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Fair Value (Tables)

3 Months Ended

Mar. 31, 2025

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:


	March 31, 2025
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate	$	—	$	68,622	$	12,573	$	81,195
Foreign corporate	—		40,588		14,939		55,527
Foreign government	—		41,196		57		41,253
RMBS	—		36,469		2,939		39,408
U.S. government and agency	16,375		17,500		—		33,875
ABS & CLO	—		19,689		1,309		20,998
Municipals	—		9,902		2		9,904
CMBS	—		9,016		559		9,575
Total fixed maturity securities AFS	16,375		242,982		32,378		291,735
Equity securities	424		75		248		747
Unit-linked and FVO securities (1)	7,365		2,185		1,175		10,725
Short-term investments (2)	4,032		1,148		9		5,189
Other investments	41		64		1,121		1,226
Derivative assets: (3)
Interest rate	3		3,203		—		3,206
Foreign currency exchange rate	2		4,706		26		4,734
Credit	—		212		—		212
Equity market	37		413		—		450
Total derivative assets	42		8,534		26		8,602
MRBs	—		—		317		317
Reinsured MRBs (4)	—		—		15		15
Separate account assets (5)	65,342		71,829		972		138,143
Total assets (6)	$	93,621	$	326,817	$	36,261	$	456,699
Liabilities
Derivative liabilities: (3)
Interest rate	$	12	$	3,404	$	—	$	3,416
Foreign currency exchange rate	—		3,053		5		3,058
Credit	—		71		—		71
Equity market	2		255		—		257
Total derivative liabilities	14		6,783		5		6,802
Embedded derivatives within liability host contracts (7)	—		—		43		43
MRBs	—		—		2,844		2,844
Separate account liabilities (5)	—		4		—		4
Total liabilities	$	14	$	6,787	$	2,892	$	9,693


	December 31, 2024
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate	$	—	$	67,333	$	12,041	$	79,374
Foreign corporate	—		39,295		14,464		53,759
Foreign government	—		40,209		41		40,250
RMBS	—		32,771		1,650		34,421
U.S. government and agency	16,675		16,753		—		33,428
ABS & CLO	—		14,755		5,836		20,591
Municipals	—		9,866		7		9,873
CMBS	—		8,194		1,153		9,347
Total fixed maturity securities AFS	16,675		229,176		35,192		281,043
Equity securities	415		61		236		712
Unit-linked and FVO securities (1)	7,306		2,176		1,190		10,672
Short-term investments (2)	4,127		702		5		4,834
Other investments	37		63		1,010		1,110
Derivative assets: (3)
Interest rate	1		3,004		—		3,005
Foreign currency exchange rate	1		4,694		14		4,709
Credit	—		215		—		215
Equity market	9		271		3		283
Total derivative assets	11		8,184		17		8,212
MRBs	—		—		372		372
Reinsured MRBs (4)	—		—		12		12
Separate account assets (5)	63,979		74,535		990		139,504
Total assets (6)	$	92,550	$	314,897	$	39,024	$	446,471
Liabilities
Derivative liabilities: (3)
Interest rate	$	1	$	3,463	$	—	$	3,464
Foreign currency exchange rate	—		3,440		12		3,452
Credit	—		72		—		72
Equity market	6		265		—		271
Total derivative liabilities	7		7,240		12		7,259
Embedded derivatives within liability host contracts (7)	—		—		9		9
MRBs	—		—		2,581		2,581
Separate account liabilities (5)	—		2		—		2
Total liabilities	$	7	$	7,242	$	2,602	$	9,851

__________________

(1)Unit-linked and FVO securities were primarily comprised of Unit-linked investments at both March 31, 2025 and December 31, 2024.

(2)Short-term investments as presented in the tables above differ from the amounts presented on the interim condensed consolidated balance sheets because certain short-term investments are not measured at estimated fair value on a recurring basis.

(3)Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.

(4)Reinsured MRBs are presented within premiums, reinsurance and other receivables on the interim condensed consolidated balance sheets.

(5)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.

(6)Total assets included in the fair value hierarchy exclude OLPI that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. The estimated fair value of such investments was $49 million and $50 million at March 31, 2025 and December 31, 2024, respectively.

(7)Embedded derivatives within liability host contracts are presented within PABs and other liabilities on the interim condensed consolidated balance sheets.

Fair Value Inputs, Quantitative Information

The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:


					March 31, 2025				December 31, 2024				Impact of Increase in Input on Estimated Fair Value (2)
	Valuation Techniques		Significant Unobservable Inputs		Range			Weighted Average (1)	Range			Weighted Average (1)
Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate	•	Matrix pricing	•	Offered quotes (4)	46	-	125	92	47	-	126	92	Increase
	•	Market pricing	•	Quoted prices (4)	32	-	100	96	13	-	102	95	Increase
	•	Consensus pricing	•	Offered quotes (4)	47	-	100	94	47	-	100	96	Increase
RMBS	•	Market pricing	•	Quoted prices (4)	34	-	131	95	—	-	128	95	Increase (5)
ABS & CLO	•	Market pricing	•	Quoted prices (4)	3	-	194	99	4	-	113	97	Increase (5)

Derivatives


Foreign currency exchange rate	•	Present value techniques	•	Swap yield (6)	111	-	189	177	131	-	230	222	Increase (7)


MRBs and Reinsured MRBs
Direct, assumed and ceded guaranteed minimum benefits	•	Option pricing techniques	•	Mortality rates:
				Ages 0 - 40	0%	-	0.15%	0.05%	0%	-	0.15%	0.05%	(8)
				Ages 41 - 60	0.04%	-	0.79%	0.22%	0.04%	-	0.79%	0.22%	(8)
				Ages 61 - 115	0%	-	100%	1.14%	0%	-	100%	1.14%	(8)
			•	Lapse rates:
				Durations 1 - 10	0.14%	-	20.10%	12.86%	0.14%	-	20.10%	12.86%	Decrease (9)
				Durations 11 - 20	0.39%	-	15%	6.05%	0.39%	-	15%	6.05%	Decrease (9)
				Durations 21 - 116	0.39%	-	15%	8.20%	0.39%	-	15%	8.20%	Decrease (9)





			•	Utilization rates	0.20%	-	16.25%	0.79%	0.20%	-	22%	0.79%	Increase (10)
			•	Withdrawal rates	0%	-	20%	4.77%	0%	-	20%	4.77%	(11)
			•	Long-term equity volatilities	14.23%	-	22.27%	18.77%	14.23%	-	22.27%	18.77%	Increase (12)
			•	Nonperformance risk spread	0.12%	-	1.56%	0.64%	0.11%	-	1.46%	0.64%	Decrease (13)

__________________

(1)The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities and derivatives. The weighted average for MRBs is determined based on a combination of account values and experience data.

(2)The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For MRBs, changes to direct and assumed guaranteed minimum benefits are based on liability positions; changes to ceded guaranteed minimum benefits are based on asset positions.

(3)Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations.

(4)Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.

(5)Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.

(6)Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.

(7)Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.

(8)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs. For contracts that contain only a GMDB, any increase (decrease) in mortality rates result in an increase (decrease) in the estimated fair value of MRBs. Generally, for contracts that contain both a GMDB and a living benefit (e.g., GMIB, GMWB, GMAB), any increase (decrease) in mortality rates result in a decrease (increase) in the estimated fair value of MRBs.

(9)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(10)The utilization rate assumption estimates the percentage of contractholders with GMIBs or a lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(11)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(12)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the MRBs.

(13)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRBs.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3), excluding MRBs (see Note 6):


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities AFS
	Corporate (6)		Foreign Government		Structured Products		Municipals		Equity Securities		Unit-linked and FVO Securities
	(In millions)
Three Months Ended March 31, 2025
Balance, beginning of period	$	26,505	$	41	$	8,639	$	7	$	236	$	1,190
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	(23)		—		3		1		15		(20)
Total realized/unrealized gains (losses) included in AOCI	423		3		40		(1)		—		—
Purchases (3)	1,314		15		1,949		2		20		106
Sales (3)	(448)		(1)		(140)		(7)		(23)		(101)
Issuances (3)	—		—		—		—		—		—
Settlements (3)	—		—		—		—		—		—
Transfers into Level 3 (4)	116		—		7		—		—		—
Transfers out of Level 3 (4)	(375)		(1)		(5,691)		—		—		—
Balance, end of period	$	27,512	$	57	$	4,807	$	2	$	248	$	1,175
Three Months Ended March 31, 2024
Balance, beginning of period	$	28,345	$	51	$	4,551	$	—	$	249	$	1,103
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	(11)		2		3		—		2		31
Total realized/unrealized gains (losses) included in AOCI	(372)		—		45		—		—		—
Purchases (3)	1,232		1		906		—		5		129
Sales (3)	(536)		—		(170)		—		(3)		(153)
Issuances (3)	—		—		—		—		—		—
Settlements (3)	—		—		—		—		—		—
Transfers into Level 3 (4)	87		—		79		—		—		7
Transfers out of Level 3 (4)	(242)		(9)		(137)		—		—		(24)
Balance, end of period	$	28,503	$	45	$	5,277	$	—	$	253	$	1,093
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2025 (5)	$	(1)	$	—	$	3	$	—	$	(4)	$	(14)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2024 (5)	$	7	$	2	$	3	$	—	$	5	$	31
Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2025 (5)	$	393	$	3	$	40	$	—	$	—	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2024 (5)	$	(379)	$	—	$	42	$	—	$	—	$	—


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Short-term Investments		Other Investments		Net Derivatives (7)		Net Embedded Derivatives (8)		Separate Accounts (9)
	(In millions)
Three Months Ended March 31, 2025
Balance, beginning of period	$	5	$	1,010	$	5	$	(9)	$	990
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	—		2		17		(32)		5
Total realized/unrealized gains (losses) included in AOCI	(2)		—		1		—		—
Purchases (3)	10		147		—		—		42
Sales (3)	(1)		(38)		—		—		(58)
Issuances (3)	—		—		—		—		—
Settlements (3)	—		—		(1)		(2)		—
Transfers into Level 3 (4)	—		—		—		—		1
Transfers out of Level 3 (4)	(3)		—		(1)		—		(8)
Balance, end of period	$	9	$	1,121	$	21	$	(43)	$	972
Three Months Ended March 31, 2024
Balance, beginning of period	$	27	$	975	$	(143)	$	(93)	$	1,147
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)	—		12		(35)		32		(28)
Total realized/unrealized gains (losses) included in AOCI	—		—		(28)		—		—
Purchases (3)	4		5		—		—		39
Sales (3)	(12)		—		—		—		(12)
Issuances (3)	—		—		(2)		—		—
Settlements (3)	—		—		71		(1)		—
Transfers into Level 3 (4)	—		179		—		—		3
Transfers out of Level 3 (4)	(5)		—		(2)		—		(7)
Balance, end of period	$	14	$	1,171	$	(139)	$	(62)	$	1,142
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2025 (5)	$	—	$	—	$	16	$	(32)	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2024 (5)	$	—	$	13	$	(34)	$	32	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2025 (5)	$	(3)	$	—	$	—	$	—	$	—
Changes in unrealized gains (losses) included in AOCI for the instruments still held at March 31, 2024 (5)	$	1	$	—	$	(20)	$	—	$	—

__________________

(1)Amortization of premium/accretion of discount is included within net investment income. Impairments and changes in ACL charged to net income (loss) on certain securities are included in net investment gains (losses), while changes in estimated fair value of Unit-linked and FVO securities are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(3)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward.

(4)Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.

(5)Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(6)Comprised of U.S. and foreign corporate securities.

(7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.

(8)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.

(9)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net income (loss). Separate account assets and liabilities are presented net for the purposes of the rollforward.

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment), using significant unobservable inputs (Level 3).


	March 31, 2025		December 31, 2024
	(In millions)
Carrying value after measurement:
Mortgage loans (1)	$	1,901	$	1,075
Other invested assets	$	—	$	63


	Three Months Ended March 31,
	2025		2024
	(In millions)
Realized gains (losses) net:
Mortgage loans (1)	$	(171)	$	(48)

__________________

(1)Estimated fair values of impaired mortgage loans are based on the underlying collateral or discounted cash flows. See Note 10.

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:


	March 31, 2025
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	87,908	$	—	$	—	$	84,675	$	84,675
Policy loans	$	8,663	$	—	$	—	$	9,250	$	9,250

Other invested assets	$	891	$	—	$	698	$	193	$	891
Premiums, reinsurance and other receivables	$	4,963	$	—	$	1,065	$	3,825	$	4,890
Other assets	$	248	$	—	$	62	$	188	$	250
Liabilities
PABs	$	142,851	$	—	$	—	$	138,851	$	138,851
Long-term debt	$	14,689	$	—	$	14,276	$	—	$	14,276
Collateral financing arrangement	$	463	$	—	$	—	$	414	$	414
Subordinated debt securities	$	4,153	$	—	$	4,585	$	—	$	4,585
Other liabilities	$	10,527	$	—	$	1,803	$	8,519	$	10,322
Separate account liabilities	$	72,231	$	—	$	72,231	$	—	$	72,231


	December 31, 2024
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	89,012	$	—	$	—	$	84,217	$	84,217
Policy loans	$	8,545	$	—	$	—	$	9,058	$	9,058

Other invested assets	$	1,202	$	—	$	704	$	498	$	1,202
Premiums, reinsurance and other receivables	$	4,831	$	—	$	881	$	3,917	$	4,798
Other assets	$	228	$	—	$	69	$	167	$	236
Liabilities
PABs	$	139,882	$	—	$	—	$	134,612	$	134,612
Long-term debt	$	15,080	$	—	$	14,498	$	—	$	14,498
Collateral financing arrangement	$	476	$	—	$	—	$	425	$	425
Subordinated debt securities	$	3,164	$	—	$	3,587	$	—	$	3,587
Other liabilities	$	9,635	$	—	$	734	$	8,570	$	9,304
Separate account liabilities	$	70,359	$	—	$	70,359	$	—	$	70,359

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details