Company Quick10K Filing
Loew's
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
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
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

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.
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