Investments (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:

	December 31, 2022										December 31, 2021
	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	$	36,399	$	1	$	200	$	4,436	$	32,162	$	34,773	$	2	$	3,890	$	187	$	38,474
Foreign corporate	12,368		1		37		1,912		10,492		10,813		7		902		103		11,605
U.S. government and agency	8,195		—		299		596		7,898		7,188		—		2,040		60		9,168
RMBS	8,384		1		44		936		7,491		8,838		—		433		51		9,220
CMBS	7,239		3		—		699		6,537		6,890		2		329		24		7,193
ABS	5,647		—		3		295		5,355		4,255		—		34		14		4,275
State and political subdivision	4,015		—		120		394		3,741		3,937		—		829		6		4,760
Foreign government	1,148		—		39		106		1,081		1,593		—		244		5		1,832
Total fixed maturity securities	$	83,395	$	6	$	742	$	9,374	$	74,757	$	78,287	$	11	$	8,701	$	450	$	86,527

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, 2022:

	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	$	1,010	$	13,547	$	16,818	$	30,750	$	21,270	$	83,395
Estimated fair value	$	996	$	12,836	$	14,853	$	26,689	$	19,383	$	74,757

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, 2022								December 31, 2021
	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	$	24,163	$	3,279	$	3,915	$	1,157	$	5,051	$	111	$	887	$	76
Foreign corporate	8,219		1,407		1,560		505		2,016		60		305		43
U.S. government and agency	3,037		259		1,146		337		1,712		40		222		20
RMBS	4,693		489		2,245		447		3,481		50		32		1
CMBS	5,524		534		961		165		1,390		21		95		3
ABS	3,347		159		1,728		136		2,454		13		93		1
State and political subdivision	2,026		313		239		81		347		6		6		—
Foreign government	779		98		21		8		278		4		18		1
Total fixed maturity securities	$	51,788	$	6,538	$	11,815	$	2,836	$	16,729	$	305	$	1,658	$	145
Total number of securities in an unrealized loss position	7,261				2,018				2,423				368

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:

	December 31,
	2022				2021
	Carrying Value		% of Total		Carrying Value		% of Total
	(Dollars in millions)
Commercial	$	13,547	59.2	%	$	12,159	61.4	%
Agricultural	4,333		18.9		4,128		20.9
Residential	5,116		22.4		3,623		18.3
Total mortgage loans (1)	22,996		100.5		19,910		100.6
Allowance for credit losses	(119)		(0.5)		(123)		(0.6)
Total mortgage loans, net	$	22,877	100.0	%	$	19,787	100.0	%

_______________

(1)    Purchases of mortgage loans from third parties were $2.2 billion and $2.1 billion for the years ended December 31, 2022 and 2021, 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 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
Current period provision	5		3		11		19
Charge-offs, net of recoveries	(23)		—		—		(23)
Balance at December 31, 2022	$	49	$	15	$	55	$	119

Purchases of PCD Mortgage Loans

Purchases of PCD mortgage loans are summarized as follows:

	December 31,
	2022		2021
	(In millions)
Purchase price	$	62	$	462
Allowance at acquisition date	—		2
Discount or premium attributable to other factors	7		(29)
Par value	$	69	$	435

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:

	2022		2021		2020		2019		2018		Prior		Total
	(In millions)
December 31, 2022
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%	$	1,916	$	2,819	$	405	$	1,493	$	888	$	3,624	$	11,145
65% to 75%	503		354		—		271		367		402		1,897
76% to 80%	—		18		40		90		65		48		261
Greater than 80%	—		—		—		25		57		162		244
Total commercial mortgage loans	2,419		3,191		445		1,879		1,377		4,236		13,547
Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%	532		1,163		418		496		643		710		3,962
65% to 75%	148		90		59		56		1		16		370
Greater than 80%	—		—		—		—		1		—		1
Total agricultural mortgage loans	680		1,253		477		552		645		726		4,333
Residential mortgage loans
Performing	1,266		1,745		167		215		168		1,491		5,052
Nonperforming	4		8		—		2		1		49		64
Total residential mortgage loans	1,270		1,753		167		217		169		1,540		5,116
Total	$	4,369	$	6,197	$	1,089	$	2,648	$	2,191	$	6,502	$	22,996

	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

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

	December 31,
	2022				2021
	Amortized Cost		% of Total		Amortized Cost		% of Total
	(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x	$	12,132	89.6	%	$	10,263	84.4	%
1.00x - 1.20x	589		4.3		595		4.9
Less than 1.00x	826		6.1		1,301		10.7
Total	$	13,547	100.0	%	$	12,159	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,
	2022								2021
	Commercial		Agricultural		Residential		Total		Commercial		Agricultural		Residential		Total
	(In millions)
Current	$	13,547	$	4,314	$	5,041	$	22,902	$	12,159	$	4,128	$	3,550	$	19,837
30-59 days past due	—		—		11		11		—		—		14		14
60-89 days past due	—		—		16		16		—		—		14		14
90-179 days past due	—		3		31		34		—		—		29		29
180+ days past due	—		16		17		33		—		—		16		16
Total	$	13,547	$	4,333	$	5,116	$	22,996	$	12,159	$	4,128	$	3,623	$	19,910

Mortgage Loans in Nonaccrual Status by Portfolio Segment

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

	Commercial		Agricultural		Residential (1)		Total
	(In millions)
December 31, 2022	$	11	$	3	$	64	$	78
December 31, 2021	$	—	$	—	$	59	$	59

_______________

(1)All mortgage loans in nonaccrual status had an allowance for credit losses at both December 31, 2022 and 2021.

Net Unrealized Investment Gains (Losses)

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

	Years Ended December 31,
	2022		2021		2020
	(In millions)
Fixed maturity securities	$	(8,632)	$	8,251	$	11,818
Derivatives	628		320		162
Other	(7)		(27)		(16)
Subtotal	(8,011)		8,544		11,964
Amounts allocated from:
Future policy benefits	964		(3,210)		(4,598)
DAC and VOBA	392		(387)		(494)
Subtotal	1,356		(3,597)		(5,092)
Deferred income tax benefit (expense)	1,398		(1,039)		(1,443)
Net unrealized investment gains (losses)	$	(5,257)	$	3,908	$	5,429

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

	Years Ended December 31,
	2022		2021		2020
	(In millions)
Balance at January 1,	$	3,908	$	5,429	$	3,229
Unrealized investment gains (losses) during the year	(16,555)		(3,420)		4,853
Unrealized investment gains (losses) relating to:
Future policy benefits	4,174		1,388		(1,907)
DAC and VOBA	779		107		(162)
Deferred income tax benefit (expense)	2,437		404		(584)
Balance at December 31,	$	(5,257)	$	3,908	$	5,429
Change in net unrealized investment gains (losses)	$	(9,165)	$	(1,521)	$	2,200

Securities Lending

Elements of the securities lending program are presented below at:

	December 31,
	2022		2021
	(In millions)
Securities on loan: (1)
Amortized cost	$	3,995	$	3,573
Estimated fair value	$	3,638	$	4,539
Cash collateral received from counterparties (2)	$	3,731	$	4,611
Securities collateral received from counterparties (3)	$	—	$	2
Reinvestment portfolio — estimated fair value	$	3,603	$	4,730

_______________

(1)Included in fixed maturity securities.

(2)Included in 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, 2022								December 31, 2021
	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	$	640	$	1,527	$	984	$	3,151	$	1,094	$	2,125	$	1,391	$	4,610
U.S. corporate	2		410		—		412		1		—		—		1
Foreign corporate	—		152		—		152		—		—		—		—
Foreign government	—		16		—		16		—		—		—		—
Total	$	642	$	2,105	$	984	$	3,731	$	1,095	$	2,125	$	1,391	$	4,611

_______________

(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,
	2022		2021
	(In millions)
Invested assets on deposit (regulatory deposits) (1)	$	7,996	$	9,996
Invested assets held in trust (reinsurance agreements) (2)	5,592		6,023
Invested assets pledged as collateral (3)	13,920		5,116
Total invested assets on deposit, held in trust and pledged as collateral	$	27,508	$	21,135

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $21 million and $25 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2022 and 2021, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $233 million and $118 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2022 and 2021, 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,
	2022				2021
	Carrying Amount		Maximum Exposure to Loss		Carrying Amount		Maximum Exposure to Loss
	(In millions)
Fixed maturity securities	$	15,781	$	17,334	$	16,326	$	15,659
Limited partnerships and LLCs	4,123		5,478		3,666		5,101
Total	$	19,904	$	22,812	$	19,992	$	20,760

Components of Net Investment Income

The components of net investment income were as follows:

	Years Ended December 31,
	2022		2021		2020
	(In millions)
Investment income:
Fixed maturity securities	$	3,044	$	2,794	$	2,659
Equity securities	2		5		6
Mortgage loans	840		686		663
Policy loans	42		41		34
Limited partnerships and LLCs (1)	263		1,391		240
Cash, cash equivalents and short-term investments	56		3		41
Other	66		42		52
Total investment income	4,313		4,962		3,695
Less: Investment expenses	249		147		167
Net investment income	$	4,064	$	4,815	$	3,528

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $170 million, $1.3 billion and $225 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Components of Net Investment Gains (Losses)

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

	Years Ended December 31,
	2022		2021		2020
	(In millions)
Fixed maturity securities	$	(188)	$	(22)	$	298
Equity securities	(12)		—		—
Mortgage loans	(20)		(29)		(27)
Limited partnerships and LLCs	(20)		—		(3)
Other	—		(12)		11
Total net investment gains (losses)	$	(240)	$	(63)	$	279

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,
	2022		2021		2020
	(In millions)
Proceeds	$	6,557	$	6,201	$	3,201
Gross investment gains	$	55	$	96	$	389
Gross investment losses	(236)		(100)		(76)
Net investment gains (losses)	$	(181)	$	(4)	$	313