| Investments | 6. Investments See Note 8 for information about the fair value hierarchy for investments and the related valuation methodologies. In connection with the adoption of new guidance related to the credit losses (see Note 1), effective January 1, 2020, the Company updated its accounting policies on certain investments. Any accounting policy updates required by the new guidance are described in this footnote. Fixed Maturity Securities Available-for-sale Fixed Maturity Securities by Sector Fixed maturity securities by sector were as follows at: December 31, 2020 December 31, 2019 Amortized Allowance for Credit Losses Gross Unrealized Estimated Allowance for Credit Losses Gross Unrealized Estimated Gains Losses Gains Losses (In millions) U.S. corporate $ 32,608 $ 2 $ 5,370 $ 70 $ 37,906 $ 28,375 $ — $ 2,852 $ 67 $ 31,160 Foreign corporate 10,060 — 1,501 50 11,511 9,177 — 741 74 9,844 U.S. government and agency 6,007 — 2,637 6 8,638 5,529 — 1,869 2 7,396 RMBS 7,653 — 644 3 8,294 8,692 — 438 12 9,118 CMBS 6,207 — 592 9 6,790 5,500 — 264 9 5,755 State and political subdivision 3,673 — 967 — 4,640 3,358 — 701 2 4,057 ABS 2,834 — 60 10 2,884 1,945 — 21 11 1,955 Foreign government 1,487 — 346 1 1,832 1,503 — 250 2 1,751 Total fixed maturity securities $ 70,529 $ 2 $ 12,117 $ 149 $ 82,495 $ 64,079 $ — $ 7,136 $ 179 $ 71,036 The Company held non-income producing fixed maturity securities with an estimated fair value of $5 million at December 31, 2020. The Company did not hold any non-income producing fixed maturity securities at December 31, 2019. Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at December 31, 2020: Due in One Year or Less Due After One Year Through Five Years Due After Five Years Through Ten Years Due After Ten Years Structured Securities Total Fixed Maturity Securities (In millions) Amortized cost $ 1,504 $ 7,304 $ 14,562 $ 30,465 $ 16,694 $ 70,529 Estimated fair value $ 1,521 $ 7,851 $ 16,339 $ 38,816 $ 17,968 $ 82,495 Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been presented in the year of final contractual maturity. Structured Securities are shown separately, as they are not due at a single maturity. Continuous Gross Unrealized Losses for Fixed Maturity Securities by Sector The estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position, by sector and by length of time that the securities have been in a continuous unrealized loss position, were as follows at: December 31, 2020 December 31, 2019 Less than 12 Months 12 Months or Greater Less than 12 Months 12 Months or Greater Estimated Gross Estimated Gross Estimated Gross Estimated Gross (Dollars in millions) U.S. corporate $ 1,737 $ 57 $ 185 $ 13 $ 2,017 $ 44 $ 326 $ 23 Foreign corporate 254 8 387 42 576 12 561 62 U.S. government and agency 236 6 — — 40 2 — — RMBS 180 2 22 1 857 8 386 4 CMBS 332 7 44 2 559 7 171 2 State and political subdivision 48 — — — 143 2 8 — ABS 506 3 629 7 362 2 676 9 Foreign government 54 1 — — 65 2 — — Total fixed maturity securities $ 3,347 $ 84 $ 1,267 $ 65 $ 4,619 $ 79 $ 2,128 $ 100 Total number of securities in an unrealized loss position 667 244 720 302 Allowance for Credit Losses for Fixed Maturity Securities Evaluation and Measurement Methodologies For fixed maturity securities in an unrealized loss position, management first assesses whether the Company intends to sell, or whether it is more likely than not it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to estimated fair value through net investment gains (losses). For fixed maturity securities that do not meet the aforementioned criteria, management evaluates whether the decline in estimated fair value has resulted from credit losses or other factors. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the allowance for credit loss evaluation process include, but are not limited to: (i) the extent to which estimated fair value is less than amortized cost; (ii) any changes to the rating of the security by a rating agency; (iii) adverse conditions specifically related to the security, industry or geographic area; and (iv) payment structure of the fixed maturity security and the likelihood of the issuer being able to make payments in the future or the issuer’s failure to make scheduled interest and principal payments. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss is deemed to exist and an allowance for credit losses is recorded, limited by the amount that the estimated fair value is less than the amortized cost basis, with a corresponding charge to net investment gains (losses). Any unrealized losses that have not been recorded through an allowance for credit losses are recognized in OCI. Once a security specific allowance for credit losses is established, the present value of cash flows expected to be collected from the security continues to be reassessed. Any changes in the security specific allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense in net investment gains (losses). Fixed maturity securities are also evaluated to determine whether any amounts have become uncollectible. When all, or a portion, of a security is deemed uncollectible, the uncollectible portion is written-off with an adjustment to amortized cost and a corresponding reduction to the allowance for credit losses. Accrued interest receivables are presented separate from the amortized cost basis of fixed maturity securities. An allowance for credit losses is not estimated on an accrued interest receivable, rather receivable balances 90-days past due are deemed uncollectible and are written off with a corresponding reduction to net investment income. The accrued interest receivable on fixed maturity securities totaled $514 million at December 31, 2020 and is included in accrued investment income. Fixed maturity securities are also evaluated to determine if they qualify as purchased financial assets with credit deterioration (“PCD”). To determine if the credit deterioration experienced since origination is more than insignificant, both (i) the extent of the credit deterioration and (ii) any rating agency downgrades are evaluated. For securities categorized as PCD assets, the present value of cash flows expected to be collected from the security are compared to the par value of the security. If the present value of cash flows expected to be collected is less than the par value, credit losses are embedded in the purchase price of the PCD asset. In this situation, both an allowance for credit losses and amortized cost gross-up is recorded, limited by the amount that the estimated fair value is less than the grossed-up amortized cost basis. Any difference between the purchase price and the present value of cash flows is amortized or accreted into net investment income over the life of the PCD asset. Any subsequent PCD asset allowance for credit losses is evaluated in a manner similar to the process described above for fixed maturity securities. Current Period Evaluation Rollforward of the Allowance for Credit Losses for Fixed Maturity Securities by Sector The changes in the allowance for credit losses by sector were as follows: U.S. Corporate Foreign Corporate Total (In millions) Balance at January 1, 2020 $ 3 $ 1 $ 4 Allowance on securities where credit losses were not previously recorded 3 1 4 Reductions for securities sold (1) — (1) Change in allowance on securities with an allowance recorded in a previous period — (1) (1) Write-offs charged against allowance (1) (3) (1) (4) Balance at December 31, 2020 $ 2 $ — $ 2 _______________ (1) The Company recorded total write-offs of $13 million for the year ended December 31, 2020. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at: December 31, 2020 2019 Carrying % of Carrying % of (Dollars in millions) Commercial $ 9,714 61.4 % $ 9,721 61.7 % Agricultural 3,538 22.4 3,388 21.5 Residential 2,650 16.8 2,708 17.2 Total mortgage loans (1) 15,902 100.6 15,817 100.4 Allowance for credit losses (94) (0.6) (64) (0.4) Total mortgage loans, net $ 15,808 100.0 % $ 15,753 100.0 % _______________ (1) Purchases of mortgage loans from third parties were $815 million and $962 million for the years ended December 31, 2020 and 2019, respectively, and were primarily comprised of residential mortgage loans. Allowance for Credit Losses for Mortgage Loans Evaluation and Measurement Methodologies The allowance for credit losses is a valuation account that is deducted from the mortgage loan’s amortized cost basis to present the net amount expected to be collected on the mortgage loan. The loan balance, or a portion of the loan balance, is written-off against the allowance when management believes this amount is uncollectible. Accrued interest receivables are presented separate from the amortized cost basis of mortgage loans. An allowance for credit losses is generally not estimated on an accrued interest receivable, rather when a loan is placed in nonaccrual status the associated accrued interest receivable balance is written off with a corresponding reduction to net investment income. For mortgage loans that are granted payment deferrals due to the worldwide pandemic sparked by the novel coronavirus (“COVID-19 pandemic”), interest continues to be accrued during the deferral period if the loan was less than 30 days past due at December 31, 2019 and performing at the onset of the pandemic. Accrued interest on COVID-19 pandemic impacted loans was not significant at December 31, 2020. The accrued interest receivable on mortgage loans is included in accrued investment income and totaled $89 million at December 31, 2020. The allowance for credit losses is estimated using relevant available information, from internal and external sources, relating to past events, current conditions, and a reasonable and supportable forecast. Historical credit loss experience provides the basis for estimating expected credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics and environmental conditions. A reasonable and supportable forecast period of two-years is used with an input reversion period of one-year. Mortgage loans are evaluated in each of the three portfolio segments to determine the allowance for credit losses. The loan-level loss rates are determined using individual loan terms and characteristics, risk pools/internal ratings, national economic forecasts, prepayment speeds, and estimated default and loss severity. The resulting loss rates are applied to the mortgage loan’s amortized cost to generate an allowance for credit losses. In certain situations, the allowance for credit losses is measured as the difference between the loan’s amortized cost and liquidation value of the collateral. These situations include collateral dependent loans, expected troubled debt restructurings (“TDR”), foreclosure probable loans, and loans with dissimilar risk characteristics. Mortgage loans are also evaluated to determine if they qualify as PCD assets. To determine if the credit deterioration experienced since origination is more than insignificant, the extent of credit deterioration is evaluated. All re-performing/modified loan (“RPL”) pools purchased after December 31, 2019 are determined to have been acquired with evidence of more than insignificant credit deterioration since origination and are classified as PCD assets. RPLs are pools of residential mortgage loans acquired at a discount or premium which have both credit and non-credit components. For PCD mortgage loans, the allowance for credit losses is determined using a similar methodology described above, except the loss-rate is determined at the pool level instead of the individual loan level. The initial allowance for credit losses, determined on a collective basis, is then allocated to the individual loans. The initial amortized cost of the loan is grossed-up to reflect the sum of the loan’s purchase price and allowance for credit losses. The difference between the grossed-up amortized cost basis and the par value of the loan is a noncredit discount or premium, which is accreted or amortized into net investment income over the remaining life of the loan. Any subsequent PCD mortgage loan allowance for credit losses is evaluated in a manner similar to the process described above for each of the three portfolio segments. Rollforward of the Allowance for Credit Losses for Mortgage Loans by Portfolio Segment The changes in the allowance for credit losses by portfolio segment were as follows: Commercial Agricultural Residential Total (In millions) Balance at December 31, 2019 $ 47 $ 10 $ 7 $ 64 Cumulative effect of change in accounting principle (20) 7 15 2 Balance at January 1, 2020 27 17 22 66 Current period provision 17 (2) 13 28 Balance at December 31, 2020 $ 44 $ 15 $ 35 $ 94 PCD Mortgage Loans Purchases of PCD mortgage loans are summarized as follows: Year Ended December 31, 2020 (In millions) Purchase price $ 159 Allowance at acquisition date 3 Discount or premium attributable to other factors (2) Par value $ 160 Credit Quality of Mortgage Loans by Portfolio Segment The amortized cost of mortgage loans by year of origination and credit quality indicator was as follows at: 2020 2019 2018 2017 2016 Prior Total (In millions) December 31, 2020 Commercial mortgage loans Loan-to-value ratios: Less than 65% $ 317 $ 1,527 $ 1,004 $ 515 $ 1,109 $ 2,808 $ 7,280 65% to 75% 200 450 482 322 59 521 2,034 76% to 80% — — — 44 79 8 131 Greater than 80% — — 29 — 6 234 269 Total commercial mortgage loans 517 1,977 1,515 881 1,253 3,571 9,714 Agricultural mortgage loans Loan-to-value ratios: Less than 65% 569 526 749 391 417 663 3,315 65% to 75% 81 81 10 33 — 18 223 Total agricultural mortgage loans 650 607 759 424 417 681 3,538 Residential mortgage loans Performing 214 381 413 131 70 1,375 2,584 Nonperforming 2 6 4 — 1 53 66 Total residential mortgage loans 216 387 417 131 71 1,428 2,650 Total $ 1,383 $ 2,971 $ 2,691 $ 1,436 $ 1,741 $ 5,680 $ 15,902 The loan-to-value ratio is a measure commonly used to assess the quality of commercial and agricultural mortgage loans. The loan-to-value ratio compares the amount of the loan to the estimated fair value of the underlying property collateralizing the loan and is commonly expressed as a percentage. A loan-to-value ratio less than 100% indicates an excess of collateral value over the loan amount. Loan-to-value ratios greater than 100% indicate that the loan amount exceeds the collateral value. Performing status is a measure commonly used to assess the quality of residential mortgage loans. A loan is considered performing when the borrower makes consistent and timely payments. The amortized cost of commercial mortgage loans by debt-service coverage ratio was as follows at: December 31, 2020 2019 Amortized Cost % of Amortized Cost % of (Dollars in millions) Debt-service coverage ratios: Greater than 1.20x $ 9,450 97.3 % $ 9,257 95.2 % 1.00x - 1.20x 204 2.1 298 3.1 Less than 1.00x 60 0.6 166 1.7 Total $ 9,714 100.0 % $ 9,721 100.0 % The debt-service coverage ratio compares a property’s net operating income to its debt-service payments. Debt-service coverage ratios less than 1.00 times indicate that property operations do not generate enough income to cover the loan’s current debt payments. A debt-service coverage ratio greater than 1.00 times indicates an excess of net operating income over the debt-service payments. Past Due Mortgage Loans by Portfolio Segment The Company has a high-quality, well-performing mortgage loan portfolio, with over 99% of all mortgage loans classified as performing at both December 31, 2020 and 2019. Delinquency is defined consistent with industry practice, when mortgage loans are past due as follows: commercial and residential mortgage loans — 60 days and agricultural mortgage loans — 90 days. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the past due status of the impacted loans during the forbearance period is locked-in as of March 1, 2020, which reflects the date on which the COVID-19 pandemic began to affect the borrower’s ability to make payments. At December 31, 2020, $38 million of the COVID-19 pandemic modified loans were classified as delinquent. The aging of the amortized cost of past due mortgage loans by portfolio segment was as follows at: December 31, 2020 Commercial Agricultural Residential Total (In millions) Current $ 9,714 $ 3,538 $ 2,575 $ 15,827 30-59 days past due — — 9 9 60-89 days past due — — 24 24 90-179 days past due — — 27 27 180+ days past due — — 15 15 Total $ 9,714 $ 3,538 $ 2,650 $ 15,902 Mortgage Loans in Nonaccrual Status by Portfolio Segment Mortgage loans are placed in a nonaccrual status if there are concerns regarding collectability of future payments or the loan is past due, unless the past due loan is well collateralized and in the process of foreclosure. To the extent a payment deferral is agreed to with a borrower, in response to the COVID-19 pandemic, the impacted loans generally will not be reported as in a nonaccrual status during the period of deferral. A COVID-19 pandemic modified loan is only reported as a nonaccrual asset in the event a borrower declares bankruptcy, the borrower experiences significant credit deterioration such that the Company does not expect to collect all principal and interest due, or the loan was 90 days past due at the onset of the pandemic. At December 31, 2020, $38 million of the COVID-19 pandemic modified loans were in nonaccrual status. The amortized cost of mortgage loans in a nonaccrual status by portfolio segment were as follows at: Commercial Agricultural Residential Total (In millions) December 31, 2019 $ — $ 21 $ 37 $ 58 December 31, 2020 (1) $ — $ — $ 66 $ 66 _______________ (1) The Company had $7 million of residential mortgage loans in nonaccrual status for which there was no related allowance for credit losses for the year ended December 31, 2020. Modified Mortgage Loans by Portfolio Segment Under certain circumstances, modifications are granted to nonperforming mortgage loans. Each modification is evaluated to determine if a TDR has occurred. A modification is a TDR when the borrower is in financial difficulty and the creditor makes concessions. Generally, the types of concessions may include reducing the amount of debt owed, 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 did not have a significant amount of mortgage loans modified in a troubled debt restructuring during the year ended December 31, 2020. Short-term modifications made on a good faith basis to borrowers who were not more than 30 days past due at December 31, 2019 and in response to the COVID-19 pandemic are not considered TDRs. Other Invested Assets Over 95% of other invested assets is comprised of freestanding derivatives with positive estimated fair values. See Note 7 for information about freestanding derivatives with positive estimated fair values. Other invested assets also includes tax credit and renewable energy partnerships, leveraged leases and FHLB stock. Leveraged Leases The carrying value of leveraged leases at December 31, 2020 and 2019 was $50 million and $64 million, respectively, net of allowance for credit losses of $13 million and $0, respectively. Rental receivables are generally due in periodic installments. The payment periods for leveraged leases generally range from one to 12 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. Nonperforming rental receivables are generally defined as those that are 90 days or more past due. At both December 31, 2020 and 2019, all leveraged leases were performing. Net Unrealized Investment Gains (Losses) Unrealized investment gains (losses) on fixed maturity securities and the effect on DAC, VOBA, DSI and future policy benefits, that would result from the realization of the unrealized gains (losses), are included in net unrealized investment gains (losses) in AOCI. The components of net unrealized investment gains (losses), included in AOCI, were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 11,968 $ 6,957 $ 1,691 Derivatives 173 245 264 Other (16) (13) (13) Subtotal 12,125 7,189 1,942 Amounts allocated from: Future policy benefits (4,313) (2,692) (886) DAC, VOBA and DSI (520) (341) (90) Subtotal (4,833) (3,033) (976) Deferred income tax benefit (expense) (1,531) (873) (203) Net unrealized investment gains (losses) $ 5,761 $ 3,283 $ 763 The changes in net unrealized investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Balance at December 31, $ 3,283 $ 763 $ 1,726 Unrealized investment gains (losses) change due to cumulative effect, net of income tax — — (79) Balance at January 1, 3,283 763 1,647 Unrealized investment gains (losses) during the year 4,936 5,247 (3,057) Unrealized investment gains (losses) relating to: Future policy benefits (1,621) (1,806) 1,740 DAC, VOBA and DSI (179) (251) 177 Deferred income tax benefit (expense) (658) (670) 256 Balance at December 31, $ 5,761 $ 3,283 $ 763 Change in net unrealized investment gains (losses) $ 2,478 $ 2,520 $ (884) Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company’s equity, other than the U.S. government and its agencies, at both December 31, 2020 and 2019. Securities Lending Elements of the securities lending program are presented below at: December 31, 2020 2019 (In millions) Securities on loan: (1) Amortized cost $ 2,373 $ 2,031 Estimated fair value $ 3,603 $ 2,996 Cash collateral received from counterparties (2) $ 3,674 $ 3,074 Reinvestment portfolio — estimated fair value $ 3,830 $ 3,174 _______________ (1) Included within fixed maturity securities. (2) Included within payables for collateral under securities loaned and other transactions. The cash collateral liability by loaned security type and remaining tenor of the agreements were as follows at: December 31, 2020 December 31, 2019 Open (1) 1 Month or Less 1 to 6 Months Total Open (1) 1 Month or Less 1 to 6 Months Total (In millions) U.S. government and agency $ 937 $ 2,300 $ 437 $ 3,674 $ 1,279 $ 1,094 $ 701 $ 3,074 _______________ (1) The related loaned security could be returned to the Company on the next business day which would require the Company to immediately return the cash collateral. If the Company is required to return significant amounts of cash collateral on short notice and is forced to sell securities to meet the return obligation, it may have difficulty selling such collateral that is invested in securities in a timely manner, be forced to sell securities in a volatile or illiquid market for less than what otherwise would have been realized in normal market conditions, or both. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2020 was $920 million, primarily comprised of U.S. government and agency securities which, if put back to the Company, could be immediately sold to satisfy the cash requirement. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including agency RMBS, ABS, U.S. and foreign corporate securities, non-agency RMBS and U.S. government and agency securities) with 63% invested in agency RMBS, cash and cash equivalents and U.S. government and agency securities at December 31, 2020. If the securities on loan or the reinvestment portfolio become less liquid, the Company has the liquidity resources of most of its general account available to meet any potential cash demands when securities on loan are put back to the Company. Invested Assets on Deposit, Held in Trust and Pledged as Collateral Invested assets on deposit, held in trust and pledged as collateral at estimated fair value were as follows at: December 31, 2020 2019 (In millions) Invested assets on deposit (regulatory deposits) (1) $ 10,135 $ 9,349 Invested assets held in trust (reinsurance agreements) (2) 5,717 4,561 Invested assets pledged as collateral (3) 5,595 3,641 Total invested assets on deposit, held in trust and pledged as collateral $ 21,447 $ 17,551 _______________ (1) The Company has assets, primarily fixed maturity securities, on deposit with governmental authorities relating to certain policyholder liabilities, of which $60 million and $69 million of the assets on deposit represents restricted cash and cash equivalents at December 31, 2020 and 2019, respectively. (2) The Company has assets, primarily fixed maturity securities, held in trust relating to certain reinsurance transactions, of which $101 million and $124 million of the assets held in trust balance represents restricted cash and cash equivalents at December 31, 2020 and 2019, respectively. (3) The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 3) and derivative transactions (see Note 7). See “— Securities Lending” for information regarding securities on loan. Collectively Significant Equity Method Investments The Company holds investments in limited partnerships and LLCs consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $2.8 billion at December 31, 2020. The Company’s maximum exposure to loss related to these equity method investments is the carrying value of these investments plus unfunded commitments of $1.5 billion at December 31, 2020. The Company’s investments in limited partnerships and LLCs are generally of a passive nature in that the Company does not participate in the management of the entities. As described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. Aggregate net investment income from these equity method investments exceeded 10% of the Company’s consolidated pre-tax income (loss) for each of the years ended December 31, 2020, 2019 and 2018. This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of and for the years ended December 31, 2020, 2019 and 2018. Aggregate total assets of these entities totaled $504.0 billion and $404.0 billion at December 31, 2020 and 2019, respectively. Aggregate total liabilities of these entities totaled $63.0 billion and $52.8 billion at December 31, 2020 and 2019, respectively. Aggregate net income (loss) of these entities totaled $37.7 billion, $33.3 billion and $33.3 billion for the years ended December 31, 2020, 2019 and 2018, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities The Company has invested in legal entities that are variable interest entities (“VIE”). VIEs are consolidated when the investor is the primary beneficiary. A primary beneficiary is the variable interest holder in a VIE with both the power to (i) direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. There were no material VIEs for which the Company has concluded that it is the primary beneficiary at either December 31, 2020 or 2019. The carrying amount and maximum exposure to loss related to the VIEs for which the Company has concluded that it holds a variable interest, but is not the primary beneficiary, were as follows at: December 31, 2020 2019 Carrying Maximum Carrying Maximum (In millions) Fixed maturity securities $ 13,665 $ 12,581 $ 13,094 $ 12,454 Limited partnerships and LLCs 2,319 3,578 1,907 3,080 Total $ 15,984 $ 16,159 $ 15,001 $ 15,534 The Company’s investments in unconsolidated VIEs are described below. Fixed Maturity Securities The Company invests in U.S. corporate bonds, foreign corporate bonds, and Structured Securities, issued by VIEs. The Company is not obligated to provide any financial or other support to these VIEs, other than the original investment. The Company’s involvement with these entities is limited to that of a passive investor. The Company has no unilateral right to appoint or remove the servicer, special servicer, or investment manager, which are generally viewed as having the power to direct the activities that most significantly impact the economic performance of the VIE, nor does the Company function in any of these roles. The Company does not have the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the entity; as a result, the Company has determined it is not the primary beneficiary, or consolidator, of the VIE. The Company’s maximum exposure to loss on these fixed maturity securities is limited to the amortized cost of these investments. See “— Fixed Maturity Securities Available-for-sale” for information on these securities. Limited Partnerships and LLCs The Company holds investments in certain limited partnerships and LLCs which are VIEs. These ventures include limited partnerships, LLCs, private equity funds, hedge funds, and to a lesser extent tax credit and renewable energy partnerships. The Company is not considered the primary beneficiary, or consolidator, when its involvement takes the form of a limited partner interest and is restricted to a role of a passive investor, as a limited partner’s interest does not provide the Company with any substantive kick-out or participating rights, nor does it provide the Company with the power to direct the activities of the fund. The Company’s maximum exposure to loss on these investments is limited to: (i) the amount invested in debt or equity of the VIE and (ii) commitments to the VIE, as described in Note 15. Net Investment Income The components of net investment income were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Investment income: Fixed maturity securities $ 2,700 $ 2,673 $ 2,565 Equity securities 6 8 7 Mortgage loans 666 680 543 Policy loans 56 67 85 Limited partnerships and LLCs (1) 240 220 258 Cash, cash equivalents and short-term investments 49 93 35 Other 54 41 41 Total investment income 3,771 3,782 3,534 Less: Investment expenses 170 203 196 Net investment income $ 3,601 $ 3,579 $ 3,338 _______________ (1) Includes net investment income pertaining to other limited partnership interests of $225 million, $181 million and $211 million for the years ended December 31, 2020, 2019, and 2018, respectively. See “— Related Party Investment Transactions” for discussion of related party investment expenses. Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows: Years Ended December 31, 2020 2019 2018 (In millions) Fixed maturity securities $ 297 $ 106 $ (180) Equity securities — 17 (16) Mortgage loans (27) (10) (13) Limited partnerships and LLCs (3) 7 40 Other 11 (8) (38) Total net investment gains (losses) $ 278 $ 112 $ (207) Sales or Disposals of Fixed Maturity Securities Investment gains and losses on sales of securities are determined on a specific identification basis. Proceeds from sales o |
