Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments [Abstract]

Investments by category and current or long-term classification

The following table summarizes the Company's investments by category and current or long-term classification:

	December 31, 2021						December 31, 2020
(In millions)	Current		Long-term		Total		Current		Long-term		Total
Debt securities	$	796	$	16,162	$	16,958	$	959	$	17,172	$	18,131
Equity securities	—		603		603		—		501		501
Commercial mortgage loans	40		1,526		1,566		13		1,406		1,419
Policy loans	—		1,338		1,338		—		1,351		1,351
Other long-term investments	—		3,574		3,574		—		2,832		2,832
Short-term investments	428		—		428		359		—		359
Total	1,264		23,203		24,467
Investments classified as assets of businesses held for sale (1)	(344)		(4,765)		(5,109)
Investments per Consolidated Balance Sheets	$	920	$	18,438	$	19,358	$	1,331	$	23,262	$	24,593

(1) Investments related to the international life, accident and supplemental benefits businesses that are held for sale. These investments are primarily comprised of debt securities and other long-term investments, and to a lesser extent, equity securities and short-term investments. See Note 5 to the Consolidated Financial Statements for additional information.

Debt Securities by Contractual Maturity

The amortized cost and fair value by contractual maturity periods for debt securities were as follows at December 31, 2021:

(In millions)	Amortized Cost		Fair Value
Due in one year or less	$	812	$	816
Due after one year through five years	5,218		5,366
Due after five years through ten years	5,173		5,453
Due after ten years	4,067		4,805
Mortgage and other asset-backed securities	505		518
Total	$	15,775	$	16,958

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 Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
December 31, 2021
Federal government and agency	$	287	$	—	$	101	$	(1)	$	387
State and local government	154		—		17		—		171
Foreign government	2,468		—		194		(46)		2,616
Corporate	12,361		(23)		1,008		(80)		13,266
Mortgage and other asset-backed	505		—		17		(4)		518
Total	$	15,775	$	(23)	$	1,337	$	(131)	$	16,958
Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1)	$	2,262	$	(5)	$	720	$	(10)	$	2,967
December 31, 2020
Federal government and agency	$	334	$	—	$	122	$	—	$	456
State and local government	150		—		17		—		167
Foreign government	2,201		—		318		(8)		2,511
Corporate	13,108		(19)		1,506		(33)		14,562
Mortgage and other asset-backed	427		(7)		27		(12)		435
Total	$	16,220	$	(26)	$	1,990	$	(53)	$	18,131
Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1)	$	2,282	$	(5)	$	838	$	(3)	$	3,112

(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 for which an allowance for credit losses has not been recorded, 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. Our allowance for credit losses on debt securities was not material as of December 31, 2021 and December 31, 2020.

	December 31, 2021							December 31, 2020
(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	$	2,785	$	2,861	$	(76)	909	$	1,026	$	1,045	$	(19)	300
Below investment grade	561		578		(17)		781	381		405		(24)		232
More than one year
Investment grade	382		412		(30)		143	18		18		—		6
Below investment grade	162		170		(8)		53	90		100		(10)		33
Total	$	3,890	$	4,021	$	(131)	1,886	$	1,515	$	1,568	$	(53)	571

Equity Security Investments

The following table provides the values of the Company's equity security investments as of December 31, 2021 and December 31, 2020. The amount of impairments or value changes resulting from observable price changes on equity securities still held was not material to the financial statements as of December 31, 2021 or 2020.

	December 31, 2021				December 31, 2020
(In millions)	Cost		Carrying Value		Cost		Carrying Value
Equity securities with readily determinable fair values	$	257	$	207	$	238	$	246
Equity securities with no readily determinable fair value	270		396		225		255
Total	$	527	$	603	$	463	$	501

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 as of December 31, 2021 and December 31, 2020:

(Dollars in millions)	December 31, 2021					December 31, 2020
Loan-to-Value Ratio	Carrying Value		Average Debt Service Coverage Ratio	Average Loan-to-Value Ratio		Carrying Value		Average Debt Service Coverage Ratio	Average Loan-to-Value Ratio
Below 60%	$	560	2.18			$	533	2.28
60% to 79%	883		1.89			751		2.08
80% to 100%	129		1.47			141		1.33
Allowance for credit losses	(6)					(6)
Total	$	1,566	1.96	61	%	$	1,419	2.08	61	%

Carrying Value Information for Other Long-Term Investments

The following table provides unfunded commitment and carrying value information for these investments. The Company expects to disburse approximately 35% of the committed amounts in 2022.

					Unfunded Commitments as of
	Carrying value as of December 31,
(In millions)	2021		2020		December 31, 2021
Real estate investments	$	1,152	$	951	$	752
Securities partnerships	2,272		1,737		1,969
Other	150		144		—
Total	$	3,574	$	2,832	$	2,721

Summary of Derivative Instruments Held

As of December 31, 2021 and December 31, 2020, the effects of derivative financial instruments used in 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, amounts excluded from the assessment of hedge effectiveness and fair values of assets posted or held as collateral supporting the fair values of these derivative financial instruments. The following table summarizes the types and notional quantity of derivative instruments held by the Company:

		Notional Value as of
(In millions)		December 31, 2021		December 31, 2020
Purpose	Type 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. A majority of these instruments are denominated in Euro, with the remaining instruments denominated in British Pound Sterling and Australian Dollars.	Foreign currency swap contracts	$	1,081	$	925
Fair value hedge: To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to SOFR.	Interest rate swap contracts	$	750	$	—
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 currencies other than the U.S. Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. Foreign currency swap contracts are denominated in Euros, while foreign currency forward contracts are primarily denominated in Korean Won, with the remaining instruments denominated in New Zealand Dollar and Taiwan Dollar.	Foreign currency swap contracts	$	526	$	526
	Foreign currency forward contracts	$	1,380	$	636
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	$	720	$	538

Components of Net Investment Income

The components of Net investment income for the years ended December 31 were as follows:

(In millions)	2021		2020		2019
Debt Securities	$	689	$	962	$	986
Equity securities	12		11		5
Commercial mortgage loans	60		80		88
Policy loans	63		64		66
Other long-term investments	758		127		167
Short-term investments and cash	26		52		131
Total investment income	1,608		1,296		1,443
Less investment expenses	59		52		53
Net investment income	$	1,549	$	1,244	$	1,390

Investment income for the year ended December 31, 2021 increased versus the year ended December 31, 2020 due to strong performance of assets underlying our limited partnership investments reported in Other long-term investments. The overall increase in investment income was partially offset by lower investment income from our debt securities as a result of lower invested asset levels following the divestiture of Cigna's U.S. Group Disability and Life business on December 31, 2020. The Company received income distributions of $568 million in 2021, $227 million in 2020 and $202 million in 2019 from its limited partnership investments reported in Other long-term investments.

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:

(In millions)	2021		2020		2019
Net realized investment gains (losses), excluding credit loss expense and asset write-downs	$	194	$	186	$	189
Credit loss (expense) recoveries	2		(27)		—
Other investment asset write-downs	—		(10)		(12)
Net realized investment gains (losses), before income taxes	$	196	$	149	$	177