v3.24.3
Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Consolidated Investments 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 
Schedule of Investments Classified by Contractual Maturity Date
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 
Schedule of Fair Value and Gross Unrealized Losses of Available-for-sale Securities
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 
Schedule of Distribution of CMLs, Gross Valuation by Property Type and Geographic Region 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 
Schedule of Loans Segregated by Risk Rating Exposure
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.
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 
Schedule of Investment in Mortgage Loans by Loan to Value and Debt Service Coverage Ratios
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.
Schedule of Residential Mortgage Loans by State 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.
Schedule of Loans with Credit Quality Indicators, Performing or Nonperforming 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 
Schedule of Nonaccrual Loans by Amortized Cost 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 $57 
Schedule of Allowance for Expected Credit Losses on Loans
The allowances for our mortgage loan portfolio are summarized as follows:
Three months ended September 30, 2024
Nine months ended September 30, 2024
(In millions)(In millions)
Residential MortgageCommercial MortgageTotalResidential MortgageCommercial MortgageTotal
Beginning Balance$(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)
Schedule of Sources of Net Investment Income Reported
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 $1,915 
Schedule of Recognized Gains and Losses, net
Details underlying Recognized gains and losses, net reported on the accompanying unaudited Condensed Consolidated Statements of Earnings were as follows:
Three months ended September 30,Nine months ended September 30,
2024202320242023
(In millions)(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities$(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.
Schedule of Proceeds from Sale of Fixed Maturity Available-for-sale Securities
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)
Schedule of Carrying Value and Maximum Loss Exposure, Unconsolidated VIEs
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