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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Assets and (liabilities) carried at fair value by hierarchy level
The following presents the hierarchy for our assets and liabilities measured at fair value on a recurring basis:
 
Total
NAV / Netting [1]
Level 1Level 2Level 3
As of December 31, 2023
Assets
Fixed maturities
Asset-backed securities
$363 $— $— $313 $50 
Collateralized loan obligations
966 — — 847 119 
Commercial mortgage-backed securities
1,446 — — 1,440 6 
Corporate bonds
9,545 — — 8,054 1,491 
Foreign government and agencies
404 — — 404 — 
Municipal bonds
803 — — 803 — 
Residential mortgage-backed securities
445 — — 412 33 
U.S. Treasury bonds
882 — — 882 — 
Total fixed maturities, available-for-sale
14,854 — — 13,155 1,699 
Fair value option fixed maturities
252 — — 27 225 
Total fixed maturities
15,106 — — 13,182 1,924 
Equity securities
182 — 9 150 23 
Investment funds
238 — — — 238 
Other investments
Freestanding derivatives [1]
35 (138)11 22 140 
Short-term investments
1,181 — 661 52 468 
 
Total
NAV / Netting [1]
Level 1Level 2Level 3
Reinsurance recoverables
Fixed indexed annuities hedge program
193 — — — 193 
Reinsurance recoverable for FIA embedded derivative
406 — — — 406 
Ceded other embedded derivative
(5)— — — (5)
Ceded market risk benefits
648 — — — 648 
Total reinsurance recoverables
1,242 — — — 1,242 
Market risk benefits
578 — — — 578 
Separate account assets
89,514 200 54,877 34,389 48 
Total assets
$108,076 $62 $55,558 $47,795 $4,661 
Liabilities
Other policyholder funds and benefits payable
Fixed indexed annuities embedded derivatives
$541 $— $— $— $541 
Other embedded derivative
(5)— — — (5)
Total other policyholder funds and benefits payable
536 — — — 536 
Market risk benefits
1,074 — — — 1,074 
Funds withheld liability
Modified coinsurance embedded derivative
(110)— — (110)— 
Related party modified coinsurance embedded derivative
(192)— — (192)— 
Fixed indexed annuities hedge program retrocession
145 — — — 145 
Total funds withheld liability
(157)— — (302)145 
Other liabilities
Freestanding derivatives [1]
57 (306)11 284 68 
Total liabilities
$1,510 $(306)$11 $(18)$1,823 
As of December 31, 2022
Assets
Fixed maturities
Asset-backed securities
$254 $— $— $213 $41 
Collateralized loan obligations
676 — — 567 109 
Commercial mortgage-backed securities
1,514 — — 1,237 277 
Corporate bonds
10,241 — — 9,622 619 
Foreign government and agencies
315 — — 311 4 
Municipal bonds
1,040 — — 1,039 1 
Residential mortgage-backed securities
417 — — 400 17 
U.S. Treasury bonds
926 — — 926 — 
Total fixed maturities, available-for-sale
15,383 — — 14,315 1,068 
Fair value option fixed maturities
331 — — 25 306 
Total fixed maturities
15,714 — — 14,340 1,374 
Equity securities
179 — — 155 24 
Investment funds
58 — — — 58 
 
Total
NAV / Netting [1]
Level 1Level 2Level 3
Other investments
Freestanding derivatives [1]
83 (112)— 40 155 
Short-term investments
1,489 — 742 610 137 
Reinsurance recoverables
Fixed indexed annuities hedge program
49 — — — 49 
Reinsurance recoverable for FIA embedded derivative
243 — — — 243 
Funds withheld embedded derivative
129 — — 129 — 
Ceded other embedded derivatives
(29)— — — (29)
Ceded market risk benefits
894 — — — 894 
Total reinsurance recoverables
1,286 — — 129 1,157 
Market risk benefits
325 — — — 325 
Separate account assets
87,255 288 53,775 33,139 53 
Total assets
$106,389 $176 $54,517 $48,413 $3,283 
Liabilities
Other policyholder funds and benefits payable
Fixed indexed annuities embedded derivatives
$324 $— $— $— $324 
Other embedded derivative
(29)— — — (29)
Total other policyholder funds and benefits payable
295 — — — 295 
Market risk benefits
1,204 — — — 1,204 
Funds withheld liability
Modified coinsurance embedded derivative
(597)— — (597)— 
Fixed indexed annuities hedge program retrocession
37 — — — 37 
Total funds withheld liability
(560)— — (597)37 
Other liabilities
Freestanding derivatives [1]
105 139 — (41)7 
Total liabilities
$1,044 $139 $— $(638)$1,543 
[1]“Netting” represents the fair value of freestanding derivatives as well as cash collateral and accrued income offset under master netting agreements. Refer to Note 4 - Derivatives for additional information regarding offsetting of derivatives.
Fair Value Measurement Inputs and Valuation Techniques
[1]The weighted average is determined based on the fair value of the securities.
[2]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.
[3]Excludes securities for which the Company bases fair value on broker quotations.
[4]Decrease for above market rate coupons and increase for below market rate coupons.
[5]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.
[6]Range represents assumed annual percentage of allowable amount withdrawn.
[7]Range represents assumed annual percentages of policyholders electing a full surrender.
[8]Range represents assumed annual budget for index options.
[9]Range represents Company credit spreads.
The following table summarizes the unobservable inputs for MRBs, net of reinsured balances (refer to Note 5 - Fair Value Measurements for a rollforward of ceded MRBs):
Fair ValuePredominant Valuation TechniqueSignificant Unobservable InputRangeWeighted Average
Impact of Increase in Input on Fair Value [1]
As of December 31, 2023
Variable annuities (net of reinsurance):
$(287)Discounted cash flows
Withdrawal utilization [2]
1.0% to 46.0%
15.6%Increase
Withdrawal rates [3]
0.0% to 8.0%
4.3%Increase
Lapse rates [4]
0.0% to 40.0%
6.0%Decrease
Market volatility [5]
10.5% to 26.9%
20.4%Increase
Nonperformance risk [6]
0.6% to 2.5%
1.6%Decrease
Mortality rate [7]
0.0% to 62.5%
1.4%Decrease
Fixed indexed annuities:
$135Discounted cash flows
Withdrawal utilization [2]
0.0% to 42.4%
2.7%Increase
Withdrawal rates [3]
2.3% to 8.3%
4.5%Increase
Lapse rates [4]
0.0% to 30.0%
3.5%Decrease
Market volatility [5]
4.9% to 25.6%
16.7%Increase
Nonperformance risk [6]
0.6% to 2.5%
1.7%Increase
Mortality rate [7]
0.0% to 40.0%
2.5%Decrease
Option budgets [8]
0.0% to 3.8%
1.9%Increase
Fair ValuePredominant Valuation TechniqueSignificant Unobservable InputRangeWeighted Average
Impact of Increase in Input on Fair Value [1]
As of December 31, 2022
Variable annuities (net of reinsurance):
$(137)Discounted cash flows
Withdrawal utilization [2]
1.8% to 63.0%
22.5%Increase
Withdrawal rates [3]
0.0% to 8.0%
4.0%Increase
Lapse rates [4]
0.0% to 40.0%
4.5%Decrease
Market volatility [5]
18.5% to 28.4%
23.3%Increase
Nonperformance risk [6]
0.4% to 3.2%
2.2%Decrease
Mortality rate [7]
0.0% to 100.0%
1.3%Decrease
Fixed indexed annuities:
$122Discounted cash flows
Withdrawal utilization [2]
0.0% to 29.1%
3.5%Increase
Withdrawal rates [3]
0.0% to 20.0%
5.6%Increase
Lapse rates [4]
0.5% to 36.0%
4.6%Decrease
Market volatility [5]
4.5% to 23.6%
15.8%Increase
Nonperformance risk [6]
0.4% to 3.2%
2.2%Increase
Mortality rate [7]
0.0% to 39.8%
3.1%Decrease
Option budgets [8]
0.5% to 3.8%
2.0%Increase
[1]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.
[2]Range represents assumed percentages of policyholders taking withdrawals.
[3]Range represents assumed annual percentage of allowable amount withdrawn.
[4]Range represents assumed annual percentages of policyholders electing a full surrender.
[5]Range represents implied market volatilities for equity indices based on multiple pricing sources.
[6]Range represents Company credit spreads.
[7]Mortality rates vary by age and by demographic characteristics, such as gender. The range shown reflects the mortality rate for policyholders. Mortality rate assumptions are set based on policyholder experience.
[8]Range represents assumed annual budget for index options.
Roll-forward of Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)
The following summarizes the significant unobservable inputs for level 3 fixed maturities, freestanding derivatives, and FIA embedded derivatives:
Fair ValuePredominant Valuation TechniqueSignificant Unobservable InputRange
Weighted Average [1]
Impact of Increase in Input on Fair Value [2]
As of December 31, 2023
Asset-backed securities
$50 Discounted cash flowsSpread
251bps to 426bps
316bpsDecrease
Collateralized loan obligations [3]:
$59 Option modelSpread
268bps to 270bps
269bpsDecrease
Commercial mortgage-backed securities:
$6 Discounted cash flowsSpread (encompasses
prepayment, default risk and loss severity)
1,041bps to 1,041bps
1,041bpsDecrease
Corporate bonds [3]:
$1,421 Discounted cash flowsSpread
49bps to 894bps
246bpsDecrease
Residential mortgage-backed securities [3]:
$14 Discounted cash flows
Spread [5]
387bps to 387bps
387bpsDecrease
 Fair value option fixed maturities
$225 Discounted cash flowsSpread
2bps to 312bps
166bpsDecrease
Macro hedge program [3]:
$(2)Option modelEquity volatility
10.81% to 31.73%
17.9%Increase
Fair ValuePredominant Valuation TechniqueSignificant Unobservable InputRange
Weighted Average [1]
Impact of Increase in Input on Fair Value [2]
$84 Interest rate volatility
0.22% to 2.86%
1.2%Increase
Fixed indexed annuities embedded derivatives:
$541 
Withdrawal rates [6]
0.0% to 15.9%
1.7%Decrease
Lapse rates [7]
0.3% to 30.0%
6.4%Decrease
Option budgets [8]
0.1% to 3.8%
1.5%Increase
Credit standing adjustment [9]
0.6% to 2.5%
1.6%Decrease
As of December 31, 2022
Collateralized loan obligations [3]:
$109 Discounted cash flowsSpread
55 bps to 337 bps
325bpsDecrease
Commercial mortgage-backed securities:
$277 Discounted cash flows
Spread (encompasses
prepayment, default risk and loss severity)
419 bps to 1,001 bps
534bpsDecrease
Corporate bonds [3]:
$901 Discounted cash flowsSpread
71 bps to 719 bps
309bpsDecrease
Residential mortgage-backed securities [3]:
$13 Discounted cash flows
Spread [5]
62 bps to 227 bps
138bpsDecrease
Constant prepayment rate [5]
2% to 10%
6.0%Decrease
Constant default rate [5]
1% to4%
2.0%Decrease
Loss severity [5]
10% to 65%
25.0%Decrease
Variable annuities macro hedge program [3]:
$65 Option modelEquity volatility
18% to 64%
26.0%Increase
97 Interest rate volatility
1% to 1%
1.0%Increase
Fixed indexed annuities embedded derivatives:
$324 
Withdrawal rates [6]
0.0% to 15.9%
1.7%Decrease
Lapse rates [7]
1.0%to 25.0%
6.5%Decrease
Option budgets [8]
0.5% to 3.8%
1.6%Increase
Credit standing adjustment [9]
0.4% to 3.1%
1.7%Decrease
[1]The weighted average is determined based on the fair value of the securities.
[2]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.
[3]Excludes securities for which the Company bases fair value on broker quotations.
[4]Decrease for above market rate coupons and increase for below market rate coupons.
[5]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads.
[6]Range represents assumed annual percentage of allowable amount withdrawn.
[7]Range represents assumed annual percentages of policyholders electing a full surrender.
[8]Range represents assumed annual budget for index options.
[9]Range represents Company credit spreads
Beginning Balance
Total Realized and Unrealized Gains (Losses) in
Net Purchases, Sales, and Settlements
Net Transfers
Ending Balance
Net Income (Loss)
Other Comprehensive Loss [2]
Year Ended December 31, 2023
Fixed maturities, available-for-sale:
Asset-backed securities
$41 $— $1 $8 $— $50 
Collateralized loan obligations
109 — 1 9 — 119 
Commercial mortgage-backed securities
277 — 6 (65)(212)6 
Corporate bonds
619 (3)(68)497 446 1,491 
Foreign government and agencies
4 — — — (4)— 
Municipal bonds
1 — — — (1)— 
Residential mortgage-backed securities
17 — — 31 (15)33 
Fair value option fixed maturities
306 (24)— 80 (137)225 
Equity securities
24 — — (1)— 23 
Investment funds
58 36 — 7 137 238 
Embedded derivatives [1]:
Fixed indexed annuities
(81)(54)— 34 (34)(135)
Other
— 5 — (5)— — 
Freestanding derivatives [1]:
Interest rate derivatives
— (10)— — — (10)
Variable annuities macro hedge program
148 (498)— 432 — 82 
Short-term investments
137 — — 368 (37)468 
Fixed indexed annuities hedge program [1]
12 22 — 14 — 48 
Ceded market risk benefits
894 (246)— — — 648 
Separate account assets
53 3 — (3)(5)48 
Year Ended December 31, 2022
Fixed maturities, available-for-sale:
Asset-backed securities
$— $— $(2)$46 $(3)$41 
Collateralized loan obligations
159 — (1)26(75)109 
Commercial mortgage-backed securities
276 — (26)34 (7)277 
Beginning Balance
Total Realized and Unrealized Gains (Losses) in
Net Purchases, Sales, and Settlements
Net Transfers
Ending Balance
Net Income (Loss)
Other Comprehensive Loss [2]
Corporate bonds
665 (2)(43)(15)14 619 
Foreign government and agencies
— — (1)5 — 4 
Municipal bonds
1 — — — — 1 
Residential mortgage-backed securities
74 — (1)(23)(33)17 
Fair value option fixed maturities
— (21)— 327 — 306 
Equity securities
21 6 — (3)— 24 
Investment funds
— 16 — 42 — 58 
Embedded derivatives [1]:
Fixed indexed annuities
(524)200 — 262 (19)(81)
Other
— 5 — (5)— — 
Freestanding derivatives [1]:
Interest rate derivatives
— 22 — (22)— — 
Variable annuities macro hedge program
(188)74 — 262 — 148 
— 
Short-term investments
75 — — 112 (50)137 
Fixed indexed annuities hedge program [1]
— (22)— 34 — 12 
Ceded market risk benefits
737 157 — — — 894 
Separate account assets
79 (2)— 76 (100)53 
[1]Derivative instruments and the FIA hedge program are reported in this table on a net basis for asset (liability) positions.
[2]Recorded in unrealized gain (loss) on available-for-sale securities in the statements of comprehensive income.
The following presents the amount, for recurring fair value measurements categorized within Level 3 of the fair value hierarchy, of the total realized and unrealized gains (losses) for the period included in net income (loss) as shown in the table above:
Net Investment Income
Investment and Derivative Related Losses, Net
Other [3]
Net Income (Loss)
Year Ended December 31, 2023
Fixed maturities, available-for-sale:
Corporate bonds
$(3)$— $— $(3)
Fair value option fixed maturities
— (24)— (24)
Investment funds
— 36 — 36 
Embedded derivatives:
Fixed indexed annuities
— (54)— (54)
Other
— 5 — 5 
Freestanding derivatives:
Interest rate derivatives
— (10)— (10)
Variable annuities macro hedge program
— (498)— (498)
Net Investment Income
Investment and Derivative Related Losses, Net
Other [3]
Net Income (Loss)
Fixed indexed annuities hedge program
— 22 — 22 
Ceded market risk benefits
— — (246)(246)
Separate account assets [2]
— 3 — 3 
Year Ended December 31, 2022
Fixed maturities, available-for-sale:
Corporate bonds
$(2)$— $— $(2)
Fair value option fixed maturities
— (21)— (21)
Equity securities
— 6 — 6 
Investment funds
— 16 — 16 
Embedded derivatives:
Fixed indexed annuities
—200 — 200 
Other
— 5 — 5 
Freestanding derivatives:
Interest rate derivatives
— 22 — 22 
Variable annuities macro hedge program
— 74 — 74 
Fixed indexed annuities hedge program
— (22)— (22)
Ceded market risk benefits
— — 157 157 
Separate account assets [2]
— (2)— (2)
[1]The realized/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 for the Company.
[2]Includes both market and non-market impacts in deriving realized and unrealized gains (losses).
[3]Other represents change in MRBs for ceded MRBs and benefits and losses for FIA embedded derivatives.
The following represents the gross components of net purchases, sales, and settlements, and net transfers shown above:
PurchasesSettlementsSalesNetTransfers inTransfers outNet
Year Ended December 31, 2023
Fixed maturities, available-for-sale:
Asset-backed securities
$25 $(17)$— $8 $— $— $— 
Collateralized loan obligations
59 — (50)9 — — — 
Commercial mortgage-backed securities
1 — (66)(65)— (212)(212)
Corporate bonds
674 (177)— 497 488 (42)446 
Foreign government and agencies
— — — — — (4)(4)
Municipal bonds
— — — — — (1)(1)
Residential mortgage-backed securities
33 (2)— 31 — (15)(15)
Fair value option fixed maturities
94 — (14)80 — (137)(137)
Equity securities
3 — (4)(1)— — — 
Investment funds
13 (6)— 7 137 — 137 
PurchasesSettlementsSalesNetTransfers inTransfers outNet
Embedded derivatives:
Fixed indexed annuities
42 (8)— 34 (42)8 (34)
Other— (5)— (5)— — — 
Freestanding derivatives:
Interest rate derivatives
— — — — — — — 
Variable annuities macro hedge program
72 — 360 432 — — — 
Short-term investments
528(160)— 368 — (37)(37)
Fixed indexed annuities hedge program
32 (18)— 14 — — — 
Separate account assets
$123 $— $(126)$(3)$43 $(48)$(5)
Year Ended December 31, 2022
Fixed maturities, available-for-sale:
Asset-backed securities
$52 $(6)$— $46 $— $(3)$(3)
Collateralized loan obligations
80 (54)— 26— (75)(75)
Commercial mortgage-backed securities
68 (34)— 34 — (7)(7)
Corporate bonds
132 (137)(10)(15)20 (6)14 
Foreign government and agencies
5 — — 5 — — — 
Municipal bonds
— — — — — — — 
Residential mortgage-backed securities
22 (26)(19)(23)— (33)(33)
Fair value option fixed maturities
327 — — 327 — — — 
Equity securities
8 (11)— (3)— — — 
Investment funds
42— — 42 — — — 
Embedded derivatives:
Fixed indexed annuities
291 (29)— 262 (41)22 (19)
Other— (5)— (5)— — — 
Freestanding derivatives:
Interest rate derivatives
— (22)— (22)— — — 
Variable annuities macro hedge program
351 (89)— 262 — — — 
Short-term investments
192 (80)— 112 — (50)(50)
Fixed indexed annuities hedge program
86 (52)— 34 — — — 
Separate account assets
$99 $— $(23)$76 $— $(100)$(100)
The following presents the amount, for recurring fair value measurements categorized within Level 3 of the fair value hierarchy still held at the end of the period, of the total unrealized gains (losses) for the period included in net income (loss) and OCI:
Year Ended December 31,

2023
2022
Net Income (Loss)
Other Comprehensive Loss [1]
Net Income (Loss)
Other Comprehensive Loss [1]
Fixed maturities, available-for-sale:
Year Ended December 31,

2023
2022
Net Income (Loss)
Other Comprehensive Loss [1]
Net Income (Loss)
Other Comprehensive Loss [1]
Asset-backed securities
$— $(1)$— $(2)
Collateralized loan obligations
— — — (1)
Commercial mortgage-backed securities
— (2)— (26)
Corporate bonds
— (171)(2)(43)
Residential mortgage-backed securities
— — — (2)
Fair value option fixed maturities
9 — (21)— 
Investment funds
(22)— 16 — 
Embedded derivatives:
Other
5 — 5 — 
Freestanding derivatives:
Interest rate derivatives
(11)— (3)— 
Variable annuities macro hedge program
(216)— 42 — 
Fixed indexed annuities hedge program
22 — (22)— 
Ceded market risk benefits
(246)— 157 — 
Separate account assets
$3 $— $(2)$— 
[1]Recorded in unrealized gain (loss) on available-for-sale securities in the statements of comprehensive income.

The following presents the carrying amount and fair value of the Company’s financial assets and liabilities not carried at fair value:
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value
The following presents the carrying amount and fair value of the Company’s financial assets and liabilities not carried at fair value:
As of December 31,
Fair Value
Hierarchy
Level		20232022
Carrying Amount
Fair
Value
Carrying Amount
Fair
Value
Assets
Policy loans
Level 2
$1,528 $1,528 $1,495 $1,495 
Mortgage loans
Level 3
2,019 1,814 2,520 2,232 
Liabilities
Other policyholder funds and benefits payable [1]
Level 3$9,921 $8,305 $10,675 $8,666 
Funds withheld liability
Level 2
10,367 10,367 11,034 11,034 
[1]This amount includes contracts accounted for as investment contracts in the scope of ASC 944 and excludes contracts accounted for as insurance contracts, such as our group accident and health, universal life insurance contracts, COLI, and certain FIA and VA contracts with death or other additional benefits