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Investments (Tables)
 12 Months Ended
Dec. 31, 2020
Investments [Abstract]  
Net Investment Income

Net investment income is as follows:

Year Ended December 31
  
2020
    
2019
    
2018
  
(In millions)
                  
                   
Fixed maturity securities
  
$
1,728
    
$
1,817
    
$
1,795
  
Limited partnership investments
    
127
      
204
      
22
  
Short term investments
    
10
      
52
      
43
  
Equity securities
    
65
      
85
      
18
  
Income (loss) from trading portfolio (a)
    
83
      
216
      
(54
)
Other
    
58
      
56
      
54
  
Total investment income
    
2,071
      
2,430
      
1,878
  
Investment expenses
    
(76
)
    
(75
)
    
(61
)
Net investment income
  
$
1,995
    
$
2,355
    
$
1,817
  

(a)
Net unrealized gains (losses) related to changes in fair value on securities still held were $88, $41 and $(121) for the years ended December 31, 2020, 2019 and 2018.
Investment Gains (Losses)

Investment gains (losses) are as follows:

Year Ended December 31
  
2020
    
2019
    
2018
  
(In millions)
                  
                   
Fixed maturity securities
        
$
(6
)
  
$
4
  
Equity securities
  
$
(3
)
    
66
      
(74
)
Derivative instruments
    
(10
)
    
(11
)
    
9
  
Short term investments and other
    
(22
)
            
4
  
Deconsolidation of Diamond Offshore (see Note 2)
    
(1,211
)
                
Investment gains (losses) (a)
  
$
(1,246
)
  
$
49
    
$
(57
)

(a)
Gross investment gains on available-for-sale securities were $220, $125 and $168 for the years ended December 31, 2020, 2019 and 2018. Gross investment losses on available-for-sale securities were $220, $131 and $164 for the years ended December 31, 2020, 2019 and 2018. For the year ended December 31, 2020, $3 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of December 31, 2020. For the year ended December 31, 2019, $66 of investment gains were recognized due to the change in fair value of non-redeemable preferred stock still held as of December 31, 2019.
Allowance for Credit Losses

The following table presents the activity related to the allowance on available-for-sale securities with credit impairments and PCD assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $371 million 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, 2020
  
Corporate and Other Bonds
    
Asset-backed
    
Total
  
                   
Allowance for credit losses:
                  
Balance as of December 31, 2019
  
$
-
    
$
-
    
$
-
  
Additions to the allowance for credit losses:
                        
Impact of adopting ASC 326
    
6
              
6
  
Securities for which credit losses were not previously recorded
    
67
      
12
      
79
  
Available-for-sale securities accounted for as PCD assets
    
5
              
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 (decrease) 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 31
  
2020
    
2019
    
2018
  
(In millions)
                  
                   
Fixed maturity securities available-for-sale:
                  
Corporate and other bonds
  
$
87
    
$
33
    
$
12
  
Asset-backed
    
24
      
11
      
9
  
Impairment losses recognized in earnings
  
$
111
    
$
44
    
$
21
  
Amortized Cost and Fair Values of Fixed Maturity Securities

The amortized cost and fair values of fixed maturity securities are as follows:

  
Cost or
    
Gross
    
Gross
    
Allowance
        
   
Amortized
    
Unrealized
    
Unrealized
    
for Credit
    
Estimated
  
December 31, 2020
  
Cost
    
Gains
    
Losses
    
Losses (a)
    
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-backed
    
3,442
      
146
      
1
              
3,587
  
Commercial mortgage-backed
    
1,933
      
93
      
42
      
17
      
1,967
  
Other asset-backed
    
2,179
      
81
      
9
              
2,251
  
Total asset-backed
    
7,554
      
320
      
52
      
17
      
7,805
  
U.S. Treasury and obligations of government sponsored enterprises
    
339
      
2
      
3
              
338
  
Foreign government
    
512
      
32
                      
544
  
Fixed maturities available-for-sale
    
38,926
      
5,795
      
77
      
40
      
44,604
  
Fixed maturities trading
    
37
      
5
                      
42
  
Total fixed maturity securities
  
$
38,963
    
$
5,800
    
$
77
    
$
40
    
$
44,646
  

 
Cost or
    
Gross
    
Gross
          
Unrealized
  
   
Amortized
    
Unrealized
    
Unrealized
    
Estimated
    
OTTI Losses
  
December 31, 2019
  
Cost
    
Gains
    
Losses
    
Fair Value
    
(Gains) (a)
  
                               
Fixed maturity securities:
                              
Corporate and other bonds
  
$
19,789
    
$
2,292
    
$
32
    
$
22,049
        
States, municipalities and political subdivisions
    
9,093
      
1,559
              
10,652
        
Asset-backed:
                                      
Residential mortgage-backed
    
4,387
      
133
      
1
      
4,519
    
$
(17
)
Commercial mortgage-backed
    
2,265
      
86
      
5
      
2,346
      
1
  
Other asset-backed
    
1,925
      
41
      
4
      
1,962
      
(3
)
Total asset-backed
    
8,577
      
260
      
10
      
8,827
      
(19
)
U.S. Treasury and obligations of government sponsored enterprises
    
146
      
1
      
2
      
145
          
Foreign government
    
491
      
14
      
1
      
504
          
Redeemable preferred stock
    
10
                      
10
          
Fixed maturities available-for-sale
    
38,106
      
4,126
      
45
      
42,187
      
(19
)
Fixed maturities trading
    
51
      
2
              
53
          
Total fixed maturity securities
  
$
38,157
    
$
4,128
    
$
45
    
$
42,240
    
$
(19
)

(a)
On January 1, 2020, the Company adopted ASU 2016-13; see Note 1. The Unrealized OTTI Losses (Gains) column that tracked subsequent valuation changes on securities for which a credit loss had previously been recorded has been replaced with the Allowance for Credit Losses column. Prior period amounts were not adjusted for the adoption of this standard.
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 Months
        
   
12 Months
    
or Longer
    
Total
  
         
Gross
          
Gross
          
Gross
  
   
Estimated
    
Unrealized
    
Estimated
    
Unrealized
    
Estimated
    
Unrealized
  
December 31, 2020
  
Fair Value
    
Losses
    
Fair Value
    
Losses
    
Fair Value
    
Losses
  
(In millions)
                                    
                                     
Fixed maturity securities:
                                    
Corporate and other bonds
  
$
609
    
$
21
    
$
12
    
$
1
    
$
621
    
$
22
  
States, municipalities and political subdivisions
    
33
                              
33
          
Asset-backed:
                                                
Residential mortgage-backed
    
71
      
1
      
11
              
82
      
1
  
Commercial mortgage-backed
    
533
      
40
      
28
      
2
      
561
      
42
  
Other asset-backed
    
344
      
9
      
13
              
357
      
9
  
Total asset-backed
    
948
      
50
      
52
      
2
      
1,000
      
52
  
U.S. Treasury and obligations of government-sponsored enterprises
    
63
      
3
                      
63
      
3
  
Foreign government
    
13
                              
13
          
Total fixed maturity securities
  
$
1,666
    
$
74
    
$
64
    
$
3
    
$
1,730
    
$
77
  

December 31, 2019
                                    
                                     
Fixed maturity securities:
                                    
Corporate and other bonds
  
$
914
    
$
21
    
$
186
    
$
11
    
$
1,100
    
$
32
  
States, municipalities and political subdivisions
    
34
                              
34
          
Asset-backed:
                                                
Residential mortgage-backed
    
249
      
1
      
30
              
279
      
1
  
Commercial mortgage-backed
    
381
      
3
      
20
      
2
      
401
      
5
  
Other asset-backed
    
449
      
3
      
33
      
1
      
482
      
4
  
Total asset-backed
    
1,079
      
7
      
83
      
3
      
1,162
      
10
  
U.S. Treasury and obligations of government-sponsored enterprises
    
62
      
2
      
2
              
64
      
2
  
Foreign government
    
59
      
1
      
1
              
60
      
1
  
Total fixed maturity securities
  
$
2,148
    
$
31
    
$
272
    
$
14
    
$
2,420
    
$
45
  
Available-for-sale Fixed Maturity Securities by Contractual Maturity

The following table presents available-for-sale fixed maturity securities by contractual maturity.

December 31
  
2020
    
2019
  
   
Cost or
    
Estimated
    
Cost or
    
Estimated
  
   
Amortized
    
Fair
    
Amortized
    
Fair
  
   
Cost
    
Value
    
Cost
    
Value
  
(In millions)
                        
                         
Due in one year or less
  
$
1,456
    
$
1,458
    
$
1,334
    
$
1,356
  
Due after one year through five years
    
12,304
      
13,098
      
9,746
      
10,186
  
Due after five years through ten years
    
12,319
      
13,878
      
14,892
      
15,931
  
Due after ten years
    
12,847
      
16,170
      
12,134
      
14,714
  
Total
  
$
38,926
    
$
44,604
    
$
38,106
    
$
42,187
  
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:

  
Mortgage Loans Amortized Cost Basis by Origination Year (a)
  
As of December 31, 2020
  
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Total
  
(In millions)
                                          
                                           
DSCR ≥1.6x
                                          
LTV less than 55%
  
$
75
    
$
33
    
$
36
    
$
115
    
$
33
    
$
156
    
$
448
  
LTV 55% to 65%
    
14
      
20
      
14
      
15
      
11
              
74
  
LTV greater than 65%
            
5
                      
25
              
30
  
DSCR 1.2x - 1.6x
                                                        
LTV less than 55%
            
17
              
5
      
9
      
68
      
99
  
LTV 55% to 65%
    
20
      
29
      
53
      
27
                      
129
  
LTV greater than 65%
    
52
      
54
              
8
              
12
      
126
  
DSCR ≤1.2x
                                                        
LTV less than 55%
            
50
              
8
      
7
      
3
      
68
  
LTV 55% to 65%
            
48
                                      
48
  
LTV greater than 65%
            
28
              
37
              
7
      
72
  
Total
  
$
161
    
$
284
    
$
103
    
$
215
    
$
85
    
$
246
    
$
1,094
  

(a)
The values in the table above reflect DSCR on a standardized amortization period and LTV 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 31
  
2020
    
2019
  
   
Contractual/
                
Contractual/
              
   
Notional
    
Estimated Fair Value
    
Notional
    
Estimated Fair Value
  
   
Amount
    
Asset
    
(Liability)
    
Amount
    
Asset
    
(Liability)
  
(In millions)
                                    
                                     
With hedge designation:
                                    
                                     
Interest rate swaps
  
$
675
          
$
(26
)
  
$
715
          
$
(8
)
                                             
Without hedge designation:
                                            
                                             
Equity:
                                            
Options – purchased
    
135
    
$
3
              
57
    
$
1
          
– written
                            
100
              
(1
)
Interest rate swaps
    
100
              
(3
)
                        
Embedded derivative on funds withheld liability
    
190
              
(19
)
    
182
              
(7
)