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.”


September 30, 2023:	Amortized		Allowance for		Unrealized		Unrealized		Estimated Fair		% of
	Cost		Credit Losses		Gains		Losses		Value		Total
Available-for-sale:
Corporate	$	41,463	$	55	$	170	$	6,075	$	35,503	65.5	%
Canadian government	3,336		—		169		157		3,348		6.2
Japanese government	3,205		—		3		493		2,715		5.0
ABS	4,562		12		16		330		4,236		7.8
CMBS	1,959		1		2		250		1,710		3.2
RMBS	1,172		—		3		145		1,030		1.9
U.S. government	1,346		—		—		286		1,060		2.0
State and political subdivisions	1,242		—		4		199		1,047		1.9
Other foreign government	4,047		—		23		548		3,522		6.5
Total fixed maturity securities	$	62,332	$	68	$	390	$	8,483	$	54,171	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 September 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 September 30, 2023 and December 31, 2022 (dollars in millions):


	September 30, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Fixed maturity securities pledged as collateral	$	588	$	488	$	355	$	292
Fixed maturity securities received as collateral	n/a		$	1,625	n/a		$	1,428
Assets in trust held to satisfy collateral requirements	$	32,645	$	28,354	$	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 September 30, 2023 and December 31, 2022 (dollars in millions).


	September 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	$	1,415	$	1,465	$	1,436	$	1,649
Canadian province of Ontario	1,001		1,014		982		1,068

The amortized cost and estimated fair value of fixed maturity securities classified as available-for-sale as of September 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	$	1,623	$	1,628
Due after one year through five years	10,151		9,779
Due after five years through ten years	11,183		9,987
Due after ten years	31,682		25,801
Structured securities	7,693		6,976
Total	$	62,332	$	54,171


September 30, 2023:			Estimated
	Amortized Cost		Fair Value		% of Total
Finance	$	15,022	$	12,842	36.1	%
Industrial	21,062		18,232		51.4
Utility	5,379		4,429		12.5

Total	$	41,463	$	35,503	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.



	Corporate		ABS		CMBS		Other Foreign Government		Total
Three months ended September 30, 2023:
Balance, beginning of period	$	62	$	12	$	1	$	—	$	75




Additional increases or decreases for credit losses on securities that had an allowance recorded in a previous period	(1)		—		—		—		(1)

Write-offs charged against the allowance	(6)		—		—		—		(6)
Balance, end of period	$	55	$	12	$	1	$	—	$	68
Three months ended September 30, 2022:
Balance, beginning of period	$	43	$	5	$	1	$	6	$	55
Credit losses recognized on securities for which credit losses were not previously recorded	8		(1)		—		—		7

Reductions for securities sold during the period	(3)		—		—		(2)		(5)
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	(1)		—		—		—		(1)


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


	Corporate		ABS		CMBS		Other Foreign Government		Total
Nine months ended September 30, 2023:
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	—		2		—		—		2
Write-offs charged against the allowance	(6)		—		—		—		(6)
Balance, end of period	$	55	$	12	$	1	$	—	$	68
Nine months ended September 30, 2022:
Balance, beginning of year	$	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

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 7,053 and 6,441 fixed maturity securities for which an allowance for credit loss has not been recorded as of September 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
September 30, 2023:	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investment grade securities:
Corporate	$	7,272	$	516	$	23,093	$	5,395	$	30,365	$	5,911
Canadian government	1,303		105		250		52		1,553		157
Japanese government	614		50		2,055		443		2,669		493
ABS	471		18		3,071		299		3,542		317
CMBS	273		12		1,358		232		1,631		244
RMBS	295		14		641		131		936		145
U.S. government	488		28		559		258		1,047		286
State and political subdivisions	120		8		807		191		927		199
Other foreign government	686		29		2,194		451		2,880		480
Total investment grade securities	11,522		780		34,028		7,452		45,550		8,232
Below investment grade securities:
Corporate	357		70		732		93		1,089		163

ABS	—		—		67		11		67		11
CMBS	—		—		2		1		2		1
Other foreign government	4		1		184		67		188		68
Total below investment grade securities	361		71		985		172		1,346		243
Total fixed maturity securities	$	11,883	$	851	$	35,013	$	7,624	$	46,896	$	8,475


	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 September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Fixed maturity securities available-for-sale	$	707	$	591	$	2,035	$	1,683
Equity securities	2		2		5		5
Mortgage loans	84		74		238		223
Policy loans	13		13		39		40
Funds withheld at interest	88		67		240		175
Limited partnerships and real estate joint ventures	41		43		114		281
Short-term investments and cash and cash equivalents	28		7		71		11

Other invested assets	2		3		14		5
Investment income	965		800		2,756		2,423
Investment expense	(43)		(31)		(121)		(90)
Net investment income	$	922	$	769	$	2,635	$	2,333


	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Fixed maturity securities available-for-sale:
Change in allowance for credit losses	$	7	$	3	$	(31)	$	(21)
Impairments on fixed maturities	—		(12)		(1)		(15)
Realized gains on investment activity	12		20		54		65
Realized losses on investment activity	(61)		(106)		(173)		(236)
Net gains (losses) on equity securities	(2)		7		(4)		(16)
Change in mortgage loan allowance for credit losses	(17)		(5)		(23)		(8)
Change in fair value of certain limited partnership investments	25		—		32		29
Other, net	7		7		24		26
Net losses on free-standing derivatives	(98)		(51)		(222)		(251)
Net gains (losses) on embedded derivatives	1		(17)		18		(106)
Total investment related gains (losses), net	$	(126)	$	(154)	$	(326)	$	(533)


	September 30, 2023				December 31, 2022
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Securities borrowing agreements:
Securities borrowed (1)	n/a		$	776	n/a		$	852
Securities pledged as collateral (2)	$	762	$	603	$	859	$	693
Securities lending agreements:
Securities loaned (2)	$	60	$	53	$	59	$	55
Securities received as collateral (3)	n/a		$	66	n/a		$	66
Repurchase/reverse repurchase agreements:
Securities sold (2)	$	1,344	$	1,187	$	898	$	779

Securities purchased (3)	n/a		$	496	n/a		$	619
Cash received (4)	$	551	$	551	$	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.


	September 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	$	—	$	—	$	—	$	37	$	37
Canadian government	—		—		—		—		—





State and political subdivisions	—		—		—		11		11
Other foreign government	—		—		—		5		5
Total	—		—		—		53		53
Repurchase agreements:
Corporate	—		—		—		339		339

Japanese government	—		—		—		138		138
ABS	—		—		53		171		224
CMBS	—		—		59		162		221
RMBS	—		—		8		144		152
U.S. government	—		—		—		13		13

Other foreign government	—		—		—		100		100
Total	—		—		120		1,067		1,187
Total agreements	$	—	$	—	$	120	$	1,120	$	1,240


	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


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

As of September 30, 2023, mortgage loans were geographically dispersed throughout the U.S. with the largest concentrations in California (12.9%), Texas (11.4%) and Washington (7.8%), in addition to loans secured by properties in Canada (3.7%) and the United Kingdom (2.4%). 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, 2023				December 31, 2022
Property type:	Carrying Value		% of Total		Carrying Value		% of Total
Office	$	1,716	23.4	%	$	1,706	25.6	%
Retail	2,445		33.4		2,290		34.4
Industrial	1,820		24.9		1,518		22.8
Apartment	870		11.9		763		11.5
Other commercial	469		6.4		376		5.7
Recorded investment	7,320		100.0	%	6,653		100.0	%
Unamortized balance of loan origination fees and expenses	(15)				(12)
Allowance for credit losses	(74)				(51)
Total mortgage loans	$	7,231			$	6,590


	September 30, 2023				December 31, 2022
	Recorded Investment		% of Total		Recorded Investment		% of Total
Due within five years	$	3,150	42.9	%	$	2,652	39.9	%
Due after five years through ten years	3,248		44.4		2,930		44.0
Due after ten years	922		12.7		1,071		16.1
Total	$	7,320	100.0	%	$	6,653	100.0	%


	Recorded Investment
	Debt Service Ratios						Construction loans
	>1.20x		1.00x – 1.20x		<1.00x				Total		% of Total
September 30, 2023:
Loan-to-Value Ratio
0% – 59.99%	$	3,947	$	301	$	53	$	45	$	4,346	59.3	%
60% – 69.99%	1,929		154		29		—		2,112		28.9
70% – 79.99%	518		35		33		—		586		8.0
80% or greater	105		43		128		—		276		3.8
Total	$	6,499	$	533	$	243	$	45	$	7,320	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
September 30, 2023:
Internal credit quality grade:
High investment grade	$	336	$	686	$	670	$	334	$	520	$	1,851	$	4,397
Investment grade	599		615		281		219		326		608		2,648
Average	—		—		6		18		23		200		247

In or near default	—		—		—		—		—		28		28
Total	$	935	$	1,301	$	957	$	571	$	869	$	2,687	$	7,320


	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

In or near default	—		—		—		—		—		36		36
Total	$	1,284	$	974	$	575	$	879	$	726	$	2,215	$	6,653

During the nine months ended September 30, 2023, the Company modified six mortgage loans for borrowers experiencing financial difficulty providing interest only payments and maturity extensions. The total recorded investment before allowance for credit losses for the modified loans were $68 million as of September 30, 2023. During the nine months ended September 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 September 30, 2022.

During the nine months ended September 30, 2023, the Company converted two mortgage loans totaling $36 million to owned properties as a result of foreclosures. The Company had $41 million and $19 million for mortgage loans that were on nonaccrual status as of September 30, 2023 and 2022, respectively. The Company did not acquire any impaired mortgage loans during the nine months ended September 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 September 30, 2023, $3.5 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.


	September 30, 2023		December 31, 2022
Limited partnerships – equity method	$	930	$	934
Limited partnerships – fair value	818		683
Limited partnerships – cost method	68		49
Real estate joint ventures	744		661
Total limited partnerships and real estate joint ventures	$	2,560	$	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 September 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 September 30, 2023 and December 31, 2022 are as follows (dollars in millions):