Consolidated and Nonconsolidated Investment Entities (Tables)

9 Months Ended

Sep. 30, 2022

Consolidated Investment Entities [Abstract]

Assets and Liabilities of the Consolidated Investment Entities

The following table summarizes the components of the consolidated investment entities as of the dates indicated:


	September 30, 2022		December 31, 2021
Assets of Consolidated Investment Entities
VIEs
Cash and cash equivalents	$	95	$	171
Corporate loans, at fair value using the fair value option	1,161		1,111
Limited partnerships/corporations, at fair value	2,879		2,469
Other assets	60		28
Total VIE assets	4,195		3,779






Total assets of consolidated investment entities	$	4,195	$	3,779

Liabilities and Shareholders' Equity of Consolidated Investment Entities
VIEs
CLO notes, at fair value using the fair value option	$	1,028	$	880
Other liabilities	1,291		1,013
Total VIE liabilities	2,319		1,893



Total liabilities of consolidated investment entities	2,319		1,893



Noncontrolling interest	1,590		1,568
Total VIE shareholders' equity	1,590		1,568
Total liabilities and shareholders' equity of consolidated investment entities	$	3,909	$	3,461

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

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details