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Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

Our investments in fixed maturity securities have been designated as AFS, and are carried at fair value, net of allowance for expected credit losses, with unrealized gains and losses included within 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. Our consolidated investments are summarized as follows:

			December 31, 2023
			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities			(In millions)
Asset-backed securities			$	14,631					$	(11)					$	191					$	(469)					$	14,342
Commercial mortgage-backed securities			4,797						(22)						23						(323)						4,475
Corporates			20,133						(6)						186						(2,417)						17,896
Hybrids			668						—						3						(53)						618
Municipals			1,826						—						14						(229)						1,611
Residential mortgage-backed securities			2,507						(3)						29						(104)						2,429
U.S. Government			679						—						8						(9)						678
Foreign Governments			365						—						3						(44)						324
Total available-for-sale securities			$	45,606					$	(42)					$	457					$	(3,648)					$	42,373

			December 31, 2022
			Amortized Cost						Allowance for Expected Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Available-for-sale securities			(In millions)
Asset-backed securities			$	12,209					$	(8)					$	36					$	(770)					$	11,467
Commercial mortgage-backed/asset-backed securities			3,337						(1)						11						(284)						3,063
Corporates			17,396						(22)						32						(3,069)						14,337
Hybrids			806						—						9						(84)						731
Municipals			1,749						—						4						(293)						1,460
Residential mortgage-backed securities			1,638						(8)						6						(109)						1,527
U.S. Government			287						—						—						(16)						271
Foreign Governments			286						—						—						(47)						239
Total available-for-sale securities			$	37,708					$	(39)					$	98					$	(4,672)					$	33,095

Securities held on deposit with various state regulatory authorities had a fair value of $141 million and $17,870 million at December 31, 2023 and December 31, 2022, respectively. The decrease in securities held on deposit with various state regulatory authorities during the year ended December 31, 2023, is primarily attributable to revisions to regulatory requirements in the state of Iowa.

As of December 31, 2023 and December 31, 2022, we held $47 million and $27 million of investments that were non-income producing for a period greater than twelve months, respectively.

As of December 31, 2023 and December 31, 2022, the Company's accrued interest receivable balance was $481 million and $365 million, respectively. Accrued interest receivable is classified within Prepaid expenses and other assets within the 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 $4,345 million and $3,387 million at December 31, 2023 and December 31, 2022, 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.

			December 31, 2023									December 31, 2022
			(in millions)									(in millions)
			Amortized Cost						Fair Value			Amortized Cost						Fair Value
Corporates, Non-structured Hybrids, Municipal and Government securities:
Due in one year or less			$	703					$	687		$	536					$	527
Due after one year through five years			4,320						4,209			3,288						3,089
Due after five years through ten years			3,195						3,048			2,171						1,939
Due after ten years			15,453						13,183			14,503						11,457
			23,671						21,127			20,498						17,012
Other securities, which provide for periodic payments:
Asset-backed securities			14,631						14,342			12,209						11,467
Commercial mortgage-backed securities			4,797						4,475			3,337						3,063
Structured hybrids			—						—			26						26
Residential mortgage-backed securities			2,507						2,429			1,638						1,527
			21,935						21,246			17,210						16,083
Total fixed maturity available-for-sale securities			$	45,606					$	42,373		$	37,708					$	33,095

Allowance for Current 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 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 is necessary:

• We believe amounts related to securities have become uncollectible; or

• 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 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 , 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. As of December 31, 2023 and 2022, our allowance for expected credit losses for AFS securities was $42 million and $39 million, respectively.

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 were as follows:

			December 31, 2023
			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			(Dollars in millions)
Asset-backed securities			$	1,707					$	(56)					$	5,835					$	(404)					$	7,542					$	(460)
Commercial mortgage-backed securities			819						(53)						1,922						(235)						2,741						(288)
Corporates			2,387						(134)						10,739						(2,283)						13,126						(2,417)
Hybrids			60						(2)						483						(51)						543						(53)
Municipals			399						(49)						920						(179)						1,319						(228)
Residential mortgage-backed securities			336						(5)						662						(89)						998						(94)
U.S. Government			84						—						159						(9)						243						(9)
Foreign Government			49						(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 months																																	1,035
Total number of available-for-sale securities in an unrealized loss position twelve months or longer																																	2,846
Total number of available-for-sale securities in an unrealized loss position																																	3,881

			December 31, 2022
			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			$	7,001					$	(410)					$	3,727					$	(360)					$	10,728					$	(770)
Commercial mortgage-backed securities			2,079						(169)						475						(116)						2,554						(285)
Corporates			9,913						(1,735)						3,523						(1,330)						13,436						(3,065)
Hybrids			628						(83)						3						(1)						631						(84)
Municipals			998						(180)						352						(113)						1,350						(293)
Residential mortgage-backed securities			992						(51)						184						(22)						1,176						(73)
U.S. Government			130						(7)						140						(8)						270						(15)
Foreign Government			119						(32)						59						(14)						178						(46)
Total available-for-sale securities			$	21,860					$	(2,667)					$	8,463					$	(1,964)					$	30,323					$	(4,631)
Total number of available-for-sale securities in an unrealized loss position less than twelve months																																	3,114
Total number of available-for-sale securities in an unrealized loss position twelve months or longer																																	1,296
Total number of available-for-sale securities in an unrealized loss position																																	4,410

We determined the unrealized losses were caused by higher treasury rates compared to those at the time of the F&G acquisition or the purchase of the security if later. For securities in an unrealized loss position as of December 31, 2023, our allowance for expected credit loss was $42 million. We believe that the unrealized loss position for which we have not recorded an allowance for expected credit loss as of December 31, 2023, 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

CMLs represented approximately 6% of our total investments at December 31, 2023 and December 31, 2022. 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:

			December 31, 2023												December 31, 2022
			Amortized Cost						% of Total						Amortized Cost						% of Total
Property Type:			(Dollars in millions)
Hotel			$	18					1		%				$	18					1		%
Industrial			616						24		%				520						22		%
Mixed Use			11						—		%				12						1		%
Multifamily			1,012						40		%				1,013						42		%
Office			316						13		%				330						14		%
Retail			102						4		%				105						4		%
Student Housing			83						3		%				83						3		%
Other			392						15		%				335						13		%
Total commercial mortgage loans, gross of valuation allowance			$	2,550					100		%				$	2,416					100		%
Allowance for expected credit loss			(12)												(10)
Total commercial mortgage loans, net of valuation allowance			$	2,538											$	2,406
U.S. Region:
East North Central			$	151					6		%				$	151					6		%
East South Central			75						3		%				76						3		%
Middle Atlantic			354						14		%				326						13		%
Mountain			352						14		%				355						15		%
New England			168						6		%				158						7		%
Pacific			766						30		%				708						28		%
South Atlantic			563						22		%				521						22		%
West North Central			4						—		%				4						1		%
West South Central			117						5		%				117						5		%
Total commercial mortgage loans, gross of valuation allowance			$	2,550					100		%				$	2,416					100		%
Allowance for expected credit loss			(12)												(10)
Total commercial mortgage loans, net of valuation allowance			$	2,538											$	2,406

CMLs segregated by aging of loans and charge offs (by year of origination) were as follows for the year ended December 31, 2023:

			December 31, 2023
			Amortized Cost by Origination Year
			2023						2022						2021						2020						2019						Prior						Total
			(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 commercial mortgage loans (a)			$	213					$	288					$	1256					$	512					$	—					$	259					$	2,528
Charge offs			$	—					$	—					$	—					$	—					$	—					$	3					$	3

(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million at December 31, 2023.

CMLs segregated by aging of loans (by year of origination) were as follows for the year ended December 31, 2022:

			December 31, 2022
			Amortized Cost by Origination Year
			2022						2021						2020						2019						2018						Prior						Total
			(In millions)
Current (less than 30 days past due)			$	341					$	1,300					$	488					$	—					$	—					$	269					$	2,398
30-89 days past due			—						—						—						—						—						—						—
90 days or more past due			—						—						—						—						—						9						9
Total commercial mortgage loans(a)			$	341					$	1,300					$	488					$	—					$	—					$	278					$	2,407

(a) Excludes loans under development with an amortized cost and estimated fair value of $9 million at December 31, 2022.

LTV and 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 presents the recorded investment in CMLs by LTV and DSC ratio categories and estimated fair value by the indicated loan-to-value ratios, gross of valuation allowances:

			Debt-Service Coverage Ratios																		Total Amount						% of Total						Estimated Fair Value						% of Total
			>1.25						1.00 - 1.25						<1.00
December 31, 2023			(Dollars in millions)
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		%
Commercial mortgage loans (a)			$	2,443					$	66					$	19											$	2,528					100		%				$	2,231					100		%
December 31, 2022
LTV Ratios:
Less than 50.00%			$	511					$	4					$	11											$	526					22		%				$	490					24		%
50.00% to 59.99%			706						—						—												706						29		%				615						30		%
60.00% to 74.99%			1,154						3						—												1,157						48		%				955						45		%
75.00% to 84.99%			—						—						18												18						1		%				14						1		%
Commercial mortgage loans			$	2,371					$	7					$	29											$	2,407					100		%				$	2,074					100		%

(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million and $9 million at December 31, 2023 and 2022, respectively.

			December 31, 2023
			Amortized Cost by Origination Year
			2023						2022						2021						2020						2019						Prior						Total
LTV			(In millions)
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 commercial mortgage loans (a)			$	213					$	288					$	1,256					$	512					$	—					$	259					2,528
DSCR
Greater than 1.25x			$	154					$	276					$	1,256					$	512					$	—					$	245					$	2,443
1.00x - 1.25x			59						3						—						—						—						4						66
Less than 1.00x			—						9						—						—						—						10						19
Total commercial mortgage loans (a)			$	213					$	288					$	1,256					$	512					$	—					$	259					$	2,528

			December 31, 2022
			Amortized Cost by Origination Year
			2022						2021						2020						2019						2018						Prior						Total
LTV			(In millions)
Less than 50.00%			$	70					$	120					$	207					$	—					$	—					$	129					$	526
50.00% to 59.99%			149						268						158						—						—						131						706
60.00% to 74.99%			113						912						123						—						—						9						1,157
75.00% to 84.99%			9						—						—						—						—						9						18
Total commercial mortgage loans (a)			$	341					$	1,300					$	488					$	—					$	—					$	278					$	2,407
DSCR
Greater than 1.25x			$	329					$	1,300					$	488					$	—					$	—					$	254					$	2,371
1.00x - 1.25x			3						—						—						—						—						4						7
Less than 1.00x			9						—						—						—						—						20						29
Total commercial mortgage loans (a)			$	341					$	1,300					$	488					$	—					$	—					$	278					$	2,407

(a) Excludes loans under development with an amortized cost and estimated fair value of $22 million for December 31, 2023, and an amortized cost and estimated fair value of $9 million for December 31, 2022.

We recognize mortgage loans as delinquent when payments on the loan are greater than 30 days past due. At December 31, 2023 and December 31, 2022, we had no CMLs that were delinquent in principal or interest payments as shown in the risk rating exposure table below.

Residential Mortgage Loans

RMLs represented approximately 7% and 5% of our total investments at December 31, 2023 and December 31, 2022, respectively. Our residential mortgage loans are 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:

			December 31, 2023
U.S. State:			Amortized Cost (In millions)						% of Total
Florida			$	163					6		%
New York			129						5		%
Texas			129						5		%
All Other States (1)			2,431						85		%
Total residential mortgage loans, gross of valuation allowance			$	2,852					100		%
Allowance for expected credit loss			(54)
Total residential mortgage loans, net of valuation allowance			$	2,798

(1) The individual concentration of each state is equal to or less than to 5%.

			December 31, 2022
U.S. State:			Amortized Cost (In millions)						% of Total
Florida			$	324					15		%
Texas			215						10		%
New Jersey			172						8		%
Pennsylvania			153						7		%
California			139						6		%
New York			138						6		%
Georgia			125						6		%
All other states (a)			914						42		%
Total residential mortgage loans, gross of valuation allowance			$	2,180					100		%
Allowance for expected credit loss			(32)
Total residential mortgage loans, net of valuation allowance			$	2,148

(1) The individual concentration of each state is less than 5%.

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 nonaccrual status, which is assessed monthly. The credit quality of RMLs was as follows:

			December 31, 2023												December 31, 2022
Performance indicators:			Amortized Cost						% of Total						Amortized Cost						% of Total
			(Dollars in millions)
Performing			$	2,795					98		%				$	2,118					97		%
Non-performing			57						2		%				62						3		%
Total residential mortgage loans, gross of valuation allowance			$	2,852					100		%				$	2,180					100		%
Allowance for expected loan loss			(54)						—						(32)						—
Total residential mortgage loans, net of valuation allowance			$	2,798					100		%				$	2,148					100		%

There were no charge offs recorded on RMLs during the year ended December 31, 2023. RMLs segregated by aging of the loans (by year of origination) as of December 31, 2023 and 2022 were as follows, gross of valuation allowances (in millions):

			December 31, 2023
			Amortized Cost by Origination Year
			2023			2022			2021			2020			2019			Prior			Total
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

			December 31, 2022
			Amortized Cost by Origination Year
			2022			2021			2020			2019			2018			Prior			Total
Residential mortgages			(In millions)
Current (less than 30 days past due)			$	766		$	884		$	214		$	185		$	23		$	33		$	2,105
30-89 days past due			2			7			—			4			—			—			13
90 days or more past due			3			9			15			34			1			—			62
Total residential mortgages			$	771		$	900		$	229		$	223		$	24		$	33		$	2,180

The amortized cost of non-accrual loans as of December 31, 2023 and 2022 were as follows:

Amortized cost of loans on non-accrual			December 31, 2023			December 31, 2022
			(In millions)
Residential mortgage			$	57		$	62
Commercial mortgage			—			9
Total non-accrual mortgages			$	57		$	71

Immaterial interest income was recognized on non-accrual financing receivables for the years ended December 31, 2023 and December 31, 2022.

It is our policy to cease to accrue interest on loans that are 90 days or more delinquent. 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 December 31, 2023 and December 31, 2022, we had $57 million and $71 million, respectively, of mortgage loans that were over 90 days past due, of which $41 million and $38 million was in the process of foreclosure as of December 31, 2023 and December 31, 2022, respectively.

Allowance for Expected Credit Loss

We estimate expected credit losses for our CML and RML 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 Consolidated Statements of Earnings.

The allowances for our mortgage loan portfolio is summarized as follows (in millions):

									Year ended December 31, 2023																		Year ended December 31, 2022
																					Residential Mortgage						Commercial Mortgage						Total						Residential Mortgage						Commercial Mortgage						Total
Beginning Balance																					$	32					$	10					$	42					$	25					$	6					$	31
Provision for loan losses																					22						5						27						7						4						11
Ending Balance																					$	54					$	12					$	66					$	32					$	10					$	42

									Year ended December 31, 2021
																					Residential Mortgage						Commercial Mortgage						Total
Beginning Balance																					37						2						39
Provision for loan losses																					(12)						4						(8)
Ending Balance																					$	25					$	6					$	31

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 as of December 31, 2023 and December 31, 2022.

Interest and Investment Income

The major sources of Interest and investment income reported on the accompanying Consolidated Statements of Earnings were as follows:

									Year ended
															December 31, 2023						December 31, 2022						December 31, 2021
															(In millions)
Fixed maturity securities, available-for-sale															$	1,911					$	1,489					$	1,267
Equity securities															33						31						23
Preferred securities															52						67						63
Mortgage loans															229						186						131
Invested cash and short-term investments															151						61						7
Limited partnerships															231						110						589
Tax deferred property exchange income															166						103						16
Other investments															91						41						32
Gross investment income															2,864						2,088						2,128
Investment expense															(257)						(197)						(167)
Interest and investment income															$	2,607					$	1,891					$	1,961

The Company’s 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 $339 million, $109 million, and $53 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Recognized Gains and Losses, net

Details underlying Recognized gains and losses, net reported on the accompanying Consolidated Statements of Earnings were as follows:

									Year ended
															December 31, 2023						December 31, 2022						December 31, 2021
															(In millions)
Net realized (losses) gains on fixed maturity available-for-sale securities															$	(155)					$	(253)					$	111
Net realized/unrealized (losses) gains on equity securities (1)															23						(386)						(434)
Net realized/unrealized (losses) gains on preferred securities (2)															(1)						(230)						(14)
Realized (losses) gains on other invested assets															(25)						(68)						8
Change in allowance for expected credit losses															(36)						(41)						8
Derivatives and embedded derivatives:
Realized (losses) gains on certain derivative instruments															(211)						(164)						456
Unrealized (losses) gains on certain derivative instruments															358						(693)						159
Change in fair value of reinsurance related embedded derivatives															(128)						352						34
Change in fair value of other derivatives and embedded derivatives															11						(10)						6
Realized (losses) gains on derivatives and embedded derivatives															30						(515)						655
Recognized gains and losses, net															$	(164)					$	(1,493)					$	334

(1) Includes net valuation (losses) gains of $47 million, $(387) million and $(436) million for the years ended December 31, 2023, 2022, and 2021, respectively.

(2) Includes net valuation losses of $80 million, $198 million, and $14 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Recognized gains and losses 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. Recognized gains and losses attributable to these agreements, and thus excluded from the totals in the table above, was $(123) million, $381 million and $15 million for the years ended December 31, 2023, 2022 and 2021, respectively.

The proceeds from the sale of fixed-maturity securities and the gross gains and losses associated with those transactions were as follows (in millions):

									Year ended
															December 31, 2023						December 31, 2022						December 31, 2021
Proceeds															$	2,698					$	3,264					$	4,749
Gross gains															18						14						158
Gross losses															(145)						(252)						(49)

Unconsolidated Variable Interest Entities

The Company owns investments in 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 the Company participates in the benefits from VIEs in which it invests, but does not consolidate, the substantive power to make the key economic decisions for each respective VIE resides with entities not under common control with the Company. It is for this reason that the Company is 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 Consolidated Balance Sheets. In addition, we invest in structured investments that 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 Consolidated Balance Sheets.

Our maximum loss exposure with respect to these VIEs is limited to the investment carrying amounts reported in our Consolidated Balance Sheets for limited partnerships and the amortized costs of certain of our fixed maturity securities, in addition to any required unfunded commitments (also refer to Note H Commitments and Contingencies).

The following table summarizes the carrying value and the maximum loss exposure of our unconsolidated VIEs:

			December 31, 2023												December 31, 2022
			Carrying Value						Maximum Loss Exposure						Carrying Value						Maximum Loss Exposure
			(In millions)
Investments in unconsolidated affiliates			$	3,071					$	4,806					$	2,427					$	4,030
Fixed maturity securities			20,837						22,346						15,680						17,404
Total unconsolidated VIE investments			$	23,908					$	27,152					$	18,107					$	21,434

Concentrations

Our underlying investment concentrations that exceed 10% of shareholders equity are as follows:

			December 31, 2023						December 31, 2022
			(In millions)
Blackstone Wave Asset Holdco (1)			$	725					$	741

__________________

(1)Represents a special purpose vehicle that holds investments in numerous limited partnership investments whose underlying investments are further diversified by holding interest in multiple individual investments and industries.

X

- Definition

The entire disclosure for investment.

+ References

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-Topic 320
-Name Accounting Standards Codification
-Publisher FASB
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 321
-Publisher FASB
-URI https://asc.fasb.org//321/tableOfContent

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Topic 325
-Publisher FASB
-URI https://asc.fasb.org//325/tableOfContent

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