
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

(In millions)

Fixed maturity securities	$	482	$	441	$	952	$	870
Limited partnership investments	55		7		82		27
Short term investments	14				30
Equity securities (a)	21		(11)		33		(9)
Income (loss) from trading portfolio (a)	14		(62)		59		(77)
Other	29		13		49		28
Total investment income	615		388		1,205		839
Investment expenses	(23)		(22)		(44)		(41)
Net investment income	$	592	$	366	$	1,161	$	798
(a) Net investment income (loss) recognized due to the change in fair value of equity and trading portfolio securities held as of June 30, 2023 and 2022	$	15	$	(95)	$	20	$	(120)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022

(In millions)

Fixed maturity securities:
Gross gains	$	8	$	45	$	43	$	71
Gross losses	(35)		(60)		(92)		(88)
Investment losses on fixed maturity securities	(27)		(15)		(49)		(17)
Equity securities (a)	3		(71)		(11)		(109)
Derivative instruments			26				55
Short term investments and other	(8)		1		(7)		1

Gain on acquisition of a joint venture (see Note 2)	46				46
Investment gains (losses)	$	14	$	(59)	$	(21)	$	(70)
(a) Investment gains (losses) recognized due to the change in fair value of non-redeemable preferred stock included within equity securities held as of June 30, 2023 and 2022	$	3	$	(70)	$	—	$	(108)

The components of available-for-sale impairment losses (gains) recognized in earnings by asset type are presented in the following table. The table includes losses (gains) on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:


June 30, 2023	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Estimated Fair Value
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	24,194	$	339	$	1,909	$	13	$	22,611
States, municipalities and political subdivisions	8,262		341		793				7,810
Asset-backed:
Residential mortgage-backed	3,133		4		444				2,693
Commercial mortgage-backed	1,843		4		257		7		1,583
Other asset-backed	3,571		9		330		2		3,248
Total asset-backed	8,547		17		1,031		9		7,524
U.S. Treasury and obligations of government sponsored enterprises	130				3				127
Foreign government	700		1		50				651
Redeemable preferred stock	5								5
Fixed maturities available-for-sale	41,838		698		3,786		22		38,728
Fixed maturities trading	199				1				198
Total fixed maturity securities	$	42,037	$	698	$	3,787	$	22	$	38,926


December 31, 2022


Fixed maturity securities:
Corporate and other bonds	$	23,137	$	301	$	2,009			$	21,429
States, municipalities and political subdivisions	8,918		338		939				8,317
Asset-backed:
Residential mortgage-backed	3,073		5		447				2,631
Commercial mortgage-backed	1,886		4		255				1,635
Other asset-backed	3,287		2		361		$	1	2,927
Total asset-backed	8,246		11		1,063		1		7,193
U.S. Treasury and obligations of government sponsored enterprises	111		1		2				110
Foreign government	617		1		43				575
Redeemable preferred stock	3								3
Fixed maturities available-for-sale	41,032		652		4,056		1		37,627
Fixed maturities trading	70								70
Total fixed maturity securities	$	41,102	$	652	$	4,056	$	1	$	37,697


	Less than 12 Months				12 Months or Longer				Total
June 30, 2023	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

Fixed maturity securities:
Corporate and other bonds	$	7,681	$	350	$	10,087	$	1,559	$	17,768	$	1,909
States, municipalities and political subdivisions	1,486		64		2,783		729		4,269		793
Asset-backed:
Residential mortgage-backed	822		35		1,810		409		2,632		444
Commercial mortgage-backed	325		15		1,171		242		1,496		257
Other asset-backed	739		32		1,982		298		2,721		330
Total asset-backed	1,886		82		4,963		949		6,849		1,031
U.S. Treasury and obligations of government-sponsored enterprises	84		2		34		1		118		3
Foreign government	213		8		395		42		608		50
Total fixed maturity securities	$	11,350	$	506	$	18,262	$	3,280	$	29,612	$	3,786

December 31, 2022

Fixed maturity securities:
Corporate and other bonds	$	15,946	$	1,585	$	1,634	$	424	$	17,580	$	2,009
States, municipalities and political subdivisions	4,079		769		456		170		4,535		939
Asset-backed:
Residential mortgage-backed	1,406		144		1,143		303		2,549		447
Commercial mortgage-backed	1,167		159		408		96		1,575		255
Other asset-backed	2,087		262		542		99		2,629		361
Total asset-backed	4,660		565		2,093		498		6,753		1,063
U.S. Treasury and obligations of government-sponsored enterprises	76		1		16		1		92		2
Foreign government	473		26		78		17		551		43
Total fixed maturity securities	$	25,234	$	2,946	$	4,277	$	1,110	$	29,511	$	4,056


	June 30, 2023				December 31, 2022
	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
(In millions)

U.S. Government, Government agencies and Government-sponsored enterprises	$	2,479	$	334	$	2,355	$	337
AAA	1,662		283		1,559		298
AA	4,404		746		4,327		817
A	6,937		703		6,615		749
BBB	12,960		1,513		13,226		1,621
Non-investment grade	1,170		207		1,429		234
Total	$	29,612	$	3,786	$	29,511	$	4,056

Based on current facts and circumstances, the unrealized losses presented in the June 30, 2023 securities in the gross unrealized loss position table above are not believed to be indicative of the ultimate collectibility of the current amortized cost of the securities, but rather are primarily attributable to changes in risk-free interest rates and a general market widening of credit spreads. In reaching this determination, the continued volatility in risk-free rates and credit spreads, as well as the fact that the unrealized losses are concentrated in investment grade issuers, were considered. Additionally, there is no current intent to sell securities with unrealized losses, nor is it more likely than not that sale will be required prior to recovery of amortized cost; accordingly, it was determined that there are no additional impairment losses to be recorded as of June 30, 2023.

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $413 million, $394 million and $374 million as of June 30, 2023, December 31, 2022 and June 30, 2022 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.


Three months ended June 30, 2023	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of April 1, 2023	$	1	$	1	$	2
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	1		7		8
Available-for-sale securities accounted for as PCD assets	11				11






Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period			1		1
Total allowance for credit losses	$	13	$	9	$	22


Three months ended June 30, 2022	Corporate and Other Bonds		Asset-backed		Total
(In millions)

Allowance for credit losses:
Balance as of April 1, 2022	$	12	$	5	$	17
Additions to the allowance for credit losses:


Available-for-sale securities accounted for as PCD assets			3		3

Reductions to the allowance for credit losses:

Write-offs charged against the allowance	12				12

Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period			(3)		(3)
Total allowance for credit losses	$	—	$	5	$	5



Six months ended June 30, 2023


Allowance for credit losses:
Balance as of January 1, 2023	$	—	$	1	$	1
Additions to the allowance for credit losses:
Securities for which credit losses were not previously recorded	1		7		8
Available-for-sale securities accounted for as PCD assets	20				20

Reductions to the allowance for credit losses:
Securities sold during the period (realized)	6				6
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis	3				3


Additional increases to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		1		2
Total allowance for credit losses	$	13	$	9	$	22


Six months ended June 30, 2022


Allowance for credit losses:
Balance as of January 1, 2022	$	11	$	7	$	18
Additions to the allowance for credit losses:


Available-for-sale securities accounted for as PCD assets			3		3

Reductions to the allowance for credit losses:

Write-offs charged against the allowance	12				12

Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period	1		(5)		(4)
Total allowance for credit losses	$	—	$	5	$	5


	June 30, 2023				December 31, 2022
	Cost or Amortized Cost		Estimated Fair Value		Cost or Amortized Cost		Estimated Fair Value
(In millions)

Due in one year or less	$	988	$	972	$	1,012	$	1,001
Due after one year through five years	11,072		10,443		9,880		9,399
Due after five years through ten years	13,445		12,226		13,788		12,453
Due after ten years	16,333		15,087		16,352		14,774
Total	$	41,838	$	38,728	$	41,032	$	37,627


	Mortgage Loans Amortized Cost Basis by Origination Year (a)
As of June 30, 2023	2023		2022		2021		2020		2019		Prior		Total
(In millions)

DSCR ≥1.6x
LTV less than 55%			$	9	$	13	$	111	$	33	$	245	$	411
LTV 55% to 65%									8				8
LTV greater than 65%			31		11								42
DSCR 1.2x - 1.6x
LTV less than 55%	$	28	5		49		14		42		51		189
LTV 55% to 65%	12		43				24				9		88
LTV greater than 65%			58										58
DSCR ≤1.2x
LTV less than 55%			35						34				69
LTV 55% to 65%	13		41						43				97
LTV greater than 65%	13		27		21				23		7		91
Total	$	66	$	249	$	94	$	149	$	183	$	312	$	1,053

A summary of the aggregate contractual or notional amounts and gross estimated fair values related to derivative financial instruments follows. The contractual or notional amounts for derivatives are used to calculate the exchange of contractual payments under related agreements and may not be representative of the potential for gain or loss on these


	June 30, 2023						December 31, 2022
	Contractual/Notional Amount		Estimated Fair Value				Contractual/Notional Amount		Estimated Fair Value
			Asset		(Liability)				Asset		(Liability)
(In millions)

Without hedge designation:
Equity markets:
Options – purchased	$	216	$	5
Futures – short	165				$	(2)	$	169
Warrants	95		5				117		$	6
Interest rate swaps	240		19				240		19

Currency forwards	13				(1)		12				$	(1)

As part of the overall investment strategy, investments are made in various assets which require future purchase, sale or funding commitments. These investments are recorded once funded, and the related commitments may include future capital calls from various third-party limited partnerships, signed and accepted mortgage loan applications and obligations related to private placement securities. As of June 30, 2023, commitments to purchase or fund were approximately $1.5 billion and to sell were approximately $60 million under the terms of these investments.