XML 55 R41.htm IDEA: XBRL DOCUMENT

Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities by Sector

Fixed maturity securities by sector were as follows at:


			December 31, 2023																														December 31, 2022
			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			$	38,303					$	15					$	383					$	3,332					$	35,339					$	36,399					$	1					$	200					$	4,436					$	32,162
Foreign corporate			12,769						—						89						1,276						11,582						12,368						1						37						1,912						10,492
U.S. government and agency			8,446						—						285						517						8,214						8,195						—						299						596						7,898
RMBS			8,127						4						48						805						7,366						8,384						1						44						936						7,491
ABS			6,509						—						23						131						6,401						5,647						—						3						295						5,355
CMBS			6,940						2						2						601						6,339						7,239						3						—						699						6,537
State and political subdivision			3,958						—						153						298						3,813						4,015						—						120						394						3,741
Foreign government			1,077						—						41						87						1,031						1,148						—						39						106						1,081
Total fixed maturity securities			$	86,129					$	21					$	1,024					$	7,047					$	80,085					$	83,395					$	6					$	742					$	9,374					$	74,757

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, 2023:


			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			$	2,725					$	17,064					$	15,000					$	29,764					$	21,576					$	86,129
Estimated fair value			$	2,691					$	16,611					$	13,764					$	26,913					$	20,106					$	80,085

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, 2023																								December 31, 2022
			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			$	4,549					$	409					$	22,435					$	2,923					$	24,163					$	3,279					$	3,915					$	1,157
Foreign corporate			1,010						74						8,229						1,202						8,219						1,407						1,560						505
U.S. government and agency			445						8						3,453						509						3,037						259						1,146						337
RMBS			413						21						5,749						784						4,693						489						2,245						447
ABS			572						3						3,355						128						3,347						159						1,728						136
CMBS			411						33						5,713						568						5,524						534						961						165
State and political subdivision			460						31						1,636						267						2,026						313						239						81
Foreign government			113						6						620						81						779						98						21						8
Total fixed maturity securities			$	7,973					$	585					$	51,190					$	6,462					$	51,788					$	6,538					$	11,815					$	2,836
Total number of securities in an unrealized loss position			1,339												6,958												7,261												2,018

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												RMBS									CMBS						Foreign Corporate															Total
						(In millions)
Balance at December 31, 2021						$	2											$	—								$	2					$	7														$	11
Allowance on securities where credit losses were not previously recorded						—												1									—						—															1

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)						—												—									—						(6)															(6)
Balance at December 31, 2022						1												1									3						1															6
Allowance on securities where credit losses were not previously recorded						15												3									—						—															18

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)						—												—									—						(1)															(1)
Balance at December 31, 2023						$	15											$	4								$	2					$	—														$	21

_______________

(1)The Company recorded total write-offs of $8 million and $10 million for the years ended December 31, 2023 and 2022, respectively.

Mortgage Loans by Portfolio Segment

Mortgage loans are summarized as follows at:


			December 31,
			2023												2022
			Carrying Value						% of Total						Carrying Value						% of Total
			(Dollars in millions)
Commercial			$	13,189					58.7		%				$	13,547					59.2		%
Agricultural			4,416						19.6						4,333						18.9
Residential			5,007						22.3						5,116						22.4
Total mortgage loans (1)			22,612						100.6						22,996						100.5
Allowance for credit losses			(137)						(0.6)						(119)						(0.5)
Total mortgage loans, net			$	22,475					100.0		%				$	22,877					100.0		%

_______________

(1) Purchases of mortgage loans from third parties were $311 million and $2.2 billion for the years ended December 31, 2023 and 2022, 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, 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
Current period provision			24						5						(6)						23
Charge-offs, net of recoveries			(4)						(1)						—						(5)
Balance at December 31, 2023			$	69					$	19					$	49					$	137

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:


			2023						2022						2021						2020						2019						Prior						Total
			(In millions)
December 31, 2023
Commercial mortgage loans
Loan-to-value ratios:
Less than 65%			$	206					$	655					$	1,823					$	177					$	1,239					$	2,628					$	6,728
65% to 75%			—						935						1,079						222						261						1,157						3,654
76% to 80%			—						427						76						39						209						563						1,314
Greater than 80%			—						400						227						—						150						716						1,493
Total commercial mortgage loans			206						2,417						3,205						438						1,859						5,064						13,189

Agricultural mortgage loans
Loan-to-value ratios:
Less than 65%			202						571						1,132						452						505						1,265						4,127
65% to 75%			1						127						108						6						30						17						289


Total agricultural mortgage loans			203						698						1,240						458						535						1,282						4,416

Residential mortgage loans
Performing			105						1,286						1,669						145						204						1,508						4,917
Nonperforming			—						22						22						1						2						43						90
Total residential mortgage loans			105						1,308						1,691						146						206						1,551						5,007
Total			$	514					$	4,423					$	6,136					$	1,042					$	2,600					$	7,897					$	22,612


			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

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


			December 31,
			2023												2022
			Amortized Cost						% of Total						Amortized Cost						% of Total
			(Dollars in millions)
Debt-service coverage ratios:
Greater than 1.20x			$	12,082					91.6		%				$	12,132					89.6		%
1.00x - 1.20x			702						5.3						589						4.3
Less than 1.00x			405						3.1						826						6.1
Total			$	13,189					100.0		%				$	13,547					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,
			2023																								2022
			Commercial						Agricultural						Residential						Total						Commercial						Agricultural						Residential						Total
			(In millions)
Current			$	13,172					$	4,400					$	4,915					$	22,487					$	13,547					$	4,314					$	5,041					$	22,902
30-59 days past due			—						—						2						2						—						—						11						11
60-89 days past due			—						—						30						30						—						—						16						16
90-179 days past due			—						—						23						23						—						3						31						34
180+ days past due			17						16						37						70						—						16						17						33
Total			$	13,189					$	4,416					$	5,007					$	22,612					$	13,547					$	4,333					$	5,116					$	22,996

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, 2023			$	17					$	—					$	90					$	107
December 31, 2022			$	11					$	3					$	64					$	78

_______________

(1)The Company had no mortgage loans in nonaccrual status for which there was no related allowance for credit losses at both December 31, 2023 and 2022.

Net Unrealized Investment Gains (Losses)

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


			Years Ended December 31,
			2023						2022						2021
			(In millions)
Fixed maturity securities			$	(6,023)					$	(8,632)					$	8,251

Derivatives			344						628						320
Other			(7)						(7)						(27)
Subtotal			(5,686)						(8,011)						8,544
Amounts allocated from:
Future policy benefits			696						992						(1,925)


Deferred income tax benefit (expense)			1,048						1,474						(1,390)
Net unrealized investment gains (losses)			$	(3,942)					$	(5,545)					$	5,229

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


			Years Ended December 31,
			2023						2022						2021
			(In millions)
Balance at December 31,			$	(5,545)					$	5,229					$	5,429
Unrealized investment gains (losses) change due to cumulative effect, net of income tax			—						—						1,959
Balance at January 1,			$	(5,545)					$	5,229					$	7,388
Unrealized investment gains (losses) during the year			2,325						(16,555)						(3,420)
Unrealized investment gains (losses) relating to:
Future policy benefits			(296)						2,917						687

Deferred income tax benefit (expense)			(426)						2,864						574
Balance at December 31,			$	(3,942)					$	(5,545)					$	5,229
Change in net unrealized investment gains (losses)			$	1,603					$	(10,774)					$	(2,159)

Securities Lending

Elements of the securities lending program are presented below at:


			December 31,
			2023						2022
			(In millions)
Securities on loan: (1)
Amortized cost			$	3,420					$	3,995
Estimated fair value			$	3,194					$	3,638
Cash collateral received from counterparties (2)			$	3,277					$	3,731

Reinvestment portfolio — estimated fair value			$	3,246					$	3,603

_______________

(1)Included in fixed maturity securities.

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

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


			December 31, 2023																								December 31, 2022
			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			$	647					$	655					$	1,584											$	2,886											$	640					$	1,527					$	984											$	3,151
U.S. corporate			—						252						—												252												2						410						—												412
Foreign corporate			—						130						—												130												—						152						—												152
Foreign government			—						9						—												9												—						16						—												16
Total			$	647					$	1,046					$	1,584											$	3,277											$	642					$	2,105					$	984											$	3,731

_______________

(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,
			2023						2022
			(In millions)
Invested assets on deposit (regulatory deposits) (1)			$	8,590					$	7,996
Invested assets held in trust (reinsurance agreements) (2)			7,103						5,592
Invested assets pledged as collateral (3)			13,979						13,920
Total invested assets on deposit, held in trust and pledged as collateral			$	29,672					$	27,508

_______________

(1)The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $102 million and $21 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2023 and 2022, respectively.

(2)The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $117 million and $233 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2023 and 2022, respectively.

(3)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 4) and derivative transactions (see Note 10).

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,
			2023												2022
			Carrying Amount						Maximum Exposure to Loss						Carrying Amount						Maximum Exposure to Loss
			(In millions)

Fixed maturity securities			$	15,386					$	16,611					$	15,781					$	17,334

Limited partnerships and LLCs			4,220						5,242						4,123						5,478


Total			$	19,606					$	21,853					$	19,904					$	22,812

Components of Net Investment Income

The components of net investment income were as follows:


			Years Ended December 31,
			2023						2022						2021
			(In millions)
Investment income:
Fixed maturity securities			$	3,481					$	3,044					$	2,794
Equity securities			2						2						5
Mortgage loans			957						840						686
Policy loans			45						42						41
Limited partnerships and LLCs (1)			167						263						1,391
Cash, cash equivalents and short-term investments			181						56						3

Other			84						66						42
Total investment income			4,917						4,313						4,962
Less: Investment expenses			357						249						147



Net investment income			$	4,560					$	4,064					$	4,815

_______________

(1)Includes net investment income pertaining to other limited partnership interests of $186 million, $170 million and $1.3 billion for the years ended December 31, 2023, 2022 and 2021, respectively.

Components of Net Investment Gains (Losses)

Components of Net Investment Gains (Losses)

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


			Years Ended December 31,
			2023						2022						2021
			(In millions)
Fixed maturity securities			$	(214)					$	(188)					$	(22)
Equity securities			(1)						(12)						—
Mortgage loans			(24)						(20)						(29)
Limited partnerships and LLCs			(1)						(20)						—

Other			(2)						—						(12)
Total net investment gains (losses)			$	(242)					$	(240)					$	(63)

Gains (losses) from foreign currency transactions included within net investment gains (losses) were ($1) million, ($18) million and $0 for the years ended December 31, 2023, 2022 and 2021, respectively.

Sales or Disposals of Fixed Maturity Securities

Sales or Disposals of Fixed Maturity Securities

Investment gains and losses on sales of securities are determined on a specific identification basis. 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,
			2023						2022						2021
			(In millions)
Proceeds			$	2,223					$	6,557					$	6,201
Gross investment gains			$	15					$	55					$	96
Gross investment losses			(206)						(236)						(100)
Net investment gains (losses)			$	(191)					$	(181)					$	(4)