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INVESTMENTS
 6 Months Ended
Jun. 30, 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 June 30, 2023 and December 31, 2022 was $614 million and $591 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 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)
June 30, 2023
Fixed Maturities:
Corporate (1)$50,420 $2 $121 $6,496 $44,043 
U.S. Treasury, government and agency
6,998 — 1 1,104 5,895 
States and political subdivisions622 — 9 78 553 
Foreign governments
894 — 3 129 768 
Residential mortgage-backed (2)1,389 — 1 100 1,290 
Asset-backed (3)9,741 — 9 281 9,469 
Commercial mortgage-backed3,889 — — 600 3,289 
Redeemable preferred stock41 — 3 — 44 
 
Amortized CostAllowance for Credit Losses Gross Unrealized GainsGross Unrealized LossesFair Value
 
 (in millions)
Total at June 30, 2023$73,994 $2 $147 $8,788 $65,351 
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 June 30, 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 pre-payment penalties.
Contractual Maturities of AFS Fixed Maturities
 Amortized Cost (Less Allowance for Credit Losses)Fair Value
 (in millions)
June 30, 2023
Contractual maturities:
Due in one year or less$1,510 $1,491 
Due in years two through five14,339 13,546 
Due in years six through ten17,371 15,778 
Due after ten years25,712 20,444 
Subtotal58,932 51,259 
Residential mortgage-backed1,389 1,290 
Asset-backed9,741 9,469 
Commercial mortgage-backed3,889 3,289 
Redeemable preferred stock 41 44 
Total at June 30, 2023$73,992 $65,351 

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 June 30,Six Months Ended June 30,
 
2023202220232022
 
(in millions)
Proceeds from sales$2,230 $3,344 $3,055 $10,735 
Gross gains on sales$5 $15 $7 $44 
Gross losses on sales$(43)$(227)$(69)$(591)
Net (increase) decrease in Allowance for Credit and Intent to Sell losses $(7)$2 $(63)$3 


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 June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Balance, beginning of period$89 $43 $36 $44 
Previously recognized impairments on securities that matured, paid, prepaid or sold(54)(13)(57)(15)
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 recognized6 1 9 1 
Additional credit losses this period on securities previously impaired3 1 4 2 
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, end of period$44 $32 $44 $32 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
(2)Amounts reflected for the six months ended June 30, 2023 represent AFS fixed maturities in an unrealized loss position, which the Company intends to sell in anticipation of Equitable Financial’s ordinary dividend to Holdings.
The tables that follow below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI.
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Three Months Ended June 30, 2023
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$(7,978)$33 $99 $(7,846)
Net investment gains (losses) arising during the period(710)— — (710)
Reclassification adjustment:
Included in net income (loss)46 — — 46 
Excluded from net income (loss)— — — — 
Other — — — — 
Impact of net unrealized investment gains (losses)— 3 139 142 
Net unrealized investment gains (losses) excluding credit losses(8,642)36 238 (8,368)
Net unrealized investment gains (losses) with credit losses1 — — 1 
Balance, end of period$(8,641)$36 $238 $(8,367)
Three Months Ended June 30, 2022
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$(1,287)$4 $269 $(1,014)
Net investment gains (losses) arising during the period(5,889)— — (5,889)
Reclassification adjustment:
Included in net income (loss)214 — — 214 
Excluded from net income (loss)— — — — 
Other— — — — 
Impact of net unrealized investment gains (losses)— 21 1,187 1,208 
Net unrealized investment gains (losses) excluding credit losses(6,962)25 1,456 (5,481)
Net unrealized investment gains (losses) with credit losses(3)— 1 (2)
Balance, end of period$(6,965)$25 $1,457 $(5,483)
Six Months Ended June 30, 2023
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$(9,606)$41 $440 $(9,125)
Net investment gains (losses) arising during the period845 — — 845 
Reclassification adjustment:
Included in net income (loss)126 — — 126 
Other— — — — 
Impact of net unrealized investment gains (losses)— (5)(203)(208)
Net unrealized investment gains (losses) excluding credit losses(8,635)36 237 (8,362)
Net unrealized investment gains (losses) with credit losses(6)— 1 (5)
Balance, end of period$(8,641)$36 $238 $(8,367)
Six Months Ended June 30, 2022
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of period$4,809 $(169)$(974)$3,666 
Net investment gains (losses) arising during the period(12,314)— — (12,314)
Reclassification adjustment:
Included in net income (loss)548 — — 548 
Other— — — — 
Impact of net unrealized investment gains (losses)— 194 2,429 2,623 
Net unrealized investment gains (losses) excluding credit losses(6,957)25 1,455 (5,477)
Net unrealized investment gains (losses) with credit losses(8)— 2 (6)
Balance, end of period$(6,965)$25 $1,457 $(5,483)

The following tables disclose the fair values and gross unrealized losses of the 5,196 issues as of June 30, 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)
June 30, 2023
Fixed Maturities:
Corporate$8,135 $322 $31,883 $6,173 $40,018 $6,495 
U.S. Treasury, government and agency1,508 166 4,320 938 5,828 1,104 
States and political subdivisions65 1 277 77 342 78 
Foreign governments58 3 615 126 673 129 
Residential mortgage-backed520 7 658 93 1,178 100 
Asset-backed1,347 11 6,718 270 8,065 281 
Commercial mortgage-backed235 8 2,989 592 3,224 600 
Total at June 30, 2023$11,868 $518 $47,460 $8,269 $59,328 $8,787 
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 June 30, 2023 and December 31, 2022 were $400 million and $327 million, respectively, representing 7.6% 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 June 30, 2023 and December 31, 2022, respectively, approximately $2.7 billion and $2.9 billion, or 3.7% and 4.0%, of the $74.0 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 $162 million and $208 million as of June 30, 2023 and December 31, 2022, respectively.
As of June 30, 2023 and December 31, 2022, respectively, the $8.3 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 June 30, 2023 or December 31, 2022. As of June 30, 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 June 30, 2023, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.
Securities Lending
The Company has entered into securities lending agreements with an agent bank whereby blocks of securities are loaned to third parties, primarily major brokerage firms. As of June 30, 2023, the estimated fair value of loaned securities was $28.0 million. The agreements require a minimum of 102% of the fair value of the loaned securities to be held as cash collateral, calculated daily. To further minimize the credit risks related to these programs, the financial condition of counterparties is monitored on a regular basis. As of June 30, 2023, cash collateral received in the amount of $28.6 million, was invested by the agent bank. A securities lending payable for the overnight and continuous loans is included in Other liabilities in the amount of cash collateral received. Securities lending transactions are used to generate income. Income and expenses associated with these transactions are reported as net investment income and were not material for the three and six months ended June 30, 2023.
Mortgage Loans on Real Estate
Accrued interest receivable on commercial and agricultural mortgage loans as of June 30, 2023 and December 31, 2022 was $76 million and $71 million, respectively. There was no accrued interest written off for commercial and agricultural mortgage loans for the six months ended June 30, 2023 and 2022.
As of June 30, 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 and six months ended June 30, 2023 and 2022 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$133 $47 $123 $57 
Current-period provision for expected credit losses7 11 17 1 
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — — 
Net change in allowance7 11 17 1 
Balance, end of period$140 $58 $140 $58 
Agricultural mortgages:
Balance, beginning of period$6 $6 $6 $5 
Current-period provision for expected credit losses(1)— (1)1 
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — — 
Net change in allowance(1)— (1)1 
Balance, end of period$5 $6 $5 $6 
Total allowance for credit losses$145 $64 $145 $64 

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 June 30, 2023 and December 31, 2022.

Loan to Value (“LTV”) Ratios (1)
June 30, 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%$190 $497 $129 $— $— $1,463 $— $— $2,279 
50% - 70%490 2,404 1,458 905 257 2,839 369 96 8,818 
70% - 90%244 363 497 463 290 1,600 — 35 3,492 
90% plus— — 34 — 92 253 — — 379 
Total commercial$924 $3,264 $2,118 $1,368 $639 $6,155 $369 $131 $14,968 
Agricultural:
0% - 50%$25 $163 $187 $241 $129 $826 $— $— $1,571 
50% - 70%15 187 168 201 65 318 — — 954 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
Total agricultural$40 $350 $355 $442 $194 $1,160 $— $— $2,541 
Total mortgage loans:
0% - 50%$215 $660 $316 $241 $129 $2,289 $— $— $3,850 
50% - 70%505 2,591 1,626 1,106 322 3,157 369 96 9,772 
70% - 90%244 363 497 463 290 1,616 — 35 3,508 
90% plus— — 34 — 92 253 — — 379 
Total mortgage loans$964 $3,614 $2,473 $1,810 $833 $7,315 $369 $131 $17,509 
Debt Service Coverage (“DSC”) Ratios (2)
June 30, 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$115 $687 $1,259 $1,113 $158 $2,960 $— $— $6,292 
1.8x to 2.0x— — 181 163 172 722 213 96 1,547 
1.5x to 1.8x— 476 391 32 255 1,016 92 — 2,262 
1.2x to 1.5x439 814 165 — — 822 — — 2,240 
1.0x to 1.2x363 828 73 60 54 540 64 35 2,017 
Less than 1.0x7 459 49 — — 95 — — 610 
Total commercial$924 $3,264 $2,118 $1,368 $639 $6,155 $369 $131 $14,968 
Agricultural:
Greater than 2.0x$5 $51 $39 $60 $21 $186 $— $— $362 
1.8x to 2.0x— 16 57 33 24 65 — — 195 
1.5x to 1.8x6 69 31 110 18 208 — — 442 
1.2x to 1.5x17 106 155 176 99 385 — — 938 
1.0x to 1.2x8 90 73 59 26 291 — — 547 
Less than 1.0x4 18 — 4 6 25 — — 57 
Total agricultural$40 $350 $355 $442 $194 $1,160 $— $— $2,541 
Total mortgage loans:
Greater than 2.0x$120 $738 $1,298 $1,173 $179 $3,146 $— $— $6,654 
1.8x to 2.0x— 16 238 196 196 787 213 96 1,742 
1.5x to 1.8x6 545 422 142 273 1,224 92 — 2,704 
1.2x to 1.5x456 920 320 176 99 1,207 — — 3,178 
1.0x to 1.2x371 918 146 119 80 831 64 35 2,564 
Less than 1.0x11 477 49 4 6 120 — — 667 
Total mortgage loans$964 $3,614 $2,473 $1,810 $833 $7,315 $369 $131 $17,509 
______________
(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— — — — — — — — — 
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 $16,610 
______________
(1)The LTV ratio is derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated annually for each mortgage loan.
(2)The DSC ratio is calculated using the most recently reported operating income results from property operations divided by annual debt service.
Past-Due and Nonaccrual Mortgage Loan Status
The following table provides information relating to the aging analysis of past-due mortgage loans as of June 30, 2023 and December 31, 2022, respectively.
Age Analysis of Past Due Mortgage Loans (1)
Accruing LoansNon-accruing LoansTotal LoansNon-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past DueCurrentTotal
30-59 Days60-89 Days90 Days or MoreTotal
(in millions)
June 30, 2023:
Mortgage loans:
Commercial$— $— $— $— $14,934 $14,934 $34 $14,968 $34 $1 
Agricultural15 4 12 31 2,491 2,522 19 2,541 3 — 
Total$15 $4 $12 $31 $17,425 $17,456 $53 $17,509 $37 $1 
Accruing LoansNon-accruing LoansTotal LoansNon-accruing Loans with No AllowanceInterest Income on Non-accruing Loans
Past DueCurrentTotal
30-59 Days60-89 Days90 Days or MoreTotal
(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 June 30, 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 June 30, 2023 and December 31, 2022.
Troubled Debt Restructuring
During the first quarter of 2023 we granted a modification to a $56 million commercial real estate loan, which was 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 and six months ended June 30, 2023 and 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 and six months ended June 30, 2023 and 2022 .
Unrealized and Realized Gains (Losses) from Equity Securities
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$5 $(70)$2 $(110)
Net investment gains (losses) recognized on securities sold during the period(3)2 (3)(11)
Unrealized and realized gains (losses) on equity securities $2 $(68)$(1)$(121)
Trading Securities
As of June 30, 2023 and December 31, 2022, respectively, the fair value of the Company’s trading securities was $873 million and $677 million. As of June 30, 2023 and December 31, 2022, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $47 million and $39 million.
The table below shows a breakdown of net investment income (loss) from trading securities during the three and six months ended June 30, 2023 and 2022.
Net Investment Income (Loss) from Trading Securities
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$11 $(108)$46 $(202)
Net investment gains (losses) recognized on securities sold during the period(1)4 (2)6 
Unrealized and realized gains (losses) on trading securities10 (104)44 (196)
Interest and dividend income from trading securities7 2 12 18 
Net investment income (loss) from trading securities$17 $(102)$56 $(178)
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 six months ended June 30, 2023 and 2022.

Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$15 $(8)$19 $(13)
Net investment gains (losses) recognized on securities sold during the period(12)— (14)6 
Unrealized and realized gains (losses) from fixed maturities3 (8)5 (7)
Interest and dividend income from fixed maturities(3)(17)4 (1)
Net investment income (loss) from fixed maturities$— $(25)$9 $(8)
Net Investment Income
The following tables provides the components of Net investment income by investment type.

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Fixed maturities$751 $622 $1,466 $1,239 
Mortgage loans on real estate198 138 375 276 
Other equity investments25 32 30 116 
Policy loans52 53 103 110 
Trading securities17 (102)56 (178)
Other investment income22 15 41 4 
Fixed maturities, at fair value using the fair value option(1)(25)9 (8)
Gross investment income (loss)1,064 733 2,080 1,559 
Investment expenses(28)(22)(54)(44)
Net investment income (loss)$1,036 $711 $2,026 $1,515 
Investment Gains (Losses), Net
Investment gains (losses), net, including changes in the valuation allowances and credit losses are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(in millions)
Fixed maturities$(47)$(213)$(127)$(548)
Mortgage loans on real estate(7)(11)(17)(2)
Other equity investments (1)— — — — 
Other(2)(8)1 (8)
Investment gains (losses), net$(56)$(232)$(143)$(558)
_____________
(1)    Investment gains (losses), net of Other equity investments includes Real Estate Held for production.

For the three and six months ended June 30, 2023 and 2022, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $0 million $1 million, $1 million and $1 million.