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Investments (Tables)

3 Months Ended

Mar. 31, 2020

Financing Receivable, Credit Quality Indicator [Line Items]

Reconciliation Of Available-For-Sale Securities From Cost Basis To Fair Value



	As of March 31, 2020
	Amortized		Gross Unrealized						Fair
	Cost		Gains		Losses		ACL		Value
Fixed maturity AFS securities:
Corporate bonds	$	80,785	$	7,031	$	1,999	$	20	$	85,797
U.S. government bonds		380		102		-		-		482
State and municipal bonds		4,797		1,123		14		-		5,906
Foreign government bonds		329		63		3		-		389
RMBS		3,014		277		20		-		3,271
CMBS		1,089		39		9		-		1,119
ABS		5,259		59		232		-		5,086
Hybrid and redeemable preferred securities		564		51		59		-		556
Total fixed maturity AFS securities	$	96,217	$	8,745	$	2,336	$	20	$	102,606

The amortized cost, gross unrealized gains, losses, OTTI and fair value of fixed maturity AFS securities (in millions) were as follows:



	As of December 31, 2019
	Amortized		Gross Unrealized							Fair
	Cost		Gains		Losses		OTTI ⁽¹⁾			Value
Fixed maturity AFS securities:
Corporate bonds	$	79,417	$	9,479	$	184	$	(4	)	$	88,716
U.S. government bonds		384		51		-		-			435
State and municipal bonds		4,778		1,113		7		-			5,884
Foreign government bonds		329		64		-		-			393
RMBS		3,042		190		10		(19	)		3,241
CMBS		1,038		45		1		(1	)		1,083
ABS		4,810		62		18		(35	)		4,889
Hybrid and redeemable preferred securities		497		82		20		-			559
Total fixed maturity AFS securities	$	94,295	$	11,086	$	240	$	(59	)	$	105,200

⁽¹⁾Prior to the adoption of ASU 2016-13, we recognized the OTTI attributed to noncredit factors as a separate component in other comprehensive income (loss) (“OCI”) referred to as unrealized OTTI on fixed maturity AFS securities. This includes unrealized (gains) and losses on credit-impaired securities related to changes in the fair value of such securities subsequent to the impairment measurement date.

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,008	$	2,980
Due after one year through five years		14,806		14,836
Due after five years through ten years		17,319		17,804
Due after ten years		51,722		57,510
Subtotal		86,855		93,130
Structured securities (RMBS, CMBS, ABS)		9,362		9,476
Total fixed maturity AFS securities	$	96,217	$	102,606

Fair Value And Gross Unrealized Losses In A Continuous Unrealized Loss Position



	As of March 31, 2020
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	21,648		$	1,745	$	828		$	254	$	22,476		$	1,999
State and municipal bonds		364			14		-			-		364			14
Foreign government bonds		27			3		-			-		27			3
RMBS		352			19		5			1		357			20
CMBS		250			9		2			-		252			9
ABS		4,160			196		255			36		4,415			232
Hybrid and redeemable
preferred securities		178			22		78			37		256			59
Total fixed maturity AFS securities	$	26,979		$	2,008	$	1,168		$	328	$	28,147		$	2,336

Total number of fixed maturity AFS securities in an unrealized loss position															2,724

⁽¹⁾We recognized $22 million of gross unrealized losses in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

The fair value and gross unrealized losses, including the portion of OTTI recognized in OCI, of fixed maturity AFS securities (dollars in millions), aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:



	As of December 31, 2019
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
			Unrealized					Unrealized					Unrealized
	Fair		Losses and			Fair		Losses and			Fair		Losses and
	Value			OTTI		Value			OTTI		Value			OTTI
Fixed maturity AFS securities:
Corporate bonds	$	2,935		$	46	$	1,406		$	141	$	4,341		$	187
State and municipal bonds		333			7		18			-		351			7
RMBS		536			10		15			-		551			10
CMBS		48			1		4			-		52			1
ABS		1,792			8		303			10		2,095			18
Hybrid and redeemable
preferred securities		29			1		102			19		131			20
Total fixed maturity AFS securities	$	5,673		$	73	$	1,848		$	170	$	7,521		$	243

Total number of fixed maturity AFS securities in an unrealized loss position															895

Schedule Of Available-For-Sale Securities Whose Value Is Below Amortized Cost



	As of March 31, 2020
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities⁽¹⁾
Less than six months	$	1,528	$	803			185
Twelve months or greater		50		60			23
Total	$	1,578	$	863			208

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

The fair value, gross unrealized losses, the portion of OTTI recognized in OCI (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows:



	As of December 31, 2019
								Number
	Fair		Gross Unrealized					of
	Value		Losses		OTTI		Securities ⁽¹⁾
Less than six months	$	15	$	5	$	-			7
Six months or greater, but less than nine months		10		3		-			4
Twelve months or greater		132		76		-			31
Total	$	157	$	84	$	-			42

⁽¹⁾We may reflect a security in more than one aging category based on various purchase dates.

Changes In Allowance For Credit Losses On AFS



	Corporate
	Bonds		RMBS		ABS		Other		Total
Balance as of beginning-of-year	$	-	$	-	$	-	$	-	$	-
Additions for securities for which credit losses were not
previously recognized		20		-		-		-		20
Additions from purchases of PCD debt securities⁽¹⁾		-		-		-		-		-
Balance as of end-of-period ⁽²⁾	$	20	$	-	$	-	$	-	$	20

⁽¹⁾Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.

⁽²⁾Accrued interest receivable on fixed maturity AFS securities totaled $1.0 billion as of March 31, 2020, and was excluded from the estimate of credit losses.

Schedule Of Changes In Amount Of Credit Losses Of OTTI Recognized In Net Income (Loss)



	For the Three
	Months Ended
	March 31,
	2019
Balance as of beginning-of-year	$	355
Increases attributable to:
Credit losses on securities for which an
OTTI was not previously recognized		6
Credit losses on securities for which an
OTTI was previously recognized		2
Decreases attributable to:
Securities sold, paid down or matured		(4	)
Balance as of end-of-period	$	359

Composition Of Current And Past Due Mortgage Loans On Real Estate



	As of March 31, 2020									As of December 31, 2019
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,168		$	707		$	16,875		$	15,620		$	659		$	16,279
30 to 59 days past due		-			16			16			3			27			30
60 to 89 days past due		-			4			4			-			10			10
90 or more days past due		-			23			23			-			16			16
Allowance for credit losses		(126	)		(35	)		(161	)		-			(2	)		(2	)
Unamortized premium (discount)		(16	)		24			8			(17	)		23			6
Mark-to-market gains (losses) ⁽¹⁾		26			-			26			-			-			-
Total carrying value	$	16,052		$	739		$	16,791		$	15,606		$	733		$	16,339

⁽¹⁾Represents the mark-to-market on certain commercial mortgage loans on real estate for which we have elected the fair value option. See Note 14 for additional information.

Schedule Of Average Carrying Value Of Impaired Mortgage Loans On Real Estate



	For the Three
	Months Ended
	March 31,
	2020		2019
Average carrying value for impaired mortgage
loans on real estate	$	3	$	-
Interest income recognized on impaired mortgage
loans on real estate		-		-
Interest income collected on impaired mortgage
loans on real estate		-		-

Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status



	As of March 31, 2020				As of January 1, 2020
	Nonaccrual				Nonaccrual
	with no				with no
	ACL		Nonaccrual		ACL		Nonaccrual
Commercial mortgage loans on real estate	$	-	$	-	$	-	$	-
Residential mortgage loans on real estate		-		24		-		17
Total	$	-	$	24	$	-	$	17

Changes In Allowance For Credit Losses On Mortgage Loans On Real Estate



	Commercial		Residential		Total
Balance as of beginning-of-year, prior to adoption of ASU 2016-13	$	-	$	2	$	2
Impact of adopting ASU 2016-13		62		26		88
Additions from provision for credit loss expense ⁽¹⁾		64		7		71
Additions from purchases of PCD mortgage loans on real estate		-		-		-
Balance as of end-of-period ⁽²⁾	$	126	$	35	$	161

⁽¹⁾Due to changes in economic assumptions driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $71 million for the three months ended March 31, 2020.

⁽²⁾Accrued interest receivable on mortgage loans on real estate totaled $50 million as of March 31, 2020, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred



	For the Three
	Months Ended
	March 31,
	2020			2019
Credit Loss Expense Recognized in Net Income (Loss) ⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	(20	)	$	(6	)
RMBS		-			(1	)
ABS		-			(1	)
Gross credit loss expense recognized in net income (loss)		(20	)		(8	)
Associated amortization of DAC, VOBA, DSI and DFEL		-			-
Net credit loss expense recognized in net income (loss)	$	(20	)	$	(8	)

⁽¹⁾For the three months ended March 31, 2020, we recognized credit loss expense incurred as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the three months ended March 31, 2019, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss).

Payables For Collateral On Investments



	As of March 31, 2020				As of December 31, 2019
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments ⁽¹⁾	$	3,943	$	3,943	$	1,388	$	1,388
Securities pledged under securities lending agreements ⁽²⁾		161		156		114		110
Investments pledged for Federal Home Loan Bank of
Indianapolis (“FHLBI”)⁽³⁾		4,330		6,970		3,580		5,480
Total payables for collateral on investments	$	8,434	$	11,069	$	5,082	$	6,978

⁽¹⁾We obtain collateral based upon contractual provisions with our counterparties. These agreements take into consideration the counterparties’ credit rating as compared to ours, the fair value of the derivative investments and specified thresholds that if exceeded result in the receipt of cash that is typically invested in cash and invested cash. See Note 5 for additional information.

⁽²⁾Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on our Consolidated Balance Sheets. We generally obtain collateral in an amount equal to 102% and 105% of the fair value of the domestic and foreign securities, respectively. We value collateral daily and obtain additional collateral when deemed appropriate. The cash received in our securities lending program is typically invested in cash and invested cash or fixed maturity AFS securities.

⁽³⁾Our pledged investments for FHLBI are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

Schedule Of Increase (Decrease) In Payables For Collateral On Investments



	For the Three
	Months Ended
	March 31,
	2020		2019
Collateral payable for derivative investments	$	2,555	$	58
Securities pledged under securities lending agreements		47		48
Securities pledged under repurchase agreements		-		1
Investments pledged for FHLBI		750		450
Total increase (decrease) in payables for collateral on investments	$	3,352	$	557

Schedule Of Securities Pledged By Contractual Maturity



	As of March 31, 2020
	Overnight and Continuous		Up to 30 Days		30 - 90 ‎Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	160	$	-	$	-	$	-	$	160
Foreign government bonds		1		-		-		-		1
Total gross secured borrowings	$	161	$	-	$	-	$	-	$	161



	As of December 31, 2019
	Overnight and Continuous		Up to 30 Days		30 - 90 ‎Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	114	$	-	$	-	$	-	$	114
Total gross secured borrowings	$	114	$	-	$	-	$	-	$	114

Commercial [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Credit Quality Indicators For Mortgage Loans



	As of March 31, 2020				As of December 31, 2019
				Debt-				Debt-
				Service				Service
	Amortized		% of	Coverage	Amortized		% of	Coverage
Loan-to-Value Ratio	Cost		Total	Ratio	Cost		Total	Ratio
Less than 65%	$	14,723	91.2%	2.40	$	14,206	91.0%	2.35
65% to 74%		1,428	8.8%	1.85		1,399	9.0%	1.87
75% to 100%		1	0.0%	0.90		1	0.0%	1.09
Total	$	16,152	100.0%		$	15,606	100.0%

The amortized cost of commercial mortgage loans on real estate (in millions) by year of origination and credit quality indicator was as follows:



	As of March 31, 2020
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	75%		Coverage
	than 65%		Ratio	to 74%		Ratio	to 100%		Ratio	Total
Origination Year
2020	$	654	3.57	$	61	1.47	$	-	-	$	715
2019		2,964	2.29		493	1.78		-	-		3,457
2018		2,346	2.17		271	1.48		-	-		2,617
2017		1,798	2.34		202	2.67		-	-		2,000
2016		1,732	2.37		217	1.92		-	-		1,949
2015 and prior		5,229	2.43		184	1.68		1	0.90		5,414
Total	$	14,723		$	1,428		$	1		$	16,152

Residential [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Credit Quality Indicators For Mortgage Loans



	As of March 31, 2020			As of December 31, 2019
	Amortized		% of	Amortized		% of
Performance Indicator	Cost		Total	Cost ⁽¹⁾		Total
Performing	$	750	96.9%	$	718	97.7%
Nonperforming		24	3.1%		17	2.3%
Total	$	774	100.0%	$	735	100.0%

⁽¹⁾A valuation allowance of $2 million was established on residential mortgage loans on real estate as of December 31, 2019.

The amortized cost of residential mortgage loans on real estate (in millions) by year of origination and credit quality indicator as of March 31, 2020, was as follows:



	Performing		Nonperforming			Total
Origination Year
2020	$	73		$	-	$	73
2019		454			18		472
2018		223			6		229
2017		-			-		-
2016		-			-		-
2015 and prior		-			-		-
Total	$	750		$	24	$	774