Investments (Tables)

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	December 31, 2021										December 31, 2020
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value		Amortized Cost		Allowance for Credit Losses		Gross Unrealized				Estimated Fair Value
					Gains		Losses								Gains		Losses
	(In millions)
U.S. corporate	$	34,773	$	2	$	3,890	$	187	$	38,474	$	32,062	$	2	$	5,286	$	70	$	37,276
Foreign corporate	10,813		7		902		103		11,605		9,926		—		1,493		44		11,375
RMBS	8,838		—		433		51		9,220		7,578		—		644		3		8,219
U.S. government and agency	7,188		—		2,040		60		9,168		5,871		—		2,599		6		8,464
CMBS	6,890		2		329		24		7,193		6,120		—		586		9		6,697
State and political subdivision	3,937		—		829		6		4,760		3,607		—		948		—		4,555
ABS	4,255		—		34		14		4,275		2,831		—		60		10		2,881
Foreign government	1,593		—		244		5		1,832		1,488		—		345		1		1,832
Total fixed maturity securities	$	78,287	$	11	$	8,701	$	450	$	86,527	$	69,483	$	2	$	11,961	$	143	$	81,299

Maturities of Fixed Maturity Securities

The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2021:

	Due in One Year or Less		Due After One Year Through Five Years		Due After Five Years Through Ten Years		Due After Ten Years		Structured Securities		Total Fixed Maturity Securities
	(In millions)
Amortized cost	$	937	$	9,895	$	16,691	$	30,781	$	19,983	$	78,287
Estimated fair value	$	951	$	10,276	$	17,642	$	36,970	$	20,688	$	86,527

Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector

The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at:

	December 31, 2021								December 31, 2020
	Less than 12 Months				12 Months or Greater				Less than 12 Months				12 Months or Greater
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
	(Dollars in millions)
U.S. corporate	$	5,051	$	111	$	887	$	76	$	1,726	$	57	$	181	$	13
Foreign corporate	2,016		60		305		43		243		7		345		37
RMBS	3,481		50		32		1		180		2		22		1
U.S. government and agency	1,712		40		222		20		236		6		—		—
CMBS	1,390		21		95		3		331		7		44		2
State and political subdivision	347		6		6		—		46		—		—		—
ABS	2,454		13		93		1		506		3		629		7
Foreign government	278		4		18		1		55		1		—		—
Total fixed maturity securities	$	16,729	$	305	$	1,658	$	145	$	3,323	$	83	$	1,221	$	60
Total number of securities in an unrealized loss position	2,423				368				665				241

Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector

The changes in the allowance for credit losses by sector were as follows:

	U.S. Corporate		Foreign Corporate		CMBS		Total
	(In millions)
Balance at January 1, 2020	$	3	$	1	$	—	$	4
Allowance on securities where credit losses were not previously recorded	3		1		—		4
Reductions for securities sold	(1)		—		—		(1)
Change in allowance on securities with an allowance recorded in a previous period	—		(1)		—		(1)
Write-offs charged against allowance (1)	(3)		(1)		—		(4)
Balance at December 31, 2020	2		—		—		2
Allowance on securities where credit losses were not previously recorded	2		7		2		11
Reductions for securities sold	(2)		—		—		(2)
Change in allowance on securities with an allowance recorded in a previous period	—		—		—		—
Write-offs charged against allowance (1)	—		—		—		—
Balance at December 31, 2021	$	2	$	7	$	2	$	11

_______________

(1)The Company recorded total write-offs of $5 million and $13 million for the years ended December 31, 2021 and 2020, respectively.

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	December 31,
	2021				2020
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	12,159	61.4	%	$	9,687	61.6	%
Agricultural	4,128		20.9		3,479		22.1
Residential	3,623		18.3		2,650		16.9
Total mortgage loans (1)	19,910		100.6		15,816		100.6
Allowance for credit losses	(123)		(0.6)		(94)		(0.6)
Total mortgage loans, net	$	19,787	100.0	%	$	15,722	100.0	%

_______________

(1)    Purchases of mortgage loans from third parties were $2.1 billion and $815 million for the years ended December 31, 2021 and 2020, respectively, and were primarily comprised of residential mortgage loans.

Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment

The changes in the allowance for credit losses by portfolio segment were as follows:

	Commercial		Agricultural		Residential		Total
	(In millions)
Balance at December 31, 2019	$	47	$	10	$	7	$	64
Cumulative effect of change in accounting principle	(20)		6		14		—
Balance at January 1, 2020	27		16		21		64
Current period provision	17		(1)		14		30
Balance at December 31, 2020	44		15		35		94
Current period provision	23		(3)		7		27
PCD credit allowance	—		—		2		2
Balance at December 31, 2021	$	67	$	12	$	44	$	123

Purchases of PCD Mortgage Loans

Purchases of PCD mortgage loans are summarized as follows:

	December 31,
	2021		2020
	(In millions)
Purchase price	$	462	$	159
Allowance at acquisition date	2		3
Discount or premium attributable to other factors	(29)		(2)
Par value	$	435	$	160

Credit Quality of Mortgage Loans by Portfolio Segment

The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at:

	2021		2020		2019		2018		2017		Prior		Total
	(In millions)
December 31, 2021
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	2,771	$	437	$	1,539	$	986	$	553	$	3,300	$	9,586
65% to 75%	633		92		383		406		127		458		2,099
76% to 80%	—		—		55		29		59		31		174
Greater than 80%	—		—		—		30		—		270		300
Total commercial mortgage loans	3,404		529		1,977		1,451		739		4,059		12,159
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	1,150		539		510		674		284		608		3,765
65% to 75%	114		77		61		26		33		52		363
Total agricultural mortgage loans	1,264		616		571		700		317		660		4,128
Residential mortgage loans
Performing	1,124		202		270		230		132		1,606		3,564
Nonperforming	1		—		3		3		1		51		59
Total residential mortgage loans	1,125		202		273		233		133		1,657		3,623
Total	$	5,793	$	1,347	$	2,821	$	2,384	$	1,189	$	6,376	$	19,910

	2020		2019		2018		2017		2016		Prior		Total
	(In millions)
December 31, 2020
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	317	$	1,527	$	1,004	$	514	$	1,106	$	2,808	$	7,276
65% to 75%	200		450		482		322		59		498		2,011
76% to 80%	—		—		—		44		79		8		131
Greater than 80%	—		—		29		—		6		234		269
Total commercial mortgage loans	517		1,977		1,515		880		1,250		3,548		9,687
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	566		526		749		377		412		627		3,257
65% to 75%	81		80		10		33		—		18		222
Total agricultural mortgage loans	647		606		759		410		412		645		3,479
Residential mortgage loans
Performing	214		381		413		131		70		1,375		2,584
Nonperforming	2		6		4		—		1		53		66
Total residential mortgage loans	216		387		417		131		71		1,428		2,650
Total	$	1,380	$	2,970	$	2,691	$	1,421	$	1,733	$	5,621	$	15,816

The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at:

	December 31,
	2021				2020
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	10,263	84.4	%	$	9,423	97.3	%
1.00x - 1.20x	595		4.9		204		2.1
Less than 1.00x	1,301		10.7		60		0.6
Total	$	12,159	100.0	%	$	9,687	100.0	%

Past Due Mortgage Loans by Portfolio Segment

The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at:

	December 31,
	2021								2020
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	12,159	$	4,128	$	3,550	$	19,837	$	9,687	$	3,479	$	2,575	$	15,741
30-59 days past due	—		—		14		14		—		—		9		9
60-89 days past due	—		—		14		14		—		—		24		24
90-179 days past due	—		—		29		29		—		—		27		27
180+ days past due	—		—		16		16		—		—		15		15
Total	$	12,159	$	4,128	$	3,623	$	19,910	$	9,687	$	3,479	$	2,650	$	15,816

Mortgage Loans in Nonaccrual Status by Portfolio Segment

The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at:

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
December 31, 2021	$	—	$	—	$	59	$	59
December 31, 2020	$	—	$	—	$	66	$	66

_______________

(1)The Company had $0 and $7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses for the years ended December 31, 2021 and 2020, respectively.

Net Unrealized Investment Gains (Losses)

The components of net unrealized investment gains (losses), included in AOCI, were as follows:

	Years Ended December 31,
	2021		2020		2019
	(In millions)
Fixed maturity securities	$	8,251	$	11,818	$	6,894
Derivatives	320		162		232
Other	(27)		(16)		(15)
Subtotal	8,544		11,964		7,111
Amounts allocated from:
Future policy benefits	(3,210)		(4,598)		(2,691)
DAC, VOBA and DSI	(387)		(494)		(332)
Subtotal	(3,597)		(5,092)		(3,023)
Deferred income tax benefit (expense)	(1,039)		(1,443)		(859)
Net unrealized investment gains (losses)	$	3,908	$	5,429	$	3,229

The changes in net unrealized investment gains (losses) were as follows:

	Years Ended December 31,
	2021		2020		2019
	(In millions)
Balance at January 1,	$	5,429	$	3,229	$	744
Unrealized investment gains (losses) during the year	(3,420)		4,853		5,194
Unrealized investment gains (losses) relating to:
Future policy benefits	1,388		(1,907)		(1,806)
DAC, VOBA and DSI	107		(162)		(242)
Deferred income tax benefit (expense)	404		(584)		(661)
Balance at December 31,	$	3,908	$	5,429	$	3,229
Change in net unrealized investment gains (losses)	$	(1,521)	$	2,200	$	2,485

Securities Lending

Elements of the securities lending program are presented below at:

	December 31,
	2021		2020
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,573	$	2,373
Estimated fair value	$	4,539	$	3,603
Cash collateral received from counterparties (2)	$	4,611	$	3,674
Securities collateral received from counterparties (3)	$	2	$	—
Reinvestment portfolio — estimated fair value	$	4,730	$	3,830

_______________

(1)Included within fixed maturity securities.

(2)Included within payables for collateral under securities loaned and other transactions.

(3)Securities collateral received from counterparties may not be sold or re-pledged, unless the counterparty is in default, and is not reported on the consolidated financial statements.

The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at:

	December 31, 2021								December 31, 2020
	Open (1)		1 Month or Less		1 to 6 Months		Total		Open (1)		1 Month or Less		1 to 6 Months		Total
	(In millions)
U.S. government and agency	$	1,094	$	2,125	$	1,391	$	4,610	$	937	$	2,300	$	437	$	3,674
U.S. corporate	1		—		—		1		—		—		—		—
Total	$	1,095	$	2,125	$	1,391	$	4,611	$	937	$	2,300	$	437	$	3,674

_______________

(1)The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral.

Invested Assets on Deposit, Held in Trust and Pledged as Collateral

Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at:

	December 31,
	2021		2020
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	9,996	$	10,131
Invested assets held in trust (reinsurance agreements) (2)	6,023		5,711
Invested assets pledged as collateral (3)	5,116		5,595
Total invested assets on deposit, held in trust and pledged as collateral	$	21,135	$	21,437

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $25 million and $59 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2021 and 2020, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $118 million and $101 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2021 and 2020, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3) and derivative transactions (see Note 7).

Variable Interest Entities

The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at:

	December 31,
	2021				2020
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	16,326	$	15,659	$	13,494	$	12,416
Limited partnerships and LLCs	3,666		5,101		2,307		3,565
Total	$	19,992	$	20,760	$	15,801	$	15,981

Components of Net Investment Income

The components of net investment income were as follows:

	Years Ended December 31,
	2021		2020		2019
	(In millions)
Investment income:
Fixed maturity securities	$	2,794	$	2,659	$	2,627
Equity securities	5		6		8
Mortgage loans	686		663		676
Policy loans	41		34		46
Limited partnerships and LLCs (1)	1,391		240		220
Cash, cash equivalents and short-term investments	3		41		72
Other	42		52		38
Total investment income	4,962		3,695		3,687
Less: Investment expenses	147		167		201
Net investment income	$	4,815	$	3,528	$	3,486

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $1.3 billion, $225 million and $181 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Components of Net Investment Gains (Losses)

The components of net investment gains (losses) were as follows:

	Years Ended December 31,
	2021		2020		2019
	(In millions)
Fixed maturity securities	$	(22)	$	298	$	87
Equity securities	—		—		17
Mortgage loans	(29)		(27)		(10)
Limited partnerships and LLCs	—		(3)		7
Other	(12)		11		(9)
Total net investment gains (losses)	$	(63)	$	279	$	92

Sales or Disposals of Fixed Maturity Securities

Proceeds from sales or disposals of fixed maturity securities and the components of fixed maturity securities net investment gains (losses) were as follows:

	Years Ended December 31,
	2021		2020		2019
	(In millions)
Proceeds	$	6,201	$	3,201	$	8,541
Gross investment gains	$	96	$	389	$	232
Gross investment losses	(100)		(76)		(145)
Net investment gains (losses)	$	(4)	$	313	$	87