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Investments (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024																														December 31, 2023
						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						$	86,317					$	(15)					$	1,706					$	7,455					$	80,553					$	85,563					$	(68)					$	1,894					$	6,672					$	80,717
Foreign corporate						58,146						(2)						1,704						5,819						54,029						59,123						(2)						1,750						5,427						55,444
Foreign government						46,155						(66)						1,478						4,774						42,793						48,260						(88)						1,754						4,437						45,489
U.S. government and agency						36,021						—						317						4,490						31,848						35,374						—						590						3,712						32,252
RMBS						33,798						(1)						317						2,972						31,142						31,479						(1)						353						2,735						29,096
ABS & CLO						17,973						(9)						73						569						17,468						17,910						(7)						54						663						17,294
Municipals						11,898						—						324						1,284						10,938						11,991						—						408						1,228						11,171
CMBS						10,315						(20)						102						759						9,638						10,855						(18)						73						961						9,949
Total fixed maturity securities AFS						$	300,623					$	(113)					$	6,021					$	28,122					$	278,409					$	300,555					$	(184)					$	6,876					$	25,835					$	281,412

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

The amortized cost, net of allowance for credit loss (“ACL”), and estimated fair value of fixed maturity securities AFS, by contractual maturity date, were as follows at March 31, 2024:


						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						$	10,447					$	48,816					$	52,088					$	127,103					$	62,056					$	300,510
Estimated fair value						$	10,498					$	48,055					$	50,283					$	111,325					$	58,248					$	278,409

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, 2024																								December 31, 2023
						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						$	7,027					$	610					$	44,051					$	6,807					$	4,722					$	420					$	45,373					$	6,208
Foreign corporate						3,456						153						30,912						5,666						3,210						187						32,355						5,240
Foreign government						4,967						419						18,275						4,352						3,913						246						19,715						4,187
U.S. government and agency						8,965						499						14,810						3,991						7,856						368						13,960						3,344
RMBS						4,303						99						17,123						2,872						3,465						60						17,128						2,675
ABS & CLO						1,807						30						8,645						538						1,662						31						11,438						629
Municipals						709						76						5,338						1,208						483						34						5,449						1,194
CMBS						452						13						6,204						741						1,034						36						6,671						917
Total fixed maturity securities AFS						$	31,686					$	1,899					$	145,358					$	26,175					$	26,345					$	1,382					$	152,089					$	24,394
Investment grade						$	30,014					$	1,805					$	139,769					$	25,406					$	24,834					$	1,287					$	146,138					$	23,675
Below investment grade						1,672						94						5,589						769						1,511						95						5,951						719
Total fixed maturity securities AFS						$	31,686					$	1,899					$	145,358					$	26,175					$	26,345					$	1,382					$	152,089					$	24,394
Total number of securities in an unrealized loss position						3,607												12,802												2,922												13,049

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												RMBS						ABS & CLO						CMBS						Total
			(In millions)
Three Months Ended March 31, 2024
Balance, at beginning of period			$	68					$	2					$	88											$	1					$	7					$	18					$	184
ACL not previously recorded			—						—						—												—						—						—						—
Changes for securities with previously recorded ACL			—						—						(4)												—						2						2						—
Securities sold or exchanged			(53)						—						(18)												—						—						—						(71)


Balance, at end of period			$	15					$	2					$	66											$	1					$	9					$	20					$	113
Three Months Ended March 31, 2023
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)


Balance, at end of period			$	63					$	2					$	117											$	—					$	—					$	11					$	193

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

The following table presents equity securities by security type.



						March 31, 2024																		December 31, 2023
						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value						Cost						Net Unrealized Gains (Losses) (1)						Estimated Fair Value
Security Type
						(In millions)
Common stock (2)						$	411					$	266					$	677					$	424					$	239					$	663
Non-redeemable preferred stock						73						—						73						90						4						94
Total						$	484					$	266					$	750					$	514					$	243					$	757

________________

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

(2) Includes common stock, exchange traded funds, certain mutual funds and certain real estate investment trusts.

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, 2024																		December 31, 2023

						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						$	7,398					$	1,469					$	8,867					$	7,770					$	1,112					$	8,882
FVO securities						897						549						1,446						972						477						1,449
Total						$	8,295					$	2,018					$	10,313					$	8,742					$	1,589					$	10,331

________________

(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, 2024												December 31, 2023
Portfolio Segment						Carrying Value (1)						% of Total						Carrying Value (1)						% of Total
						(Dollars in millions)
Commercial						$	59,359					64.9		%				$	60,326					65.2		%
Agricultural						19,712						21.6						19,805						21.4
Residential						13,201						14.4						13,096						14.2
Total amortized cost						92,272						100.9						93,227						100.8
Allowance for credit loss						(814)						(0.9)						(721)						(0.8)




Total mortgage loans						$	91,458					100.0		%				$	92,506					100.0		%

__________________

(1)Includes certain mortgage loans originated for third parties of $8.1 billion at amortized cost ($7.8 billion commercial and $251 million agricultural) and the related ACL of $77 million, with the corresponding mortgage loan secured financing liability of $8.1 billion included in other liabilities on the consolidated balance sheet at March 31, 2024. The consolidated balance sheet at December 31, 2023 includes certain mortgage loans originated for third parties of $8.5 billion at amortized cost ($8.2 billion commercial and $246 million agricultural) and the related ACL of $73 million, with the corresponding mortgage loan secured financing liability of $8.5 billion included in other liabilities. The investment income on the mortgage loans originated for third parties and the interest expense on the related mortgage loan secured financing liability was $94 million for the three months ended March 31, 2024, and were recorded in investment income and investment expenses, both within net investment income.

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,
			2024																								2023
			Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total
			(In millions)
Balance, beginning of period			$	367					$	172					$	182					$	721					$	218					$	119					$	190					$	527
Provision (release)			94						16						(17)						93						101						49						22						172


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

Balance, end of period			$	461					$	188					$	165					$	814					$	319					$	161					$	212					$	692

Financing Receivable, Modified

These mortgage loan modifications are summarized as follows:

Three Months Ended March 31,

2024

2023

Maturity Extension

Weighted Average
Life Increase

% of BV

Maturity Extension

Weighted Average
Life Increase

% of BV

Amortized

Cost

Affected Loans
(in Years)

Amortized

Cost

Affected Loans
(in Years)

(Dollars in millions)

Commercial

$

80

Less than one year

< 1%

$

64

Less than one year

< 1%

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, 2024:


Credit Quality Indicator						2024						2023						2022						2021						2020						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	936					$	2,519					$	2,674					$	3,227					$	1,734					$	16,181					$	2,461					$	29,732					50.1		%
65% to 75%						22						362						4,500						2,781						1,655						7,358						—						16,678						28.1
76% to 80%						—						15						664						289						376						2,917						—						4,261						7.2
Greater than 80%						1						66						797						978						897						5,949						—						8,688						14.6
Total						$	959					$	2,962					$	8,635					$	7,275					$	4,662					$	32,405					$	2,461					$	59,359					100.0		%
DSCR:
> 1.20x						$	904					$	2,149					$	7,587					$	6,682					$	4,320					$	27,206					$	2,461					$	51,309					86.4		%
1.00x - 1.20x						55						544						431						593						105						3,260						—						4,988						8.4
<1.00x						—						269						617						—						237						1,939						—						3,062						5.2
Total						$	959					$	2,962					$	8,635					$	7,275					$	4,662					$	32,405					$	2,461					$	59,359					100.0		%

The amortized cost of agricultural mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2024:


Credit Quality Indicator						2024						2023						2022						2021						2020						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
LTV ratios:
Less than 65%						$	152					$	1,163					$	2,793					$	2,641					$	2,696					$	7,506					$	1,351					$	18,302					92.8		%
65% to 75%						6						30						91						293						147						556						130						1,253						6.4
76% to 80%						—						—						—						—						—						—						—						—						—
Greater than 80%						—						5						—						—						4						142						6						157						0.8
Total						$	158					$	1,198					$	2,884					$	2,934					$	2,847					$	8,204					$	1,487					$	19,712					100.0		%

The amortized cost of residential mortgage loans by credit quality indicator and vintage year was as follows at March 31, 2024:


Credit Quality Indicator						2024						2023						2022						2021						2020						Prior						Revolving Loans						Total						% of Total
						(Dollars in millions)
Performance indicators:
Performing						$	55					$	958					$	2,507					$	1,575					$	323					$	7,343					$	—					$	12,761					96.7		%
Nonperforming (1)						—						16						68						22						14						320						—						440						3.3
Total						$	55					$	974					$	2,575					$	1,597					$	337					$	7,663					$	—					$	13,201					100.0		%

__________________

(1)Includes residential mortgage loans in process of foreclosure of $143 million and $140 million at March 31, 2024 and December 31, 2023, 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, 2024						December 31, 2023						March 31, 2024						December 31, 2023						March 31, 2024						December 31, 2023
						(In millions)
Commercial						$	424					$	75					$	36					$	3					$	665					$	427
Agricultural						246						40						29						—						258						206
Residential						440						418						15						16						428						402
Total						$	1,110					$	533					$	80					$	19					$	1,351					$	1,035

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, 2024						December 31, 2023						Three Months Ended March 31,
																		2024						2023
Income Type						Carrying Value												Income
						(In millions)
Wholly-owned real estate:
Leased real estate						$	4,206					$	4,446					$	84					$	92
Other real estate						511						507						47						50
Real estate joint ventures						8,275						8,379						(121)						(116)
Total real estate and real estate joint ventures						$	12,992					$	13,332					$	10					$	26

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, 2024						December 31, 2023
						(In millions)
Japan						$	20,960					$	22,606
South Korea						$	6,007					$	6,411
Mexico						$	3,765					$	3,778

Securities Lending and Repurchase Agreements

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


									March 31, 2024																								December 31, 2023
									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									$	10,851					$	11,089					$	10,861											$	10,510					$	10,788					$	10,553
Repurchase agreements									$	3,032					$	2,975					$	2,912											$	3,029					$	2,975					$	2,913

__________________

(1)These securities were included within fixed maturity securities AFS, short-term investments, and cash equivalents at March 31, 2024 and within fixed maturity securities AFS and short-term investments at December 31, 2023.

(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, 2024																																				December 31, 2023
						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						$	1,772					$	4,687					$	3,448					$	—					$	9,907											$	1,393					$	4,106					$	3,919					$	—					$	9,418
Foreign government						—						856						153						—						1,009												—						483						624						—						1,107
Agency RMBS						—						97						76						—						173												—						88						175						—						263


Total						$	1,772					$	5,640					$	3,677					$	—					$	11,089											$	1,393					$	4,677					$	4,718					$	—					$	10,788

Repurchase agreements:
U.S. government and agency						$	—					$	2,975					$	—					$	—					$	2,975											$	—					$	2,975					$	—					$	—					$	2,975

__________________

(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, 2024						December 31, 2023
						(In millions)
Invested assets on deposit (regulatory deposits)						$	1,499					$	1,596
Invested assets held in trust (external reinsurance agreements) (1)						930						941
Invested assets pledged as collateral (2)						27,659						26,017
Total invested assets on deposit, held in trust and pledged as collateral						$	30,088					$	28,554

__________________

(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 at both March 31, 2024 and December 31, 2023.

(2) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements, repurchase agreements and a collateral financing arrangement (see Notes 5, 16 and 17 of the Notes to the Consolidated Financial Statements included in the 2023 Annual Report). For information regarding invested assets pledged in connection with derivative transactions, see Note 11.

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, 2024												December 31, 2023
Asset Type						Total Assets						Total Liabilities						Total Assets						Total Liabilities
						(In millions)
Investment funds (primarily other invested assets)						$	377					$	28					$	282					$	1
Renewable energy partnership (primarily other invested assets)						66						1						64						—
Total						$	443					$	29					$	346					$	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, 2024												December 31, 2023
Asset Type						Carrying Amount						Maximum Exposure to Loss (1)						Carrying Amount						Maximum Exposure to Loss (1)
						(In millions)
Fixed maturity securities AFS (2)						$	55,920					$	55,920					$	54,182					$	54,182
Other limited partnership interests						13,417						18,289						14,034						19,591
Other investments (Real estate joint ventures and FVO securities)						1,114						1,130						1,039						1,055
Other invested assets						1,108						1,203						1,206						1,275
Total						$	71,559					$	76,542					$	70,461					$	76,103

__________________

(1)The maximum exposure to loss relating to fixed maturity securities AFS and FVO securities 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 unrecognized 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						2024						2023
						(In millions)
Fixed maturity securities AFS						$	3,288					$	3,139
Equity securities						7						12
FVO securities						85						48
Mortgage loans						1,194						1,041
Policy loans						113						119
Real estate and REJV						10						26
OLPI						301						25
Cash, cash equivalents and short-term investments						291						217
Operating joint ventures						22						19
Other						151						156
Subtotal investment income						5,462						4,802
Less: Investment expenses						568						461
Subtotal, net						4,894						4,341
Unit-linked investments						542						304
Net investment income						$	5,436					$	4,645

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)						$	68					$	38
Net unrealized gains (losses) from changes in estimated fair value (primarily FVO securities and Unit-linked investments)						580						322
Net realized and unrealized gains (losses) recognized in NII						$	648					$	360

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						$	537					$	313

Equity method investments NII (primarily REJV, OLPI, tax credit and renewable energy partnerships and operating joint ventures)						$	210					$	(93)

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						2024						2023
						(In millions)
Fixed maturity securities AFS						$	(85)					$	(580)
Equity securities						28						48
Mortgage loans						(86)						(164)
Real estate and REJV (excluding changes in estimated fair value)						35						18
OLPI (excluding changes in estimated fair value) (1)						(50)						9
Other gains (losses)						6						(23)
Subtotal						(152)						(692)
Change in estimated fair value of OLPI and REJV						3						(5)
Non-investment portfolio gains (losses)						(226)						13
Subtotal						(223)						8
Net investment gains (losses)						$	(375)					$	(684)

Transaction Type
Realized gains (losses) on investments sold or disposed (1)						$	(135)					$	(546)
Impairment (losses)						—						(7)
Recognized gains (losses):
Change in allowance for credit loss recognized in earnings						(46)						(182)
Unrealized net gains (losses) recognized in earnings						32						38
Total recognized gains (losses)						(14)						(144)
Non-investment portfolio gains (losses)						(226)						13
Net investment gains (losses)						$	(375)					$	(684)

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





Foreign currency gains (losses)						$	(45)					$	41

Net Realized Investment Gains (Losses) From Sales and Disposals of Investments
Recognized in NIGL						$	(135)					$	(546)
Recognized in NII						68						38
Net realized investment gains (losses) from sales and disposals of investments						$	(67)					$	(508)

__________________

(1) Includes a net loss of $43 million during the three months ended March 31, 2024 for private equity investments sold. The Company sold a $741 million portfolio of investments to a fund for proceeds of $698 million in cash and receivables secured by the value of the fund. The Company’s investment management business has entered into an agreement to serve as the investment manager of the fund for which it will receive a management fee.

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						2024						2023
						(In millions)
Proceeds						$	6,352					$	15,044
Gross investment gains						$	156					$	293
Gross investment (losses)						(312)						(856)
Realized gains (losses) on sales and disposals						(156)						(563)
Net credit loss (provision) release (change in ACL recognized in earnings)						71						(10)
Impairment (losses)						—						(7)
Net credit loss (provision) release and impairment (losses)						71						(17)
Net investment gains (losses)						$	(85)					$	(580)

Equity Securities
Realized gains (losses) on sales and disposals						$	(2)					$	7
Unrealized net gains (losses) recognized in earnings						30						41
Net investment gains (losses)						$	28					$	48