Our fixed maturity securities investments have been designated as available-for-sale and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included in AOCI, net of associated adjustments for DAC, VOBA, DSI, UREV, SOP 03-1 reserves, and deferred income taxes. Our equity securities investments are carried at fair value with unrealized gains and losses included in net earnings. The Company’s consolidated investments at June 30, 2021 and December 31, 2020 are summarized as follows (in millions):


	June 30, 2021
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Carrying Value
Available-for-sale securities
Asset-backed securities	$	7,103	$	(4)	$	323	$	(18)	$	7,404	$	7,404
Commercial mortgage-backed securities	2,518		(1)		432		(3)		2,946		2,946
Corporates	13,865		(5)		951		(119)		14,691		14,691
Hybrids	879		—		85		—		964		964
Municipals	1,375		—		80		(9)		1,446		1,446
Residential mortgage-backed securities	773		(3)		31		(1)		801		801
U.S. Government	1,054		—		5		—		1,059		1,059
Foreign Governments	191		—		9		—		200		200
Total available-for-sale securities	$	27,758	$	(13)	$	1,916	$	(150)	$	29,511	$	29,511


	December 31, 2020
	Amortized Cost		Allowance for Expected Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Carrying Value
Available-for-sale securities
Asset-backed securities	$	5,941	$	—	$	343	$	(18)	$	6,266	$	6,266
Commercial mortgage-backed/asset-backed securities	$	2,490	$	—	$	342	$	(3)	$	2,829	$	2,829
Corporates	13,582		(16)		1,184		(15)		14,735		14,735
Hybrids	914		—		80		—		994		994
Municipals	1,333		—		72		(2)		1,403		1,403
Residential mortgage-backed securities	806		(3)		23		(1)		825		825
U.S. Government	332		—		10		—		342		342
Foreign Governments	179		—		14		—		193		193
Total available-for-sale securities	$	25,577	$	(19)	$	2,068	$	(39)	$	27,587	$	27,587

As of June 30, 2021 and December 31, 2020, the Company's accrued interest receivable balance was $235 million. 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 the Company for general purposes. The collateral investments had a fair value of $2,256 million and $1,622 million as of June 30, 2021 and December 31, 2020, respectively.

The amortized cost and fair value of fixed maturity available-for-sale 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.


	June 30, 2021
	(in millions)
	Amortized Cost		Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less	$	456	$	455
Due after one year through five years	2,761		2,875
Due after five years through ten years	2,126		2,235
Due after ten years	11,995		12,762
Subtotal	17,338		18,327
Other securities which provide for periodic payments:
Asset-backed securities	7,103		7,404
Commercial mortgage-backed securities	2,518		2,946
Structured hybrids	26		33
Residential mortgage-backed securities	773		801
Subtotal	10,420		11,184
Total fixed maturity available-for-sale securities	$	27,758	$	29,511

We regularly review available for sale ("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:

We recognize an allowance for 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 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 to interest and investment income when collectability concerns arise.

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 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 Consolidated Statements of Earnings. The remainder of unrealized loss is held in AOCI.


	Three Months Ended June 30, 2021
			Additions						Reductions
	Balance at Beginning of Period		For credit losses on securities for which losses were not previously recorded		For initial credit losses on purchased securities accounted for as PCD financial assets (1)		(Additions) reductions in allowance recorded on previously impaired securities		For securities sold during the period		For securities intended/required to be sold prior to recovery of amortized cost basis		Write-offs charged against the allowance		Recoveries of amounts previously written off		Balance at End of Period
Available-for-sale securities
Asset-backed securities	$	—	$	—	$	—	$	(1)	$	(3)	$	—	$	—	—		$	(4)
Commercial mortgage-backed securities	(1)		—		—		—		—		—		—		—		(1)
Corporates	(3)		—		—		(2)		—		—		—		—		(5)


Residential mortgage-backed securities	(3)		—		—		—		—		—		—		—		(3)


Total available-for-sale securities	$	(7)	$	—	$	—	$	(3)	$	(3)	$	—	$	—	$	—	$	(13)



	Six Months Ended June 30, 2021
			Additions								Reductions
	Balance at Beginning of Period		For credit losses on securities for which losses were not previously recorded		For initial credit losses on purchased securities accounted for as PCD financial assets (1)		(Additions) reductions in allowance recorded on previously impaired securities				For securities sold during the period		For securities intended/required to be sold prior to recovery of amortized cost basis		Writeoffs charged against the allowance		Recoveries of amounts previously written off		Balance at End of Period
Available-for-sale securities
Asset-backed securities	$	—	$	—	$	—	$	(1)	—		$	(3)	$	—	$	—	$	—	$	(4)
Commercial mortgage-backed securities	—		(1)		—		—		—		—		—		—		—		(1)
Corporates	(16)		—		—		5		—		—		—		3		3		(5)


Residential mortgage-backed securities	(3)		—		—		—		—		—		—		—		—		(3)


Total available-for-sale securities	$	(19)	$	(1)	$	—	$	4	$	—	$	(3)	$	—	$	3	$	3	$	(13)

Purchased credit-deteriorated available-for-sale debt securities ("PCD"s) are AFS securities purchased at a discount, where part of that discount is attributable to credit. Credit loss allowances are calculated for these securities as of the date of their acquisition, with the initial allowance serving to increase amortized cost. The following table summarizes purchases of PCD AFS securities during the three and six-month periods ended June 30, 2021 (in millions).

The fair value and gross unrealized losses of available-for-sale 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 June 30, 2021 and December 31, 2020 were as follows (dollars in millions):


	June 30, 2021
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities
Asset-backed securities	$	1,478	$	(15)	$	98	$	(3)	$	1,576	$	(18)
Commercial mortgage-backed securities	112		(1)		1		(2)		113		(3)
Corporates	3,040		(111)		48		(8)		3,088		(119)
Hybrids	3		—		—		—		3		—
Municipals	216		(7)		53		(2)		269		(9)
Residential mortgage-backed securities	10		—		23		(1)		33		(1)
U.S. Government	95		—		—		—		95		—
Foreign Government	14		—		—		—		14		—
Total available-for-sale securities	$	4,968	$	(134)	$	223	$	(16)	$	5,191	$	(150)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											514
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											41
Total number of available-for-sale securities in an unrealized loss position											555


	December 31, 2020
	Less than 12 months				12 months or longer				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
Available-for-sale securities
Asset-backed securities	$	477	$	(18)	$	—	$	—	$	477	$	(18)
Commercial mortgage-backed securities	51		(3)		—		—		51		(3)
Corporates	865		(15)		36		—		901		(15)
Hybrids	1		—		—		—		1		—
Municipals	115		(2)		—		—		115		(2)
Residential mortgage-backed securities	30		(1)		—		—		30		(1)
U.S. Government	11		—		—		—		11		—

Total available-for-sale securities	$	1,550	$	(39)	$	36	$	—	$	1,586	$	(39)
Total number of available-for-sale securities in an unrealized loss position less than twelve months											222
Total number of available-for-sale securities in an unrealized loss position twelve months or longer											11
Total number of available-for-sale securities in an unrealized loss position											233

We determined the increase in unrealized losses as of June 30, 2021 was caused by higher treasury rates, offset by narrower spreads in certain sectors. This in part is expected as the economy continues its anticipated path to recovery and reopening. For securities in an unrealized loss position as of June 30, 2021; an expected credit loss was not determined, and we believe that the unrealized loss is being driven by interest rate increases or near-term illiquidity and uncertainty of the impact of COVID-19 on the economy as opposed to issuer specific credit concerns. Specific to asset-backed and mortgage-backed securities for which an expected credit loss was not determined, the effect of any increased expectations of underlying collateral defaults has not risen to the level of impacting the tranches of those securities.