XML 38 R28.htm IDEA: XBRL DOCUMENT

Investments (Tables)

3 Months Ended

Mar. 31, 2023

Financing Receivable, Credit Quality Indicator [Line Items]

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



	As of March 31, 2023
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	90,738	$	1,108	$	8,950	$	26	$	82,870
U.S. government bonds		397		9		24		-		382
State and municipal bonds		5,259		274		380		-		5,153
Foreign government bonds		329		19		43		-		305
RMBS		2,142		23		174		6		1,985
CMBS		1,902		2		233		-		1,671
ABS		12,200		41		784		4		11,453
Hybrid and redeemable preferred securities		354		25		27		1		351
Total fixed maturity AFS securities	$	113,321	$	1,501	$	10,615	$	37	$	104,170



	As of December 31, 2022
							Allowance
	Amortized		Gross Unrealized				for Credit		Fair
	Cost		Gains		Losses		Losses		Value
Fixed maturity AFS securities:
Corporate bonds	$	88,950	$	763	$	10,538	$	9	$	79,166
U.S. government bonds		377		5		31		-		351
State and municipal bonds		5,198		170		483		-		4,885
Foreign government bonds		339		17		45		-		311
RMBS		2,025		21		203		7		1,836
CMBS		1,908		3		244		-		1,667
ABS		11,791		37		925		4		10,899
Hybrid and redeemable preferred securities		356		25		30		1		350
Total fixed maturity AFS securities	$	110,944	$	1,041	$	12,499	$	21	$	99,465

Available-For-Sale Securities By Contractual Maturities



	Amortized		Fair
	Cost		Value
Due in one year or less	$	3,242	$	3,204
Due after one year through five years		17,849		17,093
Due after five years through ten years		19,493		18,074
Due after ten years		56,493		50,690
Subtotal		97,077		89,061
Structured securities (RMBS, CMBS, ABS)		16,244		15,109
Total fixed maturity AFS securities	$	113,321	$	104,170

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



	As of March 31, 2023
	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	$	44,549		$	4,372	$	18,823		$	4,578	$	63,372		$	8,950
U.S. government bonds		211			17		40			7		251			24
State and municipal bonds		1,077			129		843			251		1,920			380
Foreign government bonds		41			6		98			37		139			43
RMBS		1,211			110		322			64		1,533			174
CMBS		949			83		628			150		1,577			233
ABS		4,684			225		5,887			559		10,571			784
Hybrid and redeemable
preferred securities		63			3		103			24		166			27
Total fixed maturity AFS securities	$	52,785		$	4,945	$	26,744		$	5,670	$	79,529		$	10,615

Total number of fixed maturity AFS securities in an unrealized loss position															7,994



	As of December 31, 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	$	57,656		$	8,684	$	6,867		$	1,854	$	64,523		$	10,538
U.S. government bonds		236			25		27			6		263			31
State and municipal bonds		1,850			414		227			69		2,077			483
Foreign government bonds		122			18		58			27		180			45
RMBS		1,337			160		191			43		1,528			203
CMBS		1,224			156		312			88		1,536			244
ABS		6,712			551		3,325			374		10,037			925
Hybrid and redeemable
preferred securities		61			5		98			25		159			30
Total fixed maturity AFS securities	$	69,198		$	10,013	$	11,105		$	2,486	$	80,303		$	12,499

Total number of fixed maturity AFS securities in an unrealized loss position															8,106

⁽¹⁾As of March 31, 2023, and December 31, 2022, we recognized $15 million and $6 million of gross unrealized losses, respectively, 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 March 31, 2023
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities⁽¹⁾
Less than six months	$	2,411	$	690			359
Six months or greater, but less than nine months		4,356		1,429			691
Nine months or greater, but less than twelve months		4,300		1,924			627
Twelve months or greater		374		226			85
Total	$	11,441	$	4,269			1,762



	As of December 31, 2022
			Gross			Number
	Fair		Unrealized			of
	Value		Losses		Securities⁽¹⁾
Less than six months	$	10,895	$	3,514			1,489
Six months or greater, but less than nine months		4,256		2,150			640
Nine months or greater, but less than twelve months		362		243			73
Twelve months or greater		2		-			15
Total	$	15,515	$	5,907			2,217

⁽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
	March 31, 2023
	Corporate
	Bonds			RMBS			Other		Total
Balance as of beginning-of-year	$	9		$	7		$	5	$	21
Additions from purchases of PCD debt securities ⁽¹⁾		-			-			-		-
Additions for securities for which credit losses were not
previously recognized		18			-			-		18
Additions (reductions) for securities for which credit losses
were previously recognized		-			(1	)		-		(1	)
Reductions for securities disposed		(1	)		-			-		(1	)
Balance as of end-of-period ⁽²⁾	$	26		$	6		$	5	$	37


	For the Three
	Months Ended
	March 31, 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		-			1		1		2
Reductions for securities disposed		(1	)		-		-		(1	)
Balance as of end-of-period ⁽²⁾	$	16		$	2	$	2	$	20

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

⁽²⁾As of March 31, 2023 and 2022, 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 March 31, 2023									As of December 31, 2022
	Commercial			Residential			Total			Commercial			Residential			Total
Current	$	16,918		$	1,330		$	18,248		$	16,913		$	1,315		$	18,228
30 to 59 days past due		-			29			29			19			23			42
60 to 89 days past due		19			10			29			-			6			6
90 or more days past due		-			31			31			-			33			33
Allowance for credit losses		(83	)		(20	)		(103	)		(83	)		(15	)		(98	)
Unamortized premium (discount)		(8	)		36			28			(9	)		36			27
Mark-to-market gains (losses) ⁽¹⁾		(25	)		-			(25	)		(27	)		-			(27	)
Total carrying value	$	16,821		$	1,416		$	18,237		$	16,813		$	1,398		$	18,211

⁽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
	Months Ended
	March 31,
	2023		2022
Average aggregate carrying value for impaired mortgage loans on real estate	$	18	$	21
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 March 31, 2023				As of December 31, 2022
	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		-		32		-		34
Total	$	-	$	32	$	-	$	34

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



	For the Three
	Months Ended
	March 31, 2023
	Commercial		Residential		Total
Balance as of beginning-of-year	$	83	$	15	$	98
Additions (reductions) from provision for credit loss expense ⁽¹⁾		-		5		5
Additions from purchases of PCD mortgage loans on real estate		-		-		-
Balance as of end-of-period ⁽²⁾	$	83	$	20	$	103


	For the Three
	Months Ended
	March 31, 2022
	Commercial			Residential		Total
Balance as of beginning-of-year	$	78		$	17	$	95
Additions (reductions) from provision for credit loss expense ⁽¹⁾		(19	)		1		(18	)
Additions from purchases of PCD mortgage loans on real estate		-			-		-
Balance as of end-of-period ⁽²⁾	$	59		$	18	$	77

⁽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 March 31, 2023. We did not recognize any credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the three months ended March 31, 2022.

⁽²⁾Accrued investment income on mortgage loans on real estate totaled $52 million and $49 million as of March 31, 2023 and 2022, respectively, and was excluded from the estimate of credit losses.

Credit Loss Expense Incurred



	For the Three
	Months Ended
	March 31,
	2023			2022
Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(17	)	$	1
RMBS		1			(1	)
ABS		-			(1	)
Total credit loss benefit (expense)	$	(16	)	$	(1	)

‎

Payables For Collateral On Investments



	As of March 31, 2023				As of December 31, 2022
	Carrying		Fair		Carrying		Fair
	Value		Value		Value		Value
Collateral payable for derivative investments ⁽¹⁾	$	3,533	$	3,533	$	3,210	$	3,210
Securities pledged under securities lending agreements ⁽²⁾		296		288		298		287
Investments pledged for FHLBI ⁽³⁾		2,955		3,649		3,130		3,925
Total payables for collateral on investments	$	6,784	$	7,470	$	6,638	$	7,422

⁽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 6 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 Federal Home Loan Bank (“FHLB”) of Indianapolis (“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



	For the Three
	Months Ended
	March 31,
	2023			2022
Collateral payable for derivative investments	$	323		$	(798	)
Securities pledged under securities lending agreements		(2	)		17
Investments pledged for FHLBI		(175	)		750
Total increase (decrease) in payables for collateral on investments	$	146		$	(31	)

Schedule Of Securities Pledged By Contractual Maturity


	As of March 31, 2023
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	279	$	-	$	-	$	-	$	279
Foreign government bonds		8		-		-		-		8
Equity securities		9		-		-		-		9
Total gross secured borrowings	$	296	$	-	$	-	$	-	$	296



	As of December 31, 2022
	Overnight and Continuous		Up to 30 Days		30 - 90 Days		Greater Than 90 Days		Total
Securities Lending
Corporate bonds	$	288	$	-	$	-	$	-	$	288
Foreign government bonds		2		-		-		-		2
Equity securities		8		-		-		-		8
Total gross secured borrowings	$	298	$	-	$	-	$	-	$	298

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 March 31, 2023
			Debt-			Debt-			Debt-
			Service			Service			Service
	Less		Coverage	65%		Coverage	Greater		Coverage
	than 65%		Ratio	to 75%		Ratio	than 75%		Ratio	Total
Origination Year
2023	$	155	1.61	$	-	-	$	-	-	$	155
2022		1,769	2.06		97	2.02		1	1.13		1,867
2021		2,330	3.05		70	1.51		-	-		2,400
2020		1,275	2.85		14	1.54		-	-		1,289
2019		2,630	2.21		93	1.50		18	1.43		2,741
2018 and prior		8,177	2.40		217	1.54		83	1.33		8,477
Total	$	16,336		$	491		$	102		$	16,929


	As of December 31, 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	$	1,769	2.06	$	105	1.50	$	2	1.45	$	1,876
2021		2,335	3.05		72	1.53		-	-		2,407
2020		1,280	2.99		17	1.58		-	-		1,297
2019		2,643	2.17		81	1.50		29	1.58		2,753
2018		2,222	2.17		67	1.62		-	-		2,289
2017 and prior		6,170	2.44		131	1.75		-	-		6,301
Total	$	16,419		$	473		$	31		$	16,923

Residential [Member]

Financing Receivable, Credit Quality Indicator [Line Items]

Mortgage Loans By Year Of Origination



	As of March 31, 2023
	Performing		Nonperforming			Total
Origination Year
2023	$	13		$	-	$	13
2022		613			7		620
2021		513			6		519
2020		89			2		91
2019		116			14		130
2018 and prior		60			3		63
Total	$	1,404		$	32	$	1,436


	As of December 31, 2022
	Performing		Nonperforming			Total
Origination Year
2022	$	578		$	5	$	583
2021		527			6		533
2020		90			3		93
2019		119			18		137
2018		65			2		67
2017 and prior		-			-		-
Total	$	1,379		$	34	$	1,413