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Investments (Tables)
 3 Months Ended
Mar. 31, 2021
Investments [Abstract]  
Portfolio composition
Portfolio composition
($ in millions)March 31, 2021December 31, 2020
Fixed income securities, at fair value$40,594 $42,565 
Equity securities, at fair value3,154 3,168 
Mortgage loans, net902 746 
Limited partnership interests 6,367 4,563 
Short-term investments, at fair value6,017 6,807 
Other, net3,042 1,691 
Total$60,076 $59,540 
Schedule for fixed income securities at amortized cost, gross unrealized gains and losses and fair value
Amortized cost, gross unrealized gains (losses) and fair value for fixed income securities
($ in millions)Amortized cost, netGross unrealized
Fair
value
GainsLosses
March 31, 2021    
U.S. government and agencies$3,103 $26 $(19)$3,110 
Municipal7,226 310 (36)7,500 
Corporate27,145 1,045 (187)28,003 
Foreign government977 16 (8)985 
ABS934 11 (2)943 
MBS52 1 — 53 
Total fixed income securities$39,437 $1,409 $(252)$40,594 
December 31, 2020    
U.S. government and agencies$2,058 $50 $(1)$2,107 
Municipal7,100 480 (2)7,578 
Corporate29,057 1,986 (26)31,017 
Foreign government921 37 — 958 
ABS840 9 (3)846 
MBS58 1 — 59 
Total fixed income securities$40,034 $2,563 $(32)$42,565 
Schedule for fixed income securities based on contractual maturities
Scheduled maturities for fixed income securities
($ in millions)March 31, 2021
Amortized cost, net Fair value
Due in one year or less$1,279 $1,291 
Due after one year through five years18,216 18,810 
Due after five years through ten years13,464 13,818 
Due after ten years5,492 5,679 
 38,451 39,598 
ABS and MBS986 996 
Total$39,437 $40,594 
Schedule of net investment income
Net investment income
($ in millions)Three months ended March 31,
20212020
Fixed income securities$301 $298 
Equity securities14 10 
Mortgage loans10 9 
Limited partnership interests378 (77)
Short-term investments1 11 
Other41 31 
Investment income, before expense745 282 
Investment expense(37)(36)
Net investment income
$708 $246 
Schedule of realized capital gains and losses by asset type
Realized capital gains (losses) by asset type
($ in millions)Three months ended March 31,
20212020
Fixed income securities$183 $374 
Equity securities164 (510)
Mortgage loans6 (10)
Limited partnership interests4 (86)
Derivatives11 78 
Other58 (8)
Realized capital gains (losses)$426 $(162)
Schedule of realized capital gains and losses by transaction type
Realized capital gains (losses) by transaction type
($ in millions)
Three months ended March 31,
20212020
Sales$246 $388 
Credit losses2 (37)
Valuation of equity investments (1)
167 (591)
Valuation and settlements of derivative instruments11 78 
Realized capital gains (losses)$426 $(162)
(1)Includes valuation of equity securities and certain limited partnership interests where the underlying assets are predominately public equity securities.
Gross realized gains (losses) on sales of fixed income securities
Gross realized gains (losses) on sales of fixed income securities
($ in millions)Three months ended March 31,
20212020
Gross realized gains$245 $435 
Gross realized losses (64)(59)
Valuation changes included in net income for investments
Net appreciation (decline) recognized in net income
($ in millions)Three months ended March 31,
20212020
Equity securities$125 $(417)
Limited partnership interests carried at fair value
141 (28)
Total$266 $(445)
Schedule of credit losses on fixed income securities recognized in earnings
Credit losses recognized in net income
($ in millions)Three months ended March 31,
20212020
Assets
Fixed income securities:  
Corporate$1 $(1)
ABS1 — 
MBS— (1)
Total fixed income securities2 (2)
Mortgage loans6 (9)
Limited partnership interests— (5)
Other investments
Bank loans(6)(20)
Total credit losses by asset type$2 $(36)
Liabilities
Commitments to fund commercial mortgage loans, bank loans and agent loans— (1)
Total $2 $(37)
Schedule of unrealized net capital gains and losses
Unrealized net capital gains and losses included in AOCI
($ in millions)
Fair
value
Gross unrealized
Unrealized net
gains (losses)
March 31, 2021GainsLosses
Fixed income securities$40,594 $1,409 $(252)$1,157 
Short-term investments6,017 — — — 
Derivative instruments— — (3)(3)
Equity method of accounting (“EMA”) limited partnerships (1)
   (1)
Investments classified as held for sale1,562 
Unrealized net capital gains and losses, pre-tax   2,715 
Amounts recognized for:    
Insurance reserves (2)
   (358)
DAC and DSI (3)
   (228)
Reclassification of noncontrolling interest4 
Amounts recognized   (582)
Deferred income taxes   (453)
Unrealized net capital gains and losses, after-tax   $1,680 
December 31, 2020
Fixed income securities$42,565 $2,563 $(32)$2,531 
Short-term investments6,807 — — — 
Derivative instruments — — (3)(3)
EMA limited partnerships
 
 
 
(1)
Investments classified as held for sale2,369 
Unrealized net capital gains and losses, pre-tax   4,896 
Amounts recognized for:   
 
Insurance reserves   (496)
DAC and DSI   (364)
Amounts recognized   (860)
Deferred income taxes   (856)
Unrealized net capital gains and losses, after-tax   $3,180 
(1)Unrealized net capital gains and losses for limited partnership interests represent the Company’s share of EMA limited partnerships’ OCI. Fair value and gross unrealized gains and losses are not applicable.
(2)The insurance reserves adjustment represents the amount by which the reserve balance would increase if the net unrealized gains in the applicable product portfolios were realized and reinvested at lower interest rates, resulting in a premium deficiency. This adjustment primarily relates to structured settlement annuities with life contingencies (a type of immediate fixed annuity), which are now classified as held for sale.
(3)The DAC and DSI adjustment balance represents the amount by which the amortization of DAC and DSI would increase or decrease if the unrealized gains or losses in the respective product portfolios were realized. This adjustment relates to life insurance products, which are now primarily classified as held for sale.
Schedule of change in unrealized net capital gains and losses
Change in unrealized net capital gains (losses)
($ in millions)Three months ended March 31, 2021
Fixed income securities$(1,374)
Short-term investments— 
Derivative instruments— 
EMA limited partnerships— 
Investments classified as held for sale(807)
Total(2,181)
Amounts recognized for: 
Insurance reserves138 
DAC and DSI136 
Reclassification of noncontrolling interest4 
Amounts recognized278 
Deferred income taxes403 
Decrease in unrealized net capital gains and losses, after-tax$(1,500)
Carrying value for limited partnership interests
Carrying value for limited partnership interests
($ in millions)March 31, 2021December 31, 2020
EMAFair ValueTotalEMAFair ValueTotal
Private equity$3,935 $1,295 $5,230 $2,667 $988 $3,655 
Real estate816 68 884 623 74 697 
Other (1)
253 — 253 211 — 211 
Total (2)
$5,004 $1,363 $6,367 $3,501 $1,062 $4,563 
(1)Other consists of certain limited partnership interests where the underlying assets are predominately public equity and debt securities.
(2)Carrying value for limited partnership interests as of March 31, 2021 includes certain investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.
Schedule of other investments by type
Other investments by asset type
($ in millions)March 31, 2021December 31, 2020
Bank loans, net$1,260 $772 
Real estate871 659 
Policy loans164 181 
Agent loans, net607 — 
Derivatives22 20 
Other118 59 
Total (1)
$3,042 $1,691 
(1)Other investments as of March 31, 2021 includes certain real estate, agent loans and other investments which were classified as assets held for sale as of December 31, 2020 and transferred to continuing operations in the first quarter of 2021.
Allowance for credit loss
Rollforward of credit loss allowance for fixed income securities
Three months ended March 31,
($ in millions)20212020
Beginning balance$(3)$— 
Credit losses on securities for which credit losses not previously reported— (4)
Net decreases related to credit losses previously reported2 — 
Reduction of allowance related to sales— — 
Ending balance (1) (2)
$(1)$(4)
(1)Allowance for fixed income securities as of March 31, 2021 comprised $1 million of ABS. Allowance for fixed income securities as of March 31, 2020 comprised $1 million and $3 million of corporate bonds and MBS, respectively.
(2)Includes $1 million and $2 million of credit loss allowance for fixed income securities that are classified as held for sale as of March 31, 2021 and 2020, respectively.
Rollforward of credit loss allowance for mortgage loans
Three months ended March 31,
($ in millions)20212020
Beginning balance$(67)$(3)
Cumulative effect of change in accounting principle— (42)
Net decreases (increases) related to credit losses22 (40)
Write-offs— — 
Ending balance (1)
$(45)$(85)
(1)Includes $31 million and $68 million of credit loss allowance for mortgage loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.
Rollforward of credit loss allowance for bank loans
($ in millions)Three months ended March 31,
20212020
Beginning balance$(67)$— 
Cumulative effect of change in accounting principle— (53)
Net increases related to credit losses(2)(27)
Reduction of allowance related to sales9 1 
Write-offs— — 
Ending balance (1)
$(60)$(79)
(1)Includes $11 million and $22 million of credit loss allowance for bank loans that are classified as held for sale as of March 31, 2021 and 2020, respectively.
Schedule of gross unrealized losses and fair value of available for sale securities by length of time
Gross unrealized losses and fair value by type and length of time held in a continuous unrealized loss position
($ in millions)Less than 12 months12 months or more
Total
unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
Number
of 
issues
Fair
value
Unrealized
losses
March 31, 2021       
Fixed income securities       
U.S. government and agencies108 $2,084 $(19)— $— $— $(19)
Municipal804 1,398 (36)1 5 — (36)
Corporate1,003 6,715 (176)25 121 (11)(187)
Foreign government64 289 (8)— — — (8)
ABS15 79 (2)13 50 — (2)
MBS15 2 — 55 — — — 
Total fixed income securities2,009 $10,567 $(241)94 $176 $(11)$(252)
Investment grade fixed income securities1,821 $9,206 $(207)69 $67 $(1)$(208)
Below investment grade fixed income securities188 1,361 (34)25 109 (10)(44)
Total fixed income securities2,009 $10,567 $(241)94 $176 $(11)$(252)
December 31, 2020       
Fixed income securities       
U.S. government and agencies26 $215 $(1)— $— $— $(1)
Municipal43 116 (2)— — — (2)
Corporate107 730 (21)14 46 (5)(26)
Foreign government7 7 — — — — — 
ABS21 157 (2)12 43 (1)(3)
MBS11 — — 57 — — — 
Total fixed income securities215 $1,225 $(26)83 $89 $(6)$(32)
Investment grade fixed income securities146 $855 $(8)66 $45 $— $(8)
Below investment grade fixed income securities69 370 (18)17 44 (6)(24)
Total fixed income securities215 $1,225 $(26)83 $89 $(6)$(32)
Carrying value of non-impaired fixed and variable rate mortgage loans by debt service coverage ratio distribution
Gross unrealized losses by unrealized loss position and credit quality as of March 31, 2021
($ in millions)
Investment
grade
Below investment gradeTotal
Fixed income securities with unrealized loss position less than 20% of amortized cost, net (1) (2)
$(207)$(34)$(241)
Fixed income securities with unrealized loss position greater than or equal to 20% of amortized cost, net (3) (4)
(1)(10)(11)
Total unrealized losses$(208)$(44)$(252)
(1)Below investment grade fixed income securities include $30 million that have been in an unrealized loss position for less than twelve months.
(2)Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.
(3)No below investment grade fixed income securities have been in an unrealized loss position for a period of twelve or more consecutive months.
(4)Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
Mortgage loans amortized cost by debt service coverage ratio distribution and year of origination
($ in millions)March 31, 2021December 31, 2020
2016 and prior2017201820192020CurrentTotalTotal
Below 1.0$15 $— $— $— $— $— $15 $— 
1.0 - 1.2529 — 13 23 10 — 75 46 
1.26 - 1.50105 36 24 130 — — 295 201 
Above 1.50134 45 119 166 67 — 531 507 
Amortized cost before allowance$283 $81 $156 $319 $77 $— $916 $754 
Allowance(14)(8)
Amortized cost, net$902 $746 
Bank loans amortized cost by credit quality and year of origination
Bank loans amortized cost by credit rating and year of origination
($ in millions)March 31, 2021December 31, 2020
2016 and prior2017201820192020CurrentTotalTotal
BBB$— $5 $7 $11 $8 $29 $60 $38 
BB9 22 30 42 36 172 311 168 
B13 68 86 77 139 389 772 456 
CCC and below11 28 32 55 27 13 166 161 
Amortized cost before allowance$33 $123 $155 $185 $210 $603 $1,309 $823 
Allowance(49)(51)
Amortized cost, net$1,260 $772