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Investments (Tables)

6 Months Ended

Jun. 30, 2020

The following tables provide information relating to investments in fixed maturity securities by type as of June 30, 2020 and December 31, 2019 (dollars in millions):



June 30, 2020:	Amortized Cost		Allowance for Credit Losses		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Impairments in AOCI
Available-for-sale:
Corporate	$	29,785	$	32	$	3,071	$	254	$	32,570	62.3	%	$	—
Canadian government	2,917		—		1,941		—		4,858		9.3		—
RMBS	1,962		—		104		1		2,065		3.9		—
ABS	2,798		—		20		87		2,731		5.2		—
CMBS	1,850		—		42		41		1,851		3.5		—
U.S. government	1,395		—		244		—		1,639		3.1		—
State and political subdivisions	1,056		—		135		7		1,184		2.3		—
Other foreign government	5,140		1		367		58		5,448		10.4		—
Total fixed maturity securities	$	46,903	$	33	$	5,924	$	448	$	52,346	100.0	%	$	—



December 31, 2019:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total		Impairments 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 June 30, 2020 and December 31, 2019 (dollars in millions):



	June 30, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	136	$	148	$	113	$	116
Fixed maturity securities received as collateral	n/a		1,206		n/a		727
Assets in trust held to satisfy collateral requirements	27,353		29,726		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 June 30, 2020 and December 31, 2019 (dollars in millions).



	June 30, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Government of Japan	$	1,566	$	1,555	$	813	$	852
Canadian province of Quebec	1,187		2,332		1,205		2,163
Canadian province of Ontario	980		1,436		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 June 30, 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	$	1,453	$	1,454
Due after one year through five years	8,028		8,412
Due after five years through ten years	10,013		10,979
Due after ten years	20,799		24,854
Structured securities	6,610		6,647
Total	$	46,903	$	52,346

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 June 30, 2020 and December 31, 2019 (dollars in millions):



June 30, 2020:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	11,189	$	12,127	37.2	%
Industrial	14,962		16,316		50.1
Utility	3,634		4,127		12.7
Total	$	29,785	$	32,570	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 for the six months ended June 30, 2020 (dollars in millions):



	Corporate			Other Foreign Government			Total
Balance, beginning of period	$	—		$	—		$	—
Credit losses recognized on securities for which credit losses were not previously recorded	40			2			42
Reductions for securities sold during the period	(8		)	(1		)	(9		)
Balance, end of period	$	32		$	1		$	33

Investments In Debt And Equity Securities Gross Unrealized Losses Disclosures

The following table presents the total gross unrealized losses for the 1,477 and 1,072 fixed maturity securities as of June 30, 2020 and December 31, 2019, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in millions):



	June 30, 2020				December 31, 2019
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	348	77.7	%	$	76	69.1	%
20% or more for less than six months	91		20.3		20		18.2
20% or more for six months or greater	9		2.0		14		12.7
Total	$	448	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 June 30, 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
June 30, 2020:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	2,359	$	125	$	67	$	9	$	2,426	$	134
RMBS	—		—		28		1		28		1
ABS	1,425		53		558		29		1,983		82
CMBS	690		37		13		1		703		38
U.S. government	—		—		—		—		—		—
State and political subdivisions	59		5		12		2		71		7
Other foreign government	1,073		47		—		—		1,073		47
Total investment grade securities	5,606		267		678		42		6,284		309
Below investment grade securities:
Corporate	780		114		53		6		833		120
ABS	20		5		—		—		20		5
CMBS	23		3		—		—		23		3
Other foreign government	103		8		12		3		115		11
Total below investment grade securities	926		130		65		9		991		139
Total fixed maturity securities	$	6,532	$	397	$	743	$	51	$	7,275	$	448



	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
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 June 30,						Six months ended June 30,
	2020			2019			2020			2019
Fixed maturity securities available-for-sale	$	474		$	428		$	954		$	843
Equity securities	1			1			3			2
Mortgage loans on real estate	66			61			133			120
Policy loans	14			14			29			29
Funds withheld at interest	69			66			122			128
Short-term investments and cash and cash equivalents	2			7			6			14
Other invested assets	41			32			36			74
Investment income	667			609			1,283			1,210
Investment expense	(22		)	(25		)	(44		)	(46		)
Investment income, net of related expenses	$	645		$	584		$	1,239		$	1,164

Gain Loss On Investments

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



	Three months ended June 30,						Six months ended June 30,
	2020			2019			2020			2019
Fixed maturity securities available-for-sale:
Impairment losses and change in allowance for credit losses	$	—		$	—		$	(34	)	$	(9	)
Gain on investment activity	46			20			73			48
Loss on investment activity	(46		)	(7		)	(54		)	(26		)
Net gains (losses) on equity securities	8			3			(15		)	7
Other impairment losses and change in mortgage loan provision	(22		)	(6		)	(35		)	(8		)
Derivatives and other, net	95			2			(139		)	8
Total investment related gains (losses), net	$	81		$	12		$	(204	)	$	20

Schedule of Repurchase Agreements [Table Text Block]

The following table includes the amount of borrowed securities, securities loaned and securities collateral received as part of the securities lending program and repurchased/reverse repurchased securities pledged and received as of June 30, 2020 and December 31, 2019 (dollars in millions).



	June 30, 2020				December 31, 2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	270	$	300	$	339	$	369
Securities lending:
Securities loaned	102		105		98		104
Securities received	n/a		107		n/a		107
Repurchase program/reverse repurchase program:
Securities pledged	449		481		356		384
Securities received	n/a		372		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 June 30, 2020 and December 31, 2019, respectively (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.



	June 30, 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	$	—	$	—	$	—	$	105	$	105
Total	—		—		—		105		105
Repurchase/reverse repurchase transactions:
Corporate	—		—		—		353		353
Other foreign government	—		—		—		128		128
Total	—		—		—		481		481
Total transactions	$	—	$	—	$	—	$	586	$	586

Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table									$	533
Amounts related to agreements not included in offsetting disclosure									$	53



	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 the Company’s recorded investment in mortgage loans by property type as of June 30, 2020 and December 31, 2019 (dollars in millions) is as follows:



	June 30, 2020					December 31, 2019
Property type:	Carrying Value			% of Total		Carrying Value			% of Total
Office	$	1,773		29.4	%	$	1,771		31.0	%
Retail	1,705			28.2		1,686			29.4
Industrial	1,253			20.7		1,169			20.4
Apartment	868			14.4		766			13.4
Other commercial	441			7.3		335			5.8
Recorded investment	6,040			100.0	%	5,727			100.0	%
Unamortized balance of loan origination fees and expenses	(10		)			(9		)
Valuation allowances	(56		)			(12		)
Total mortgage loans on real estate	$	5,974				$	5,706

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

The maturities of the Company’s recorded investment in mortgage loans as of June 30, 2020 and December 31, 2019 are as follows (dollars in millions):



	June 30, 2020				December 31, 2019
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	2,257	37.3	%	$	1,841	32.2	%
Due after five years through ten years	2,854		47.3		2,944		51.4
Due after ten years	929		15.4		942		16.4
Total	$	6,040	100.0	%	$	5,727	100.0	%

Accounts Receivable, Noncurrent, Credit Quality Indicator [Table Text Block]

The following tables set forth certain key credit quality indicators of the Company’s recorded investment in mortgage loans as of June 30, 2020 and December 31, 2019 (dollars in millions):



	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x - 1.20x		<1.00x		Construction Loans		Total		% of Total
June 30, 2020:
Loan-to-Value Ratio
0% - 59.99%	$	3,074	$	114	$	9	$	1	$	3,198	53.0	%
60% - 69.99%	1,923		78		30		—		2,031		33.6
70% - 79.99%	559		60		4		—		623		10.3
80% or greater	101		61		26		—		188		3.1
Total	$	5,657	$	313	$	69	$	1	$	6,040	100.0	%



	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x - 1.20x		<1.00x		Construction Loans		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
80% or greater	96		61		37		—		194		3.4
Total	$	5,454	$	179	$	94	$	—	$	5,727	100.0	%

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table sets forth credit quality grades by year of origination of the Company’s recorded investment in mortgage loans as of June 30, 2020 (dollars in millions):



	Recorded Investment
	Year of Origination
	2020		2019		2018		2017		2016		Prior		Total
June 30, 2020:
Internal credit quality grade:
High investment grade	$	332	$	674	$	622	$	401	$	601	$	1,115	$	3,745
Investment grade	263		517		317		342		271		409		2,119
Average	—		—		9		25		27		94		155
Watch list	—		—		—		—		—		4		4
In or near default	—		—		—		—		—		17		17
Total	$	595	$	1,191	$	948	$	768	$	899	$	1,639	$	6,040

Financing Receivable, Past Due [Table Text Block]

The following table presents the current and past due composition of the Company’s recorded investment in mortgage loans as of June 30, 2020 and December 31, 2019 (dollars in millions):



	June 30, 2020		December 31, 2019
31-60 days past due	$	63	$	—
61-90 days past due	9		—
Greater than 90 days	15		—
Total past due	87		—
Current	5,953		5,727
Total	$	6,040	$	5,727

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 June 30, 2020 and December 31, 2019 (dollars in millions):



	June 30, 2020		December 31, 2019
Mortgage loans:
Individually measured for impairment	$	17	$	17
Collectively measured for impairment	6,023		5,710
Recorded investment	$	6,040	$	5,727
Valuation allowances:
Individually measured for impairment	$	—	$	—
Collectively measured for impairment	56		12
Total valuation allowances	$	56	$	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 six months ended June 30, 2020 and 2019 is as follows (dollars in millions):



	Six months ended June 30,
	2020		2019
Balance, beginning of period	$	12	$	11
Adoption of new accounting standard, see Note 13	14		—
Provision (release)	30		1
Balance, end of period	$	56	$	12

Impaired Financing Receivables Table

Information regarding the portion of the Company’s mortgage loans that were impaired as of June 30, 2020 and December 31, 2019 is as follows (dollars in millions):



	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
June 30, 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 June 30,
	2020				2019
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	17	$	—	$	17	$	—
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17	$	—	$	17	$	—

	Six months ended June 30,
	2020				2019
	Average Recorded Investment⁽¹⁾		Interest Income		Average Recorded Investment⁽¹⁾		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	17	$	—	$	22	$	—
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	17	$	—	$	22	$	—

(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 June 30, 2020 and December 31, 2019 are as follows (dollars in millions):



	June 30, 2020		December 31, 2019
Limited partnership interests and real estate joint ventures	$	1,204	$	1,134
Lifetime mortgages	787		775
Derivatives	205		117
FVO contractholder-directed unit-linked investments	250		260
Other	101		77
Total other invested assets	$	2,547	$	2,363