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INVESTMENTS
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS INVESTMENTS
Fixed Maturities AFS
The components of fair value and amortized cost for fixed maturities classified as AFS on the consolidated balance sheets excludes accrued interest receivable because the Company elected to present accrued interest receivable within
other assets. Accrued interest receivable on AFS fixed maturities as of March 31, 2023 and December 31, 2022 was $616 million and $591 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three months ended March 31, 2023 and 2022.
The following tables provide information relating to the Company’s fixed maturities classified as AFS.
AFS Fixed Maturities by Classification
 
Amortized CostAllowance for Credit Losses Gross Unrealized GainsGross Unrealized LossesFair Value
 
 (in millions)
March 31, 2023
Fixed Maturities:
Corporate (1)$51,030 $18 $167 $6,086 $45,093 
U.S. Treasury, government and agency
6,991 — 3 925 6,069 
States and political subdivisions638 — 12 75 575 
Foreign governments
1,028 — 3 133 898 
Residential mortgage-backed (2)930 — 1 84 847 
Asset-backed (3)8,548 — 9 315 8,242 
Commercial mortgage-backed3,856 — — 558 3,298 
Redeemable preferred stock40 — 3 — 43 
Total at March 31, 2023$73,061 $18 $198 $8,176 $65,065 
December 31, 2022:
Fixed Maturities:
Corporate (1)
$50,712 $24 $89 $7,206 $43,571 
U.S. Treasury, government and agency
7,054 — 1 1,218 5,837 
States and political subdivisions
609 — 7 89 527 
Foreign governments
985 — 2 151 836 
Residential mortgage-backed (2)908 — 1 87 822 
Asset-backed (3)8,859 — 4 373 8,490 
Commercial mortgage-backed3,823 — — 588 3,235 
Redeemable preferred stock 41 — 2 — 43 
Total at December 31, 2022$72,991 $24 $106 $9,712 $63,361 
______________
(1)Corporate fixed maturities include both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.
The contractual maturities of AFS fixed maturities as of March 31, 2023 are shown in the table below. Bonds not due at a single maturity date have been included in the table in the final year of maturity. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Contractual Maturities of AFS Fixed Maturities
 Amortized Cost (Less Allowance for Credit Losses)Fair Value
 (in millions)
March 31, 2023
Contractual maturities:
Due in one year or less$1,551 $1,533 
Due in years two through five15,798 15,107 
Due in years six through ten16,462 15,023 
Due after ten years25,858 20,972 
Subtotal59,669 52,635 
Residential mortgage-backed930 847 
Asset-backed8,548 8,242 
Commercial mortgage-backed3,856 3,298 
Redeemable preferred stock 40 43 
Total at March 31, 2023$73,043 $65,065 

The following table shows proceeds from sales, gross gains (losses) from sales and allowance for credit losses for AFS fixed maturities.
Proceeds from Sales, Gross Gains (Losses) from Sales and Allowance for Credit and Intent to Sell Losses for AFS Fixed Maturities

 
Three Months Ended March 31,
 
20232022
 
(in millions)
Proceeds from sales$825 $7,391 
Gross gains on sales$2 $29 
Gross losses on sales$(26)$(364)
Net (increase) decrease in Allowance for Credit and Intent to Sell losses $(56)$1 


The following table sets forth the amount of credit loss impairments on AFS fixed maturities held by the Company at the dates indicated and the corresponding changes in such amounts.
AFS Fixed Maturities - Credit and Intent to Sell Loss Impairments

Three Months Ended March 31,
20232022
(in millions)
Balance, beginning of period$36 $44 
Previously recognized impairments on securities that matured, paid, prepaid or sold(3)(2)
Recognized impairments on securities impaired to fair value this period (1) (2)52 — 
Credit losses recognized this period on securities for which credit losses were not previously recognized3 — 
Additional credit losses this period on securities previously impaired1 1 
Increases due to passage of time on previously recorded credit losses— — 
Accretion of previously recognized impairments due to increases in expected cash flows (for OTTI securities 2019 and prior)— — 
Balance at March 31,$89 $43 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
(2)Amounts reflected for the three months ended March 31, 2023 represent AFS fixed maturities in an unrealized loss position, which the Company intends to sell in anticipation of Equitable Financial’s ordinary dividend to Holdings.
The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, January 1, 2023$(9,606)$41 $440 $(9,125)
Net investment gains (losses) arising during the period1,555 — — 1,555 
Reclassification adjustment:
Included in net income (loss)80 — — 80 
Other— — — — 
Impact of net unrealized investment gains (losses)— (8)(342)(350)
Net unrealized investment gains (losses) excluding credit losses(7,971)33 98 (7,840)
Net unrealized investment gains (losses) with credit losses(7)— 1 (6)
Balance, March 31, 2023$(7,978)$33 $99 $(7,846)
Balance, January 1, 2022$4,809 $(169)$(974)$3,666 
Net investment gains (losses) arising during the period(6,425)— — (6,425)
Reclassification adjustment:
Included in net income (loss)334 — — 334 
Other— — — — 
Impact of net unrealized investment gains (losses)— 173 1,242 1,415 
Net unrealized investment gains (losses) excluding credit losses(1,282)4 268 (1,010)
Net unrealized investment gains (losses) with credit losses(5)— 1 (4)
Balance, March 31, 2022$(1,287)$4 $269 $(1,014)

The following tables disclose the fair values and gross unrealized losses of the 4,949 issues as of March 31, 2023 and the 5,209 issues as of December 31, 2022 that are not deemed to have credit losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the specified periods at the dates indicated.
AFS Fixed Maturities in an Unrealized Loss Position for Which No Allowance Is Recorded
Less Than 12 Months12 Months or LongerTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
March 31, 2023
Fixed Maturities:
Corporate$8,624 $401 $30,610 $5,683 $39,234 $6,084 
U.S. Treasury, government and agency3,271 277 2,584 648 5,855 925 
Less Than 12 Months12 Months or LongerTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
States and political subdivisions36 2 269 73 305 75 
Foreign governments106 6 645 127 751 133 
Residential mortgage-backed295 11 517 73 812 84 
Asset-backed1,458 36 5,933 279 7,391 315 
Commercial mortgage-backed425 30 2,805 528 3,230 558 
Total at March 31, 2023$14,215 $763 $43,363 $7,411 $57,578 $8,174 
December 31, 2022:
Fixed Maturities:
Corporate$24,580 $2,668 $16,534 $4,536 $41,114 $7,204 
U.S. Treasury, government and agency5,564 1,200 204 18 5,768 1,218 
States and political subdivisions130 25 173 64 303 89 
Foreign governments349 42 417 109 766 151 
Residential mortgage-backed671 49 83 38 754 87 
Asset-backed6,298 230 1,765 143 8,063 373 
Commercial mortgage-backed1,577 201 1,640 387 3,217 588 
Total at December 31, 2022$39,169 $4,415 $20,816 $5,295 $59,985 $9,710 

The Company’s investments in fixed maturities do not include concentrations of credit risk of any single issuer greater than 10% of the consolidated equity of the Company, other than securities of the U.S. government, U.S. government agencies, and certain securities guaranteed by the U.S. government. The Company maintains a diversified portfolio of corporate securities across industries and issuers and does not have exposure to any single issuer in excess of 0.9% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of March 31, 2023 and December 31, 2022 were $387 million and $327 million, respectively, representing 7.1% and 10.4% of the consolidated equity of the Company.
Corporate high yield securities, consisting primarily of public high yield bonds, are classified as other than investment grade by the various rating agencies, i.e., a rating below Baa3/BBB- or the NAIC designation of 3 (medium investment grade), 4 or 5 (below investment grade) or 6 (in or near default). As of March 31, 2023 and December 31, 2022, respectively, approximately $2.8 billion and $2.9 billion, or 3.8% and 4.0%, of the $73.1 billion and $73.0 billion aggregate amortized cost of fixed maturities held by the Company were considered to be other than investment grade. These securities had gross unrealized losses of $166 million and $208 million as of March 31, 2023 and December 31, 2022, respectively.
As of March 31, 2023 and December 31, 2022, respectively, the $7.4 billion and $5.3 billion of gross unrealized losses of twelve months or more were primarily concentrated in corporate securities. In accordance with the policy described in Note 2 of the Notes to these Consolidated Financial Statements, the Company concluded that an adjustment to the allowance for credit losses for these securities was not warranted at either March 31, 2023 or December 31, 2022. As of March 31, 2023 and December 31, 2022, the Company did not intend to sell the securities nor will it likely be required to dispose of the securities before the anticipated recovery of their remaining amortized cost basis.
Based on the Company’s evaluation both qualitatively and quantitatively of the drivers of the decline in fair value of fixed maturity securities as of March 31, 2023, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.
Mortgage Loans on Real Estate
Accrued interest receivable on commercial and agricultural mortgage loans as of March 31, 2023 and December 31, 2022 was $72 million and $71 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the three months ended March 31, 2023 and 2022.
As of March 31, 2023, the Company had no loans for which foreclosure was probable included within the individually assessed mortgage loans, and accordingly had no associated allowance for credit losses.
Allowance for Credit Losses on Mortgage Loans
The change in the allowance for credit losses for commercial mortgage loans and agricultural mortgage loans during the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
20232022
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period $123 $57 
Current-period provision for expected credit losses10 (10)
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance10 (10)
Balance, end of period$133 $47 
Agricultural mortgages:
Balance, beginning of period$6 $5 
Current-period provision for expected credit losses— 1 
Write-offs charged against the allowance— — 
Recoveries of amounts previously written off— — 
Net change in allowance— 1 
Balance, end of period$6 $6 
Total allowance for credit losses$139 $53 

The change in the allowance for credit losses is attributable to:
•increases/decreases in the loan balance due to new originations, maturing mortgages, and loan amortization; and
•changes in credit quality and economic assumptions.
Credit Quality Information
The following tables summarize the Company’s mortgage loans segregated by risk rating exposure as of March 31, 2023 and December 31, 2022.

Loan to Value (“LTV”) Ratios (1)
March 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$— $679 $130 $— $— $1,466 $— $— $2,275 
March 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
50% - 70%237 2,230 1,568 906 312 2,911 268 94 8,526 
70% - 90%243 364 382 463 328 1,635 28 34 3,477 
90% plus— — 33 — — 225 — — 258 
Total commercial$480 $3,273 $2,113 $1,369 $640 $6,237 $296 $128 $14,536 
Agricultural:
0% - 50%$10 $164 $182 $237 $128 $847 $— $— $1,568 
50% - 70%11 188 182 208 67 332 — — 988 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
Total agricultural$21 $352 $364 $445 $195 $1,195 $— $— $2,572 
Total mortgage loans:
0% - 50%$10 $843 $312 $237 $128 $2,313 $— $— $3,843 
50% - 70%248 2,418 1,750 1,114 379 3,243 268 94 9,514 
70% - 90%243 364 382 463 328 1,651 28 34 3,493 
90% plus— — 33 — — 225 — — 258 
Total mortgage loans$501 $3,625 $2,477 $1,814 $835 $7,432 $296 $128 $17,108 


Debt Service Coverage (“DSC”) Ratios (2)
March 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$— $783 $1,160 $1,113 $102 $2,634 $— $— $5,792 
1.8x to 2.0x— 94 180 164 288 605 242 94 1,667 
1.5x to 1.8x— 400 490 32 195 1,234 — — 2,351 
1.2x to 1.5x307 1,041 194 — — 854 — — 2,396 
1.0x to 1.2x166 496 41 60 55 840 54 34 1,746 
Less than 1.0x7 459 48 — — 70 — — 584 
Total commercial$480 $3,273 $2,113 $1,369 $640 $6,237 $296 $128 $14,536 
Agricultural:
Greater than 2.0x$2 $51 $40 $61 $21 $189 $— $— $364 
March 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
1.8x to 2.0x— 16 57 33 24 67 — — 197 
1.5x to 1.8x6 69 31 110 18 213 — — 447 
1.2x to 1.5x4 107 156 177 97 391 — — 932 
1.0x to 1.2x5 90 80 60 29 310 — — 574 
Less than 1.0x4 19 — 4 6 25 — — 58 
Total agricultural$21 $352 $364 $445 $195 $1,195 $— $— $2,572 
Total mortgage loans:
Greater than 2.0x$2 $834 $1,200 $1,174 $123 $2,823 $— $— $6,156 
1.8x to 2.0x— 110 237 197 312 672 242 94 1,864 
1.5x to 1.8x6 469 521 142 213 1,447 — — 2,798 
1.2x to 1.5x311 1,148 350 177 97 1,245 — — 3,328 
1.0x to 1.2x171 586 121 120 84 1,150 54 34 2,320 
Less than 1.0x11 478 48 4 6 95 — — 642 
Total mortgage loans$501 $3,625 $2,477 $1,814 $835 $7,432 $296 $128 $17,108 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
LTV Ratios (1)
December 31, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
0% - 50%$624 $130 $— $— $119 $1,259 $— $— $2,132 
50% - 70%2,285 1,569 906 313 623 2,254 328 — 8,278 
70% - 90%363 415 463 329 424 1,314 — 34 3,342 
90% plus— — — — 35 233 — — 268 
Total commercial$3,272 $2,114 $1,369 $642 $1,201 $5,060 $328 $34 $14,020 
Agricultural:
0% - 50%$163 $182 $228 $129 $132 $725 $— $— $1,559 
50% - 70%190 185 222 68 83 267 — — 1,015 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
December 31, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Total agricultural$353 $367 $450 $197 $215 $1,008 $— $— $2,590 
Total mortgage loans:
0% - 50%$787 $312 $228 $129 $251 $1,984 $— $— $3,691 
50% - 70%2,475 1,754 1,128 381 706 2,521 328 — 9,293 
70% - 90%363 415 463 329 424 1,330 — 34 3,358 
90% plus— — — — 35 233 — — 268 
Total mortgage loans$3,625 $2,481 $1,819 $839 $1,416 $6,068 $328 $34 $16,610 

DSC Ratios (2)
December 31, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Mortgage loans:
Commercial:
Greater than 2.0x$771 $1,159 $1,113 $102 $571 $1,923 $— $— $5,639 
1.8x to 2.0x158 215 164 197 186 482 279 — 1,681 
1.5x to 1.8x337 390 32 153 176 1,175 4 — 2,267 
1.2x to 1.5x1,041 259 — 92 73 917 — — 2,382 
1.0x to 1.2x507 43 60 98 160 492 45 34 1,439 
Less than 1.0x458 48 — — 35 71 — — 612 
Total commercial$3,272 $2,114 $1,369 $642 $1,201 $5,060 $328 $34 $14,020 
December 31, 2022
Amortized Cost Basis by Origination Year
20222021202020192018PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Agricultural:
Greater than 2.0x$51 $40 $62 $21 $12 $193 $— $— $379 
1.8x to 2.0x16 58 35 24 14 51 — — 198 
1.5x to 1.8x69 42 111 18 19 196 — — 455 
1.2x to 1.5x107 147 177 98 99 298 — — 926 
1.0x to 1.2x91 80 61 30 60 257 — — 579 
Less than 1.0x19 — 4 6 11 13 — — 53 
Total agricultural$353 $367 $450 $197 $215 $1,008 $— $— $2,590 
Total mortgage loans:
Greater than 2.0x$822 $1,199 $1,175 $123 $583 $2,116 $— $— $6,018 
1.8x to 2.0x174 273 199 221 200 533 279 — 1,879 
1.5x to 1.8x406 432 143 171 195 1,371 4 — 2,722 
1.2x to 1.5x1,148 406 177 190 172 1,215 — — 3,308 
1.0x to 1.2x598 123 121 128 220 749 45 34 2,018 
Less than 1.0x477 48 4 6 46 84 — — 665 
Total mortgage loans$3,625 $2,481 $1,819 $839 $1,416 $6,068 $328 $34 $16,610 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
Past-Due and Nonaccrual Mortgage Loan Status
The following table provides information relating to the aging analysis of past-due mortgage loans as of March 31, 2023 and December 31, 2022, respectively.
Age Analysis of Past Due Mortgage Loans (1)
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past Due
Current
Total
30-59 Days
60-89 Days
90 Days or More
Total
(in millions)
March 31, 2023:
Mortgage loans:
Commercial$62 $— $— $62 $14,383 $14,445 $91 $14,536 $— $1 
Agricultural17 11 15 43 2,510 2,553 19 2,572 3 — 
Total$79 $11 $15 $105 $16,893 $16,998 $110 $17,108 $3 $1 
Accruing Loans
Non-accruing Loans
Total Loans
Non-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past Due
Current
Total
30-59 Days
60-89 Days
90 Days or More
Total
(in millions)
December 31, 2022:
Mortgage loans:
Commercial$56 $— $— $56 $13,964 $14,020 $— $14,020 $— $— 
Agricultural3 5 13 21 2,553 2,574 16 2,590 — — 
Total$59 $5 $13 $77 $16,517 $16,594 $16 $16,610 $— $— 
_______________
(1)Amounts presented at amortized cost basis.
As of March 31, 2023 and December 31, 2022, the carrying values of problem mortgage loans that had been classified as non-accrual loans were $17 million and $14 million, respectively. The carrying values of those mortgage loans are presented net of an allowance of $2 million and $2 million, respectively, as of March 31, 2023 and December 31, 2022.
Troubled Debt Restructuring
During the three months ended March 31, 2023, we granted a modification to a $56 million commercial real estate loan, which is 0.3% of the mortgage loans on real estate. The modification reflects a pay and accrue structure where the loan was converted to interest only, and the pay rate is lower than the current rate beginning in 2023; 0.35% in 2023 and stepping up annually until it reaches the existing coupon of 5.0% in 2027. Interest between the pay rate and the coupon rate will be accrued and added to the loan monthly. Additionally, any excess cash flow above the pay rate will be applied to the loan. For the accounting policy pertaining to our TDRs see Note 2 of the Notes to these Consolidated Financial Statements.
During the three months ended March 31, 2022, the Company identified an immaterial amount of TDRs.
Equity Securities
The table below presents a breakdown of unrealized and realized gains and (losses) on equity securities during the three months ended March 31, 2023 and 2022.
Unrealized and Realized Gains (Losses) from Equity Securities
Three Months Ended March 31,
20232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(3)$(40)
Net investment gains (losses) recognized on securities sold during the period— (13)
Unrealized and realized gains (losses) on equity securities $(3)$(53)
Trading Securities
As of March 31, 2023 and December 31, 2022, respectively, the fair value of the Company’s trading securities was $828 million and $677 million. As of March 31, 2023 and December 31, 2022, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $46 million and $39 million.
The table below shows a breakdown of net investment income (loss) from trading securities during the three months ended March 31, 2023 and 2022.
Net Investment Income (Loss) from Trading Securities
Three Months Ended March 31,
20232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$35 $(94)
Net investment gains (losses) recognized on securities sold during the period(1)2 
Unrealized and realized gains (losses) on trading securities34 (92)
Interest and dividend income from trading securities5 16 
Net investment income (loss) from trading securities$39 $(76)
Fixed maturities, at fair value using the fair value option
The table below shows a breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option during the three months ended March 31, 2023 and 2022.

Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option
Three Months Ended March 31,
20232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$4 $(5)
Net investment gains (losses) recognized on securities sold during the period(2)6 
Unrealized and realized gains (losses) from fixed maturities2 1 
Interest and dividend income from fixed maturities7 16 
Net investment income (loss) from fixed maturities$9 $17