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Investments (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities Available-for-Sale by Sector

The following table presents fixed maturity securities available-for-sale (“AFS”) by sector. U.S. corporate and foreign corporate sectors include redeemable preferred stock. Residential mortgage-backed securities (“RMBS”) includes agency, prime, prime investor, non-qualified residential mortgage, alternative, reperforming and sub-prime mortgage-backed securities. Asset-backed securities and collateralized loan obligations (collectively, “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.”


						March 31, 2023																														December 31, 2022
						Amortized Cost												Gross Unrealized												Estimated Fair Value						Amortized Cost												Gross Unrealized												Estimated Fair Value
Sector												Allowance for Credit Loss						Gains						Losses																		Allowance for Credit Loss						Gains						Losses
						(In millions)
U.S. corporate						$	88,625					$	(63)					$	1,589					$	7,669					$	82,482					$	88,466					$	(29)					$	1,133					$	9,540					$	80,030
Foreign corporate						59,903						(2)						1,387						7,003						54,285						59,696						(5)						1,213						8,332						52,572
Foreign government						49,804						(117)						2,225						3,801						48,111						50,047						(130)						1,876						5,046						46,747
U.S. government and agency						35,183						—						531						2,836						32,878						35,658						—						431						3,860						32,229
RMBS						29,174						—						214						2,845						26,543						29,496						—						187						3,518						26,165
ABS & CLO						17,927						—						35						992						16,970						17,991						—						23						1,192						16,822
Municipals						13,414						—						512						1,329						12,597						13,548						—						317						1,713						12,152
CMBS						10,932						(11)						61						994						9,988						11,123						(19)						59						1,100						10,063
Total fixed maturity securities AFS						$	304,962					$	(193)					$	6,554					$	27,469					$	283,854					$	306,025					$	(183)					$	5,239					$	34,301					$	276,780

Available-for-sale fixed maturity securities by contractual maturity date

The amortized cost, net of ACL, and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2023:


						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						$	8,215					$	52,504					$	52,792					$	133,236					$	58,022					$	304,769
Estimated fair value						$	8,174					$	51,410					$	50,416					$	120,353					$	53,501					$	283,854

Continuous Gross Unrealized Losses for Fixed Maturity Securities Available-for-Sale

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.


						March 31, 2023																								December 31, 2022
						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						Estimated Fair Value						Gross Unrealized Losses
						(Dollars in millions)
U.S. corporate						$	33,635					$	2,628					$	24,769					$	5,000					$	55,210					$	7,573					$	6,484					$	1,965
Foreign corporate						18,388						1,999						21,446						5,004						31,932						5,999						8,956						2,332
Foreign government						8,993						719						14,933						3,078						16,568						2,170						8,308						2,874
U.S. government and agency						13,610						1,001						7,617						1,835						20,436						2,784						4,177						1,076
RMBS						9,719						583						12,075						2,262						16,223						1,890						6,650						1,628
ABS & CLO						3,998						138						10,890						854						10,924						712						4,326						480
Municipals						3,067						275						3,770						1,054						7,277						1,514						482						199
CMBS						3,875						240						4,905						754						6,890						764						2,037						335
Total fixed maturity securities AFS						$	95,285					$	7,583					$	100,405					$	19,841					$	165,460					$	23,406					$	41,420					$	10,889
Investment grade						$	90,702					$	7,360					$	95,314					$	18,978					$	157,654					$	22,713					$	38,785					$	10,298
Below investment grade						4,583						223						5,091						863						7,806						693						2,635						591
Total fixed maturity securities AFS						$	95,285					$	7,583					$	100,405					$	19,841					$	165,460					$	23,406					$	41,420					$	10,889
Total number of securities in an unrealized loss position						9,207												9,689												15,204												4,303

Debt Securities, Available-for-sale, Allowance for Credit Loss

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


			U.S. Corporate						Foreign Corporate						Foreign Government												CMBS						Total
Three Months Ended March 31, 2023			(In millions)

Balance, at beginning of period			$	29					$	5					$	130											$	19					$	183
ACL not previously recorded			36						—						—												—						36
Changes for securities with previously recorded ACL			—						—						(13)												3						(10)
Securities sold or exchanged			(2)						(3)						—												(11)						(16)
Write-offs			—						—						—												—						—
Balance, at end of period			$	63					$	2					$	117											$	11					$	193
Three Months Ended March 31, 2022
Balance, at beginning of period			$	30					$	28					$	19											$	14					$	91
ACL not previously recorded			13						67						207												—						287
Changes for securities with previously recorded ACL			—						7						—												—						7
Securities sold or exchanged			(8)						—						—												—						(8)
Write-offs			(22)						—						—												—						(22)
Balance, at end of period			$	13					$	102					$	226											$	14					$	355

Debt Securities, Trading, and Equity Securities, FV-NI

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



						March 31, 2023																		December 31, 2022
						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Security Type
												(In millions)
Common stock						$	1,333					$	236					$	1,569					$	1,347					$	195					$	1,542
Non-redeemable preferred stock						133						(7)						126						148						(6)						142
Total						$	1,466					$	229					$	1,695					$	1,495					$	189					$	1,684

________________

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

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.


						March 31, 2023																		December 31, 2022

						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						$	7,983					$	537					$	8,520					$	7,945					$	288					$	8,233
FVO Securities						1,201						342						1,543						1,161						274						1,435
Total						$	9,184					$	879					$	10,063					$	9,106					$	562					$	9,668

________________

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

Disclosure of Mortgage Loans Net of Valuation Allowance

Mortgage loans are summarized as follows at:


						March 31, 2023												December 31, 2022
Portfolio Segment						Carrying Value						% of Total						Carrying Value						% of Total
						(Dollars in millions)
Commercial						$	53,697					62.8		%				$	52,502					62.7		%
Agricultural						19,361						22.6						19,306						23.0
Residential						13,206						15.4						12,482						14.9
Total amortized cost						86,264						100.8						84,290						100.6
Allowance for credit loss						(692)						(0.8)						(527)						(0.6)




Total mortgage loans, net						$	85,572					100.0		%				$	83,763					100.0		%

Allowance for Loan and Lease Losses, Provision for Loss, Net

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


			Three Months Ended March 31,
			2023																								2022
			Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total
			(In millions)
Balance, beginning of period			$	218					$	119					$	190					$	527					$	340					$	88					$	206					$	634
Provision (release)			101						49						22						172						(12)						15						(21)						(18)


Charge-offs, net of recoveries			—						(7)						—						(7)						—						—						(1)						(1)

Balance, end of period			$	319					$	161					$	212					$	692					$	328					$	103					$	184					$	615

Disclosure of the mortgage loans portfolio segment by the recorded investment, prior to valuation allowances, by credit quality indicator categories

The amortized cost of commercial mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2023:


Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	864					$	5,118					$	5,672					$	3,515					$	5,169					$	18,049					$	2,885					$	41,272					76.9		%
65% to 75%						—						2,136						1,295						1,056						1,605						3,162						—						9,254						17.2
76% to 80%						—						348						59						100						311						709						—						1,527						2.8
Greater than 80%						—						82						—						18						578						966						—						1,644						3.1
Total						$	864					$	7,684					$	7,026					$	4,689					$	7,663					$	22,886					$	2,885					$	53,697					100.0		%
DSCR:
> 1.20x						$	383					$	6,831					$	6,331					$	4,330					$	6,888					$	20,627					$	2,385					$	47,775					89.0		%
1.00x - 1.20x						481						566						345						69						300						1,201						204						3,166						5.9
<1.00x						—						287						350						290						475						1,058						296						2,756						5.1
Total						$	864					$	7,684					$	7,026					$	4,689					$	7,663					$	22,886					$	2,885					$	53,697					100.0		%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2023:


Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	447					$	2,690					$	2,700					$	2,596					$	1,768					$	6,299					$	1,174					$	17,674					91.3		%
65% to 75%						5						105						317						336						28						617						44						1,452						7.5
76% to 80%						—						—						—						—						—						11						—						11						0.1
Greater than 80%						—						—						—						28						132						54						10						224						1.1
Total						$	452					$	2,795					$	3,017					$	2,960					$	1,928					$	6,981					$	1,228					$	19,361					100.0		%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2023:


Credit Quality Indicator						2023						2022						2021						2020						2019						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
Performance indicators:
Performing						$	243					$	2,653					$	1,459					$	373					$	971					$	7,050					$	—					$	12,749					96.5		%
Nonperforming (1)						—						24						15						12						47						359						—						457						3.5
Total						$	243					$	2,677					$	1,474					$	385					$	1,018					$	7,409					$	—					$	13,206					100.0		%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $148 million and $146 million at March 31, 2023 and December 31, 2022, respectively.

Schedule of Past Due and Non Accrual Mortgage Loans

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 Interest												Nonaccrual
Portfolio Segment						March 31, 2023						December 31, 2022						March 31, 2023						December 31, 2022						March 31, 2023						December 31, 2022
						(In millions)
Commercial						$	24					$	6					$	—					$	6					$	209					$	169
Agricultural						96						124						—						21						260						131
Residential						457						473						9						12						450						462
Total						$	577					$	603					$	9					$	39					$	919					$	762

Disclosure Real Estate and Real Estate Joint Ventures

Real estate investments, by income type, as well as income earned, were as follows at and for the periods indicated:


						March 31, 2023						December 31, 2022						Three Months Ended March 31,
																		2023						2022
Income Type						Carrying Value												Income
						(In millions)
Wholly-owned real estate:
Leased real estate						$	4,537					$	4,523					$	92					$	106
Other real estate						489						487						50						32
Real estate joint ventures						8,129						8,127						(116)						190
Total real estate and real estate joint ventures						$	13,155					$	13,137					$	26					$	328

Fair Value, Concentration of 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:


						March 31,						December 31,
						2023						2022
						(In millions)
Japan						$	24,968					$	24,295
South Korea						$	6,015					$	5,887
Mexico						$	3,904					$	3,463

Securities Lending and Repurchase Agreements

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


									March 31, 2023																								December 31, 2022
									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									$	11,584					$	11,754					$	11,430											$	11,756					$	12,092					$	11,833
Repurchase agreements									$	3,209					$	3,125					$	3,054											$	3,176					$	3,125					$	3,057

__________________

(1)These securities were included within fixed maturity securities AFS, short-term investments and cash equivalents, and fixed maturity securities AFS and short-term investments at March 31, 2023 and December 31, 2022, respectively.

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

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


						March 31, 2023																																				December 31, 2022
						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						$	1,994					$	3,707					$	4,498					$	—					$	10,199											$	1,945					$	5,448					$	3,101					$	—					$	10,494
Foreign government						126						353						789						—						1,268												—						422						922						—						1,344
Agency RMBS						—						287						—						—						287												—						63						191						—						254


Total						$	2,120					$	4,347					$	5,287					$	—					$	11,754											$	1,945					$	5,933					$	4,214					$	—					$	12,092

Repurchase agreements:
U.S. government and agency						$	—					$	3,125					$	—					$	—					$	3,125											$	—					$	3,125					$	—					$	—					$	3,125

__________________

(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.

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:


						March 31, 2023						December 31, 2022
						(In millions)
Invested assets on deposit (regulatory deposits)						$	1,538					$	1,514
Invested assets held in trust (external reinsurance agreements) (1)						913						881
Invested assets pledged as collateral (2)						27,050						25,442
Total invested assets on deposit, held in trust and pledged as collateral						$	29,501					$	27,837

__________________

(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 $2.0 billion and $1.9 billion at March 31, 2023 and December 31, 2022, respectively.

(2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, secured debt and short-term debt related to repurchase agreements and a collateral financing arrangement (see Notes 4, 13 and 14 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report) and derivative transactions (see Note 10).

Schedule of Variable Interest Entities

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:


						March 31, 2023												December 31, 2022
Asset Type						Total Assets						Total Liabilities						Total Assets						Total Liabilities
						(In millions)
Investment funds (primarily other invested assets)						$	270					$	1					$	266					$	1
Renewable energy partnership (primarily other invested assets)						72						—						76						—
Total						$	342					$	1					$	342					$	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:


						March 31, 2023												December 31, 2022
Asset Type						Carrying Amount						Maximum Exposure to Loss (1)						Carrying Amount						Maximum Exposure to Loss (1)
						(In millions)
Fixed maturity securities AFS (2)						$	51,998					$	51,998					$	51,422					$	51,422
Other limited partnership interests						13,463						19,678						13,244						18,906
Other invested assets						1,285						1,355						1,310						1,387
Other investments (Real estate joint ventures and FVO Securities)						956						958						945						948
Total						$	67,702					$	73,989					$	66,921					$	72,663

__________________

(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.

Components of Net Investment Income

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


						Three Months Ended March 31,
Asset Type						2023						2022
						(In millions)
Fixed maturity securities AFS						$	3,139					$	2,714
Equity securities						12						7
FVO Securities						48						(65)
Mortgage loans						1,041						824
Policy loans						119						116
Real estate and real estate joint ventures						26						328
Other limited partnership interests						25						926
Cash, cash equivalents and short-term investments						217						31
Operating joint ventures						19						18
Other						156						126
Subtotal investment income						4,802						5,025
Less: Investment expenses						461						242
Subtotal, net						4,341						4,783
Unit-linked investments						304						(499)
Net investment income						$	4,645					$	4,284

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)						$	38					$	69
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO Securities and Unit-linked investments)						322						(592)
Net realized and unrealized gains (losses) recognized in NII						$	360					$	(523)

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						$	313					$	(507)

Equity method investments NII (primarily real estate joint ventures, other limited partnership interests, tax credit and renewable energy partnerships and operating joint ventures)						$	(93)					$	1,088

Components of Net Investment Gains (Losses)

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


						Three Months Ended March 31,
Asset Type						2023						2022
						(In millions)
Fixed maturity securities AFS						(580)						(598)
Equity securities						48						(50)
Mortgage loans						(164)						44
Real estate and real estate joint ventures (excluding changes in estimated fair value)						18						4
Other limited partnership interests (excluding changes in estimated fair value)						9						18
Other gains (losses)						(23)						66
Subtotal						(692)						(516)
Change in estimated fair value of other limited partnership interests and real estate joint ventures						(5)						7
Non-investment portfolio gains (losses)						13						(8)
Subtotal						8						(1)
Net investment gains (losses)						$	(684)					$	(517)

Transaction Type
Realized gains (losses) on investments sold or disposed						$	(546)					$	(211)
Impairment (losses)						(7)						(40)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings						(182)						(243)
Unrealized net gains (losses) recognized in earnings						38						(15)
Total recognized gains (losses)						(144)						(258)
Non-investment portfolio gains (losses)						13						(8)
Net investment gains (losses)						$	(684)					$	(517)

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						$	40					$	(24)




Foreign currency gains (losses)						$	41					$	123

Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL						$	(546)					$	(211)
Recognized in NII						38						69
Net realized investment gains (losses) from sales and disposals of investments						$	(508)					$	(142)

Schedule of Realized Gain (Loss)

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


						Three Months Ended March 31,
Fixed Maturity Securities AFS						2023						2022
						(In millions)
Proceeds						$	15,044					$	14,024
Gross investment gains						$	293					$	109
Gross investment (losses)						(856)						(403)
Realized gains (losses) on sales and disposals						(563)						(294)
Net credit loss (provision) release (change in ACL recognized in earnings)						(10)						(264)
Impairment (losses)						(7)						(40)
Net credit loss (provision) release and impairment (losses)						(17)						(304)
Net investment gains (losses)						$	(580)					$	(598)

Equity Securities
Realized gains (losses) on sales and disposals						$	7					$	(30)
Unrealized net gains (losses) recognized in earnings						41						(20)
Net investment gains (losses)						$	48					$	(50)