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.”


June 30, 2023:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	40,751	$	62	$	252	$	4,763	$	36,178	64.3	%
Canadian government	3,395		—		404		47		3,752		6.7
Japanese government	3,315		—		10		279		3,046		5.4
ABS	4,510		12		15		348		4,165		7.4
CMBS	1,932		1		2		234		1,699		3.1
RMBS	1,145		—		3		111		1,037		1.8
U.S. government	1,573		—		1		208		1,366		2.4
State and political subdivisions	1,247		—		7		145		1,109		2.0
Other foreign government	4,317		—		34		467		3,884		6.9
Total fixed maturity securities	$	62,185	$	75	$	728	$	6,602	$	56,236	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 June 30, 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 June 30, 2023 and December 31, 2022 (dollars in millions):


	June 30, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	401	$	352	$	355	$	292
Fixed maturity securities received as collateral	n/a		1,742		n/a		1,428
Assets in trust held to satisfy collateral requirements	32,516		29,259		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 June 30, 2023 and December 31, 2022 (dollars in millions).


	June 30, 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	$	1,432	$	1,668	$	1,436	$	1,649
Canadian province of Ontario	1,014		1,104		982		1,068

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of June 30, 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	$	1,883	$	1,887
Due after one year through five years	10,281		9,970
Due after five years through ten years	11,237		10,257
Due after ten years	31,197		27,221
Structured securities	7,587		6,901
Total	$	62,185	$	56,236


June 30, 2023:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	14,948	$	13,120	36.3	%
Industrial	20,574		18,548		51.2
Utility	5,229		4,510		12.5

Total	$	40,751	$	36,178	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.


Six months ended June 30, 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	44		—		1		—		45
Reductions for securities sold during the period	(10)		—		—		—		(10)
Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	1		2		—		—		3
Balance, end of period	$	62	$	12	$	1	$	—	$	75


Six months ended June 30, 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	18		5		—		1		24

Reductions for securities sold during the period	(6)		—		—		(1)		(7)

Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	5		—		—		2		7


Balance, end of period	$	43	$	5	$	1	$	6	$	55

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 6,456 and 6,441 fixed maturity securities for which an allowance for credit loss has not been recorded as of June 30, 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
June 30, 2023:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	9,095	$	496	$	19,800	$	4,161	$	28,895	$	4,657
Canadian government	436		17		168		30		604		47
Japanese government	245		2		2,154		277		2,399		279
ABS	503		17		3,069		316		3,572		333
CMBS	331		16		1,311		212		1,642		228
RMBS	385		17		532		94		917		111
U.S. government	749		14		596		194		1,345		208
State and political subdivisions	303		13		660		132		963		145
Other foreign government	988		42		1,900		362		2,888		404
Total investment grade securities	13,035		634		30,190		5,778		43,225		6,412
Below investment grade securities:
Corporate	481		21		660		83		1,141		104

ABS	16		1		53		13		69		14

Other foreign government	—		—		183		63		183		63
Total below investment grade securities	497		22		896		159		1,393		181
Total fixed maturity securities	$	13,532	$	656	$	31,086	$	5,937	$	44,618	$	6,593


	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 did not intend to sell, and it was not more likely than not that it would 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 June 30,				Six months ended June 30,
	2023		2022		2023		2022
Fixed maturity securities available-for-sale	$	683	$	559	$	1,328	$	1,092
Equity securities	1		1		3		3
Mortgage loans	80		76		154		149
Policy loans	13		14		26		27
Funds withheld at interest	80		57		152		108
Limited partnerships and real estate joint ventures	19		77		73		238
Short-term investments and cash and cash equivalents	22		2		43		4

Other invested assets	3		—		12		2
Investment income	901		786		1,791		1,623
Investment expense	(44)		(32)		(78)		(59)
Net investment income	$	857	$	754	$	1,713	$	1,564


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Fixed maturity securities available-for-sale:
Change in allowance for credit losses	$	4	$	(13)	$	(38)	$	(24)
Impairments on fixed maturities	—		(2)		(1)		(3)
Realized gains on investment activity	11		34		42		45
Realized losses on investment activity	(37)		(94)		(112)		(130)
Net losses on equity securities	(4)		(15)		(2)		(23)
Change in mortgage loan allowance for credit losses	(9)		(1)		(6)		(3)
Change in fair value of certain limited partnership investments	10		10		7		29
Other, net	15		11		17		19
Net losses on free-standing derivatives	(93)		(114)		(124)		(200)
Net gains (losses) on embedded derivatives	(20)		(56)		17		(89)
Total investment related gains (losses), net	$	(123)	$	(240)	$	(200)	$	(379)


	June 30, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities borrowing agreements:
Securities borrowed (1)	n/a		$	805	n/a		$	852
Securities pledged as collateral (2)	$	795	691		$	859	693
Securities lending agreements:
Securities loaned (2)	60		55		59		55
Securities received as collateral (3)	n/a		66		n/a		66
Repurchase/reverse repurchase agreements:
Securities sold (2)	919		817		898		779

Securities purchased (3)	n/a		498		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.


	June 30, 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	$	—	$	—	$	—	$	39	$	39
Canadian government	—		—		—		5		5





State and political subdivisions	—		—		—		6		6
Other foreign government	—		—		—		5		5
Total	—		—		—		55		55
Repurchase agreements:
Corporate	—		—		—		340		340

Japanese government	—		—		151		—		151
ABS	—		—		—		58		58
CMBS	—		—		—		109		109
RMBS	—		—		—		44		44
U.S. government	—		—		—		13		13

Other foreign government	—		—		—		102		102
Total	—		—		151		666		817
Total agreements	$	—	$	—	$	151	$	721	$	872


	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 June 30, 2023, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (13.3%), Texas (11.8%) and Washington (8.1%), in addition to loans secured by properties in Canada (4.0%) 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.


	June 30, 2023				December 31, 2022
Property type:	Carrying Value		% of Total		Carrying Value		% of Total
Office	$	1,682	23.7	%	$	1,706	25.6	%
Retail	2,367		33.3		2,290		34.4
Industrial	1,717		24.1		1,518		22.8
Apartment	894		12.6		763		11.5
Other commercial	449		6.3		376		5.7
Recorded investment	7,109		100.0	%	6,653		100.0	%
Unamortized balance of loan origination fees and expenses	(14)				(12)
Allowance for credit losses	(57)				(51)
Total mortgage loans	$	7,038			$	6,590


	June 30, 2023				December 31, 2022
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	3,085	43.4	%	$	2,652	39.9	%
Due after five years through ten years	3,058		43.0		2,930		44.0
Due after ten years	966		13.6		1,071		16.1
Total	$	7,109	100.0	%	$	6,653	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
June 30, 2023:
Loan-to-Value Ratio
0% – 59.99%	$	3,908	$	240	$	64	$	40	$	4,252	59.8	%
60% – 69.99%	1,795		219		80		—		2,094		29.5
70% – 79.99%	466		30		18		—		514		7.2
80% or greater	93		43		113		—		249		3.5
Total	$	6,262	$	532	$	275	$	40	$	7,109	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
June 30, 2023:
Internal credit quality grade:
High investment grade	$	146	$	695	$	676	$	334	$	530	$	1,903	$	4,284
Investment grade	473		609		283		219		322		687		2,593
Average	—		—		6		18		23		185		232
Watch list	—		—		—		—		—		—		—
In or near default	—		—		—		—		—		—		—
Total	$	619	$	1,304	$	965	$	571	$	875	$	2,775	$	7,109


	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 six months ended June 30, 2023, the Company modified two mortgage loans for borrowers experiencing financial difficulty providing interest only payments and a maturity extension. The total recorded investment before allowance for credit losses for the modified loans were $17 million as of June 30, 2023. During the six months ended June 30, 2022, the Company restructured three mortgage loans to interest only payments, 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 and met the criteria of Troubled Debt Restructuring (“TDR”) was $77 million as of June 30, 2022.

During the six months ended June 30, 2023, the Company converted two mortgage loans in the total amount of $36 million to owned properties through foreclosure-type transactions. The Company had one mortgage loan in the amount of $7 million that was on a nonaccrual status as of June 30, 2023. The Company had no mortgage loans that were on a nonaccrual status as of June 30, 2022. The Company did not acquire any impaired mortgage loans during the six months ended June 30, 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 June 30, 2023, $3.6 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.


	June 30, 2023		December 31, 2022
Limited partnerships – equity method	$	928	$	934
Limited partnerships – fair value	768		683
Limited partnerships – cost method	62		49
Real estate joint ventures	715		661
Total limited partnerships and real estate joint ventures	$	2,473	$	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

June 30, 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 June 30, 2023 and December 31, 2022 are as follows (dollars in millions):