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Investments (Tables)

9 Months Ended

Sep. 30, 2020


Net Realized Capital Gains (Losses)
	Three Months Ended September 30,				Nine Months Ended September 30,
(Before tax)	2020		2019		2020		2019
Gross gains on sales	$	27	$	77	$	201	$	190
Gross losses on sales	(12)		(4)		(42)		(44)
Equity securities [1]	42		19		(269)		181
Net credit losses on fixed maturities, AFS [2]	(1)				(33)
Change in ACL on mortgage loans [3]	5				(19)

Intent-to-sell impairments	—		—		(5)		—
Net OTTI losses recognized in earnings			(1)				(3)
Valuation allowances on mortgage loans			—				1




Other, net [4]	(55)		(2)		51		7



Net realized capital gains (losses)	$	6	$	89	$	(116)	$	332

[1] The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of September 30, 2020, were $36 and $6 for the three and nine months ended September 30, 2020, respectively. The net unrealized gains (losses) on equity securities included in net realized capital gains (losses) related to equity securities still held as of September 30, 2019, were $17 and $100 for the three and nine months ended September 30, 2019, respectively.

[2] Due to the adoption of accounting guidance for credit losses on January 1, 2020, realized capital losses previously reported as OTTI are now presented as credit losses which are net of any recoveries. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies. In addition, see Credit Losses on Fixed Maturities, AFS within the Investment Portfolio Risks and Risk Management section of the MD&A.

[3]Represents the change in ACL recorded during the period following the adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies. In addition, see ACL on Mortgage Loans within the Investment Portfolio Risks and Risk Management section of the MD&A.

[4] Primarily includes loss of $51 from the sale of the Continental Europe Operations for the three and nine months ended September 30, 2020. Also includes gains (losses) from transactional foreign currency revaluation of ($4) and $6 for the three and nine months ended September 30, 2020, respectively. Additionally, for the same periods, includes gains (losses) on non-qualifying derivatives of $(2) and $97, respectively. For the three and nine months ended September 30, 2019, includes gains (losses) on non-qualifying derivatives of $(5) and $3, respectively

Debt Securities, Available-for-sale, Allowance for Credit Loss [Table Text Block]


ACL on Fixed Maturities, AFS by Type
	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
(Before tax)	Corporate		Municipal		Total		Corporate		Municipal		Total
Balance as of beginning of period	$	32	$	—	$	32	$	—	$	—	$	—
Credit losses on fixed maturities where credit losses were not previously recorded	—		3		3		35		3		38

Reduction due to sales	(1)		—		(1)		(3)		—		(3)

Net increase (decrease) in allowance on fixed maturities that had an allowance in a previous period	(2)		—		(2)		(3)		—		(3)


Balance as of end of period	$	29	$	3	$	32	$	29	$	3	$	32

Impairments


Cumulative Credit Impairments on Fixed Maturities, AFS
	Three Months Ended September 30,		Nine Months Ended September 30,
(Before tax)	2019		2019
Balance as of beginning of period	$	(18)	$	(19)
Additions for credit impairments recognized on [1]:
Fixed maturities not previously impaired	(1)		(3)

Reductions for credit impairments previously recognized on:
Fixed maturities that matured or were sold during the period	—		3


Balance as of end of period	$	(19)	$	(19)

[1]These additions are included in the net OTTI losses recognized in earnings in the Condensed Consolidated Statements of Operations.

Schedule of Available-for-sale Securities


Fixed Maturities, AFS, by Type
	September 30, 2020										December 31, 2019
	Amortized Cost		ACL [1]		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Non-Credit OTTI [2]
ABS	$	1,449	$	—	$	41	$	—	$	1,490		$	1,461	$	18	$	(3)	$	1,476	$	—
CLOs	2,465		—		4		(20)		2,449			2,186		5		(8)		2,183		—
CMBS	4,200		—		275		(31)		4,444			4,210		141		(13)		4,338		(4)
Corporate	17,930		(29)		1,597		(82)		19,416			16,435		986		(25)		17,396		—
Foreign govt./govt. agencies	901		—		83		—		984			1,057		66		—		1,123		—
Municipal	8,491		(3)		829		(7)		9,310			8,763		737		(2)		9,498		—
RMBS	4,394		—		156		(2)		4,548			4,775		97		(3)		4,869		—
U.S. Treasuries	1,243		—		160		—		1,403			1,191		75		(1)		1,265		—
Total fixed maturities, AFS	$	41,073	$	(32)	$	3,145	$	(142)	$	44,044		$	40,078	$	2,125	$	(55)	$	42,148	$	(4)

[1] Represents the ACL recorded following the adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

[2]Represents the amount of cumulative non-credit impairment losses recognized in OCI on fixed maturities that also had credit impairments. These losses are included in gross unrealized losses as of December 31, 2019.

Investments by Contractual Maturity Year


Fixed Maturities, AFS, by Contractual Maturity Year
	September 30, 2020				December 31, 2019
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
One year or less	$	1,593	$	1,614	$	1,082	$	1,090
Over one year through five years	6,872		7,229		7,200		7,401
Over five years through ten years	8,166		8,769		7,395		7,803
Over ten years	11,934		13,501		11,769		12,988
Subtotal	28,565		31,113		27,446		29,282
Mortgage-backed and asset-backed securities	12,508		12,931		12,632		12,866
Total fixed maturities, AFS	$	41,073	$	44,044	$	40,078	$	42,148

Unrealized Gain (Loss) on Investments [Table Text Block]


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of September 30, 2020
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	44	$	—	$	—	$	—	$	44	$	—
CLOs	1,193		(10)		741		(10)		1,934		(20)
CMBS	533		(27)		16		(4)		549		(31)
Corporate	1,609		(56)		202		(26)		1,811		(82)
Foreign govt./govt. agencies	79		—		—		—		79		—
Municipal	478		(7)		—		—		478		(7)
RMBS	514		(2)		29		—		543		(2)
U.S. Treasuries	28		—		—		—		28		—
Total fixed maturities, AFS in an unrealized loss position	$	4,478	$	(102)	$	988	$	(40)	$	5,466	$	(142)


Unrealized Loss Aging for Fixed Maturities, AFS by Type and Length of Time as of December 31, 2019
	Less Than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
ABS	$	398	$	(3)	$	9	$	—	$	407	$	(3)
CLOs	679		(2)		923		(6)		1,602		(8)
CMBS	538		(7)		20		(6)		558		(13)
Corporate	789		(9)		328		(16)		1,117		(25)
Foreign govt./govt. agencies	101		—		29		—		130		—
Municipal	222		(2)		—		—		222		(2)
RMBS	614		(3)		68		—		682		(3)
U.S. Treasuries	88		—		34		(1)		122		(1)
Total fixed maturities, AFS in an unrealized loss position	$	3,429	$	(26)	$	1,411	$	(29)	$	4,840	$	(55)

Financing Receivable, Allowance for Credit Loss [Table Text Block]


ACL on Mortgage Loans
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
ACL as of beginning of period	$	43	$	—	$	—	$	1
Cumulative effect of accounting changes [1]					19
Adjusted beginning ACL	43		—		19		1
Current period provision (release)	(5)		—		19		(1)



ACL as of September 30,	$	38	$	—	$	38	$	—

[1] Represents the adjustment to the ACL recorded on adoption of accounting guidance for credit losses on January 1, 2020. For further information refer to Note 1 - Basis of Presentation and Significant Accounting Policies.

Loans Credit Quality


Mortgage Loans LTV & DSCR by Origination Year as of September 30, 2020
	2020			2019			2018			2017			2016			2015 & Prior			Total
Loan-to-value	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost		Avg. DSCR	Amortized Cost [1]		Avg. DSCR

65% - 80%	$	8	2.59x	$	248	1.81x	$	248	1.96x	$	80	1.73x	$	61	1.99x	$	165	1.73x	$	810	1.85x
Less than 65%	539		2.49x	672		2.70x	449		1.99x	426		1.89x	226		3.01x	1,377		3.07x	3,689		2.65x
Total mortgage loans	$	547	2.49x	$	920	2.46x	$	697	1.98x	$	506	1.86x	$	287	2.79x	$	1,542	2.93x	$	4,499	2.50x

[1] Amortized cost of mortgage loans excludes ACL of $38.

Mortgage Loans LTV & DSCR

December 31, 2019

Loan-to-value

Amortized Cost

Avg. DSCR

65% - 80%

376

1.53x

Less than 65%

3,839

2.56x

Total mortgage loans

4,215

2.46x


Mortgage Loans by Region
	September 30, 2020				December 31, 2019
	Amortized Cost [1]		Percent of Total		Amortized Cost		Percent of Total
East North Central	$	284	6.3	%	$	270	6.4	%

Middle Atlantic	292		6.5	%	319		7.5	%
Mountain	201		4.5	%	109		2.6	%
New England	397		8.8	%	344		8.2	%
Pacific	989		22.0	%	906		21.5	%
South Atlantic	989		22.0	%	944		22.4	%
West North Central	44		1.0	%	46		1.1	%
West South Central	473		10.5	%	439		10.4	%
Other [2]	830		18.4	%	838		19.9	%
Total mortgage loans	$	4,499	100.0	%	$	4,215	100.0	%

[1] Amortized cost of mortgage loans excludes ACL of $38.

[2]Primarily represents loans collateralized by multiple properties in various regions.


Mortgage Loans by Property Type
	September 30, 2020				December 31, 2019
	Amortized Cost [1]		Percent of Total		Amortized Cost		Percent of Total
Commercial

Industrial	$	1,284	28.5	%	$	1,167	27.7	%

Multifamily	1,493		33.2	%	1,313		31.2	%
Office	755		16.8	%	723		17.2	%
Retail	793		17.6	%	735		17.4	%
Single Family	134		3.0	%	137		3.2	%
Other	40		0.9	%	140		3.3	%
Total mortgage loans	$	4,499	100.0	%	$	4,215	100.0	%

[1] Amortized cost of mortgage loans excludes ACL of $38.

Securities Lending and Repurchase Agreements [Table Text Block]


Securities Lending and Repurchase Agreements
	September 30, 2020		December 31, 2019
	Fair Value		Fair Value
Securities Lending Transactions:
Gross amount of securities on loan	$	74	$	606
Gross amount of associated liability for collateral received [1]	$	76	$	621

Repurchase agreements:


Gross amount of recognized receivables for reverse repurchase agreements	$	14	$	15

[1]Cash collateral received is reinvested in fixed maturities, AFS and short-term investments which are included in the Condensed Consolidated Balance Sheets. Amount includes additional securities collateral received of $0 and $34 which are excluded from the Company's Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019, respectively.