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Investments (Tables)

3 Months Ended

Mar. 31, 2020

The following tables provide information relating to investments in fixed maturity securities by type as of March 31, 2020 and December 31, 2019 (dollars in millions):



March 31, 2020:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	29,203	$	26	$	1,294	$	977	$	29,494	60.8	%
Canadian government	2,793		—		1,445		1		4,237		8.7
RMBS	2,241		—		77		27		2,291		4.7
ABS	2,940		—		4		277		2,667		5.5
CMBS	1,841		—		24		56		1,809		3.7
U.S. government	1,398		—		244		—		1,642		3.4
State and political subdivisions	1,071		—		108		10		1,169		2.4
Other foreign government	5,133		7		233		113		5,246		10.8
Total fixed maturity securities	$	46,620	$	33	$	3,429	$	1,461	$	48,555	100.0	%



December 31, 2019:	Amortized		Unrealized		Unrealized		Estimated Fair		% of		Impairments
	Cost		Gains		Losses		Value		Total		in AOCI
Available-for-sale:
Corporate	$	29,205	$	2,269	$	81	$	31,393	61.4	%	$	—
Canadian government	3,016		1,596		—		4,612		9.0		—
RMBS	2,339		62		3		2,398		4.7		—
ABS	2,973		19		14		2,978		5.8		—
CMBS	1,841		61		3		1,899		3.7		—
U.S. government	2,096		57		1		2,152		4.2		—
State and political subdivisions	1,074		93		3		1,164		2.3		—
Other foreign government	4,209		321		5		4,525		8.9		—
Total fixed maturity securities	$	46,753	$	4,478	$	110	$	51,121	100.0	%	$	—

Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block]

The following table includes fixed maturity securities pledged and received as collateral and assets in trust held to satisfy collateral requirements under derivative transactions and certain third-party reinsurance treaties as of March 31, 2020 and December 31, 2019 (dollars in millions):



	March 31, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	142	$	154	$	113	$	116
Fixed maturity securities received as collateral	n/a		1,172		n/a		727
Assets in trust held to satisfy collateral requirements	27,080		27,441		27,290		29,239

Concentration Risk Disclosure [Text Block]

The Company’s exposure to concentrations of credit risk from single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U.S. government and its agencies, as well as the securities disclosed below, as of March 31, 2020 and December 31, 2019 (dollars in millions).



	March 31, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Government of Japan	$	1,660	$	1,672	$	813	$	852
Canadian province of Quebec	1,132		1,986		1,205		2,163
Canadian province of Ontario	941		1,289		1,014		1,379

Investments Classified By Contractual Maturity Date

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of March 31, 2020, are shown by contractual maturity in the table below (dollars in millions). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Structured securities are shown separately in the table below, as they are not due at a single maturity date.



	Amortized Cost		Estimated Fair Value
Available-for-sale:
Due in one year or less	$	1,176	$	1,172
Due after one year through five years	8,125		8,184
Due after five years through ten years	9,629		9,880
Due after ten years	20,668		22,552
Structured securities	7,022		6,767
Total	$	46,620	$	48,555

Fixed Maturity Holdings Industry Types Weighted Average Credit Ratings [Table Text Block]

The tables below show the major sectors of the Company’s corporate fixed maturity holdings as of March 31, 2020 and December 31, 2019 (dollars in millions):



March 31, 2020:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	10,979	$	11,056	37.5	%
Industrial	14,703		14,756		50.0
Utility	3,521		3,682		12.5
Total	$	29,203	$	29,494	100.0	%

December 31, 2019:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	10,896	$	11,653	37.2	%
Industrial	14,692		15,803		50.3
Utility	3,617		3,937		12.5
Total	$	29,205	$	31,393	100.0	%

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

The following table presents the rollforward of the allowance for credit losses in fixed maturity securities by type as of March 31, 2020 (dollars in millions):



	March 31, 2020
	Corporate		Other Foreign Government		Total
Balance, beginning of period	$	—	$	—	$	—
Credit losses recognized on securities for which credit losses were not previously recorded	26		7		33
Balance, end of period	$	26	$	7	$	33

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures

The following table presents the total gross unrealized losses for the 3,102 and 1,072 fixed maturity securities as of March 31, 2020 and December 31, 2019, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in millions):



	March 31, 2020				December 31, 2019
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	1,052	72.0	%	$	76	69.1	%
20% or more for less than six months	409		28.0		20		18.2
20% or more for six months or greater	—		—		14		12.7
Total	$	1,461	100.0	%	$	110	100.0	%

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following tables present the estimated fair values and gross unrealized losses for fixed maturity securities that have estimated fair values below amortized cost as of March 31, 2020 and December 31, 2019 (dollars in millions). These investments are presented by class and grade of security, as well as the length of time the related fair value has remained below amortized cost.



	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
March 31, 2020:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	9,666	$	729	$	93	$	18	$	9,759	$	747
Canadian government	—		—		6		1		6		1
RMBS	1,047		25		41		2		1,088		27
ABS	1,936		203		552		65		2,488		268
CMBS	913		52		21		1		934		53
U.S. government	—		—		—		—		—		—
State and political subdivisions	158		9		12		1		170		10
Other foreign government	1,813		94		7		4		1,820		98
Total investment grade securities	15,533		1,112		732		92		16,265		1,204
Below investment grade securities:
Corporate	1,106		219		66		11		$	1,172	$	230
ABS	15		9		—		—		15		9
CMBS	23		3		—		—		23		3
Other foreign government	150		13		7		2		157		15
Total below investment grade securities	1,294		244		73		13		1,367		257
Total fixed maturity securities	$	16,827	$	1,356	$	805	$	105	$	17,632	$	1,461



	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
December 31, 2019:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	1,936	$	29	$	293	$	7	$	2,229	$	36
Canadian government	—		—		—		—		—		—
RMBS	367		2		84		1		451		3
ABS	773		5		739		9		1,512		14
CMBS	253		3		—		—		253		3
U.S. government	49		1		—		—		49		1
State and political subdivisions	103		2		12		1		115		3
Other foreign government	278		4		—		—		278		4
Total investment grade securities	3,759		46		1,128		18		4,887		64
Below investment grade securities:
Corporate	220		38		100		7		320		45
ABS	—		—		—		—		—		—
CMBS	—		—		—		—		—		—
Other foreign government	—		—		10		1		10		1
Total below investment grade securities	220		38		110		8		330		46
Total fixed maturity securities	$	3,979	$	84	$	1,238	$	26	$	5,217	$	110

Investment Income

Major categories of investment income, net of related expenses, consist of the following (dollars in millions):



	Three months ended March 31,
	2020			2019
Fixed maturity securities available-for-sale	$	480		$	415
Equity securities	2			1
Mortgage loans on real estate	67			60
Policy loans	15			14
Funds withheld at interest	53			62
Short-term investments and cash and cash equivalents	4			7
Other invested assets	(5		)	42
Investment income	616			601
Investment expense	(22		)	(21		)
Investment income, net of related expenses	$	594		$	580

Gain Loss On Investments

Investment related gains (losses), net, consist of the following (dollars in millions):



	Three months ended March 31,
	2020			2019
Fixed maturity securities available-for-sale:
Impairment losses and change in allowance for credit losses	$	(34	)	$	(9	)
Gain on investment activity	27			28
Loss on investment activity	(8		)	(19		)
Net gains (losses) on equity securities	(23		)	4
Other impairment losses and change in mortgage loan provision	(13		)	(2		)
Derivatives and other, net	(234		)	6
Total investment related gains (losses), net	$	(285	)	$	8

Schedule of Repurchase Agreements [Table Text Block]

The following table includes the amount of borrowed securities, securities lent and securities collateral received as part of the securities lending program and repurchased/reverse repurchased securities pledged and received as of March 31, 2020 and December 31, 2019 (dollars in millions).



	March 31, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	325	$	334	$	339	$	369
Securities lending:
Securities loaned	98		99		98		104
Securities received	n/a		107		n/a		107
Repurchase program/reverse repurchase program:
Securities pledged	398		408		356		384
Securities received	n/a		344		n/a		370

Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block]

The following tables present information on the Company’s securities lending and repurchase/reverse repurchase transactions as of March 31, 2020 and December 31, 2019 (dollars in millions). Collateral associated with certain borrowed securities is not included within the tables, as the collateral pledged to each counterparty is the right to reinsurance treaty cash flows.



	March 31, 2020
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate	$	—	$	—	$	—	$	99	$	99
Total	—		—		—		99		99
Repurchase/reverse repurchase transactions:
Corporate	—		—		—		303		303
Other foreign government	—		—		—		105		105
Total	—		—		—		408		408
Total borrowings	$	—	$	—	$	—	$	507	$	507

Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table									$	451
Amounts related to agreements not included in offsetting disclosure									$	56



	December 31, 2019
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending transactions:
Corporate	$	—	$	—	$	—	$	104	$	104
Total	—		—		—		104		104
Repurchase/reverse repurchase transactions:
Corporate	—		—		—		286		286
Other foreign government	—		—		—		98		98
Total	—		—		—		384		384
Total borrowings	$	—	$	—	$	—	$	488	$	488

Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table									$	478
Amounts related to agreements not included in offsetting disclosure									$	10

Disclosure Of Real Estate Holdings By Property Type [Table Text Block]

The distribution of mortgage loans by property type is as follows as of March 31, 2020 and December 31, 2019 (dollars in millions):



	March 31, 2020					December 31, 2019
Property type:	Carrying Value			% of Total		Carrying Value			% of Total
Office building	$	1,783		29.4	%	$	1,771		31.0	%
Retail	1,712			28.2		1,686			29.4
Industrial	1,253			20.7		1,169			20.4
Apartment	872			14.4		766			13.4
Other commercial	443			7.3		335			5.8
Recorded investment	$	6,063		100.0	%	$	5,727		100.0	%
Unamortized balance of loan origination fees and expenses	(10		)			(9		)
Valuation allowances	(39		)			(12		)
Total mortgage loans on real estate	$	6,014				$	5,706

Mortgage Loans Classified By Contractual Maturity Date [Table Text Block]

The maturities of mortgage loans as of March 31, 2020 and December 31, 2019 are as follows (dollars in millions):



	March 31, 2020				December 31, 2019
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	2,011	33.2	%	$	1,841	32.2	%
Due after five years through ten years	3,107		51.2		2,944		51.4
Due after ten years	945		15.6		942		16.4
Total	$	6,063	100.0	%	$	5,727	100.0	%

Mortgage Loan Internal Credit Risk Grade [Table Text Block]

The following tables set forth certain key credit quality indicators of the Company’s recorded investment in mortgage loans as of March 31, 2020 and December 31, 2019 (dollars in millions):



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
March 31, 2020:
Loan-to-Value Ratio
0% - 59.99%	$	3,119	$	80	$	5	$	3,204	52.8	%
60% - 69.99%	2,015		40		—		2,055		33.9
70% - 79.99%	565		12		39		616		10.2
Greater than 80%	101		61		26		188		3.1
Total	$	5,800	$	193	$	70	$	6,063	100.0	%



	Recorded Investment
	Debt Service Ratios
	>1.20x		1.00x - 1.20x		<1.00x		Total		% of Total
December 31, 2019:
Loan-to-Value Ratio
0% - 59.99%	$	3,025	$	52	$	7	$	3,084	53.8	%
60% - 69.99%	1,841		53		11		1,905		33.3
70% - 79.99%	492		13		39		544		9.5
Greater than 80%	96		61		37		194		3.4
Total	$	5,454	$	179	$	94	$	5,727	100.0	%

The following table sets forth credit quality grades by year of origination of the Company’s recorded investment in mortgage loans as of March 31, 2020 (dollars in millions):



	Recorded Investment
	Year of Origination
	2020		2019		2018		2017		2016		Prior		Total
March 31, 2020:
Internal credit quality grade:
High investment grade	$	302	$	675	$	623	$	403	$	603	$	1,177	$	3,783
Investment grade	236		516		317		342		269		422		2,102
Average	—		—		10		25		27		95		157
Watch list	—		—		—		—		—		4		4
In or near default	—		—		—		—		—		17		17
Total	$	538	$	1,191	$	950	$	770	$	899	$	1,715	$	6,063

Financing Receivable, Past Due [Table Text Block]

None of the payments due to the Company on its recorded investment in mortgage loans were delinquent as of March 31, 2020 and December 31, 2019.

Recorded Investment And Allowance For Credit Losses

The following table presents the recorded investment in mortgage loans, by method of measuring impairment, and the related valuation allowances as of March 31, 2020 and December 31, 2019 (dollars in millions):



	March 31, 2020		December 31, 2019
Mortgage loans:
Individually measured for impairment	$	17	$	17
Collectively measured for impairment	6,046		5,710
Recorded investment	$	6,063	$	5,727
Valuation allowances:
Individually measured for impairment	$	—	$	—
Collectively measured for impairment	39		12
Total valuation allowances	$	39	$	12

Allowance For Mortgage Loan And Lease Losses Provision For Loss Net

Information regarding the Company’s loan valuation allowances for mortgage loans for the three months ended March 31, 2020 and 2019 is as follows (dollars in millions):



	Three months ended March 31,
	2020		2019
Balance, beginning of period	$	12	$	11
Adoption of new accounting standard, see Note 13	14		—
Provision (release)	13		—
Balance, end of period	$	39	$	11

Impaired Financing Receivables Table

Information regarding the portion of the Company’s mortgage loans that were impaired as of March 31, 2020 and December 31, 2019 is as follows (dollars in millions):



	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
March 31, 2020:
Impaired mortgage loans with no valuation allowance recorded	$	17	$	17	$	—	$	17
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17	$	17	$	—	$	17
December 31, 2019:
Impaired mortgage loans with no valuation allowance recorded	$	17	$	17	$	—	$	17
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17	$	17	$	—	$	17

The Company’s average investment balance of impaired mortgage loans and the related interest income are reflected in the table below for the periods indicated (dollars in millions):
	Three months ended March 31,
	2020				2019
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	17	$	—	$	24	$	—
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17	$	—	$	24	$	—

(1) Average recorded investment represents the average loan balances as of the beginning of period and all subsequent quarterly end of period balances.

Schedule Of Other Invested Assets [Table Text Block]

Carrying values of these assets as of March 31, 2020 and December 31, 2019 are as follows (dollars in millions):



	March 31, 2020		December 31, 2019
Limited partnership interests and real estate joint ventures	$	1,183	$	1,134
Lifetime mortgages	763		775
Derivatives	252		117
FVO contractholder-directed unit-linked investments	235		260
Other	109		77
Total other invested assets	$	2,542	$	2,363