| Investments | 50% - 60% >60% - 70% >70% - 80% >80% and above Total 2021 $ 45 $ 157 $ 75 $ — $ — $ 277 2020 141 196 64 — — 401 2019 176 169 70 — — 415 2018 118 62 48 — — 228 2017 550 223 4 — — 777 2016 323 237 1 — — 561 2015 and prior 1,239 262 15 — — 1,516 Total $ 2,592 $ 1,306 $ 277 $ — $ — $ 4,175 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 $ 164 $ 206 $ 39 $ — $ — $ 409 2019 209 165 107 — — 481 2018 124 91 73 — — 288 2017 499 356 6 — — 861 2016 399 275 1 — — 675 2015 and prior 1,574 391 15 — — 1,980 Total $ 2,969 $ 1,484 $ 241 $ — $ — $ 4,694 The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated: 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 $ 271 $ 6 — $ — $ — $ 277 2020 337 54 10 — — 401 2019 275 63 33 44 — 415 2018 78 58 29 63 — 228 2017 431 80 40 226 — 777 2016 458 40 19 44 — 561 2015 and prior 1,283 140 60 33 — 1,516 Total $ 3,133 $ 441 $ 191 $ 410 $ — $ 4,175 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 $ 298 $ 93 $ 18 $ — $ — $ 409 2019 319 77 36 49 — 481 2018 102 79 60 47 — 288 2017 494 204 103 60 — 861 2016 591 53 31 — — 675 2015 and prior 1,676 178 72 54 — 1,980 Total $ 3,480 $ 684 $ 320 $ 210 $ — $ 4,694 The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated: 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 $ 50 $ 22 $ 22 $ 36 $ 64 $ 50 $ — $ 12 $ 21 $ 277 2020 75 159 35 37 33 29 1 11 21 401 2019 50 107 10 124 35 37 15 11 26 415 2018 44 87 54 15 13 10 — 5 — 228 2017 89 84 325 130 53 55 5 36 — 777 2016 109 121 166 29 45 63 7 15 6 561 2015 and prior 388 351 255 94 139 128 45 91 25 1,516 Total $ 805 $ 931 $ 867 $ 465 $ 382 $ 372 $ 73 $ 181 $ 99 $ 4,175 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 $ 84 $ 159 $ 35 $ 37 $ 32 $ 29 $ 1 $ 12 $ 20 $ 409 2019 63 122 11 137 54 39 17 11 27 481 2018 49 98 57 34 26 11 — 13 — 288 2017 99 98 352 136 74 60 5 37 — 861 2016 156 127 180 32 72 72 9 21 6 675 2015 and prior 526 423 326 141 198 180 49 108 29 1,980 Total $ 977 $ 1,027 $ 961 $ 517 $ 456 $ 391 $ 81 $ 202 $ 82 $ 4,694 The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated: As of June 30, 2021 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2021 $ 5 $ 29 $ 169 $ 74 $ — $ — $ — $ 277 2020 51 73 141 136 — — — 401 2019 30 67 231 67 20 — — 415 2018 42 74 77 15 3 17 — 228 2017 91 375 185 123 3 — — 777 2016 104 217 95 129 8 5 3 561 2015 and prior 577 201 286 205 64 145 38 1,516 Total $ 900 $ 1,036 $ 1,184 $ 749 $ 98 $ 167 $ 41 $ 4,175 As of December 31, 2020 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2020 $ 51 $ 73 $ 141 $ 144 $ — $ — $ — $ 409 2019 32 73 283 71 22 — — 481 2018 49 78 124 17 3 17 — 288 2017 102 415 204 136 4 — — 861 2016 129 244 138 144 9 7 4 675 2015 and prior 792 305 338 261 79 166 39 1,980 Total $ 1,155 $ 1,188 $ 1,228 $ 773 $ 117 $ 190 $ 43 $ 4,694 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 the period $ 67 $ 12 (1) Credit losses on mortgage loans for which credit losses were not previously recorded 1 5 Change in allowance due to transfer of loans from Voya Reinsurance portfolios to Resolution (7) — Increase (decrease) on mortgage loans with allowance recorded in previous period (34) 52 Provision for expected credit losses 27 69 Write-offs — (2) Recoveries of amounts previously written off — — Allowance for credit losses, end of period $ 27 $ 67 (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 $12. To provide temporary financial assistance to our commercial mortgage loans borrowers adversely effected by COVID-19 related stress, the Company has provided payment forbearance to approximately 7% 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 $ 4,175 $ 4,691 30-59 days past due — — 60-89 days past due — — Greater than 90 days past due — 3 Total $ 4,175 $ 4,694 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. 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 $ 361 $ 398 $ 737 $ 771 Equity securities 4 2 7 4 Mortgage loans on real estate 46 50 90 100 Policy loans 3 4 4 6 Short-term investments and cash equivalents 1 — 2 1 Other 84 (51) 166 (21) Gross investment income 499 403 1,006 861 Less: Investment expenses 17 18 35 37 Net investment income $ 482 $ 385 $ 971 $ 824 As of June 30, 2021 and December 31, 2020, the Company had $1 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, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 11 $ (3) $ 520 $ (21) Fixed maturities, at fair value option (145) (39) (287) 16 Equity securities, at fair value 4 6 7 1 Derivatives (8) 6 (48) 52 Embedded derivatives - fixed maturities — — (2) 4 Guaranteed benefit derivatives (12) 39 37 (130) Mortgage Loans 21 — 84 — Other investments 94 (38) 94 (43) Net realized capital gains (losses) $ (35) $ (29) $ 405 $ (121) 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 $ 420" id="sjs-B4">2. Investments Fixed Maturities Available-for-sale and fair value option ("FVO") fixed maturities were as follows as of June 30, 2021: Amortized Gross Gross Embedded Derivatives (2) Fair Allowance for credit losses Fixed maturities: U.S. Treasuries $ 536 $ 139 $ — $ — $ 675 $ — U.S. Government agencies and authorities 21 1 — — 22 — State, municipalities and political subdivisions 646 91 — — 737 — U.S. corporate public securities 7,140 1,117 26 — 8,231 — U.S. corporate private securities 3,478 380 18 — 3,840 — Foreign corporate public securities and foreign governments (1) 2,297 296 9 — 2,584 — Foreign corporate private securities (1) 2,581 252 22 — 2,800 11 Residential mortgage-backed securities 3,366 128 14 9 3,488 1 Commercial mortgage-backed securities 2,514 169 10 — 2,673 — Other asset-backed securities 1,384 23 3 — 1,404 — Total fixed maturities, including securities pledged 23,963 2,596 102 9 26,454 12 Less: Securities pledged 658 86 — — 744 — Total fixed maturities $ 23,305 $ 2,510 $ 102 $ 9 $ 25,710 $ 12 (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 Gross Gross Embedded Derivatives (2) Fair Allowance for credit losses Fixed maturities: U.S. Treasuries $ 535 $ 186 $ — $ — $ 721 $ — U.S. Government agencies and authorities 18 1 — — 19 — State, municipalities and political subdivisions 698 116 — — 814 — U.S. corporate public securities 7,632 1,531 7 — 9,156 — U.S. corporate private securities 3,870 536 27 — 4,379 — Foreign corporate public securities and foreign governments (1) 2,539 413 1 — 2,951 — Foreign corporate private securities (1) 2,991 348 25 — 3,303 11 Residential mortgage-backed securities 4,071 171 15 11 4,237 1 Commercial mortgage-backed securities 2,712 207 26 — 2,893 — Other asset-backed securities 1,500 28 6 — 1,520 2 Total fixed maturities, including securities pledged 26,566 3,537 107 11 29,993 14 Less: Securities pledged 169 52 1 — 220 — Total fixed maturities $ 26,397 $ 3,485 $ 106 $ 11 $ 29,773 $ 14 (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 $ 316 $ 320 After one year through five years 3,131 3,354 After five years through ten years 4,480 4,966 After ten years 8,772 10,249 Mortgage-backed securities 5,880 6,161 Other asset-backed securities 1,384 1,404 Fixed maturities, including securities pledged $ 23,963 $ 26,454 The investment portfolio is monitored to maintain a diversified portfolio on an ongoing basis. Credit risk is mitigated by monitoring concentrations by issuer, sector and geographic stratification and limiting exposure to any one issuer. 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 Shareholder's 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 Unrealized Capital Gains Gross Unrealized Capital Losses Fair Value June 30, 2021 Communications $ 859 $ 167 $ 1 $ 1,025 Financial 2,509 316 10 2,815 Industrial and other companies 6,907 836 22 7,721 Energy 1,385 242 15 1,612 Utilities 2,672 365 5 3,032 Transportation 873 85 20 938 Total $ 15,205 $ 2,011 $ 73 $ 17,143 December 31, 2020 Communications $ 950 $ 231 $ 1 $ 1,180 Financial 2,921 472 2 3,391 Industrial and other companies 7,284 1,155 13 8,426 Energy 1,571 259 22 1,808 Utilities 3,025 530 1 3,554 Transportation 929 128 20 1,037 Total $ 16,680 $ 2,775 $ 59 $ 19,396 The Company has elected the FVO for certain of its fixed maturities to better match the measurement of assets and liabilities in the Condensed Consolidated Statements of Operations. Certain collateralized mortgage obligations ("CMOs"), primarily interest-only and principal-only strips, are accounted for as hybrid instruments and reported at fair value with changes in the fair value recorded in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The Company invests in various categories of 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 45.8% and 48.2%, 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, repurchase agreement transactions or reverse repurchase agreements. Securities Lending The Company engages in securities lending whereby the initial collateral is required at a rate of 102% 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 $599 and $143, 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 $591 and $74, 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 $591 and $74, respectively, are included in Payables under securities loan 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 $26 and $70, 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 $ 70 U.S. corporate public securities 320 54 Foreign corporate public securities and foreign governments 188 20 Equity securities 60 — Payables under securities loan agreements $ 617 $ 144 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. Variable Interest Entities ("VIEs") The Company holds certain VIEs for investment purposes. VIEs may be in the form of private placement securities, structured securities, securitization transactions or limited partnerships. The Company has reviewed each of its holdings and determined that consolidation of these investments in the Company’s financial statements is not required, as the Company is not the primary beneficiary, because the Company does not have both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation or right to potentially significant losses or benefits, for any of its investments in VIEs. The Company did not provide any non-contractual financial support and its carrying value represents the Company’s exposure to loss. The carrying value and ownership interest of these investments are included in Limited partnerships/corporations on the Condensed Consolidated Balance Sheets. Income and losses recognized on these investments are reported in Net investment income in the Condensed Consolidated Statements of Operations. Securitizations The Company invests in various tranches of securitization entities, including Residential mortgage-backed securities ("RMBS"), Commercial mortgage-backed securities ("CMBS") and ABS. Through its investments, the Company is not obligated to provide any financial or other support to these entities. Each of the RMBS, CMBS and ABS entities are thinly capitalized by design and considered VIEs. 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 to have the power to direct the activities that most significantly impact the securitization entities' economic performance, in any of these entities, nor does the Company function in any of these roles. The Company, through its investments or other arrangements, 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. Therefore, the Company is not the primary beneficiary and does not consolidate any of the RMBS, CMBS and ABS entities in which it holds investments. These investments are accounted for as investments available-for-sale as described in the Fair Value Measurements Note to these Condensed Consolidated Financial Statements and unrealized capital gains (losses) on these securities are recorded directly in AOCI, except for certain RMBS that are accounted for under the FVO, for which changes in fair value are reflected in Other net realized capital gains (losses) in the Condensed Consolidated Statements of Operations. The Company’s maximum exposure to loss on these structured investments is limited to the amount of its investment. 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, 2021 $ 1 $ — $ 11 $ 2 $ 14 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) — — (2) (3) Write-offs — — — — — Recoveries of amounts previously written-off — — — — — Balance at June 30, 2021 $ 1 $ — $ 11 $ — $ 12 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, 2020 $ — $ — $ — $ — $ — Credit losses on securities for which credit losses were not previously recorded 1 — 11 2 14 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, 2020 $ 1 $ — $ 11 $ 2 $ 14 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 More Than Twelve Total Fair Unrealized Number of securities Fair Unrealized Number of securities Fair Unrealized Number of securities U.S. Treasuries $ 13 $ — 4 $ — $ — — $ 13 $ — 4 State, municipalities and political subdivisions 10 — 3 — — — 10 — 3 U.S. corporate public securities 856 25 332 18 1 3 874 26 335 U.S. corporate private securities 92 3 16 73 15 6 165 18 22 Foreign corporate public securities and foreign governments 224 8 63 8 1 4 232 9 67 Foreign corporate private securities 122 22 11 22 — 3 144 22 14 Residential mortgage-backed 271 7 152 224 7 75 495 14 227 Commercial mortgage-backed 138 2 34 179 8 31 317 10 65 Other asset-backed 197 1 57 97 2 52 294 3 109 Total $ 1,923 $ 68 672 $ 621 $ 34 174 $ 2,544 $ 102 846 The Company concluded that an allowance for credit losses was unnecessary for these securities because the unrealized losses are not credit 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 Below Amortized Cost More Than Twelve Total Fair Unrealized Number Fair Unrealized Number Fair Unrealized Number U.S. Treasuries $ 8 $ — 2 $ — $ — — $ 8 $ — 2 State, municipalities and political subdivisions 5 — 2 — — — 5 — 2 U.S. corporate public securities 199 5 182 22 2 4 221 7 186 U.S. corporate private securities 316 10 29 71 17 7 387 27 36 Foreign corporate public securities and foreign governments 32 1 22 6 — 2 38 1 24 Foreign corporate private securities 176 25 20 3 — 1 179 25 21 Residential mortgage-backed 613 11 134 119 4 54 732 15 188 Commercial mortgage-backed 579 25 105 33 1 7 612 26 112 Other asset-backed 206 1 59 265 5 88 471 6 147 Total $ 2,134 $ 78 555 $ 519 $ 29 163 $ 2,653 $ 107 718 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 $5 from $107 to $102 for the six months ended June 30, 2021. The change in gross unrealized capital losses was primarily due to non-credit related market factors. As of June 30, 2021, $6 of the total $102 of gross unrealized losses were from 6 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 Securities Impairment No. of Securities State, municipalities, and political subdivisions $ — — $ — * 5 U.S. corporate public securities — — 5 36 U.S. corporate private securities — — — * 1 Foreign corporate public securities and foreign governments (1) — — 1 20 Foreign corporate private securities (1) — — — * 7 Residential mortgage-backed — * 4 1 27 Commercial mortgage-backed — — 16 94 Other asset-backed — — 1 60 Total $ — * 4 $ 24 250 Credit Impairments $ — $ — Intent Impairments $ — $ 24 (1) Primarily U.S. dollar denominated. *Less than $1. Six Months Ended June 30, 2021 2020 Impairment No. of Securities Impairment No. of Securities State, municipalities, and political subdivisions $ — — $ — * 5 U.S. corporate public securities — — 11 38 U.S. corporate private securities — — — * 1 Foreign corporate public securities and foreign governments (1) — — 1 20 Foreign corporate private securities (1) — — — * 7 Residential mortgage-backed — * 9 2 32 Commercial mortgage-backed — * 1 16 95 Other asset-backed — — 1 60 Total $ — * 10 $ 31 258 Credit Impairments $ — $ — Intent Impairments $ — $ 31 (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 credit allowance recorded in connection with the troubled debt restructuring. A credit 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 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 and six months ended June 30, 2021 and June 30, 2020, the Company did not have any new commercial mortgage loan troubled debt restructuring 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: 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 $ 45 $ 157 $ 75 $ — $ — $ 277 2020 141 196 64 — — 401 2019 176 169 70 — — 415 2018 118 62 48 — — 228 2017 550 223 4 — — 777 2016 323 237 1 — — 561 2015 and prior 1,239 262 15 — — 1,516 Total $ 2,592 $ 1,306 $ 277 $ — $ — $ 4,175 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 $ 164 $ 206 $ 39 $ — $ — $ 409 2019 209 165 107 — — 481 2018 124 91 73 — — 288 2017 499 356 6 — — 861 2016 399 275 1 — — 675 2015 and prior 1,574 391 15 — — 1,980 Total $ 2,969 $ 1,484 $ 241 $ — $ — $ 4,694 The following tables present commercial mortgage loans by year of origination and DSC ratio as of the dates indicated: 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 $ 271 $ 6 — $ — $ — $ 277 2020 337 54 10 — — 401 2019 275 63 33 44 — 415 2018 78 58 29 63 — 228 2017 431 80 40 226 — 777 2016 458 40 19 44 — 561 2015 and prior 1,283 140 60 33 — 1,516 Total $ 3,133 $ 441 $ 191 $ 410 $ — $ 4,175 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 $ 298 $ 93 $ 18 $ — $ — $ 409 2019 319 77 36 49 — 481 2018 102 79 60 47 — 288 2017 494 204 103 60 — 861 2016 591 53 31 — — 675 2015 and prior 1,676 178 72 54 — 1,980 Total $ 3,480 $ 684 $ 320 $ 210 $ — $ 4,694 The following tables present the commercial mortgage loans by year of origination and U.S. region as of the dates indicated: 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 $ 50 $ 22 $ 22 $ 36 $ 64 $ 50 $ — $ 12 $ 21 $ 277 2020 75 159 35 37 33 29 1 11 21 401 2019 50 107 10 124 35 37 15 11 26 415 2018 44 87 54 15 13 10 — 5 — 228 2017 89 84 325 130 53 55 5 36 — 777 2016 109 121 166 29 45 63 7 15 6 561 2015 and prior 388 351 255 94 139 128 45 91 25 1,516 Total $ 805 $ 931 $ 867 $ 465 $ 382 $ 372 $ 73 $ 181 $ 99 $ 4,175 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 $ 84 $ 159 $ 35 $ 37 $ 32 $ 29 $ 1 $ 12 $ 20 $ 409 2019 63 122 11 137 54 39 17 11 27 481 2018 49 98 57 34 26 11 — 13 — 288 2017 99 98 352 136 74 60 5 37 — 861 2016 156 127 180 32 72 72 9 21 6 675 2015 and prior 526 423 326 141 198 180 49 108 29 1,980 Total $ 977 $ 1,027 $ 961 $ 517 $ 456 $ 391 $ 81 $ 202 $ 82 $ 4,694 The following tables present the commercial mortgage loans by year of origination and property type as of the dates indicated: As of June 30, 2021 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2021 $ 5 $ 29 $ 169 $ 74 $ — $ — $ — $ 277 2020 51 73 141 136 — — — 401 2019 30 67 231 67 20 — — 415 2018 42 74 77 15 3 17 — 228 2017 91 375 185 123 3 — — 777 2016 104 217 95 129 8 5 3 561 2015 and prior 577 201 286 205 64 145 38 1,516 Total $ 900 $ 1,036 $ 1,184 $ 749 $ 98 $ 167 $ 41 $ 4,175 As of December 31, 2020 Property Type Year of Origination Retail Industrial Apartments Office Hotel/Motel Other Mixed Use Total 2020 $ 51 $ 73 $ 141 $ 144 $ — $ — $ — $ 409 2019 32 73 283 71 22 — — 481 2018 49 78 124 17 3 17 — 288 2017 102 415 204 136 4 — — 861 2016 129 244 138 144 9 7 4 675 2015 and prior 792 305 338 261 79 166 39 1,980 Total $ 1,155 $ 1,188 $ 1,228 $ 773 $ 117 $ 190 $ 43 $ 4,694 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 the period $ 67 $ 12 (1) Credit losses on mortgage loans for which credit losses were not previously recorded 1 5 Change in allowance due to transfer of loans from Voya Reinsurance portfolios to Resolution (7) — Increase (decrease) on mortgage loans with allowance recorded in previous period (34) 52 Provision for expected credit losses 27 69 Write-offs — (2) Recoveries of amounts previously written off — — Allowance for credit losses, end of period $ 27 $ 67 (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 $12. To provide temporary financial assistance to our commercial mortgage loans borrowers adversely effected by COVID-19 related stress, the Company has provided payment forbearance to approximately 7% 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 $ 4,175 $ 4,691 30-59 days past due — — 60-89 days past due — — Greater than 90 days past due — 3 Total $ 4,175 $ 4,694 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. 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 $ 361 $ 398 $ 737 $ 771 Equity securities 4 2 7 4 Mortgage loans on real estate 46 50 90 100 Policy loans 3 4 4 6 Short-term investments and cash equivalents 1 — 2 1 Other 84 (51) 166 (21) Gross investment income 499 403 1,006 861 Less: Investment expenses 17 18 35 37 Net investment income $ 482 $ 385 $ 971 $ 824 As of June 30, 2021 and December 31, 2020, the Company had $1 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, Six Months Ended June 30, 2021 2020 2021 2020 Fixed maturities, available-for-sale, including securities pledged $ 11 $ (3) $ 520 $ (21) Fixed maturities, at fair value option (145) (39) (287) 16 Equity securities, at fair value 4 6 7 1 Derivatives (8) 6 (48) 52 Embedded derivatives - fixed maturities — — (2) 4 Guaranteed benefit derivatives (12) 39 37 (130) Mortgage Loans 21 — 84 — Other investments 94 (38) 94 (43) Net realized capital gains (losses) $ (35) $ (29) $ 405 $ (121) 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 $ 420 |
