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Investments (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Available-for-Sale Securities Reconciliation

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


	As of December 31, 2024
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	75,556	$	563	$	9,655	$	14	$	66,450
U.S. government bonds	429		3		41		–		391
State and municipal bonds	2,798		18		445		–		2,371
Foreign government bonds	282		11		56		–		237
RMBS	2,066		24		220		7		1,863
CMBS	1,817		4		156		–		1,665
ABS	14,226		99		421		24		13,880
Hybrid and redeemable preferred securities	241		25		11		1		254
Total fixed maturity AFS securities	$	97,415	$	747	$	11,005	$	46	$	87,111


	As of December 31, 2023
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	77,085	$	852	$	8,272	$	8	$	69,657
U.S. government bonds	416		6		29		–		393
State and municipal bonds	3,106		101		417		–		2,790
Foreign government bonds	314		16		47		–		283
RMBS	1,948		28		197		6		1,773
CMBS	1,622		5		203		–		1,424
ABS	12,698		62		585		4		12,171
Hybrid and redeemable preferred securities	244		21		17		1		247
Total fixed maturity AFS securities	$	97,433	$	1,091	$	9,767	$	19	$	88,738

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2024, were as follows:


	Amortized Cost		Fair Value
Due in one year or less	$	3,526	$	3,508
Due after one year through five years	17,958		17,453
Due after five years through ten years	13,928		12,867
Due after ten years	43,894		35,875
Subtotal	79,306		69,703
Structured securities (RMBS, CMBS, ABS)	18,109		17,408
Total fixed maturity AFS securities	$	97,415	$	87,111

Schedule of Available-for-Sale Securities Unrealized Loss Position

The fair value and gross unrealized losses of fixed maturity AFS securities (dollars in millions) for which an allowance for credit losses has not been recorded, 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, 2024
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	24,657	$	4,054	$	29,786	$	5,601	$	54,443	$	9,655
U.S. government bonds	86		3		224		38		310		41
State and municipal bonds	1,087		228		760		217		1,847		445
Foreign government bonds	32		5		118		51		150		56
RMBS	795		76		760		144		1,555		220
CMBS	579		50		777		106		1,356		156
ABS	2,907		118		3,827		303		6,734		421
Hybrid and redeemable
preferred securities	23		3		93		8		116		11
Total fixed maturity AFS securities	$	30,166	$	4,537	$	36,345	$	6,468	$	66,511	$	11,005

Total number of fixed maturity AFS securities in an unrealized loss position											6,985


	As of December 31, 2023
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	14,005	$	3,270	$	34,595	$	5,002	$	48,600	$	8,272
U.S. government bonds	65		6		195		23		260		29
State and municipal bonds	371		72		874		345		1,245		417
Foreign government bonds	111		31		57		16		168		47
RMBS	360		20		886		177		1,246		197
CMBS	583		56		589		147		1,172		203
ABS	1,900		68		7,217		517		9,117		585
Hybrid and redeemable
preferred securities	32		3		95		14		127		17
Total fixed maturity AFS securities	$	17,427	$	3,526	$	44,508	$	6,241	$	61,935	$	9,767

Total number of fixed maturity AFS securities in an unrealized loss position											7,605

(1) As of December 31, 2024 and 2023, we recognized $23 million and $8 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

The fair value, gross unrealized losses (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, 2024
	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	5,405	$	1,621	799
Six months or greater, but less than nine months	371		198		216
Nine months or greater, but less than twelve months	71		28		37
Twelve months or greater	4,440		2,218		741
Total	$	10,287	$	4,065	1,793


	As of December 31, 2023
	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	2,492	$	927	533
Six months or greater, but less than nine months	343		96		79
Nine months or greater, but less than twelve months	336		109		90
Twelve months or greater	4,094		2,922		997
Total	$	7,265	$	4,054	1,699

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

Debt Securities, Available-for-Sale

Changes in the allowance for credit losses on fixed maturity AFS securities (in millions), aggregated by investment category, were as follows:


	For the Year Ended December 31, 2024
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	8	$	6	$	4	$	1	$	19
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	10		–		15		–		25
Additions (reductions) for securities for which
credit losses were previously recognized	11		1		5		–		17

Reductions for securities charged off	(15)		–		–		–		(15)
Balance as of end-of-year (2)	$	14	$	7	$	24	$	1	$	46


	For the Year Ended December 31, 2023
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	9	$	7	$	5	$	1	$	22
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	25		1		–		–		26
Additions (reductions) for securities for which
credit losses were previously recognized	(2)		(2)		(1)		–		(5)
Reductions for securities disposed	(2)		–		–		–		(2)
Reductions for securities charged off	(22)		–		–		–		(22)
Balance as of end-of-year (2)	$	8	$	6	$	4	$	1	$	19


	For the Year Ended December 31, 2022
	Corporate Bonds		RMBS		ABS		Hybrids		Total
Balance as of beginning-of-year	$	17	$	1	$	1	$	–	$	19
Additions from purchases of PCD debt securities (1)	–		–		–		–		–
Additions for securities for which credit losses were
not previously recognized	4		3		–		1		8
Additions (reductions) for securities for which
credit losses were previously recognized	2		3		4		–		9
Reductions for securities disposed	(2)		–		–		–		(2)
Reductions for securities charged off	(12)		–		–		–		(12)
Balance as of end-of-year (2)	$	9	$	7	$	5	$	1	$	22

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

(2) As of December 31, 2024, 2023 and 2022, accrued investment income on fixed maturity AFS securities totaled $876 million, $908 million and $1.1 billion, respectively, and was excluded from the estimate of credit losses.

Fair Value of Trading Securities

Trading securities at fair value (in millions) consisted of the following:


	As of December 31,
	2024		2023
Fixed maturity securities:
Corporate bonds	$	1,409	$	1,653

State and municipal bonds	13		21
Foreign government bonds	41		46
RMBS	63		62
CMBS	109		104
ABS	371		455
Hybrid and redeemable preferred securities	19		18
Total trading securities	$	2,025	$	2,359

Composition of Current and Past Due Mortgage Loans on Real Estate

The following provides the current and past due composition of our mortgage loans on real estate (in millions):


	As of December 31, 2024						As of December 31, 2023
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,567	$	3,387	$	20,954	$	17,256	$	1,665	$	18,921
30 to 59 days past due	6		71		77		61		28		89
60 to 89 days past due	–		33		33		–		9		9
90 or more days past due	35		90		125		–		60		60
Allowance for credit losses	(99)		(53)		(152)		(86)		(28)		(114)
Unamortized premium (discount)	(6)		83		77		(7)		43		36
Mark-to-market gains (losses) (1)	(31)		–		(31)		(37)		(1)		(38)
Total carrying value	$	17,472	$	3,611	$	21,083	$	17,187	$	1,776	$	18,963

(1) Represents the mark-to-market on certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers, and for which we have elected the fair value option. As of December 31, 2024, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was $30 million and $21 million, respectively. As of December 31, 2023, the amortized cost and fair value of such mortgage loans on real estate that were in nonaccrual status was less than $1 million. As of December 31, 2024 and 2023, there were no such mortgage loans on real estate that were more than 90 days past due and still accruing interest. See Note 1 4 for additional information.

Amortized Cost of Mortgage Loans on Real Estate on Nonaccrual Status

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows, excluding certain mortgage loans on real estate that support our modified coinsurance agreements, where the investment results are passed directly to the reinsurers:


	As of December 31, 2024		As of December 31, 2023

Commercial mortgage loans on real estate	$	4	$	–
Residential mortgage loans on real estate	92		62
Total	$	96	$	62

Financing Receivable Credit Quality Indicators

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


	As of December 31, 2024
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2024	$	1,548	1.73	$	83	1.41	$	–	–	$	1,631
2023	1,348		1.78	44		1.36	–		–	1,392
2022	1,724		2.11	94		1.55	4		1.30	1,822
2021	2,267		3.50	47		1.52	–		–	2,314
2020	1,167		3.33	4		1.53	–		–	1,171
2019 and prior	9,138		2.38	126		1.58	8		1.30	9,272
Total	$	17,192		$	398		$	12		$	17,602


	As of December 31, 2023
	LTV Less Than 65%		Debt-Service Coverage Ratio	LTV 65% to 75%		Debt-Service Coverage Ratio	LTV Greater Than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2023	$	1,368	1.90	$	54	1.38	$	–	–	$	1,422
2022	1,710		2.06	140		1.54	–		–	1,850
2021	2,335		3.34	61		1.55	–		–	2,396
2020	1,214		3.24	11		1.38	–		–	1,225
2019	2,446		2.40	80		1.56	10		2.33	2,536
2018 and prior	7,789		2.39	78		1.60	14		0.87	7,881
Total	$	16,862		$	424		$	24		$	17,310

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


	As of December 31, 2024
	Performing		Nonperforming		Total
Origination Year
2024	$	1,895	$	14	$	1,909
2023	557		16		573
2022	492		33		525
2021	427		11		438
2020	65		4		69
2019 and prior	136		14		150
Total	$	3,572	$	92	$	3,664


	As of December 31, 2023
	Performing		Nonperforming		Total
Origination Year
2023	$	515	$	2	$	517
2022	533		22		555
2021	465		18		483
2020	78		3		81
2019	99		13		112
2018 and prior	53		4		57
Total	$	1,743	$	62	$	1,805

Changes in Allowance for Credit Losses on Mortgage Loans on Real Estate

Changes in the allowance for credit losses on mortgage loans on real estate (in millions) were as follows:


	For the Year Ended December 31, 2024
	Commercial		Residential		Total
Balance as of beginning-of-year	$	86	$	28	$	114
Additions (reductions) from provision for credit loss
expense (1)	63		25		88
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Reductions for mortgage loans on real estate charged off	(50)		–		(50)
Balance as of end-of-year (2)	$	99	$	53	$	152


	For the Year Ended December 31, 2023
	Commercial		Residential		Total
Balance as of beginning-of-year	$	84	$	15	$	99
Additions (reductions) from provision for credit loss
expense (1)	2		13		15
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-year (2)	$	86	$	28	$	114


	For the Year Ended December 31, 2022
	Commercial		Residential		Total
Balance as of beginning-of-year	$	79	$	17	$	96

Additions (reductions) from provision for credit loss
expense (1)	5		(2)		3
Additions from purchases of PCD mortgage loans on
real estate	–		–		–
Balance as of end-of-year (2)	$	84	$	15	$	99

(1) We recognized less than $1 million and $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the years ended December 31, 2024 and 2023, respectively. We did not recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2022.

(2) Accrued investment income on mortgage loans on real estate totaled $94 million, $68 million and $51 million as of December 31, 2024, 2023 and 2022, respectively, and was excluded from the estimate of credit losses.

Net Investment Income

The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:


	For the Years Ended December 31,
	2024		2023		2022
Fixed maturity AFS securities	$	4,222	$	4,819	$	4,469
Trading securities	118		161		182
Equity securities	21		13		11
Mortgage loans on real estate	887		755		689
Policy loans	95		103		101
Cash and invested cash	194		129		13
Commercial mortgage loan prepayment
and bond make-whole premiums	15		10		105
Alternative investments	319		243		66
Consent fees	–		3		8
Other investments	(30)		(33)		79
Investment income	5,841		6,203		5,723
Investment expense	(316)		(324)		(208)
Net investment income	$	5,525	$	5,879	$	5,515

Credit Loss Expense Incurred

Details underlying intent to sell impairments and credit loss benefit (expense) incurred as a result of impairments that were recognized in net income (loss) and included in realized gain (loss) on fixed maturity AFS securities (in millions) were as follows:


	For the Years Ended December 31,
	2024		2023		2022
Intent to Sell Impairments (1)
Fixed maturity AFS securities:
Corporate bonds	$	–	$	(941)	$	–
State and municipal bonds	–		(48)		–
RMBS	–		(28)		–
CMBS	–		(36)		–
ABS	–		(37)		–
Hybrid and redeemable preferred securities	–		(1)		–
Total intent to sell impairments	$	–	$	(1,091)	$	–

Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(21)	$	(24)	$	(5)
RMBS	(1)		1		(6)
ABS	(20)		1		(4)



Total credit loss benefit (expense)	$	(42)	$	(22)	$	(15)

(1) For the year ended December 31, 2023, this includes impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the fourth quarter 2023 reinsurance transaction.

Payables for Collateral on Investments

The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:


	As of December 31, 2024				As of December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	7,213	$	7,213	$	5,250	$	5,250
Securities pledged under securities lending agreements (2)	157		151		205		197
Investments pledged for FHLBI (3)	2,650		3,657		2,650		3,603
Total payables for collateral on investments	$	10,020	$	11,021	$	8,105	$	9,050

(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 or fixed maturity AFS securities. This also includes interest payable on collateral. See Note 5 for additional information.

(2) Our pledged securities under securities lending agreements are included in fixed maturity AFS securities on the 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 the 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

Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:


	For the Years Ended December 31,
	2024		2023		2022
Collateral payable for derivative investments	$	1,963	$	1,966	$	(2,291)
Securities pledged under securities lending agreements	(48)		(93)		57
Investments pledged for FHLBI	–		(480)		–
Total increase (decrease) in payables for collateral on investments	$	1,915	$	1,393	$	(2,234)

Schedule of Securities Pledged by Contractual Maturity

The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:


	As of December 31, 2024
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	144	$	–	$	–	$	–	$	144
U.S. government bonds	1		–		–		–		1
Equity securities	12		–		–		–		12
Total gross secured borrowings	$	157	$	–	$	–	$	–	$	157


	As of December 31, 2023
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	202	$	–	$	–	$	–	$	202

Equity securities	3		–		–		–		3
Total gross secured borrowings	$	205	$	–	$	–	$	–	$	205