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Investments (Tables)
 9 Months Ended
Sep. 30, 2020
Investments [Abstract]  
Investments by Category The following table summarizes the Company's investments by category and current or long-term classification.
September 30, 2020December 31, 2019
(In millions)CurrentLong-termTotalCurrentLong-termTotal
Debt securities$1,113 $23,560 $24,673 $928 $22,827 $23,755 
Equity securities— 379 379 — 303 303 
Commercial mortgage loans13 1,966 1,979 — 1,947 1,947 
Policy loans— 1,347 1,347 — 1,357 1,357 
Other long-term investments— 2,698 2,698 — 2,403 2,403 
Short-term investments458 — 458 423 — 423 
Total$1,584 $29,950 $31,534 $1,351 $28,837 $30,188 
Investments classified as assets of business held for sale(1)
(260)(7,998)(8,258)(414)(7,295)(7,709)
Investments per Consolidated Balance Sheets$1,324 $21,952 $23,276 $937 $21,542 $22,479 
(1) The table above includes $8.3 billion as of September 30, 2020 and $7.7 billion as of December 31, 2019 of investments associated with the U.S. Group Disability and Life business that are held for sale to New York Life. Under the terms of the definitive agreement, some of the assets currently associated with the Group Disability and Life business can be substituted for other assets. The assets that will transfer to New York Life will be primarily debt securities and to a lesser extent commercial mortgage loans and short-term investments.
Debt Securities by Contractual Maturity
The amortized cost and fair value by contractual maturity periods for debt securities were as follows at September 30, 2020:
(In millions)Amortized
Cost		Fair
Value
Due in one year or less$1,133 $1,143 
Due after one year through five years7,403 7,789 
Due after five years through ten years9,011 10,015 
Due after ten years4,212 5,211 
Mortgage and other asset-backed securities514 515 
Total$22,273 $24,673 
Gross Unrealized Appreciation (Depreciation) on Debt Securities
Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below.
(In millions)Amortized
Cost		Allowance for Credit LossUnrealized
Appreciation		Unrealized
Depreciation		Fair
Value
September 30, 2020
Federal government and agency$411 $— $223 $— $634 
State and local government628 — 85 — 713 
Foreign government2,091 — 317 (6)2,402 
Corporate18,629 (31)1,890 (79)20,409 
Mortgage and other asset-backed514 (9)32 (22)515 
Total$22,273 $(40)$2,547 $(107)$24,673 
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1)
$2,147 $(9)$828 $(13)$2,953 
December 31, 2019
Federal government and agency$498 $— $235 $— $733 
State and local government729 — 81 — 810 
Foreign government2,027 — 230 (1)2,256 
Corporate18,149 — 1,299 (28)19,420 
Mortgage and other asset-backed506 — 31 (1)536 
Total$21,909 $— $1,876 $(30)$23,755 
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1)
$2,229 $— $740 $(4)$2,965 
(1)Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
Summary of Debt Securities with a Decline in Fair Value
The table below summarizes debt securities with a decline in fair value from amortized cost by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. See discussion of Realized Investment Gains and Losses below for further information on the credit loss expense recorded for the Company's investments.

September 30, 2020December 31, 2019
(Dollars in millions)Fair
Value		Amortized
Cost		Unrealized
Depreciation		Number
of Issues		Fair
Value		Amortized
Cost		Unrealized
Depreciation		Number
of Issues
One year or less
Investment grade$1,193 $1,224 $(31)356$723 $729 $(6)267 
Below investment grade$713 $774 $(61)536$340 $348 $(8)355 
More than one year
Investment grade$107 $111 $(4)19$366 $378 $(12)118 
Below investment grade$76 $87 $(11)36$84 $88 $(4)93 
Total$2,089 $2,196 $(107)947 $1,513 $1,543 $(30)833 
Roll-Forward of the Allowance for Credit Losses on Debt Securities
The table below presents a roll-forward of the allowance for credit losses on debt securities for the three and nine months ended September 30, 2020.

Three Months Ended
September 30,		Nine Months Ended
September 30,
(Dollars in millions)20202020
Balance at beginning of period$48 $0 
Additions for debt securities where no credit loss has previously been recognized2 82 
Reductions for securities sold during the period(6)(15)
Decrease for debt securities where credit losses have previously been recorded(4)(27)
Balance September 30,$40 $40 
Equity Security Investments
The following table provides the values of the Company's equity security investments as of September 30, 2020 and December 31, 2019.

September 30, 2020 December 31, 2019
(Dollars in millions)Amortized CostCarrying ValueAmortized CostCarrying Value
Equity securities with readily determinable fair values$126 $124 $61 $64 
Equity securities with no readily determinable fair value$203 $212 $183 $192 
Hybrid equity securities$57 $43 $58 $47 
Total$386 $379 $302 $303 
Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio
The following table summarizes the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios as of September 30, 2020 and December 31, 2019:
(Dollars in millions)September 30, 2020December 31, 2019
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$861 2.20$1,136 2.19
60% to 79%985 1.93723 1.98
80% to 100%142 1.3388 1.62
Allowance for credit losses(9)
Total$1,979 2.0160 %$1,947 2.0958 %
Carrying Value Information for Other Long-Term Investments
Other long-term investments also include investment real estate, foreign currency swaps, and statutory and other deposits. The following table provides carrying value information for these investments.

Carrying value as of
(In millions)September 30, 2020December 31, 2019
Real estate investments$888 $788 
Securities partnerships1,591 1,409 
Other219 206 
Total$2,698 $2,403 
Short-Term Investments and Cash Equivalents
Short-term investments and cash equivalents included the following types of issuers:
(In millions)September 30, 2020December 31, 2019
Corporate securities$2,729 $1,985 
Federal government securities$1,139 $472 
Foreign government securities$89 $65 
Money market funds$313 $631 
Realized Gains and Losses on Investments
The following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency), as well as realized gains and losses attributed to the Company’s separate accounts because those gains and losses generally accrue directly to separate account policyholders.
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Net realized investment gains, excluding credit loss expense and asset write-downs$24 $60 $33 $96 
Credit loss (expense) recoveries on invested assets8 — (41)— 
Other investment asset write-downs— (9)(10)(12)
Net realized investment gains (losses), before income taxes$32 $51 $(18)$84 
Sales Information for Available-for-Sale Debt Securities
The following table presents sales information for available-for-sale debt securities. Gross gains on sales and gross losses on sales exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.
Three Months Ended September 30,Nine Months Ended September 30,
(In millions)2020201920202019
Proceeds from sales$380 $591 $2,003 $2,242 
Gross gains on sales$15 $18 $81 $41 
Gross losses on sales$— $(5)$(21)$(17)
Summary of Derivative Instruments Held The following table summarizes the types and notional quantity of derivative instruments held by the Company. As of September 30, 2020 and December 31, 2019, the effects of these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from accumulated other comprehensive income into shareholders' net income, as well as amounts excluded from the assessment of hedge effectiveness.
(In millions)Notional Value as of
September 30, 2020December 31, 2019
PurposeType of Instrument
Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds.
Foreign currency swap contracts
$853 $817 
Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in Euros, Korean Won, and Taiwan Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets.
Foreign currency swap contracts
$526 $438 
Foreign currency forward contracts
$636 $406 
Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company’s foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments.
Foreign currency forward contracts
$495 $410