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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Carrying at Fair Value on Recurring Basis
The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions):
September 30, 2020
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $2,871 $— $— $2,871 $2,871 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 4,795 944 5,739 5,739 
Commercial mortgage-backed securities— 2,746 26 2,772 2,772 
Corporates— 12,698 1,267 13,965 13,965 
Hybrids250 739 4 993 993 
Municipals— 1,424 42 1,466 1,466 
Residential mortgage-backed securities— 381 501 882 882 
U.S. Government405 — — 405 405 
Foreign Governments— 172 16 188 188 
Equity securities688 — 3 691 691 
Preferred securities480 793 1 1,274 1,274 
Derivative investments— 381 — 381 381 
Short term investments119 — — 119 119 
Other long-term investments— — 46 46 46 
Total financial assets at fair value$4,813 $24,129 $2,850 $31,792 $31,792 
Liabilities
Fair value of future policy benefits— — 5 5 5 
Derivatives:
FIA embedded derivatives, included in contractholder funds— — 3,161 3,161 3,161 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 49 — 49 49 
Total financial liabilities at fair value$— $49 $3,166 $3,215 $3,215 
December 31, 2019
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $1,376 $— $— $1,376 $1,376 
Fixed maturity securities, available-for-sale:
Commercial mortgage-backed securities— 22 — 22 22 
Corporates— 1,540 17 1,557 1,557 
Hybrids— 30 — 30 30 
Municipals— 93 — 93 93 
Residential mortgage-backed securities— 40 — 40 40 
U.S. Government— 288 — 288 288 
Foreign Governments— 60 — 60 60 
Preferred securities65 258 — 323 323 
Equity securities810 — 1 811 811 
Short term investments876 — — 876 876 
Other long-term investments— — 120 120 120 
Total financial assets at fair value$3,127 $2,331 $138 $5,596 $5,596 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
September 30, 2020
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $63 $— $63 $63 
Commercial mortgage loans— — 560 560 544 
Residential mortgage loans— — 1,079 1,079 1,070 
Policy loans— — 26 26 31 
Other invested assets— — 30 30 29 
Company-owned life insurance— — 302 302 302 
Total$— $63 $1,997 $2,060 $2,039 
Liabilities
Investment contracts, included in contractholder funds$— $— $21,060 $21,060 $24,222 
Debt— 2,889 — 2,889 2,664 
Total$— $2,889 $21,060 $23,949 $26,886 
Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of September 30, 2020 are as follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
September 30, 2020
(in millions)September 30, 2020
Assets
Asset-backed securities$768 Broker-quoted Offered quotes
99.37% - 124.37% (105.85)%
Asset-backed securities176 Third-Party Valuation Offered quotes
0.00% - 117.07% (80.57)%
Commercial mortgage-backed securities26 Broker-quoted Offered quotes
131.09% - 131.09% (131.09)%
Corporates319 Broker-quoted Offered quotes
0.00% - 112.66% (103.37)%
Corporates948 Third-Party ValuationOffered quotes
80.78% - 124.57% (107.32)%
Hybrids4 Third-Party Valuation Offered quotes
111.51% - 111.51% (111.51)%
Municipals42 Third-Party Valuation Offered quotes
128.08% - 128.08% (128.08)%
Residential mortgage-backed securities501 Broker-quoted Offered quotes
0.00% - 109.63% (109.63)%
Foreign governments16 Third-Party Valuation Offered quotes
101.68% - 102.09% (101.81)%
Equity securities1 Income-Approach Yield
2.61%
Equity securities1 Black Scholes model Risk Free Rate
0.26% - 0.26% (0.26%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
1.00% - 1.00% (1.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities2 Discounted Cash Flow Discount rate
7.40% - 7.40% (2.22%)
Market Comparable Company Analysis EBITDA multiple
6.5x - 6.5x (4.6x)
Other long-term assets:
Available-for-sale embedded derivative23 Black Scholes model Market value of fund
100.00%
Credit Linked Note23 Broker-quotedOffered quotes
100.00%
Total financial assets at fair value$2,850 
Liabilities
Future policy benefits 5 Discounted cash flowNon-performance spread
0.00%
Risk margin to reflect uncertainty0.50%
Derivatives:
FIA embedded derivatives, included in contractholder funds3,161 Discounted cash flowMarket value of option
0.00% - 50.69% (2.22)%
Treasury rates
0.08% - 1.46% (0.77)%
Mortality multiplier
80.00% - 80.00% (80.00)%
Surrender rates
0.25% - 55.00% (4.81)%
Partial withdrawals
2.00% - 3.50% (2.56)%
Non-performance spread
1.07% - 1.07% (1.07)%
Option cost
0.05% - 16.61% (2.22)%
Total financial liabilities at fair value$3,166 
Changes in Fair Value of Financial Instruments - Assets
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019, respectively. F&G related activity for the three and nine months ended September 30, 2020 in the tables below is comprised of the period from June 1, 2020 through September 30, 2020 only. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended September 30, 2020
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$1,016 $(1)$11 $118 $(1)$(109)$(90)$944 $12 
Commercial mortgage-backed securities26 — — — — — — 26 1 
Corporates1,264 (1)21 3 — (20)— 1,267 19 
Hybrids4 — — — — — — 4 — 
Municipals40 — 2 — — — — 42 2 
Residential mortgage-backed securities509 — 12 5 — (25)— 501 14 
Foreign Governments16 — — — — — — 16 — 
Equity securities1 1 — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative21 2 — — — — — 23 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$2,920 $1 $46 $128 $(1)$(154)$(90)$2,850 $48 
Liabilities
Future policy benefits$5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds2,952 209 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$2,957 $209 $— $— $— $— $— $3,166 $— 
(a) The net transfers out of Level 3 during the three months ended September 30, 2020 were exclusively to Level 2.
Nine months ended September 30, 2020
(in millions)
Balance at Beginning
of Period		F&G AcquisitionTotal Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$— $854 $(1)$20 $209 $(1)$(114)$(23)$944 $21 
Commercial mortgage-backed securities— 26 — — — — — — 26 1 
Corporates17 1,238 (4)47 3 — (34)— 1,267 45 
Hybrids— 4 — — — — — — 4 — 
Municipals— 38 — 4 — — — — 42 5 
Residential mortgage-backed securities— 534 — (3)6 — (29)(7)501 1 
Foreign Governments— 16 — — — — — — 16 — 
Equity securities1 1 — — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative— 20 3 — — — — — 23 — 
Credit linked note— 23 — — — — — — 23 — 
Other long-term investment120 — (61)— — — — (59)— — 
Total assets at Level 3 fair value$138 $2,754 $(63)$68 $220 $(1)$(177)$(89)$2,850 $73 
Liabilities
Future policy benefits$— $5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds— 2,852 309 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$— $2,857 $309 $— $— $— $— $— $3,166 $— 
(a) The net transfers out of Level 3 during the nine months ended September 30, 2020 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1.
Three months ended September 30, 2019
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Corporates$16 $— $— $1 $— $— $— $17 
Other invested assets:
Other long-term investment112 4 — — — — — 116 
Total assets at Level 3 fair value$128 $4 $— $1 $— $— $— $133 

Nine months ended September 30, 2019
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Corporates$17 $1 $(1)$6 $(1)$— $(5)$17 
Other invested assets:
Other long-term investment101 15 — — — — — 116 
Total assets at Level 3 fair value$118 $16 $(1)$6 $(1)$— $(5)$133 
Changes in Fair Value of Financial Instruments - Liabilities
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019, respectively. F&G related activity for the three and nine months ended September 30, 2020 in the tables below is comprised of the period from June 1, 2020 through September 30, 2020 only. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended September 30, 2020
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$1,016 $(1)$11 $118 $(1)$(109)$(90)$944 $12 
Commercial mortgage-backed securities26 — — — — — — 26 1 
Corporates1,264 (1)21 3 — (20)— 1,267 19 
Hybrids4 — — — — — — 4 — 
Municipals40 — 2 — — — — 42 2 
Residential mortgage-backed securities509 — 12 5 — (25)— 501 14 
Foreign Governments16 — — — — — — 16 — 
Equity securities1 1 — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative21 2 — — — — — 23 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$2,920 $1 $46 $128 $(1)$(154)$(90)$2,850 $48 
Liabilities
Future policy benefits$5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds2,952 209 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$2,957 $209 $— $— $— $— $— $3,166 $— 
(a) The net transfers out of Level 3 during the three months ended September 30, 2020 were exclusively to Level 2.
Nine months ended September 30, 2020
(in millions)
Balance at Beginning
of Period		F&G AcquisitionTotal Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$— $854 $(1)$20 $209 $(1)$(114)$(23)$944 $21 
Commercial mortgage-backed securities— 26 — — — — — — 26 1 
Corporates17 1,238 (4)47 3 — (34)— 1,267 45 
Hybrids— 4 — — — — — — 4 — 
Municipals— 38 — 4 — — — — 42 5 
Residential mortgage-backed securities— 534 — (3)6 — (29)(7)501 1 
Foreign Governments— 16 — — — — — — 16 — 
Equity securities1 1 — — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative— 20 3 — — — — — 23 — 
Credit linked note— 23 — — — — — — 23 — 
Other long-term investment120 — (61)— — — — (59)— — 
Total assets at Level 3 fair value$138 $2,754 $(63)$68 $220 $(1)$(177)$(89)$2,850 $73 
Liabilities
Future policy benefits$— $5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds— 2,852 309 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$— $2,857 $309 $— $— $— $— $— $3,166 $— 
(a) The net transfers out of Level 3 during the nine months ended September 30, 2020 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1.
Three months ended September 30, 2019
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Corporates$16 $— $— $1 $— $— $— $17 
Other invested assets:
Other long-term investment112 4 — — — — — 116 
Total assets at Level 3 fair value$128 $4 $— $1 $— $— $— $133 

Nine months ended September 30, 2019
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Corporates$17 $1 $(1)$6 $(1)$— $(5)$17 
Other invested assets:
Other long-term investment101 15 — — — — — 116 
Total assets at Level 3 fair value$118 $16 $(1)$6 $(1)$— $(5)$133 
Schedule of Net Asset Value
The following table includes assets that have not been classified in the fair value hierarchy as the fair value of these investments are measured using the net asset value ("NAV") per share practical expedient.
Carrying Value After Measurement (in millions)
September 30, 2020
Investments in unconsolidated affiliates$1,267