Investments

12 Months Ended

Dec. 31, 2022

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 and collateralized loan obligations (“ABS & CLO”), 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, prime investor, non-qualified residential mortgage, alternative, reperforming and sub-prime mortgage-backed securities. ABS & CLO includes securities collateralized by consumer loans, corporate loans and broadly syndicated bank 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 & CLO and CMBS are, collectively, “Structured Products.”

	December 31,
	2022										2021
	Amortized Cost				Gross Unrealized				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	$	88,466	$	(29)	$	1,133	$	9,540	$	80,030	$	82,694	$	(30)	$	10,651	$	281	$	93,034
Foreign corporate	59,696		(5)		1,213		8,332		52,572		59,124		(28)		5,275		731		63,640
Foreign government	50,047		(130)		1,876		5,046		46,747		56,848		(19)		5,603		823		61,609
U.S. government and agency	35,658		—		431		3,860		32,229		41,068		—		5,807		276		46,599
RMBS	29,496		—		187		3,518		26,165		29,152		—		1,440		188		30,404
ABS & CLO	17,991		—		23		1,192		16,822		18,443		—		185		59		18,569
Municipals	13,548		—		317		1,713		12,152		11,761		—		2,464		13		14,212
CMBS	11,123		(19)		59		1,100		10,063		11,794		(14)		476		49		12,207
Total fixed maturity securities AFS	$	306,025	$	(183)	$	5,239	$	34,301	$	276,780	$	310,884	$	(91)	$	31,901	$	2,420	$	340,274

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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.

The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $82 million and $22 million at December 31, 2022 and December 31, 2021, respectively, with unrealized gains (losses) of ($3) million and $8 million at December 31, 2022 and December 31, 2021, respectively.

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, 2022:

	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	$	8,235	$	50,977	$	54,016	$	134,023	$	58,591	$	305,842
Estimated fair value	$	8,131	$	49,344	$	50,498	$	115,757	$	53,050	$	276,780

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,
	2022								2021
	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		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses (1)		Estimated Fair Value		Gross Unrealized Losses (1)
	(Dollars in millions)
U.S. corporate	$	55,210	$	7,573	$	6,484	$	1,965	$	8,076	$	165	$	1,499	$	116
Foreign corporate	31,932		5,999		8,956		2,332		10,011		404		2,834		327
Foreign government	16,568		2,170		8,308		2,874		7,812		319		5,377		502
U.S. government and agency	20,436		2,784		4,177		1,076		14,419		138		1,571		138
RMBS	16,223		1,890		6,650		1,628		10,363		158		417		30
ABS & CLO	10,924		712		4,326		480		8,150		39		804		20
Municipals	7,277		1,514		482		199		524		10		65		3
CMBS	6,890		764		2,037		335		2,664		31		657		18
Total fixed maturity securities AFS	$	165,460	$	23,406	$	41,420	$	10,889	$	62,019	$	1,264	$	13,224	$	1,154
Investment grade	$	157,654	$	22,713	$	38,785	$	10,298	$	58,358	$	1,123	$	12,022	$	1,025
Below investment grade	7,806		693		2,635		591		3,661		141		1,202		129
Total fixed maturity securities AFS	$	165,460	$	23,406	$	41,420	$	10,889	$	62,019	$	1,264	$	13,224	$	1,154
Total number of securities in an unrealized loss position	15,204				4,303				4,774				979

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(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.

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.

Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position

Gross unrealized losses on securities without an ACL increased $31.9 billion for the year ended December 31, 2022 to $34.3 billion primarily due to increases in interest rates, widening credit spreads, and the impact of weakening foreign currencies on certain non-functional currency denominated fixed maturity securities.

Gross unrealized losses on securities without an ACL that have been in a continuous gross unrealized loss position for 12 months or greater were $10.9 billion at December 31, 2022, or 32% of the total gross unrealized losses on securities without an ACL.

Investment Grade Fixed Maturity Securities AFS

Of the $10.9 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, $10.3 billion, or 95%, were related to 3,875 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 $10.9 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, $591 million, or 5%, were related to 428 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. corporate and foreign corporate securities (primarily transportation, consumer and communications) and foreign government securities. These unrealized losses 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. corporate 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 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.

Current Period Evaluation

At December 31, 2022, 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, 2022.

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		CMBS		Total
Year Ended December 31, 2022	(In millions)
Balance at January 1,	$	30	$	28	$	19	$	14	$	91
ACL not previously recorded	13		67		207		5		292
Changes for securities with previously recorded ACL	17		2		(48)		—		(29)
Securities sold or exchanged	(9)		(93)		(37)		—		(139)
Dispositions	—		—		—		—		—
Effect of foreign currency translation	—		1		(11)		—		(10)
Write-offs	(22)		—		—		—		(22)
Balance at December 31,	$	29	$	5	$	130	$	19	$	183

	U.S.  Corporate		Foreign Corporate		Foreign Government		CMBS		Total
Year Ended December 31, 2021	(In millions)
Balance at January 1,	$	44	$	16	$	21	$	—	$	81
ACL not previously recorded	48		26		—		11		85
Changes for securities with previously recorded ACL	3		(4)		—		3		2
Securities sold or exchanged	(52)		(10)		—		—		(62)
Dispositions (1)	—		—		(2)		—		(2)
Effect of foreign currency translation	—		—		—		—		—
Write-offs	(13)		—		—		—		(13)
Balance at December 31,	$	30	$	28	$	19	$	14	$	91

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(1)In connection with the disposition of MetLife Seguros, ACL was reduced by $2 million for the year ended December 31, 2021. 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,
	2022						2021
	Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value		Cost		Net Unrealized Gains (Losses) (1)		Estimated Fair Value
Security Type
			(In millions)
Common stock	$	1,347	$	195	$	1,542	$	784	$	295	$	1,079
Non-redeemable preferred stock	148		(6)		142		189		1		190
Total	$	1,495	$	189	$	1,684	$	973	$	296	$	1,269

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(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). FVO Securities includes fixed maturity and equity securities to support asset and liability management strategies for certain insurance products and investments in certain separate accounts.

	December 31,
	2022						2021
	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
			(In millions)
Unit-linked investments	$	7,945	$	288	$	8,233	$	8,643	$	1,897	$	10,540
FVO Securities	1,161		274		1,435		1,243		359		1,602
Total	$	9,106	$	562	$	9,668	$	9,886	$	2,256	$	12,142

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(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,
	2022				2021
Portfolio Segment	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	52,502	62.7	%	$	50,553	63.7	%
Agricultural	19,306		23.0		18,111		22.8
Residential	12,482		14.9		11,196		14.1
Total amortized cost	84,290		100.6		79,860		100.6
Allowance for credit loss	(527)		(0.6)		(634)		(0.8)
Subtotal mortgage loans, net	83,763		100.0		79,226		99.8
Residential — FVO	—		—		127		0.2
Total mortgage loans, net	$	83,763	100.0	%	$	79,353	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 ($744) million and ($759) million at December 31, 2022 and 2021, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at December 31, 2022 was $219 million, $176 million, and $81 million, 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.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $3.1 billion, $1.8 billion and $3.3 billion for the years ended December 31, 2022, 2021 and 2020, respectively.

See “— Real Estate and Real Estate Joint Ventures” for the carrying value of wholly-owned real estate acquired through foreclosure. In addition, for the year ended December 31, 2022, the Company contributed commercial mortgage loans with an amortized cost of $489 million to joint ventures in anticipation of subsequent foreclosure or deed-in-lieu of foreclosure transactions. During the year, the joint ventures completed foreclosure or deed-in-lieu of foreclosure transactions on loans with an amortized cost of $467 million. The real estate collateralizing these foreclosures or deed-in-lieu of foreclosures had an estimated fair value in excess of amortized cost. As a result of the excess of estimated fair value of the collateral over the amortized cost of the commercial mortgage loans, upon consummating the foreclosures or deed-in-lieu of foreclosure transactions, the joint ventures recognized a gain, of which the Company recognized its pro-rata share of $34 million within net investment gains (losses).

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:

	Years Ended December 31,
	2022								2021								2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Balance at January 1,	$	340	$	88	$	206	$	634	$	252	$	106	$	232	$	590	$	246	$	52	$	55	$	353
Adoption of credit loss guidance	—		—		—		—		—		—		—		—		(118)		35		161		78
Provision (release)	(2)		53		(8)		43		88		6		(27)		67		124		22		30		176
Initial credit losses on PCD loans (1)	—		—		—		—		—		—		3		3		—		—		18		18
Charge-offs, net of recoveries	(120)		(22)		(8)		(150)		—		(24)		(2)		(26)		—		(2)		(32)		(34)
HFS transfer	—		—		—		—		—		—		—		—		—		(1)		—		(1)
Balance at December 31,	$	218	$	119	$	190	$	527	$	340	$	88	$	206	$	634	$	252	$	106	$	232	$	590

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(1)Represents the initial credit losses on purchased mortgage loans accounted for as PCD.

Allowance for Credit Loss Methodology

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 TDRs (i.e., the Company grants concessions to a 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).

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.

Troubled Debt Restructurings

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 the year ended December 31, 2022, the Company had two commercial mortgage loans modified in a TDR with both pre-modification and post-modification carrying value, after ACL, of $162 million.

For the year ended December 31, 2021, the Company did not have any commercial mortgage loans modified in a TDR.

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, 2022:

Credit Quality Indicator	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	5,081	$	5,633	$	3,496	$	5,195	$	4,866	$	13,237	$	2,860	$	40,368	76.9	%
65% to 75%	2,321		1,227		1,073		1,613		1,360		1,872		—		9,466		18.0
76% to 80%	64		19		99		467		290		287		—		1,226		2.3
Greater than 80%	33		40		18		421		151		779		—		1,442		2.8
Total	$	7,499	$	6,919	$	4,686	$	7,696	$	6,667	$	16,175	$	2,860	$	52,502	100.0	%
DSCR:
> 1.20x	$	6,705	$	6,410	$	4,441	$	7,123	$	5,981	$	14,107	$	2,860	$	47,627	90.7	%
1.00x - 1.20x	667		128		115		436		274		963		—		2,583		4.9
<1.00x	127		381		130		137		412		1,105		—		2,292		4.4
Total	$	7,499	$	6,919	$	4,686	$	7,696	$	6,667	$	16,175	$	2,860	$	52,502	100.0	%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2022:

Credit Quality Indicator	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	2,594	$	2,708	$	2,600	$	1,690	$	2,364	$	4,276	$	1,171	$	17,403	90.1	%
65% to 75%	177		320		347		177		93		494		131		1,739		9.0
76% to 80%	—		—		—		—		—		11		—		11		0.1
Greater than 80%	—		—		29		76		—		44		4		153		0.8
Total	$	2,771	$	3,028	$	2,976	$	1,943	$	2,457	$	4,825	$	1,306	$	19,306	100.0	%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at December 31, 2022:

Credit Quality Indicator	2022		2021		2020		2019		2018		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	2,071	$	1,450	$	374	$	982	$	439	$	6,693	$	—	$	12,009	96.2	%
Nonperforming (1)	12		9		10		48		15		379		—		473		3.8
Total	$	2,083	$	1,459	$	384	$	1,030	$	454	$	7,072	$	—	$	12,482	100.0	%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $146 million and $70 million at December 31, 2022 and 2021, 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 $732 million, or 1% of total commercial and agricultural mortgage loans, at December 31, 2022.

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, 2022 and 2021. 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				Past Due and Still Accruing				Nonaccrual
Portfolio Segment	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
	(In millions)
Commercial	$	6	$	13	$	6	$	13	$	169	$	155
Agricultural	124		124		21		16		131		225
Residential	473		450		12		8		462		442
Total	$	603	$	587	$	39	$	37	$	762	$	822

The amortized cost for nonaccrual commercial, agricultural and residential mortgage loans at beginning of year 2021 was $317 million, $266 million and $534 million, respectively. The amortized cost for nonaccrual agricultural mortgage loans with no ACL was $7 million and $134 million at December 31, 2022 and 2021, respectively. There were no nonaccrual commercial or residential mortgage loans without an ACL at either December 31, 2022 or 2021.

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:

	Year Ended December 31, 2022
	Contractual Principal		ACL at Acquisition		Non-Credit (Discount) Premium		Purchase Price
	(In millions)
PCD residential mortgage loans	$	48	$	—	$	(3)	$	45

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,				Years Ended December 31,
	2022		2021		2022		2021		2020
Income Type	Carrying Value				Income
	(In millions)
Wholly-owned real estate:
Leased real estate	$	4,523	$	5,146	$	392	$	429	$	435
Other real estate	487		474		252		199		133
Real estate joint ventures	8,127		6,596		556		326		(36)
Total real estate and real estate joint ventures	$	13,137	$	12,216	$	1,200	$	954	$	532

The carrying value of wholly-owned real estate acquired through foreclosure was $182 million and $181 million at December 31, 2022 and 2021, respectively. Depreciation expense on real estate investments was $118 million, $123 million and $123 million for the years ended December 31, 2022, 2021 and 2020, respectively. Real estate investments were net of accumulated depreciation of $863 million and $883 million at December 31, 2022 and 2021, 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,				Years Ended December 31,
	2022		2021		2022		2021		2020
Property Type	Carrying Value				Income
	(In millions)
Leased real estate investments:
Office	$	2,206	$	2,322	$	183	$	196	$	188
Retail	804		938		60		75		93
Apartment	625		828		56		66		62
Land	562		635		26		28		25
Industrial	254		339		62		58		56
Hotel	72		84		5		6		5
Other	—		—		—		—		6
Total leased real estate investments	$	4,523	$	5,146	$	392	$	429	$	435

Future contractual receipts under operating leases at December 31, 2022 were $268 million in 2023, $204 million in 2024, $172 million in 2025, $146 million in 2026, $123 million in 2027, $934 million thereafter and, in total, were $1.8 billion.

Leveraged and Direct Financing Leases

The Company has diversified leveraged and direct financing lease portfolios. Its leveraged leases principally include rail cars, commercial real estate and renewable energy generation facilities, 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,
	2022				2021
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease receivables, net (1)	$	477	$	1,750	$	542	$	1,755
Estimated residual values	517		39		560		39
Subtotal	994		1,789		1,102		1,794
Unearned income	(245)		(586)		(284)		(642)
Investment in leases, before ACL	749		1,203		818		1,152
ACL	(18)		(8)		(31)		(9)
Investment in leases, net of ACL	$	731	$	1,195	$	787	$	1,143

__________________

(1)Future contractual receipts under direct financing leases at December 31, 2022 were $122 million in 2023, $92 million in 2024, $91 million in 2025, $117 million in 2026, $101 million in 2027, $1.2 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 nine years, but in certain circumstances can be over nine 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, 2022 and 2021, all leveraged lease receivables were performing. At December 31, 2022 and 2021, 98% and 99% of direct financing lease receivables were performing, respectively.

The deferred income tax liability related to leveraged leases was $220 million and $272 million at December 31, 2022 and 2021, respectively.

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

	Years Ended December 31,
	2022				2021				2020
	Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases		Leveraged Leases		Direct Financing Leases
	(In millions)
Lease investment income	$	35	$	129	$	34	$	96	$	39	$	106
Less: Income tax expense	7		27		7		20		8		22
Lease investment income, net of income tax	$	28	$	102	$	27	$	76	$	31	$	84

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.

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 FHLBNY 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 $759 million and $947 million at December 31, 2022 and 2021, respectively. Losses from tax credit partnerships included within net investment income were $174 million, $195 million and $226 million for the years ended December 31, 2022, 2021 and 2020, 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 $10.0 billion and $9.0 billion, principally at estimated fair value, at December 31, 2022 and 2021, respectively.

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, were in fixed income securities of the following foreign governments and their agencies:

	December 31,
	2022		2021
	(In millions)
Japan	$	24,295	$	32,723
South Korea	$	5,887	$	7,117
Mexico	$	3,463	N/A

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,
	2022						2021
	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	$	11,756	$	12,092	$	11,833	$	20,654	$	21,055	$	21,319
Repurchase agreements	$	3,176	$	3,125	$	3,057	$	3,416	$	3,325	$	3,357

__________________

(1)These securities were included within fixed maturity securities AFS and short-term investments at December 31, 2022 and within fixed maturity securities AFS at December 31, 2021.

(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,
	2022										2021
	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	$	1,945	$	5,448	$	3,101	$	—	$	10,494	$	5,900	$	7,052	$	7,055	$	—	$	20,007
Foreign government	—		422		922		—		1,344		—		285		762		—		1,047
Agency RMBS	—		63		191		—		254		—		—		—		—		—
U.S. corporate	—		—		—		—		—		1		—		—		—		1
Total	$	1,945	$	5,933	$	4,214	$	—	$	12,092	$	5,901	$	7,337	$	7,817	$	—	$	21,055
Repurchase agreements:
U.S. government and agency	$	—	$	3,125	$	—	$	—	$	3,125	$	—	$	3,325	$	—	$	—	$	3,325

__________________

(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,
	2022		2021
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,514	$	1,872
Invested assets held in trust (external reinsurance agreements) (1)	881		1,114
Invested assets pledged as collateral (2)	25,442		24,261
Total invested assets on deposit, held in trust and pledged as collateral	$	27,837	$	27,247

__________________

(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 $1.9 billion and $2.1 billion at December 31, 2022 and 2021, 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 FHLBNY common stock, included within other invested assets, which is considered restricted until redeemed by the issuer, was $729 million and $769 million, at redemption value, at December 31, 2022 and 2021, respectively.

Collectively Significant Equity Method Investments

The Company held equity method investments of $25.7 billion at December 31, 2022, comprised primarily of other limited partnership interests (private equity funds and hedge funds), real estate joint ventures (including real estate funds), tax credit and renewable energy partnerships and operating joint ventures. The Company’s maximum exposure to loss related to these equity method investments was limited to the carrying value of these investments plus $7.8 billion of unfunded commitments at December 31, 2022.

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 $1.2 trillion and $1.1 trillion at December 31, 2022 and 2021, respectively. Aggregate total liabilities of these entities totaled $148.9 billion and $149.4 billion at December 31, 2022 and 2021, respectively. Aggregate net income (loss) of these entities totaled ($11.8) billion, $231.0 billion and $41.6 billion for the years ended December 31, 2022, 2021 and 2020, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income (loss) 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,
	2022				2021
Asset Type	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Investment funds (primarily other invested assets)	$	266	$	1	$	292	$	1
Renewable energy partnership (primarily other invested assets)	76		—		79		—
Other investments (primarily other assets)	—		—		1		—
Total	$	342	$	1	$	372	$	1

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,
	2022				2021
Asset Type	Carrying Amount		Maximum Exposure to Loss (1)		Carrying Amount		Maximum Exposure to Loss (1)
	(In millions)
Fixed maturity securities AFS (2)	$	51,422	$	51,422	$	62,654	$	62,654
Other limited partnership interests	13,244		18,906		13,287		20,720
Other invested assets	1,310		1,387		1,257		1,314
Other investments	945		948		776		926
Total	$	66,921	$	72,663	$	77,974	$	85,614

__________________

(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. 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, 2022, 2021 and 2020

Net Investment Income

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

	Years Ended December 31,
Asset Type	2022		2021		2020
	(In millions)
Fixed maturity securities AFS	$	11,490	$	10,996	$	11,304
Equity securities	36		36		50
FVO Securities	(127)		167		140
Mortgage loans	3,539		3,435		3,518
Policy loans	460		474		498
Real estate and real estate joint ventures	1,200		954		532
Other limited partnership interests	858		4,927		1,000
Cash, cash equivalents and short-term investments	358		103		213
Operating joint ventures	51		77		93
Other	633		223		255
Subtotal investment income	18,498		21,392		17,603
Less: Investment expenses	1,284		949		1,054
Subtotal, net	17,214		20,443		16,549
Unit-linked investments	(1,298)		952		568
Net investment income	$	15,916	$	21,395	$	17,117
Net Investment Income (“NII”) Information
Net realized and unrealized gains (losses) recognized in NII:
Net realized gains (losses) from sales and disposals (primarily FVO Securities and Unit-linked investments)	$	155	$	518	$	422
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO Securities and Unit-linked investments)	(1,586)		616		233
Net realized and unrealized gains (losses) recognized in NII	$	(1,431)	$	1,134	$	655
Changes in estimated fair value subsequent to purchase of FVO Securities and Unit-linked investments still held at the end of the respective periods and recognized in NII	$	(1,286)	$	730	$	489
Equity method investments NII (primarily real estate joint ventures, other limited partnership interests, tax credit and renewable energy partnerships and operating joint ventures)	$	1,305	$	5,136	$	829

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:

	Years Ended December 31,
Asset Type	2022		2021		2020
	(In millions)
Fixed maturity securities AFS	$	(1,912)	$	66	$	297
Equity securities	(133)		108		(137)
Mortgage loans	21		(18)		(213)
Real estate and real estate joint ventures (excluding changes in estimated fair value)	653		502		7
Other limited partnership interests (excluding changes in estimated fair value)	53		(6)		(15)
Other gains (losses)	178		131		198
Subtotal	(1,140)		783		137
Change in estimated fair value of other limited partnership interests and real estate joint ventures	(14)		45		(4)
Non-investment portfolio gains (losses) (1)	(108)		701		(243)
Subtotal	(122)		746		(247)
Net investment gains (losses)	$	(1,262)	$	1,529	$	(110)
Transaction Type
Realized gains (losses) on investments sold or disposed	$	(880)	$	711	$	634
Impairment (losses)	(40)		(24)		(63)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings	(134)		(86)		(280)
Unrealized net gains (losses) recognized in earnings	(100)		227		(158)
Total recognized gains (losses)	(234)		141		(438)
Non-investment portfolio gains (losses) (1)	(108)		701		(243)
Net investment gains (losses)	$	(1,262)	$	1,529	$	(110)
Net Investment Gains (Losses) (“NIGL”) Information
Changes in estimated fair value subsequent to purchase of equity securities still held at the end of the respective periods and recognized in NIGL	$	(89)	$	77	$	(127)
Other gains (losses) include:
Gains (losses) on disposed investments which were previously in a qualified cash flow hedge relationship	$	38	$	88	$	129
Gains (losses) on leveraged leases and renewable energy partnerships	$	33	$	12	$	87
Foreign currency gains (losses)	$	182	$	(10)	$	79
Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL	$	(880)	$	711	$	634
Recognized in NII	155		518		422
Net realized investment gains (losses) from sales and disposals of investments	$	(725)	$	1,229	$	1,056

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(1)See Note 3 for information regarding the Company’s business dispositions.

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:

	Years Ended December 31,
Fixed Maturity Securities AFS	2022		2021		2020
	(In millions)
Proceeds	$	67,754	$	54,612	$	40,809
Gross investment gains	$	935	$	761	$	1,125
Gross investment (losses)	(2,704)		(656)		(674)
Realized gains (losses) on sales and disposals	(1,769)		105		451
Net credit loss (provision) release (change in ACL recognized in earnings)	(103)		(15)		(91)
Impairment (losses)	(40)		(24)		(63)
Net credit loss (provision) release and impairment (losses)	(143)		(39)		(154)
Net investment gains (losses)	$	(1,912)	$	66	$	297
Equity Securities
Realized gains (losses) on sales and disposals	$	(47)	$	(69)	$	16
Unrealized net gains (losses) recognized in earnings	(86)		177		(153)
Net investment gains (losses)	$	(133)	$	108	$	(137)