Investments (excluding Consolidated Investment Entities) (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of June 30, 2020:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		Allowance for credit losses
Fixed maturities:
U.S. Treasuries	$	1,049	$	495	$	—	$	—	$	1,544	$	—
U.S. Government agencies and authorities	74		29		—		—		103		—
State, municipalities and political subdivisions	1,206		163		1		—		1,368		—
U.S. corporate public securities	12,592		2,497		47		—		15,042		—
U.S. corporate private securities	5,545		716		42		—		6,219		—
Foreign corporate public securities and foreign governments(1)	3,844		532		16		—		4,360		—
Foreign corporate private securities(1)	4,381		315		40		—		4,653		3
Residential mortgage-backed securities	5,681		284		44		27		5,946		2
Commercial mortgage-backed securities	3,763		251		167		—		3,847		—
Other asset-backed securities	2,122		26		60		—		2,076		12
Total fixed maturities, including securities pledged	40,257		5,308		417		27		45,158		17
Less: Securities pledged	950		183		11		—		1,122		—
Total fixed maturities	$	39,307	$	5,125	$	406	$	27	$	44,036	$	17

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

Available-for-sale and FVO fixed maturities were as follows as of December 31, 2019:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Embedded Derivatives(2)		Fair Value		OTTI(3)(4)
Fixed maturities:
U.S. Treasuries	$	1,074	$	308	$	—	$	—	$	1,382	$	—
U.S. Government agencies and authorities	74		21		—		—		95		—
State, municipalities and political subdivisions	1,220		103		—		—		1,323		—
U.S. corporate public securities	12,980		1,977		19		—		14,938		—
U.S. corporate private securities	5,568		488		21		—		6,035		—
Foreign corporate public securities and foreign governments(1)	3,887		460		6		—		4,341		—
Foreign corporate private securities(1)	4,545		288		2		—		4,831		—
Residential mortgage-backed securities	4,999		200		14		19		5,204		5
Commercial mortgage-backed securities	3,402		176		4		—		3,574		—
Other asset-backed securities	2,058		22		25		—		2,055		1
Total fixed maturities, including securities pledged	39,807		4,043		91		19		43,778		6
Less: Securities pledged	1,264		154		10		—		1,408		—
Total fixed maturities	$	38,543	$	3,889	$	81	$	19	$	42,370	$	6

⁽¹⁾ Primarily U.S. dollar denominated.

⁽²⁾ Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations.

⁽³⁾ Represents OTTI reported as a component of Other comprehensive income (loss).

⁽⁴⁾ Amount excludes $336 of net unrealized gains on impaired available-for-sale securities.

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturities, including securities pledged, as of June 30, 2020, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date.

	Amortized Cost		Fair Value
Due to mature:
One year or less	$	1,273	$	1,281
After one year through five years	4,991		5,259
After five years through ten years	7,814		8,652
After ten years	14,613		18,097
Mortgage-backed securities	9,444		9,793
Other asset-backed securities	2,122		2,076
Fixed maturities, including securities pledged	$	40,257	$	45,158

U.S. and Foreign Corporate Securities by Industry

The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated:

	Amortized Cost		Gross Unrealized Capital Gains		Gross Unrealized Capital Losses		Fair Value
June 30, 2020
Communications	$	1,665	$	374	$	1	$	2,038
Financial	3,949		668		9		4,608
Industrial and other companies	11,389		1,692		48		13,033
Energy	2,567		333		56		2,844
Utilities	4,948		790		4		5,734
Transportation	1,224		126		22		1,328
Total	$	25,742	$	3,983	$	140	$	29,585
December 31, 2019
Communications	$	1,694	$	295	$	—	$	1,989
Financial	4,067		535		1		4,601
Industrial and other companies	11,669		1,274		16		12,927
Energy	2,819		368		27		3,160
Utilities	4,895		561		1		5,455
Transportation	1,206		116		2		1,320
Total	$	26,350	$	3,149	$	47	$	29,452

Schedule of Securities Borrowed Under Securities Lending Transactions

The following table presents borrowings under securities lending transactions by asset class pledged as of the dates indicated:

	June 30, 2020 (1)(2)		December 31, 2019 (1)(2)
U.S. Treasuries	$	173	$	213
U.S. Government agencies and authorities	12		15
U.S. corporate public securities	415		684
Equity Securities	3		—
Foreign corporate public securities and foreign governments	263		289
Payables under securities loan agreements	$	866	$	1,201

⁽¹⁾As of June 30, 2020 and December 31, 2019, borrowings under securities lending transactions include cash collateral of $749 and $1,055, respectively.

⁽²⁾As of June 30, 2020 and December 31, 2019, borrowings under securities lending transactions include non-cash collateral of $117 and $146, respectively.

Financing Receivable, Allowance for Credit Loss

The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the period presented:

	Six Months Ended June 30, 2020
	Residential mortgage-backed securities		Commercial mortgage-backed securities		Foreign corporate private securities		Other asset-backed securities		Total
Balance as of January 1	$	—	$	—	$	—	$	—	$	—
Credit losses on securities for which credit losses were not previously recorded	2		—		3		12		17
Initial allowance for credit losses recognized on financial assets accounted for as PCD	—		—		—		—		—
Reductions for securities sold during the period	—		—		—		—		—
Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost	—		—		—		—		—
Increase (decrease) on securities with allowance recorded in previous period	—		—		—		—		—
Write-offs	—		—		—		—		—
Recoveries of amounts previously written off	—		—		—		—		—
Balance as of June 30	$	2	$	—	$	3	$	12	$	17

Schedule of Unrealized Loss on Investments

The following table presents available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by market sector and duration as of the date indicated:

	Twelve Months or Less Below Amortized Cost					More Than Twelve Months Below Amortized Cost					Total
	Fair Value		Unrealized Capital Losses		Number of securities	Fair Value		Unrealized Capital Losses		Number of securities	Fair Value		Unrealized Capital Losses		Number of securities
June 30, 2020
U.S. Treasuries	$	—	$	—	—	$	—	$	—	—	$	—	$	—	—
State, municipalities and political subdivisions	33		1		10	1		—		1	34		1		11
U.S. corporate public securities	686		39		111	45		8		11	731		47		122
U.S. corporate private securities	373		12		31	129		30		10	502		42		41
Foreign corporate public securities and foreign governments	183		13		38	31		3		6	214		16		44
Foreign corporate private securities	442		37		32	65		3		6	507		40		38
Residential mortgage-backed	884		34		161	166		10		79	1,050		44		240
Commercial mortgage-backed	1,629		166		247	9		1		1	1,638		167		248
Other asset-backed	996		31		205	381		29		122	1,377		60		327
Total	$	5,226	$	333	835	$	827	$	84	236	$	6,053	$	417	1,071

The Company concluded that an allowance for credit losses was unnecessary for these securities because the unrealized losses are interest rate related.

Unrealized capital losses (including noncredit impairments), along with the fair value of fixed maturity securities, including securities pledged, by market sector and duration were as follows as of December 31, 2019:

	Twelve Months or Less Below Amortized Cost					More Than Twelve Months Below Amortized Cost					Total
	Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses			Fair Value		Unrealized Capital Losses
U.S. Treasuries	$	2	$	—	*	$	21	$	—	*	$	23	$	—	*
State, municipalities and political subdivisions	25		—		*	1		—		*	26		—		*
U.S. corporate public securities	122		3			199		16			321		19
U.S. corporate private securities	113		1			195		20			308		21
Foreign corporate public securities and foreign governments	15		—		*	103		6			118		6
Foreign corporate private securities	36		—		*	78		2			114		2
Residential mortgage-backed	730		8			194		6			924		14
Commercial mortgage-backed	472		4			18		—		*	490		4
Other asset-backed	308		5			641		20			949		25
Total	$	1,823	$	21		$	1,450	$	70		$	3,273	$	91
Total number of securities in an unrealized loss position	334					338					672

*Less than $1.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table identifies the Company's impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated:

	Three Months Ended June 30,
	2020			2019
	Impairment		No. of Securities	Impairment			No. of Securities
State, municipalities and political subdivisions	$	—	11	$	—		—
U.S. corporate public securities	11		67	—			—
U.S. corporate private securities	—		6	—			—
Foreign corporate public securities and foreign governments(1)	4		35	3			1
Foreign corporate private securities(1)	6		12	—			—
Residential mortgage-backed	4		41	—		*	7
Commercial mortgage-backed	24		116	—			—
Other asset-backed	1		74	—		*	1
Total	$	50	362	$	3		9
Credit Impairments	$	—		$	—
Intent Impairments	$	50		$	3
(1) Primarily U.S. dollar denominated.
*Less than $1
	Six Months Ended June 30,
	2020			2019
	Impairment		No. of Securities	Impairment			No. of Securities
State, municipalities and political subdivisions	$	—	11	$	—		—
U.S. corporate public securities	30		69	—			—
U.S. corporate private securities	—		6	—			—
Foreign corporate public securities and foreign governments(1)	4		35	3			1
Foreign corporate private securities(1)	6		12	25			3
Residential mortgage-backed	5		47	—		*	18
Commercial mortgage-backed	24		117	—			—
Other asset-backed	1		74	1			3
Total	$	70	371	$	29		25
Credit Impairments	$	—		$	26
Intent Impairments	$	70		$	3
(1) Primarily U.S. dollar denominated.
*Less than $1

Mortgage Loans by Loan to Value Ratio

The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of June 30, 2020 and December 31, 2019, respectively.

	As of June 30, 2020
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
2020	$	117	$	153	$	28	$	—	$	—	$	298
2019	375		218		106		15		—		714
2018	205		158		97		—		—		460
2017	668		432		18		—		—		1,118
2016	626		328		7		—		—		961
2015	625		121		—		—		—		746
2014 and prior	1,960		616		31		—		—		2,607
Total	$	4,576	$	2,026	$	287	$	15	$	—	$	6,904

	As of December 31, 2019
	Loan-to-Value Ratios
Year of Origination	0% - 50%		>50% - 60%		>60% - 70%		>70% - 80%		>80% and above		Total
2020	$	—	$	—	$	—	$	—	$	—	$	—
2019	121		138		227		211		26		723
2018	11		141		188		159		14		513
2017	153		283		697		12		15		1,160
2016	122		221		579		50		—		972
2015	39		502		248		15		—		804
2014 and prior	241		438		1,771		256		1		2,707
Total	$	687	$	1,723	$	3,710	$	703	$	56	$	6,879

Mortgage Loans by Debt Service Coverage Ratio

The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of June 30, 2020 and December 31, 2019, respectively.

	As of June 30, 2020
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Commercial mortgage loans secured by land or construction loans		Total
2020	$	249	$	38	$	11	$	—	$	—	$	298
2019	541		108		65		—		—		714
2018	295		28		97		40		—		460
2017	596		269		173		80		—		1,118
2016	860		67		30		4		—		961
2015	692		47		7		—		—		746
2014 and prior	2,197		221		119		70		—		2,607
Total	$	5,430	$	778	$	502	$	194	$	—	$	6,904

	As of December 31, 2019
	Debt Service Coverage Ratios
Year of Origination	>1.5x		>1.25x - 1.5x		>1.0x - 1.25x		<1.0x		Commercial mortgage loans secured by land or construction loans		Total
2020	$	—	$	—	$	—	$	—	$	—	$	—
2019	493		165		66		—		—		724
2018	351		13		88		61		—		513
2017	608		292		167		93		—		1,160
2016	873		63		31		4		—		971
2015	743		50		6		6		—		805
2014 and prior	2,265		210		139		92		—		2,706
Total	$	5,333	$	793	$	497	$	256	$	—	$	6,879

Mortgage Loans by Geographic Location of Collateral

The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of June 30, 2020 and December 31, 2019, respectively.

	As of June 30, 2020
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2020	$	75	$	138	$	17	$	23	$	16	$	8	$	—	$	—	$	21	$	298
2019	99		202		21		188		69		65		18		14		38		714
2018	106		156		71		38		59		16		—		14		—		460
2017	175		126		429		170		104		63		6		45		—		1,118
2016	275		178		189		46		106		119		14		28		6		961
2015	210		188		168		39		54		64		11		12		—		746
2014 and prior	708		534		383		209		268		234		61		166		44		2,607
Total	$	1,648	$	1,522	$	1,278	$	713	$	676	$	569	$	110	$	279	$	109	$	6,904

	As of December 31, 2019
	U.S. Region
Year of Origination	Pacific		South Atlantic		Middle Atlantic		West South Central		Mountain		East North Central		New England		West North Central		East South Central		Total
2020	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2019	100		200		35		187		67		63		18		15		37		722
2018	106		182		73		47		60		16		—		14		15		513
2017	177		128		464		171		107		63		6		45		—		1,161
2016	277		181		193		47		107		119		14		28		6		972
2015	226		218		171		43		54		68		12		12		—		804
2014 and prior	741		553		390		224		275		242		67		169		46		2,707
Total	$	1,627	$	1,462	$	1,326	$	719	$	670	$	571	$	117	$	283	$	104	$	6,879

Mortgage Loans by Property Type of Collateral

The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of June 30, 2020 and December 31, 2019, respectively.

	As of June 30, 2020
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2020	$	49	$	8	$	117	$	124	$	—	$	—	$	—	$	298
2019	55		129		391		105		34		—		—		714
2018	78		111		206		25		4		36		—		460
2017	140		520		266		188		4		—		—		1,118
2016	177		307		262		191		10		9		5		961
2015	165		282		129		78		24		68		—		746
2014 and prior	1,179		221		480		366		101		205		55		2,607
Total	$	1,843	$	1,578	$	1,851	$	1,077	$	177	$	318	$	60	$	6,904

	As of December 31, 2019
	Property Type
Year of Origination	Retail		Industrial		Apartments		Office		Hotel/Motel		Other		Mixed Use		Total
2020	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2019	55		130		400		105		32		—		—		722
2018	83		122		221		46		4		36		—		512
2017	142		557		268		190		4		—		—		1,161
2016	179		312		263		192		10		10		6		972
2015	198		285		133		90		30		69		—		805
2014 and prior	1,216		230		512		376		108		209		56		2,707
Total	$	1,873	$	1,636	$	1,797	$	999	$	188	$	324	$	62	$	6,879

Allowance for Credit Losses on Financing Receivables

The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated:

	June 30, 2020
Allowance for credit losses, balance at January 1	$	16
Credit losses on mortgage loans for which credit losses were not previously recorded	4
Initial allowance for credit losses recognized on financial assets accounted for as PCD	—
Increase (decrease) on mortgage loans with allowance recorded in previous period	54
Provision for expected credit losses	74
Writeoffs	—
Recoveries of amounts previously written off	—
Allowance for credit losses, end of period	$	74

Financing Receivable, Past Due

The following table presents past due commercial mortgage loans as of the dates indicated:

	June 30, 2020		December 31, 2019
Delinquency:
Current	$	6,895	$	6,879
30-59 days past due	—		—
60-89 days past due	—		—
Greater than 90 days past due	9		—
Total	$	6,904	$	6,879

Net Investment Income

The following table summarizes Net investment income for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Fixed maturities	$	596	$	556	$	1,167	$	1,111
Equity securities	3		2		6		5
Mortgage loans on real estate	73		82		147		161
Policy loans	12		12		23		23
Short-term investments and cash equivalents	1		2		3		6
Other	(83)		75		(28)		98
Gross investment income	602		729		1,318		1,404
Less: investment expenses	16		17		34		34
Net investment income	$	586	$	712	$	1,284	$	1,370

Realized Gain (Loss) on Investments

Net realized capital gains (losses) were as follows for the periods indicated:

	Three Months Ended June 30,
	2020		2019
Fixed maturities, available-for-sale, including securities pledged	$	(16)	$	10
Fixed maturities, at fair value option	14		100
Equity securities	14		6
Derivatives	(3)		(82)
Embedded derivatives - fixed maturities	(1)		1
Guaranteed benefit derivatives	45		(13)
Mortgage Loans	(53)		—
Other investments	(1)		3
Net realized capital gains (losses)	$	(1)	$	25
	Six Months Ended June 30,
	2020		2019
Fixed maturities, available-for-sale, including securities pledged	$	(52)	$	(13)
Fixed maturities, at fair value option	47		167
Equity securities	4		11
Derivatives	(33)		(146)
Embedded derivatives - fixed maturities	7		2
Guaranteed benefit derivatives	(148)		(8)
Mortgage Loans	(58)		—
Other investments	(1)		—
Net realized capital gains (losses)	$	(234)	$	13

Gain (Loss) on Investments

Proceeds from the sale of fixed maturities, available-for-sale, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Proceeds on sales	$	898	$	1,135	$	1,365	$	2,724
Gross gains	79		21		90		43
Gross losses	49		7		69		31