XML 32 R22.htm IDEA: XBRL DOCUMENT

Investments (Tables)

9 Months Ended

Sep. 30, 2022

Financing Receivable, Credit Quality Indicator [Line Items]

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



	As of September 30, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	88,844	$	593	$	11,746	$	7	$	77,684
U.S. government bonds		382		6		31		-		357
State and municipal bonds		5,199		186		481		-		4,904
Foreign government bonds		369		16		54		-		331
RMBS		2,052		26		200		5		1,873
CMBS		1,780		-		238		-		1,542
ABS		11,335		34		1,023		5		10,341
Hybrid and redeemable preferred securities		362		28		30		1		359
Total fixed maturity AFS securities	$	110,323	$	889	$	13,803	$	18	$	97,391



	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

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	2,970	$	2,937
Due after one year through five years		17,244		16,322
Due after five years through ten years		19,381		17,241
Due after ten years		55,561		47,135
Subtotal		95,156		83,635
Structured securities (RMBS, CMBS, ABS)		15,167		13,756
Total fixed maturity AFS securities	$	110,323	$	97,391

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



	As of September 30, 2022
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses ⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	61,490		$	10,502	$	3,429		$	1,244	$	64,919		$	11,746
U.S. government bonds		244			25		22			6		266			31
State and municipal bonds		1,921			445		96			36		2,017			481
Foreign government bonds		123			25		76			29		199			54
RMBS		1,475			193		33			7		1,508			200
CMBS		1,315			178		216			60		1,531			238
ABS		8,286			845		1,596			178		9,882			1,023
Hybrid and redeemable
preferred securities		95			6		67			24		162			30
Total fixed maturity AFS securities	$	74,949		$	12,219	$	5,535		$	1,584	$	80,484		$	13,803

Total number of fixed maturity AFS securities in an unrealized loss position															8,051


	As of December 31, 2021
	Less Than or Equal					Greater Than
	to Twelve Months					Twelve Months					Total
				Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value			Losses		Value			Losses		Value			Losses ⁽¹⁾
Fixed maturity AFS securities:
Corporate bonds	$	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

⁽¹⁾As of September 30, 2022, and December 31, 2021, we recognized $8 million of gross unrealized losses in other comprehensive income (loss) (“OCI”) for fixed maturity AFS securities for which an allowance for credit losses has been recorded.

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



	As of September 30, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities⁽¹⁾
Less than six months	$	18,195	$	6,892			2,149
Six months or greater, but less than nine months		394		266			78
Nine months or greater, but less than twelve months		1		-			2
Twelve months or greater		1		-			13
Total	$	18,591	$	7,158			2,242



	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

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

Changes In Allowance For Credit Losses Of AFS


	For the Three
	Months Ended
	September 30, 2022
	Corporate
	Bonds		RMBS		Other		Total
Balance as of beginning-of-period	$	7	$	3	$	2	$	12
Additions from purchases of PCD debt securities ⁽¹⁾		-		-		-		-
Additions for securities for which credit losses were not
previously recognized		-		2		1		3
Additions (reductions) for securities for which credit losses
were previously recognized		-		-		3		3
Balance as of end-of-period ⁽²⁾	$	7	$	5	$	6	$	18


	For the Nine
	Months Ended
	September 30, 2022
	Corporate
	Bonds			RMBS		Other		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		2			2		1		5
Additions (reductions) for securities for which credit losses
were previously recognized		1			2		4		7
Reductions for securities disposed		(1	)		-		-		(1	)
Reductions for securities charged-off		(12	)		-		-		(12	)
Balance as of end-of-period ⁽²⁾	$	7		$	5	$	6	$	18


	For the Three
	Months Ended
	September 30, 2021
	Corporate
	Bonds		RMBS		Other		Total
Balance as of beginning-of-period	$	8	$	1	$	-	$	9
Additions from purchases of PCD debt securities ⁽¹⁾		-		-		-		-
Additions for securities for which credit losses were not
previously recognized		8		-		-		8
Balance as of end-of-period ⁽²⁾	$	16	$	1	$	-	$	17

‎


	For the Nine
	Months Ended
	September 30, 2021
	Corporate
	Bonds			RMBS		Other		Total
Balance as of beginning-of-year	$	12		$	1	$	-	$	13
Additions from purchases of PCD debt securities ⁽¹⁾		-			-		-		-
Additions for securities for which credit losses were not
previously recognized		8			-		-		8
Additions (reductions) for securities for which credit losses
were previously recognized		2			-		-		2
Reductions for securities charged-off		(6	)		-		-		(6	)
Balance as of end-of-period ⁽²⁾	$	16		$	1	$	-	$	17

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

⁽²⁾As of September 30, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $1.1 billion and $1.0 billion, respectively, and was excluded from the estimate of credit losses.

Composition Of Current And Past Due Mortgage Loans On Real Estate



	As of September 30, 2022									As of December 31, 2021
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,803		$	1,214		$	18,017		$	17,068		$	837		$	17,905
30 to 59 days past due		-			12			12			15			21			36
60 to 89 days past due		-			5			5			-			5			5
90 or more days past due		-			28			28			-			29			29
Allowance for credit losses		(80	)		(11	)		(91	)		(78	)		(17	)		(95	)
Unamortized premium (discount)		(9	)		34			25			(11	)		27			16
Mark-to-market gains (losses) ⁽¹⁾		(21	)		-			(21	)		(3	)		-			(3	)
Total carrying value	$	16,693		$	1,282		$	17,975		$	16,991		$	902		$	17,893

⁽¹⁾Represents the mark-to-market on certain mortgage loans on real estate for which we have elected the fair value option. See Note 12 for additional information.

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



	For the Three				For the Nine
	Months Ended				Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Average aggregate carrying value for impaired mortgage loans on real estate	$	13	$	31	$	16	$	33
Interest income recognized on impaired mortgage loans on real estate		-		-		-		-
Interest income collected on impaired mortgage loans on real estate		-		-		-		-

Amortized Cost Of Mortgage Loans On Real Estate On Nonaccrual Status



	As of September 30, 2022				As of December 31, 2021
	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		-		29		-		30
Total	$	-	$	29	$	-	$	30

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


	For the Nine
	Months Ended
	September 30, 2021
	Commercial			Residential			Total
Balance as of beginning-of-year	$	186		$	17		$	203
Additions (reductions) from provision for credit loss expense ⁽¹⁾		(72	)		(1	)		(73	)
Additions from purchases of PCD mortgage loans on real estate		-			-			-
Balance as of end-of-period ⁽²⁾	$	114		$	16		$	130

⁽¹⁾We recognized $1 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended September 30, 2022 and 2021. We recognized less than $1 million and $4 million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the nine months ended September 30, 2022 and 2021, respectively.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $50 million as of September 30, 2022 and 2021, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2022			2021			2022			2021
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	-		$	(8	)	$	(2	)	$	(9	)
RMBS		(2	)		-			(4	)		-
ABS		(3	)		-			(5	)		-
Gross credit loss benefit (expense)		(5	)		(8	)		(11	)		(9	)
Associated amortization of DAC, VOBA, DSI and DFEL ⁽¹⁾		-			-			-			-
Net credit loss benefit (expense)	$	(5	)	$	(8	)	$	(11	)	$	(9	)

⁽¹⁾DAC, value of business acquired (“VOBA”), deferred sales inducements (“DSI”) and deferred front-end loads (“DFEL”).

Payables For Collateral On Investments



	As of September 30, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments ⁽¹⁾	$	3,425	$	3,425	$	5,565	$	5,565
Securities pledged under securities lending agreements ⁽²⁾		300		289		241		235
Investments pledged for Federal Home Loan Bank of
Indianapolis ⁽³⁾		3,130		3,911		3,130		4,876
Total payables for collateral on investments	$	6,855	$	7,625	$	8,936	$	10,676

⁽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 Federal Home Loan Bank (“FHLB”) of Indianapolis (“FHLBI”) are included in fixed maturity AFS securities and mortgage loans on real estate on our Consolidated Balance Sheets. The collateral requirements are generally 105% to 115% of the fair value for fixed maturity AFS securities and 155% to 175% of the fair value for mortgage loans on real estate. The cash received in these transactions is primarily invested in cash and invested cash or fixed maturity AFS securities.

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



	For the Nine
	Months Ended
	September 30,
	2022			2021
Collateral payable for derivative investments	$	(2,140	)	$	1,978
Securities pledged under securities lending agreements		59			185
Total increase (decrease) in payables for collateral on investments	$	(2,081	)	$	2,163

Schedule Of Securities Pledged By Contractual Maturity


	As of September 30, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	298	$	-	$	-	$	-	$	298
Foreign government bonds		2		-		-		-		2
Total gross secured borrowings	$	300	$	-	$	-	$	-	$	300



	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
Foreign government bonds		1		-		-		-		1
Equity securities		1		-		-		-		1
Total gross secured borrowings	$	241	$	-	$	-	$	-	$	241

Commercial [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Mortgage Loans By Year Of Origination

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 September 30, 2022
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2022	$	1,338	2.16	$	76	1.51	$	1	1.57	$	1,415
2021		2,341	3.05		73	1.52		-	-		2,414
2020		1,287	2.98		18	1.54		-	-		1,305
2019		2,667	2.12		103	1.54		-	-		2,770
2018		2,169	2.13		141	1.54		14	0.54		2,324
2017 and prior		6,392	2.37		173	1.55		1	1.06		6,566
Total	$	16,194		$	584		$	16		$	16,794


	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

Residential [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Mortgage Loans By Year Of Origination



	As of September 30, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	423		$	-	$	423
2021		542			5		547
2020		95			2		97
2019		134			18		152
2018		70			4		74
2017 and prior		-			-		-
Total	$	1,264		$	29	$	1,293


	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