Fair Value Measurements (excluding Consolidated Investment Entities) (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of September 30, 2022:

	Level 1			Level 2				Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	516		$	216			$	—		$	732
U.S. Government agencies and authorities	—			49				—			49
State, municipalities and political subdivisions	—			864				—			864
U.S. corporate public securities	—			8,800				15			8,815
U.S. corporate private securities	—			2,839				1,743			4,582
Foreign corporate public securities and foreign governments(1)	—			2,854				—			2,854
Foreign corporate private securities(1)	—			2,654				404			3,058
Residential mortgage-backed securities	—			3,956				26			3,982
Commercial mortgage-backed securities	—			4,009				—			4,009
Other asset-backed securities	—			2,022				72			2,094
Total fixed maturities, including securities pledged	516			28,263				2,260			31,039
Equity securities	134			8				195			337
Derivatives:
Interest rate contracts	5			353				—			358
Foreign exchange contracts	—			135				—			135
Equity contracts	1			1				—			2
Embedded derivative on reinsurance	—			109				—			109
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,035			3				—			2,038
Assets held in separate accounts	70,169			5,472				339			75,980
Total assets	$	72,860		$	34,344			$	2,794		$	109,998
Percentage of Level to total	66		%	31		%		3		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives(2)	—			—				33			33
Other derivatives:
Interest rate contracts	—			371				—			371
Foreign exchange contracts	—			3				—			3
Equity contracts	—			6				—			6
Credit contracts	—			3				—			3
Embedded derivative on reinsurance	—			(15)			(3)	89			74
Total liabilities	$	—		$	368			$	122		$	490

(1) Primarily U.S. dollar denominated.

(2) Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

(3) The Company classifies the embedded derivative within liabilities given the underlying nature of the balance and the right-of-offset.

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:

	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	745		$	258		$	—		$	1,003
U.S. Government agencies and authorities	—			81			—			81
State, municipalities and political subdivisions	—			1,111			—			1,111
U.S. corporate public securities	—			11,925			16			11,941
U.S. corporate private securities	—			3,415			1,910			5,325
Foreign corporate public securities and foreign governments(1)	—			3,723			—			3,723
Foreign corporate private securities(1)	—			3,148			353			3,501
Residential mortgage-backed securities	—			4,259			43			4,302
Commercial mortgage-backed securities	—			4,183			—			4,183
Other asset-backed securities	—			2,037			44			2,081
Total fixed maturities, including securities pledged	745			34,140			2,366			37,251
Equity securities	37			—			203			240
Derivatives:
Interest rate contracts	—			147			—			147
Foreign exchange contracts	—			19			—			19
Equity contracts	—			4			—			4
Credit contracts	—			1			—			1
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	2,525			82			—			2,607
Assets held in separate accounts	94,943			5,174			316			100,433
Total assets	$	98,250		$	39,567		$	2,885		$	140,702
Percentage of Level to total	70		%	28		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives(2)	—			—			48			48
Other derivatives:
Interest rate contracts	—			209			—			209
Foreign exchange contracts	—			19			—			19
Equity contracts	—			2			—			2
Credit contracts	—			1			—			1
Embedded derivative on reinsurance	—			109			87			196
Total liabilities	$	—		$	340		$	135		$	475

(1) Primarily U.S. dollar denominated.

(2) Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the periods indicated:

	Three Months Ended September 30, 2022
	Fair Value as of July 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of September 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	19	$	—	$	(1)	$	3	$	—	$	—	$	(1)	$	—	$	(5)	$	15	$	—	$	—
U.S. corporate private securities	1,780		(2)		(94)		77		—		—		(40)		22		—		1,743		(2)		(95)
Foreign corporate public securities and foreign governments(1)	4		—		—		—		—		—		—		—		(4)		—		—		—
Foreign corporate private securities(1)	403		(2)		(11)		22		—		—		(4)		—		(4)		404		(2)		(11)
Residential mortgage-backed securities	31		(4)		—		2		—		—		—		—		(3)		26		(4)		—
Other asset-backed securities	63		—		(2)		21		—		—		(1)		—		(9)		72		(1)		(2)
Total fixed maturities, including securities pledged	2,300		(8)		(108)		125		—		—		(46)		22		(25)		2,260		(9)		(108)
Equity securities, at fair value	203		(8)		—		—		—		—		—		—		—		195		(8)		—
Derivatives:
Guaranteed benefit derivatives(2)(5)	(29)		(5)		—		—		—		—		1		—		—		(33)		—		—
Embedded derivatives on reinsurance	(86)		(3)		—		—		—		—		—		—		—		(89)		—		—
Assets held in separate accounts(4)	349		(9)		—		32		—		(16)		—		—		(17)		339		—		—

(1) Primarily U.S. dollar denominated.

(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract by contract basis. These amounts are included in Other net (losses) in the Condensed Consolidated Statements of Operations.

(3) For financial instruments still held as of September 30 amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.

(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

(5) Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

	Nine Months Ended September 30, 2022
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of September 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	16	$	—	$	(1)	$	7	$	—	$	—	$	(1)	$	—	$	(6)	$	15	$	—	$	(1)
U.S. corporate private securities	1,910		(4)		(374)		235		—		—		(159)		145		(10)		1,743		(4)		(373)
Foreign corporate private securities(1)	353		(23)		(42)		115		—		—		(33)		148		(114)		404		(6)		(42)
Residential mortgage-backed securities	43		(19)		—		4		—		—		—		—		(2)		26		(19)		—
Other asset-backed securities	44		(1)		(6)		52		—		(10)		(7)		—		—		72		(1)		(6)
Total fixed maturities, including securities pledged	2,366		(47)		(423)		413		—		(10)		(200)		293		(132)		2,260		(30)		(422)
Equity securities, at fair value	203		(35)		—		27		—		—		—		—		—		195		(35)		—
Derivatives:
Guaranteed benefit derivatives (2)(5)	(48)		15		—		—		(1)		—		1		—		—		(33)		—		—
Embedded derivatives on reinsurance	(87)		(2)		—		—		—		—		—		—		—		(89)		—		—
Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	—		—		—		8		—		—		(8)		—		—		—		—		—
Assets held in separate accounts(4)	316		(35)		—		164		—		(20)		—		6		(92)		339		—		—

(1) Primarily U.S. dollar denominated.

(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract by contract basis. These amounts are included in Other net (losses) in the Condensed Consolidated Statements of Operations.

(3) For financial instruments still held as of September 30 amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.

(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

(5) Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

	Three Months Ended September 30, 2021
	Fair Value as of July 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of September 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	23	$	—	$	1	$	12	$	—	$	—	$	(1)	$	—	$	—	$	35	$	—	$	1
U.S. corporate private securities	2,011		10		(13)		127		—		(22)		(142)		—		(37)		1,934		—		(11)
Foreign corporate public securities and foreign governments(1)	10		—		—		17		—		—		—		—		(10)		17		—		—
Foreign corporate private securities(1)	352		(15)		21		29		—		—		(6)		—		—		381		1		21
Residential mortgage-backed securities	46		(4)		—		16		—		—		—		—		(2)		56		(4)		(1)
Commercial mortgage-backed securities	2		—		—		10		—		—		—		—		—		12		—		—
Other asset-backed securities	78		—		(1)		9		—		—		(22)		—		(14)		50		—		1
Total fixed maturities, including securities pledged	2,522		(9)		8		220		—		(22)		(171)		—		(63)		2,485		(3)		11
Fixed maturities, trading, at fair value	45		—		—		—		—		—		(40)		—		—		5		—		—
Equity securities, at fair value	249		1		—		—		—		—		—		—		—		250		1		—
Derivatives:
Guaranteed benefit derivatives (2)(5)	(44)		3		—		—		(4)		—		1		—		—		(44)		—		—
Embedded derivatives on reinsurance	(85)		(1)		—		—		—		—		—		—		—		(86)		—		—
Assets held in separate accounts(4)	293		1		—		53		—		(6)		—		—		(30)		311		—		—

(1) Primarily U.S. dollar denominated.

(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract by contract basis. These amounts are included in Other net (losses) in the Condensed Consolidated Statements of Operations.

(3) For financial instruments still held as of September 30, amounts are included in Net investment income and Total net gains (losses) in the Condensed Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income.

(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

(5)Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

	Nine Months Ended September 30, 2021
	Fair Value as of January 1		Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of September 30		Change In Unrealized Gains (Losses) Included in Earnings(3)		Change In Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:
U.S. corporate public securities	$	93	$	1	$	1	$	12	$	—	$	(25)	$	(1)	$	—	$	(46)	$	35	$	—	$	1
U.S. corporate private securities	1,900		50		(108)		210		—		(340)		(198)		545		(125)		1,934		(1)		(107)
Foreign corporate public securities and foreign governments(1)	—		—		—		17		—		—		—		—		—		17		—		—
Foreign corporate private securities(1)	457		(6)		19		30		—		(81)		(38)		—		—		381		3		16
Residential mortgage-backed securities	43		(11)		(1)		30		—		(7)		—		2		—		56		(11)		(1)
Commercial mortgage-backed securities	—		—		—		12		—		—		—		—		—		12		—		—
Other asset-backed securities	61		1		(3)		19		—		(5)		(45)		22		—		50		—		(1)
Total fixed maturities, including securities pledged	2,554		35		(92)		330		—		(458)		(282)		569		(171)		2,485		(9)		(92)
Fixed maturities, trading, at fair value	—		—		—		45		—		—		(40)		—		—		5		—		—
Equity securities, at fair value	172		14		—		225		—		(152)		(9)		—		—		250		(1)		—
Derivatives:
Guaranteed benefit derivatives (2)(5)	(84)		41		—		—		(4)		—		3		—		—		(44)		—		—
Other derivatives, net	1		—		—		—		—		—		(1)		—		—		—		(1)		—
Embedded derivatives on reinsurance	—		3		—		—		(89)		—		—		—		—		(86)		—		—
Assets held in separate accounts(4)	222		4		—		157		—		(7)		—		—		(65)		311		—		—

Fair Value, by Balance Sheet Grouping

The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated:

	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	31,039	$	31,039	$	37,251	$	37,251
Equity securities	337		337		240		240
Mortgage loans on real estate	5,408		5,061		5,627		5,982
Policy loans	368		368		392		392
Cash, cash equivalents, short-term investments and short-term investments under securities loan agreements	2,038		2,038		2,607		2,607
Derivatives	495		495		171		171
Embedded derivative on reinsurance	109		109		—		—
Other investments	71		71		79		79
Assets held in separate accounts	75,980		75,980		100,433		100,433
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	$	36,263	$	36,488	$	35,334	$	43,407
Funding agreements with fixed maturities	1,369		1,367		1,460		1,461
Supplementary contracts, immediate annuities and other	746		650		829		775
Derivatives:
Guaranteed benefit derivatives(2)	33		33		48		48
Other derivatives	383		383		231		231
Embedded derivative on reinsurance	74		74		196		196
Short-term debt	141		142		1		1
Long-term debt	2,094		1,932		2,595		2,991

(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

(2) Includes GMWBL, GMWB, FIA, Stabilizer and MCGs.

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of September 30, 2022:

	Level 1		Level 2		Level 3		NAV		Total
Assets
Cash and cash equivalents	$	95	$	—	$	—	$	—	$	95
Corporate loans, at fair value using the fair value option	—		1,161		—		—		1,161
Limited partnerships/corporations, at fair value	—		—		—		2,879		2,879
Total assets, at fair value	$	95	$	1,161	$	—	$	2,879	$	4,135
Liabilities
CLO notes, at fair value using the fair value option	$	—	$	1,028	$	—	$	—	$	1,028
Total liabilities, at fair value	$	—	$	1,028	$	—	$	—	$	1,028

The following table summarizes the fair value hierarchy levels of consolidated investment entities as of December 31, 2021:

	Level 1		Level 2		Level 3		NAV		Total
Assets
Cash and cash equivalents	$	171	$	—	$	—	$	—	$	171
Corporate loans, at fair value using the fair value option	—		1,111		—		—		1,111
Limited partnerships/corporations, at fair value	—		—		—		2,469		2,469
Total assets, at fair value	$	171	$	1,111	$	—	$	2,469	$	3,751
Liabilities
CLO notes, at fair value using the fair value option	$	—	$	880	$	—	$	—	$	880
Total liabilities, at fair value	$	—	$	880	$	—	$	—	$	880

Financial Instruments Not Carried at Fair Value

The following table presents the classifications of financial instruments which are not carried at fair value on the Condensed Consolidated Balance Sheets:

Financial Instrument	Classification
Mortgage loans on real estate	Level 3
Policy loans	Level 2
Other investments	Level 2
Funding agreements without fixed maturities and deferred annuities	Level 3
Funding agreements with fixed maturities	Level 2
Supplementary contracts and immediate annuities	Level 3
Short-term debt and Long-term debt	Level 2