XML 57 R44.htm IDEA: XBRL DOCUMENT

Investments (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Available-for-Sale Securities Reconciliation

The amortized cost, gross unrealized gains and losses, allowance for credit losses and fair value of fixed maturity AFS securities (in millions) were as follows:


	As of December 31, 2023
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
Fixed maturity AFS securities:
Corporate bonds	$	68,811	$	820	$	5,757	$	8	$	63,866
U.S. government bonds	414		7		28		–		393
State and municipal bonds	2,675		97		230		–		2,542
Foreign government bonds	309		15		46		–		278
RMBS	1,719		27		138		6		1,602
CMBS	1,520		5		181		–		1,344
ABS	12,556		62		571		4		12,043
Hybrid and redeemable preferred securities	227		21		15		1		232
Total fixed maturity AFS securities	$	88,231	$	1,054	$	6,966	$	19	$	82,300


	As of December 31, 2022
	Amortized Cost		Gross Unrealized				Allowance for Credit Losses		Fair Value
			Gains		Losses
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

Investments Classified by Contractual Maturity Date

The amortized cost and fair value of fixed maturity AFS securities by contractual maturities (in millions) as of December 31, 2023, were as follows:


	Amortized Cost		Fair Value
Due in one year or less	$	4,389	$	4,354
Due after one year through five years	17,444		16,858
Due after five years through ten years	15,405		14,403
Due after ten years	35,198		31,696
Subtotal	72,436		67,311
Structured securities (RMBS, CMBS, ABS)	15,795		14,989
Total fixed maturity AFS securities	$	88,231	$	82,300

Fair Value and Gross Unrealized Losses in a Continuous Unrealized Loss Position

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, 2023
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	13,439	$	1,744	$	33,285	$	4,013	$	46,724	$	5,757
U.S. government bonds	65		6		194		22		259		28
State and municipal bonds	371		72		814		158		1,185		230
Foreign government bonds	108		31		57		15		165		46
RMBS	355		20		840		118		1,195		138
CMBS	583		56		586		125		1,169		181
ABS	1,898		68		7,212		503		9,110		571

Hybrid and redeemable preferred securities	32		2		94		13		126		15
Total fixed maturity AFS securities	$	16,851	$	1,999	$	43,082	$	4,967	$	59,933	$	6,966

Total number of fixed maturity AFS securities in an unrealized loss position											7,167


	As of December 31, 2022
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized 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 December 31, 2023 and 2022, we recognized $7 million and $6 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, 2023

	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	2,480	$	916	529
Six months or greater, but less than nine months	321		90		79
Nine months or greater, but less than twelve months	321		106		87
Twelve months or greater	3,485		1,336		704
Total	$	6,607	$	2,448	1,399


	As of December 31, 2022
	Fair Value		Gross Unrealized Losses		Number of 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.

Schedule of Available-for-Sale Securities Whose Value is Below Amortized Cost


	As of December 31, 2023
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses (1)
Fixed maturity AFS securities:
Corporate bonds	$	13,439	$	1,744	$	33,285	$	4,013	$	46,724	$	5,757
U.S. government bonds	65		6		194		22		259		28
State and municipal bonds	371		72		814		158		1,185		230
Foreign government bonds	108		31		57		15		165		46
RMBS	355		20		840		118		1,195		138
CMBS	583		56		586		125		1,169		181
ABS	1,898		68		7,212		503		9,110		571

Hybrid and redeemable preferred securities	32		2		94		13		126		15
Total fixed maturity AFS securities	$	16,851	$	1,999	$	43,082	$	4,967	$	59,933	$	6,966

Total number of fixed maturity AFS securities in an unrealized loss position											7,167


	As of December 31, 2022
	Less Than or Equal to Twelve Months				Greater Than Twelve Months				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized 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


	As of December 31, 2023

	Fair Value		Gross Unrealized Losses		Number of Securities (1)
Less than six months	$	2,480	$	916	529
Six months or greater, but less than nine months	321		90		79
Nine months or greater, but less than twelve months	321		106		87
Twelve months or greater	3,485		1,336		704
Total	$	6,607	$	2,448	1,399


	As of December 31, 2022
	Fair Value		Gross Unrealized Losses		Number of 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.

Debt Securities, Available-for-Sale

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, 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	24		1		–		25
Additions (reductions) for securities for which credit losses
were previously recognized	(2)		(2)		–		(4)
Reductions for securities disposed	(2)		–		–		(2)
Reductions for securities charged-off	(21)		–		–		(21)
Balance as of end-of-year (2)	$	8	$	6	$	5	$	19


	For the Year Ended December 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	4		3		–		7
Additions (reductions) for securities for which credit losses
were previously recognized	2		3		4		9
Reductions for securities disposed	(2)		–		–		(2)
Reductions for securities charged-off	(12)		–		–		(12)
Balance as of end-of-year (2)	$	9	$	7	$	5	$	21


	For the Year Ended December 31, 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		–		1		9
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

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

(2) As of December 31, 2023, 2022 and 2021, accrued investment income on fixed maturity AFS securities totaled $814 million, $1.1 billion and $944 million, respectively, and was excluded from the estimate of credit losses.

Fair Value of Trading Securities

Trading securities at fair value (in millions) consisted of the following:


	As of December 31,
	2023		2022
Fixed maturity securities:
Corporate bonds	$	1,615	$	2,196

State and municipal bonds	21		21
Foreign government bonds	46		49
RMBS	62		99
CMBS	104		137
ABS	455		919
Hybrid and redeemable preferred securities	18		25
Total trading securities	$	2,321	$	3,446

Composition of Current and Past Due 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, 2023						As of December 31, 2022
	Commercial		Residential		Total		Commercial		Residential		Total
Current	$	17,165	$	1,665	$	18,830	$	16,913	$	1,315	$	18,228
30 to 59 days past due	61		28		89		19		23		42
60 to 89 days past due	–		9		9		–		6		6
90 or more days past due	–		60		60		–		33		33
Allowance for credit losses	(86)		(28)		(114)		(83)		(15)		(98)
Unamortized premium (discount)	(7)		43		36		(9)		36		27
Mark-to-market gains (losses) (1)	(36)		(1)		(37)		(27)		–		(27)
Total carrying value	$	17,097	$	1,776	$	18,873	$	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 15 for additional information.

Schedule of Average Carrying Value of Impaired Mortgage Loans on Real Estate

Additional information related to impaired mortgage loans on real estate (in millions) was as follows:


	For the Years Ended December 31,
	2023		2022		2021
Average aggregate carrying value for impaired mortgage loans on real estate	$	30	$	16	$	32
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

The amortized cost of mortgage loans on real estate on nonaccrual status (in millions) was as follows:


	As of December 31, 2023				As of December 31, 2022
	Nonaccrual with no Allowance for Credit Losses		Nonaccrual		Nonaccrual with no Allowance for Credit Losses		Nonaccrual
Commercial mortgage loans on real estate	$	–	$	–	$	–	$	–
Residential mortgage loans on real estate	–		62		–		34
Total	$	–	$	62	$	–	$	34

Financing Receivable Credit Quality Indicators

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, 2023
	Less than 65%		Debt-Service Coverage Ratio	65% to 75%		Debt-Service Coverage Ratio	Greater than 75%		Debt-Service Coverage Ratio	Total
Origination Year
2023	$	1,366	1.90	$	54	1.38	$	–	–	$	1,420
2022	1,709		2.07	140		1.54	–		–	1,849
2021	2,317		3.34	61		1.55	–		–	2,378
2020	1,205		3.23	11		1.38	–		–	1,216
2019	2,404		2.39	80		1.56	10		2.33	2,494
2018 and prior	7,770		2.39	78		1.60	14		0.87	7,862
Total	$	16,771		$	424		$	24		$	17,219


	As of December 31, 2022
	Less than 65%		Debt-Service Coverage Ratio	65% to 75%		Debt-Service Coverage Ratio	Greater than 75%		Debt-Service Coverage 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

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, 2023
	Performing		Nonperforming		Total
Origination Year
2023	$	515	$	2	$	517
2022	533		22		555
2021	465		18		483
2020	78		3		81
2019	99		13		112
2018 and prior	53		4		57
Total	$	1,743	$	62	$	1,805



	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

Changes in Allowance for Credit Losses on 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, 2023
	Commercial		Residential		Total
Balance as of beginning-of-year	$	83	$	15	$	98
Additions (reductions) from provision for credit loss expense (1)	3		13		16
Additions from purchases of PCD mortgage loans on real estate	–		–		–
Balance as of end-of-year (2)	$	86	$	28	$	114


	For the Year Ended December 31, 2022
	Commercial		Residential		Total
Balance as of beginning-of-year	$	78	$	17	$	95
Additions (reductions) from provision for credit loss expense (1)	5		(2)		3
Additions from purchases of PCD mortgage loans on real estate	–		–		–
Balance as of end-of-year (2)	$	83	$	15	$	98


	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

(1) We recognized $(1) million of credit loss benefit (expense) related to unfunded commitments for mortgage loans on real estate for the year ended December 31, 2023. We did not recognize any credit loss benefit (expense) related to unfunded commitments for

mortgage loans on real estate for the year ended December 31, 2022. 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 investment income on mortgage loans on real estate totaled $67 million, $51 million and $48 million as of December 31, 2023, 2022 and 2021, respectively, and was excluded from the estimate of credit losses.

Net Investment Income

The major categories of net investment income (in millions) on the Consolidated Statements of Comprehensive Income (Loss) were as follows:


	For the Years Ended December 31,
	2023		2022		2021
Fixed maturity AFS securities	$	4,961	$	4,408	$	4,242
Trading securities	158		179		165
Equity securities	13		11		3
Mortgage loans on real estate	752		687		677
Policy loans	102		100		115
Cash and invested cash	118		12		–
Commercial mortgage loan prepayment
and bond make-whole premiums	10		100		195
Alternative investments	244		96		677
Consent fees	3		8		10
Other investments	(38)		75		60
Investment income	6,323		5,676		6,144
Investment expense	(611)		(402)		(305)
Net investment income	$	5,712	$	5,274	$	5,839

Credit Loss Expense Incurred

Details underlying intent to sell impairments and credit loss benefit (expense) incurred 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,
	2023		2022		2021
Intent to Sell Impairments (1)
Fixed maturity AFS securities:
Corporate bonds	$	(3,805)	$	–	$	–
State and municipal bonds	(214)		–		–
RMBS	(74)		–		–
CMBS	(60)		–		–
ABS	(57)		–		–
Hybrid and redeemable preferred securities	(3)		–		–
Total intent to sell impairments	$	(4,213)	$	–	$	–

Credit Loss Benefit (Expense)
Fixed maturity AFS securities:
Corporate bonds	$	(23)	$	(4)	$	(10)
RMBS	1		(6)		–
ABS	1		(4)		–
Hybrid and redeemable preferred securities	–		–		(1)
Total credit loss benefit (expense)	$	(21)	$	(14)	$	(11)

(1) Represents impairments of certain fixed maturity AFS securities in an unrealized loss position, resulting from the Company’s intent to sell these securities as part of the Fortitude Re reinsurance transaction. Pursuant to the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreements in the second quarter of 2023 and recognized additional impairment on certain of these securities during the third quarter of 2023 due to higher interest rates. Interest rates declined during the fourth quarter of 2023, which resulted in recognition of a $295 million pre-tax net gain upon close of the transaction, included in gross gains and gross losses on fixed maturity AFS securities in Note 21. See Note 8 for additional information.

Payables for Collateral on Investments

The carrying value of the payables for collateral on investments included on the Consolidated Balance Sheets and the fair value of the related investments or collateral (in millions) consisted of the following:


	As of December 31, 2023				As of December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
Collateral payable for derivative investments (1)	$	5,127	$	5,127	$	3,210	$	3,210
Securities pledged under securities lending agreements (2)	205		197		298		287
Investments pledged for FHLBI (3)	2,650		3,603		3,130		3,925
Total payables for collateral on investments	$	7,982	$	8,927	$	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 or fixed maturity AFS securities. 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 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

Increase (decrease) in payables for collateral on investments (in millions) consisted of the following:


	For the Years Ended December 31,
	2023		2022		2021
Collateral payable for derivative investments	$	1,917	$	(2,355)	$	2,595
Securities pledged under securities lending agreements	(93)		57		126
Investments pledged for FHLBI	(480)		–		–
Total increase (decrease) in payables for collateral on investments	$	1,344	$	(2,298)	$	2,721

Schedule of Securities Pledged by Contractual Maturity

The remaining contractual maturities of securities lending transactions accounted for as secured borrowings (in millions) were as follows:


	As of December 31, 2023
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities Lending
Corporate bonds	$	202	$	–	$	–	$	–	$	202

Equity securities	3		–		–		–		3
Total gross secured borrowings	$	205	$	–	$	–	$	–	$	205


	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