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Investments (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Net Investment Income
Net investment income is as follows:

Year Ended December 31
202120202019
(In millions)   
    
Fixed maturity securities$1,707 $1,728 $1,817 
Limited partnership investments375 127 204 
Short term investments2 10 52 
Equity securities83 65 85 
Income from trading portfolio (a)
106 83 216 
Other61 58 56 
Total investment income2,334 2,071 2,430 
Investment expenses(75)(76)(75)
Net investment income$2,259 $1,995 $2,355 

(a)
Net investment income recognized due to the change in fair value on securities still held as of December 31, 2021, 2020 and 2019 were $23, $88 and $41 for the years ended December 31, 2021, 2020 and 2019.
Investment Gains (Losses)
Investment gains (losses) are as follows:

Year Ended December 31202120202019
(In millions)   
    
Fixed maturity securities:
Gross gains$186 $220 $125 
Gross losses(90)(220)(131)
Investment gains (losses) on fixed maturity securities96 — (6)
Equity securities4 (3)66 
Derivative instruments6 (10)(11)
Short term investments and other14 (22)
Altium Packaging (see Note 2)555 
Diamond Offshore (see Note 2)(15)(1,211)
Investment gains (losses) (a)$660 $(1,246)$49 

(a)
For the years ended December 31, 2021, 2020 and 2019, $2, $(3) and $66 of investment gains (losses) were recognized due to the change in fair value of non-redeemable preferred stock still held as of the end of each year.
Allowance for Credit Losses
The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets. Accrued interest receivable on available-for-sale fixed maturity securities totaled $369 million and $371 million as of December 31, 2021 and December 31, 2020 and is excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.

Year Ended December 31, 2021
Corporate and Other Bonds
Asset-backed
Total
 (In millions)   
Allowance for credit losses:   
Balance as of January 1, 2021$23 $17 $40 
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded14 14 
Available-for-sale securities accounted for as PCD assets5 6 11 
 
Reductions to the allowance for credit losses:
Securities sold during the period (realized)7 17 24 
Write-offs charged against the allowance16 16 
Additional increases or (decreases) to the allowance for credit
losses on securities that had an allowance recorded in a previous period
(8)1 (7)
Total allowance for credit losses$11 $7 $18 

Year Ended December 31, 2020
 
    
Allowance for credit losses:   
Balance as of January 1, 2020$— $— $— 
Additions to the allowance for credit losses:
Impact of adopting ASC 3266 6 
Securities for which credit losses were not previously recorded67 12 79 
Available-for-sale securities accounted for as PCD assets5 5 
 
Reductions to the allowance for credit losses:
Securities sold during the period (realized)22 22 
Intent to sell or more likely than not will be required to sell the
security before recovery of its amortized cost basis
1 1 
Additional increases or (decreases) to the allowance for credit
losses on securities that had an allowance recorded in a previous period
(32)5 (27)
Total allowance for credit losses$23 $17 $40 
Available-for-Sale Impairment Losses Recognized in Earnings
The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:

Year Ended December 31202120202019
(In millions)   
    
Fixed maturity securities available-for-sale:   
Corporate and other bonds$11 $87 $33 
Asset-backed20 24 11 
Impairment losses recognized in earnings$31 $111 $44 
Amortized Cost and Fair Values of Fixed Maturity Securities
The amortized cost and fair values of fixed maturity securities are as follows:

December 31, 2021Cost or Amortized CostGross Unrealized
Gains		Gross Unrealized
Losses		Allowance
for Credit Losses 		Estimated
Fair Value
(In millions)     
      
Fixed maturity securities:     
Corporate and other bonds$21,444 $2,755 $56 $11 $24,132 
States, municipalities and political
 subdivisions		10,358 1,599 14 11,943 
Asset-backed:
Residential mortgage-backed2,893 71 8 2,956 
Commercial mortgage-backed1,987 63 19 2,031 
Other asset-backed2,561 54 10 7 2,598 
Total asset-backed7,441 188 37 7 7,585 
U.S. Treasury and obligations of
 government sponsored enterprises		132 1 3 130 
Foreign government570 15 2 583 
Fixed maturities available-for-sale39,945 4,558 112 18 44,373 
Fixed maturities trading7 7 
Total fixed maturity securities$39,952 $4,558 $112 $18 $44,380 
December 31, 2020Cost or Amortized CostGross Unrealized
Gains		Gross Unrealized
Losses		Allowance
for Credit Losses 		Estimated
Fair Value
(In millions)    
Fixed maturity securities:    
Corporate and other bonds$20,792 $3,578 $22 $23 $24,325 
States, municipalities and political
 subdivisions		9,729 1,863 11,592 
Asset-backed:
Residential mortgage-backed3,442 146 1 3,587 
Commercial mortgage-backed1,933 93 42 17 1,967 
Other asset-backed2,179 81 9 2,251 
Total asset-backed7,554 320 52 17 7,805 
U.S. Treasury and obligations of
 government sponsored enterprises		339 2 3 338 
Foreign government512 32 544 
Fixed maturities available-for-sale38,926 5,795 77 40 44,604 
Fixed maturities trading37 5 42 
Total fixed maturity securities$38,963 $5,800 $77 $40 $44,646 
Available-for-sale Securities in Gross Unrealized Loss Position
The available-for-sale securities in a gross unrealized loss position for which an allowance for credit losses has not been recorded are as follows:

 Less than 12 Months12 Months or LongerTotal
December 31, 2021Estimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized LossesEstimated Fair ValueGross Unrealized Losses
(In millions)
 
Fixed maturity securities:
Corporate and other bonds$2,389 $48 $136 $8 $2,525 $56 
States, municipalities and political
 subdivisions		730 14 730 14 
Asset-backed:
Residential mortgage-backed1,043 8 1,043 8 
Commercial mortgage-backed527 7 167 12 694 19 
Other asset-backed840 10 62 902 10 
Total asset-backed2,410 25 229 12 2,639 37 
U.S. Treasury and obligations of
 government-sponsored enterprises		69 3 5 74 3 
Foreign government97 2 97 2 
Total fixed maturity securities$5,695 $92 $370 $20 $6,065 $112 
December 31, 2020
Fixed maturity securities:
Corporate and other bonds$609 $21 $12 $1 $621 $22 
States, municipalities and political
 subdivisions		33 33 
Asset-backed:
Residential mortgage-backed71 1 11 82 1 
Commercial mortgage-backed533 40 28 2 561 42 
Other asset-backed344 9 13 357 9 
Total asset-backed948 50 52 2 1,000 52 
U.S. Treasury and obligations of
 government-sponsored enterprises		63 3 63 3 
Foreign government13 13 
Total fixed maturity securities$1,666 $74 $64 $3 $1,730 $77 
Available-for-sale Fixed Maturity Securities by Contractual Maturity
The following table presents available-for-sale fixed maturity securities by contractual maturity.

December 3120212020
Cost or Amortized CostEstimated Fair
Value		Cost or Amortized CostEstimated
Fair
Value
(In millions)
Due in one year or less$1,603 $1,624 $1,456 $1,458 
Due after one year through five years10,637 11,229 12,304 13,098 
Due after five years through ten years13,294 14,338 12,319 13,878 
Due after ten years14,411 17,182 12,847 16,170 
Total$39,945 $44,373 $38,926 $44,604 
Amortized Cost Basis of Mortgage Loans for Each Credit Quality Indicator by Year of Origination
The following table presents the amortized cost basis of mortgage loans for each credit quality indicator by year of origination. The primary credit quality indicators utilized are debt service coverage ratios (“DSCR”) and loan-to-value (“LTV”) ratios.

Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of December 31, 2021
2021
2020
2019
2018
2017
PriorTotal
(In millions)       
        
DSCR ≥1.6x       
LTV less than 55%$2 $75 $6 $38 $99 $181 $401 
LTV 55% to 65%5 38 15 17 24 99 
LTV greater than 65%17 8 25 
DSCR 1.2x - 1.6x
LTV less than 55%14 14 95 5 42 170 
LTV 55% to 65%36 24 10 70 
LTV greater than 65%24 8 32 
DSCR ≤1.2x
LTV less than 55%35 30 65 
LTV 55% to 65%28 28 
LTV greater than 65%21 9 62 7 99 
Total$95 $160 $249 $79 $152 $254 $989 

(a)The values in the table above reflect DSCR on a standardized amortization period and LTV ratios based on the most recent appraised values trended forward using changes in a commercial real estate price index.
Aggregate Contractual or Notional Amounts and Estimated Fair Values Related to Derivative Financial Instruments
The following tables present the aggregate contractual or notional amount and estimated fair value related to derivative financial instruments.

December 3120212020
Contractual/Notional AmountEstimated Fair Value Contractual/Notional AmountEstimated Fair Value
Asset
(Liability)
Asset(Liability)
(In millions)
With hedge designation:
Interest rate swaps$675 $(26)
Without hedge designation:
Equity markets:
Options – purchased135 $3 
Interest rate swaps$100 100 (3)
Embedded derivative on funds withheld liability270 $(12)190 (19)