v3.24.3
Investments
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Our fixed maturity securities investments have been designated as available-for-sale ("AFS"), and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in Accumulated Other Comprehensive Income ("AOCI"), net of deferred income taxes. Our preferred and equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments as of September 30, 2024 and December 31, 2023 are summarized as follows:
September 30, 2024
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$15,986 $(12)$264 $(275)$15,963 
Commercial mortgage-backed securities5,359 (49)61 (192)5,179 
Corporates23,673 (5)396 (2,092)21,972 
Hybrids609 — 6 (19)596 
Municipals1,682 — 20 (187)1,515 
Residential mortgage-backed securities2,617 (1)61 (77)2,600 
U.S. Government800 — 9 (6)803 
Foreign Governments344 — 5 (37)312 
Total available-for-sale securities$51,070 $(67)$822 $(2,885)$48,940 
December 31, 2023
 Amortized CostAllowance for Expected Credit LossesGross Unrealized GainsGross Unrealized LossesFair Value
Available-for-sale securities (In millions)
Asset-backed securities$14,631 $(11)$191 $(469)$14,342 
Commercial mortgage-backed/asset-backed securities4,797 (22)23 (323)4,475 
Corporates20,133 (6)186 (2,417)17,896 
Hybrids668 — 3 (53)618 
Municipals1,826 — 14 (229)1,611 
Residential mortgage-backed securities2,507 (3)29 (104)2,429 
U.S. Government679 — 8 (9)678 
Foreign Governments365 — 3 (44)324 
Total available-for-sale securities$45,606 $(42)$457 $(3,648)$42,373 

Securities held on deposit with various state regulatory authorities had a fair value of $150 million and $141 million as of September 30, 2024 and December 31, 2023, respectively.
As of September 30, 2024 and December 31, 2023, the Company held $29 million and $47 million, respectively, of investments that were non-income producing for a period greater than twelve months.
As of September 30, 2024 and December 31, 2023, the Company's accrued interest receivable balance was $531 million and $481 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the unaudited Condensed Consolidated Balance Sheets.
In accordance with our FHLB agreements, the investments supporting the funding agreement liabilities are pledged as collateral to secure the FHLB funding agreement liabilities and are not available to us for general purposes. The collateral investments had a fair value of $5,123 million and $4,345 million as of September 30, 2024 and December 31, 2023, respectively.
The amortized cost and fair value of fixed maturity securities by contractual maturities, as applicable, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations.
September 30, 2024December 31, 2023
(In millions)(In millions)
Amortized Cost Fair ValueAmortized Cost Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less$890 $885 $703 $687 
Due after one year through five years4,996 4,985 4,320 4,209 
Due after five years through ten years4,975 4,981 3,195 3,048 
Due after ten years16,247 14,347 15,453 13,183 
Subtotal27,108 25,198 23,671 21,127 
Other securities, which provide for periodic payments:
Asset-backed securities15,986 15,963 14,631 14,342 
Commercial mortgage-backed securities5,359 5,179 4,797 4,475 
Residential mortgage-backed securities2,617 2,600 2,507 2,429 
Subtotal23,962 23,742 21,935 21,246 
Total fixed maturity available-for-sale securities$51,070 $48,940 $45,606 $42,373 

Allowance for Expected Credit Loss
We regularly review AFS securities for declines in fair value that we determine to be credit related. For our fixed maturity securities, we generally consider the following in determining whether our unrealized losses are credit related, and if so, the magnitude of the credit loss:
•The extent to which the fair value is less than the amortized cost basis;
•The reasons for the decline in value (credit event, currency or interest-rate related, including general credit spread widening);
•The financial condition of and near-term prospects of the issuer (including issuer's current credit rating and the probability of full recovery of principal based upon the issuer's financial strength);
•Current delinquencies and nonperforming assets of underlying collateral;
•Expected future default rates;
•Collateral value by vintage, geographic region, industry concentration or property type;
•Subordination levels or other credit enhancements as of the balance sheet date as compared to origination; and
•Contractual and regulatory cash obligations and the issuer's plans to meet such obligations.
We recognize an allowance for current expected credit losses on fixed maturity securities in an unrealized loss position when it is determined, using the factors discussed above, a component of the unrealized loss is related to credit. We measure the credit loss using a discounted cash flow model that utilizes the single best estimate cash flow and the recognized credit loss is limited to the total unrealized loss on the security (i.e., the fair value floor). Cash flows are discounted using the implicit yield of bonds at their time of purchase and the current book yield for asset and mortgage-backed securities as well as variable rate securities. We recognize the expected credit losses in Recognized gains and losses, net in the unaudited Condensed Consolidated Statements of Earnings, with an offset for the amount of non-credit impairments recognized in AOCI. We do not measure a credit loss allowance on accrued investment income because we write-off accrued interest through Interest and investment income when collectability concerns arise.
We consider the following in determining whether write-offs of a security’s amortized cost are necessary:
• We believe amounts related to securities have become uncollectible;
• We intend to sell a security; or
• It is more likely than not that we will be required to sell a security prior to recovery.
If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, we will write down the security to current fair value, with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. If we do not intend to sell a fixed maturity security or it is more likely than not that we will not be required to sell a fixed maturity security before recovery of its amortized cost basis but believe amounts related to a security are uncollectible (generally based on proximity to expected credit loss), an impairment is deemed to have occurred and the amortized cost is written down to the estimated recovery value with a corresponding charge, net of any amount previously recognized as an allowance for expected credit loss, to Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI. As of September 30, 2024 and December 31, 2023, our allowance for expected credit losses for AFS securities was $67 million and $42 million, respectively.
The fair value and gross unrealized losses of AFS securities, excluding securities in an unrealized loss position with an allowance for expected credit loss, aggregated by investment category and duration of fair value below amortized cost as of September 30, 2024 and December 31, 2023 were as follows:
September 30, 2024
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities(In millions)
Asset-backed securities$583 $(19)$3,447 $(237)$4,030 $(256)
Commercial mortgage-backed securities209 (5)1,682 (168)1,891 (173)
Corporates1,382 (8)10,698 (2,084)12,080 (2,092)
Hybrids47 (1)393 (18)440 (19)
Municipals82 (1)1,089 (186)1,171 (187)
Residential mortgage-backed securities188 (3)447 (68)635 (71)
U.S. Government268 (1)130 (5)398 (6)
Foreign Government23 (2)170 (36)193 (38)
Total available-for-sale securities$2,782 $(40)$18,056 $(2,802)$20,838 $(2,842)
Total number of available-for-sale securities in an unrealized loss position less than twelve months585 
Total number of available-for-sale securities in an unrealized loss position twelve months or longer2,393
Total number of available-for-sale securities in an unrealized loss position 2,978 
December 31, 2023
Less than 12 months12 months or longerTotal
Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses		Fair ValueGross Unrealized
Losses
Available-for-sale securities(In millions)
Asset-backed securities$1,707 $(56)$5,835 $(404)$7,542 $(460)
Commercial mortgage-backed securities819 (53)1,922 (235)2,741 (288)
Corporates2,387 (134)10,739 (2,283)13,126 (2,417)
Hybrids60 (2)483 (51)543 (53)
Municipals399 (49)920 (179)1,319 (228)
Residential mortgage-backed securities336 (5)662 (89)998 (94)
U.S. Government84 — 159 (9)243 (9)
Foreign Government49 (3)188 (41)237 (44)
Total available-for-sale securities$5,841 $(302)$20,908 $(3,291)$26,749 $(3,593)
Total number of available-for-sale securities in an unrealized loss position less than twelve months1,035
Total number of available-for-sale securities in an unrealized loss position twelve months or longer2,846
Total number of available-for-sale securities in an unrealized loss position 3,881 

The unrealized losses as of September 30, 2024 and December 31, 2023 were caused by higher treasury rates compared to those at the time of the F&G acquisition or purchase of the security if later. For securities in an unrealized loss position as of September 30, 2024, our allowance for expected credit loss was $67 million. We believe the unrealized loss position for which we have not recorded an allowance for expected credit loss as of September 30, 2024 was primarily attributable to interest rate increases, near-term illiquidity, and other macroeconomic uncertainties as opposed to issuer specific credit concerns.
Mortgage Loans
Our mortgage loans are collateralized by commercial and residential properties.
Commercial Mortgage Loans
Commercial mortgage loans (“CMLs”) represented approximately 4% and 5% of our total investments as of September 30, 2024 and December 31, 2023, respectively. The mortgage loans in our investment portfolio are generally comprised of high quality commercial first lien and mezzanine real estate loans. Mortgage loans are primarily on income producing properties including industrial properties, retail buildings, multifamily properties, and office buildings. We diversify our CML portfolio by geographic region and property type to attempt to reduce concentration risk. We continuously evaluate CMLs based on relevant current information to ensure properties are performing at a consistent and acceptable level to secure the related debt. The distribution of CMLs, gross of valuation allowances, by property type and geographic region is reflected in the following tables:
September 30, 2024December 31, 2023
Gross Carrying Value% of TotalGross Carrying Value% of Total
Property Type:(In millions)(In millions)
Hotel$17 1 %$18 1 %
Industrial617 24 616 24 
Mixed Use11 — 11 — 
Multifamily1,006 39 1,012 40 
Office356 14 316 13 
Retail99 4 102 4 
Student Housing 83 3 83 3 
Other401 15 392 15 
Total commercial mortgage loans, gross of valuation allowance
$2,590 100 %$2,550 100 %
Allowance for expected credit loss(18)(12)
Total commercial mortgage loans, net of valuation allowance
$2,572 $2,538 
U.S. Region:
East North Central$98 4 %$151 6 %
East South Central75 3 75 3 
Middle Atlantic354 14 354 14 
Mountain409 16 352 14 
New England164 6 168 6 
Pacific713 27 766 30 
South Atlantic595 23 563 22 
West North Central22 1 4 — 
West South Central160 6 117 5 
Total commercial mortgage loans, gross of valuation allowance
$2,590 100 %$2,550 100 %
Allowance for expected credit loss(18)(12)
Total commercial mortgage loans, net of valuation allowance
$2,572 $2,538 
CMLs segregated by aging of the loans and charge offs (by year of origination) as of September 30, 2024 and December 31, 2023, were as follows, gross of valuation allowances:
September 30, 2024
Amortized Cost by Origination Year
20242023202220212020PriorTotal
Commercial mortgages(In millions)
Current (less than 30 days past due)$140 $221 $289 $1,253 $469 $209 $2,581 
30-89 days past due— — — — — 9 9 
90 days or more past due— — — — — — — 
Total CMLs$140 $221 $289 $1,253 $469 $218 $2,590 
Charge offs$— $— $— $— $— $— $— 
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
Commercial mortgages(In millions)
Current (less than 30 days past due)$213 $288 $1,256 $512 $— $259 $2,528 
30-89 days past due— — — — — — — 
90 days or more past due— — — — — — — 
Total CMLs (a)$213 $288 $1,256 $512 $— $259 $2,528 
Charge offs$— $— $— $— $— $3 $3 
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million.
Loan-to-value (“LTV”) and debt service coverage (“DSC”) ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.00 indicates that a property’s operations do not generate sufficient income to cover debt payments. We normalize our DSC ratios to a 25 year amortization period for purposes of our general loan allowance evaluation.
The following tables present the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated LTV ratios, gross of valuation allowances as of September 30, 2024 and December 31, 2023:
Debt-Service Coverage RatiosTotal Amount% of TotalEstimated Fair Value% of Total
>1.251.00 - 1.25<1.00
September 30, 2024(In millions)
LTV Ratios:
Less than 50.00%$499 $8 $9 $516 20 %$501 21 %
50.00% to 59.99%749 59 12 820 31 752 32 
60.00% to 74.99%1,182 57 — 1,239 48 1,074 46 
75.00% to 84.99%— 6 9 15 1 15 1 
CMLs$2,430 $130 $30 $2,590 100 %$2,342 100 %
December 31, 2023
LTV Ratios:
Less than 50.00%$519 $4 $10 $533 21 %$510 23 %
50.00% to 59.99%764 — — 764 30 679 30 
60.00% to 74.99%1,160 56 — 1,216 48 1,028 46 
75.00% to 84.99%— 6 9 15 1 14 1 
CMLs (a)$2,443 $66 $19 $2,528 100 %$2,231 100 %
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million.
September 30, 2024
Amortized Cost by Origination Year
20242023202220212020PriorTotal
Commercial mortgages(In millions)
LTV
Less than 50.00%$58 $93 $18 $74 $189 $84 $516 
50.00% to 59.99%59 53 149 267 158 134 820 
60.00% to 74.99%23 69 113 912 122 — 1,239 
75.00% to 84.99%— 6 9 — — — 15 
Total CMLs$140 $221 $289 $1,253 $469 $218 $2,590 
Commercial mortgages
DSCR
Greater than 1.25x$72 $161 $278 $1,241 $469 $209 $2,430 
1.00x - 1.25x67 60 3 — — — 130 
Less than 1.00x1 — 8 12 — 9 30 
Total CMLs$140 $221 $289 $1,253 $469 $218 $2,590 
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
Commercial mortgages(In millions)
LTV
Less than 50.00%$85 $17 $77 $232 $— $122 $533 
50.00% to 59.99%53 149 267 158 — 137 764 
60.00% to 74.99%69 113 912 122 — — 1,216 
75.00% to 84.99%6 9 — — — — 15 
Total CMLs (a)$213 $288 $1,256 $512 $— $259 $2,528 
Commercial mortgages
DSCR
Greater than 1.25x$154 $276 $1,256 $512 $— $245 $2,443 
1.00x - 1.25x59 3 — — — 4 66 
Less than 1.00x— 9 — — — 10 19 
Total CMLs (a)$213 $288 $1,256 $512 $— $259 $2,528 
(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million.
We recognize a mortgage loan as delinquent when payments on the loan are greater than 30 days past due. At September 30, 2024, we had one CML that was delinquent in principal or interest payments as shown in the risk rating exposure table above compared to none at December 31, 2023.
Residential Mortgage Loans
Residential mortgage loans (“RMLs”) represented approximately 5% of our total investments as of September 30, 2024 and December 31, 2023. Our RMLs are primarily closed end, amortizing loans and 100% of the properties are located in the United States. We diversify our RML portfolio by state to attempt to reduce concentration risk. The distribution of RMLs by state with highest-to-lowest concentration are reflected in the following tables, gross of valuation allowances:
September 30, 2024
Amortized Cost% of Total
U.S. State:(In millions)
Florida$160 5 %
All other states (a)2,945 95 
      Total RMLs, gross of valuation allowance3,105 100 %
            Allowance for expected credit loss(51)
      Total RMLs, net of valuation allowance$3,054 
(a)     The individual concentration of each state is less than 5% as of September 30, 2024.
December 31, 2023
Amortized Cost% of Total
U.S. State:(In millions)
Florida$163 6 %
New York129 5 
Texas129 5 
All other states (a)2,431 84 
      Total RMLs, gross of valuation allowance2,852 100 %
            Allowance for expected credit loss
(54)
      Total RMLs, net of valuation allowance$2,798 
(a)     The individual concentration of each state is less than 5% as of December 31, 2023.
RMLs have a primary credit quality indicator of either a performing or nonperforming loan. We define non-performing RMLs as those that are 90 or more days past due or in non-accrual status, which is assessed monthly. The credit quality of RMLs as of September 30, 2024 and December 31, 2023, was as follows:
September 30, 2024December 31, 2023
Amortized Cost% of TotalAmortized Cost% of Total
Performance indicators:(In millions)(In millions)
Performing$3,031 98 %$2,795 98 %
Non-performing74 2 57 2 
Total RMLs, gross of valuation allowance3,105 100 %2,852 100 %
Allowance for expected loan loss(51)(54)
Total RMLs, net of valuation allowance$3,054 $2,798 
There were no charge offs recorded by RMLs during the nine months ended September 30, 2024 or during the year ended December 31, 2023. RMLs segregated by aging of the loans (by year of origination) as of September 30, 2024 and December 31, 2023, were as follows, gross of valuation allowances:
September 30, 2024
Amortized Cost by Origination Year
20242023202220212020PriorTotal
Residential mortgages(In millions)
Current (less than 30 days past due)$387 $372 $928 $822 $168 $317 $2,994 
30-89 days past due6 3 9 8 4 7 37 
90 days or more past due— 2 9 28 10 25 74 
Total residential mortgages$393 $377 $946 $858 $182 $349 $3,105 
December 31, 2023
Amortized Cost by Origination Year
20232022202120202019PriorTotal
Residential mortgages(In millions)
Current (less than 30 days past due)$373 $985 $854 $192 $183 $192 $2,779 
30-89 days past due— 4 7 3 — 2 16 
90 days or more past due— 6 16 13 21 1 57 
Total residential mortgages$373 $995 $877 $208 $204 $195 $2,852 
    Non-accrual loans by amortized cost as of September 30, 2024 and December 31, 2023, were as follows:
September 30, 2024December 31, 2023
Amortized cost of loans on non-accrual(In millions)
Residential mortgage:$74 $57 
Commercial mortgage:— — 
Total non-accrual mortgages$74 $57 
    
Immaterial interest income was recognized on non-accrual financing receivables for the three and nine months ended September 30, 2024 and 2023.
It is our policy to cease to accrue interest on loans that are delinquent for 90 days or more. For loans less than 90 days delinquent, interest is accrued unless it is determined that the accrued interest is not collectible. If a loan becomes 90 days or more delinquent, it is our general policy to initiate foreclosure proceedings unless a workout arrangement to bring the loan current is in place. As of September 30, 2024 and December 31, 2023, we had $74 million and $57 million, respectively, of mortgage loans that were over 90 days past due.
As of September 30, 2024 and December 31, 2023, we had $73 million and $41 million, respectively, of residential mortgage loans that were in the process of foreclosure.
Under certain circumstances, modifications are granted to mortgage loans. Generally, the types of concessions may include interest rate reduction, term extension, payment deferrals, principal forgiveness, or a combination of these concessions. We had an immaterial amount of mortgage loans modified during the three and nine month periods ended September 30, 2024 and 2023.

Allowance for Expected Credit Loss
We estimate expected credit losses for our commercial and residential mortgage loan portfolios using a probability of default/loss given default model. Significant inputs to this model include, where applicable, the loans' current performance, underlying collateral type, location, contractual life, LTV, DSC and Debt to Income or FICO. The model projects losses using a two year reasonable and supportable forecast and then reverts over a three year period to market-wide historical loss experience. Changes in our allowance for expected credit losses on mortgage loans are recognized in Recognized gains and losses, net in the accompanying unaudited Condensed Consolidated Statements of Earnings.

The allowances for our mortgage loan portfolio are summarized as follows:
Three months ended September 30, 2024
Nine months ended September 30, 2024
(In millions)(In millions)
Residential MortgageCommercial MortgageTotalResidential MortgageCommercial MortgageTotal
Beginning Balance$(50)$(14)$(64)$(54)$(12)$(66)
Provision (expense) benefit for loan losses(1)(4)(5)3 (6)(3)
Ending Balance$(51)$(18)$(69)$(51)$(18)$(69)
Three months ended September 30, 2023
Nine months ended September 30, 2023
(In millions)(In millions)
Residential MortgageCommercial MortgageTotalResidential MortgageCommercial MortgageTotal
Beginning Balance
$(51)$(13)$(64)$(32)$(10)$(42)
Provision (expense) benefit for loan losses2 (2)— (17)(5)(22)
Ending Balance
$(49)$(15)$(64)$(49)$(15)$(64)
An allowance for expected credit loss is not measured on accrued interest income for CMLs as we have a process to write-off interest on loans that enter into non-accrual status (90 days or more past due). Allowances for expected credit losses are measured on accrued interest income for RMLs and were immaterial for the three and nine months ended September 30, 2024 and 2023.
Interest and Investment Income
The major sources of Interest and investment income reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In millions)(In millions)
Fixed maturity securities, available-for-sale$583 $493 $1,679 $1,405 
Equity securities8 8 26 24 
Preferred securities7 12 25 39 
Mortgage loans69 59 200 167 
Invested cash and short-term investments72 39 172 106 
Limited partnerships84 69 234 171 
Tax deferred property exchange income36 44 102 128 
Other investments32 25 88 63 
Gross investment income891 749 2,526 2,103 
Investment expense(76)(63)(218)(188)
Interest and investment income$815 $686 $2,308 $1,915 
Interest and investment income is shown net of amounts attributable to certain funds withheld reinsurance agreements, which is passed along to the reinsurer in accordance with the terms of these agreements. Interest and investment income attributable to these agreements, and thus excluded from the totals in the table above, was $181 million and $102 million for the three months ended September 30, 2024 and 2023, respectively, and $463 million and $236 million for the nine months ended September 30, 2024 and 2023, respectively.
Recognized Gains and Losses, Net
Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In millions)(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities$(1)$(32)$3 $(137)
Net realized/unrealized gains (losses) on equity securities (1)48 (33)48 (37)
Net realized/unrealized gains (losses) on preferred securities (2)17 1 29 (7)
Net realized/unrealized gains (losses) on other invested assets3 9 73 (20)
Change in allowance for expected credit losses— (7)(32)(30)
Derivatives and embedded derivatives:
Realized gains (losses) on certain derivative instruments30 (30)65 (184)
Unrealized gains (losses) on certain derivative instruments347 (297)450 14 
Change in fair value of reinsurance related embedded derivatives (3)(178)36 (186)34 
Change in fair value of other derivatives and embedded derivatives3 (3)6 — 
Realized gains (losses) on derivatives and embedded derivatives202 (294)335 (136)
Recognized gains and losses, net$269 $(356)$456 $(367)
(1) Includes net valuation gains (losses) of $31 million and $(22) million for the three months ended September 30, 2024 and 2023, respectively, and net valuation losses of $(42) million and $(12) million for the nine months ended September 30, 2024 and 2023, respectively.
(2) Includes net valuation gains of $18 million and $2 million for the three months ended September 30, 2024 and 2023, respectively, and net valuation gains of $30 million and $52 million for the nine months ended September 30, 2024 and 2023, respectively.
(3) Change in fair value of reinsurance related embedded derivatives is due to activity related to the reinsurance treaties.
Recognized gains and losses, net is shown net of amounts attributable to certain funds withheld reinsurance agreements, which are passed along to the reinsurer in accordance with the terms of these agreements. Recognized gains and (losses) attributable to these agreements, and thus excluded from the totals in the table above, were $177 million and $(186) million for the three and nine months ended September 30, 2024, respectively, and $43 million and $42 million for the three and nine months ended September 30, 2023.
The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In millions)
Proceeds$1,476 $880 $2,638 $1,978 
Gross gains18 — 36 7 
Gross losses(20)(27)(52)(109)
Unconsolidated Variable Interest Entities
We own investments in variable interest entities ("VIEs") that are not consolidated within our financial statements. A VIE is an entity that does not have sufficient equity to finance its own activities without additional financial support, where investors lack certain characteristics of a controlling financial interest, or where the entity is structured with non-substantive voting rights. VIEs are consolidated by their ‘primary beneficiary,’ a designation given to an entity that receives both the benefits from the VIE as well as the substantive power to make its key economic decisions. While we participate in the benefits from VIEs in which we invest, but do not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under our common control. It is for this reason that we are not considered the primary beneficiary for the VIE investments that are not consolidated.
We invest in various limited partnerships and limited liability companies primarily as a passive investor. These investments are primarily in credit funds with a bias towards current income, real assets, or private equity. Limited partnership
and limited liability company interests are accounted for under the equity method and are included in Investments in unconsolidated affiliates on our unaudited Condensed Consolidated Balance Sheets. In addition, we invest in structured investments, which may be VIEs, but for which we are not the primary beneficiary. These structured investments typically invest in fixed income investments and are managed by third parties and include asset-backed securities, commercial mortgage-backed securities, and residential mortgage-backed securities included in fixed maturity securities available for sale on our unaudited Condensed Consolidated Balance Sheets.
Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our unaudited Condensed Consolidated Balance Sheets for limited partnerships and the amortized costs of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note F Commitments and Contingencies).
The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs as of September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
(In millions)(In millions)
Carrying ValueMaximum Loss ExposureCarrying ValueMaximum Loss Exposure
Investment in unconsolidated affiliates$3,666 $4,814 $3,071 $4,806 
Fixed maturity securities23,343 24,120 20,837 22,346 
Total unconsolidated VIE investments$27,009 $28,934 $23,908 $27,152