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INVESTMENTS
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fixed Maturities AFS
Accounting for credit impairments of fixed maturities classified as AFS has changed from a direct write-down, or OTTI approach to an allowance for credit loss model starting in 2020 upon adoption of CECL (see Note 2 of the Notes to these Financial Statements).
The components of fair value and amortized cost for fixed maturities classified as AFS on the 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 as of December 31, 2021 was $20 million. There was no accrued interest written off for AFS fixed maturities for the years ended December 31, 2021 and 2020.
The following tables provide information relating to the Company’s fixed maturities classified as AFS. Comparative tables as of December 31, 2021 include OTTI, reported net of tax in OCI and in AOCI until realized.
AFS Fixed Maturities by Classification
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses
Fair Value
(in millions)
December 31, 2021:
Fixed Maturities:
Corporate (1)$2,237 $— $135 $10 $2,362 
U.S. Treasury, government and agency66 — 1 1 66 
States and political subdivisions31 — 3 — 34 
Asset-backed (2)
30 — — — 30 
Commercial mortgage-backed80 — — — 80 
Redeemable preferred stock (3)
— — — — — 
Total at December 31, 2021$2,444 $— $139 $11 $2,572 
December 31, 2020:
Fixed Maturities:
Corporate (1)$2,082 $— $242 $2 $2,322 
U.S. Treasury, government and agency61 — 2 — 63 
States and political subdivisions27 — 3 — 30 
Asset-backed (2)4 — 1 — 5 
Commercial mortgage-backed— — — — — 
Redeemable preferred stock (3)
23 — 2 — 25 
Total at December 31, 2020$2,197 $— $250 $2 $2,445 
—
______________
(1)Corporate fixed maturities include both public and private issues.
(2)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities. and other asset types.
(3)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Financial Statements).

The contractual maturities of AFS fixed maturities as of December 31, 2021 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)
December 31, 2021:
Contractual maturities:
Due in one year or less$44 $44 
Due in years two through five572 604 
Due in years six through ten860 907 
Due after ten years858 907 
Subtotal2,334 2,462 
Asset-backed30 30 
Commercial mortgage-backed80 80 
Total at December 31, 2021$2,444 $2,572 

The following table shows proceeds from sales, gross gains (losses) from sales and credit losses for AFS fixed maturities for the years ended December 31, 2021, 2020 and 2019:

Proceeds from Sales, Gross Gains (Losses) from Sales and Credit Losses for AFS Fixed Maturities
 Year Ended December 31,
 202120202019
 (in millions)
Proceeds from sales$302 $153 $101 
Gross gains on sales$8 $5 $1 
Gross losses on sales$(4)$(4)$(1)
Credit losses (1)$— $— $— 
______________
(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. Prior to this, 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
Year Ended December 31,
202120202019
(in millions)
Balance, beginning of period $2 $2 $5 
Previously recognized impairments on securities that matured, paid, prepaid or sold— — (3)
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— — — 
Additional credit losses this period on securities previously impaired— — — 
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, end of period$2 $2 $2 
______________
(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.

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 Investments
DAC  Policyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) 
(in millions)
Balance, January 1, 2021$248 $(111)$37 $(36)$138 
Net investment gains (losses) arising during the period(114)— — — (114)
Reclassification adjustment:
Included in net income (loss)(4)— — — (4)
Other (1)(2)— — — (2)
Impact of net unrealized investment gains (losses)— 65 (9)12 68 
Net unrealized investment gains (losses) excluding credit losses128 (46)28 (24)86 
Net unrealized investment gains (losses) with credit losses— — — — — 
Balance, December 31, 2021$128 $(46)$28 $(24)$86 
Balance, January 1, 2020$101 $(53)$12 $(12)$48 
Net investment gains (losses) arising during the period148 — — — 148 
Reclassification adjustment:
Included in net income (loss)(1)— — — (1)
Impact of net unrealized investment gains (losses)— (58)25 (24)(57)
Net unrealized investment gains (losses) excluding credit losses248 (111)37 (36)138 
Net unrealized investment gains (losses) with credit losses— — — — — 
Balance, December 31, 2020$248 $(111)$37 $(36)$138 
Balance, January 1, 2019$(57)$48 $(6)$3 $(12)
Net investment gains (losses) arising during the period158 — — — 158 
Reclassification adjustment:
Included in net income (loss)— — — — — 
Impact of net unrealized investment gains (losses)— (101)18 (15)(98)
Net unrealized investment gains (losses) excluding credit losses101 (53)12 (12)48 
Net unrealized investment gains (losses) with credit losses— — — — — 
Balance, December 31, 2019$101 $(53)$12 $(12)$48 
______________
(1)Effective January 1, 2021, certain preferred stock have been reclassified to other equity investments (see Note 2 of the Notes to these Consolidated Financial Statements- Investments).
The following tables disclose the fair values and gross unrealized losses of the 119 issues as of December 31, 2021 and the 14 issues as of December 31, 2020 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)
December 31, 2021:
Fixed Maturities:
Corporate$243 $4 $111 $6 $354 $10 
U.S. Treasury, government and agency45 1 2 — 47 1 
Total at December 31, 2021$288 $5 $113 $6 $401 $11 
December 31, 2020:
Fixed Maturities:
Corporate$52 $1 $3 $1 $55 $2 
Total at December 31, 2020$52 $1 $3 $1 $55 $2 

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the 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 1.1% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of December 31, 2021 and 2020 were $27 million and $28 million, respectively, representing 3.8% and 3.5% of the 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 NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of December 31, 2021 and 2020, respectively, approximately $10 million and $26 million, or 0.4% and 1.2%, of the $2,444 million and $2,197 million 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 $0 million and $1 million as of December 31, 2021 and 2020, respectively.
As of December 31, 2021 and 2020, respectively, the $6 million and $1 million of gross unrealized losses of twelve months or more were concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Financial Statements, the Company concluded that an allowance for credit losses for these securities was not warranted at either December 31, 2021 or 2020. As of December 31, 2021 and 2020, 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 December 31, 2021, the Company determined that the unrealized loss was primarily due to increases in credit spreads and changes in credit ratings.
Mortgage Loans on Real Estate
The Company held two commercial mortgage loans with a carrying value of $17 million at December 31, 2021 and 2020. The loans were issued prior to 2017 for apartment complex properties located in the Mid-Atlantic region. The loans were current as of December 31, 2021 and 2020 with LTV ratios between 0%-50% and DSC ratios greater than 2.0x.
Accrued interest receivable as of December 31, 2021 and 2020 was $0 million and no accrued interest was written off for the years ended December 31, 2021 and 2020. The allowance for credit losses was $0 million as of December 31, 2021 and 2020, with a change of $0 million for the years then ended.
As of December 31, 2021 and 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.

Equity Method Investments
The following table presents the Company’s investment in 2.6 million units of AB (approximately 0.95% ownership) with a fair value of $0 million and $63 million at December 31, 2021 and 2020, respectively. The Company transferred the AB units to its parent in May 2021 as a return of capital. The Company’s investment in AB, an affiliate, is included in Other invested assets at December 31, 2020:
Year Ended December 31,
20212020
(in millions)
Balance at January 1 ,$63 $63 
Equity in net income (loss)3 8 
Dividends received(5)(8)
Dividend to parent(61)— 
Balance at December 31,
$— $63 

The tables below detail the condensed balance sheets and statements of income (loss) of AB and the Company’s equity investment and equity in income (loss) of AB.
Year Ended December 31,
20212020
Balance Sheets:(in millions)
Total Assets$10,510 $9,698 
Total Liabilities5,928 5,484 
Redeemable non-controlling interest421 102 
Total Partners Capital4,161 4,112 
Total Liabilities and Partners Capital
10,510 9,698 
Equitable America’s Equity investment in AB$— $63 


Year Ended December 31,
202120202019
Statement of Income (loss)(in millions)
Total Revenues$4,442 $3,709 $3,518 
Total Expenses3,225 2,801 2,695 
Net Income (Loss)1,154 862 782 
Equitable America’s Equity Income (loss) of AB$3 $8 $7 

Net Investment Income (Loss)
The following table breaks out net investment income (loss) by asset category:
Year Ended December 31,
202120202019
(in millions)
Fixed maturities$83 $74 $61 
Mortgage loans on real estate1 1 1 
Other equity investments3 — — 
Policy loans3 3 3 
Equity in income (loss) from AB
3 8 7 
Other investment income— — 2 
Gross investment income (loss)93 86 74 
Investment expenses(3)(3)(3)
Net investment income (loss)$90 $83 $71