The Company holds various types of fixed maturity securities available-for-sale and classifies them as corporate securities (“Corporate”), Canadian and Canadian provincial government securities (“Canadian government”), residential mortgage-backed securities (“RMBS”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), U.S. government and agencies (“U.S. government”), state and political subdivisions, and other foreign government, supranational and foreign government-sponsored enterprises (“Other foreign government”). RMBS, ABS and CMBS are collectively “structured securities.”


December 31, 2020:	Amortized Cost		Allowance for Credit Losses		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total
Available-for-sale:
Corporate	$	31,963	$	17	$	4,356	$	94	$	36,208	63.9	%
Canadian government	3,145		—		1,995		—		5,140		9.1
RMBS	1,735		—		84		2		1,817		3.2
ABS	3,099		—		35		42		3,092		5.4
CMBS	1,790		3		102		21		1,868		3.3
U.S. government	1,242		—		196		1		1,437		2.5
State and political subdivisions	1,237		—		157		4		1,390		2.4
Other foreign government	5,337		—		479		33		5,783		10.2
Total fixed maturity securities	$	49,548	$	20	$	7,404	$	197	$	56,735	100.0	%


December 31, 2019:	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total
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	%

The Company enters into various collateral arrangements with counterparties that require both the pledging and acceptance of fixed maturity securities as collateral. Pledged fixed maturity securities are included in fixed maturity securities, available-for-sale in the consolidated balance sheets. Fixed maturity securities received as collateral are held in separate custodial accounts and are not recorded on the Company’s consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge collateral it receives; however, as of December 31, 2020 and 2019, none of the collateral received had been sold or repledged. The Company also holds assets in trust to satisfy collateral requirements under derivative transactions and certain third-party reinsurance treaties. 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 December 31, 2020 and 2019 (dollars in millions):


	2020				2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	148	$	162	$	113	$	116
Fixed maturity securities received as collateral	n/a		1,784		n/a		727
Assets in trust held to satisfy collateral requirements	27,675		31,179		27,290		29,239

The Company monitors its concentrations of financial instruments on an ongoing basis and mitigates credit risk by maintaining a diversified investment portfolio that limits exposure to any one issuer. 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 December 31, 2020 and 2019 (dollars in millions):


	2020				2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Government of Japan	$	1,493	$	1,491	$	813	$	852
Canadian province of Quebec	1,303		2,474		1,205		2,163
Canadian province of Ontario	1,054		1,528		1,014		1,379

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of December 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	$	1,351	$	1,362
Due after one year through five years	8,248		8,797
Due after five years through ten years	10,676		11,956
Due after ten years	22,649		27,843
Structured securities	6,624		6,777
Total	$	49,548	$	56,735


December 31, 2020:	Amortized Cost		Estimated Fair Value		% of Total
Finance	$	11,785	$	13,236	36.6	%
Industrial	16,274		18,435		50.9
Utility	3,904		4,537		12.5
Total	$	31,963	$	36,208	100.0	%

December 31, 2019:	Amortized Cost		Estimated 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	%

As discussed in Note 2 – “Significant Accounting Policies and Pronouncements,” allowances for credit losses on fixed maturity securities are recognized in investment related gains (losses), net on the consolidated statements of income. For these securities, the net amount recognized represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the fixed maturity security prior to the allowance for credit losses. Any remaining difference between the fair value and amortized cost is recognized in AOCI.


	Corporate		CMBS		Other Foreign Government		Total
Balance, beginning of period	$	—	$	—	$	—	$	—
Credit losses recognized on securities for which credit losses were not previously recorded	36		3		2		41
Reductions for securities sold during the period	(19)		—		(2)		(21)
Balance, end of period	$	17	$	3	$	—	$	20

The following table presents the total gross unrealized losses for the 877 and 1,072 fixed maturity securities as of December 31, 2020 and 2019, where the estimated fair value had declined and remained below amortized cost by the indicated amount (dollars in millions):


	2020				2019
	Gross Unrealized Losses		% of Total		Gross Unrealized Losses		% of Total
Less than 20%	$	133	67.5	%	$	76	69.1	%
20% or more for less than six months	42		21.3		20		18.2
20% or more for six months or greater	22		11.2		14		12.7
Total	$	197	100.0	%	$	110	100.0	%

The Company’s determination of whether a decline in value necessitates the recording of an allowance for credit losses includes an analysis of whether the issuer is current on its contractual payments, evaluating whether it is probable that the Company will be able to collect all amounts due according to the contractual terms of the security and analyzing the overall ability of the Company to recover the amortized cost of the investment.

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 December 31, 2020 and 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
December 31, 2020:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
Investment grade securities:
Corporate	$	930	$	29	$	70	$	5	$	1,000	$	34

RMBS	294		2		—		—		294		2
ABS	1,096		17		570		11		1,666		28
CMBS	160		6		—		—		160		6
U.S. government	27		1		—		—		27		1
State and political subdivisions	66		1		16		3		82		4
Other foreign government	973		27		—		—		973		27
Total investment grade securities	3,546		83		656		19		4,202		102
Below investment grade securities:
Corporate	375		49		81		11		456		60


ABS	20		13		4		1		24		14
CMBS	91		15		—		—		91		15

Other foreign government	36		3		28		3		64		6
Total below investment grade securities	522		80		113		15		635		95
Total fixed maturity securities	$	4,068	$	163	$	769	$	34	$	4,837	$	197


	Less than 12 months				12 months or greater				Total
December 31, 2019:	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized 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

The Company has no intention to sell, nor does it expect to be required to sell, the securities outlined in the table above, as of the dates indicated. However, unforeseen facts and circumstances may cause the Company to sell fixed maturity securities in the ordinary course of managing its portfolio to meet certain diversification, credit quality and liquidity guidelines. Changes in unrealized losses are primarily driven by changes in interest rates.


	2020		2019		2018
Fixed maturity securities available-for-sale	$	1,928	$	1,786	$	1,529
Equity securities	6		8		4
Mortgage loans on real estate	282		255		214
Policy loans	56		58		59
Funds withheld at interest	279		297		310
Short-term investments and cash and cash equivalents	7		28		14
Other invested assets	109		184		99
Investment income	2,667		2,616		2,229
Investment expense	(92)		(96)		(90)
Investment income, net of related expenses	$	2,575	$	2,520	$	2,139


	2020		2019		2018
Fixed maturity securities available for sale:
Impairments and change in allowance for credit losses	$	(21)	$	(31)	$	(28)
Gain on investment activity	114		151		65
Loss on investment activity	(82)		(50)		(159)
Net gains (losses) on equity securities	(15)		16		(20)
Other impairment losses and change in mortgage loan provision	(56)		(12)		(12)
Derivatives and other, net	27		17		(16)
Total investment related gains (losses), net	$	(33)	$	91	$	(170)

As of December 31, 2020, the Company held non-income producing securities with amortized costs, net of allowances, of $71 million and estimated fair values of $63 million. As of December 31, 2019, the Company held non-income producing securities with amortized costs of $47 million and estimated fair values of $51 million. Generally, securities are non-income producing when principal or interest is not paid primarily as a result of bankruptcies or credit defaults, but also include securities where amortization has been discontinued.

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


	2020				2019
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Borrowed securities	$	118	$	161	$	339	$	369
Securities lending:
Securities loaned	94		105		98		104
Securities received	n/a		102		n/a		107
Repurchase program/reverse repurchase program:
Securities pledged	653		711		356		384
Securities received	n/a		669		n/a		370

The Company did not hold cash collateral for securities lending and the repurchase program/reverse repurchase programs as of December 31, 2020. The Company held cash collateral for securities lending and the repurchase program/reverse repurchase programs of $1 million as of December 31, 2019. No cash or securities have been pledged by the Company for its securities borrowing program as of December 31, 2020 and 2019.

The following tables present information on the Company’s securities lending and repurchase/reverse repurchase transactions as of December 31, 2020 and 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.


	December 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	$	—	$	—	$	—	$	105	$	105
Total	—		—		—		105		105
Repurchase/reverse repurchase transactions:
Corporate	—		—		—		417		417



Other foreign government	—		—		—		294		294






Total	—		—		—		711		711
Total transactions	$	—	$	—	$	—	$	816	$	816

Gross amount of recognized liabilities for securities lending and repurchase/reverse repurchase transactions in preceding table									$	771
Amounts related to agreements not included in offsetting disclosure									$	45


	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 transactions	$	—	$	—	$	—	$	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

The Company has elected to offset amounts recognized as receivables and payables resulting from the repurchase/reverse repurchase programs. After the effect of offsetting, there was no liability presented on the consolidated balance sheets as of December 31, 2020. After the effect of offsetting, the net amount presented on the consolidated balance sheets was a liability of $1 million as of December 31, 2019. As of December 31, 2020, the Company did not have payables resulting from cash received as collateral associated with a repurchase/reverse repurchase agreements. As of December 31, 2019, the Company recognized payables resulting from cash received as collateral associated with a repurchase/reverse repurchase agreements. Amounts owed to and due from the counterparties may be settled in cash or offset, in accordance with the agreements.

As of December 31, 2020, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (14.6%), Texas (14.1%) and Washington (8.4%) and include loans secured by properties in Canada (3.2%) and United Kingdom (1.3%). The recorded investment in mortgage loans on real estate presented below is gross of unamortized deferred loan origination fees and expenses, and valuation allowances.


	2020				2019
	Carrying Value		Percentage of Total		Carrying Value		Percentage of Total
Property type:
Office	$	1,702	29.0	%	$	1,771	31.0	%
Retail	1,711		29.3		1,686		29.4
Industrial	1,210		20.6		1,169		20.4
Apartment	808		13.8		766		13.4
Other commercial	430		7.3		335		5.8
Recorded investment	5,861		100.0	%	5,727		100.0	%
Unamortized balance of loan origination fees and expenses	(10)				(9)
Valuation allowances	(64)				(12)
Total mortgage loans on real estate	$	5,787			$	5,706


	2020				2019
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	2,276	38.8	%	$	1,841	32.2	%
Due after five years through ten years	2,768		47.3		2,944		51.4
Due after ten years	817		13.9		942		16.4
Total	$	5,861	100.0	%	$	5,727	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x - 1.20x		<1.00x				Total		% of Total
December 31, 2020:
Loan-to-Value Ratio
0% - 59.99%	$	2,774	$	106	$	17	$	12	$	2,909	49.6	%
60% - 69.99%	2,013		62		33		—		2,108		36.0
70% - 79.99%	555		49		13		—		617		10.5
80% or greater	189		21		17		—		227		3.9
Total	$	5,531	$	238	$	80	$	12	$	5,861	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>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
80% or greater	96		61		37		—		194		3.4
Total	$	5,454	$	179	$	94	$	—	$	5,727	100.0	%


	Recorded Investment
	Year of Origination
December 31, 2020:	2020		2019		2018		2017		2016		Prior		Total
Internal credit quality grade:
High investment grade	$	411	$	616	$	493	$	336	$	574	$	1,008	$	3,438
Investment grade	352		496		399		407		249		368		2,271
Average	—		—		—		19		37		55		111
Watch list	—		—		—		—		—		4		4
In or near default	—		—		—		—		—		37		37
Total	$	763	$	1,112	$	892	$	762	$	860	$	1,472	$	5,861


	2020		2019
Mortgage loans:
Individually measured for impairment	$	37	$	17
Collectively measured for impairment	5,824		5,710
Recorded investment	$	5,861	$	5,727
Valuation allowances:
Individually measured for impairment	$	—	$	—
Collectively measured for impairment	64		12
Total valuation allowances	$	64	$	12


	Unpaid Principal Balance		Recorded Investment		Related Allowance		Carrying Value
December 31, 2020:
Impaired mortgage loans with no valuation allowance recorded	$	37	$	37	$	—	$	37
Impaired mortgage loans with valuation allowance recorded	—		—		—		—
Total impaired mortgage loans	$	37	$	37	$	—	$	37
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


	2020				2019				2018
	Average Investment(1)		Interest Income		Average Investment(1)		Interest Income		Average Investment(1)		Interest Income
Impaired mortgage loans with no valuation allowance recorded	$	25	$	1	$	20	$	1	$	24	$	1
Impaired mortgage loans with valuation allowance recorded	—		—		—		—		—		—
Total	$	25	$	1	$	20	$	1	$	24	$	1

The Company did not acquire any impaired mortgage loans during the years ended December 31, 2020 and 2019. The Company had no mortgage loans that were on a nonaccrual status as of December 31, 2020 and 2019. For the year ended December 31, 2020, the Company modified the payment terms of approximately 52 commercial mortgage loans, with a carrying value of approximately $660 million in response to COVID-19. These loans met the criteria established in the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and were not considered a troubled debt restructuring. In accordance with the CARES Act criteria, these loans were not more than 30 days past due at December 31, 2019, and the modifications included deferral or delayed payments of principal or interest on the loan.

The majority of policy loans are associated with one client. These policy loans present no credit risk as the amount of the loan cannot exceed the obligation due to the ceding company upon the death of the insured or surrender of the underlying policy. The provisions of the treaties in force and the underlying policies determine the policy loan interest rates. The Company earns a spread between the interest rate earned on policy loans and the interest rate credited to corresponding liabilities.

As of December 31, 2020, $3.2 billion of the funds withheld at interest balance is associated with one client. For reinsurance agreements written on a modco basis and certain agreements written on a coinsurance funds withheld basis, assets equal to the net statutory reserves are withheld and legally owned and managed by the ceding company and are reflected as funds withheld at interest. In the event of a ceding company’s insolvency, the Company would need to assert a claim on the assets supporting its reserve liabilities. However, the risk of loss to the Company is mitigated by its ability to offset amounts it owes the ceding company for claims or allowances against amounts owed to the Company from the ceding company.

Other invested assets include limited partnership interests, joint ventures (other than operating joint ventures), lifetime mortgages, derivative contracts and fair value option (“FVO”) contractholder-directed unit-linked investments. Other invested assets also includes FHLB common stock, which is included in Other in the table below. The allowance for credit losses for lifetime mortgages as of both December 31, 2020 and 2019, was $2 million. Carrying values of these assets as of December 31, 2020 and 2019 are as follows (dollars in millions):


	2020		2019
Limited partnership interests and real estate joint ventures	$	1,367	$	1,134
Lifetime mortgages	935		775
Derivatives	140		117
FVO contractholder-directed unit-linked investments	289		260
Other	98		77
Total other invested assets	$	2,829	$	2,363