XML 30 R9.htm IDEA: XBRL DOCUMENT v3.22.4
Investments
 12 Months Ended
Dec. 31, 2022
Investments [Abstract]  
Investments
2.
 
INVESTMENTS
 
The
 
tables
 
below
 
present
 
the
 
amortized
 
cost,
 
allowance
 
for
 
credit
 
losses,
 
gross
 
unrealized
appreciation/(depreciation)
 
and
 
market
 
value
 
of
 
fixed
 
maturity
 
securities
 
-
 
available
 
for
 
sale
 
for
 
the
 
periods
indicated.
At December 31, 2022
Amortized
Allowance for
Unrealized
Unrealized
Fair
(Dollars in millions)
Cost
Credit Losses
Appreciation
Depreciation
Value
Fixed maturity securities - available for sale:
U.S. Treasury securities and obligations of
 
U.S. government agencies and corporations
$
1,334
$
-
$
6
$
(82)
$
1,257
Obligations of U.S. states and political subdivisions
444
-
2
(32)
413
Corporate securities
7,044
(45)
31
(561)
6,469
Asset-backed securities
4,229
-
5
(171)
4,063
Mortgage-backed securities
Commercial
1,023
-
-
(105)
919
Agency residential
3,382
-
7
(290)
3,099
Non-agency residential
5
-
-
(1)
4
Foreign government securities
1,586
-
8
(179)
1,415
Foreign corporate securities
5,143
(10)
23
(562)
4,596
Total fixed maturity securities - available for sale
$
24,191
$
(54)
$
81
$
(1,982)
$
22,236
(Some amounts may not reconcile due to rounding.)
At December 31, 2021
Amortized
Allowance for
Unrealized
Unrealized
Fair
(Dollars in millions)
Cost
Credit Losses
Appreciation
Depreciation
Value
Fixed maturity securities - available for sale:
U.S. Treasury securities and obligations of
 
U.S. government agencies and corporations
$
1,407
$
-
$
24
$
(10)
$
1,421
Obligations of U.S. states and political subdivisions
559
-
29
(1)
587
Corporate securities
7,444
(19)
195
(63)
7,557
Asset-backed securities
3,579
(8)
22
(12)
3,582
Mortgage-backed securities
Commercial
1,032
-
38
(6)
1,064
Agency residential
2,361
-
33
(19)
2,375
Non-agency residential
7
-
-
-
7
Foreign government securities
1,424
-
42
(28)
1,438
Foreign corporate securities
4,251
(3)
95
(65)
4,279
Total fixed maturity securities - available for sale
$
22,064
$
(30)
$
478
$
(203)
$
22,308
(Some amounts may not reconcile due to rounding.)
The
 
following
 
table
 
shows
 
amortized
 
cost,
 
allowance
 
for
 
credit
 
losses,
 
gross
 
unrealized
appreciation/(depreciation) and fair
 
value of fixed maturity securities held to
 
maturity for the periods indicated:
At December 31, 2022
Amortized
Allowance for
Unrealized
Unrealized
Fair
(Dollars in millions)
Cost
Credit Losses
Appreciation
Depreciation
Value
Fixed maturity securities - held to maturity:
Corporate securities
$
152
$
(2)
$
-
$
(6)
$
144
Asset-backed securities
661
(6)
2
(15)
642
Mortgage-backed securities
-
Commercial
7
-
-
-
7
Foreign corporate securities
28
(1)
2
-
28
Total fixed maturity securities - held to maturity
$
848
$
(9)
$
3
$
(22)
$
821
(Some amounts may not reconcile due
 
to rounding.)
The amortized
 
cost
 
and
 
market
 
value
 
of
 
fixed
 
maturity
 
securities
 
available
 
for
 
sale
 
are
 
shown
 
in
 
the
 
following
table
 
by
 
contractual
 
maturity.
 
Mortgage-backed
 
securities
 
are
 
generally
 
more
 
likely
 
to
 
be
 
prepaid
 
than
 
other
fixed maturity
 
securities. As the
 
stated maturity
 
of such securities may
 
not be indicative
 
of actual maturities,
 
the
totals for mortgage-backed
 
and asset-backed
 
securities are shown separately.
At December 31, 2022
At December 31, 2021
Amortized
Fair
Amortized
Fair
(Dollars in millions)
Cost
Value
Cost
Value
Fixed maturity securities – available for sale:
 
Due in one year or less
$
1,331
$
1,314
$
1,399
$
1,398
 
Due after one year through five years
8,131
7,546
7,075
7,154
 
Due after five years through ten years
4,636
4,057
5,004
5,101
 
Due after ten years
1,454
1,233
1,606
1,627
Asset-backed securities
4,229
4,063
3,579
3,582
Mortgage-backed securities:
Commercial
1,023
919
1,032
1,064
Agency residential
3,382
3,099
2,361
2,375
Non-agency residential
5
4
7
7
Total fixed maturity securities -available for sale
$
24,191
$
22,236
$
22,064
$
22,308
(Some amounts may not reconcile due to rounding.)
The amortized
 
cost and
 
fair value
 
of fixed
 
maturity securities
 
held to
 
maturity are
 
shown in
 
the following
 
table
by
 
contractual
 
maturity.
 
Mortgage-backed
 
securities
 
are
 
generally
 
more
 
likely
 
to
 
be
 
prepaid
 
than
 
other
 
fixed
maturity securities. As the stated
 
maturity of such securities may not be indicative
 
of actual maturities, the totals
for mortgage-backed and
 
asset-backed securities
 
are shown separately.
At December 31, 2022
Amortized
Fair
(Dollars in millions)
Cost
Value
Fixed maturity securities – held to maturity:
 
Due in one year or less
$
5
$
5
 
Due after one year through five years
63
61
 
Due after five years through ten years
43
41
 
Due after ten years
68
65
Asset-backed securities
661
642
Mortgage-backed securities:
Commercial
7
7
Total fixed maturity securities - held to maturity
$
848
$
821
(Some amounts may not reconcile due
 
to rounding.)
During
 
2022,
 
the
 
Company
 
re-designated
 
a
 
portion
 
of
 
its
 
fixed
 
maturity
 
securities
 
from
 
its
 
fixed
 
maturity
 
–
available
 
for
 
sale
 
portfolio
 
to
 
its
 
fixed
 
maturity
 
–
 
held
 
to
 
maturity
 
portfolio.
 
The
 
fair
 
value
 
of
 
the
 
securities
reclassified at
 
the date
 
of transfer
 
was $
722
 
million, net
 
of allowance
 
for current
 
expected
 
credit losses,
 
which
was subsequently recognized
 
as the new amortized
 
cost basis.
 
As of the date of transfer,
 
these securities had an
unrealized
 
loss
 
of
 
$
53
 
million,
 
which
 
remained
 
in
 
accumulated
 
other
 
comprehensive
 
income
 
on
 
the
 
balance
sheet and
 
will be
 
amortized
 
into
 
income through
 
an adjustment
 
to
 
the yields
 
of the
 
underlying
 
securities over
the remaining life of the securities.
 
The Company evaluated
 
fixed maturity
 
securities classified as
 
held to maturity
 
for current
 
expected credit
 
losses
as of
 
December 31,
 
2022 utilizing
 
risk characteristics
 
of each
 
security,
 
including credit
 
rating, remaining
 
time to
maturity,
 
adjusted
 
for
 
prepayment
 
considerations,
 
and
 
subordination
 
level,
 
and
 
applying
 
default
 
and
 
recovery
rates,
 
which
 
include
 
the
 
incorporation
 
of
 
historical
 
credit
 
loss
 
experience
 
and
 
macroeconomic
 
forecasts,
 
to
develop an estimate
 
of current expected
 
credit losses. These
 
fixed maturities classified
 
as held to maturity
 
are of
a high credit quality and are all rated
 
investment grade as of December
 
31, 2022.
 
The changes
 
in net
 
unrealized
 
appreciation
 
(depreciation)
 
for the
 
Company’s
 
investments
 
are derived
 
from the
following sources for the periods
 
indicated:
Years Ended December 31,
(Dollars in millions)
2022
2021
Increase (decrease) during the period between the fair value and cost
of investments carried at fair value, and deferred taxes thereon:
Fixed maturity securities and short-term investments
$
(2,225)
$
(542)
Change in unrealized appreciation (depreciation), pre-tax
(2,225)
(542)
Deferred tax benefit (expense)
277
58
Change in unrealized appreciation (depreciation),
 
net of deferred taxes, included in shareholders’ equity
 
$
(1,948)
$
(485)
(Some amounts may not reconcile due to rounding.)
The
 
tables
 
below
 
display
 
the
 
aggregate
 
market
 
value
 
and
 
gross
 
unrealized
 
depreciation
 
of
 
fixed
 
maturity
securities,
 
by
 
security
 
type
 
and
 
contractual
 
maturity,
 
in
 
each
 
case
 
subdivided
 
according
 
to
 
length
 
of
 
time
 
that
individual securities had been in a continuous unrealized
 
loss position for the periods indicated.
Duration of Unrealized Loss at December
 
31, 2022 By Security Type
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Unrealized
Unrealized
Unrealized
(Dollars in millions)
Fair Value
Depreciation
Fair Value
Depreciation
Fair Value
Depreciation
Fixed maturity securities - available for
 
sale:
U.S. Treasury securities and
 
obligations of
U.S. government agencies and corporations
$
668
$
(31)
$
487
$
(52)
$
1,155
$
(82)
Obligations of U.S. states and
 
political subdivisions
235
(23)
27
(9)
261
(32)
Corporate securities
4,143
(326)
1,316
(234)
5,459
(561)
Asset-backed securities
3,204
(142)
456
(29)
3,661
(171)
Mortgage-backed securities
Commercial
806
(90)
101
(15)
907
(105)
Agency residential
1,905
(132)
870
(158)
2,776
(289)
Non-agency residential
4
-
1
(1)
4
-
Foreign government securities
985
(100)
321
(79)
1,306
(179)
Foreign corporate securities
3,264
(372)
853
(189)
4,117
(561)
Total
 
$
15,213
$
(1,217)
$
4,432
$
(764)
$
19,645
$
(1,982)
Securities where an allowance for credit
 
loss was recorded
2
-
-
-
2
-
Total fixed
 
maturity securities - available for
 
sale
$
15,215
$
(1,217)
$
4,432
$
(764)
$
19,647
$
(1,982)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December
 
31, 2022 By Maturity
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Unrealized
Unrealized
Unrealized
(Dollars in millions)
Fair Value
Depreciation
Fair Value
Depreciation
Fair Value
Depreciation
Fixed maturity securities - available for
 
sale:
Due in one year or less
$
989
$
(19)
$
40
$
(7)
$
1,029
$
(26)
Due in one year through five years
4,935
(383)
1,645
(209)
6,580
(592)
Due in five years through ten years
2,698
(360)
911
(230)
3,609
(590)
Due after ten years
672
(91)
408
(116)
1,080
(207)
Asset-backed securities
3,204
(142)
456
(29)
3,661
(171)
Mortgage-backed securities
2,715
(222)
972
(173)
3,687
(395)
Total
$
15,213
$
(1,217)
$
4,432
$
(764)
$
19,645
$
(1,982)
Securities where an allowance for credi
 
t
 
loss was recorded
2
-
-
-
2
-
Total fixed
 
maturity securities - available for
 
sale
$
15,215
$
(1,217)
$
4,432
$
(764)
$
19,647
$
(1,982)
(Some amounts may not reconcile due to rounding.)
The aggregate
 
market
 
value and
 
gross unrealized
 
losses related
 
to investments
 
in an
 
unrealized loss
 
position at
December 31, 2022 were $
19.6
 
billion and $
2.0
 
billion, respectively.
 
The market value
 
of securities for the single
issuer
 
(the
 
United
 
States
 
government)
 
whose
 
securities
 
comprised
 
the
 
largest
 
unrealized
 
loss
 
position
 
at
December 31, 2022,
 
did not exceed
5.2
% of the
 
overall market
 
value of the
 
Company’s
 
fixed maturity
 
securities.
 
The market value of the securities
 
for the issuer with the second largest
 
unrealized loss comprised less
 
than
0.2
%
of the Company’s
 
fixed maturity
 
securities.
 
In addition, as indicated
 
on the above table,
 
there was no
 
significant
concentration of unrealized
 
losses in any one market
 
sector.
 
The $
1.2
 
billion of unrealized
 
losses related to
 
fixed
maturity securities that
 
have been in an
 
unrealized loss position
 
for less than one
 
year were generally
 
comprised
of
 
domestic
 
and
 
foreign
 
corporate
 
securities,
 
asset-backed
 
securities,
 
agency
 
residential
 
mortgage-backed
securities and
 
foreign
 
government
 
securities.
 
Of these
 
unrealized
 
losses, $
1.1
 
billion were
 
related
 
to securities
that
 
were
 
rated
 
investment
 
grade
 
by
 
at
 
least
 
one
 
nationally
 
recognized
 
statistical
 
rating
 
agency.
 
The
 
$
764
million of
 
unrealized
 
losses related
 
to fixed
 
maturity securities
 
in an
 
unrealized
 
loss position
 
for more
 
than one
year
 
related
 
primarily
 
to
 
domestic
 
and
 
foreign
 
corporate
 
securities,
 
agency
 
residential
 
mortgage-backed
securities and
 
foreign government
 
securities.
 
Of these unrealized
 
losses, $
732
 
million were
 
related to
 
securities
that were rated
 
investment
 
grade by
 
at least one
 
nationally recognized
 
statistical
 
rating agency.
 
In all instances,
there
 
were
 
no projected
 
cash
 
flow shortfalls
 
to
 
recover
 
the full
 
book
 
value
 
of the
 
investments
 
and the
 
related
interest obligations.
 
The mortgage-backed securities still
 
have excess credit coverage
 
and are current on interest
and principal payments.
 
The
 
Company,
 
given
 
the
 
size
 
of
 
its
 
investment
 
portfolio
 
and
 
capital
 
position,
 
does
 
not
 
have
 
the
 
intent
 
to
 
sell
these securities; and it is more
 
likely than not that
 
the Company will not have
 
to sell the security before
 
recovery
of
 
its
 
cost
 
basis.
 
In
 
addition,
 
all
 
securities
 
currently
 
in
 
an
 
unrealized
 
loss
 
position
 
are
 
current
 
with
 
respect
 
to
principal and interest payments.
 
The
 
tables
 
below
 
display
 
the
 
aggregate
 
market
 
value
 
and
 
gross
 
unrealized
 
depreciation
 
of
 
fixed
 
maturity
securities,
 
by
 
security
 
type
 
and
 
contractual
 
maturity,
 
in
 
each
 
case
 
subdivided
 
according
 
to
 
length
 
of
 
time
 
that
individual securities
 
had been
 
in a
 
continuous
 
unrealized
 
loss position
 
for the
 
periods indicated.
 
The
 
amounts
presented
 
in
 
the
 
tables
 
below
 
include
 
$
16
 
million
 
of
 
market
 
value
 
and
 
$
(0.4)
 
million
 
of
 
gross
 
unrealized
depreciation as
 
of December
 
31, 2021
 
related
 
to fixed
 
maturity securities
 
for which
 
the Company
 
has recorded
an allowance for credit losses.
Duration of Unrealized Loss at December
 
31, 2021 By Security Type
 
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Unrealized
Unrealized
Unrealized
(Dollars in millions)
Fair Value
Depreciation
Fair Value
Depreciation
Fair Value
Depreciation
Fixed maturity securities - available for
 
sale:
U.S. Treasury securities and
 
obligations of
U.S. government agencies and corporations
$
504
$
(6)
$
92
$
(4)
$
596
$
(10)
Obligations of U.S. states and
 
political subdivisions
51
(1)
3
-
54
(1)
Corporate securities
2,133
(38)
473
(24)
2,605
(63)
Asset-backed securities
1,954
(11)
42
(1)
1,996
(12)
Mortgage-backed securities
Commercial
222
(3)
40
(3)
262
(6)
Agency residential
1,101
(12)
280
(7)
1,381
(19)
Non-agency residential
2
-
-
-
2
-
Foreign government securities
392
(10)
101
(18)
493
(28)
Foreign corporate securities
1,735
(46)
211
(18)
1,945
(65)
Total fixed
 
maturity securities - available for
 
sale
$
8,094
$
(128)
$
1,241
$
(75)
$
9,335
$
(203)
(Some amounts may not reconcile due to rounding.)
Duration of Unrealized Loss at December
 
31, 2021 By Maturity
Less than 12 months
Greater than 12 months
Total
Gross
Gross
Gross
Unrealized
Unrealized
Unrealized
(Dollars in millions)
Fair Value
Depreciation
Fair Value
Depreciation
Fair Value
Depreciation
Fixed maturity securities - available for
 
sale:
Due in one year or less
$
130
$
(2)
$
137
$
(12)
$
267
$
(14)
Due in one year through five years
2,165
(35)
446
(29)
2,612
(64)
Due in five years through ten years
1,728
(47)
244
(22)
1,972
(69)
Due after ten years
792
(16)
51
(3)
843
(19)
Asset-backed securities
1,954
(11)
42
(1)
1,996
(12)
Mortgage-backed securities
1,325
(15)
320
(10)
1,646
(25)
Total fixed
 
maturity securities - available for
 
sale
$
8,094
$
(128)
$
1,241
$
(75)
$
9,335
$
(203)
(Some amounts may not reconcile due to rounding.)
The aggregate
 
market
 
value and
 
gross unrealized
 
losses related
 
to investments
 
in an
 
unrealized loss
 
position at
December 31, 2021 were $
9.3
 
billion and $
203
 
million, respectively.
 
The market value
 
of securities for the single
issuer
 
(the
 
United
 
States
 
government)
 
whose
 
securities
 
comprised
 
the
 
largest
 
unrealized
 
loss
 
position
 
at
December 31, 2021,
 
did not exceed
2.7
% of the
 
overall market
 
value of the
 
Company’s
 
fixed maturity
 
securities.
 
The market value of the securities
 
for the issuer with the second largest
 
unrealized loss comprised less
 
than
0.5
%
of the Company’s
 
fixed maturity
 
securities.
 
In addition, as indicated
 
on the above table,
 
there was no
 
significant
concentration
 
of
 
unrealized
 
losses
 
in
 
any
 
one
 
market
 
sector.
 
The
 
$
128
 
million
 
of
 
unrealized
 
losses
 
related
 
to
fixed
 
maturity
 
securities
 
that
 
have
 
been
 
in
 
an
 
unrealized
 
loss
 
position
 
for
 
less
 
than
 
one
 
year
 
were
 
generally
comprised
 
of domestic
 
and
 
foreign
 
corporate
 
securities,
 
agency
 
residential
 
asset-backed
 
securities
 
and foreign
government
 
securities.
 
Of
 
these
 
unrealized
 
losses,
 
$
116
 
million
 
were
 
related
 
to
 
securities
 
that
 
were
 
rated
investment
 
grade
 
by
 
at
 
least one
 
nationally
 
recognized
 
statistical
 
rating
 
agency.
 
The $
75
 
million
 
of unrealized
losses related
 
to fixed
 
maturity securities
 
in an unrealized
 
loss position
 
for more
 
than one year
 
related primarily
to
 
domestic
 
and
 
foreign
 
corporate
 
securities,
 
foreign
 
government
 
securities
 
and
 
agency
 
residential
 
mortgage-
backed securities.
 
Of these
 
unrealized losses,
 
$
72
 
million were
 
related to
 
securities that
 
were rated
 
investment
grade
 
by
 
at
 
least
 
one
 
nationally
 
recognized
 
statistical
 
rating
 
agency.
 
In
 
all
 
instances,
 
there
 
were
 
no
 
projected
cash flow
 
shortfalls
 
to recover
 
the full
 
book value
 
of the
 
investments
 
and the
 
related
 
interest
 
obligations.
 
The
mortgage-backed securities still
 
have excess credit coverage
 
and are current on interest
 
and principal payments.
 
The components of net investment
 
income are presented in the table
 
below for the periods indicated:
Years Ended December 31,
(Dollars in millions)
2022
2021
2020
Fixed maturities
$
742
$
561
$
542
Equity securities
16
17
19
Short-term investments and cash
28
1
5
Other invested assets
Limited partnerships
75
565
113
Other
 
29
63
2
Gross investment income before adjustments
890
1,208
681
Funds held interest income (expense)
2
12
13
Future policy benefit reserve income (expense)
-
(1)
(1)
Gross investment income
892
1,219
692
Investment expenses
(62)
(54)
(50)
Net investment income
$
830
$
1,165
$
642
(Some amounts may not reconcile due to rounding.)
The
 
Company
 
records
 
results
 
from
 
limited
 
partnership
 
investments
 
on
 
the
 
equity
 
method
 
of
 
accounting
 
with
changes
 
in
 
value
 
reported
 
through
 
net
 
investment
 
income.
 
The
 
net
 
investment
 
income
 
from
 
limited
partnerships is dependent
 
upon the Company’s
 
share of the net asset
 
values of interests
 
underlying each limited
partnership.
 
Due
 
to
 
the
 
timing
 
of
 
receiving
 
financial
 
information
 
from
 
these
 
partnerships,
 
the
 
results
 
are
generally
 
reported
 
on
 
a
 
one
 
month
 
or
 
quarter
 
lag.
 
If
 
the
 
Company
 
determines
 
there
 
has
 
been
 
a
 
significant
decline in value
 
of a limited
 
partnership during
 
this lag period,
 
a loss will
 
be recorded
 
in the period
 
in which the
Company identifies the decline.
 
The Company had
 
contractual commitments
 
to invest
 
up to an additional
 
$
2.6
 
billion in limited partnerships
 
and
private
 
placement loans
 
at December
 
31, 2022.
 
These commitments
 
will be
 
funded when
 
called in
 
accordance
with the partnership and
 
loan agreements, which have
 
investment periods that
 
expire, unless extended,
 
through
2026
.
 
During the fourth
 
quarter of 2022, the
 
Company entered
 
into corporate
 
-owned life insurance
 
policies, which are
carried within other invested assets
 
at policy cash surrender value of $
939
 
million as of December 31, 2022.
 
Variable Interest
 
Entities
The
 
Company
 
is
 
engaged
 
with
 
various
 
special
 
purpose
 
entities
 
and
 
other
 
entities
 
that
 
are
 
deemed
 
to
 
be
 
VIEs
primarily
 
as
 
an
 
investor
 
through
 
normal
 
investment
 
activities
 
but
 
also
 
as
 
an
 
investment
 
manager.
 
A
 
VIE
 
is
 
an
entity that
 
either has
 
investors
 
that lack
 
certain essential
 
characteristics
 
of a
 
controlling
 
financial interest,
 
such
as simple
 
majority kick-out
 
rights, or
 
lacks sufficient
 
funds to
 
finance its
 
own activities
 
without financial
 
support
provided
 
by
 
other
 
entities.
 
The
 
Company
 
performs
 
ongoing
 
qualitative
 
assessments
 
of
 
its
 
VIEs
 
to
 
determine
whether the Company has
 
a controlling financial interest
 
in the VIE and therefore
 
is the primary beneficiary.
 
The
Company
 
is
 
deemed to
 
have
 
a
 
controlling
 
financial
 
interest
 
when
 
it
 
has
 
both
 
the
 
ability to
 
direct
 
the
 
activities
that most
 
significantly impact
 
the economic
 
performance of
 
the VIE
 
and the
 
obligation to
 
absorb losses
 
or right
to
 
receive
 
benefits
 
from
 
the
 
VIE
 
that
 
could
 
potentially
 
be
 
significant
 
to
 
the
 
VIE.
 
Based
 
on
 
the
 
Company’s
assessment,
 
if it
 
determines
 
it
 
is
 
the
 
primary
 
beneficiary,
 
the
 
Company
 
consolidates
 
the
 
VIE
 
in
 
the
 
Company’s
Consolidated Financial Statements.
 
As of December 31, 2022 and
 
2021, the Company did
no
t hold any securities
for which it is the primary beneficiary.
The
 
Company,
 
through
 
normal
 
investment
 
activities,
 
makes
 
passive
 
investments
 
in
 
general
 
and
 
limited
partnerships
 
and other
 
alternative
 
investments.
 
For these
 
non-consolidated
 
VIEs, the
 
Company has
 
determined
it is not the
 
primary beneficiary as
 
it has no ability
 
to direct activities
 
that could significantly
 
affect the economic
performance of the
 
investments.
 
The Company’s
 
maximum exposure
 
to loss as
 
of December 31, 2022
 
and 2021
is limited
 
to
 
the total
 
carrying
 
value
 
of $
4.1
 
billion and
 
$
2.9
 
billion,
 
respectively,
 
which
 
are
 
included in
 
general
and
 
limited
 
partnerships
 
and
 
other
 
alternative
 
investments
 
in
 
Other
 
Invested
 
Assets
 
in
 
the
 
Company's
Consolidated
 
Balance
 
Sheets.
 
As
 
of
 
December 31,
 
2022,
 
the
 
Company
 
has
 
outstanding
 
commitments
 
totaling
$
2.1
 
billion whereby the
 
Company is committed
 
to fund these investments
 
and may be called
 
by the partnership
during
 
the
 
commitment
 
period
 
to
 
fund
 
the
 
purchase
 
of
 
new
 
investments
 
and
 
partnership
 
expenses.
 
These
investments are generally
 
of a passive nature in that the Company
 
does not take an active role in management.
In
 
addition,
 
the
 
Company
 
makes
 
passive
 
investments
 
in
 
structured
 
securities
 
issued
 
by
 
VIEs
 
for
 
which
 
the
Company
 
is
 
not
 
the
 
manager.
 
These
 
investments
 
are
 
included
 
in
 
asset-backed
 
securities,
 
which
 
includes
collateralized
 
loan obligations
 
and are
 
classified as
 
fixed maturities.
 
The Company
 
has not
 
provided financial
 
or
other support
 
with respect
 
to these
 
investments
 
other than
 
its original
 
investment.
 
For these
 
investments,
 
the
Company
 
determined
 
it is
 
not
 
the primary
 
beneficiary
 
due
 
to
 
the relative
 
size
 
of the
 
Company’s
 
investment
 
in
comparison
 
to
 
the
 
principal
 
amount
 
of
 
the
 
structured
 
securities
 
issued
 
by
 
the
 
VIEs,
 
the
 
level
 
of
 
credit
subordination
 
which
 
reduces
 
the
 
Company’s
 
obligation
 
to
 
absorb
 
losses
 
or
 
right
 
to
 
receive
 
benefits
 
and
 
the
Company’s
 
inability to
 
direct the activities
 
that most
 
significantly impact
 
the economic
 
performance of
 
the VIEs.
 
The
 
Company’s
 
maximum
 
exposure
 
to
 
loss
 
on
 
these
 
investments
 
is
 
limited
 
to
 
the
 
amount
 
of
 
the
 
Company’s
investment.
The components of net realized capital
 
gains (losses) are presented in the
 
table below for the periods indicated:
Years Ended December 31,
(Dollars in millions)
2022
2021
2020
Fixed maturity securities:
Allowance for credit losses
$
(33)
$
(28)
$
(2)
Net realized gains (losses) from dispositions
(87)
17
(5)
Gains (losses) from fair value adjustments
-
-
2
Equity securities:
Net realized gains (losses) from dispositions
112
28
(9)
Gains (losses) from fair value adjustments
(460)
236
278
Other invested assets
13
6
2
Short-term investments gain (loss)
-
-
1
Total net realized gains (losses) on investments
$
(455)
$
258
$
268
(Some amounts may not reconcile due to rounding.)
The
 
following
 
tables
 
provide
 
a
 
roll
 
forward
 
of
 
the
 
Company’s
 
beginning
 
and
 
ending
 
balance
 
of
 
allowance
 
for
credit losses for the periods indicated:
Roll Forward of Allowance for Credit Losses
Twelve Months Ended December 31, 2022
Foreign
Corporate
Asset-Backed
Corporate
Securities
Securities
Securities
Total
(Dollars in millions)
Beginning Balance
$
(19)
$
(8)
$
(3)
$
(30)
Credit losses on securities where credit
losses were not previously recorded
(1)
(13)
(6)
(17)
(35)
Increases in allowance on previously
impaired securities
(20)
-
(1)
(21)
Decreases in allowance on previously
 
impaired securities
-
-
-
-
Reduction in allowance due to disposals
6
8
10
23
Balance as of December 31
$
(46)
$
(6)
$
(11)
$
(63)
(Some amounts may not reconcile due to rounding.)
(1)
 
Credit losses recorded as of December 31,
 
2022 for HTM were $
2
 
million, $
6
 
million and $
1
 
million for Corporate, asset-backed
 
securities and foreign
corporate securities, respectively.
The proceeds and
 
split between gross
 
gains and losses,
 
from sales of
 
fixed maturity
 
securities - available
 
for sale
and equity securities, are presented in the table
 
below for the periods indicated:
Years Ended December 31,
(Dollars in millions)
2022
2021
2020
Proceeds from sales of fixed maturity securities - available for sale
$
1,403
$
1,916
$
1,951
Gross gains from sales
40
72
80
Gross losses from sales
(127)
(55)
(85)
Proceeds from sales of equity securities
$
2,217
$
990
$
376
Gross gains from sales
165
42
37
Gross losses from sales
(53)
(15)
(46)
Securities with a
 
carrying value
 
amount of
 
$
1.4
 
billion at
 
December 31, 2022
 
were on
 
deposit with various
 
state
or governmental insurance departments
 
in compliance with insurance laws.