Investments

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

9. Investments

Fixed Maturity Securities Available-for-Sale

Fixed Maturity Securities Available-for-Sale by Sector

The following table presents fixed maturity securities 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.”

	June 30, 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	$	89,349	$	(69)	$	1,396	$	8,153	$	82,523	$	88,466	$	(29)	$	1,133	$	9,540	$	80,030
Foreign corporate	59,380		(2)		1,426		7,114		53,690		59,696		(5)		1,213		8,332		52,572
Foreign government	47,946		(115)		2,077		3,914		45,994		50,047		(130)		1,876		5,046		46,747
U.S. government and agency	36,133		—		371		3,375		33,129		35,658		—		431		3,860		32,229
RMBS	31,328		—		193		3,063		28,458		29,496		—		187		3,518		26,165
ABS & CLO	18,428		—		36		984		17,480		17,991		—		23		1,192		16,822
Municipals	13,206		—		444		1,326		12,324		13,548		—		317		1,713		12,152
CMBS	11,275		(11)		48		1,053		10,259		11,123		(19)		59		1,100		10,063
Total fixed maturity securities AFS	$	307,045	$	(197)	$	5,991	$	28,982	$	283,857	$	306,025	$	(183)	$	5,239	$	34,301	$	276,780

The Company held non-income producing fixed maturity securities AFS with an estimated fair value of $127 million and $82 million at June 30, 2023 and December 31, 2022, respectively, with unrealized gains (losses) of ($48) million and ($3) million at June 30, 2023 and December 31, 2022, respectively.

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 June 30, 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	$	8,637	$	51,765	$	52,278	$	133,148	$	61,020	$	306,848
Estimated fair value	$	8,661	$	50,394	$	49,710	$	118,895	$	56,197	$	283,857

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.

	June 30, 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	$	18,094	$	1,008	$	38,883	$	7,107	$	55,210	$	7,573	$	6,484	$	1,965
Foreign corporate	7,641		434		30,224		6,680		31,932		5,999		8,956		2,332
Foreign government	5,304		295		18,868		3,617		16,568		2,170		8,308		2,874
U.S. government and agency	14,685		677		10,567		2,698		20,436		2,784		4,177		1,076
RMBS	10,217		409		14,168		2,654		16,223		1,890		6,650		1,628
ABS & CLO	2,782		79		12,122		905		10,924		712		4,326		480
Municipals	1,595		62		4,917		1,264		7,277		1,514		482		199
CMBS	2,128		98		6,605		951		6,890		764		2,037		335
Total fixed maturity securities AFS	$	62,446	$	3,062	$	136,354	$	25,876	$	165,460	$	23,406	$	41,420	$	10,889
Investment grade	$	59,810	$	2,940	$	129,849	$	24,979	$	157,654	$	22,713	$	38,785	$	10,298
Below investment grade	2,636		122		6,505		897		7,806		693		2,635		591
Total fixed maturity securities AFS	$	62,446	$	3,062	$	136,354	$	25,876	$	165,460	$	23,406	$	41,420	$	10,889
Total number of securities in an unrealized loss position	7,031				12,053				15,204				4,303

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, including transfers in connection with reinsurance transactions, 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 decreased $5.4 billion for the six months ended June 30, 2023 to $28.9 billion primarily due to decreases in interest rates, impairments in connection with a pending reinsurance transaction, to a lesser extent the strengthening of foreign currencies on certain non-functional currency denominated fixed maturity securities and narrowing 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 $25.9 billion at June 30, 2023, or 90% of the total gross unrealized losses on securities without an ACL.

Investment Grade Fixed Maturity Securities AFS

Of the $25.9 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, $25.0 billion, or 97%, were related to 11,122 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 $25.9 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, $897 million, or 3%, were related to 931 below investment grade securities. Unrealized losses on below investment grade securities are principally related to U.S. corporate and foreign corporate securities (primarily consumer, transportation 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 June 30, 2023, 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 June 30, 2023.

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
Three Months Ended June 30, 2023	(In millions)
Balance, at beginning of period	$	63	$	2	$	117	$	11	$	193
ACL not previously recorded	—		—		—		—		—
Changes for securities with previously recorded ACL	6		—		(2)		—		4
Securities sold or exchanged	—		—		—		—		—
Write-offs	—		—		—		—		—
Balance, at end of period	$	69	$	2	$	115	$	11	$	197
Three Months Ended June 30, 2022
Balance, at beginning of period	$	13	$	102	$	226	$	14	$	355
ACL not previously recorded	—		—		—		—		—
Changes for securities with previously recorded ACL	15		(5)		(23)		—		(13)
Securities sold or exchanged	—		(44)		(37)		—		(81)
Write-offs	—		—		—		—		—
Balance, at end of period	$	28	$	53	$	166	$	14	$	261

	U.S.  Corporate		Foreign Corporate		Foreign Government		CMBS		Total
	(In millions)
Six Months Ended June 30, 2023
Balance, at beginning of period	$	29	$	5	$	130	$	19	$	183
ACL not previously recorded	36		—		—		—		36
Changes for securities with previously recorded ACL	6		—		(15)		3		(6)
Securities sold or exchanged	(2)		(3)		—		(11)		(16)
Write-offs	—		—		—		—		—
Balance, at end of period	$	69	$	2	$	115	$	11	$	197
Six Months Ended June 30, 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	15		2		(23)		—		(6)
Securities sold or exchanged	(8)		(44)		(37)		—		(89)
Write-offs	(22)		—		—		—		(22)
Balance, at end of period	$	28	$	53	$	166	$	14	$	261

Equity Securities

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.

	June 30, 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	$	421	$	238	$	659	$	1,347	$	195	$	1,542
Non-redeemable preferred stock	111		(1)		110		148		(6)		142
Total	$	532	$	237	$	769	$	1,495	$	189	$	1,684

________________

(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.

	June 30, 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	$	7,891	$	726	$	8,617	$	7,945	$	288	$	8,233
FVO Securities	1,190		397		1,587		1,161		274		1,435
Total	$	9,081	$	1,123	$	10,204	$	9,106	$	562	$	9,668

________________

(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:

	June 30, 2023				December 31, 2022
Portfolio Segment	Carrying Value (1)		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial (2)	$	60,759	65.4	%	$	52,502	62.7	%
Agricultural	19,822		21.3		19,306		23.0
Residential	13,129		14.1		12,482		14.9
Total amortized cost	93,710		100.8		84,290		100.6
Allowance for credit loss	(724)		(0.8)		(527)		(0.6)
Total mortgage loans	$	92,986	100.0	%	$	83,763	100.0	%

__________________

(1)Includes certain mortgage loans originated for third parties of $8.3 billion at amortized cost ($8.0 billion commercial and $243 million agricultural) and the related ACL of $73 million, with the corresponding mortgage loan secured financing liability of $8.3 billion included in Other liabilities on the consolidated balance sheet. The investment income on these mortgage loans originated for third parties and the interest expense on the mortgage loan secured financing liability were each $215 million for both the three and six months ended June 30, 2023, and were recorded in investment income and investment expenses, respectively, both within net investment income. See Note 1.

(2)Includes commercial mortgage loans to be disposed of in connection with a pending reinsurance transaction, which are carried at the lower of amortized cost or estimated fair value of $210 million, net of the estimated fair value adjustment of $44 million as of June 30, 2023. See Note 1.

The amount of net (discounts) premiums and deferred (fees) expenses, included within total amortized cost, primarily attributable to residential mortgage loans was ($747) million and ($744) million at June 30, 2023 and December 31, 2022, respectively. The accrued interest income excluded from total amortized cost for commercial, agricultural and residential mortgage loans at June 30, 2023 was $269 million, $169 million and $91 million, 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.

Purchases of mortgage loans, consisting primarily of residential mortgage loans, were $193 million and $1.0 billion for the three months and six months ended June 30, 2023, respectively, and $868 million and $1.7 billion for the three months and six months ended June 30, 2022, 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:

	Six Months Ended June 30,
	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)	148		49		13		210		(16)		41		(31)		(6)
Charge-offs, net of recoveries	—		(13)		—		(13)		(119)		(22)		(1)		(142)
Balance, end of period	$	366	$	155	$	203	$	724	$	205	$	107	$	174	$	486

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), such as collateral dependent mortgage loans (i.e., when the borrower is experiencing financial difficulty, including when foreclosure is reasonably possible or probable), 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). Mortgage loans to be disposed of in a reinsurance transaction are carried at the lower of amortized cost or estimated fair value.

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 reverts to industry historical loss experience using a straight-line basis over one year.

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.

Modifications to Borrowers Experiencing Financial Difficulty

The Company may modify mortgage loans to borrowers. Each mortgage loan modification is evaluated to determine whether the borrower was experiencing financial difficulties. Disclosed below are those modifications where the borrower was determined to be experiencing financial difficulties and the mortgage loans were modified by any of the following means, principal forgiveness, interest rate reduction, other-than-insignificant payment delay or term extension. The amount, timing and extent of modifications granted are considered in determining any ACL recorded.

Commercial mortgage loans:

For the three months ended June 30, 2023, the Company granted an additional 12-month term extension on a previously restructured loan with an amortized cost of $158 million and further extended the term of the loan modified in the first quarter of 2023 by an additional three months. These modified loans represent less than 1% of the portfolio segment.

For the six months ended June 30, 2023, the Company granted term extensions on loans with an amortized cost of $222 million. These modifications added a weighted-average of less than one year to the life of the modified loans. These modified loans represent less than 1% of the portfolio segment.

Residential mortgage loans:

For the three months ended June 30, 2023, the Company granted term extensions on loans with an amortized cost of $2 million, other-than-insignificant payment delays on loans with an amortized cost of $5 million, term extensions and other-than-insignificant payment delays on loans with an amortized cost of $5 million and term extensions, other-than-insignificant payment delays and interest rate reductions on loans with an amortized cost of $1 million. These modified loans represent less than 1% of the portfolio segment. These loan modifications added a weighted-average of eight years to the life of the modified loans, allowed for the capitalization or deferral of balances due and reduced the weighted average interest rate of the modified loans from 5.7% to 4.2%.

For the six months ended June 30, 2023, the Company granted term extensions on loans with an amortized cost of $5 million, other-than-insignificant payment delays on loans with an amortized cost of $5 million, term extensions and other-than-insignificant payment delays on loans with an amortized cost of $9 million and term extensions, other-than-insignificant payment delays and interest rate reductions on loans with an amortized cost of $4 million. These modified loans represent less than 1% of the portfolio segment. These loan modifications added a weighted-average of nine years to the life of the modified loans, allowed for the capitalization or deferral of balances due and reduced the weighted average interest rate of the modified loans from 5.8% to 4.2%.

For both the three months and six months ended June 30, 2023, the Company did not have a significant amount of mortgage loans that were modified to borrowers experiencing financial difficulty that are not considered current.

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 June 30, 2023:

Credit Quality Indicator	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	1,448	$	5,123	$	4,652	$	2,110	$	4,294	$	14,278	$	2,927	$	34,832	57.3	%
65% to 75%	128		2,728		1,749		1,703		2,022		6,311		—		14,641		24.1
76% to 80%	—		761		351		340		1,339		1,859		—		4,650		7.7
Greater than 80%	7		144		820		881		1,051		3,733		—		6,636		10.9
Total	$	1,583	$	8,756	$	7,572	$	5,034	$	8,706	$	26,181	$	2,927	$	60,759	100.0	%
DSCR:
> 1.20x	$	1,070	$	7,366	$	7,192	$	4,471	$	7,252	$	22,802	$	1,687	$	51,840	85.3	%
1.00x - 1.20x	513		387		307		35		723		1,858		944		4,767		7.9
<1.00x	—		1,003		73		528		731		1,521		296		4,152		6.8
Total	$	1,583	$	8,756	$	7,572	$	5,034	$	8,706	$	26,181	$	2,927	$	60,759	100.0	%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2023:

Credit Quality Indicator	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
LTV ratios:
Less than 65%	$	726	$	2,801	$	2,653	$	2,705	$	1,775	$	6,193	$	1,226	$	18,079	91.2	%
65% to 75%	28		111		334		273		28		616		135		1,525		7.7
76% to 80%	—		—		—		—		—		11		—		11		0.1
Greater than 80%	17		—		—		—		133		52		5		207		1.0
Total	$	771	$	2,912	$	2,987	$	2,978	$	1,936	$	6,872	$	1,366	$	19,822	100.0	%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at June 30, 2023:

Credit Quality Indicator	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total		% of Total
	(Dollars in millions)
Performance indicators:
Performing	$	363	$	2,622	$	1,479	$	347	$	975	$	6,908	$	—	$	12,694	96.7	%
Nonperforming (1)	1		24		17		14		42		337		—		435		3.3
Total	$	364	$	2,646	$	1,496	$	361	$	1,017	$	7,245	$	—	$	13,129	100.0	%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $153 million and $146 million at June 30, 2023 and December 31, 2022, 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 $1.3 billion, or 2% of total commercial and agricultural mortgage loans, at June 30, 2023.

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 June 30, 2023 and December 31, 2022. 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 Interest				Nonaccrual
Portfolio Segment	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
	(In millions)
Commercial	$	138	$	6	$	19	$	6	$	277	$	169
Agricultural	98		124		22		21		235		131
Residential	435		473		16		12		421		462
Total	$	671	$	603	$	57	$	39	$	933	$	762

The amortized cost for nonaccrual commercial, agricultural and residential mortgage loans at beginning of year 2022 was $155 million, $225 million and $442 million, respectively. The amortized cost for nonaccrual commercial mortgage loans without an ACL was $158 million at June 30, 2023. There were no nonaccrual commercial mortgage loans without an ACL at December 31, 2022. The amortized cost for nonaccrual agricultural mortgage loans without an ACL was $61 million and $7 million at June 30, 2023 and December 31, 2022, respectively. There were no nonaccrual residential mortgage loans without an ACL at June 30, 2023 and December 31, 2022.

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:

	June 30, 2023		December 31, 2022		Three Months Ended June 30,				Six Months Ended June 30,
					2023		2022		2023		2022
Income Type	Carrying Value				Income
	(In millions)
Wholly-owned real estate:
Leased real estate	$	4,366	$	4,523	$	90	$	98	$	182	$	204
Other real estate	491		487		85		68		135		100
Real estate joint ventures	8,188		8,127		(38)		213		(154)		403
Total real estate and real estate joint ventures	$	13,045	$	13,137	$	137	$	379	$	163	$	707

The carrying value of wholly-owned real estate acquired through foreclosure was $189 million and $182 million at June 30, 2023 and December 31, 2022, respectively. Depreciation expense on real estate investments was $30 million and $58 million for the three months and six months ended June 30, 2023, respectively, and $31 million and $59 million for the three months and six months ended June 30, 2022, respectively. Real estate investments were net of accumulated depreciation of $902 million and $863 million at June 30, 2023 and December 31, 2022, 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.

See Note 8 of the Notes to the Consolidated Financial Statements included in the 2022 Annual Report for a summary of leased real estate investments and income earned, by property type.

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.

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.

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.

The investment in leveraged and direct financing leases, net of ACL, was $725 million and $1.4 billion, respectively, at June 30, 2023 and $731 million and $1.2 billion, respectively, at December 31, 2022. The ACL for leveraged and direct financing leases was $21 million and $26 million at June 30, 2023 and December 31, 2022, 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 $6.0 billion and $10.0 billion, principally at estimated fair value, at June 30, 2023 and December 31, 2022, 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:

	June 30,		December 31,
	2023		2022
	(In millions)
Japan	$	23,251	$	24,295
South Korea	$	5,747	$	5,887
Mexico	$	3,861	$	3,463

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:

		June 30, 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		$	11,077	$	11,259	$	11,630	$	11,756	$	12,092	$	11,833
Repurchase agreements		$	3,176	$	3,100	$	3,024	$	3,176	$	3,125	$	3,057

__________________

(1)These securities were included within fixed maturity securities AFS and short-term investments at both June 30, 2023 and December 31, 2022.

(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:

	June 30, 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	$	1,813	$	4,643	$	4,354	$	163	$	10,973	$	1,945	$	5,448	$	3,101	$	—	$	10,494
Foreign government	—		—		—		—		—		—		422		922		—		1,344
Agency RMBS	—		286		—		—		286		—		63		191		—		254
Total	$	1,813	$	4,929	$	4,354	$	163	$	11,259	$	1,945	$	5,933	$	4,214	$	—	$	12,092
Repurchase agreements:
U.S. government and agency	$	—	$	3,100	$	—	$	—	$	3,100	$	—	$	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.

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:

	June 30, 2023		December 31, 2022
	(In millions)
Invested assets on deposit (regulatory deposits)	$	1,559	$	1,514
Invested assets held in trust (external reinsurance agreements) (1)	906		881
Invested assets pledged as collateral (2)	27,069		25,442
Total invested assets on deposit, held in trust and pledged as collateral	$	29,534	$	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 June 30, 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).

See “— Securities Lending Transactions and Repurchase Agreements” for information regarding securities supporting securities lending transactions and repurchase agreements, Note 8 for information regarding investments designated to the closed block and Note 1 for investments to be disposed of in a pending reinsurance transaction. In addition, the Company’s investment in Federal Home Loan Bank of New York common stock, included within other invested assets, which is considered restricted until redeemed by the issuer, was $746 million and $729 million, at redemption value, at June 30, 2023 and December 31, 2022, respectively.

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:

	June 30, 2023				December 31, 2022
Asset Type	Total Assets		Total Liabilities		Total Assets		Total Liabilities
	(In millions)
Investment funds (primarily other invested assets)	$	282	$	1	$	266	$	1
Renewable energy partnership (primarily other invested assets)	69		—		76		—
Total	$	351	$	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:

	June 30, 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)	$	54,591	$	54,591	$	51,422	$	51,422
Other limited partnership interests	13,857		19,831		13,244		18,906
Other invested assets	1,251		1,328		1,310		1,387
Other investments (Real estate joint ventures and FVO Securities)	985		1,036		945		948
Total	$	70,684	$	76,786	$	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 (“OLPI”) and real estate joint ventures (“REJV”) 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 18, 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 either the six months ended June 30, 2023 or 2022.

Net Investment Income

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

	Three Months Ended June 30,				Six Months Ended June 30,
Asset Type	2023		2022		2023		2022
	(In millions)
Fixed maturity securities AFS	$	3,228	$	2,832	$	6,367	$	5,546
Equity securities	10		5		22		12
FVO Securities	50		(89)		98		(154)
Mortgage loans	1,306		833		2,347		1,657
Policy loans	119		114		238		230
Real estate and REJV	137		379		163		707
OLPI	225		168		250		1,094
Cash, cash equivalents and short-term investments	248		49		465		80
Operating joint ventures	13		31		32		49
Other	122		221		278		347
Subtotal investment income	5,458		4,543		10,260		9,568
Less: Investment expenses	681		273		1,142		515
Subtotal, net	4,777		4,270		9,118		9,053
Unit-linked investments	295		(687)		599		(1,186)
Net investment income	$	5,072	$	3,583	$	9,717	$	7,867
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)	$	41	$	40	$	79	$	109
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO Securities and Unit-linked investments)	330		(817)		652		(1,409)
Net realized and unrealized gains (losses) recognized in NII	$	371	$	(777)	$	731	$	(1,300)
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	$	291	$	(802)	$	591	$	(1,276)
Equity method investments NII (primarily REJV, OLPI, tax credit and renewable energy partnerships and operating joint ventures)	$	172	$	386	$	79	$	1,474

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:

	Three Months Ended June 30,				Six Months Ended June 30,
Asset Type	2023		2022		2023		2022
	(In millions)
Fixed maturity securities AFS (1)	$	(996)	$	(671)	$	(1,576)	$	(1,269)
Equity securities	32		(42)		80		(92)
Mortgage loans (1)	(41)		48		(205)		92
Real estate and REJV (excluding changes in estimated fair value)	13		159		31		163
OLPI (excluding changes in estimated fair value)	3		(2)		12		16
Other gains (losses)	43		110		20		176
Subtotal	(946)		(398)		(1,638)		(914)
Change in estimated fair value of OLPI and REJV	2		(1)		(3)		6
Non-investment portfolio gains (losses)	(95)		(283)		(82)		(291)
Subtotal	(93)		(284)		(85)		(285)
Net investment gains (losses)	$	(1,039)	$	(682)	$	(1,723)	$	(1,199)
Transaction Type
Realized gains (losses) on investments sold or disposed	$	(20)	$	(445)	$	(566)	$	(656)
Impairment (losses) (1)	(898)		5		(905)		(35)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings	(42)		84		(224)		(159)
Unrealized net gains (losses) recognized in earnings	16		(43)		54		(58)
Total recognized gains (losses)	(26)		41		(170)		(217)
Non-investment portfolio gains (losses)	(95)		(283)		(82)		(291)
Net investment gains (losses)	$	(1,039)	$	(682)	$	(1,723)	$	(1,199)
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	$	31	$	(40)	$	20	$	(62)
Other gains (losses) include:
Gains (losses) on disposed investments which were previously in a qualified cash flow hedge relationship	$	(27)	$	42	$	(22)	$	60
Foreign currency gains (losses)	$	(27)	$	(134)	$	14	$	(11)
Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL	$	(20)	$	(445)	$	(566)	$	(656)
Recognized in NII	41		40		79		109
Net realized investment gains (losses) from sales and disposals of investments	$	21	$	(405)	$	(487)	$	(547)

__________________

(1)     Includes ($841) million and ($44) million of impairments for fixed maturity securities AFS and the lower of amortized cost or estimated fair value adjustments for mortgage loans, respectively, during the three months ended June 30, 2023, for investments to be disposed of in a pending reinsurance transaction. See Note 1.

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:

	Three Months Ended June 30,				Six Months Ended June 30,
Fixed Maturity Securities AFS	2023		2022		2023		2022
	(In millions)
Proceeds	$	8,412	$	20,710	$	23,456	$	34,734
Gross investment gains	$	73	$	231	$	366	$	340
Gross investment (losses)	(213)		(1,001)		(1,069)		(1,404)
Realized gains (losses) on sales and disposals	(140)		(770)		(703)		(1,064)
Net credit loss (provision) release (change in ACL recognized in earnings)	(7)		94		(17)		(170)
Impairment (losses)	(849)		5		(856)		(35)
Net credit loss (provision) release and impairment (losses)	(856)		99		(873)		(205)
Net investment gains (losses)	$	(996)	$	(671)	$	(1,576)	$	(1,269)
Equity Securities
Realized gains (losses) on sales and disposals	$	15	$	—	$	22	$	(30)
Unrealized net gains (losses) recognized in earnings	17		(42)		58		(62)
Net investment gains (losses)	$	32	$	(42)	$	80	$	(92)