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Investment Information (Tables)

3 Months Ended

Mar. 31, 2023

Disclosure Investment Information [Abstract]

Summary of fair value and cost or amortized cost of available for sale securities

The following table summarizes the fair value and cost or amortized cost of the Company’s securities classified as available for sale:

			Estimated Fair Value						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Expected Credit Losses						Cost or Amortized Cost
March 31, 2023
Fixed maturities:
Corporate bonds			$	9,409					$	84					$	(636)					$	(45)					$	10,006
Residential mortgage backed securities			823						6						(74)						—						891
Municipal bonds			314						2						(24)						—						336
Commercial mortgage backed securities			1,035						1						(54)						(2)						1,090
U.S. government and government agencies			4,563						14						(234)						—						4,783
Non-U.S. government securities			2,187						13						(178)						(3)						2,355
Asset backed securities			2,361						3						(97)						(6)						2,461
Total			20,692						123						(1,297)						(56)						21,922
Short-term investments			1,553						1						(1)						—						1,553
Total			$	22,245					$	124					$	(1,298)					$	(56)					$	23,475
December 31, 2022
Fixed maturities:
Corporate bonds			$	8,020					$	55					$	(781)					$	(30)					$	8,776
Residential mortgage backed securities			795						5						(87)						—						877
Municipal bonds			419						3						(33)						—						449
Commercial mortgage backed securities			1,047						1						(58)						(3)						1,107
U.S. government and government agencies			5,162						15						(343)						—						5,490
Non-U.S. government securities			2,313						9						(238)						(2)						2,544
Asset backed securities			1,927						1						(107)						(6)						2,039
Total			19,683						89						(1,647)						(41)						21,282
Short-term investments			1,332						1						(2)						—						1,333
Total			$	21,015					$	90					$	(1,649)					$	(41)					$	22,615

Summary of available for sale securities in a continual unrealized loss position

The following table summarizes, for all available for sale securities in an unrealized loss position, the fair value and gross unrealized loss by length of time the security has been in a continual unrealized loss position:

			Less than 12 Months												12 Months or More												Total
			Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses						Estimated Fair Value						Gross Unrealized Losses
March 31, 2023
Fixed maturities:
Corporate bonds			$	2,723					$	(101)					$	4,702					$	(535)					$	7,425					$	(636)
Residential mortgage backed securities			412						(18)						279						(56)						691						(74)
Municipal bonds			131						(6)						164						(18)						295						(24)
Commercial mortgage backed securities			167						(8)						855						(46)						1,022						(54)
U.S. government and government agencies			1,209						(40)						2,137						(194)						3,346						(234)
Non-U.S. government securities			1,109						(61)						863						(117)						1,972						(178)
Asset backed securities			909						(31)						1,006						(66)						1,915						(97)
Total			6,660						(265)						10,006						(1,032)						16,666						(1,297)
Short-term investments			274						(1)						—						—						274						(1)
Total			$	6,934					$	(266)					$	10,006					$	(1,032)					$	16,940					$	(1,298)
December 31, 2022
Fixed maturities:
Corporate bonds			$	4,823					$	(393)					$	2,559					$	(388)					$	7,382					$	(781)
Residential mortgage backed securities			546						(52)						154						(35)						700						(87)
Municipal bonds			364						(30)						16						(3)						380						(33)
Commercial mortgage backed securities			598						(35)						445						(23)						1,043						(58)
U.S. government and government agencies			3,557						(197)						1,443						(146)						5,000						(343)
Non-U.S. government securities			1,703						(154)						542						(84)						2,245						(238)
Asset backed securities			1,148						(66)						512						(41)						1,660						(107)
Total			12,739						(927)						5,671						(720)						18,410						(1,647)
Short-term investments			237						(2)						—						—						237						(2)
Total			$	12,976					$	(929)					$	5,671					$	(720)					$	18,647					$	(1,649)

Contractual maturities of the Company's fixed maturities

The contractual maturities of the Company’s fixed maturities are shown in the following table. Expected maturities, which are management’s best estimates, will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

						March 31, 2023												December 31, 2022
Maturity						Estimated Fair Value						Amortized Cost						Estimated Fair Value						Amortized Cost
Due in one year or less						$	483					$	507					$	511					$	537
Due after one year through five years						11,405						11,938						11,016						11,715
Due after five years through 10 years						4,430						4,840						3,984						4,527
Due after 10 years						155						195						403						480
						16,473						17,480						15,914						17,259
Residential mortgage backed securities						823						891						795						877
Commercial mortgage backed securities						1,035						1,090						1,047						1,107
Asset backed securities						2,361						2,461						1,927						2,039
Total						$	20,692					$	21,922					$	19,683					$	21,282

Summary of other investments and other investable assets

The following table summarizes the Company’s other investments and other investable assets:

			March 31, 2023						December 31, 2022
Fixed maturities			$	631					$	554
Other investments			1,121						1,043
Short-term investments			17						33
Equity securities			7						14
Total			$	1,776					$	1,644

The following table summarizes the Company’s other investments, as detailed in the previous table, by strategy:

			March 31, 2023						December 31, 2022
Lending			$	420					$	406
Investment grade fixed income			280						271
Term loan investments			209						164
Private equity			131						123
Credit related funds			62						56
Energy			19						23
Total			$	1,121					$	1,043

Summary of investments accounted for using equity method

The following table summarizes the Company’s investments accounted for using the equity method, by strategy:

			March 31, 2023						December 31, 2022
Credit related funds			$	1,156					$	1,136
Private equity			944						917
Real estate			574						535
Lending			533						531
Infrastructure			271						245
Equities			173						169
Fixed income			135						130
Energy			110						111
Total			$	3,896					$	3,774

Summary of investments in limited partnership interests where the Company has a variable interest

The following table summarizes investments in limited partnership interests where the Company has a variable interest by balance sheet line item:

			March 31, 2023						December 31, 2022
Investments accounted for using the equity method (1)			$	3,896					$	3,774
Investments accounted for using the fair value option (2)			130						131
Total			$	4,026					$	3,905

(1)    Aggregate unfunded commitments were $2.6 billion at March 31, 2023, compared with $2.6 billion at December 31, 2022.

(2)    Aggregate unfunded commitments were $61 million at March 31, 2023, compared to $17 million at December 31, 2022.

Components of net investment income

The components of net investment income were derived from the following sources:

			March 31,
			2023						2022
Three Months Ended
Fixed maturities			$	188					$	82
Term loans			0						2
Equity securities			4						6
Short-term investments			14						3
Other (1)			13						10
Gross investment income			219						103
Investment expenses			(20)						(23)
Net investment income			$	199					$	80

(1)    Includes income distributions from investment funds and other items.

Summary of net realized gains (losses), including change in allowance for credit losses on financial assets and net impairment losses recognized in earnings

Net realized gains (losses), which include changes in the allowance for credit losses on financial assets and net impairment losses recognized in earnings were as follows:

			March 31,
			2023						2022
Three Months Ended
Available for sale securities:
Gross gains on investment sales			$	17					$	20
Gross losses on investment sales			(111)						(108)
Change in fair value of assets and liabilities accounted for using the fair value option:
Fixed maturities			6						(31)
Other investments			9						4
Equity securities			1						(3)
Equity securities, at fair value:
Net realized gains (losses) on sales during the period			19						65
Net unrealized gains (losses) on equity securities still held at reporting date			38						(176)
Allowance for credit losses:
Investments related			(16)						(32)
Underwriting related			0						(4)
Derivative instruments (1)			56						(24)
Other			(2)						(3)
Net realized gains (losses)			$	17					$	(292)

(1)    See note 9 for information on the Company’s derivative instruments.

Rollforward of the allowance for expected credit losses of securities classified as available for sale

The following table provides a roll forward of the allowance for expected credit losses of the Company’s securities classified as available for sale:

						Structured Securities (1)												Corporate Bonds												Non-U.S. Government Securities						Total
Three Months Ended March 31, 2023
Balance at beginning of period						$	9											$	30											$	2					$	41
Additions for current-period provision for expected credit losses						—												1												—						1
Additions (reductions) for previously recognized expected credit losses						(1)												15												1						15
Reductions due to disposals						—												(1)												—						(1)
Balance at end of period						$	8											$	45											$	3					$	56
Three Months Ended March 31, 2022
Balance at beginning of period						$	1											$	2											$	—					$	3
Additions for current-period provision for expected credit losses						6												25												—						31
Additions (reductions) for previously recognized expected credit losses						—												—												—						—
Reductions due to disposals						—												—												—						—
Balance at end of period						$	7											$	27											$	—					$	34

(1)    Includes asset backed securities, residential mortgage backed securities and commercial mortgage backed securities.

Summary of restricted assets

The following table details the value of the Company’s restricted assets:

			March 31, 2023						December 31, 2022
Assets used for collateral or guarantees:
Affiliated transactions			$	4,353					$	4,254
Third party agreements			2,764						2,633
Deposits with U.S. regulatory authorities			805						776
Other (1)			1,089						1,038
Total restricted assets			$	9,011					$	8,701

(1)    Primarily includes Funds at Lloyds, deposits with non-U.S. regulatory authorities and other restricted assets.

Reconciliation of cash and restricted cash

The following table details reconciliation of cash and restricted cash within the Consolidated Balance Sheets:

			March 31, 2023						December 31, 2022
Cash			$	803					$	855
Restricted cash (included in ‘other assets’)			412						418
Cash and restricted cash			$	1,215					$	1,273

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