XML 25 R11.htm IDEA: XBRL DOCUMENT v3.24.2.u1
INVESTMENTS
 6 Months Ended
Jun. 30, 2024
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, 2024 and December 31, 2023 was $677 million and $626 million, respectively. There was no accrued interest written off for AFS fixed maturities for the three and six months ended June 30, 2024 and 2023.
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, 2024
Fixed Maturities:
Corporate (1)$52,490 $4 $209 $6,265 $46,430 
U.S. Treasury, government and agency
5,773 — — 1,362 4,411 
States and political subdivisions519 — 2 84 437 
Foreign governments
707 — 1 128 580 
Residential mortgage-backed (2)3,519 — 10 150 3,379 
Asset-backed (3)12,869 — 64 76 12,857 
Commercial mortgage-backed3,864 — 2 439 3,427 
Redeemable preferred stock56 — 3 1 58 
Total at June 30, 2024$79,797 $4 $291 $8,505 $71,579 
December 31, 2023:
Fixed Maturities:
Corporate (1)
$49,786 $4 $320 $5,360 $44,742 
U.S. Treasury, government and agency
5,735 — 2 1,106 4,631 
States and political subdivisions
614 — 9 74 549 
Foreign governments
719 — 3 111 611 
Residential mortgage-backed (2)2,470 — 18 133 2,355 
Asset-backed (3)11,058 — 52 109 11,001 
Commercial mortgage-backed3,595 — 2 515 3,082 
Redeemable preferred stock 56 — 3 — 59 
Total at December 31, 2023$74,033 $4 $409 $7,408 $67,030 
______________
(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, 2024 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 pre-pay 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, 2024
Contractual maturities:
Due in one year or less$2,187 $2,158 
Due in years two through five15,150 14,599 
Due in years six through ten17,658 16,426 
Due after ten years24,490 18,675 
Subtotal59,485 51,858 
Residential mortgage-backed3,519 3,379 
Asset-backed12,869 12,857 
Commercial mortgage-backed3,864 3,427 
Redeemable preferred stock 56 58 
Total at June 30, 2024$79,793 $71,579 

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,
 
2024202320242023
 
(in millions)
Proceeds from sales$1,331 $2,230 $1,775 $3,055 
Gross gains on sales$5 $5 $5 $7 
Gross losses on sales$(3)$(43)$(27)$(69)
Net (increase) decrease in Allowance for Credit and Intent to Sell losses $(3)$(7)$(5)$(63)

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,
2024202320242023
(in millions)
Balance, beginning of period$48 $89 $48 $36 
Previously recognized impairments on securities that matured, paid, prepaid or sold(4)(54)(8)(57)
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 6 6 9 
Additional credit losses this period on securities previously impaired3 3 4 4 
Balance, end of period$50 $44 $50 $44 
______________
(1)Represents circumstances where the Company determined in the current period that it intends to sell the security, or it is more likely than not that it will be required to sell the security before recovery of the security’s amortized cost.
(2)Amounts reflected for the six months ended June 30, 2023 represent AFS fixed maturities in an unrealized loss position, which the Company intended to sell in anticipation of Equitable Financial’s ordinary dividend to Holdings.
The tables below present a roll-forward of net unrealized investment gains (losses) recognized in AOCI:
Net Unrealized Gains (Losses) on AFS Fixed Maturities
Three Months Ended June 30, 2024
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ LiabilitiesDeferred Income Tax Asset (Liability)AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses)
(in millions)
Balance, beginning of year$(7,660)$63 $358 $(7,239)
Net investment gains (losses) arising during the period(555)— — (555)
Reclassification adjustment:
Included in net income (loss)— — — — 
Excluded from net income (loss)— — — — 
Other — — (4)(4)
Impact of net unrealized investment gains (losses)— 4 117 121 
Net unrealized investment gains (losses) excluding credit losses(8,215)67 471 (7,677)
Net unrealized investment gains (losses) with credit losses1 — — 1 
Balance, end of year$(8,214)$67 $471 $(7,676)
Three Months Ended June 30, 2023
Balance, beginning of year$(7,978)$33 $441 $(7,504)
Net investment gains (losses) arising during the period(710)— — (710)
Reclassification adjustment:
Included in net income (loss)46 — — 46 
Excluded from net income (loss)— — — — 
Other— — (139)(139)
Impact of net unrealized investment gains (losses)— 3 139 142 
Net unrealized investment gains (losses) excluding credit losses(8,642)36 441 (8,165)
Net unrealized investment gains (losses) with credit losses1 — — 1 
Balance, end of year$(8,641)$36 $441 $(8,164)

Six Months Ended June 30, 2024
Net Unrealized Gains (Losses) on InvestmentsPolicyholders’ Liabilities
Deferred Income Tax Asset (Liability) (1)
AOCI Gain (Loss) Related to Net Unrealized Investment Gains (Losses) (1)
(in millions)
Balance, beginning of period$(6,999)$50 $226 $(6,723)
Net investment gains (losses) arising during the period(1,238)— — (1,238)
Reclassification adjustment:
Included in net income (loss)26 — — 26 
Other— — (7)(7)
Impact of net unrealized investment gains (losses)— 17 251 268 
Net unrealized investment gains (losses) excluding credit losses(8,211)67 470 (7,674)
Net unrealized investment gains (losses) with credit losses(3)— 1 (2)
Balance, end of period$(8,214)$67 $471 $(7,676)
Six Months Ended June 30, 2023
Balance, beginning of period$(9,606)$41 $440 $(9,125)
Net investment gains (losses) arising during the period845 — — 845 
Reclassification adjustment:
Included in net income (loss)126 — — 126 
Other— — 203 203 
Impact of net unrealized investment gains (losses)— (5)(203)(208)
Net unrealized investment gains (losses) excluding credit losses(8,635)36 440 (8,159)
Net unrealized investment gains (losses) with credit losses(6)— 1 (5)
Balance, end of period$(8,641)$36 $441 $(8,164)
_____________
(1)Certain balances were revised from previously filed financial statements.

The following tables disclose the fair values and gross unrealized losses of the 4,541 issues as of June 30, 2024 and the 4,402 issues as of December 31, 2023 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, 2024
Fixed Maturities:
Corporate$5,860 $143 $31,508 $6,118 $37,368 $6,261 
U.S. Treasury, government and agency15 — 4,333 1,362 4,348 1,362 
States and political subdivisions65 — 276 84 341 84 
Foreign governments64 2 482 126 546 128 
Residential mortgage-backed1,136 8 1,051 142 2,187 150 
Asset-backed1,763 5 1,228 71 2,991 76 
Commercial mortgage-backed241 9 2,861 430 3,102 439 
Total at June 30, 2024$9,144 $167 $41,739 $8,333 $50,883 $8,500 
Less Than 12 Months12 Months or LongerTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
(in millions)
December 31, 2023:
Fixed Maturities:
Corporate$2,228 $126 $33,135 $5,231 $35,363 $5,357 
U.S. Treasury, government and agency111 2 4,447 1,104 4,558 1,106 
States and political subdivisions10 — 300 74 310 74 
Foreign governments15 2 517 109 532 111 
Residential mortgage-backed210 2 1,044 131 1,254 133 
Asset-backed528 1 5,522 108 6,050 109 
Commercial mortgage-backed92 11 2,856 504 2,948 515 
Total at December 31, 2023$3,194 $144 $47,821 $7,261 $51,015 $7,405 

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 0.8% of total corporate securities. The largest exposures to a single issuer of corporate securities held as of June 30, 2024 and December 31, 2023 were $379 million and $360 million, respectively, representing 11.2% and 8.2% 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, 2024 and December 31, 2023, respectively, approximately $2.1 billion and $2.6 billion, or 2.6% and 3.5%, of the $79.8 billion and $74.0 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 $101 million and $101 million as of June 30, 2024 and December 31, 2023, respectively.
As of June 30, 2024 and December 31, 2023, respectively, the $8.3 billion and $7.3 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, 2024 or December 31, 2023. As of June 30, 2024 and December 31, 2023, the Company did not intend to sell the securities nor was it more likely than not 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, 2024, the Company determined that the unrealized loss was primarily due to increases in interest rates and credit spreads.
Securities Lending
Beginning in 2023, 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, 2024 and December 31, 2023, the estimated fair value of loaned securities was $149 million and $113 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, 2024 and December 31, 2023, cash collateral received in the amount of $152 million and $116 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 June 30, 2024 and December 31, 2023.
Mortgage Loans on Real Estate
In September 2023, the Company began investing in residential mortgage loans. Accrued interest receivable on commercial, agricultural and residential mortgage loans as of June 30, 2024 and December 31, 2023 was $90 million
and $82 million, respectively. There was no accrued interest written off for commercial, agricultural and residential mortgage loans for the six months ended June 30, 2024 and 2023.
As of June 30, 2024, the Company foreclosed on one commercial mortgage loan that had an amortized cost of $108 million and an associated allowance of $54 million, that it re-acquired as wholly owned real estate with a cost of $56 million. As of June 30, 2024 and December 31, 2023, there were no other mortgage loans for which foreclosure was probable.
Allowance for Credit Losses on Mortgage Loans
The change in the allowance for credit losses for commercial, agricultural and residential mortgage loans were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)
Allowance for credit losses on mortgage loans:
Commercial mortgages:
Balance, beginning of period$288 $133 $272 $123 
Current-period provision for expected credit losses9 7 25 17 
Write-offs charged against the allowance(75)— (75)— 
Recoveries of amounts previously written off— — — — 
Net change in allowance(66)7 (50)17 
Balance, end of period$222 $140 $222 $140 
Agricultural mortgages:
Balance, beginning of period$6 $6 $6 $6 
Current-period provision for expected credit losses3 (1)3 (1)
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — — 
Net change in allowance3 (1)3 (1)
Balance, end of period$9 $5 $9 $5 
Residential mortgages:
Balance, beginning of period$3 $— $1 $— 
Current-period provision for expected credit losses— — 2 — 
Write-offs charged against the allowance— — — — 
Recoveries of amounts previously written off— — — — 
Net change in allowance— — 2 — 
Balance, end of period$3 $— $3 $— 
Total allowance for credit losses$234 $145 $234 $145 

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 Company’s commercial and agricultural mortgage loans segregated by risk rating exposure were as follows:
Loan to Value (“LTV”) Ratios (1) (3)
June 30, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%$— $309 $140 $130 $35 $1,591 $— $— $2,205 
50% - 70%318 927 1,326 664 716 2,305 495 206 6,957 
70% - 90%— 242 1,276 1,145 515 1,695 77 36 4,986 
90% plus— — 467 158 91 833 — — 1,549 
Total commercial$318 $1,478 $3,209 $2,097 $1,357 $6,424 $572 $242 $15,697 
Agricultural:
0% - 50%$23 $101 $159 $188 $248 $903 $— $— $1,622 
50% - 70%97 60 140 149 172 306 — — 924 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
Total agricultural$120 $161 $299 $337 $420 $1,225 $— $— $2,562 
Total commercial and agricultural mortgage loans:
0% - 50%$23 $410 $299 $318 $283 $2,494 $— $— $3,827 
50% - 70%415 987 1,466 813 888 2,611 495 206 7,881 
70% - 90%— 242 1,276 1,145 515 1,711 77 36 5,002 
90% plus— — 467 158 91 833 — — 1,549 
Total commercial and agricultural mortgage loans
$438 $1,639 $3,508 $2,434 $1,777 $7,649 $572 $242 $18,259 


Debt Service Coverage (“DSC”) Ratios (2) (3)
June 30, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x$— $175 $693 $1,222 $1,131 $3,544 $— $— $6,765 
June 30, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
1.8x to 2.0x— — — 208 166 549 231 206 1,360 
1.5x to 1.8x40 141 808 143 — 992 113 — 2,237 
1.2x to 1.5x205 684 1,168 429 60 838 — — 3,384 
1.0x to 1.2x73 470 369 61 — 443 228 36 1,680 
Less than 1.0x— 8 171 34 — 58 — — 271 
Total commercial$318 $1,478 $3,209 $2,097 $1,357 $6,424 $572 $242 $15,697 
Agricultural:
Greater than 2.0x$8 $7 $42 $34 $59 $182 $— $— $332 
1.8x to 2.0x11 17 24 55 29 80 — — 216 
1.5x to 1.8x47 12 49 28 110 206 — — 452 
1.2x to 1.5x20 46 105 140 158 428 — — 897 
1.0x to 1.2x23 47 55 69 56 297 — — 547 
Less than 1.0x11 32 24 11 8 32 — — 118 
Total agricultural$120 $161 $299 $337 $420 $1,225 $— $— $2,562 
Total commercial and agricultural mortgage loans:
Greater than 2.0x$8 $182 $735 $1,256 $1,190 $3,726 $— $— $7,097 
1.8x to 2.0x11 17 24 263 195 629 231 206 1,576 
1.5x to 1.8x87 153 857 171 110 1,198 113 — 2,689 
1.2x to 1.5x225 730 1,273 569 218 1,266 — — 4,281 
1.0x to 1.2x96 517 424 130 56 740 228 36 2,227 
Less than 1.0x11 40 195 45 8 90 — — 389 
Total commercial and agricultural mortgage loans
$438 $1,639 $3,508 $2,434 $1,777 $7,649 $572 $242 $18,259 
______________
(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.
(3)Residential mortgage loans are excluded from the above tables.
LTV Ratios (1) (3)
December 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
0% - 50%$249 $164 $129 $35 $— $1,557 $— $— $2,134 
50% - 70%924 1,916 671 750 299 2,319 463 96 7,438 
70% - 90%308 1,197 1,236 523 245 1,384 37 35 4,965 
90% plus— — 66 54 92 858 — — 1,070 
Total commercial$1,481 $3,277 $2,102 $1,362 $636 $6,118 $500 $131 $15,607 
Agricultural:
0% - 50%$102 $162 $191 $235 $132 $802 $— $— $1,624 
50% - 70%60 146 152 201 58 288 — — 905 
70% - 90%— — — — — 16 — — 16 
90% plus— — — — — — — — — 
Total agricultural$162 $308 $343 $436 $190 $1,106 $— $— $2,545 
Total commercial and agricultural mortgage loans:
0% - 50%$351 $326 $320 $270 $132 $2,359 $— $— $3,758 
50% - 70%984 2,062 823 951 357 2,607 463 96 8,343 
70% - 90%308 1,197 1,236 523 245 1,400 37 35 4,981 
90% plus— — 66 54 92 858 — — 1,070 
Total commercial and agricultural mortgage loans
$1,643 $3,585 $2,445 $1,798 $826 $7,224 $500 $131 $18,152 

DSC Ratios (2) (3)
December 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
Commercial and agricultural mortgage loans:
Commercial:
Greater than 2.0x$175 $693 $1,125 $1,135 $249 $3,273 $— $— $6,650 
1.8x to 2.0x— — 182 167 171 662 383 96 1,661 
1.5x to 1.8x80 1,060 234 — 162 924 — — 2,460 
1.2x to 1.5x690 687 457 — 11 838 41 — 2,724 
December 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorRevolving Loans Amortized Cost BasisRevolving Loans Converted to Term Loans Amortized Cost BasisTotal
(in millions)
1.0x to 1.2x528 668 38 — 43 317 76 35 1,705 
Less than 1.0x8 169 66 60 — 104 — — 407 
Total commercial$1,481 $3,277 $2,102 $1,362 $636 $6,118 $500 $131 $15,607 
Agricultural:
Greater than 2.0x$7 $50 $36 $59 $20 $179 $— $— $351 
1.8x to 2.0x18 16 56 33 23 61 — — 207 
1.5x to 1.8x12 50 31 109 17 193 — — 412 
1.2x to 1.5x46 111 148 170 98 365 — — 938 
1.0x to 1.2x47 57 68 57 26 284 — — 539 
Less than 1.0x32 24 4 8 6 24 — — 98 
Total agricultural$162 $308 $343 $436 $190 $1,106 $— $— $2,545 
Total commercial and agricultural mortgage loans:
Greater than 2.0x$182 $743 $1,161 $1,194 $269 $3,452 $— $— $7,001 
1.8x to 2.0x18 16 238 200 194 723 383 96 1,868 
1.5x to 1.8x92 1,110 265 109 179 1,117 — — 2,872 
1.2x to 1.5x736 798 605 170 109 1,203 41 — 3,662 
1.0x to 1.2x575 725 106 57 69 601 76 35 2,244 
Less than 1.0x40 193 70 68 6 128 — — 505 
Total commercial and agricultural mortgage loans
$1,643 $3,585 $2,445 $1,798 $826 $7,224 $500 $131 $18,152 
______________
(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.
(3)Residential mortgage loans are excluded from the above tables.
The amortized cost of residential mortgage loans by credit quality indicator and origination year was as follows:
June 30, 2024
Amortized Cost Basis by Origination Year
20242023202220212020PriorTotal
(in millions)
Performance indicators:
Performing
$72 $380 $184 $135 $4 $2 $777 
Nonperforming
— — — — — — — 
Total
$72 $380 $184 $135 $4 $2 $777 
December 31, 2023
Amortized Cost Basis by Origination Year
20232022202120202019PriorTotal
(in millions)
Performance indicators:
Performing
$98 $121 $74 $2 $1 $2 $298 
Nonperforming
— — — — — — — 
Total
$98 $121 $74 $2 $1 $2 $298 

Past-Due and Nonaccrual Mortgage Loan Status
The aging analysis of past-due mortgage loans were as follows:
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, 2024:
Mortgage loans:
Commercial$— $— $— $— $15,664 $15,664 $33 $15,697 $— $— 
Agricultural16 6 27 49 2,477 2,526 36 2,562 — — 
Residential
— — — — 777 777 — 777 — — 
Total$16 $6 $27 $49 $18,918 $18,967 $69 $19,036 $— $— 
December 31, 2023:
Mortgage loans:
Commercial$32 $— $— $32 $15,341 $15,373 $234 $15,607 $— $7 
Agricultural7 5 40 52 2,474 2,526 19 2,545 — — 
Residential
— — — — 298 298 — 298 — — 
Total$39 $5 $40 $84 $18,113 $18,197 $253 $18,450 $— $7 
_______________
(1)Amounts presented at amortized cost basis.
As of June 30, 2024 and December 31, 2023, the amortized cost of problem mortgage loans that had been classified as non-accrual loans were $36 million and $127 million, respectively.
Troubled Debt Restructuring
There was one TDR during the three months ended June 30, 2024. The Company granted a modification splitting the commercial mortgage loan into two notes. One note retaining the original loan terms and the second note with an increased interest rate to market terms and required management of excess cash. The loans have an amortized cost of $65.2 million. The impact to Investment income or gains (losses) as a result of this modification for the three months ended June 30, 2024 was not material to the consolidated financial statements.
During 2023, the Company granted modification of interest rates on four commercial mortgage loans, but not to market terms and required management of excess cash. The loans have an amortized cost of $236 million which represents 1.5% of total commercial mortgage loans. Two of the four loans also have term extensions of 17 months to 4 years. The impact to Investment income or gains (losses) as a result of these modifications in 2023 was not material to the consolidated financial statements. For the accounting policy pertaining to our TDRs see Note 2 of the Notes to these Consolidated Financial Statements.
The above modifications are performing in accordance with their restructured terms.
Equity Securities
The breakdown of unrealized and realized gains and (losses) on equity securities was as follows:
Unrealized and Realized Gains (Losses) from Equity Securities
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(6)$5 $9 $2 
Net investment gains (losses) recognized on securities sold during the period3 (3)2 (3)
Unrealized and realized gains (losses) on equity securities $(3)$2 $11 $(1)
Trading Securities
As of June 30, 2024 and December 31, 2023, respectively, the fair value of the Company’s trading securities was $2.0 billion and $1.1 billion. As of June 30, 2024 and December 31, 2023, respectively, trading securities included the General Account’s investment in Separate Accounts had carrying values of $56 million and $49 million.
The breakdown of net investment income (loss) from trading securities was as follows:
Net Investment Income (Loss) from Trading Securities
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$6 $11 $42 $46 
Net investment gains (losses) recognized on securities sold during the period— (1)1 (2)
Unrealized and realized gains (losses) on trading securities6 10 43 44 
Interest and dividend income from trading securities21 7 32 12 
Net investment income (loss) from trading securities$27 $17 $75 $56 
Fixed maturities, at fair value using the fair value option
The breakdown of net investment income (loss) from fixed maturities, at fair value using the fair value option were as follows:
Net Investment Income (Loss) from Fixed Maturities, at Fair Value using the Fair Value Option
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)
Net investment gains (losses) recognized during the period on securities held at the end of the period$(2)$15 $(5)$19 
Net investment gains (losses) recognized on securities sold during the period2 (12)3 (14)
Unrealized and realized gains (losses) from fixed maturities— 3 (2)5 
Interest and dividend income from fixed maturities23 (3)28 4 
Net investment income (loss) from fixed maturities$23 $— $26 $9 
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,
2024202320242023
(in millions)
Fixed maturities$842 $751 $1,663 $1,466 
Mortgage loans on real estate239 198 473 375 
Other equity investments(8)25 52 30 
Policy loans56 52 110 103 
Trading securities27 17 75 56 
Other investment income20 22 45 41 
Fixed maturities, at fair value using the fair value option23 — 26 9 
Gross investment income (loss)1,199 1,065 2,444 2,080 
Investment expenses(33)(29)(59)(54)
Net investment income (loss)$1,166 $1,036 $2,385 $2,026 
Investment Gains (Losses), Net
Investment gains (losses), net, including changes in the valuation allowances and credit losses were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in millions)
Fixed maturities$(1)$(47)$(27)$(127)
Mortgage loans on real estate(14)(7)(32)(17)
Other(1)(2)4 1 
Investment gains (losses), net$(16)$(56)$(55)$(143)

For the three and six months ended June 30, 2024 and 2023, respectively, investment results passed through to certain participating group annuity contracts as interest credited to policyholders’ account balances totaled $0 million, $1 million, $0 million and $1 million.