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INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Available-for-Sale Fixed Maturities by Classification
The following tables provide information relating to the Company’s fixed maturities classified as AFS.
AFS Fixed Maturities by Classification
 
Amortized Cost
Allowance for Credit Losses (4)
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value
 
 (in millions)
September 30, 2020
Fixed Maturities:
Corporate (1)$51,340 $13 $4,661 $176 $55,812 
U.S. Treasury, government and agency
13,160 — 4,308 — 17,468 
States and political subdivisions
762 — 116 — 878 
Foreign governments
829 — 82 6 905 
Residential mortgage-backed (2)146 — 14 — 160 
Asset-backed (3)2,588 — 26 18 2,596 
Commercial mortgage-backed1,067 — 50 — 1,117 
Redeemable preferred stock415 — 31 3 443 
Total at September 30, 2020$70,307 $13 $9,288 $203 $79,379 
December 31, 2019 (5)
Fixed Maturities:
Corporate (1)
$45,900 $— $2,361 $62 $48,199 
U.S. Treasury, government and agency
14,410 — 1,289 305 15,394 
States and political subdivisions
638 — 70 3 705 
Foreign governments
462 — 35 5 492 
Residential mortgage-backed (2)178 — 13 — 191 
Asset-backed (3)848 — 4 3 849 
Redeemable preferred stock501 — 17 5 513 
Total at December 31, 2019$62,937 $— $3,789 $383 $66,343 
______________
(1)Corporate fixed maturities include both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.
(4)Amounts represent the allowance for credit losses for 2020 (see Note 2 Significant Accounting Policies – Investments).
(5)Excludes amounts reclassified as HFS.
Contractual Maturities of Available-for-Sale Fixed Maturities
The contractual maturities of AFS fixed maturities at September 30, 2020 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Contractual Maturities of AFS Fixed Maturities
 
Amortized Cost (Less Allowance for Credit Losses)
Fair Value
 
(in millions)
September 30, 2020
Contractual maturities:
Due in one year or less$4,326 $4,362 
Due in years two through five15,844 16,772 
Due in years six through ten18,836 20,887 
Due after ten years27,072 33,042 
Subtotal66,078 75,063 
Residential mortgage-backed
146 160 
Asset-backed
2,588 2,596 
Commercial mortgage-backed1,067 1,117 
Redeemable preferred stock
415 443 
Total at September 30, 2020$70,294 $79,379 
Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities
The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three and nine months ended September 30, 2020 and 2019:
Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities
 
Three Months Ended September 30,Nine Months Ended September 30,
 
2020201920202019
 
(in millions)
Proceeds from sales$1,433 $3,849 $6,200 $6,913 
Gross gains on sales$26 $205 $303 $223 
Gross losses on sales$(5)$(4)$(39)$(29)
Credit losses (1)$— $— $(13)$— 
______________
(1) Commencing with the Company’s adoption of ASU 2016-13 on January 1, 2020, credit losses on AFS debt securities were recognized as an allowance for credit losses. Prior to this, credit losses on AFS fixed maturities were recognized as OTTI.
AFS Fixed Maturities - Credit Loss Impairments The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.
AFS Fixed Maturities - Credit Loss Impairments
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Balance, beginning of period$32 $25 $21 $58 
Previously recognized impairments on securities that matured, paid, prepaid or sold— (4)(2)(37)
Recognized impairments on securities impaired to fair value this period (1)— — — — 
Credit losses recognized this period on securities for which credit losses were not previously recognized(3)— 7 — 
Additional credit losses this period on securities previously impaired3 — 6 — 
Increases due to passage of time on previously recorded credit losses— — — — 
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)— — — — 
Balance at September 30,$32 $21 $32 $21 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities
The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturities on which a credit loss has been recognized, and all other.

Net Unrealized Gains (Losses) on AFS Fixed Maturities

Net Unrealized Gains (Losses) on InvestmentsDACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, July 1, 2020$8,728 $(1,521)$(1,034)$(1,297)$4,876 
Net investment gains (losses) arising during the period362 — — — 362 
Reclassification adjustment:
Included in Net income (loss)(21)— — — (21)
Excluded from Net income (loss)— — — — — 
Impact of net unrealized investment gains (losses)— 23 (13)(74)(64)
Net unrealized investment gains (losses) excluding credit losses9,069 (1,498)(1,047)(1,371)5,153 
Net unrealized investment gains (losses) with credit losses3 (1)— — 2 
Balance, September 30, 2020$9,072 $(1,499)$(1,047)$(1,371)$5,155 
Balance, July 1, 2019$2,929 $(649)$(101)$(481)$1,698 
Net investment gains (losses) arising during the period1,619 — — — 1,619 
Reclassification adjustment:
Included in Net income (loss)(199)— — — (199)
Excluded from Net income (loss)— — — — — 
Impact of net unrealized investment gains (losses)— (374)(121)(150)(645)
Net Unrealized Gains (Losses) on InvestmentsDACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Net unrealized investment gains (losses) excluding credit losses4,349 (1,023)(222)(631)2,473 
Net unrealized investment gains (losses) with credit losses (1)— — — — — 
Balance, September 30, 2019$4,349 $(1,023)$(222)$(631)$2,473 

Net Unrealized Gains (Losses) on Investments
DACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, January 1, 2020$3,453 $(894)$(189)$(497)$1,873 
Net investment gains (losses) arising during the period5,898 — — — 5,898 
Reclassification adjustment:
Included in Net income (loss)(273)— — — (273)
Excluded from Net income (loss)— — — — — 
Impact of net unrealized investment gains (losses)— (606)(859)(875)(2,340)
Net unrealized investment gains (losses) excluding credit losses9,078 (1,500)(1,048)(1,372)5,158 
Net unrealized investment gains (losses) with credit losses(6)1 1 1 (3)
Balance, September 30, 2020$9,072 $(1,499)$(1,047)$(1,371)$5,155 
Balance, January 1, 2019$(522)$100 $(88)$104 $(406)
Net investment gains (losses) arising during the period5,075 — — — 5,075 
Reclassification adjustment:
Included in Net income (loss)(204)— — — (204)
Excluded from Net income (loss)— — — — — 
Impact of net unrealized investment gains (losses)— (1,123)(134)(735)(1,992)
Net unrealized investment gains (losses) excluding credit losses4,349 (1,023)(222)(631)2,473 
Net unrealized investment gains (losses) with credit losses (1)— — — — — 
Balance, September 30, 2019$4,349 $(1,023)$(222)$(631)$2,473 
_____________
(1)Credit losses for 2019 were OTTI losses.
Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities The following tables disclose the fair values and gross unrealized losses of the 729 issues at September 30, 2020 and the 413 issues at December 31, 2019 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated.
AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
(in millions)
September 30, 2020:
Fixed Maturities:
Corporate$4,247 $121 $369 $50 $4,616 $171 
Foreign governments88 1 31 5 119 6 
Asset-backed1,324 16 74 2 1,398 18 
Redeemable preferred stock59 1 11 2 70 3 
Total at September 30, 2020$5,718 $139 $485 $59 $6,203 $198 
December 31, 2019: (1) (2)
Fixed Maturities:
Corporate$2,773 $42 $373 $20 $3,146 $62 
U.S. Treasury, government and agency4,309 305 2 — 4,311 305 
States and political subdivisions112 3 — — 112 3 
Foreign governments11 — 47 5 58 5 
Asset-backed319 1 201 2 520 3 
Redeemable preferred stock29 — 49 5 78 5 
Total at December 31, 2019$7,553 $351 $672 $32 $8,225 $383 
______________
(1)Amounts represents fixed maturities in an unrealized loss position that are not deemed to be OTTI for 2019.
(2)Excludes amounts reclassified as HFS.
Financing Receivable, Allowance for Credit Loss
The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three and nine months ended September 30, 2020 was as follows:
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
(in millions)
Allowance for credit losses on mortgage loans (1):
Commercial mortgages:
Balance, beginning of period$62 $33 
Current-period provision for expected credit losses4 33 
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance$4 $33 
Ending Balance, September 30,$66 $66 
Agricultural mortgages:
Balance, beginning of period$4 $3 
Current-period provision for expected credit losses— 1 
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance$— $1 
Ending Balance, September 30,$4 $4 
Total allowance for credit losses$70 $70 
_______________
(1)See Note 2 for discussion of the allowance of credit losses transition balance, which is included in the Balance, beginning of period.
Financing Receivable Credit Quality Indicators The following tables summarize the Company’s mortgage loans segregated by risk rating exposure at September 30, 2020.
LTV Ratios (1)
At September 30, 2020
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$— $— $— $324 $187 $650 $1,161 
50% - 70%935 411 885 760 2,432 1,608 7,031 
70% - 90%90 394 368 115 153 574 1,694 
90% plus— — 12 5 — 216 233 
Total commercial$1,025 $805 $1,265 $1,204 $2,772 $3,048 $10,119 
Agricultural:
0% - 50%$181 $137 $168 $161 $232 $679 $1,558 
50% - 70%253 131 172 110 136 372 1,174 
70% - 90%— — 3 — — 18 21 
90% plus— — — — — — — 
Total agricultural$434 $268 $343 $271 $368 $1,069 $2,753 
Total mortgage loans:
0% - 50%$181 $137 $168 $485 $419 $1,329 $2,719 
50% - 70%1,188 542 1,057 870 2,568 1,980 8,205 
70% - 90%90 394 371 115 153 592 1,715 
90% plus— — 12 5 — 216 233 
Total mortgage loans$1,459 $1,073 $1,608 $1,475 $3,140 $4,117 $12,872 
Debt Service Coverage Ratios (2)
At September 30, 2020
Amortized Cost Basis by Origination Year
20202019201820172016PriorTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$749 $492 $772 $268 $2,053 $1,268 $5,602 
1.8x to 2.0x227 77 118 378 184 524 1,508 
1.5x to 1.8x49 138 186 480 437 569 1,859 
1.2x to 1.5x— 56 154 78 97 533 918 
1.0x to 1.2x— 42 35 — 1 82 160 
Less than 1.0x— — — — — 72 72 
Total commercial$1,025 $805 $1,265 $1,204 $2,772 $3,048 $10,119 
Agricultural
Greater than 2.0x$52 $27 $39 $38 $73 $158 $387 
1.8x to 2.0x33 36 14 15 21 90 209 
1.5x to 1.8x103 38 45 41 52 212 491 
1.2x to 1.5x165 118 146 105 147 327 1,008 
1.0x to 1.2x77 39 91 71 57 265 600 
Less than 1.0x4 10 8 1 18 17 58 
Total agricultural$434 $268 $343 $271 $368 $1,069 $2,753 
Total mortgage loans
Greater than 2.0x$801 $519 $811 $306 $2,126 $1,426 $5,989 
1.8x to 2.0x260 113 132 393 205 614 1,717 
1.5x to 1.8x152 176 231 521 489 781 2,350 
1.2x to 1.5x165 174 300 183 244 860 1,926 
1.0x to 1.2x77 81 126 71 58 347 760 
Less than 1.0x4 10 8 1 18 89 130 
Total mortgage loans$1,459 $1,073 $1,608 $1,475 $3,140 $4,117 $12,872 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.

The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans at September 30, 2020 and December 31, 2019. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value.
Mortgage Loans by LTV and DSC Ratios
 
DSC Ratio (2) (3)
LTV Ratio (1) (3):
Greater than 2.0x
1.8x to
2.0x		1.5x to
1.8x		1.2x to
1.5x		1.0x to
1.2x		Less than
1.0x
Total
 
(in millions)
September 30, 2020:
Mortgage loans:
Commercial:
0% - 50%$952 $— $185 $24 $— $— $1,161 
50% - 70%3,992 1,160 1,342 511 26 — 7,031 
 
DSC Ratio (2) (3)
LTV Ratio (1) (3):
Greater than 2.0x
1.8x to
2.0x		1.5x to
1.8x		1.2x to
1.5x		1.0x to
1.2x		Less than
1.0x
Total
 
(in millions)
70% - 90%574 348 332 306 134 — 1,694 
90% plus84 — — 77 — 72 233 
Total commercial$5,602 $1,508 $1,859 $918 $160 $72 $10,119 
Agricultural:
0% - 50%$283 $107 $271 $529 $335 $33 $1,558 
50% - 70%104 100 220 460 265 25 1,174 
70% - 90%— 2 — 19 — — 21 
90% plus— — — — — — — 
Total agricultural$387 $209 $491 $1,008 $600 $58 $2,753 
Total mortgage loans:
0% - 50%$1,235 $107 $456 $553 $335 $33 $2,719 
50% - 70%4,096 1,260 1,562 971 291 25 8,205 
70% - 90%574 350 332 325 134 — 1,715 
90% plus84 — — 77 — 72 233 
Total mortgage loans$5,989 $1,717 $2,350 $1,926 $760 $130 $12,872 
December 31, 2019:
Mortgage loans:
Commercial:
0% - 50%
$903 $38 $214 $25 $— $— $1,180 
50% - 70%
4,097 1,195 1,118 795 242 — 7,447 
70% - 90%
251 98 214 154 46 — 763 
90% plus
— — — — — — — 
Total commercial$5,251 $1,331 $1,546 $974 $288 $— $9,390 
Agricultural:
0% - 50%$322 $104 $241 $545 $321 $50 $1,583 
50% - 70%82 87 236 426 251 33 1,115 
70% - 90%— — — 19 — — 19 
90% plus— — — — — — — 
Total agricultural$404 $191 $477 $990 $572 $83 $2,717 
Total mortgage loans:
0% - 50%$1,225 $142 $455 $570 $321 $50 $2,763 
50% - 70%4,179 1,282 1,354 1,221 493 33 8,562 
70% - 90%251 98 214 173 46 — 782 
90% plus— — — — — — — 
Total mortgage loans$5,655 $1,522 $2,023 $1,964 $860 $83 $12,107 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
(3)Amounts presented at amortized cost basis.
Age Analysis Of Past Due Mortgage Loans
The following table provides information relating to the aging analysis of past-due mortgage loans at September 30, 2020 and December 31, 2019, respectively.
Age Analysis of Past Due Mortgage Loans (1)
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans (2)
Past Due
Current
Total
30-59 Days
60-89 Days
90 Days or More
Total
(in millions)
September 30, 2020:
Mortgage loans:
Commercial$— $— $— $— $10,119 $10,119 $— $10,119 $— $— 
Agricultural24 6 135 165 2,588 2,753 — 2,753 — — 
Total$24 $6 $135 $165 $12,707 $12,872 $— $12,872 $— $— 
December 31, 2019:
Mortgage loans:
Commercial$— $— $— $— $9,390 $9,390 $— $9,390 $— $— 
Agricultural57 1 66 124 2,593 2,717 — 2,717 — — 
Total$57 $1 $66 $124 $11,983 $12,107 $— $12,107 $— $— 
_______________
(1) Amounts presented at amortized cost basis.
(2) Amounts for 2020 represent results for both the three and nine months ended September 30, 2020.
Net Investment Income (Loss) from Trading Securities The table below shows a breakdown of Net investment income (loss) from trading securities during the three and nine months ended September 30, 2020 and 2019.
Net Investment Income (Loss) from Trading Securities
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(13)$15 $88 $492 
Net investment gains (losses) recognized on securities sold during the period16 14 45 (7)
Unrealized and realized gains (losses) on trading securities3 29 133 485 
Interest and dividend income from trading securities60 62 159 227 
Net investment income (loss) from trading securities$63 $91 $292 $712