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INVESTMENTS
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fixed Maturities Available-for-Sale
Accounting for credit impairments of fixed maturities classified as AFS has changed from a direct write-down, or other-than-temporary impairment (“OTTI”) approach to an allowance for credit loss model starting in 2020 upon adoption of CECL (see Note 2, Significant Accounting Policies – Investments).
The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within Other assets. Accrued interest receivable on AFS fixed maturities at June 30, 2020 was $480 million.
When the Company determines that there is more than 50% likelihood that it is not going to recover the principal and interest cash flows related to an AFS debt security, the security is placed on nonaccrual status and the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in a timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.
There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2020.
Comparative tables as of December 31, 2019 include OTTI, reported net of tax in OCI and in AOCI until realized.
The following tables provide information relating to the Company’s fixed maturities classified as AFS.
AFS Fixed Maturities by Classification
Amortized
Cost
Allowance for Credit Losses (4)
Gross
Unrealized
Gains		Gross
Unrealized
Losses
Fair Value
(in millions)
June 30, 2020:
Fixed Maturities:
Corporate (1)$45,706  $13  $4,091  $154  $49,630  
U.S. Treasury, government and agency13,103  —  4,090  —  17,193  
States and political subdivisions607  —  105  —  712  
Foreign governments770  —  69  6  833  
Residential mortgage-backed (2)144  —  14  —  158  
Asset-backed (3)2,057  —  23  41  2,039  
Commercial mortgage-backed855  —  24  —  879  
Redeemable preferred stock373  —  15  10  378  
Total at June 30, 2020$63,615  $13  $8,431  $211  $71,822  
December 31, 2019:
Fixed Maturities:
Corporate (1)$42,347  $—  $2,178  $61  $44,464  
U.S. Treasury, government and agency14,385  —  1,151  305  15,231  
States and political subdivisions584  —  68  3  649  
Foreign governments460  —  35  5  490  
Residential mortgage-backed (2)161  —  12  —  173  
Asset-backed (3)843  —  3  2  844  
Redeemable preferred stock498  —  18  5  511  
Total at December 31, 2019$59,278  $—  $3,465  $381  $62,362  
______________
(1)Corporate fixed maturities include both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.
(4)Amounts represent the allowance for credit losses for 2020 - (see Note 2 Significant Accounting Policies - Investments).
The contractual maturities of AFS fixed maturities at June 30, 2020 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Contractual Maturities of AFS Fixed Maturities
Amortized Cost (Less Allowance for Credit Losses)
Fair Value
 (in millions)
June 30, 2020 (1):
Contractual maturities:
Due in one year or less$4,393  $4,433  
Due in years two through five14,167  14,944  
Due in years six through ten16,475  18,256  
Due after ten years25,138  30,735  
Subtotal60,173  68,368  
Residential mortgage-backed144  158  
Asset-backed2,057  2,039  
Commercial mortgage-backed855  879  
Redeemable preferred stock373  378  
Total at June 30, 2020$63,602  $71,822  
______________
(1)Net amortized cost is equal to amortized cost, less any allowance for credit losses to the extent applicable.
The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the three and six months ended June 30, 2020 and 2019:
Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
 (in millions)
Proceeds from sales$2,864  $1,556  $4,586  $2,917  
Gross gains on sales$205  $9  $274  $17  
Gross losses on sales$(24) $(6) $(27) $(21) 
Credit losses (1)$(11) $—  $(13) $—  
______________
(1)Commencing with the Company’s adoption of ASU 2016-13 on January 1, 2020, credit losses on AFS debt securities were recognized as an allowance for credit losses. In 2019 and prior, credit losses on AFS fixed maturities were recognized as OTTI.
The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.
AFS Fixed Maturities - Credit Loss Impairments
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(in millions)
Balance, beginning of period$(17) $(18) $(15) $(46) 
Previously recognized impairments on securities that matured, paid, prepaid or sold—  —  —  28  
Recognized impairments on securities impaired to fair value this period (1)—  —  —  —  
Credit losses recognized this period on securities for which credit losses were not previously recognized(8) —  (10) —  
Additional credit losses this period on securities previously impaired(3) —  (3) —  
Increases due to passage of time on previously recorded credit losses—  —  —  —  
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)—  —  —  —  
Balance at June 30,$(28) $(18) $(28) $(18) 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
Net unrealized investment gains (losses) on AFS fixed maturities are included in the consolidated balance sheets as a component of AOCI.
Changes in net unrealized investment gains (losses) recognized in AOCI include reclassification adjustments to reflect amounts realized in Net income (loss) for the current period that had been part of OCI in earlier periods. The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI, split between amounts related to fixed maturities on which a credit loss has been recognized, and all other.
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Net Unrealized Gains (Losses) on InvestmentsDAC  Policyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment  Gains (Losses) 
(in millions)
Balance, April 1, 2020$5,040  $(205) $(1,003) $(805) $3,027  
Net investment gains (losses) arising during the period3,336  —  —  —  3,336  
Reclassification adjustment:—  
Included in Net income (loss)(167) —  —  —  (167) 
Excluded from Net income (loss)—  —  —  —  —  
Impact of net unrealized investment gains (losses) on:

DAC—  (289) —  —  (289) 
Deferred income taxes—  —  —  (437) (437) 
Policyholders’ liabilities—  —  (799) —  (799) 
Net unrealized investment gains (losses) excluding credit losses8,209  (494) (1,802) (1,242) 4,671  
Net unrealized investment gains (losses) with credit losses(2) —  1  —  (1) 
Balance, June 30, 2020$8,207  $(494) $(1,801) $(1,242) $4,670  
Balance, April 1, 2019$1,003  $(616) $22  $(86) $323  
Net investment gains (losses) arising during the period1,623  —  —  —  1,623  
Reclassification adjustment:—  
Included in Net income (loss)(4) —  —  —  (4) 
Excluded from Net income (loss)—  —  —  —  —  
Impact of net unrealized investment gains (losses) on:
DAC—  82  —  —  82  
Deferred income taxes—  —  —  (334) (334) 
Policyholders’ liabilities—  —  (108) —  (108) 
Net unrealized investment gains (losses) excluding credit losses2,622  (534) (86) (420) 1,582  
Net unrealized investment gains (losses) with credit losses (1)2  —  —  —  2  
Balance, June 30, 2019$2,624  $(534) $(86) $(420) $1,584  
Net Unrealized Gains (Losses) on Investments
DAC  
Policyholders’ Liabilities
Deferred Income Tax Asset (Liability)
AOCI Gain (Loss) Related to Net Unrealized Investment  Gains (Losses) 
(in millions)
Balance, January 1, 2020$3,084  $(831) $(192) $(433) $1,628  
Net investment gains (losses) arising during the period5,362  —  —  —  5,362  
Reclassification adjustment:—  
Included in Net income (loss)(230) —  —  —  (230) 
Excluded from Net income (loss)—  —  —  —  —  
Impact of net unrealized investment gains (losses) on:

DAC—  336  —  —  336  
Net Unrealized Gains (Losses) on Investments
DAC  
Policyholders’ Liabilities
Deferred Income Tax Asset (Liability)
AOCI Gain (Loss) Related to Net Unrealized Investment  Gains (Losses) 
(in millions)
Deferred income taxes—  —  —  (810) (810) 
Policyholders’ liabilities—  —  (1,611) —  (1,611) 
Net unrealized investment gains (losses) excluding credit losses8,216  (495) (1,803) (1,243) 4,675  
Net unrealized investment gains (losses) with credit losses(9) 1  2  1  (5) 
Balance, June 30, 2020$8,207  $(494) $(1,801) $(1,242) $4,670  
Balance, January 1, 2019$(577) $39  $(55) $125  $(468) 
Net investment gains (losses) arising during the period3,206  —  —  —  3,206  
Reclassification adjustment:
Included in Net income (loss)(7) —  —  —  (7) 
Excluded from Net income (loss)—  —  —  —  —  
Impact of net unrealized investment gains (losses) on:
DAC—  (573) —  —  (573) 
Deferred income taxes—  —  —  (545) (545) 
Policyholders’ liabilities—  —  (31) —  (31) 
Net unrealized investment gains (losses) excluding credit losses2,622  (534) (86) (420) 1,582  
Net unrealized investment gains (losses) with credit losses (1)2  —  —  —  2  
Balance, June 30, 2019$2,624  $(534) $(86) $(420) $1,584  
______________
(1)Credit losses for 2019 were OTTI losses.
The following tables disclose the fair values and gross unrealized losses of the 639 issues at June 30, 2020 and the 390 issues at December 31, 2019 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated:
AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded
 
Less Than 12 Months
12 Months or Longer
Total
 
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
(in millions)
June 30, 2020:
Fixed Maturities:
Corporate$2,511  $96  $273  $51  $2,784  $147  
Foreign governments47  6  —  —  47  6  
Asset-backed1,349  37  73  4  1,422  41  
Redeemable preferred stock121  8  11  2  132  10  
Total at June 30, 2020$4,028  $147  $357  $57  $4,385  $204  
December 31, 2019: (1)
Fixed Maturities:
Corporate$2,669  $41  $366  $20  $3,035  $61  
 
Less Than 12 Months
12 Months or Longer
Total
 
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
Fair Value
Gross Unrealized Losses
(in millions)
U.S. Treasury, government and agency4,245  305  2  —  4,247  305  
States and political subdivisions123  3  —  —  123  3  
Foreign governments11  —  47  5  58  5  
Asset-backed319  —  201  2  520  2  
Redeemable preferred stock29  —  49  5  78  5  
Total at December 31, 2019$7,396  $349  $665  $32  $8,061  $381  
______________
(1)Amounts represents fixed maturities in an unrealized loss position that are not deemed to be other-than-temporarily impaired for 2019.
The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.6% of total corporate securities. The largest exposures to a single issuer of corporate securities held at June 30, 2020 and December 31, 2019 were $318 million and $279 million, respectively, representing 2.1% and 2.4% of the consolidated equity of the Company.
Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the National Association of Insurance Commissioners (“NAIC”) designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). At June 30, 2020 and December 31, 2019, respectively, approximately $1.9 billion and $1.4 billion, or 3.0% and 2.3%, of the $63.6 billion and $59.3 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $112 million and $21 million at June 30, 2020 and December 31, 2019, respectively.
At June 30, 2020 and December 31, 2019, respectively, the $57 million and $32 million of gross unrealized losses of twelve months or more were concentrated in corporate securities, as applicable. In accordance with the policy described in Note 2, the Company concluded that an adjustment to income for OTTI (prior to January 1, 2020) nor an allowance for credit losses (after January 1, 2020) for these securities was not warranted at either June 30, 2020 or December 31, 2019. At June 30, 2020 and December 31, 2019, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.
Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of June 30, 2020, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings due to the impact of the COVID-19 pandemic on financial markets and assessments of fundamental risks.
Mortgage Loans
The Company utilizes a PD/LGD model, configured in accordance with the Company’s policies that meet the concepts in the CECL framework, to estimate expected credit losses for mortgage loans as a product of PD, LGD and the exposure at default across various economic scenarios. The PD and LGD are estimated at the loan-level based on loans’ current and forecasted risk characteristics as well as macroeconomic forecasts. The PD is estimated using both macroeconomic conditions as well as individual loan risk characteristics including LTV ratios, DSC ratios, seasoning, collateral type, geography, and underlying credit. The LGD is driven primarily by the type and value of collateral, and secondarily by expected liquidation costs and time to recovery.
The model also incorporates the Company’s reasonable and supportable forecasts of the macroeconomic variables deemed to be correlated to the credit risk of its loans. The length of the reasonable and supportable forecast period is reassessed on a quarterly basis and may be adjusted as appropriate over time to be consistent with macroeconomic conditions and the environment as of the reporting date. Reversion to historical loss information is performed for periods beyond the reasonable and supportable forecast period.
The components of amortized cost for mortgage loans on the consolidated balance sheets excludes accrued interest amounts because the Company presents accrued interest receivables within Other assets. Accrued interest receivable on commercial and agricultural mortgage loans at June 30, 2020 was $28 million and $29 million, respectively. Accrued interest of $1 million was written off for the three and six months ended June 30, 2020 for commercial mortgage loans. There was no accrued interest written off for agricultural mortgage loans for the three and six months ended June 30, 2020.
Once mortgage loans are placed on nonaccrual status, the Company reverses accrued interest receivable against interest income. Since the nonaccrual policy results in the timely reversal of accrued interest receivable, the Company does not record an allowance for credit losses on accrued interest receivable.
At June 30, 2020, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.
Allowance for Credit Losses on Mortgage Loans
The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three and six months ended June 30, 2020 was as follows:
Three Months Ended June 30, 2020Six Months Ended June 30, 2020
(in millions)
Allowance for credit losses on mortgage loans (1):
Commercial mortgages:
Balance, beginning of period$(43) $(33) 
Current-period provision for expected credit losses(19) (29) 
Write-offs charged against the allowance—  —  
Recoveries of amounts previously written off—  —  
Net change in allowance(19) (29) 
Ending Balance, June 30,$(62) $(62) 
Agricultural mortgages:
Balance, beginning of period$(3) $(3) 
Current-period provision for expected credit losses(1) (1) 
Write-offs charged against the allowance—  —  
Recoveries of amounts previously written off—  —  
Net change in allowance(1) (1) 
Ending Balance, June 30,$(4) $(4) 
Total allowance for credit losses$(66) $(66) 
____________
(1) See Note 2 for discussion of the transition balance.
The change in the allowance for credit losses is attributable to:
•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization;
•changes in credit quality; and
•changes in market assumptions primarily related to COVID-19 driven economic changes.
Credit Quality Information
The following tables summarize the Company’s mortgage loans segregated by risk rating exposure at June 30, 2020.
LTV Ratios (1)(3)
At June 30, 2020
Amortized Cost Basis by Origination Year
20202019201820172016
Prior
Total
(in millions)
Mortgage loans:
Commercial:
0% - 50%$—  $—  $29  $324  $196  $748  $1,297  
50% - 70%656  613  915  759  2,501  1,714  7,158  
70% - 90%90  184  304  113  58  464  1,213  
90% plus—  —  —  5  —  156  161  
Total commercial$746  $797  $1,248  $1,201  $2,755  $3,082  $9,829  
Agricultural:
0% - 50%$106  $139  $159  $167  $254  $733  $1,558  
50% - 70%204  139  186  112  129  394  1,164  
70% - 90%—  —  3  —  —  18  21  
90% plus—  —  —  —  —  —  —  
Total agricultural$310  $278  $348  $279  $383  $1,145  $2,743  
Total mortgage loans:
0% - 50%$106  $139  $188  $491  $450  $1,481  $2,855  
50% - 70%860  752  1,101  871  2,630  2,108  8,322  
70% - 90%90  184  307  113  58  482  1,234  
90% plus—  —  —  5  —  156  161  
Total mortgage loans$1,056  $1,075  $1,596  $1,480  $3,138  $4,227  $12,572  

Debt Service Coverage Ratios (2)(3)
At June 30, 2020
Amortized Cost Basis by Origination Year
20202019201820172016
Prior
Total
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$621  $373  $800  $377  $2,134  $1,315  $5,620  
1.8x to 2.0x90  187  123  409  70  484  1,363  
1.5x to 1.8x35  183  230  302  551  610  1,911  
1.2x to 1.5x—  12  12  76  —  673  773  
1.0x to 1.2x—  42  83  37  —  —  162  
Less than 1.0x—  —  —  —  —  —  —  
Total commercial$746  $797  $1,248  $1,201  $2,755  $3,082  $9,829  
Agricultural
Greater than 2.0x$43  $28  $39  $37  $76  $162  $385  
1.8x to 2.0x11  36  15  17  21  91  191  
1.5x to 1.8x75  39  46  43  52  232  487  
1.2x to 1.5x110  126  148  110  158  349  1,001  
1.0x to 1.2x67  39  92  71  58  275  602  
Less than 1.0x4  10  8  1  18  36  77  
Total agricultural$310  $278  $348  $279  $383  $1,145  $2,743  
At June 30, 2020
Amortized Cost Basis by Origination Year
20202019201820172016
Prior
Total
(in millions)
Total mortgage loans
Greater than 2.0x$664  $401  $839  $414  $2,210  $1,477  $6,005  
1.8x to 2.0x101  223  138  426  91  575  1,554  
1.5x to 1.8x110  222  276  345  603  842  2,398  
1.2x to 1.5x110  138  160  186  158  1,022  1,774  
1.0x to 1.2x67  81  175  108  58  275  764  
Less than 1.0x4  10  8  1  18  36  77  
Total mortgage loans$1,056  $1,075  $1,596  $1,480  $3,138  $4,227  $12,572  
_____________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
(3)Amounts presented at amortized cost basis.
The following tables provide information relating to the LTV and DSC ratios for commercial and agricultural mortgage loans at June 30, 2020 and December 31, 2019. The values used in these ratio calculations were developed as part of the periodic review of the commercial and agricultural mortgage loan portfolio, which includes an evaluation of the underlying collateral value.
Mortgage Loans by LTV and DSC Ratios
 
DSC Ratio (2) (3)
LTV Ratio (1) (3):
Greater than 2.0x
1.8x to 2.0x
1.5x to 1.8x
1.2x to 1.5x
1.0x to 1.2x
Less than 1.0x
Total
 
(in millions)
June 30, 2020:
Mortgage loans:
Commercial:
0% - 50%$1,016  $20  $237  $24  $—  $—  $1,297  
50% - 70%4,208  1,080  1,353  485  32  —  7,158  
70% - 90%312  263  321  187  130  —  1,213  
90% plus84  —  —  77  —  —  161  
Total commercial$5,620  $1,363  $1,911  $773  $162  $—  $9,829  
Agricultural:
0% - 50%$292  $106  $255  $520  $333  $52  $1,558  
50% - 70%93  83  232  462  269  25  1,164  
70% - 90%—  2  —  19  —  —  21  
90% plus—  —  —  —  —  —  —  
Total agricultural$385  $191  $487  $1,001  $602  $77  $2,743  
Total mortgage loans:
0% - 50%$1,308  $126  $492  $544  $333  $52  $2,855  
50% - 70%4,301  1,163  1,585  947  301  25  8,322  
70% - 90%312  265  321  206  130  —  1,234  
90% plus84  —  —  77  —  —  161  
Total mortgage loans$6,005  $1,554  $2,398  $1,774  $764  $77  $12,572  
 
DSC Ratio (2) (3)
LTV Ratio (1) (3):
Greater than 2.0x
1.8x to 2.0x
1.5x to 1.8x
1.2x to 1.5x
1.0x to 1.2x
Less than 1.0x
Total
 
(in millions)
December 31, 2019:
Mortgage loans:
Commercial:
0% - 50%$887  $38  $214  $24  $—  $—  $1,163  
50% - 70%4,097  1,195  1,118  795  242  —  7,447  
70% - 90%251  98  214  154  46  —  763  
90% plus—  —  —  —  —  —  —  
Total commercial$5,235  $1,331  $1,546  $973  $288  $—  $9,373  
Agricultural:
0% - 50%$322  $104  $241  $545  $321  $50  $1,583  
50% - 70%82  87  236  426  251  33  1,115  
70% - 90%—  —  —  19  —  —  19  
90% plus—  —  —  —  —  —  —  
Total agricultural$404  $191  $477  $990  $572  $83  $2,717  
Total mortgage loans:
0% - 50%$1,209  $142  $455  $569  $321  $50  $2,746  
50% - 70%4,179  1,282  1,354  1,221  493  33  8,562  
70% - 90%251  98  214  173  46  —  782  
90% plus—  —  —  —  —  —  —  
Total mortgage loans$5,639  $1,522  $2,023  $1,963  $860  $83  $12,090  
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
(3)Amounts presented at amortized cost basis.
Past-Due and Nonaccrual Mortgage Loan Status
The following table provides information relating to the aging analysis of past-due mortgage loans at June 30, 2020 and December 31, 2019, respectively:
Age Analysis of Past Due Mortgage Loans (1)
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans(2)
Past Due
Current
Total
30-59 Days
60-89
Days
90
Days
or  More
Total
(in millions)
June 30, 2020:
Mortgage loans:
Commercial$—  $—  $—  $—  $9,754  $9,754  $75  $9,829  $75  $1  
Agricultural67  9  49  125  2,618  2,743  —  2,743  —  —  
Total$67  $9  $49  $125  $12,372  $12,497  $75  $12,572  $75  $1  
December 31, 2019:
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans(2)
Past Due
Current
Total
30-59 Days
60-89
Days
90
Days
or  More
Total
(in millions)
Mortgage loans:
Commercial$—  $—  $—  $—  $9,373  $9,373  $—  $9,373  $—  $—  
Agricultural57  1  66  124  2,593  2,717  —  2,717  —  —  
Total$57  $1  $66  $124  $11,966  $12,090  $—  $12,090  $—  $—  
_______________
(1)Amounts presented at amortized cost basis.
(2) Amounts for 2020 represent results for both the three and six months ended June 30, 2020.
At June 30, 2020 and December 31, 2019, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $75 million and $0 million, respectively.
Troubled Debt Restructuring
The Company invests in commercial and agricultural mortgage loans included in the balance sheet as Mortgage loans on real estate and privately negotiated fixed maturities included in the balance sheet as Fixed maturities AFS. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific credit allowance recorded in connection with the troubled debt restructuring. A credit allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. At June 30, 2020, the Company did not have any commercial or agricultural mortgage loans accounted for as troubled debt restructurings. At June 30, 2020, the Company had four new privately negotiated fixed maturity troubled debt restructurings with a pre-modification cost basis of $42 million and post-modification carrying value of $37 million, these troubled debt restructurings did not have subsequent payment defaults nor additional commitments to lend. The four privately negotiated fixed maturity troubled debt restructurings are 0.04% of the Company’s total invested assets.
Trading Securities
At June 30, 2020 and December 31, 2019, respectively, the fair value of the Company’s trading securities was $6.1 billion and $6.6 billion. At June 30, 2020 and December 31, 2019, respectively, trading securities included the General Account’s investment in Separate Accounts, which had carrying values of $38 million and $58 million.
Net unrealized and realized gains (losses) on trading securities are included in Net investment income (loss) in the Consolidated Statements of Income (Loss). The table below shows a breakdown of Net investment income (loss) from trading securities during the three and six months ended June 30, 2020 and 2019:
Net Investment Income (Loss) from Trading Securities
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$250  $150  $87  $424  
Net investment gains (losses) recognized on securities sold during the period14  1  17  (23) 
Unrealized and realized gains (losses) on trading securities264  151  104  401  
Interest and dividend income from trading securities45  71  94  161  
Net investment income (loss) from trading securities$309  $222  $198  $562