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.”


September 30, 2022:	Amortized Cost		Allowance for Credit Losses		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total
Available-for-sale:
Corporate	$	38,293	$	43	$	163	$	5,758	$	32,655	64.6	%
Canadian government	3,124		—		503		41		3,586		7.1
RMBS	1,054		—		4		105		953		1.9
ABS	4,165		4		6		444		3,723		7.4
CMBS	1,843		1		3		175		1,670		3.3
U.S. government	1,064		—		3		204		863		1.7
State and political subdivisions	1,254		—		9		177		1,086		2.2
Other foreign government	6,833		4		21		891		5,959		11.8
Total fixed maturity securities	$	57,630	$	52	$	712	$	7,795	$	50,495	100.0	%


December 31, 2021:	Amortized Cost		Allowance for Credit Losses		Unrealized Gains		Unrealized Losses		Estimated Fair Value		% of Total
Available-for-sale:
Corporate	$	35,239	$	26	$	3,084	$	194	$	38,103	62.8	%
Canadian government	3,339		—		1,606		1		4,944		8.1
RMBS	1,020		—		37		7		1,050		1.7
ABS	4,024		—		22		41		4,005		6.6
CMBS	1,790		1		66		6		1,849		3.0
U.S. government	2,082		—		31		8		2,105		3.5
State and political subdivisions	1,191		—		137		5		1,323		2.2
Other foreign government	7,188		4		273		87		7,370		12.1
Total fixed maturity securities	$	55,873	$	31	$	5,256	$	349	$	60,749	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 condensed consolidated balance sheets. Fixed maturity securities received as collateral are held in separate custodial accounts and are not recorded on the Company’s condensed consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge collateral it receives; however, as of September 30, 2022 and December 31, 2021, 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


	September 30, 2022				December 31, 2021
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	414	$	362	$	100	$	103
Fixed maturity securities received as collateral	n/a		1,273		n/a		1,922
Assets in trust held to satisfy collateral requirements	31,060		26,993		28,671		31,173

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 equity included securities of the U.S. government and its agencies as well as the securities disclosed below, as of September 30, 2022 and December 31, 2021 (dollars in millions).


	September 30, 2022				December 31, 2021
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:
Government of Japan	$	2,761	$	2,440	$	3,080	$	3,063
Canadian province of Quebec	1,304		1,646		1,377		2,347
Canadian province of Ontario	964		1,058		1,092		1,451

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of September 30, 2022, 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	$	1,480	$	1,473
Due after one year through five years	9,448		9,138
Due after five years through ten years	11,292		10,015
Due after ten years	28,348		23,523
Structured securities	7,062		6,346
Total	$	57,630	$	50,495


September 30, 2022:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	14,152	$	12,064	36.9	%
Industrial	19,434		16,736		51.3
Utility	4,707		3,855		11.8

Total	$	38,293	$	32,655	100.0	%

December 31, 2021:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	13,101	$	14,045	36.9	%
Industrial	17,857		19,375		50.8
Utility	4,281		4,683		12.3
Total	$	35,239	$	38,103	100.0	%

As discussed in Note 2 – “Significant Accounting Policies and Pronouncements” of the Company’s 2021 Annual Report, allowances for credit losses on fixed maturity securities are recognized in investment related gains (losses), net. The 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 OCI.


	Nine months ended September 30, 2022
	Corporate		ABS		CMBS		Other Foreign Government		Total
Balance, beginning of period	$	26	$	—	$	1	$	4	$	31
Credit losses recognized on securities for which credit losses were not previously recorded	26		4		—		1		31
Reductions for securities sold during the period	(9)		—		—		(3)		(12)
Reductions for securities the Company intends to sell or more likely than not will be required to sell before recovery of its amortized cost	(4)		—		—		—		(4)
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	4		—		—		2		6

Balance, end of period	$	43	$	4	$	1	$	4	$	52


	Nine months ended September 30, 2021
	Corporate		ABS		CMBS		Other Foreign Government		Total
Balance, beginning of period	$	17	$	—	$	3	$	—	$	20
Credit losses recognized on securities for which credit losses were not previously recorded	5		—		1		4		10
Reductions for securities sold during the period	(8)		—		(2)		—		(10)
Reductions for securities the Company intends to sell or more likely than not will be required to sell before recovery of its amortized cost	—		—		—		—		—
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	(2)		—		(1)		—		(3)
Balance, end of period	$	12	$	—	$	1	$	4	$	17

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 value and gross unrealized losses for the 6,618 and 1,862 fixed maturity securities for which an allowance for credit loss has not been recorded as of September 30, 2022 and December 31, 2021, and the estimated fair value had declined and remained below amortized cost (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 continuously remained below amortized cost.


	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
September 30, 2022:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	25,451	$	4,761	$	2,283	$	811	$	27,734	$	5,572
Canadian government	368		36		12		5		380		41
RMBS	678		69		128		36		806		105
ABS	2,333		296		1,054		121		3,387		417
CMBS	1,461		149		83		17		1,544		166
U.S. government	721		190		116		14		837		204
State and political subdivisions	883		161		44		16		927		177
Other foreign government	3,834		509		1,291		290		5,125		799
Total investment grade securities	35,729		6,171		5,011		1,310		40,740		7,481
Below investment grade securities:
Corporate	1,144		118		202		62		1,346		180


ABS	53		12		23		7		76		19
CMBS	22		3		18		3		40		6

Other foreign government	186		28		124		62		310		90
Total below investment grade securities	1,405		161		367		134		1,772		295
Total fixed maturity securities	$	37,134	$	6,332	$	5,378	$	1,444	$	42,512	$	7,776


	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
December 31, 2021:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	4,135	$	86	$	946	$	51	$	5,081	$	137
Canadian government	20		1		—		—		20		1
RMBS	132		3		102		4		234		7
ABS	1,747		22		589		6		2,336		28
CMBS	152		2		35		2		187		4
U.S. government	1,513		6		31		2		1,544		8
State and political subdivisions	109		3		28		2		137		5
Other foreign government	2,237		33		724		37		2,961		70
Total investment grade securities	10,045		156		2,455		104		12,500		260
Below investment grade securities:
Corporate	463		13		97		44		560		57


ABS	—		—		13		13		13		13
CMBS	—		—		—		—		—		—

Other foreign government	136		7		75		10		211		17
Total below investment grade securities	599		20		185		67		784		87
Total fixed maturity securities	$	10,644	$	176	$	2,640	$	171	$	13,284	$	347

The Company has no intention to sell, nor does it expect to be required to sell, the securities outlined in the tables 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 risk-free interest rates and credit spreads.


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Fixed maturity securities available-for-sale	$	591	$	519	$	1,683	$	1,530
Equity securities	2		1		5		4
Mortgage loans	74		81		223		220
Policy loans	13		14		40		41
Funds withheld at interest	67		100		175		279
Short-term investments and cash and cash equivalents	7		1		11		2
Other invested assets – limited partnerships and real estate joint ventures	43		96		281		327
Other invested assets – all other	3		14		5		44
Investment income	800		826		2,423		2,447
Investment expense	(31)		(30)		(90)		(80)
Net investment income	$	769	$	796	$	2,333	$	2,367


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Fixed maturity securities available-for-sale:
Change in allowance for credit losses and impairments	$	(9)	$	(1)	$	(36)	$	2
Realized gains on investment activity	20		45		65		265
Realized losses on investment activity	(106)		(9)		(236)		(52)
Net gains (losses) on equity securities	7		8		(16)		31
Other impairment losses and change in mortgage loan allowance for credit losses	(6)		4		(9)		25
Change in fair value of certain limited partnership investments and other, net	7		27		52		170
Net gains (losses) on derivatives	(47)		(16)		(334)		31
Total investment related gains (losses), net	$	(134)	$	58	$	(514)	$	472


	September 30, 2022			December 31, 2021
	Amortized Cost	Estimated Fair Value		Amortized Cost	Estimated Fair Value
Securities borrowing agreements:
Securities borrowed (1)	n/a	$	630	n/a	$	420
Securities pledged as collateral (2)	545	459		279	290
Securities lending agreements:
Securities loaned (2)	59	55		94	102
Securities received as collateral (3)	n/a	66		n/a	102
Repurchase/reverse repurchase agreements:
Securities pledged (2)	745	629		704	736
Cash (4)	—	—		10	10
Securities received (3)	n/a	620		n/a	728
Cash received (5)	66	66		—	—

(1)Securities borrowed are not reflected on the condensed consolidated balance sheets. Collateral associated with certain borrowed securities is not included within this table as the collateral pledged to the counterparty is the right to reinsurance treaty cash flows.

The following tables present information on the remaining contractual maturity of the Company’s securities lending and repurchase agreements as of September 30, 2022 and December 31, 2021 (dollars in millions):


	September 30, 2022
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 – 90 Days		Greater than 90 Days		Total
Securities lending agreements:
Corporate	$	—	$	—	$	—	$	42	$	42
State and political subdivisions	—		—		—		3		3
Other foreign government	—		—		—		10		10
Total	—		—		—		55		55
Repurchase agreements:
Corporate	—		—		—		278		278
Other foreign government	—		—		118		233		351
Total	—		—		118		511		629
Total agreements	$	—	$	—	$	118	$	566	$	684


	December 31, 2021
	Remaining Contractual Maturity of the Agreements
	Overnight and Continuous		Up to 30 Days		30 – 90 Days		Greater than 90 Days		Total
Securities lending agreements:
Corporate	$	—	$	—	$	—	$	94	$	94
State and political subdivisions	—		—		—		3		3
Other foreign government	—		—		—		5		5
Total	—		—		—		102		102
Repurchase agreements:
Corporate	—		—		—		366		366
Other foreign government	—		—		—		370		370
Total	—		—		—		736		736
Total agreements	$	—	$	—	$	—	$	838	$	838

As of September 30, 2022, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (13.1%), Texas (11.4%) and Washington (8.2%), in addition to loans secured by properties in Canada (3.1%) and United Kingdom (2.3%). The recorded investment in mortgage loans presented below is gross of unamortized deferred loan origination fees and expenses and allowance for credit losses.


	September 30, 2022				December 31, 2021
Property type:	Carrying Value		% of Total		Carrying Value		% of Total
Office	$	1,727	26.1	%	$	1,683	26.6	%
Retail	2,317		35.0		2,090		33.0
Industrial	1,431		21.6		1,249		19.7
Apartment	751		11.4		801		12.7
Other commercial	387		5.9		506		8.0
Recorded investment	6,613		100.0	%	6,329		100.0	%
Unamortized balance of loan origination fees and expenses	(12)				(11)
Allowance for credit losses	(43)				(35)
Total mortgage loans	$	6,558			$	6,283


	September 30, 2022				December 31, 2021
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	2,504	37.8	%	$	2,660	42.0	%
Due after five years through ten years	3,047		46.0		2,593		41.0
Due after ten years	1,062		16.2		1,076		17.0
Total	$	6,613	100.0	%	$	6,329	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
September 30, 2022:
Loan-to-Value Ratio
0% – 59.99%	$	3,334	$	226	$	74	$	27	$	3,661	55.3	%
60% – 69.99%	1,946		181		113		—		2,240		33.9
70% – 79.99%	434		34		35		—		503		7.6
80% or greater	84		—		125		—		209		3.2
Total	$	5,798	$	441	$	347	$	27	$	6,613	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction Loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
December 31, 2021:
Loan-to-Value Ratio
0% – 59.99%	$	3,111	$	238	$	51	$	6	$	3,406	53.8	%
60% – 69.99%	1,906		190		46		—		2,142		33.8
70% – 79.99%	520		41		12		—		573		9.1
80% or greater	148		—		60		—		208		3.3
Total	$	5,685	$	469	$	169	$	6	$	6,329	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 September 30, 2022 and December 31, 2021 (dollars in millions):


	Recorded Investment
	Year of Origination
	2022		2021		2020		2019		2018		Prior		Total
September 30, 2022:
Internal credit quality grade:
High investment grade	$	619	$	697	$	331	$	568	$	417	$	1,538	$	4,170
Investment grade	460		284		245		323		279		629		2,220
Average	—		6		—		26		66		89		187
Watch list	—		—		—		—		—		—		—
In or near default	—		—		—		—		—		36		36
Total	$	1,079	$	987	$	576	$	917	$	762	$	2,292	$	6,613


	Recorded Investment
	Year of Origination
	2021		2020		2019		2018		2017		Prior		Total
December 31, 2021:
Internal credit quality grade:
High investment grade	$	725	$	402	$	645	$	461	$	344	$	1,534	$	4,111
Investment grade	367		272		331		301		296		502		2,069
Average	6		—		27		39		5		32		109
Watch list	—		—		—		—		—		4		4
In or near default	—		—		—		—		—		36		36
Total	$	1,098	$	674	$	1,003	$	801	$	645	$	2,108	$	6,329

The following table presents information regarding the Company’s allowance for credit losses for mortgage loans for the three and nine months ended September 30, 2022 and 2021 (dollars in millions):


	Three months ended September 30,				Nine months ended September 30,
	2022		2021		2022		2021
Balance, beginning of period	$	38	$	45	$	35	$	64
Change in allowance for credit losses	5		(6)		8		(25)
Balance, end of period	$	43	$	39	$	43	$	39

For the nine months ended September 30, 2022, the Company restructured 3 mortgage loans to interest only payments as a result of lower occupancy levels. The total recorded investment before allowance for credit losses for mortgage loans, which were modified and met the criteria of Troubled Debt Restructuring (“TDR”), is $77 million as of September 30, 2022. For the nine months ended September 30, 2021, the Company did not have any significant loans that were modified and met the criteria of a TDR. The Company has a mortgage loan in the amount of $19 million that was on a nonaccrual status as of September 30, 2022. The Company had no mortgage loans that were on a nonaccrual status as of September 30, 2021. The Company did not acquire any impaired mortgage loans during nine months ended September 30, 2022 and 2021.

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 September 30, 2022, $4.0 billion of the funds withheld at interest balance is primarily associated with two clients. 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 and derivative contracts. Other invested assets also includes FHLB common stock and unit-linked investments, which are included in “Other” in the table below. As of September 30, 2022 and December 31, 2021, the allowance for credit losses for lifetime mortgages was not material. The carrying values of other invested assets as of September 30, 2022 and December 31, 2021 are as follows (dollars in millions):


	September 30, 2022		December 31, 2021
Limited partnership interests and real estate joint ventures	$	2,196	$	1,996
Lifetime mortgages	786		758
Derivatives	161		175
Other	103		141
Total other invested assets	$	3,246	$	3,070