XML 38 R25.htm IDEA: XBRL DOCUMENT v3.22.2.2
INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-Sale Fixed Maturities by Classification 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 LossesGross
Unrealized
Gains		Gross
Unrealized
Losses
Fair Value
(in millions)
September 30, 2022
Fixed Maturities:
Corporate (1)$47,882 $22 $69 $7,515 $40,414 
U.S. Treasury, government and agency7,238 — 4 1,311 5,931 
States and political subdivisions600 — 8 78 530 
Foreign governments1,114 — 2 190 926 
Residential mortgage-backed (2)494 — 1 25 470 
Asset-backed (3)9,235 — 1 540 8,696 
Commercial mortgage-backed3,743 — — 558 3,185 
Redeemable preferred stock
41 — 2 — 43 
Total at September 30, 2022$70,347 $22 $87 $10,217 $60,195 
December 31, 2021:
Fixed Maturities:
Corporate (1)$45,578 $22 $2,382 $214 $47,724 
U.S. Treasury, government and agency13,032 — 2,196 14 15,214 
States and political subdivisions527 — 73 3 597 
Foreign governments1,124 — 42 14 1,152 
Residential mortgage-backed (2)82 — 8 — 90 
Asset-backed (3)5,904 — 20 19 5,905 
Commercial mortgage-backed2,348 — 19 26 2,341 
Redeemable preferred stock41 — 12 — 53 
Total at December 31, 2021$68,636 $22 $4,752 $290 $73,076 
______________
(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, credit risk transfer securities and other asset types.
Schedule of Contractual Maturities of Available-for-Sale Fixed Maturities The contractual maturities of AFS fixed maturities as of September 30, 2022 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)
September 30, 2022:
Contractual maturities:
Due in one year or less$1,147 $1,130 
Due in years two through five13,178 12,415 
Due in years six through ten17,063 15,083 
Due after ten years25,424 19,173 
Subtotal56,812 47,801 
Residential mortgage-backed494 470 
Asset-backed9,235 8,696 
Commercial mortgage-backed3,743 3,185 
Redeemable preferred stock41 43 
Total at September 30, 2022$70,325 $60,195 
Schedule of Proceeds and Gains (Losses) on Sales for Available-for-Sale Fixed Maturities
The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities for the three and nine months ended September 30, 2022 and 2021:
Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
 (in millions)
Proceeds from sales$878 $3,575 $11,512 $20,294 
Gross gains on sales$— $172 $38 $1,017 
Gross losses on sales$(73)$(6)$(663)$(160)
Net change in Allowance for Credit and Intent to Sell losses$(248)$(2)$(251)$(14)
Schedule of AFS Fixed Maturities - Credit Loss Impairments
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 and Intent to Sell Loss Impairments
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Balance, beginning of period $32 $40 $42 $28 
Previously recognized impairments on securities that matured, paid, prepaid or sold(2)(2)(15)(3)
Recognized impairments on securities impaired to fair value this period (1) (2)251 — 251 — 
Credit losses recognized this period on securities for which credit losses were not previously recognized(1)1 — 9 
Additional credit losses this period on securities previously impaired5 1 7 6 
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 September 30,$285 $40 $285 $40 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
(2)Amounts reflected as of three and nine months ended September 30, 2022 represents AFS fixed maturities in an unrealized loss position, which the Company intends to sell in anticipation of the EQUI-VEST Transaction. For additional details on the EQUI-VEST Transaction, see Note 14 of the Notes to the Consolidated Financial Statements.
Schedule of Net Unrealized Gains (Losses) on Available-for-Sale Fixed Maturities
The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Net Unrealized Gains (Losses) on InvestmentsDACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) 
(in millions)
Balance, July 1, 2022$(6,647)$851 $(250)$1,270 $(4,776)
Net investment gains (losses) arising during the period(3,811)— — — (3,811)
Reclassification adjustment:
Included in net income (loss)327 — — — 327 
Excluded from net income (loss)— — — — — 
Other — — — — — 
Impact of net unrealized investment gains (losses)— 386 41 641 1,068 
Net unrealized investment gains (losses) excluding credit losses(10,131)1,237 (209)1,911 (7,192)
Net unrealized investment gains (losses) with credit losses1 — — — 1 
Balance, September 30, 2022$(10,130)$1,237 $(209)$1,911 $(7,191)
Balance, July 1, 2021$4,931 $(389)$(1,037)$(736)$2,769 
Net investment gains (losses) arising during the period(362)— — — (362)
Reclassification adjustment:— 
Included in net income (loss)(165)— — — (165)
Excluded from net income (loss)— — — — — 
Other (1)— — — — — 
Impact of net unrealized investment gains (losses)— 28 55 93 176 
Net unrealized investment gains (losses) excluding credit losses4,404 (361)(982)(643)2,418 
Net unrealized investment gains (losses) with credit losses(1)— — — (1)
Balance, September 30, 2021$4,403 $(361)$(982)$(643)$2,417 
Net Unrealized Gains (Losses) on InvestmentsDACPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) 
(in millions)
Balance, January 1, 2022$4,462 $(284)$(977)$(673)$2,528 
Net investment gains (losses) arising during the period(15,466)— — — (15,466)
Reclassification adjustment:— 
Included in net income (loss)881 — — — 881 
Excluded from net income (loss)— — — — — 
Other — — — — — 
Impact of net unrealized investment gains (losses)— 1,520 768 2,583 4,871 
Net unrealized investment gains (losses) excluding credit losses(10,123)1,236 (209)1,910 (7,186)
Net unrealized investment gains (losses) with credit losses(7)1 — 1 (5)
Balance, September 30, 2022$(10,130)$1,237 $(209)$1,911 $(7,191)
Balance, January 1, 2021$8,230 $(466)$(1,814)$(1,250)$4,700 
Net investment gains (losses) arising during the period(3,057)— — — (3,057)
Reclassification adjustment:— 
Included in net income (loss)(739)— — — (739)
Excluded from net income (loss)— — — — — 
Other (1)(31)— — — (31)
Impact of net unrealized investment gains (losses)— 105 832 607 1,544 
Net unrealized investment gains (losses) excluding credit losses4,403 (361)(982)(643)2,417 
Net unrealized investment gains (losses) with credit losses— — — — — 
Balance, September 30, 2021$4,403 $(361)$(982)$(643)$2,417 
(1) Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments.
Schedule of Continuous Gross Unrealized Losses for Available-for-Sale Fixed Maturities
The following tables disclose the fair values and gross unrealized losses of the 4,803 issues as of September 30, 2022 and the 1,896 issues as of December 31, 2021 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 Months12 Months or LongerTotal
 Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
September 30, 2022
Fixed Maturities:
Corporate$30,859 $6,100 $5,327 $1,413 $36,186 $7,513 
U.S. Treasury, government and agency5,438 1,292 201 19 5,639 1,311 
States and political subdivisions287 71 13 7 300 78 
 Less Than 12 Months12 Months or LongerTotal
 Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
Foreign governments605 138 167 52 772 190 
Residential mortgage-backed433 25 1 — 434 25 
Asset-backed8,023 498 439 42 8,462 540 
Commercial mortgage-backed2,374 367 809 191 3,183 558 
Total at September 30, 2022$48,019 $8,491 $6,957 $1,724 $54,976 $10,215 
December 31, 2021:
Fixed Maturities:
Corporate$9,497 $150 $1,301 $62 $10,798 $212 
U.S. Treasury, government and agency947 10 103 4 1,050 14 
States and political subdivisions112 2 11 1 123 3 
Foreign governments349 6 92 8 441 14 
Asset-backed3,843 19 38 — 3,881 19 
Commercial mortgage-backed1,515 22 96 4 1,611 26 
Total at December 31, 2021$16,263 $209 $1,641 $79 $17,904 $288 
Schedule of Financing Receivable, Allowance for Credit Loss on Mortgage Loans
The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three and nine months ended September 30, 2022 and 2021 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$58 $59 $57 $77 
Current-period provision for expected credit losses19 1 20 (17)
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — 
Net change in allowance19 1 20 (17)
Balance, end of period$77 $60 $77 $60 
Agricultural mortgages:
Balance, beginning of period$6 $4 $5 $4 
Current-period provision for expected credit losses— — 1 
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — 
Net change in allowance— — 1 — 
Balance, end of period$6 $4 $6 $4 
Total allowance for credit losses$83 $64 $83 $64 
Schedule of Financing Receivable Credit Quality Indicators The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of September 30, 2022 and December 31, 2021.
Loan to Value (“LTV”) Ratios (1)
September 30, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$488 $130 $— $— $119 $1,452 $— $— $2,189 
50% - 70%1,780 1,857 1,255 275 733 2,597 273 — 8,770 
70% - 90%136 124 115 368 315 898 — 33 1,989 
90% plus— — — — 35 174 — — 209 
Total commercial$2,404 $2,111 $1,370 $643 $1,202 $5,121 $273 $33 $13,157 
Agricultural:
0% - 50%$121 $190 $214 $123 $135 $754 $— $— $1,537 
50% - 70%182 179 238 86 82 277 — — 1,044 
70% - 90%1 — — — — 15 — — 16 
90% plus— — — — — — — — — 
Total agricultural$304 $369 $452 $209 $217 $1,046 $— $— $2,597 
Total mortgage loans:
0% - 50%$609 $320 $214 $123 $254 $2,206 $— $— $3,726 
50% - 70%1,962 2,036 1,493 361 815 2,874 273 — 9,814 
70% - 90%137 124 115 368 315 913 — 33 2,005 
90% plus— — — — 35 174 — — 209 
Total mortgage loans$2,708 $2,480 $1,822 $852 $1,419 $6,167 $273 $33 $15,754 

Debt Service Coverage (“DSC”) Ratios (2)

September 30, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$605 $1,143 $1,078 $103 $571 $1,846 $— $— $5,346 
1.8x to 2.0x135 187 165 216 186 421 161 — 1,471 
1.5x to 1.8x413 274 32 177 250 1,173 75 — 2,394 
1.2x to 1.5x614 259 60 92 47 1,376 — — 2,448 
1.0x to 1.2x222 248 35 55 148 234 37 33 1,012 
Less than 1.0x415 — — — — 71 — — 486 
Total commercial$2,404 $2,111 $1,370 $643 $1,202 $5,121 $273 $33 $13,157 
September 30, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Agricultural:
Greater than 2.0x$48 $40 $62 $22 $12 $195 $— $— $379 
1.8x to 2.0x17 58 35 24 14 63 — — 211 
1.5x to 1.8x48 42 112 28 19 202 — — 451 
1.2x to 1.5x89 154 174 99 100 313 — — 929 
1.0x to 1.2x86 74 65 30 66 260 — — 581 
Less than 1.0x16 1 4 6 6 13 — — 46 
Total agricultural$304 $369 $452 $209 $217 $1,046 $— $— $2,597 
Total mortgage loans:
Greater than 2.0x$653 $1,183 $1,140 $125 $583 $2,041 $— $— $5,725 
1.8x to 2.0x152 245 200 240 200 484 161 — 1,682 
1.5x to 1.8x461 316 144 205 269 1,375 75 — 2,845 
1.2x to 1.5x703 413 234 191 147 1,689 — — 3,377 
1.0x to 1.2x308 322 100 85 214 494 37 33 1,593 
Less than 1.0x431 1 4 6 6 84 — — 532 
Total mortgage loans$2,708 $2,480 $1,822 $852 $1,419 $6,167 $273 $33 $15,754 
_____________
(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.
LTV Ratios (1)

December 31, 2021
Amortized Cost Basis by Origination Year
20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$— $— $— $184 $293 $992 $— $— $1,469 
50% - 70%1,944 1,286 339 619 491 2,533 139 — 7,351 
70% - 90%190 236 412 415 276 972 — — 2,501 
90% plus— — — 35 5 73 — — 113 
Total commercial$2,134 $1,522 $751 $1,253 $1,065 $4,570 $139 $— $11,434 
Agricultural:
0% - 50%$180 $212 $128 $129 $119 $738 $— $— $1,506 
50% - 70%200 268 102 126 87 338 — — 1,121 
70% - 90%— — — — — 17 — — 17 
90% plus— — — — — — — — — 
Total agricultural$380 $480 $230 $255 $206 $1,093 $— $— $2,644 
Total mortgage loans:
0% - 50%$180 $212 $128 $313 $412 $1,730 $— $— $2,975 
50% - 70%2,144 1,554 441 745 578 2,871 139 — 8,472 
70% - 90%190 236 412 415 276 989 — — 2,518 
90% plus— — — 35 5 73 — — 113 
Total mortgage loans$2,514 $2,002 $981 $1,508 $1,271 $5,663 $139 $— $14,078 
DSC Ratios (2)
December 31, 2021
Amortized Cost Basis by Origination Year
20212020201920182017PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$1,143 $1,243 $210 $772 $485 $2,218 $— $— $6,071 
1.8x to 2.0x185 135 182 46 161 372 68 — 1,149 
1.5x to 1.8x275 49 284 211 166 919 48 — 1,952 
1.2x to 1.5x264 95 75 101 253 701 — — 1,489 
1.0x to 1.2x267 — — 88 — 287 23 — 665 
Less than 1.0x— — — 35 — 73 — — 108 
Total commercial$2,134 $1,522 $751 $1,253 $1,065 $4,570 $139 $— $11,434 
Agricultural:
Greater than 2.0x$49 $64 $25 $22 $24 $210 $— $— $394 
1.8x to 2.0x52 37 25 14 14 70 — — 212 
1.5x to 1.8x43 113 28 22 41 193 — — 440 
1.2x to 1.5x161 179 112 116 72 355 — — 995 
1.0x to 1.2x75 83 31 77 54 226 — — 546 
Less than 1.0x— 4 9 4 1 39 — — 57 
Total agricultural$380 $480 $230 $255 $206 $1,093 $— $— $2,644 
Total mortgage loans:
Greater than 2.0x$1,192 $1,307 $235 $794 $509 $2,428 $— $— $6,465 
1.8x to 2.0x237 172 207 60 175 442 68 — 1,361 
1.5x to 1.8x318 162 312 233 207 1,112 48 — 2,392 
1.2x to 1.5x425 274 187 217 325 1,056 — — 2,484 
1.0x to 1.2x342 83 31 165 54 513 23 — 1,211 
Less than 1.0x— 4 9 39 1 112 — — 165 
Total mortgage loans$2,514 $2,002 $981 $1,508 $1,271 $5,663 $139 $— $14,078 
_____________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
Schedule of Age Analysis Of Past Due Mortgage Loans The following table provides information relating to the aging analysis of past-due mortgage loans as of September 30, 2022 and December 31, 2021, respectively.
Age Analysis of Past Due Mortgage Loans (1)
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past Due
Current
Total
30-59 Days
60-89
Days
90
Days
or More
Total
(in millions)
September 30, 2022:
Mortgage loans:
Commercial$— $— $— $— $13,157 $13,157 $— $13,157 $— $— 
Agricultural12 7 19 38 2,543 2,581 16 2,597 — — 
Total$12 $7 $19 $38 $15,700 $15,738 $16 $15,754 $— $— 
December 31, 2021:
Mortgage loans:
Commercial$— $— $— $— $11,434 $11,434 $— $11,434 $— $— 
Agricultural1 1 25 27 2,601 2,628 16 2,644 — — 
Total$1 $1 $25 $27 $14,035 $14,062 $16 $14,078 $— $— 
_______________
(1)Amounts presented at amortized cost basis.
Schedule of Unrealized and Realized Gains (Losses) from Equity Securities and Net Investment Income (Loss) from Trading Securities
The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three and nine months ended September 30, 2022 and 2021.
Unrealized and Realized Gains (Losses) from Equity Securities

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(31)$(1)$(138)$19 
Net investment gains (losses) recognized on securities sold during the period(2)(3)(12)1 
Unrealized and realized gains (losses) on equity securities $(33)$(4)$(150)$20 
The table below shows a breakdown of net investment income (loss) from trading securities during the three and nine months ended September 30, 2022 and 2021:
Net Investment Income (Loss) from Trading Securities

Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(8)$(47)$(53)$(264)
Net investment gains (losses) recognized on securities sold during the period1 40 — 215 
Unrealized and realized gains (losses) on trading securities(7)(7)(53)(49)
Interest and dividend income from trading securities1 4 6 80 
Net investment income (loss) from trading securities$(6)$(3)$(47)$31