company concluded that these securities had not incurred a credit loss and should not have an ACL at December 31, 2021.

Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit ratings and collateral valuation.

Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector

The rollforward of ACL for fixed maturity securities AFS by sector is as follows:

	U.S. Corporate		Foreign Corporate		Foreign Government		RMBS		CMBS		Total
For the Year Ended December 31, 2021	(In millions)
Balance at January 1,	$	44	$	16	$	21	$	—	$	—	$	81
Additions:
ACL not previously recorded	48		26		—		—		11		85
Changes for securities with previously recorded ACL	3		(4)		—		—		3		2
Reductions:
Securities sold or exchanged	(52)		(10)		—		—		—		(62)
Securities intended/required to be sold prior to recovery of amortized cost basis	—		—		—		—		—		—
Dispositions (1)	—				(2)		—		—		(2)
Write-offs	(13)		—		—		—		—		(13)
Balance at December 31,	$	30	$	28	$	19	$	—	$	14	$	91

	U.S. Corporate		Foreign Corporate		Foreign Government		RMBS		CMBS		Total
For the Year Ended December 31, 2020	(In millions)
Balance at January 1,	$	—	$	—	$	—	$	—	$	—	$	—
Additions:
ACL not previously recorded	81		18		139		2		—		240
Reductions:
Changes for securities with previously recorded ACL	(5)		(2)		(5)		(2)		—		(14)
Securities sold or exchanged	(31)		—		(102)		—		—		(133)
Securities intended/required to be sold prior to recovery of amortized cost basis	(1)		—		—		—		—		(1)
Dispositions (1)	—		—		(11)		—		—		(11)
Write-offs	—		—		—		—		—		—
Balance at December 31,	$	44	$	16	$	21	$	—	$	—	$	81

________________

(1)In connection with the disposition of MetLife Seguros, ACL was reduced by $2 million for the year ended December 31, 2021. In connection with the disposition of MetLife Seguros de Retiro, ACL was reduced by $11 million for the year ended December 31, 2020. See Note 3 for additional information on the Company’s business dispositions.

Equity Securities

The following table presents equity securities by security type. Common stock includes common stock, exchange traded funds, mutual funds and real estate investment trusts.

	December 31,
	2021						2020
	Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value		Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value
Security Type
			(Dollars in millions)
Common stock	$	784	$	295	$	1,079	$	644	$	135	$	779
Non-redeemable preferred stock	189		1		190		297		3		300
Total	$	973	$	296	$	1,269	$	941	$	138	$	1,079

________________

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

Contractholder-Directed Equity Securities and FVO Securities

The following table presents these investments by asset type. Unit-linked investments are primarily equity securities (including mutual funds) and, to a lesser extent, fixed income investments and cash and cash equivalents.

	December 31,
	2021						2020
	Cost or Amortized Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value		Cost or Amortized Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value
Asset Type
			(Dollars in millions)
Unit-linked investments	$	8,643	$	1,897	$	10,540	$	9,934	$	1,774	$	11,708
FVO Securities	1,243		359		1,602		1,405		206		1,611
Total	$	9,886	$	2,256	$	12,142	$	11,339	$	1,980	$	13,319

________________

(1)Represents cumulative changes in estimated fair value, recognized in earnings, and not in OCI.

Mortgage Loans

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	December 31,
	2021				2020
Portfolio Segment	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	50,553	63.7	%	$	52,434	62.5	%
Agricultural	18,111		22.8		18,128		21.6
Residential	11,196		14.1		13,782		16.4
Total amortized cost	79,860		100.6		84,344		100.5
Allowance for credit loss	(634)		(0.8)		(590)		(0.7)
Subtotal mortgage loans, net	79,226		99.8		83,754		99.8
Residential — FVO	127		0.2		165		0.2
Total mortgage loans, net	$	79,353	100.0	%	$	83,919	100.0	%

The Company elects the FVO for certain residential mortgage loans that are managed on a total return basis, with changes in estimated fair value included in net investment income. See Note 10 for further information.

The amount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($759) million and ($946) million at December 31, 2021 and 2020, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2021 was $180 million, $161 million, and $86 million, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2020 was $209 million, $174 million and $108 million, respectively.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $1.8 billion, $3.3 billion and $4.8 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Rollforward of Allowance for Credit Loss for Mortgage Loans by Portfolio Segment

The rollforward of ACL for mortgage loans, by portfolio segment, is as follows:

	For the Years Ended December 31,
	2021								2020								2019
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance at January 1,	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353	$	238	$	46	$	58	$	342
Adoption of credit loss guidance	—		—		—		—		(118)		35		161		78		—		—		—		—
Provision (release)	88		6		(27)		67		124		22		30		176		8		11		7		26
Initial credit losses on PCD loans (1)	—		—		3		3		—		—		18		18		—		—		—		—
Charge-offs, net of recoveries	—		(24)		(2)		(26)		—		(2)		(32)		(34)		—		(5)		(10)		(15)
HFS transfer	—		—		—		—		—		(1)		—		(1)		—		—		—		—
Balance at December 31,	$	340	$	88	$	206	$	634	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353

__________________

(1)Represents the initial credit losses accounted for as purchased financial assets with credit deterioration (“PCD”).

Allowance for Credit Loss Methodology

After the adoption of credit loss guidance on January 1, 2020, the Company records an allowance for expected lifetime credit loss in earnings within net investment gains (losses) in an amount that represents the portion of the amortized cost basis of mortgage loans that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. In determining the Company’s ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling mortgage loans that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of its mortgage loans adjusted for expected prepayments and any extensions, and (iii) considering past events and current and forecasted economic conditions. Each of the Company’s commercial, agricultural and residential mortgage loan portfolio segments are evaluated separately. The ACL is calculated for each mortgage loan portfolio segment based on inputs unique to each loan portfolio segment. On a quarterly basis, mortgage loans within a portfolio segment that share similar risk characteristics, such as internal risk ratings or consumer credit scores, are pooled for calculation of ACL. On an ongoing basis, mortgage loans with dissimilar risk characteristics (i.e., loans with significant declines in credit quality), collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable) and reasonably expected troubled debt restructurings (“TDRs”) (i.e., the Company grants concessions to borrower that is experiencing financial difficulties) are evaluated individually for credit loss. The ACL for loans evaluated individually are established using the same methodologies for all three portfolio segments. For example, the ACL for a collateral dependent loan is established as the excess of amortized cost over the estimated fair value of the loan’s underlying collateral, less selling cost when foreclosure is probable. Accordingly, the change in the estimated fair value of collateral dependent loans, which are evaluated individually for credit loss, is recorded as a change in the ACL which is recorded on a quarterly basis as a charge or credit to earnings in net investment gains (losses).

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, evaluation and measurement methodologies in determining the ACL were similar, except: (i) credit loss was recognized in earnings within net investment gains (losses) when incurred (when it was probable, based on current information and events, that all amounts due under the loan agreement would not be collected), (ii) pooling of loans with similar risk characteristics was permitted, but not required, (iii) forecasts of economic conditions were not considered in the evaluation, (iv) measurement of the expected lifetime credit loss over the contractual term, or expected term, was not considered in the measurement, and (v) the credit loss for loans evaluated individually could also be determined using either discounted cash flows using the loans’ original effective interest rate or observable market prices.

Commercial and Agricultural Mortgage Loan Portfolio Segments

Commercial and agricultural mortgage loan ACL are calculated in a similar manner. Within each loan portfolio segment, commercial and agricultural, loans are pooled by internal risk rating. Estimated lifetime loss rates, which vary by internal risk rating, are applied to the amortized cost of each loan, excluding accrued investment income, on a quarterly basis to develop the ACL. Internal risk ratings are based on an assessment of the loan’s credit quality, which can change over time. The estimated lifetime loss rates are based on several loan portfolio segment-specific factors, including (i) the Company’s experience with defaults and loss severity, (ii) expected default and loss severity over the forecast period, (iii) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, (iv) loan specific characteristics including loan-to-value (“LTV”) ratios, and (v) internal risk ratings. These evaluations are revised as conditions change and new information becomes available. The Company uses its several decades of historical default and loss severity experience which capture multiple economic cycles. The Company uses a forecast of economic assumptions for a two-year period for most of its commercial and agricultural mortgage loans, while a one-year period is used for loans originated in certain markets. After the applicable forecast period, the Company reverts to its historical loss experience using a straight-line basis over two years. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, recent loss and recovery trend experience as compared to historical loss and recovery experience, and loan specific characteristics including debt service coverage ratios (“DSCR”). In estimating expected lifetime credit loss over the term of its commercial mortgage loans, the Company adjusts for expected prepayment and extension experience during the forecast period using historical prepayment and extension experience considering the expected position in the economic cycle and the loan profile (i.e., floating rate, shorter-term fixed rate and longer-term fixed rate) and after the forecast period using long-term historical prepayment experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. In estimating expected lifetime credit loss over the term of its agricultural mortgage loans, the Company’s experience is much less sensitive to the position in the economic cycle and by loan profile; accordingly, historical prepayment experience is used, while extension terms are not prevalent with the Company’s agricultural mortgage loans.

Commercial mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios, DSCR and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher LTV ratios and lower DSCR. Agricultural mortgage loans are reviewed on an ongoing basis, which review includes, but is not limited to, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios and borrower creditworthiness, as well as reviews on a geographic and property-type basis. The monitoring process for agricultural mortgage loans also focuses on higher risk loans.

For commercial mortgage loans, the primary credit quality indicator is the DSCR, which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the DSCR, the higher the risk of experiencing a credit loss. The Company also reviews the LTV ratio of its commercial mortgage loan portfolio. LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the LTV ratio, the higher the risk of experiencing a credit loss. The DSCR and the values utilized in calculating the ratio are updated routinely. In addition, the LTV ratio is routinely updated for all but the lowest risk loans as part of the Company’s ongoing review of its commercial mortgage loan portfolio.

For agricultural mortgage loans, the Company’s primary credit quality indicator is the LTV ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated.

Commitments to lend: After loans are approved, the Company makes commitments to lend and, typically, borrowers draw down on some or all of the commitments. The timing of mortgage loan funding is based on the commitment expiration dates. A liability for credit loss for unfunded commercial and agricultural mortgage loan commitments that are not unconditionally cancellable is recognized in earnings and is reported within net investment gains (losses). The liability is based on estimated lifetime loss rates as described above and the amount of the outstanding commitments, which for lines of credit, considers estimated utilization rates. When the commitment is funded or expires, the liability is adjusted accordingly.

Residential Mortgage Loan Portfolio Segment

The Company’s residential mortgage loan portfolio is comprised primarily of purchased closed end, amortizing residential mortgage loans, including both performing loans purchased within 12 months of origination and reperforming loans purchased after they have been performing for at least 12 months post-modification. Residential mortgage loans are pooled by loan type (i.e., new origination and reperforming) and pooled by similar risk profiles (including consumer credit score and LTV ratios). Estimated lifetime loss rates, which vary by loan type and risk profile, are applied to the amortized cost of each loan excluding accrued investment income on a quarterly basis to develop the ACL. The estimated lifetime loss rates are based on several factors, including (i) industry historical experience and expected results over the forecast period for defaults, (ii) loss severity, (iii) prepayment rates, (iv) current and forecasted economic conditions including growth, inflation, interest rates and unemployment levels, and (v) loan pool specific characteristics including consumer credit scores, LTV ratios, payment history and home prices. These evaluations are revised as conditions change and new information becomes available. The Company uses industry historical experience which captures multiple economic cycles as the Company has purchased most of its residential mortgage loans in the last five years. The Company uses a forecast of economic assumptions for a two-year period for most of its residential mortgage loans. After the applicable forecast period, the Company immediately reverts to industry historical loss experience.

For residential mortgage loans, the Company’s primary credit quality indicator is whether the loan is performing or nonperforming. The Company generally defines nonperforming residential mortgage loans as those that are 60 or more days past due and/or in nonaccrual status which is assessed monthly. Generally, nonperforming residential mortgage loans have a higher risk of experiencing a credit loss.

Mortgage Loan Concessions

In response to the adverse economic impact of the COVID-19 pandemic, in 2021 and 2020, the Company granted concessions to certain of its commercial, agricultural and residential mortgage loan borrowers, including payment deferrals and other loan modifications. The Company has elected the option under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the Consolidated Appropriations Act, 2021 and the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) (“Interagency Statement”) issued by bank regulatory agencies, not to account for or report qualifying concessions as TDRs and not to classify such loans as either past due or nonaccrual during the payment deferral period. Additionally, in accordance with the FASB’s published response to a COVID-19 pandemic technical inquiry, the Company continues to accrue interest income on such loans that have deferred payment. The Company records an ACL on this accrued interest income through earnings, which is reported within net investment gains (losses).

Commercial

For some commercial mortgage loan borrowers (principally in the retail and hotel sectors), the Company granted concessions which were primarily interest and principal payment deferrals generally ranging from three to four months and, to a much lesser extent, maturity date extensions. Deferred commercial mortgage loan interest and principal payments were $27 million at December 31, 2021.

Agricultural

For some agricultural mortgage loan borrowers (principally in the annual crops and agribusiness sectors), the Company granted concessions which were primarily principal payment deferrals generally ranging from three to 12

months, and covenant changes and, to a much lesser extent, maturity date extensions. Deferred agricultural mortgage loan interest and principal payments were $4 million at December 31, 2021.

Residential

For some residential mortgage loan borrowers, the Company granted concessions which were primarily three-month interest and principal payment deferrals. Deferred residential mortgage loan interest and principal payments were $18 million at December 31, 2021.

Troubled Debt Restructurings

The Company assesses loan concessions prior to the issuance of, or outside the scope of, the CARES Act, the Consolidated Appropriations Act, 2021 and the Interagency Statement on a case-by-case basis to evaluate whether a TDR has occurred. The Company may grant concessions to borrowers experiencing financial difficulties, which, if not significant, are not classified as TDRs, while more significant concessions are classified as TDRs. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concessions granted are considered in determining any ACL recorded.

For both years ended December 31, 2021 and 2020, the Company did not have any commercial mortgage loans modified in a TDR; and did not have a significant amount of agricultural and residential mortgage loans modified in a TDR.

For both years ended December 31, 2021 and 2020, the Company did not have a significant amount of mortgage loans modified in a TDR with subsequent payment default.

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	5,675	$	4,970	$	5,379	$	5,650	$	4,176	$	10,873	$	2,443	$	39,166	77.5	%
65% to 75%	1,461		760		2,601		1,400		594		1,857		—		8,673		17.1
76% to 80%	3		50		414		200		161		218		—		1,046		2.1
Greater than 80%	—		—		4		79		290		1,295		—		1,668		3.3
Total	$	7,139	$	5,780	$	8,398	$	7,329	$	5,221	$	14,243	$	2,443	$	50,553	100.0	%
DSCR:
> 1.20x	$	6,418	$	5,288	$	7,682	$	6,787	$	4,780	$	11,199	$	2,164	$	44,318	87.7	%
1.00x - 1.20x	272		133		76		258		29		1,000		—		1,768		3.5
<1.00x	449		359		640		284		412		2,044		279		4,467		8.8
Total	$	7,139	$	5,780	$	8,398	$	7,329	$	5,221	$	14,243	$	2,443	$	50,553	100.0	%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	2,483	$	2,989	$	1,855	$	2,549	$	922	$	4,325	$	968	$	16,091	88.8	%
65% to 75%	329		383		234		205		40		579		120		1,890		10.4
76% to 80%	—		—		—		—		—		11		—		11		0.1
Greater than 80%	—		—		76		—		—		43		—		119		0.7
Total	$	2,812	$	3,372	$	2,165	$	2,754	$	962	$	4,958	$	1,088	$	18,111	100.0	%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2021:

Credit Quality Indicator	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	695	$	460	$	1,277	$	583	$	283	$	7,448	$	—	$	10,746	96.0	%
Nonperforming (1)	2		5		54		20		4		365		—		450		4.0
Total	$	697	$	465	$	1,331	$	603	$	287	$	7,813	$	—	$	11,196	100.0	%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $70 million and $103 million at December 31, 2021 and 2020, respectively.

LTV ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. The amortized cost of commercial and agricultural mortgage loans with an LTV ratio in excess of 100% was $809 million, or 1% of total commercial and agricultural mortgage loans at December 31, 2021.

Past Due and Nonaccrual Mortgage Loans

The Company has a high quality, well performing mortgage loan portfolio, with 99% of all mortgage loans classified as performing at both December 31, 2021 and 2020. The Company defines delinquency consistent with industry practice, when mortgage loans are past due more than two or more months, as applicable, by portfolio segment. The past due and nonaccrual mortgage loans at amortized cost, prior to ACL, by portfolio segment, were as follows:

	Past Due				Greater than 90 Days Past Due and Still Accruing Interest				Nonaccrual
Portfolio Segment	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
	(In millions)
Commercial	$	13	$	10	$	13	$	7	$	155	$	317
Agricultural	124		252		16		20		225		266
Residential	450		556		8		64		442		534
Total	$	587	$	818	$	37	$	91	$	822	$	1,117

The amortized cost for nonaccrual commercial, agricultural and residential mortgage loans at beginning of year 2020 was $176 million, $137 million and $418 million, respectively. The amortized cost for nonaccrual commercial mortgage loans with no ACL was $0 and $168 million at December 31, 2021 and 2020, respectively. The amortized cost for nonaccrual agricultural mortgage loans with no ACL was $134 million and $178 million at December 31, 2021 and 2020, respectively. There were no nonaccrual residential mortgage loans without an ACL at either December 31, 2021 or 2020.

Purchased Investments with Credit Deterioration

Investments that, as of the date of acquisition, have experienced a more-than-insignificant deterioration in credit quality since origination are classified as PCD. The amortized cost for PCD investments is the purchase price plus an ACL for the initial estimate of expected lifetime credit losses established upon purchase. Subsequent changes in the ACL on PCD investments are recognized in earnings and are reported in net investment gains (losses). The non-credit discount or premium is accreted or amortized to net investment income on an effective yield basis.

The following table reconciles the contractual principal to the purchase price of PCD investments:

	For the Year Ended December 31, 2021
	Contractual Principal		ACL at Acquisition		Non-Credit (Discount) Premium		Purchase Price
	(In millions)
PCD residential mortgage loans	$	514	$	(3)	$	32	$	543

Prior to the adoption of credit loss guidance for the recognition of credit losses on financial instruments, the Company applied applicable guidance for investments acquired with evidence of credit quality deterioration since origination, known as PCI investments. The Company’s PCI investments had an outstanding principal balance of $3.3 billion at December 31, 2019, which represents the contractually required principal and accrued interest payments whether or not currently due and a carrying value (estimated fair value of the investments plus accrued interest) of $2.7 billion at December 31, 2019. Accretion of accretable yield on PCI investments recognized in net investment income was $178 million for the year ended December 31, 2019.

Real Estate and Real Estate Joint Ventures

The Company’s real estate investment portfolio is diversified by property type, geography and income stream, including income from operating leases, operating income and equity in earnings from equity method real estate joint ventures. Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:

	December 31,				For the Years Ended December 31,
	2021		2020		2021		2020		2019
Income Type	Carrying Value				Income
	(In millions)
Leased real estate investments	$	5,146	$	5,450	$	429	$	435	$	380
Other real estate investments	474		419		199		133		192
Real estate joint ventures	6,596		6,064		326		(36)		104
Total real estate and real estate joint ventures	$	12,216	$	11,933	$	954	$	532	$	676

The carrying value of real estate investments acquired through foreclosure was $181 million and $20 million at December 31, 2021 and 2020, respectively. Depreciation expense on real estate investments was $123 million, $123 million and $100 million for the years ended December 31, 2021, 2020 and 2019, respectively. Real estate investments were net of accumulated depreciation of $883 million and $1.1 billion at December 31, 2021 and 2020, respectively.

Leases

Leased Real Estate Investments - Operating Leases

The Company, as lessor, leases investment real estate, principally commercial real estate for office and retail use, through a variety of operating lease arrangements, which typically include tenant reimbursement for property operating costs and options to renew or extend the lease. In some circumstances, leases may include an option for the lessee to purchase the property. In addition, certain leases of retail space may stipulate that a portion of the income earned is contingent upon the level of the tenants’ revenues. The Company has elected a practical expedient of not separating non-lease components related to reimbursement of property operating costs from associated lease components. These property operating costs have the same timing and pattern of transfer as the related lease component, because they are incurred over the same period of time as the operating lease. Therefore, the combined component is accounted for as a single operating lease. Risk is managed through lessee credit analysis, property type diversification, and geographic diversification. Leased real estate investments and income earned, by property type, were as follows at and for the periods indicated:

	December 31,				For the Years Ended December 31,
	2021		2020		2021		2020		2019
Property Type	Carrying Value				Income
	(In millions)
Leased real estate investments:
Office	$	2,322	$	2,351	$	196	$	188	$	175
Retail	938		1,147		75		93		102
Apartment	828		810		66		62		24
Land	635		621		28		25		21
Industrial	339		332		58		56		46
Hotel	84		96		6		5		7
Other	—		93		—		6		5
Total leased real estate investments	$	5,146	$	5,450	$	429	$	435	$	380

Future contractual receipts under operating leases at December 31, 2021 were $304 million in 2022, $259 million in 2023, $217 million in 2024, $197 million in 2025, $167 million in 2026, $1.2 billion thereafter and, in total, were $2.3 billion.

Leveraged and Direct Financing Leases

The Company has diversified leveraged and direct financing lease portfolios. Its leveraged leases principally include renewable energy generation facilities, rail cars, commercial real estate and commercial aircraft, and its direct financing leases principally include commercial real estate. These assets are leased through a variety of lease arrangements, which may include options to renew or extend the lease and options for the lessee to purchase the property. Residual values are estimated using available third-party data at inception of the lease. Risk is managed through lessee credit analysis, asset allocation, geographic diversification, and ongoing reviews of estimated residual values, using available third-party data and, in certain leases, linking the amount of future rental receipts to changes in inflation rates. Generally, estimated residual values are not guaranteed by the lessee or a third-party.

Investment in leveraged and direct financing leases consisted of the following at:

	December 31,
	2021				2020
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease receivables, net (1)	$	542	$	1,755	$	597	$	2,055
Estimated residual values	560		39		573		42
Subtotal	1,102		1,794		1,170		2,097
Unearned income	(284)		(642)		(318)		(749)
Investment in leases, before ACL	818		1,152		852		1,348
ACL	(31)		(9)		(36)		(8)
Investment in leases, net of ACL	$	787	$	1,143	$	816	$	1,340

__________________

(1)Future contractual receipts under direct financing leases at December 31, 2021 were $100 million in 2022, $107 million in 2023, $91 million in 2024, $90 million in 2025, $102 million in 2026, $1.3 billion thereafter and, in total were $1.8 billion.

Lease receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 10 years, but in certain circumstances can be over 10 years, while the payment periods for direct financing

leases generally range from one to 25 years but in certain circumstances can be over 25 years. For lease receivables, the primary credit quality indicator is whether the lease receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming lease receivables as those that are 90 days or more past due. At both December 31, 2021 and 2020, all leveraged lease receivables were performing. At December 31, 2021 and 2020, 99% and 96% of direct financing lease receivables were performing, respectively.

The deferred income tax liability related to leveraged leases was $272 million and $287 million at December 31, 2021 and 2020, respectively.

The components of income from investment in leveraged and direct financing leases, excluding net investment gains (losses), were as follows:

	For the Years Ended December 31,
	2021				2020				2019
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease investment income	$	34	$	96	$	39	$	106	$	48	$	109
Less: Income tax expense	7		20		8		22		10		23
Lease investment income, net of income tax	$	27	$	76	$	31	$	84	$	38	$	86

After the adoption of credit loss guidance on January 1, 2020, the Company records an allowance for expected lifetime credit loss in earnings within investment gains (losses) in an amount that represents the portion of the investment in leases that the Company does not expect to collect, resulting in the investment in leases being presented at the net amount expected to be collected. In determining the ACL, management applies significant judgment to estimate expected lifetime credit loss, including: (i) pooling leases that share similar risk characteristics, (ii) considering expected lifetime credit loss over the contractual term of the lease, and (iii) considering past events and current and forecasted economic conditions. Leases with dissimilar risk characteristics are evaluated individually for credit loss. Expected lifetime credit loss on leveraged lease receivables is estimated using a probability of default and loss given default model, where the probability of default incorporates third party credit ratings of the lessee and the related historical default data. Direct financing leases principally relate to leases of commercial real estate; accordingly, expected lifetime credit loss is estimated on such lease receivables consistent with the methodology for commercial mortgage loans (see “— Mortgage Loans — Allowance for Credit Loss Methodology”). The Company also assesses the non-guaranteed residual values for recoverability by comparison to the current estimated fair value of the leased asset and considers other relevant market information such as independent third-party forecasts, consulting, asset brokerage and investment banking reports and data, comparable market transactions, and factors such as the competitive dynamics impacting specific industries, technological change and obsolescence, government and regulatory rules, tax policy, potential environmental liabilities and litigation.

During the year ended December 31, 2019, prior to the adoption of credit loss guidance on January 1, 2020, lease impairment losses were recognized in earnings within investment gains (losses) as incurred. Under the incurred loss model, if all amounts due under the lease agreement would not be collected based on current information and events, an impairment loss was recognized in earnings. The impairment loss was recorded as a reduction of the investment in lease and within net investment gains (losses).

Other Invested Assets

Other invested assets is comprised primarily of freestanding derivatives with positive estimated fair values (see Note 9), tax credit and renewable energy partnerships, annuities funding structured settlement claims (see Note 1), direct financing and leveraged leases (see “— Leveraged and Direct Financing Leases”), operating joint ventures (see Note 1) and FHLB common stock (see “— Invested Assets on Deposit, Held in Trust and Pledged as Collateral”).

Tax Credit Partnerships

The carrying value of tax credit partnerships was $947 million and $1.1 billion at December 31, 2021 and 2020, respectively. Losses from tax credit partnerships included within net investment income were $195 million, $226 million and $240 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Cash Equivalents

Cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $9.0 billion and $9.7 billion, principally at estimated fair value, at December 31, 2021 and 2020, respectively.

Net Unrealized Investment Gains (Losses)

Unrealized investment gains (losses) on fixed maturity securities AFS and derivatives and the effect on policyholder liabilities, DAC, VOBA and DSI that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI.

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	December 31,
	2021		2020		2019
	(In millions)
Fixed maturity securities AFS	$	29,461	$	44,415	$	30,083
Derivatives	2,061		1,924		2,209
Other	389		267		310
Subtotal	31,911		46,606		32,602
Amounts allocated from:
Policyholder liabilities	(4,978)		(10,797)		(3,039)
DAC, VOBA and DSI	(3,208)		(4,050)		(2,716)
Subtotal	(8,186)		(14,847)		(5,755)
Deferred income tax benefit (expense)	(6,031)		(8,009)		(6,850)
Net unrealized investment gains (losses)	17,694		23,750		19,997
Net unrealized investment gains (losses) attributable to noncontrolling interests	(23)		(20)		(16)
Net unrealized investment gains (losses) attributable to MetLife, Inc.	$	17,671	$	23,730	$	19,981

The changes in net unrealized investment gains (losses) were as follows:

	For the Years Ended December 31,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	23,730	$	19,981	$	8,655
Cumulative effects of changes in accounting principles, net of income tax	—		—		21
Unrealized investment gains (losses) during the year	(14,695)		14,004		18,778
Unrealized investment gains (losses) relating to:
Policyholder liabilities	5,819		(7,758)		(2,642)
DAC, VOBA and DSI	842		(1,334)		(1,485)
Deferred income tax benefit (expense)	1,978		(1,159)		(3,340)
Net unrealized investment gains (losses)	17,674		23,734		19,987
Net unrealized investment gains (losses) attributable to noncontrolling interests	(3)		(4)		(6)
Balance at December 31,	$	17,671	$	23,730	$	19,981
Change in net unrealized investment gains (losses)	$	(6,056)	$	3,753	$	11,332
Change in net unrealized investment gains (losses) attributable to noncontrolling interests	(3)		(4)		(6)
Change in net unrealized investment gains (losses) attributable to MetLife, Inc.	$	(6,059)	$	3,749	$	11,326

Concentrations of Credit Risk

Investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at estimated fair value at December 31, 2021 and 2020, were in fixed income securities of the Japanese government and its agencies of $32.7 billion and $35.8 billion, respectively, and in fixed income securities of the South Korean government and its agencies of $7.1 billion and $8.0 billion, respectively.

Securities Lending Transactions and Repurchase Agreements

Securities, Collateral and Reinvestment Portfolio

A summary of these transactions and agreements accounted for as secured borrowings were as follows:

	December 31,
	2021						2020
	Securities (1)						Securities (1)
Agreement Type	Estimated Fair Value		Cash Collateral Received from Counterparties (2)		Reinvestment Portfolio at Estimated Fair Value		Estimated Fair Value		Cash Collateral Received from Counterparties (2)		Reinvestment Portfolio at Estimated Fair Value
	(In millions)
Securities lending	$	20,654	$	21,055	$	21,319	$	18,262	$	18,628	$	18,884
Repurchase agreements	$	3,416	$	3,325	$	3,357	$	3,276	$	3,210	$	3,251

__________________

(1)These securities are included within fixed maturity securities AFS and short-term investments.

(2)The liability for cash collateral is included within payables for collateral under securities loaned and other transactions.

Contractual Maturities

Contractual maturities of these transactions and agreements accounted for as secured borrowings were as follows:

	December 31,
	2021										2020
	Remaining Maturities										Remaining Maturities
Security Type	Open (1)		1 Month or Less		Over 1 Month to 6 Months		Over 6 Months to 1 Year		Total		Open (1)		1 Month or Less		Over 1 Month to 6 Months		Over 6 Months to 1 Year		Total
	(In millions)
Cash collateral liability by security type:
Securities lending:
U.S. government and agency	$	5,900	$	7,052	$	7,055	$	—	$	20,007	$	2,946	$	10,553	$	4,009	$	—	$	17,508
Foreign government	—		285		762		—		1,047		—		291		826		—		1,117
U.S. corporate	1		—		—		—		1		3		—		—		—		3
Total	$	5,901	$	7,337	$	7,817	$	—	$	21,055	$	2,949	$	10,844	$	4,835	$	—	$	18,628
Repurchase agreements:
U.S. government and agency	$	—	$	3,325	$	—	$	—	$	3,325	$	—	$	3,210	$	—	$	—	$	3,210

__________________

(1)The related security could be returned to the Company on the next business day, which would require the Company to immediately return the cash collateral.

If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell investments to meet the return obligation, it may have difficulty selling such collateral that is invested in a timely manner, be forced to sell investments in a volatile or illiquid market for less than what otherwise would have been realized under normal market conditions, or both.

The securities lending and repurchase agreements reinvestment portfolios consist principally of high quality, liquid, publicly-traded fixed maturity securities AFS, short-term investments, cash equivalents or cash. If the securities, or the reinvestment portfolio become less liquid, liquidity resources within the general account are available to meet any potential cash demands when securities are put back by the counterparty.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value for all asset classes, except mortgage loans, which are presented at carrying value and were as follows at:

	December 31,
	2021		2020
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,872	$	1,933
Invested assets held in trust (external reinsurance agreements) (1)	1,114		1,124
Invested assets pledged as collateral (2)	24,261		25,884
Total invested assets on deposit, held in trust and pledged as collateral	$	27,247	$	28,941

__________________

(1)Represents assets held in trust related to third-party reinsurance agreements. Excludes assets held in trust related to reinsurance agreements between wholly-owned subsidiaries of $2.1 billion and $2.4 billion at December 31, 2021 and 2020, respectively.

(2)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4), derivative transactions (see Note 9), secured debt and short-term debt related to repurchase agreements (see Note 13), and a collateral financing arrangement (see Note 14).

See “— Securities Lending Transactions and Repurchase Agreements” for information regarding securities supporting securities lending transactions and repurchase agreements and Note 7 for information regarding investments designated to the closed block. In addition, the Company’s investment in FHLB common stock, included within other invested assets, which is considered restricted until redeemed by the issuers, was $769 million and $814 million, at redemption value, at December 31, 2021 and 2020, respectively.

Collectively Significant Equity Method Investments

The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of private equity funds, hedge funds, real estate joint ventures, real estate funds and other funds. The portion of these investments accounted for under the equity method had a carrying value of $23.5 billion at December 31, 2021. The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $7.6 billion at December 31, 2021. Except for certain real estate joint ventures and certain funds, the Company’s investments in its remaining real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities.

As described in Note 1, the Company generally recognizes its share of earnings in its equity method investments within net investment income using a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for the three most recent annual periods.

The following aggregated summarized financial data reflects the latest available financial information and does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities. Aggregate total assets of these entities totaled $1.1 trillion and $704.5 billion at December 31, 2021 and 2020, respectively. Aggregate total liabilities of these entities totaled $149.4 billion and $99.4 billion at December 31, 2021 and 2020, respectively. Aggregate net income (loss) of these entities totaled $231.0 billion, $41.6 billion and $47.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses).

Variable Interest Entities

The Company has invested in legal entities that are VIEs. In certain instances, the Company holds both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, is deemed to be the primary beneficiary or consolidator of the entity. The determination of the VIE’s primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party’s relationship with or involvement in the entity.

Consolidated VIEs

Creditors or beneficial interest holders of VIEs where the Company is the primary beneficiary have no recourse to the general credit of the Company, as the Company’s obligation to the VIEs is limited to the amount of its committed investment.

The following table presents the total assets and total liabilities relating to investment related VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at:

	December 31,
	2021				2020
Asset Type	Total Assets (1)		Total Liabilities		Total Assets (1)		Total Liabilities
	(In millions)
Investment funds (1)	$	292	$	1	$	258	$	1
Renewable energy partnership (1)	79		—		87		—
Other investments (2)	1		—		4		5
Total	$	372	$	1	$	349	$	6

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(1)    Assets of the investment funds and renewable energy partnership primarily consisted of other invested assets.

(2)    Assets of other investments primarily consisted of other assets at December 31, 2021, and cash and cash equivalents at December 31, 2020.

Unconsolidated VIEs

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:

	December 31,
	2021				2020
Asset Type	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS (2)	$	62,654	$	62,654	$	60,115	$	60,115
Other limited partnership interests	13,287		20,720		8,355		14,911
Other invested assets	1,257		1,314		1,320		1,404
Other investments	776		926		619		639
Total	$	77,974	$	85,614	$	70,409	$	77,069

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(1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. For certain of its investments in other invested assets, the Company’s return is in the form of income tax credits which are guaranteed by creditworthy third parties. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitments, reduced by income tax credits guaranteed by third parties of $5 million and $3 million at December 31, 2021 and 2020, respectively. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee.

(2)For variable interests in Structured Products included within fixed maturity securities AFS, the Company’s involvement is limited to that of a passive investor in mortgage-backed or asset-backed securities issued by trusts that do not have substantial equity.

As described in Note 21, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs for each of the years ended December 31, 2021, 2020 and 2019.

The Company securitizes certain residential mortgage loans and acquires an interest in the related RMBS issued. While the Company has a variable interest in the issuer of the securities, it is not the primary beneficiary of the issuer of the securities since it does not have any rights to remove the servicer or veto rights over the servicer’s actions. The resulting gains (losses) from the securitizations are included within net investment gains (losses). The estimated fair value of the related RMBS acquired in connection with the securitizations is included in the carrying amount and maximum exposure to loss for Structured Products presented in the table above.

The Company did not securitize any loans during 2021. The carrying value and the estimated fair value of residential mortgage loans securitized during the year ended December 31, 2020 were $308 million and $313 million, respectively. Gains on securitizations were $5 million and $24 million for the years ended December 31, 2020 and 2019, respectively, which are included within net investment gains (losses). The estimated fair value of RMBS acquired in connection with these securitizations was $0 and $43 million at December 31, 2021 and 2020, respectively.

See Note 10 for information on how the estimated fair value of mortgage loans and RMBS is determined, the valuation approaches and key inputs, their placement in the fair value hierarchy, and for certain RMBS, quantitative information about the significant unobservable inputs and the sensitivity of their estimated fair value to changes in those inputs.

Net Investment Income

The composition of net investment income by asset type was as follows:

	For the Years Ended December 31,
Asset Type	2021		2020		2019
	(In millions)
Fixed maturity securities AFS	$	10,996	$	11,304	$	11,886
Equity securities	36		50		61
FVO Securities	167		140		184
Mortgage loans	3,435		3,518		3,782
Policy loans	474		498		512
Real estate and real estate joint ventures	954		532		676
Other limited partnership interests	4,927		1,000		825
Cash, cash equivalents and short-term investments	103		213		457
Operating joint ventures	77		93		84
Other	223		255		348
Subtotal investment income	21,392		17,603		18,815
Less: Investment expenses	949		1,054		1,422
Subtotal, net	20,443		16,549		17,393
Unit-linked investments	952		568		1,475
Net investment income	$	21,395	$	17,117	$	18,868

Net investment income included realized and unrealized gains (losses) recognized in earnings of $1.1 billion, $655 million, and $1.5 billion for the years ended December 31, 2021, 2020 and 2019, respectively. The amount includes realized gains (losses) on sales and disposals, primarily related to FVO Securities and Unit-linked investments, of $518 million, $422 million and $467 million for the years ended December 31, 2021, 2020 and 2019, respectively. The amount also includes unrealized gains (losses), representing changes in estimated fair value, recognized in earnings, primarily related to FVO Securities and Unit-linked investments, of $616 million, $233 million and $1.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Changes in estimated fair value subsequent to purchase of FVO Securities and Unit-linked investments still held as of the end of the respective periods and included in net investment income were $730 million, $489 million and $1.0 billion for the years ended December 31, 2021, 2020 and 2019, respectively.

Net investment income from equity method investments, comprised primarily of real estate joint ventures, other limited partnership interests, tax credit and renewable energy partnerships and operating joint ventures, was $5.1 billion, $829 million and $795 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Net Investment Gains (Losses)

Net Investment Gains (Losses) by Asset Type and Transaction Type

The composition of net investment gains (losses) by asset type and transaction type was as follows:

	For the Years Ended December 31,
Asset Type	2021		2020		2019
	(In millions)
Fixed maturity securities AFS	$	66	$	297	$	267
Equity securities	108		(137)		134
Mortgage loans	(18)		(213)		(11)
Real estate and real estate joint ventures (excluding changes in estimated fair value)	502		7		399
Other limited partnership interests (excluding changes in estimated fair value)	(6)		(15)		6
Other gains (losses)	131		198		(142)
Subtotal	783		137		653
Change in estimated fair value of other limited partnership interests and real estate joint ventures	45		(4)		(14)
Non-investment portfolio gains (losses)	701		(243)		(195)
Subtotal	746		(247)		(209)
Net investment gains (losses)	$	1,529	$	(110)	$	444
Transaction Type
Realized gains (losses) on investments sold or disposed	$	711	$	634	$	854
Impairment (losses)	(24)		(63)		(261)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings	(86)		(280)		(23)
Unrealized net gains (losses) recognized in earnings	227		(158)		69
Total recognized gains (losses)	141		(438)		46
Non-investment portfolio gains (losses)	701		(243)		(195)
Net investment gains (losses)	$	1,529	$	(110)	$	444

Net realized investment gains (losses) of $1.2 billion, $1.1 billion and $1.3 billion for the years ended December 31, 2021, 2020 and 2019, respectively, represent realized gains (losses) on sales and disposals from all invested asset classes, including realized gains (losses) on sales and disposals recognized in net investment income, primarily related to FVO Securities and Unit-linked investments.

Changes in estimated fair value subsequent to purchase of equity securities still held as of the end of the period included in net investment gains (losses) were $77 million, ($127) million and $122 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Other gains (losses) included $88 million and $129 million reclassified from AOCI to earnings due to the sale of certain investments that were hedged in qualifying cash flow hedges for the years ended December 31, 2021 and 2020, respectively. Other gains (losses) also included a leveraged lease gain of $87 million for the year ended December 31, 2020. Other gains (losses) included tax credit partnership impairment (losses) of ($92) million, leveraged lease impairment (losses) of ($30) million and a renewable energy partnership disposal gain of $46 million for the year ended December 31, 2019.

See Note 3 for information regarding the impact of the Company’s business dispositions included within non-investment portfolio gains (losses).

Net investment gains (losses) includes gains (losses) from foreign currency transactions of ($10) million, $79 million and ($124) million for the years ended December 31, 2021, 2020 and 2019, respectively.

Fixed Maturity Securities AFS and Equity Securities – Composition of Net Investment Gains (Losses)

The composition of net investment gains (losses) for these securities is as follows:

	For the Years Ended December 31,
Fixed Maturity Securities AFS	2021		2020		2019
	(In millions)
Proceeds	$	54,612	$	40,809	$	51,052
Gross investment gains	$	761	$	1,125	$	889
Gross investment (losses)	(656)		(674)		(493)
Realized gains (losses) on sales and disposals	105		451		396
Net credit loss (provision) release (change in ACL recognized in earnings)	(15)		(91)		—
Impairment (loss) (1), (2)	(24)		(63)		(129)
Net credit loss (provision) release and impairment (loss)	(39)		(154)		(129)
Net investment gains (losses)	$	66	$	297	$	267
Equity Securities
Realized gains (losses) on sales and disposals	$	(69)	$	16	$	50
Unrealized net gains (losses) recognized in earnings	177		(153)		84
Net investment gains (losses)	$	108	$	(137)	$	134

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(1)Impairment (loss) by sector for foreign government, consumer corporate, industrial corporate, RMBS and finance corporate securities for the year ended December 31, 2019 were ($81) million, ($23) million, ($22) million, ($2) million and ($1) million, respectively. See “— Rollforward of Allowance for Credit Loss for Fixed Maturity Securities AFS By Sector.” Due to the adoption of credit loss guidance on January 1, 2020, prior period OTTI (loss) is presented as impairment (loss).

(2)After adoption of new guidance on January 1, 2020, impairment (loss) was comprised of intent-to-sell and direct write down losses; prior to January 1, 2020, it was comprised of OTTI losses and intent-to-sell losses.