Investments	12 Months Ended
Dec. 31, 2021
Investments [Abstract]
Investments	4. Investments Fixed Maturity AFS Securities In 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related amendments (“ASU 2016-13”), which resulted in a new recognition and measurement of credit losses on most financial assets. The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2021 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds$ 86,197 $ 11,569 $ 326 $ 17 $ 97,423 U.S. government bonds 348 54 2 - 400 State and municipal bonds 5,113 1,275 11 - 6,377 Foreign government bonds 365 63 5 - 423 RMBS 2,132 178 4 1 2,305 CMBS 1,542 62 14 - 1,590 ABS 8,433 127 54 - 8,506 Hybrid and redeemable preferred securities 396 103 11 1 487 Total fixed maturity AFS securities $ 104,526 $ 13,431 $ 427 $ 19 $ 117,511 As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds$ 85,625 $ 15,947 $ 136 $ 12 $ 101,424 U.S. government bonds 369 81 1 - 449 State and municipal bonds 5,145 1,517 - - 6,662 Foreign government bonds 380 86 1 - 465 RMBS 2,551 289 1 1 2,838 CMBS 1,380 115 - - 1,495 ABS 7,035 158 15 - 7,178 Hybrid and redeemable preferred securities 536 94 30 - 600 Total fixed maturity AFS securities $ 103,021 $ 18,287 $ 184 $ 13 $ 121,111 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2021, were as follows: Amortized Fair Cost Value Due in one year or less$ 2,854 $ 2,868 Due after one year through five years 15,315 15,944 Due after five years through ten years 19,344 20,660 Due after ten years 54,906 65,638 Subtotal 92,419 105,110 Structured securities (RMBS, CMBS, ABS) 12,107 12,401 Total fixed maturity AFS securities $ 104,526 $ 117,511 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. 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, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross FairUnrealizedFairUnrealizedFair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds$ 10,611 $ 230 $ 1,386 $ 96 $ 11,997 $ 326 U.S. government bonds 6 - 26 2 32 2 State and municipal bonds 498 10 19 1 517 11 Foreign government bonds 61 3 56 2 117 5 RMBS 261 3 20 1 281 4 CMBS 440 12 33 2 473 14 ABS 4,646 49 165 5 4,811 54 Hybrid and redeemable preferred securities 47 1 76 10 123 11 Total fixed maturity AFS securities$ 16,570 $ 308 $ 1,781 $ 119 $ 18,351 $ 427 Total number of fixed maturity AFS securities in an unrealized loss position 2,577 As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross FairUnrealizedFairUnrealizedFair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds$ 2,785 $ 85 $ 588 $ 51 $ 3,373 $ 136 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 43 1 6 - 49 1 ABS 1,527 9 355 6 1,882 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities$ 4,552 $ 110 $ 1,045 $ 74 $ 5,597 $ 184 Total number of fixed maturity AFS securities in an unrealized loss position 782 (1)As of December 31, 2021 and 2020, we recognized $8 million and $1 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2021 Gross Number Fair Unrealized of Value Losses Securities (1)Less than six months$ 12 $ 3 6 Twelve months or greater 58 8 24 Total$ 70 $ 11 30 As of December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1)Less than six months$ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 22 6 13 Twelve months or greater 30 11 20 Total$ 117 $ 41 51 (1)We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $243 million for the year ended December 31, 2021. As discussed further below, we believe the unrealized loss position as of December 31, 2021, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of December 31, 2021, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of December 31, 2021, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2021 and 2020, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2021 and 2020, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.5 billion and $3.8 billion, respectively, and a fair value of $3.7 billion and $4.0 billion, respectively. Based upon the analysis discussed above, we believe that as of December 31, 2021 and 2020, we would have recovered the amortized cost of each corporate bond. As of December 31, 2021, the unrealized losses associated with our MBS and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of December 31, 2021, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our fixed maturity AFS securities. 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, 2021 Corporate Bonds RMBS Other Total Balance as of beginning-of-year$ 12 $ 1 $ - $ 13 Additions for securities for which credit losses were not previously recognized 8 - 1 9 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized 5 - - 5 Reductions for securities disposed (2) - - (2)Reductions for securities charged-off (6) - - (6)Balance as of end-of-year (2)$ 17 $ 1 $ 1 $ 19 For the Year Ended December 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year$ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 40 1 1 42 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized (1) - (1) (2)Reductions for securities disposed (15) - - (15)Reductions for securities charged-off (12) - - (12)Balance as of end-of-year (2)$ 12 $ 1 $ - $ 13 (1)Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.(2)As of December 31, 2021 and 2020, accrued interest receivable on fixed maturity AFS securities totaled $944 million and $1.0 billion, respectively, and was excluded from the estimate of credit losses. Changes in the amount of credit loss of other-than-temporary impairment (“OTTI”) recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Year Ended December 31, 2019 Balance as of beginning-of-year $ 337 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 13 Credit losses on securities for which an OTTI was previously recognized 2 Decreases attributable to: Securities sold, paid down or matured (148) Balance as of end-of-year $ 204 Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2021 2020 Fixed maturity securities: Corporate bonds$ 2,679 $ 3,049 U.S. government bonds 32 - State and municipal bonds 27 28 Foreign government bonds 73 92 RMBS 95 131 CMBS 137 134 ABS 1,338 966 Hybrid and redeemable preferred securities 46 42 Total trading securities$ 4,427 $ 4,442 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2021, 2020 and 2019, was $(48) million, $117 million and $225 million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2021 As of December 31, 2020 Commercial Residential Total Commercial Residential Total Current$ 17,068 $ 837 $ 17,905 $ 16,162 $ 610 $ 16,772 30 to 59 days past due 15 21 36 4 28 32 60 to 89 days past due - 5 5 - 8 8 90 or more days past due - 29 29 - 69 69 Allowance for credit losses (78) (17) (95) (186) (17) (203)Unamortized premium (discount) (11) 27 16 (14) 22 8 Mark-to-market gains (losses) (1) (3) - (3) (5) - (5)Total carrying value$ 16,991 $ 902 $ 17,893 $ 15,961 $ 720 $ 16,681 (1)Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 20 for additional information. Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 26% and 24% of commercial mortgage loans on real estate as of December 31, 2021 and 2020, respectively, and Texas, which accounted for 9% and 10% of commercial mortgage loans on real estate as of December 31, 2021 and 2020, respectively. Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 22% and 32% of residential mortgage loans on real estate as of December 31, 2021 and 2020, respectively, and Florida, which accounted for 14% and 18% of residential mortgage loans on real estate as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, we had 65 and 147 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of December 31, 2021 and 2020, we had 34 and 75 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $15 million and $27 million, respectively. As of December 31, 2021 and 2020, there were four specifically identified impaired commercial mortgage loans with an aggregate carrying value of $1 million. As of December 31, 2021 and 2020, there were 50 and 76 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $22 million and $34 million, respectively. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2021 2020 2019 Average aggregate carrying value for impaired mortgage loans on real estate$ 32 $ 21 $ - Interest income recognized on impaired mortgage loans on real estate - - - Interest income collected on impaired mortgage loans on real estate - - - The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of December 31, 2021 As of December 31, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate$ - $ - $ - $ - Residential mortgage loans on real estate - 30 - 71 Total$ - $ 30 $ - $ 71 We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. 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, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2021$ 2,361 3.05 $ 136 1.74 $ - - $ 2,497 2020 1,349 3.02 144 2.06 - - 1,493 2019 2,875 2.14 187 1.42 - - 3,062 2018 2,272 2.13 168 1.59 15 1.02 2,455 2017 1,648 2.33 149 1.74 27 0.83 1,824 2016 and prior 5,543 2.41 171 1.76 27 1.08 5,741 Total$ 16,048 $ 955 $ 69 $ 17,072 As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2020$ 1,495 2.85 $ 32 1.52 $ - - $ 1,527 2019 3,098 2.24 258 1.78 2 1.74 3,358 2018 2,379 2.16 182 1.49 15 0.71 2,576 2017 1,779 2.34 169 1.73 - - 1,948 2016 1,711 2.37 174 1.56 22 1.58 1,907 2015 and prior 4,695 2.38 133 1.95 8 1.02 4,836 Total$ 15,157 $ 948 $ 47 $ 16,152 We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. 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, 2021 Performing Nonperforming Total Origination Year 2021$ 467 $ 2 $ 469 2020 129 2 131 2019 189 21 210 2018 104 5 109 2017 - - - 2016 and prior - - - Total$ 889 $ 30 $ 919 As of December 31, 2020 Performing Nonperforming Total Origination Year 2020$ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total$ 666 $ 71 $ 737 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our 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, 2021 Commercial Residential Total Balance as of beginning-of-year$ 186 $ 17 $ 203 Additions (reductions) from provision for credit loss expense (1) (108) - (108)Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2)$ 78 $ 17 $ 95 For the Year Ended December 31, 2020 Commercial Residential Total Balance as of beginning-of-year$ - $ 2 $ 2 Impact of adopting ASU 2016-13 61 26 87 Additions (reductions) from provision for credit loss expense (3) 125 (11) 114 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2)$ 186 $ 17 $ 203 (1)Due to improving economic projections, the provision for credit loss expense decreased by $108 million for the year ended December 31, 2021. We recognized $3 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2021.(2)Accrued interest receivable on mortgage loans on real estate totaled $48 million as of December 31, 2021 and 2020, and was excluded from the estimate of credit losses.(3)Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $114 million for the year ended December 31, 2020. We recognized $(2) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2020. There were no changes in the valuation allowance associated with impaired mortgage loans on real estate for the year ended December 31, 2019. Alternative Investments As of December 31, 2021 and 2020, alternative investments included investments in 305 and 270 different partnerships, respectively, and represented approximately 2% and 1% of total investments, respectively. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2021 2020 2019 Fixed maturity AFS securities$ 4,242 $ 4,241 $ 4,214 Trading securities 165 198 187 Equity securities 3 3 4 Mortgage loans on real estate 677 674 626 Real estate - 1 1 Policy loans 115 124 128 Invested cash - 13 33 Commercial mortgage loan prepayment and bond make-whole premiums 195 78 115 Alternative investments 677 218 24 Consent fees 10 5 7 Other investments 60 42 27 Investment income 6,144 5,597 5,366 Investment expense (300) (333) (404)Net investment income$ 5,844 $ 5,264 $ 4,962 Impairments on Fixed Maturity AFS Securities Details underlying 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, 2021 2020 2019 Credit Loss Benefit (Expense) (1) Fixed maturity AFS securities: Corporate bonds$ (10)$ (24)$ (13)RMBS - (1) (1)ABS - - (1)Hybrid and redeemable preferred securities (1) - - Gross credit loss benefit (expense) (11) (25) (15)Associated amortization of DAC, VOBA, DSI and DFEL - 1 - Net credit loss benefit (expense)$ (11)$ (24)$ (15) (1)For the years ended December 31, 2021 and 2020, we recognized credit loss benefit (expense) incurred and write-downs taken as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the year ended December 31, 2019, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss). During the year ended December 31, 2019, we recorded $14 million of OTTI recognized in OCI.‎ Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1)$ 5,565 $ 5,565 $ 2,970 $ 2,970 Securities pledged under securities lending agreements (2) 241 235 115 112 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 3,130 4,876 3,130 5,049 Total payables for collateral on investments$ 8,936 $ 10,676 $ 6,215 $ 8,131 (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. 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 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. We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of December 31, 2021 and 2020, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2021 2020 2019 Collateral payable for derivative investments$ 2,595 $ 1,587 $ 767 Securities pledged under securities lending agreements 126 1 26 Securities pledged under repurchase agreements - - (152)Investments pledged for FHLBI - (450) (350)Total increase (decrease) in payables for collateral on investments$ 2,721 $ 1,138 $ 291 We have elected not to offset our securities lending transactions in our consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2021 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds$ 239 $ - $ - $ - $ 239 Equity securities 1 - - - 1 Foreign government bonds 1 - - - 1 Total gross secured borrowings$ 241 $ - $ - $ - $ 241 As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds$ 114 $ - $ - $ - $ 114 Foreign government bonds 1 - - - 1 Total gross secured borrowings$ 115 $ - $ - $ - $ 115 We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of December 31, 2021, the fair value of all collateral received that we are permitted to sell or re-pledge was $22 million, and we had re-pledged all of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments. Investment Commitments As of December 31, 2021, our investment commitments were $3.1 billion, which included $1.5 billion of LPs, $987 million of private placement securities and $574 million of mortgage loans on real estate. Concentrations of Financial Instruments As of December 31, 2021, our most significant investments in one issuer were our investments in securities issued by the White Chapel LLC and Federal Home Loan Mortgage Corporation with a fair value of $995 million and $910 million, respectively, or 1% of total investments. As of December 31, 2020, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation and by White Chapel LLC with a fair value of $1.2 billion and $1.0 billion, respectively, or 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2021 and 2020, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $21.7 billion, or 14% of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $18.6 billion and $19.2 billion, respectively, or 12% and 13%, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities.

Investments

12 Months Ended

Dec. 31, 2021

4. Investments Fixed Maturity AFS Securities In 2020, we adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and related amendments (“ASU 2016-13”), which resulted in a new recognition and measurement of credit losses on most financial assets. The amortized cost, gross unrealized gains, losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows: As of December 31, 2021 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds$ 86,197 $ 11,569 $ 326 $ 17 $ 97,423 U.S. government bonds 348 54 2 - 400 State and municipal bonds 5,113 1,275 11 - 6,377 Foreign government bonds 365 63 5 - 423 RMBS 2,132 178 4 1 2,305 CMBS 1,542 62 14 - 1,590 ABS 8,433 127 54 - 8,506 Hybrid and redeemable preferred securities 396 103 11 1 487 Total fixed maturity AFS securities $ 104,526 $ 13,431 $ 427 $ 19 $ 117,511 As of December 31, 2020 Allowance Amortized Gross Unrealized for Credit Fair Cost Gains Losses Losses Value Fixed maturity AFS securities: Corporate bonds$ 85,625 $ 15,947 $ 136 $ 12 $ 101,424 U.S. government bonds 369 81 1 - 449 State and municipal bonds 5,145 1,517 - - 6,662 Foreign government bonds 380 86 1 - 465 RMBS 2,551 289 1 1 2,838 CMBS 1,380 115 - - 1,495 ABS 7,035 158 15 - 7,178 Hybrid and redeemable preferred securities 536 94 30 - 600 Total fixed maturity AFS securities $ 103,021 $ 18,287 $ 184 $ 13 $ 121,111 The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2021, were as follows: Amortized Fair Cost Value Due in one year or less$ 2,854 $ 2,868 Due after one year through five years 15,315 15,944 Due after five years through ten years 19,344 20,660 Due after ten years 54,906 65,638 Subtotal 92,419 105,110 Structured securities (RMBS, CMBS, ABS) 12,107 12,401 Total fixed maturity AFS securities $ 104,526 $ 117,511 Actual maturities may differ from contractual maturities because issuers may have the right to call or pre-pay obligations. 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, 2021 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross FairUnrealizedFairUnrealizedFair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds$ 10,611 $ 230 $ 1,386 $ 96 $ 11,997 $ 326 U.S. government bonds 6 - 26 2 32 2 State and municipal bonds 498 10 19 1 517 11 Foreign government bonds 61 3 56 2 117 5 RMBS 261 3 20 1 281 4 CMBS 440 12 33 2 473 14 ABS 4,646 49 165 5 4,811 54 Hybrid and redeemable preferred securities 47 1 76 10 123 11 Total fixed maturity AFS securities$ 16,570 $ 308 $ 1,781 $ 119 $ 18,351 $ 427 Total number of fixed maturity AFS securities in an unrealized loss position 2,577 As of December 31, 2020 Less Than or Equal Greater Than to Twelve Months Twelve Months Total Gross Gross Gross FairUnrealizedFairUnrealizedFair Unrealized Value Losses Value Losses Value Losses (1) Fixed maturity AFS securities: Corporate bonds$ 2,785 $ 85 $ 588 $ 51 $ 3,373 $ 136 U.S. government bonds 28 1 - - 28 1 Foreign government bonds 57 1 - - 57 1 RMBS 43 1 6 - 49 1 ABS 1,527 9 355 6 1,882 15 Hybrid and redeemable preferred securities 112 13 96 17 208 30 Total fixed maturity AFS securities$ 4,552 $ 110 $ 1,045 $ 74 $ 5,597 $ 184 Total number of fixed maturity AFS securities in an unrealized loss position 782 (1)As of December 31, 2021 and 2020, we recognized $8 million and $1 million of gross unrealized losses, respectively, in OCI for fixed maturity AFS securities for which an allowance for credit losses has been recorded. The fair value, gross unrealized losses (in millions) and number of fixed maturity AFS securities where the fair value had declined and remained below amortized cost by greater than 20% were as follows: As of December 31, 2021 Gross Number Fair Unrealized of Value Losses Securities (1)Less than six months$ 12 $ 3 6 Twelve months or greater 58 8 24 Total$ 70 $ 11 30 As of December 31, 2020 Gross Number Fair Unrealized of Value Losses Securities (1)Less than six months$ 63 $ 23 14 Six months or greater, but less than nine months 2 1 4 Nine months or greater, but less than twelve months 22 6 13 Twelve months or greater 30 11 20 Total$ 117 $ 41 51 (1)We may reflect a security in more than one aging category based on various purchase dates. Our gross unrealized losses on fixed maturity AFS securities increased by $243 million for the year ended December 31, 2021. As discussed further below, we believe the unrealized loss position as of December 31, 2021, did not require an impairment recognized in earnings as (i) we did not intend to sell these fixed maturity AFS securities; (ii) it is not more likely than not that we will be required to sell the fixed maturity AFS securities before recovery of their amortized cost basis; and (iii) the difference in the fair value compared to the amortized cost was due to factors other than credit loss. Based upon this evaluation as of December 31, 2021, management believes we have the ability to generate adequate amounts of cash from our normal operations (e.g., insurance premiums, fee income and investment income) to meet cash requirements with a prudent margin of safety without requiring the sale of our impaired securities. As of December 31, 2021, the unrealized losses associated with our corporate bond, U.S. government bond, state and municipal bond and foreign government bond securities were attributable primarily to widening credit spreads and rising interest rates since purchase. We performed a detailed analysis of the financial performance of the underlying issuers and determined that we expected to recover the entire amortized cost of each impaired security. Credit ratings express opinions about the credit quality of a security. Securities rated investment grade (those rated BBB- or higher by S&P Global Ratings (“S&P”) or Baa3 or higher by Moody’s Investors Service (“Moody’s”)) are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2021 and 2020, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2021 and 2020, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.5 billion and $3.8 billion, respectively, and a fair value of $3.7 billion and $4.0 billion, respectively. Based upon the analysis discussed above, we believe that as of December 31, 2021 and 2020, we would have recovered the amortized cost of each corporate bond. As of December 31, 2021, the unrealized losses associated with our MBS and ABS were attributable primarily to widening credit spreads and rising interest rates since purchase. We assessed for credit impairment using a cash flow model that incorporates key assumptions including default rates, severities and prepayment rates. We estimated losses for a security by forecasting the underlying loans in each transaction. The forecasted loan performance was used to project cash flows to the various tranches in the structure, as applicable. Our forecasted cash flows also considered, as applicable, independent industry analyst reports and forecasts and other independent market data. Based upon our assessment of the expected credit losses of the security given the performance of the underlying collateral compared to our subordination or other credit enhancement, we expected to recover the entire amortized cost of each impaired security. As of December 31, 2021, the unrealized losses associated with our hybrid and redeemable preferred securities were attributable primarily to wider credit spreads caused by illiquidity in the market and subordination within the capital structure, as well as credit risk of underlying issuers. For our hybrid and redeemable preferred securities, we evaluated the financial performance of the underlying issuers based upon credit performance and investment ratings and determined that we expected to recover the entire amortized cost of each impaired security. Credit Loss Impairment on Fixed Maturity AFS Securities We regularly review our fixed maturity AFS securities for declines in fair value that we determine to be impairment-related, including those attributable to credit risk factors that may require an allowance for credit losses. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our fixed maturity AFS securities. 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, 2021 Corporate Bonds RMBS Other Total Balance as of beginning-of-year$ 12 $ 1 $ - $ 13 Additions for securities for which credit losses were not previously recognized 8 - 1 9 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized 5 - - 5 Reductions for securities disposed (2) - - (2)Reductions for securities charged-off (6) - - (6)Balance as of end-of-year (2)$ 17 $ 1 $ 1 $ 19 For the Year Ended December 31, 2020 Corporate Bonds RMBS ABS Total Balance as of beginning-of-year$ - $ - $ - $ - Additions for securities for which credit losses were not previously recognized 40 1 1 42 Additions from purchases of PCD debt securities (1) - - - - Additions (reductions) for securities for which credit losses were previously recognized (1) - (1) (2)Reductions for securities disposed (15) - - (15)Reductions for securities charged-off (12) - - (12)Balance as of end-of-year (2)$ 12 $ 1 $ - $ 13 (1)Represents purchased credit-deteriorated (“PCD”) fixed maturity AFS securities.(2)As of December 31, 2021 and 2020, accrued interest receivable on fixed maturity AFS securities totaled $944 million and $1.0 billion, respectively, and was excluded from the estimate of credit losses. Changes in the amount of credit loss of other-than-temporary impairment (“OTTI”) recognized in net income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows: For the Year Ended December 31, 2019 Balance as of beginning-of-year $ 337 Increases attributable to: Credit losses on securities for which an OTTI was not previously recognized 13 Credit losses on securities for which an OTTI was previously recognized 2 Decreases attributable to: Securities sold, paid down or matured (148) Balance as of end-of-year $ 204 Trading Securities Trading securities at fair value (in millions) consisted of the following: As of December 31, 2021 2020 Fixed maturity securities: Corporate bonds$ 2,679 $ 3,049 U.S. government bonds 32 - State and municipal bonds 27 28 Foreign government bonds 73 92 RMBS 95 131 CMBS 137 134 ABS 1,338 966 Hybrid and redeemable preferred securities 46 42 Total trading securities$ 4,427 $ 4,442 The portion of the market adjustment for trading gains and losses recognized in realized gain (loss) that relate to trading securities still held as of December 31, 2021, 2020 and 2019, was $(48) million, $117 million and $225 million, respectively. Mortgage Loans on Real Estate The following provides the current and past due composition of our mortgage loans on real estate (in millions): As of December 31, 2021 As of December 31, 2020 Commercial Residential Total Commercial Residential Total Current$ 17,068 $ 837 $ 17,905 $ 16,162 $ 610 $ 16,772 30 to 59 days past due 15 21 36 4 28 32 60 to 89 days past due - 5 5 - 8 8 90 or more days past due - 29 29 - 69 69 Allowance for credit losses (78) (17) (95) (186) (17) (203)Unamortized premium (discount) (11) 27 16 (14) 22 8 Mark-to-market gains (losses) (1) (3) - (3) (5) - (5)Total carrying value$ 16,991 $ 902 $ 17,893 $ 15,961 $ 720 $ 16,681 (1)Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 20 for additional information. Our commercial mortgage loan portfolio has the largest concentrations in California, which accounted for 26% and 24% of commercial mortgage loans on real estate as of December 31, 2021 and 2020, respectively, and Texas, which accounted for 9% and 10% of commercial mortgage loans on real estate as of December 31, 2021 and 2020, respectively. Our residential mortgage loan portfolio has the largest concentrations in California, which accounted for 22% and 32% of residential mortgage loans on real estate as of December 31, 2021 and 2020, respectively, and Florida, which accounted for 14% and 18% of residential mortgage loans on real estate as of December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, we had 65 and 147 residential mortgage loans, respectively, that were either delinquent or in foreclosure. As of December 31, 2021 and 2020, we had 34 and 75 residential mortgage loans in foreclosure, respectively, with an aggregate carrying value of $15 million and $27 million, respectively. As of December 31, 2021 and 2020, there were four specifically identified impaired commercial mortgage loans with an aggregate carrying value of $1 million. As of December 31, 2021 and 2020, there were 50 and 76 specifically identified impaired residential mortgage loans, respectively, with an aggregate carrying value of $22 million and $34 million, respectively. Additional information related to impaired mortgage loans on real estate (in millions) was as follows: For the Years Ended December 31, 2021 2020 2019 Average aggregate carrying value for impaired mortgage loans on real estate$ 32 $ 21 $ - Interest income recognized on impaired mortgage loans on real estate - - - Interest income collected on impaired mortgage loans on real estate - - - The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows: As of December 31, 2021 As of December 31, 2020 Nonaccrual Nonaccrual with no with no Allowance Allowance for Credit for Credit Losses Nonaccrual Losses Nonaccrual Commercial mortgage loans on real estate$ - $ - $ - $ - Residential mortgage loans on real estate - 30 - 71 Total$ - $ 30 $ - $ 71 We use loan-to-value and debt-service coverage ratios as credit quality indicators for our commercial mortgage loans on real estate. 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, 2021 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2021$ 2,361 3.05 $ 136 1.74 $ - - $ 2,497 2020 1,349 3.02 144 2.06 - - 1,493 2019 2,875 2.14 187 1.42 - - 3,062 2018 2,272 2.13 168 1.59 15 1.02 2,455 2017 1,648 2.33 149 1.74 27 0.83 1,824 2016 and prior 5,543 2.41 171 1.76 27 1.08 5,741 Total$ 16,048 $ 955 $ 69 $ 17,072 As of December 31, 2020 Debt- Debt- Debt- Service Service Service Less Coverage 65% Coverage Greater Coverage than 65% Ratio to 75% Ratio than 75% Ratio Total Origination Year 2020$ 1,495 2.85 $ 32 1.52 $ - - $ 1,527 2019 3,098 2.24 258 1.78 2 1.74 3,358 2018 2,379 2.16 182 1.49 15 0.71 2,576 2017 1,779 2.34 169 1.73 - - 1,948 2016 1,711 2.37 174 1.56 22 1.58 1,907 2015 and prior 4,695 2.38 133 1.95 8 1.02 4,836 Total$ 15,157 $ 948 $ 47 $ 16,152 We use loan performance status as the primary credit quality indicator for our residential mortgage loans on real estate. 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, 2021 Performing Nonperforming Total Origination Year 2021$ 467 $ 2 $ 469 2020 129 2 131 2019 189 21 210 2018 104 5 109 2017 - - - 2016 and prior - - - Total$ 889 $ 30 $ 919 As of December 31, 2020 Performing Nonperforming Total Origination Year 2020$ 176 $ 8 $ 184 2019 315 51 366 2018 175 12 187 2017 - - - 2016 - - - 2015 and prior - - - Total$ 666 $ 71 $ 737 Credit Losses on Mortgage Loans on Real Estate In connection with our recognition of an allowance for credit losses for mortgage loans on real estate, we perform a quantitative analysis using a probability of default/loss given default/exposure at default approach to estimate expected credit losses in our mortgage loan portfolio as well as unfunded commitments related to commercial mortgage loans, exclusive of certain mortgage loans held at fair value. See Note 1 for a detailed discussion regarding our accounting policy relating to the allowance for credit losses on our 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, 2021 Commercial Residential Total Balance as of beginning-of-year$ 186 $ 17 $ 203 Additions (reductions) from provision for credit loss expense (1) (108) - (108)Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2)$ 78 $ 17 $ 95 For the Year Ended December 31, 2020 Commercial Residential Total Balance as of beginning-of-year$ - $ 2 $ 2 Impact of adopting ASU 2016-13 61 26 87 Additions (reductions) from provision for credit loss expense (3) 125 (11) 114 Additions from purchases of PCD mortgage loans on real estate - - - Balance as of end-of-year (2)$ 186 $ 17 $ 203 (1)Due to improving economic projections, the provision for credit loss expense decreased by $108 million for the year ended December 31, 2021. We recognized $3 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2021.(2)Accrued interest receivable on mortgage loans on real estate totaled $48 million as of December 31, 2021 and 2020, and was excluded from the estimate of credit losses.(3)Due to changes in economic projections driven by the impact of the COVID-19 pandemic, the provision for credit loss expense increased by $114 million for the year ended December 31, 2020. We recognized $(2) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2020. There were no changes in the valuation allowance associated with impaired mortgage loans on real estate for the year ended December 31, 2019. Alternative Investments As of December 31, 2021 and 2020, alternative investments included investments in 305 and 270 different partnerships, respectively, and represented approximately 2% and 1% of total investments, respectively. Net Investment Income The major categories of net investment income (in millions) on our Consolidated Statements of Comprehensive Income (Loss) were as follows: For the Years Ended December 31, 2021 2020 2019 Fixed maturity AFS securities$ 4,242 $ 4,241 $ 4,214 Trading securities 165 198 187 Equity securities 3 3 4 Mortgage loans on real estate 677 674 626 Real estate - 1 1 Policy loans 115 124 128 Invested cash - 13 33 Commercial mortgage loan prepayment and bond make-whole premiums 195 78 115 Alternative investments 677 218 24 Consent fees 10 5 7 Other investments 60 42 27 Investment income 6,144 5,597 5,366 Investment expense (300) (333) (404)Net investment income$ 5,844 $ 5,264 $ 4,962 Impairments on Fixed Maturity AFS Securities Details underlying 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, 2021 2020 2019 Credit Loss Benefit (Expense) (1) Fixed maturity AFS securities: Corporate bonds$ (10)$ (24)$ (13)RMBS - (1) (1)ABS - - (1)Hybrid and redeemable preferred securities (1) - - Gross credit loss benefit (expense) (11) (25) (15)Associated amortization of DAC, VOBA, DSI and DFEL - 1 - Net credit loss benefit (expense)$ (11)$ (24)$ (15) (1)For the years ended December 31, 2021 and 2020, we recognized credit loss benefit (expense) incurred and write-downs taken as a result of impairments through net income (loss), pursuant to ASU 2016-13. For the year ended December 31, 2019, prior to the adoption of ASU 2016-13, we recognized write-downs taken as a result of OTTI through net income (loss). During the year ended December 31, 2019, we recorded $14 million of OTTI recognized in OCI.‎ Payables for Collateral on Investments The carrying value of the payables for collateral on investments included on our Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following: As of December 31, 2021 As of December 31, 2020 Carrying Fair Carrying Fair Value Value Value Value Collateral payable for derivative investments (1)$ 5,565 $ 5,565 $ 2,970 $ 2,970 Securities pledged under securities lending agreements (2) 241 235 115 112 Investments pledged for Federal Home Loan Bank of Indianapolis (“FHLBI”) (3) 3,130 4,876 3,130 5,049 Total payables for collateral on investments$ 8,936 $ 10,676 $ 6,215 $ 8,131 (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. 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 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. We have repurchase agreements through which we can obtain liquidity by pledging securities. The collateral requirements are generally 80% to 95% of the fair value of the securities, and our agreements with third parties contain contractual provisions to allow for additional collateral to be obtained when necessary. The cash received in our repurchase program is typically invested in fixed maturity AFS securities. As of December 31, 2021 and 2020, we were not participating in any open repurchase agreements. Increase (decrease) in payables for collateral on investments (in millions) consisted of the following: For the Years Ended December 31, 2021 2020 2019 Collateral payable for derivative investments$ 2,595 $ 1,587 $ 767 Securities pledged under securities lending agreements 126 1 26 Securities pledged under repurchase agreements - - (152)Investments pledged for FHLBI - (450) (350)Total increase (decrease) in payables for collateral on investments$ 2,721 $ 1,138 $ 291 We have elected not to offset our securities lending transactions in our consolidated financial statements. The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows: As of December 31, 2021 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds$ 239 $ - $ - $ - $ 239 Equity securities 1 - - - 1 Foreign government bonds 1 - - - 1 Total gross secured borrowings$ 241 $ - $ - $ - $ 241 As of December 31, 2020 Overnight and Continuous Up to 30 Days 30 - 90 Days Greater Than 90 Days Total Securities Lending Corporate bonds$ 114 $ - $ - $ - $ 114 Foreign government bonds 1 - - - 1 Total gross secured borrowings$ 115 $ - $ - $ - $ 115 We accept collateral in the form of securities in connection with repurchase agreements. In instances where we are permitted to sell or re-pledge the securities received, we report the fair value of the collateral received and a related obligation to return the collateral in the consolidated financial statements. In addition, we receive securities in connection with securities borrowing agreements that we are permitted to sell or re-pledge. As of December 31, 2021, the fair value of all collateral received that we are permitted to sell or re-pledge was $22 million, and we had re-pledged all of this collateral to cover initial margin and over-the-counter collateral requirements on certain derivative investments. Investment Commitments As of December 31, 2021, our investment commitments were $3.1 billion, which included $1.5 billion of LPs, $987 million of private placement securities and $574 million of mortgage loans on real estate. Concentrations of Financial Instruments As of December 31, 2021, our most significant investments in one issuer were our investments in securities issued by the White Chapel LLC and Federal Home Loan Mortgage Corporation with a fair value of $995 million and $910 million, respectively, or 1% of total investments. As of December 31, 2020, our most significant investments in one issuer were our investments in securities issued by the Federal Home Loan Mortgage Corporation and by White Chapel LLC with a fair value of $1.2 billion and $1.0 billion, respectively, or 1% of total investments. These concentrations include fixed maturity AFS, trading and equity securities. As of December 31, 2021 and 2020, our most significant investments in one industry were our investments in securities in the financial services industry with a fair value of $21.7 billion, or 14% of total investments, and our investments in securities in the consumer non-cyclical industry with a fair value of $18.6 billion and $19.2 billion, respectively, or 12% and 13%, respectively, of total investments. These concentrations include fixed maturity AFS, trading and equity securities.