Company Quick10K Filing
⚲
Loew's
Financials
Price51.51 EPS4
Shares306 P/E14
MCap15,748 P/FCF12
Net Debt10,953 EBIT1,743
TEV26,701 TEV/EBIT15
TTM 2019-09-30, in MM, except price, ratios
Filings
10-Q 2021-03-31 Filed 2021-05-07
10-K 2020-12-31 Filed 2021-02-09
10-Q 2020-09-30 Filed 2020-11-02
10-Q 2020-06-30 Filed 2020-08-03
10-Q 2020-03-31 Filed 2020-05-04
10-K 2019-12-31 Filed 2020-02-12
10-Q 2019-09-30 Filed 2019-10-28
10-Q 2019-06-30 Filed 2019-08-05
10-Q 2019-03-31 Filed 2019-04-29
10-K 2018-12-31 Filed 2019-02-13
10-Q 2018-09-30 Filed 2018-11-05
10-Q 2018-06-30 Filed 2018-07-30
10-Q 2018-03-31 Filed 2018-04-30
10-K 2017-12-31 Filed 2018-02-15
10-Q 2017-09-30 Filed 2017-10-30
10-Q 2017-06-30 Filed 2017-07-31
10-Q 2017-03-31 Filed 2017-05-01
10-K 2016-12-31 Filed 2017-02-16
10-Q 2016-09-30 Filed 2016-10-31
10-Q 2016-06-30 Filed 2016-08-01
10-Q 2016-03-31 Filed 2016-05-03
10-K 2015-12-31 Filed 2016-02-19
10-Q 2015-09-30 Filed 2015-11-03
10-Q 2015-06-30 Filed 2015-08-04
10-Q 2015-03-31 Filed 2015-05-05
10-K 2014-12-31 Filed 2015-02-24
10-Q 2014-09-30 Filed 2014-11-04
10-Q 2014-06-30 Filed 2014-08-04
10-Q 2014-03-31 Filed 2014-04-29
10-K 2013-12-31 Filed 2014-02-24
10-Q 2013-09-30 Filed 2013-10-29
10-Q 2013-06-30 Filed 2013-07-30
10-Q 2013-03-31 Filed 2013-04-30
10-K 2012-12-31 Filed 2013-02-22
10-Q 2012-09-30 Filed 2012-10-30
10-Q 2012-06-30 Filed 2012-07-31
10-Q 2012-03-31 Filed 2012-05-01
10-K 2011-12-31 Filed 2012-02-22
10-Q 2011-09-30 Filed 2011-11-01
10-Q 2011-06-30 Filed 2011-08-03
10-Q 2011-03-31 Filed 2011-05-03
10-K 2010-12-31 Filed 2011-02-23
10-Q 2010-06-30 Filed 2010-08-04
10-Q 2010-03-31 Filed 2010-05-04
10-K 2009-12-31 Filed 2010-02-24
Reports
8-K 2020-11-02
8-K 2020-08-03
8-K 2020-05-12
8-K 2020-05-06
8-K 2020-05-04
8-K 2020-04-26
8-K 2020-02-10
8-K 2019-10-28
8-K 2019-08-05
8-K 2019-05-14
8-K 2019-04-29
8-K 2019-02-11
8-K 2019-01-28
8-K 2018-11-05
8-K 2018-07-30
8-K 2018-06-29
8-K 2018-05-08
8-K 2018-04-30
8-K 2018-02-13
8-K 2018-02-12
8-K 2018-02-07

L 10Q Quarterly Report

Content
Part I. Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
Exhibits
EX-31.1 brhc10024208_ex31-1.htm
EX-31.2 brhc10024208_ex31-2.htm
EX-32.1 brhc10024208_ex32-1.htm
EX-32.2 brhc10024208_ex32-2.htm

Loew's Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
856851341702012201420172020
Assets, Equity
 3.93.12.21.40.5-0.32012201420172020
Rev, G Profit, Net Income
 1.40.70.1-0.6-1.2-1.92012201420172020
Ops, Inv, Fin

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
 OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From ____________ to _____________

Commission File Number 1-6541

LOEWS CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
  
13-2646102
(State or other jurisdiction of incorporation or organization)
  
(I.R.S. Employer Identification No.)

667 Madison Avenue, New York, N.Y. 10065-8087
(Address of principal executive offices) (Zip Code)

(212) 521-2000
(Registrant’s telephone number, including area code)

NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.01 per share
L
New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒
  
No ☐
    

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒
  
No ☐
    

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☒
Accelerated filer  ☐
Non-accelerated filer  ☐
Smaller reporting company  ☐

 
Emerging growth company  ☐
  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐
  
No  ☒
    

As of April 30, 2021, there were 263,175,591 shares of the registrant’s common stock outstanding.



INDEX
Page
No.
 
   
 
   
3
 
   
4
 
   
5
 
   
6
 
   
7
 
   
8
   
28
   
42
   
43
   
43
   
43
   
43
   
45
   
46

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)

  
March 31, 2021
    
December 31, 2020
  
(Dollar amounts in millions, except per share data)
            
             
Assets:
            
             
Investments:
            
Fixed maturities, amortized cost of $39,293 and $38,963, less allowance for credit loss of $43 and $40
  
$
43,584
    
$
44,646
  
Equity securities, cost of $1,455 and $1,456
    
1,580
      
1,561
  
Limited partnership investments
    
1,769
      
1,798
  
Other invested assets, primarily mortgage loans, less allowance for credit loss of $26 and $26
    
1,144
      
1,165
  
Short term investments
    
4,282
      
4,674
  
Total investments
    
52,359
      
53,844
  
Cash
    
660
      
478
  
Receivables
    
8,539
      
7,833
  
Property, plant and equipment
    
9,921
      
10,451
  
Goodwill
    
349
      
785
  
Deferred non-insurance warranty acquisition expenses
    
3,149
      
3,068
  
Deferred acquisition costs of insurance subsidiaries
    
741
      
708
  
Other assets
    
2,501
      
3,069
  
Assets held for sale
    
1,786
          
Total assets
  
$
80,005
    
$
80,236
  
                 
Liabilities and Equity:
                
                 
Insurance reserves:
                
Claim and claim adjustment expense
  
$
23,056
    
$
22,706
  
Future policy benefits
    
12,772
      
13,318
  
Unearned premiums
    
5,319
      
5,119
  
Total insurance reserves
    
41,147
      
41,143
  
Payable to brokers
    
310
      
92
  
Short term debt
    
141
      
37
  
Long term debt
    
8,996
      
10,072
  
Deferred income taxes
    
924
      
1,065
  
Deferred non-insurance warranty revenue
    
4,119
      
4,023
  
Other liabilities
    
4,375
      
4,623
  
Liabilities held for sale
    
1,456
          
Total liabilities
    
61,468
      
61,055
  
                 
Commitments and contingent liabilities
                
                 
Preferred stock, $0.10 par value:
                
Authorized – 100,000,000 shares
    
     
 
Common stock, $0.01 par value:
    
     
 
Authorized – 1,800,000,000 shares
                
Issued – 269,472,042 and 269,360,973 shares
    
3
      
3
  
Additional paid-in capital
    
3,119
      
3,133
  
Retained earnings
    
14,394
      
14,150
  
Accumulated other comprehensive income
    
34
      
581
  
     
17,550
      
17,867
  
Less treasury stock, at cost (5,708,164 and 150,000 shares)
    
(280
)
    
(7
)
Total shareholders’ equity
    
17,270
      
17,860
  
Noncontrolling interests
    
1,267
      
1,321
  
Total equity
    
18,537
      
19,181
  
Total liabilities and equity
  
$
80,005
    
$
80,236
  

See accompanying Notes to Consolidated Condensed Financial Statements.

3

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended March 31
  
2021
    
2020
  
(In millions, except per share data)
            
             
Revenues:
            
Insurance premiums
  
$
1,962
    
$
1,869
  
Net investment income
    
550
      
163
  
Investment gains (losses)
    
57
      
(216
)
Non-insurance warranty revenue
    
338
      
301
  
Operating revenues and other
    
715
      
982
  
Total
    
3,622
      
3,099
  
                 
Expenses:
                
Insurance claims and policyholders’ benefits
    
1,506
      
1,425
  
Amortization of deferred acquisition costs
    
359
      
344
  
Non-insurance warranty expense
    
311
      
281
  
Operating expenses and other
    
914
      
2,026
  
Interest
    
125
      
144
  
Total
    
3,215
      
4,220
  
Income (loss) before income tax
    
407
      
(1,121
)
Income tax (expense) benefit
    
(114
)
    
77
  
Net income (loss)
    
293
      
(1,044
)
Amounts attributable to noncontrolling interests
    
(32
)
    
412
  
Net income (loss) attributable to Loews Corporation
  
$
261
    
$
(632
)
                 
Basic net income (loss) per share
  
$
0.98
    
$
(2.20
)
Diluted net income (loss) per share
  
$
0.97
    
$
(2.20
)
                 
Weighted average shares outstanding:
                
Shares of common stock
    
267.39
      
287.04
  
Dilutive potential shares of common stock
    
0.37
          
Total weighted average shares outstanding assuming dilution
    
267.76
      
287.04
  

See accompanying Notes to Consolidated Condensed Financial Statements.

4

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Net income (loss)
  
$
293
    
$
(1,044
)
                 
Other comprehensive loss, after tax
                
Changes in:
                
Net unrealized losses on investments with an allowance for credit losses
            
(11
)
Net unrealized losses on other investments
    
(627
)
    
(1,044
)
Total unrealized losses on investments
    
(627
)
    
(1,055
)
Unrealized gains (losses) on cash flow hedges
    
4
      
(19
)
Pension and postretirement benefits
    
9
      
14
  
Foreign currency translation
    
3
      
(84
)
                 
Other comprehensive loss
    
(611
)
    
(1,144
)
                 
Comprehensive loss
    
(318
)
    
(2,188
)
                 
Amounts attributable to noncontrolling interests
    
32
      
531
  
                 
Total comprehensive loss attributable to Loews Corporation
  
$
(286
)
  
$
(1,657
)

See accompanying Notes to Consolidated Condensed Financial Statements.

5

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY
(Unaudited)

        
Loews Corporation Shareholders
        
   
Total
    
Common
Stock
    
Additional
Paid-in
Capital
    
Retained
Earnings
    
Accumulated
Other
Comprehensive
Income (Loss)
    
Common
Stock
Held in
Treasury
    
Noncontrolling
Interests
  
(In millions)
                                          
                                           
Balance, January 1, 2020, as reported
  
$
21,930
    
$
3
    
$
3,374
    
$
15,823
    
$
(68
)
  
$
(13
)
  
$
2,811
  
Cumulative effect adjustment from change in accounting standards
    
(5
)
                    
(5
)
                        
Balance, January 1, 2020, as adjusted
    
21,925
      
3
      
3,374
      
15,818
      
(68
)
    
(13
)
    
2,811
  
Net loss
    
(1,044
)
                    
(632
)
                    
(412
)
Other comprehensive loss
    
(1,144
)
                            
(1,025
)
            
(119
)
Dividends paid ($0.0625 per share)
    
(87
)
                    
(18
)
                    
(69
)
Purchases of Loews Corporation treasury stock
    
(445
)
                                    
(445
)
        
Purchases of subsidiary stock from non- controlling interests
    
(18
)
                                            
(18
)
Stock-based compensation
    
(4
)
            
(22
)
                            
18
  
Other
    
(5
)
            
(5
)
    
(1
)
                    
1
  
Balance,March 31, 2020
  
$
19,178
    
$
3
    
$
3,347
    
$
15,167
    
$
(1,093
)
  
$
(458
)
  
$
2,212
  
                                                         
Balance, January 1, 2021
  
$
19,181
    
$
3
    
$
3,133
    
$
14,150
    
$
581
    
$
(7
)
  
$
1,321
  
Net income
    
293
                      
261
                      
32
  
Other comprehensive loss
    
(611
)
                            
(547
)
            
(64
)
Dividends paid ($0.0625 per share)
    
(49
)
                    
(17
)
                    
(32
)
Purchases of Loews Corporation treasury stock
    
(274
)
                                    
(274
)
        
Purchases of subsidiary stock from non-controlling interests
    
(3
)
                                            
(3
)
Stock-based compensation
    
4
              
(11
)
                            
15
  
Other
    
(4
)
            
(3
)
                    
1
      
(2
)
Balance, March 31, 2021
  
$
18,537
    
$
3
    
$
3,119
    
$
14,394
    
$
34
    
$
(280
)
  
$
1,267
  

See accompanying Notes to Consolidated Condensed Financial Statements.

6

Loews Corporation and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Operating Activities:
            
             
Net income (loss)
  
$
293
    
$
(1,044
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities, net
    
257
      
1,363
  
Changes in operating assets and liabilities, net:
                
Receivables
    
(736
)
    
(266
)
Deferred acquisition costs
    
(32
)
    
(27
)
Insurance reserves
    
605
      
510
  
Other assets
    
(250
)
    
(116
)
Other liabilities
    
126
      
(288
)
Trading securities
    
(129
)
    
197
  
Net cash flow provided by operating activities
    
134
      
329
  
                 
Investing Activities:
                
                 
Purchases of fixed maturities
    
(2,203
)
    
(1,818
)
Proceeds from sales of fixed maturities
    
907
      
823
  
Proceeds from maturities of fixed maturities
    
1,084
      
799
  
Purchases of equity securities
    
(81
)
    
(220
)
Proceeds from sales of equity securities
    
119
      
98
  
Purchases of limited partnership investments
    
(61
)
    
(32
)
Proceeds from sales of limited partnership investments
    
49
      
204
  
Purchases of property, plant and equipment
    
(87
)
    
(233
)
Change in short term investments
    
569
      
837
  
Other, net
    
10
      
(31
)
Net cash flow provided by investing activities
    
306
      
427
  
                 
Financing Activities:
                
                 
Dividends paid
    
(17
)
    
(18
)
Dividends paid to noncontrolling interests
    
(32
)
    
(69
)
Purchases of Loews Corporation treasury stock
    
(280
)
    
(458
)
Purchases of subsidiary stock from noncontrolling interests
    
(3
)
    
(18
)
Principal payments on debt
    
(1,073
)
    
(223
)
Issuance of debt
    
1,159
      
654
  
Other, net
    
(12
)
    
(12
)
Net cash flow used by financing activities
    
(258
)
    
(144
)
                 
Effect of foreign exchange rate on cash
            
(9
)
                 
Net change in cash
    
182
      
603
  
Cash, beginning of period
    
478
      
336
  
Cash, end of period
  
$
660
    
$
939
  

See accompanying Notes to Consolidated Condensed Financial Statements.

7

Loews Corporation and Subsidiaries
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)

1. Basis of Presentation


Loews Corporation is a holding company. Its consolidated subsidiaries are engaged in the following lines of business: commercial property and casualty insurance (CNA Financial Corporation (“CNA”), an 89.5% owned subsidiary); transportation and storage of natural gas and natural gas liquids (Boardwalk Pipeline Partners, LP (“Boardwalk Pipelines”), a wholly owned subsidiary); the operation of a chain of hotels (Loews Hotels Holding Corporation (“Loews Hotels & Co”), a wholly owned subsidiary); and the manufacture of rigid plastic packaging solutions (Altium Packaging LLC (“Altium Packaging”), a 99% owned subsidiary). Unless the context otherwise requires, the term “Company” as used herein means Loews Corporation including its consolidated subsidiaries, the term “Net income (loss) attributable to Loews Corporation” as used herein means Net income (loss) attributable to Loews Corporation shareholders and the term “subsidiaries” means Loews Corporation’s consolidated subsidiaries.


On April 1, 2021, Loews Corporation sold 47% of its interest in Altium Packaging. See Note 2 for further discussion.


As a result of the April 26, 2020 bankruptcy filing of Diamond Offshore Drilling, Inc. (“Diamond Offshore”) and certain of its subsidiaries and applicable accounting principles generally accepted in the United States of America (“GAAP”), Diamond Offshore was deconsolidated from Loews Corporation’s consolidated financial statements in the second quarter of 2020. Loews Corporation’s operating results for the first quarter of 2020 include the operations of Diamond Offshore. During the first quarter of 2020, Diamond Offshore recorded an aggregate asset impairment charge of $774 million ($408 million after tax and noncontrolling interests), which is reported within Operating expenses and other on the Consolidated Condensed Statements of Operations. For additional information regarding the deconsolidation of Diamond Offshore and the Diamond Offshore asset impairments, see Notes 2 and 6 of the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.


In the opinion of management, the accompanying unaudited Consolidated Condensed Financial Statements reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the Company’s financial position as of March 31, 2021 and December 31, 2020 and results of operations, comprehensive loss and changes in shareholders’ equity and cash flows for the three months ended March 31, 2021 and 2020. Net income (loss) for the first quarter of each of the years is not necessarily indicative of net income (loss) for that entire year. These Consolidated Condensed Financial Statements should be read in conjunction with the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.


The Company presents basic and diluted net income (loss) per share on the Consolidated Condensed Statements of Operations. Basic net income (loss) per share excludes dilution and is computed by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the three months ended March 31, 2021 there were no shares attributable to employee stock-based compensation awards excluded from the diluted weighted average shares outstanding amounts because the effect would have been antidilutive.


Recently issued ASUs – In August of 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-12, “Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts.” The updated accounting guidance requires changes to the measurement and disclosure of long-duration contracts. The guidance requires entities to update annually cash flow assumptions, including morbidity and persistency, and update quarterly discount rate assumptions using an upper-medium grade fixed-income instrument yield. The effect of changes in cash flow assumptions will be recorded in Net income and the effect of changes in discount rate assumptions will be recorded in Other comprehensive income (“OCI”). This guidance is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. The guidance may be applied using either a modified retrospective transition method or a full retrospective transition method. The guidance requires restatement of prior periods presented. The Company plans to adopt on the effective date, using the modified retrospective transition method and is currently evaluating the effect the updated guidance will have on its consolidated financial statements, including the increased disclosure requirements. The annual updating of cash flow assumptions is expected to increase income statement volatility. While the requirements of the new guidance represent a material change from existing accounting guidance, the underlying economics of the business and related cash flows will be unchanged.

8
2.  Significant Transaction

Altium Packaging


On March 12, 2021, Loews Corporation entered into a definitive agreement to sell 47% of its interest in Altium Packaging to GIC, Singapore’s sovereign wealth fund. On April 1, 2021, the transaction closed and Loews Corporation received approximately $420 million in cash consideration, subject to expenses and post-closing adjustments. Loews Corporation will share certain participating rights with GIC related to capital allocation and other decisions by Altium Packaging. Therefore, in accordance with Accounting Standards Codification (“ASC”) 810, “Consolidation,” Altium Packaging will be deconsolidated from Loews Corporation’s consolidated financial statements effective as of April 1, 2021. The assets and liabilities of Altium Packaging have been classified as held for sale at March 31, 2021, and a deferred tax liability of $35 million was recorded in the three months ended March 31, 2021. Assets held for sale of $1.8 billion primarily consist of property, plant and equipment of $0.5 billion, goodwill of $0.4 billion, intangible assets of $0.5 billion and other assets of $0.4 billion. Liabilities held for sale of $1.5 billion primarily consist of $1.1 billion of long term debt and other liabilities of $0.4 billion.


The transaction will result in a pretax gain of approximately $560 million to be recorded in the second quarter of 2021 and the retained 53% investment in Altium Packaging will initially be recorded at an estimated fair value of $475 million. The gain will be recorded in Investment gains (losses) on the Consolidated Condensed Statement of Operations. Effective April 1, 2021, Loews Corporation’s investment in Altium Packaging will be accounted for under the equity method of accounting.

3. Investments


Net investment income is as follows:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities
  
$
428
    
$
438
  
Limited partnership investments
    
47
      
(102
)
Short term investments
            
7
  
Equity securities
    
29
      
(44
)
Income (loss) from trading portfolio (a)
    
50
      
(129
)
Other
    
16
      
14
  
Total investment income
    
570
      
184
  
Investment expenses
    
(20
)
    
(21
)
Net investment income
  
$
550
    
$
163
  

(a)
Net unrealized gains (losses) related to changes in fair value on securities still held were $32 and $(117) for the three months ended March 31, 2021 and 2020.


Investment gains (losses) are as follows:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities
  
$
38
    
$
(75
)
Equity securities
    
2
      
(133
)
Derivative instruments
    
17
      
5
  
Short term investments and other
            
(13
)
Investment gains (losses) (a)
  
$
57
    
$
(216
)

(a)
Gross investment gains on available-for-sale securities were $58 and $29 for the three months ended March 31, 2021 and 2020. Gross investment losses on available-for-sale securities were $20 and $104 for the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021 and 2020, $2 of investment gains and $133 of investment losses were recognized due to the change in fair value of non-redeemable preferred stock still held as of March 31, 2021 and 2020.
9

The following tables present the activity related to the allowance on available-for-sale securities with credit impairments and purchased credit-deteriorated (“PCD”) assets. Accrued interest receivables on available-for-sale fixed maturity securities totaled $389 million, $371 million and $390 million as of March 31, 2021, December 31, 2020 and March 31, 2020 and are excluded from the estimate of expected credit losses and the amortized cost basis in the tables within this Note.

Three months ended March 31, 2021
  
Corporate and
Other Bonds
    
Asset-backed
    
Total
  
(In millions)
                  
                   
Allowance for credit losses:
                  
Balance as of January 1, 2021
  
$
23
    
$
17
    
$
40
  
Additions to the allowance for credit losses:
                        
Securities for which credit losses were not previously recorded
    
14
              
14
  
Available-for-sale securities accounted for as PCD assets
    
2
              
2
  
                         
Reductions to the allowance for credit losses:
                        
Securities sold during the period (realized)
    
6
              
6
  
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
                        
                         
Additional decreases to the allowance for credit losses on securities that had an allowance recorded in a previous period
    
(6
)
    
(1
)
    
(7
)
Total allowance for credit losses
  
$
27
    
$
16
    
$
43
  
                         
Three months ended March 31, 2020
                        
                         
Allowance for credit losses:
                        
Balance as of January 1, 2020
  
$
-
    
$
-
    
$
-
  
Additions to the allowance for credit losses:
                        
Impact of adopting ASC 326
    
6
              
6
  
Securities for which credit losses were not previously recorded
    
48
              
48
  
Available-for-sale securities accounted for as PCD assets
    
1
              
1
  
                         
Reductions to the allowance for credit losses:
                        
Securities sold during the period (realized)
    
5
              
5
  
Intent to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis
    
1
              
1
  
Total allowance for credit losses
  
$
49
    
$
-
    
$
49
  


The components of available-for-sale impairment losses recognized in earnings by asset type are presented in the following table. The table includes losses on securities with an intention to sell and changes in the allowance for credit losses on securities since acquisition date:

Three Months Ended March 31
  
2021
    
2020
  
(In millions)
            
             
Fixed maturity securities available-for-sale:
            
Corporate and other bonds
  
$
7
    
$
91
  
Asset-backed
    
(1
)
    
1
  
Impairment losses recognized in earnings
  
$
6
    
$
92
  


There were no losses recognized on mortgage loans during the three months ended March 31, 2021. During the three months ended March 31, 2020, $13 million of losses were recognized related to mortgage loans due to changes in expected credit losses.
10

The amortized cost and fair values of fixed maturity securities are as follows:

March 31, 2021
  
Cost or
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Allowance
for Credit
Losses
    
Estimated
Fair Value
  
(In millions)
                              
                               
Fixed maturity securities:
                              
Corporate and other bonds
  
$
21,110
    
$
2,644
    
$
71
    
$
27
    
$
23,656
  
States, municipalities and political subdivisions
    
10,041
      
1,590
      
31
              
11,600
  
Asset-backed:
                                        
Residential mortgage-backed
    
3,215
      
108
      
40
              
3,283
  
Commercial mortgage-backed
    
1,952
      
76
      
24
      
16
      
1,988
  
Other asset-backed
    
2,281
      
71
      
7
              
2,345
  
Total asset-backed
    
7,448
      
255
      
71
      
16
      
7,616
  
U.S. Treasury and obligations of government-sponsored enterprises
    
138
      
1
      
7
              
132
  
Foreign government
    
508
      
23
      
2
              
529
  
Redeemable preferred stock
    
12
                              
12
  
Fixed maturities available-for-sale
    
39,257
      
4,513
      
182
      
43
      
43,545
  
Fixed maturities trading
    
36
      
3
                      
39
  
Total fixed maturity securities
  
$
39,293
    
$
4,516
    
$
182
    
$
43
    
$
43,584
  

December 31, 2020