| Investments (excluding Consolidated Investment Entities) | 50% - 60% >60% - 70% >70% - 80% >80% and above Total 2021 $ 63 $ 173 $ 86 $ — $ — $ 322 2020 176 237 69 — — 482 2019 243 215 83 — — 541 2018 157 73 47 — — 277 2017 679 236 4 — — 919 2016 460 258 2 — — 720 2015 and prior 1,908 421 22 — — 2,351 Total $ 3,686 $ 1,613 $ 313 $ — $ — $ 5,612 As of December 31, 2020 Loan-to-Value Ratios Year of Origination 0% - 50% >50% - 60% >60% - 70% >70% - 80% >80% and above Total 2020 $ 202 $ 251 $ 39 $ — $ — $ 492 2019 327 230 125 — — 682 2018 211 158 73 — — 442 2017 645 427 5 — — 1,077 2016 627 313 2 — — 942 2015 and prior 2,525 648 22 — — 3,195 Total $ 4,537 $ 2,027 $ 266 $ — $ — $ 6,830 The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 Debt Service Coverage Ratios Year of Origination >1.5x >1.25x - 1.5x >1.0x - 1.25x <1.0x Commercial mortgage loans secured by land or construction loans Total 2021 $ 316 $ 6 $ — $ — $ — $ 322 2020 398 67 17 — — 482 2019 366 78 39 58 — 541 2018 111 63 35 68 — 277 2017 504 96 48 271 — 919 2016 602 44 26 48 — 720 2015 and prior 2,001 208 93 49 — 2,351 Total $ 4,298 $ 562 $ 258 $ 494 $ — $ 5,612 As of December 31, 2020 Debt Service Coverage Ratios Year of Origination >1.5x >1.25x - 1.5x >1.0x - 1.25x <1.0x Commercial mortgage loans secured by land or construction loans Total 2020 $ 356 $ 116 $ 20 $ — $ — $ 492 2019 455 108 51 68 — 682 2018 205 90 92 55 — 442 2017 630 243 133 71 — 1,077 2016 841 58 40 3 — 942 2015 and prior 2,714 283 121 77 — 3,195 Total $ 5,201 $ 898 $ 457 $ 274 $ — $ 6,830 The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 U.S. Region Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total 2021 $ 67 $ 22 $ 28 $ 39 $ 74 $ 52 $ — $ 19 $ 21 $ 322 2020 99 187 40 39 38 39 2 14 24 482 2019 62 147 14 151 48 56 15 14 34 541 2018 66 95 60 17 21 12 — 6 — 277 2017 130 95 378 141 76 56 6 37 — 919 2016 185 141 170 42 59 89 10 18 6 720 2015 and prior 605 521 429 169 207 191 62 131 36 2,351 Total $ 1,214 $ 1,208 $ 1,119 $ 598 $ 523 $ 495 $ 95 $ 239 $ 121 $ 5,612 As of December 31, 2020 U.S. Region Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total 2020 $ 107 $ 187 $ 41 $ 39 $ 38 $ 39 $ 2 $ 15 $ 24 $ 492 2019 98 194 21 169 69 61 18 13 39 682 2018 105 141 70 37 59 15 — 15 — 442 2017 172 125 417 155 102 62 6 38 — 1,077 2016 274 174 185 46 103 114 13 27 6 942 2015 and prior 890 684 521 237 299 290 70 160 44 3,195 Total $ 1,646 $ 1,505 $ 1,255 $ 683 $ 670 $ 581 $ 109 $ 268 $ 113 $ 6,830 The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2021 $ 7 $ 33 $ 191 $ 91 $ — $ — $ — $ 322 2020 59 90 166 167 — — — 482 2019 46 98 288 82 27 — — 541 2018 44 91 103 16 4 — 19 277 2017 111 451 197 157 3 — — 919 2016 129 248 170 156 8 4 5 720 2015 and prior 889 331 462 316 95 51 207 2,351 Total $ 1,285 $ 1,342 $ 1,577 $ 985 $ 137 $ 55 $ 231 $ 5,612 As of December 31, 2020 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2020 $ 59 $ 94 $ 165 $ 174 $ — $ — $ — $ 492 2019 55 111 384 95 37 — — 682 2018 77 109 191 25 5 35 — 442 2017 138 505 252 178 4 — — 1,077 2016 175 301 255 187 10 9 5 942 2015 and prior 1,276 484 570 426 117 268 54 3,195 Total $ 1,780 $ 1,604 $ 1,817 $ 1,085 $ 173 $ 312 $ 59 $ 6,830 The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: June 30, 2021 December 31, 2020 Allowance for credit losses, beginning of period $ 89 $ 16 (1) Credit losses on mortgage loans for which credit losses were not previously recorded 1 7 Change in allowance due to transfer of loans from Voya Reinsurance portfolios to Resolution (14) — Increase (decrease) on mortgage loans with allowance recorded in previous period (43) 69 Provision for expected credit losses 33 92 Write-offs — (3) Recoveries of amounts previously written-off — — Allowance for credit losses, end of period $ 33 $ 89 (1) On January 1, 2020, as a result of implementing ASU 2016-13 Measurement of Credit Losses of Financial Instruments, the company recorded a transition adjustment for Allowance for credit losses on mortgage loans on real estate of $15. To provide temporary financial assistance to our commercial mortgage loans borrowers adversely affected by COVID-19 related stress, the Company has provided payment forbearance to approximately 8% of the outstanding principal amount of our commercial mortgage loans. Deferred payment amounts are expected to be repaid across the 12 months following the end of the agreed upon forbearance period. No modifications to any commercial mortgage loans have been made as of the issuance date of this filing. The following table presents past due commercial mortgage loans as of the dates indicated: June 30, 2021 December 31, 2020 Delinquency: Current $ 5,612 $ 6,825 30-59 days past due — — 60-89 days past due — — Greater than 90 days past due — 5 Total $ 5,612 $ 6,830 Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. As of June 30, 2021, the company had no commercial mortgage loan in non-accrual status. As of December 31, 2020, the Company had one commercial mortgage loan in non-accrual status. There was no interest income recognized on loans in non-accrual status for the six months ended June 30, 2021 and year ended December 31, 2020. As of June 30, 2021 and December 31, 2020, the Company had no commercial mortgage loans that were over 90 days or more past due but are not on non-accrual status. The Company had no commercial mortgage loans on non-accrual status for which there is no related allowance for credit losses as of June 30, 2021 and December 31, 2020. Fixed Maturities, Trading The Company invests in corporate private debt securities which are recognized at fair value within the Condensed Consolidated Balance Sheets with changes in value recognized in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the three months and six months ended June 30, 2021 and 2020, there were no gains (losses) and no interest income. Net Investment Income The following table summarizes Net investment income for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturities $ 497 $ 596 $ 1,012 $ 1,167 Equity securities 6 3 11 6 Mortgage loans on real estate 64 73 125 147 Policy loans 5 12 11 23 Short-term investments and cash equivalents 4 1 5 3 Other 97 (83) 240 (28) Gross investment income 673 602 1,404 1,318 Less: investment expenses 17 16 34 34 Net investment income $ 656 $ 586 $ 1,370 $ 1,284 As of June 30, 2021 and December 31, 2020, the Company had $1 and $2, respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Condensed Consolidated Statements of Operations. Net Realized Capital Gains (Losses) Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Net realized capital gains (losses) also include changes in fair value of trading debt securities and changes in fair value of equity securities. The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology. Net realized capital gains (losses) were as follows for the periods indicated: Three Months Ended June 30, 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 15 $ (16) Fixed maturities, at fair value option (129) 14 Equity securities, at fair value 5 14 Derivatives (39) (3) Embedded derivatives - fixed maturities — (1) Guaranteed benefit derivatives (9) 45 Mortgage Loans 25 (53) Other investments 95 (1) Net realized capital gains (losses) $ (37) $ (1) Six Months Ended June 30, 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 1,783 $ (52) Fixed maturities, at fair value option (377) 47 Equity securities, at fair value 11 4 Derivatives (16) (33) Embedded derivatives - fixed maturities (5) 7 Guaranteed benefit derivatives 48 (148) Mortgage Loans 163 (58) Other investments 98 (1) Net realized capital gains (losses) $ 1,705 $ (234) On June 1, 2021, the Company fully disposed of a 9.99% equity interest in VA Capital which was originally acquired as part of a Master Transaction Agreement dated December 20, 2017, related to the sale of substantially all of our Closed Block Variable Annuity (CBVA) and Annuity business. The disposition resulted in a net realized gain of $95 reported as Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. Proceeds from the sale of fixed maturities, available-for-sale and trading, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Proceeds on sales $ 608 $ 898 $ 10,213 $ 1,365 Gross gains 14 79 1,711 90 Gross losses — 49 2 69 " id="sjs-B4" xml:space="preserve">3. Investments (excluding Consolidated Investment Entities) Fixed Maturities Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of June 30, 2021: Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value Allowance for credit losses Fixed maturities: U.S. Treasuries $ 754 $ 244 $ — $ — $ 998 $ — U.S. Government agencies and authorities 62 13 — — 75 — State, municipalities and political subdivisions 915 116 — — 1,031 — U.S. corporate public securities 10,416 1,760 27 — 12,149 — U.S. corporate private securities 4,828 535 25 — 5,338 — Foreign corporate public securities and foreign governments (1) 3,296 430 12 — 3,714 — Foreign corporate private securities (1) 3,456 323 25 — 3,739 15 Residential mortgage-backed securities 4,499 182 20 15 4,675 1 Commercial mortgage-backed securities 3,666 228 15 — 3,879 — Other asset-backed securities 2,011 38 6 — 2,041 2 Total fixed maturities, including securities pledged 33,903 3,869 130 15 37,639 18 Less: Securities pledged 969 125 — — 1,094 — Total fixed maturities $ 32,934 $ 3,744 $ 130 $ 15 $ 36,545 $ 18 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. Available-for-sale and FVO fixed maturities were as follows as of December 31, 2020: Amortized Cost Gross Unrealized Capital Gains Gross Unrealized Capital Losses Embedded Derivatives (2) Fair Value Allowance for credit losses Fixed maturities: U.S. Treasuries $ 1,033 $ 438 $ — $ — $ 1,471 $ — U.S. Government agencies and authorities 74 28 — — 102 — State, municipalities and political subdivisions 1,166 180 — — 1,346 — U.S. corporate public securities 13,366 3,028 7 — 16,387 — U.S. corporate private securities 5,653 828 35 — 6,446 — Foreign corporate public securities and foreign governments (1) 4,023 714 1 — 4,736 — Foreign corporate private securities (1) 4,220 470 29 — 4,646 15 Residential mortgage-backed securities 5,370 255 17 20 5,626 2 Commercial mortgage-backed securities 3,882 290 40 — 4,131 1 Other asset-backed securities 2,110 46 10 — 2,138 8 Total fixed maturities, including securities pledged 40,897 6,277 139 20 47,029 26 Less: Securities pledged 355 95 1 — 449 — Total fixed maturities $ 40,542 $ 6,182 $ 138 $ 20 $ 46,580 $ 26 (1) Primarily U.S. dollar denominated. (2) Embedded derivatives within fixed maturity securities are reported with the host investment. The changes in fair value of embedded derivatives are reported in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The amortized cost and fair value of fixed maturities, including securities pledged, as of June 30, 2021, are shown below by contractual maturity. Actual maturities may differ from contractual maturities as securities may be restructured, called or prepaid. Mortgage-backed securities ("MBS") and Other asset-backed securities ("ABS") are shown separately because they are not due at a single maturity date. Amortized Fair Due to mature: One year or less $ 600 $ 609 After one year through five years 4,422 4,735 After five years through ten years 5,930 6,590 After ten years 12,775 15,110 Mortgage-backed securities 8,165 8,554 Other asset-backed securities 2,011 2,041 Fixed maturities, including securities pledged $ 33,903 $ 37,639 As of June 30, 2021 and December 31, 2020, the Company did not have any investments in a single issuer, other than obligations of the U.S. Government and government agencies, with a carrying value in excess of 10% of the Company’s Total shareholders' equity. The following tables present the composition of the U.S. and foreign corporate securities within the fixed maturity portfolio by industry category as of the dates indicated: Amortized Gross Gross Fair June 30, 2021 Communications $ 1,241 $ 259 $ 1 $ 1,499 Financial 3,594 463 10 4,047 Industrial and other companies 9,652 1,228 28 10,852 Energy 1,944 350 19 2,275 Utilities 3,884 580 6 4,458 Transportation 1,171 111 23 1,259 Total $ 21,486 $ 2,991 $ 87 $ 24,390 December 31, 2020 Communications $ 1,629 $ 425 $ 1 $ 2,053 Financial 4,419 811 3 5,227 Industrial and other companies 11,670 2,088 15 13,743 Energy 2,594 474 28 3,040 Utilities 4,963 944 1 5,906 Transportation 1,331 196 23 1,504 Total $ 26,606 $ 4,938 $ 71 $ 31,473 The Company invests in various categories of collateralized mortgage obligations (CMOs), including CMOs that are not agency-backed, that are subject to different degrees of risk from changes in interest rates and defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to significant decreases and increases in interest rates resulting in the prepayment of principal from the underlying mortgages, either earlier or later than originally anticipated. As of June 30, 2021 and December 31, 2020, approximately 42.2% and 44.5%, respectively, of the Company's CMO holdings, were invested in the above mentioned types of CMOs such as interest-only or principal-only strips, that are subject to more prepayment and extension risk than traditional CMOs. Public corporate fixed maturity securities are distinguished from private corporate fixed maturity securities based upon the manner in which they are transacted. Public corporate fixed maturity securities are issued initially through market intermediaries on a registered basis or pursuant to Rule 144A under the Securities Act of 1933 (the "Securities Act") and are traded on the secondary market through brokers acting as principal. Private corporate fixed maturity securities are originally issued by borrowers directly to investors pursuant to Section 4(a)(2) of the Securities Act, and are traded in the secondary market directly with counterparties, either without the participation of a broker or in agency transactions. Repurchase Agreements As of June 30, 2021 and December 31, 2020, the Company did not have any securities pledged in dollar rolls or reverse repurchase agreements. As of June 30, 2021, the carrying value of securities pledged and obligation to repay loans related to repurchase agreement transactions were $88 and included in Securities pledged and Payables under securities loan and repurchase agreements, including collateral held on the Condensed Consolidated Balance Sheets. As of December 31, 2020, the carrying value of securities pledged and obligation to repay loans related to repurchase agreement transactions were $82. Securities pledged related to repurchase agreements are comprised of other asset-backed securities. Securities Pledged The Company engages in securities lending whereby the initial collateral is required at a rate of 103% of the market value of the loaned securities. The lending agent retains the collateral and invests it in high quality liquid assets on behalf of the Company. The market value of the loaned securities is monitored on a daily basis with additional collateral obtained or refunded as the market value of the loaned securities fluctuates. The lending agent indemnifies the Company against losses resulting from the failure of a counterparty to return securities pledged where collateral is insufficient to cover the loss. As of June 30, 2021 and December 31, 2020, the fair value of loaned securities was $785 and $197, respectively, and is included in Securities pledged on the Condensed Consolidated Balance Sheets. If cash is received as collateral, the lending agent retains the cash collateral and invests it in short-term liquid assets on behalf of the Company. As of June 30, 2021 and December 31, 2020, cash collateral retained by the lending agent and invested in short-term liquid assets on the Company's behalf was $766 and $106, respectively, and is recorded in Short-term investments under securities loan agreements, including collateral delivered on the Condensed Consolidated Balance Sheets. As of June 30, 2021 and December 31, 2020, liabilities to return collateral of $766 and $106, respectively, are included in Payables under securities loan and repurchase agreements, including collateral held on the Condensed Consolidated Balance Sheets. The Company accepts non-cash collateral in the form of securities. The securities retained as collateral by the lending agent may not be sold or re-pledged, except in the event of default, and are not reflected on the Company’s Condensed Consolidated Balance Sheets. This collateral generally consists of U.S. Treasury, U.S. Government agency securities and MBS pools. As of June 30, 2021 and December 31, 2020, the fair value of securities retained as collateral by the lending agent on the Company’s behalf was $45 and $96, respectively. The following table presents borrowings under securities lending transactions by asset class pledged as of the dates indicated: June 30, 2021 December 31, 2020 U.S. Treasuries $ 49 $ 90 U.S. Government agencies and authorities — 3 U.S. corporate public securities 423 76 Equity Securities 1 — Common Stock 59 — Foreign corporate public securities and foreign governments 279 33 Payables under securities loan agreements $ 811 $ 202 The Company's securities lending activities are conducted on an overnight basis, and all securities loaned can be recalled at any time. The Company does not offset assets and liabilities associated with its securities lending program. The program size was temporarily reduced during 2020 as part of COVID risk reduction measurers. However, with financial market conditions now recovered and orderly, our securities lending program is returning to prior levels and remains within our internal risk limits. Allowance for credit losses The following table presents a rollforward of the allowance for credit losses on available-for-sale fixed maturity securities for the period presented: Six Months Ended June 30, 2021 Residential mortgage-backed securities Commercial mortgage-backed securities Foreign corporate private securities Other asset-backed securities Total Balance as of January 1 $ 2 $ 1 $ 15 $ 8 $ 26 Credit losses on securities for which credit losses were not previously recorded — — — 1 1 Initial allowance for credit losses recognized on financial assets accounted for as PCD — — — — — Reductions for securities sold during the period — — — — — Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost — — — — — Increase (decrease) on securities with allowance recorded in previous period (1) (1) — (7) (9) Write-offs — — — — — Recoveries of amounts previously written-off — — — — — Balance as of June 30 $ 1 $ — $ 15 $ 2 $ 18 Year Ended December 31, 2020 Residential mortgage-backed securities Commercial mortgage-backed securities Foreign corporate private securities Other asset-backed securities Total Balance as of January 1 $ — $ — $ — $ — $ — Credit losses on securities for which credit losses were not previously recorded 2 1 15 8 26 Initial allowance for credit losses recognized on financial assets accounted for as PCD — — — — — Reductions for securities sold during the period — — — — — Reductions for intent to sell or more likely than not will be required to sell securities prior to recovery of amortized cost — — — — — Increase (decrease) on securities with allowance recorded in previous period — — — — — Write-offs — — — — — Recoveries of amounts previously written-off — — — — — Balance as of December 31 $ 2 $ 1 $ 15 $ 8 $ 26 Unrealized Capital Losses The following table presents available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by market sector and duration as of June 30, 2021: Twelve Months or Less More Than Twelve Total Fair Value Unrealized Capital Losses Number of securities Fair Value Unrealized Capital Losses Number of securities Fair Value Unrealized Capital Losses Number of securities U.S. Treasuries $ 23 $ — 6 $ — $ — — $ 23 $ — 6 State, municipalities and political subdivisions 21 — 4 — — — 21 — 4 U.S. corporate public securities 1,054 25 313 23 2 2 1,077 27 315 U.S. corporate private securities 270 6 20 92 19 6 362 25 26 Foreign corporate public securities and foreign governments 302 10 65 9 2 3 311 12 68 Foreign corporate private securities 144 25 11 25 — 3 169 25 14 Residential mortgage-backed 372 10 170 280 10 95 652 20 265 Commercial mortgage-backed 191 3 41 294 12 40 485 15 81 Other asset-backed 244 2 63 135 4 62 379 6 125 Total $ 2,621 $ 81 693 $ 858 $ 49 211 $ 3,479 $ 130 904 The Company concluded that an allowance for credit losses was unnecessary for these securities because the unrealized losses are interest rate related. The following table presents available-for-sale fixed maturities, including securities pledged, for which an allowance for credit losses has not been recorded by market sector and duration as of December 31, 2020: Twelve Months or Less More Than Twelve Total Fair Value Unrealized Capital Losses Number of securities Fair Value Unrealized Capital Losses Number of securities Fair Value Unrealized Capital Losses Number of securities U.S. Treasuries $ 12 $ — 2 $ — $ — — $ 12 $ — 2 State, municipalities and political subdivisions 7 — 2 — — — 7 — 2 U.S. corporate public securities 241 5 163 23 2 4 264 7 167 U.S. corporate private securities 419 12 30 112 23 8 531 35 38 Foreign corporate public securities and foreign governments 45 — 19 9 1 2 54 1 21 Foreign corporate private securities 238 29 19 6 — 1 244 29 20 Residential mortgage-backed 658 12 150 147 5 75 805 17 225 Commercial mortgage-backed 844 39 127 36 1 7 880 40 134 Other asset-backed 261 2 61 376 8 110 637 10 171 Total $ 2,725 $ 99 573 $ 709 $ 40 207 $ 3,434 $ 139 780 Based on the Company's quarterly evaluation of its securities in a unrealized loss position, described below, the Company concluded that these securities were not impaired as of June 30, 2021. The Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Gross unrealized capital losses on fixed maturities, including securities pledged, decreased $9 from $139 to $130 for the six months ended June 30, 2021. The decrease in gross unrealized capital losses was primarily due to non-credit related market factors. At June 30, 2021, $8 of the total $130 of gross unrealized losses were from 8 available-for-sale fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for 12 months or greater. Evaluating Securities for Impairments The Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities, in accordance with its impairment policy in order to evaluate whether such investments are impaired. The following table identifies the Company's impairments included in the Condensed Consolidated Statements of Operations, excluding impairments included in Other comprehensive income (loss) by type for the periods indicated: Three Months Ended June 30, 2021 2020 Impairment No. of Impairment No. of State, municipalities and political subdivisions $ — — $ — * 11 U.S. corporate public securities — — 11 67 U.S. corporate private securities — — — * 6 Foreign corporate public securities and foreign governments (1) — — 4 35 Foreign corporate private securities (1) — — 6 12 Residential mortgage-backed — * 4 4 41 Commercial mortgage-backed — — 24 116 Other asset-backed — — 1 74 Total $ — * 4 $ 50 362 Credit Impairments $ — $ — Intent Impairments $ — $ 50 (1) Primarily U.S. dollar denominated. *Less than $1 Six Months Ended June 30, 2021 2020 Impairment No. of Impairment No. of State, municipalities and political subdivisions $ — — $ — * 11 U.S. corporate public securities — — 30 69 U.S. corporate private securities — — — * 6 Foreign corporate public securities and foreign governments (1) — — 4 35 Foreign corporate private securities (1) — — 6 12 Residential mortgage-backed — * 10 5 47 Commercial mortgage-backed — * 1 24 117 Other asset-backed — — 1 74 Total $ — * 11 $ 70 371 Credit Impairments $ — $ — Intent Impairments $ — $ 70 (1) Primarily U.S. dollar denominated. *Less than $1 The Company may sell securities during the period in which fair value has declined below amortized cost for fixed maturities. In certain situations, new factors, including changes in the business environment, can change the Company’s previous intent to continue holding a security. Accordingly, these factors may lead the Company to record additional intent related capital losses. Troubled Debt Restructuring The Company invests in high quality, well performing portfolios of commercial mortgage loans and private placements. Under certain circumstances, modifications are granted to these contracts. Each modification is evaluated as to whether a troubled debt restructuring has occurred. A modification is a troubled debt restructuring when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the face amount or maturity amount of the debt as originally stated, reducing the contractual interest rate, extending the maturity date at an interest rate lower than current market interest rates and/or reducing accrued interest. The Company considers the amount, timing and extent of the concession granted in determining any impairment or changes in the specific valuation allowance recorded in connection with the troubled debt restructuring. A valuation allowance may have been recorded prior to the quarter when the loan is modified in a troubled debt restructuring. Accordingly, the carrying value (net of the valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. For the three months ended June 30, 2021, the Company did not have any commercial mortgage loan troubled debt restructuring. For the six months ended June 30, 2021 the Company had one new commercial mortgage loan troubled debt restructuring with a pre and post modification carrying value of $5. For the three and six months ended June 30, 2021, the Company did not have any new private placement troubled debt restructuring. For the three and six months ended June 30, 2020, the Company did not have any new commercial mortgage loan or new private placement troubled debt restructuring. For the three and six months ended June 30, 2021 and June 30, 2020, the Company did not have any commercial mortgage loans or private placements modified in a troubled debt restructuring with a subsequent payment default. Mortgage Loans on Real Estate The Company diversifies its commercial mortgage loan portfolio by geographic region and property type to reduce concentration risk. The Company manages risk when originating commercial mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. Subsequently, the Company continuously evaluates mortgage loans based on relevant current information including a review of loan-specific performance, property characteristics and market trends. Loan performance is monitored on a loan specific basis through the review of submitted appraisals, operating statements, rent revenues and annual inspection reports, among other items. This review ensures properties are performing at a consistent and acceptable level to secure the debt. The components to evaluate debt service coverage are received and reviewed at least annually to determine the level of risk. Loan-to-value ("LTV") and debt service coverage ("DSC") ratios are measures commonly used to assess the risk and quality of mortgage loans. The LTV ratio, calculated at time of origination, is expressed as a percentage of the amount of the loan relative to the value of the underlying property. A LTV ratio in excess of 100% indicates the unpaid loan amount exceeds the underlying collateral. The DSC ratio, based upon the most recently received financial statements, is expressed as a percentage of the amount of a property’s net income to its debt service payments. A DSC ratio of less than 1.0 indicates that a property’s operations do not generate sufficient income to cover debt payments. These ratios are utilized as part of the review process described above. The following tables present commercial mortgage loans by year of origination and LTV ratio as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 Loan-to-Value Ratios Year of Origination 0% - 50% >50% - 60% >60% - 70% >70% - 80% >80% and above Total 2021 $ 63 $ 173 $ 86 $ — $ — $ 322 2020 176 237 69 — — 482 2019 243 215 83 — — 541 2018 157 73 47 — — 277 2017 679 236 4 — — 919 2016 460 258 2 — — 720 2015 and prior 1,908 421 22 — — 2,351 Total $ 3,686 $ 1,613 $ 313 $ — $ — $ 5,612 As of December 31, 2020 Loan-to-Value Ratios Year of Origination 0% - 50% >50% - 60% >60% - 70% >70% - 80% >80% and above Total 2020 $ 202 $ 251 $ 39 $ — $ — $ 492 2019 327 230 125 — — 682 2018 211 158 73 — — 442 2017 645 427 5 — — 1,077 2016 627 313 2 — — 942 2015 and prior 2,525 648 22 — — 3,195 Total $ 4,537 $ 2,027 $ 266 $ — $ — $ 6,830 The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 Debt Service Coverage Ratios Year of Origination >1.5x >1.25x - 1.5x >1.0x - 1.25x <1.0x Commercial mortgage loans secured by land or construction loans Total 2021 $ 316 $ 6 $ — $ — $ — $ 322 2020 398 67 17 — — 482 2019 366 78 39 58 — 541 2018 111 63 35 68 — 277 2017 504 96 48 271 — 919 2016 602 44 26 48 — 720 2015 and prior 2,001 208 93 49 — 2,351 Total $ 4,298 $ 562 $ 258 $ 494 $ — $ 5,612 As of December 31, 2020 Debt Service Coverage Ratios Year of Origination >1.5x >1.25x - 1.5x >1.0x - 1.25x <1.0x Commercial mortgage loans secured by land or construction loans Total 2020 $ 356 $ 116 $ 20 $ — $ — $ 492 2019 455 108 51 68 — 682 2018 205 90 92 55 — 442 2017 630 243 133 71 — 1,077 2016 841 58 40 3 — 942 2015 and prior 2,714 283 121 77 — 3,195 Total $ 5,201 $ 898 $ 457 $ 274 $ — $ 6,830 The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 U.S. Region Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total 2021 $ 67 $ 22 $ 28 $ 39 $ 74 $ 52 $ — $ 19 $ 21 $ 322 2020 99 187 40 39 38 39 2 14 24 482 2019 62 147 14 151 48 56 15 14 34 541 2018 66 95 60 17 21 12 — 6 — 277 2017 130 95 378 141 76 56 6 37 — 919 2016 185 141 170 42 59 89 10 18 6 720 2015 and prior 605 521 429 169 207 191 62 131 36 2,351 Total $ 1,214 $ 1,208 $ 1,119 $ 598 $ 523 $ 495 $ 95 $ 239 $ 121 $ 5,612 As of December 31, 2020 U.S. Region Year of Origination Pacific South Atlantic Middle Atlantic West South Central Mountain East North Central New England West North Central East South Central Total 2020 $ 107 $ 187 $ 41 $ 39 $ 38 $ 39 $ 2 $ 15 $ 24 $ 492 2019 98 194 21 169 69 61 18 13 39 682 2018 105 141 70 37 59 15 — 15 — 442 2017 172 125 417 155 102 62 6 38 — 1,077 2016 274 174 185 46 103 114 13 27 6 942 2015 and prior 890 684 521 237 299 290 70 160 44 3,195 Total $ 1,646 $ 1,505 $ 1,255 $ 683 $ 670 $ 581 $ 109 $ 268 $ 113 $ 6,830 The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated. The information is updated as of June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2021 $ 7 $ 33 $ 191 $ 91 $ — $ — $ — $ 322 2020 59 90 166 167 — — — 482 2019 46 98 288 82 27 — — 541 2018 44 91 103 16 4 — 19 277 2017 111 451 197 157 3 — — 919 2016 129 248 170 156 8 4 5 720 2015 and prior 889 331 462 316 95 51 207 2,351 Total $ 1,285 $ 1,342 $ 1,577 $ 985 $ 137 $ 55 $ 231 $ 5,612 As of December 31, 2020 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2020 $ 59 $ 94 $ 165 $ 174 $ — $ — $ — $ 492 2019 55 111 384 95 37 — — 682 2018 77 109 191 25 5 35 — 442 2017 138 505 252 178 4 — — 1,077 2016 175 301 255 187 10 9 5 942 2015 and prior 1,276 484 570 426 117 268 54 3,195 Total $ 1,780 $ 1,604 $ 1,817 $ 1,085 $ 173 $ 312 $ 59 $ 6,830 The following table summarizes the activity in the allowance for losses for commercial mortgage loans for the periods indicated: June 30, 2021 December 31, 2020 Allowance for credit losses, beginning of period $ 89 $ 16 (1) Credit losses on mortgage loans for which credit losses were not previously recorded 1 7 Change in allowance due to transfer of loans from Voya Reinsurance portfolios to Resolution (14) — Increase (decrease) on mortgage loans with allowance recorded in previous period (43) 69 Provision for expected credit losses 33 92 Write-offs — (3) Recoveries of amounts previously written-off — — Allowance for credit losses, end of period $ 33 $ 89 (1) On January 1, 2020, as a result of implementing ASU 2016-13 Measurement of Credit Losses of Financial Instruments, the company recorded a transition adjustment for Allowance for credit losses on mortgage loans on real estate of $15. To provide temporary financial assistance to our commercial mortgage loans borrowers adversely affected by COVID-19 related stress, the Company has provided payment forbearance to approximately 8% of the outstanding principal amount of our commercial mortgage loans. Deferred payment amounts are expected to be repaid across the 12 months following the end of the agreed upon forbearance period. No modifications to any commercial mortgage loans have been made as of the issuance date of this filing. The following table presents past due commercial mortgage loans as of the dates indicated: June 30, 2021 December 31, 2020 Delinquency: Current $ 5,612 $ 6,825 30-59 days past due — — 60-89 days past due — — Greater than 90 days past due — 5 Total $ 5,612 $ 6,830 Commercial mortgage loans are placed on non-accrual status when 90 days in arrears if the Company has concerns regarding the collectability of future payments, or if a loan has matured without being paid off or extended. As of June 30, 2021, the company had no commercial mortgage loan in non-accrual status. As of December 31, 2020, the Company had one commercial mortgage loan in non-accrual status. There was no interest income recognized on loans in non-accrual status for the six months ended June 30, 2021 and year ended December 31, 2020. As of June 30, 2021 and December 31, 2020, the Company had no commercial mortgage loans that were over 90 days or more past due but are not on non-accrual status. The Company had no commercial mortgage loans on non-accrual status for which there is no related allowance for credit losses as of June 30, 2021 and December 31, 2020. Fixed Maturities, Trading The Company invests in corporate private debt securities which are recognized at fair value within the Condensed Consolidated Balance Sheets with changes in value recognized in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. For the three months and six months ended June 30, 2021 and 2020, there were no gains (losses) and no interest income. Net Investment Income The following table summarizes Net investment income for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturities $ 497 $ 596 $ 1,012 $ 1,167 Equity securities 6 3 11 6 Mortgage loans on real estate 64 73 125 147 Policy loans 5 12 11 23 Short-term investments and cash equivalents 4 1 5 3 Other 97 (83) 240 (28) Gross investment income 673 602 1,404 1,318 Less: investment expenses 17 16 34 34 Net investment income $ 656 $ 586 $ 1,370 $ 1,284 As of June 30, 2021 and December 31, 2020, the Company had $1 and $2, respectively, of investments in fixed maturities that did not produce net investment income. Fixed maturities are moved to a non-accrual status when the investment defaults. Interest income on fixed maturities is recorded when earned using an effective yield method, giving effect to amortization of premiums and accretion of discounts. Such interest income is recorded in Net investment income in the Condensed Consolidated Statements of Operations. Net Realized Capital Gains (Losses) Net realized capital gains (losses) comprise the difference between the amortized cost of investments and proceeds from sale and redemption, as well as losses incurred due to the credit-related and intent-related impairment of investments. Realized investment gains and losses are also primarily generated from changes in fair value of embedded derivatives within products and fixed maturities, changes in fair value of fixed maturities recorded at FVO and changes in fair value including accruals on derivative instruments, except for effective cash flow hedges. Net realized capital gains (losses) also include changes in fair value of trading debt securities and changes in fair value of equity securities. The cost of the investments on disposal is generally determined based on first-in-first-out ("FIFO") methodology. Net realized capital gains (losses) were as follows for the periods indicated: Three Months Ended June 30, 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 15 $ (16) Fixed maturities, at fair value option (129) 14 Equity securities, at fair value 5 14 Derivatives (39) (3) Embedded derivatives - fixed maturities — (1) Guaranteed benefit derivatives (9) 45 Mortgage Loans 25 (53) Other investments 95 (1) Net realized capital gains (losses) $ (37) $ (1) Six Months Ended June 30, 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 1,783 $ (52) Fixed maturities, at fair value option (377) 47 Equity securities, at fair value 11 4 Derivatives (16) (33) Embedded derivatives - fixed maturities (5) 7 Guaranteed benefit derivatives 48 (148) Mortgage Loans 163 (58) Other investments 98 (1) Net realized capital gains (losses) $ 1,705 $ (234) On June 1, 2021, the Company fully disposed of a 9.99% equity interest in VA Capital which was originally acquired as part of a Master Transaction Agreement dated December 20, 2017, related to the sale of substantially all of our Closed Block Variable Annuity (CBVA) and Annuity business. The disposition resulted in a net realized gain of $95 reported as Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. Proceeds from the sale of fixed maturities, available-for-sale and trading, and equity securities and the related gross realized gains and losses, before tax, were as follows for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Proceeds on sales $ 608 $ 898 $ 10,213 $ 1,365 Gross gains 14 79 1,711 90 Gross losses — 49 2 69 |
