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”), Japanese government and agencies (“Japanese government”), asset-backed securities (“ABS”), commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities (“RMBS”), 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”). ABS, CMBS and RMBS are collectively “structured securities.”


March 31, 2023:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	39,621	$	69	$	255	$	4,330	$	35,477	63.3	%
Canadian government	3,345		—		455		45		3,755		6.7
Japanese government	3,749		—		9		315		3,443		6.1
ABS	4,470		10		8		365		4,103		7.3
CMBS	1,882		—		—		212		1,670		3.0
RMBS	1,120		—		2		98		1,024		1.8
U.S. government	1,923		—		6		184		1,745		3.1
State and political subdivisions	1,261		—		9		132		1,138		2.0
Other foreign government	4,123		—		31		424		3,730		6.7
Total fixed maturity securities	$	61,494	$	79	$	775	$	6,105	$	56,085	100.0	%


December 31, 2022:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	38,963	$	27	$	168	$	5,135	$	33,969	64.2	%
Canadian government	3,311		—		381		66		3,626		6.9
Japanese government	3,033		—		4		478		2,559		4.8
ABS	4,324		10		4		440		3,878		7.3
CMBS	1,835		—		—		212		1,623		3.1
RMBS	1,054		—		1		114		941		1.8
U.S. government	1,690		—		4		212		1,482		2.8
State and political subdivisions	1,282		—		10		173		1,119		2.1
Other foreign government	4,171		—		22		489		3,704		7.0
Total fixed maturity securities	$	59,663	$	37	$	594	$	7,319	$	52,901	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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022 (dollars in millions):


	March 31, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	414	$	366	$	355	$	292
Fixed maturity securities received as collateral	n/a		1,506		n/a		1,428
Assets in trust held to satisfy collateral requirements	31,586		28,622		31,510		27,817

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 and the Japanese government and its agencies, as well as the securities disclosed below, as of March 31, 2023 and December 31, 2022 (dollars in millions).


	March 31, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities guaranteed or issued by:

Canadian province of Quebec	$	1,388	$	1,642	$	1,436	$	1,649
Canadian province of Ontario	1,033		1,146		982		1,068

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of March 31, 2023, 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	$	1,899	$	1,849
Due after one year through five years	10,092		9,879
Due after five years through ten years	11,375		10,513
Due after ten years	30,656		27,047
Structured securities	7,472		6,797
Total	$	61,494	$	56,085


March 31, 2023:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	14,732	$	13,043	36.8	%
Industrial	19,945		18,108		51.0
Utility	4,944		4,326		12.2

Total	$	39,621	$	35,477	100.0	%

December 31, 2022:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	14,551	$	12,680	37.3	%
Industrial	19,624		17,257		50.8
Utility	4,788		4,032		11.9
Total	$	38,963	$	33,969	100.0	%

As discussed in Note 2 – “Significant Accounting Policies and Pronouncements” of the Company’s 2022 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.


For the three months ended March 31, 2023:
	Corporate		ABS		CMBS		Other Foreign Government		Total
Balance, beginning of year	$	27	$	10	$	—	$	—	$	37
Credit losses recognized on securities for which credit losses were not previously recorded	43		—		—		—		43
Reductions for securities sold during the period	(3)		—		—		—		(3)
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	2		—		—		—		2
Balance, end of period	$	69	$	10	$	—	$	—	$	79


For the three months ended March 31, 2022:
	Corporate		ABS		CMBS		Other Foreign Government		Total
Balance, beginning of year	$	26	$	—	$	1	$	4	$	31
Credit losses recognized on securities for which credit losses were not previously recorded	6		5		—		—		11

Reductions for securities sold during the period	(1)		—		—		(1)		(2)

Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	2		—		—		—		2


Balance, end of period	$	33	$	5	$	1	$	3	$	42

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 the 6,228 and 6,441 fixed maturity securities for which an allowance for credit loss has not been recorded as of March 31, 2023 and December 31, 2022, 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
March 31, 2023:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	9,861	$	486	$	18,130	$	3,705	$	27,991	$	4,191
Canadian government	395		15		165		30		560		45
Japanese government	379		4		2,291		311		2,670		315
ABS	811		38		2,777		311		3,588		349
CMBS	341		20		1,271		188		1,612		208
RMBS	332		16		513		82		845		98
U.S. government	909		5		606		179		1,515		184
State and political subdivisions	350		10		635		122		985		132
Other foreign government	1,073		38		1,763		325		2,836		363
Total investment grade securities	14,451		632		28,151		5,253		42,602		5,885
Below investment grade securities:
Corporate	550		58		546		79		1,096		$	137

ABS	45		3		46		10		91		13

Other foreign government	—		—		187		61		187		61
Total below investment grade securities	595		61		779		150		1,374		211
Total fixed maturity securities	$	15,046	$	693	$	28,930	$	5,403	$	43,976	$	6,096


	Less than 12 months				12 months or greater				Total
			Gross				Gross				Gross
December 31, 2022:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	21,867	$	2,756	$	6,840	$	2,225	$	28,707	$	4,981
Canadian government	554		42		71		23		625		65
Japanese government	815		86		1,694		392		2,509		478
ABS	1,596		153		1,931		269		3,527		422
CMBS	1,314		144		281		65		1,595		209
RMBS	664		62		181		53		845		115
U.S. government	1,202		64		253		148		1,455		212
State and political subdivisions	819		124		131		50		950		174
Other foreign government	1,942		167		1,026		260		2,968		427
Total investment grade securities	30,773		3,598		12,408		3,485		43,181		7,083
Below investment grade securities:
Corporate	767		87		305		61		1,072		148


ABS	52		6		38		9		90		15


Other foreign government	39		2		164		60		203		62
Total below investment grade securities	858		95		507		130		1,365		225
Total fixed maturity securities	$	31,631	$	3,693	$	12,915	$	3,615	$	44,546	$	7,308

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 March 31,
		2023		2022
Fixed maturity securities available-for-sale		$	645	$	533
Equity securities		2		2
Mortgage loans		74		73
Policy loans		13		13
Funds withheld at interest		72		51
Limited partnerships and real estate joint ventures		54		161
Short-term investments and cash and cash equivalents		21		2

Other invested assets		9		2
Investment income		890		837
Investment expense		(34)		(27)
Net investment income		$	856	$	810


	Three months ended March 31,
		2023		2022
Fixed maturity securities available-for-sale:
Change in allowance for credit losses		$	(42)	$	(11)
Impairments on fixed maturities		(1)		(1)
Realized gains on investment activity		31		11
Realized losses on investment activity		(75)		(36)
Net gains (losses) on equity securities		2		(8)
Change in mortgage loan allowance for credit losses		3		(2)
Change in fair value of certain limited partnership investments		(3)		19
Other, net		2		8
Net gains (losses) on derivatives		6		(119)
Total investment related gains (losses), net		$	(77)	$	(139)


	March 31, 2023			December 31, 2022
	Amortized Cost	Estimated Fair Value		Amortized Cost	Estimated Fair Value
Securities borrowing agreements:
Securities borrowed (1)	n/a	$	930	n/a	$	852
Securities pledged as collateral (2)	922	804		859	693
Securities lending agreements:
Securities loaned (2)	60	56		59	55
Securities received as collateral (3)	n/a	66		n/a	66
Repurchase/reverse repurchase agreements:
Securities sold (2)	1,071	964		898	779

Securities purchased (3)	n/a	629		n/a	619
Cash received (4)	248	248		149	149

(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.


	March 31, 2023
	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	$	—	$	—	$	—	$	40	$	40
Canadian government	—		—		—		5		5





State and political subdivisions	—		—		—		6		6
Other foreign government	—		—		—		5		5
Total	—		—		—		56		56
Repurchase agreements:
Corporate	—		—		—		342		342

Japanese government	—		—		—		290		290
ABS	—		—		—		57		57
CMBS	—		—		—		111		111
RMBS	—		—		—		53		53
U.S. government	—		—		—		13		13

Other foreign government	—		—		—		98		98
Total	—		—		—		964		964
Total agreements	$	—	$	—	$	—	$	1,020	$	1,020


	December 31, 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
Canadian government	—		—		—		5		5





State and political subdivisions	—		—		—		3		3
Other foreign government	—		—		—		5		5
Total	—		—		—		55		55
Repurchase agreements:
Corporate	—		—		—		279		279

Japanese government	—		—		—		278		278
ABS	—		—		—		54		54
CMBS	—		—		—		63		63
RMBS	—		—		—		10		10
U.S. government	—		—		—		—		—

Other foreign government	—		—		—		95		95
Total	—		—		—		779		779
Total agreements	$	—	$	—	$	—	$	834	$	834

As of March 31, 2023, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (12.8%), Texas (12.0%) and Washington (8.0%), in addition to loans secured by properties in Canada (3.5%) and the 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.


	March 31, 2023				December 31, 2022
Property type:	Carrying Value		% of Total		Carrying Value		% of Total
Office	$	1,710	24.8	%	$	1,706	25.6	%
Retail	2,319		33.6		2,290		34.4
Industrial	1,602		23.3		1,518		22.8
Apartment	835		12.1		763		11.5
Other commercial	429		6.2		376		5.7
Recorded investment	6,895		100.0	%	6,653		100.0	%
Unamortized balance of loan origination fees and expenses	(14)				(12)
Allowance for credit losses	(48)				(51)
Total mortgage loans	$	6,833			$	6,590


	March 31, 2023				December 31, 2022
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	2,827	41.0	%	$	2,652	39.9	%
Due after five years through ten years	3,101		45.0		2,930		44.0
Due after ten years	967		14.0		1,071		16.1
Total	$	6,895	100.0	%	$	6,653	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
March 31, 2023:
Loan-to-Value Ratio
0% – 59.99%	$	3,740	$	210	$	82	$	30	$	4,062	58.9	%
60% – 69.99%	1,811		140		70		—		2,021		29.3
70% – 79.99%	529		41		21		—		591		8.6
80% or greater	59		30		132		—		221		3.2
Total	$	6,139	$	421	$	305	$	30	$	6,895	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
December 31, 2022:
Loan-to-Value Ratio
0% – 59.99%	$	3,466	$	215	$	56	$	18	$	3,755	56.4	%
60% – 69.99%	1,894		119		71		—		2,084		31.3
70% – 79.99%	475		49		91		—		615		9.3
80% or greater	81		—		118		—		199		3.0
Total	$	5,916	$	383	$	336	$	18	$	6,653	100.0	%


	Recorded Investment
	Year of Origination
	2023		2022		2021		2020		2019		Prior		Total
March 31, 2023:
Internal credit quality grade:
High investment grade	$	66	$	694	$	676	$	335	$	531	$	1,944	$	4,246
Investment grade	245		599		283		238		306		754		2,425
Average	—		—		6		—		39		160		205
Watch list	—		—		—		—		—		—		—
In or near default	—		—		—		—		—		19		19
Total	$	311	$	1,293	$	965	$	573	$	876	$	2,877	$	6,895


	Recorded Investment
	Year of Origination
	2022		2021		2020		2019		2018		Prior		Total
December 31, 2022:
Internal credit quality grade:
High investment grade	$	698	$	684	$	327	$	561	$	422	$	1,565	$	4,257
Investment grade	586		284		248		279		252		531		2,180
Average	—		6		—		39		52		83		180
Watch list	—		—		—		—		—		—		—
In or near default	—		—		—		—		—		36		36
Total	$	1,284	$	974	$	575	$	879	$	726	$	2,215	$	6,653

During the three months ended March 31, 2023, the Company converted one mortgage loan in the amount of $17 million to an owned property through a deed in lieu of foreclosure. During the three months ended March 31, 2022, the Company restructured three mortgage loans to interest only payments as a result of lower occupancy levels, one of which was paid in full as of December 31, 2022. The total recorded investment before allowance for credit losses for mortgage loans that were modified or met the criteria of Troubled Debt Restructuring (“TDR”) is $77 million as of March 31, 2022. The Company had one mortgage loan in the amount of $19 million that was on a nonaccrual status as of March 31, 2023. The Company had no mortgage loans that were on a nonaccrual status as of March 31, 2022. The Company did not acquire any impaired mortgage loans during the three months ended March 31, 2023 and 2022.

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 March 31, 2023, $3.7 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.


	March 31, 2023		December 31, 2022
Limited partnerships – equity method	$	970	$	934
Limited partnerships – fair value	726		683
Limited partnerships – cost method	54		49
Real estate joint ventures	655		661
Total limited partnerships and real estate joint ventures	$	2,405	$	2,327

Other invested assets include lifetime mortgages and derivative contracts. Other invested assets also includes FHLB common stock, unit-linked investments, and real estate held for investment, which are included in “Other” in the table below. As of March 31, 2023 and December 31, 2022, the allowance for credit losses for lifetime mortgages was not material. The carrying values of other invested assets as of March 31, 2023 and December 31, 2022 are as follows (dollars in millions):