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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.


	September 30, 2022
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	22,987		$	923		$	0		$	23,910
Municipalities		0			2,276			0			2,276
Mortgage- and asset-backed securities		0			1,699			310			2,009
Public utilities		0			6,843			507			7,350
Sovereign and supranational		0			828			34			862
Banks/financial institutions		0			8,883			148			9,031
Other corporate		0			27,584			621			28,205
Total fixed maturity securities		22,987			49,036			1,620			73,643
Equity securities		801			66			197			1,064
Other investments		1,816			0			0			1,816
Cash and cash equivalents		4,710			0			0			4,710
Other assets:
Foreign currency swaps		0			146			0			146
Foreign currency forwards		0			995			0			995
Foreign currency options		0			5			0			5



Total other assets		0			1,146			0			1,146
Total assets		$	30,314		$	50,248		$	1,817		$	82,379
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	462		$	0		$	462
Foreign currency forwards		0			1,035			0			1,035

Interest rate swaps		0			590			0			590
Forward bond purchase commitment		0			1			0			1

Total liabilities		$	0		$	2,088		$	0		$	2,088


	December 31, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	32,532		$	1,288		$	0		$	33,820
Municipalities		0			3,036			0			3,036
Mortgage- and asset-backed securities		0			955			291			1,246
Public utilities		0			9,558			493			10,051
Sovereign and supranational		0			1,072			43			1,115
Banks/financial institutions		0			11,546			45			11,591
Other corporate		0			37,411			426			37,837
Total fixed maturity securities		32,532			64,866			1,298			98,696
Equity securities		1,340			90			173			1,603
Other investments		1,726			0			0			1,726
Cash and cash equivalents		5,051			0			0			5,051
Other assets:
Foreign currency swaps		0			137			0			137
Foreign currency forwards		0			791			0			791
Foreign currency options		0			8			0			8

Total other assets		0			936			0			936
Total assets		$	40,649		$	65,892		$	1,471		$	108,012
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	427		$	0		$	427
Foreign currency forwards		0			1,138			0			1,138
Interest rate swaps		0			54			0			54


Total liabilities		$	0		$	1,619		$	0		$	1,619

Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.


	September 30, 2022
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	16,742		$	19,053		$	172		$	0		$	19,225
Municipalities		264			0			321			0			321

Public utilities		34			0			41			0			41
Sovereign and supranational		409			0			477			0			477

Other corporate		17			0			21			0			21
Commercial mortgage and other loans		13,459			0			0			13,189			13,189
Other investments (1)		30			0			30			0			30
Total assets		$	30,955		$	19,053		$	1,062		$	13,189		$	33,304
Liabilities:
Other policyholders’ funds		$	5,632		$	0		$	0		$	5,539		$	5,539
Notes payable (excluding leases)		7,393			0			6,237			757			6,994
Total liabilities		$	13,025		$	0		$	6,237		$	6,296		$	12,533

(1) Excludes policy loans of $195 and equity method investments of $2,145, at carrying value


	December 31, 2021
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	21,086		$	25,469		$	230		$	0		$	25,699
Municipalities		335			0			436			0			436

Public utilities		43			0			55			0			55
Sovereign and supranational		514			0			650			0			650

Other corporate		22			0			29			0			29
Commercial mortgage and other loans		11,786			0			0			11,996			11,996
Other investments (1)		22			0			22			0			22
Total assets		$	33,808		$	25,469		$	1,422		$	11,996		$	38,887
Liabilities:
Other policyholders’ funds		$	7,072		$	0		$	0		$	6,957		$	6,957
Notes payable (excluding leases)		7,839			0			8,280			259			8,539
Total liabilities		$	14,911		$	0		$	8,280		$	7,216		$	15,496

(1) Excludes policy loans of $236 and equity method investments of $1,858, at carrying value

Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.


	September 30, 2022
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	22,987		$	570		$	0		$	23,557
Internal		0			353			0			353

Total government and agencies		22,987			923			0			23,910
Municipalities:
Third party pricing vendor		0			1,975			0			1,975
Internal		0			301			0			301

Total municipalities		0			2,276			0			2,276
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,676			0			1,676
Internal		0			3			0			3
Broker/other		0			20			310			330
Total mortgage- and asset-backed securities		0			1,699			310			2,009
Public utilities:
Third party pricing vendor		0			3,717			0			3,717
Internal		0			3,126			0			3,126
Broker/other		0			0			507			507
Total public utilities		0			6,843			507			7,350
Sovereign and supranational:
Third party pricing vendor		0			295			0			295
Internal		0			533			0			533
Broker/other		0			0			34			34
Total sovereign and supranational		0			828			34			862
Banks/financial institutions:
Third party pricing vendor		0			4,650			0			4,650
Internal		0			4,233			93			4,326
Broker/other		0			0			55			55
Total banks/financial institutions		0			8,883			148			9,031
Other corporate:
Third party pricing vendor		0			22,427			0			22,427
Internal		0			5,157			192			5,349
Broker/other		0			0			429			429
Total other corporate		0			27,584			621			28,205
Total securities available for sale		$	22,987		$	49,036		$	1,620		$	73,643
Equity securities, carried at fair value:
Third party pricing vendor		$	801		$	66		$	0		$	867

Broker/other		0			0			197			197
Total equity securities		$	801		$	66		$	197		$	1,064


	December 31, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	32,532		$	808		$	0		$	33,340
Internal		0			480			0			480
Total government and agencies		32,532			1,288			0			33,820
Municipalities:
Third party pricing vendor		0			2,222			0			2,222
Internal		0			814			0			814
Total municipalities		0			3,036			0			3,036
Mortgage- and asset-backed securities:
Third party pricing vendor		0			955			0			955
Broker/other		0			0			291			291
Total mortgage- and asset-backed securities		0			955			291			1,246
Public utilities:
Third party pricing vendor		0			4,527			0			4,527
Internal		0			5,031			0			5,031
Broker/other		0			0			493			493
Total public utilities		0			9,558			493			10,051
Sovereign and supranational:
Third party pricing vendor		0			273			0			273
Internal		0			799			0			799
Broker/other		0			0			43			43
Total sovereign and supranational		0			1,072			43			1,115
Banks/financial institutions:
Third party pricing vendor		0			5,237			0			5,237
Internal		0			6,309			0			6,309
Broker/other		0			0			45			45
Total banks/financial institutions		0			11,546			45			11,591
Other corporate:
Third party pricing vendor		0			29,495			0			29,495
Internal		0			7,916			0			7,916
Broker/other		0			0			426			426
Total other corporate		0			37,411			426			37,837
Total securities available for sale		$	32,532		$	64,866		$	1,298		$	98,696
Equity securities, carried at fair value:
Third party pricing vendor		$	1,340		$	90		$	0		$	1,430
Broker/other		0			0			173			173
Total equity securities		$	1,340		$	90		$	173		$	1,603

Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources


	September 30, 2022
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	19,053		$	172		$	0		$	19,225

Total government and agencies		19,053			172			0			19,225
Municipalities:
Third party pricing vendor		0			321			0			321

Total municipalities		0			321			0			321




Public utilities:
Third party pricing vendor		0			41			0			41


Total public utilities		0			41			0			41
Sovereign and supranational:
Third party pricing vendor		0			232			0			232

Broker/other		0			245			0			245
Total sovereign and supranational		0			477			0			477




Other corporate:
Third party pricing vendor		0			21			0			21


Total other corporate		0			21			0			21
Total securities held to maturity		$	19,053		$	1,032		$	0		$	20,085


	December 31, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	25,469		$	230		$	0		$	25,699
Total government and agencies		25,469			230			0			25,699
Municipalities:
Third party pricing vendor		0			436			0			436
Total municipalities		0			436			0			436




Public utilities:
Third party pricing vendor		0			55			0			55
Total public utilities		0			55			0			55
Sovereign and supranational:
Third party pricing vendor		0			313			0			313
Broker/other		0			337			0			337
Total sovereign and supranational		0			650			0			650



Other corporate:
Third party pricing vendor		0			29			0			29

Total other corporate		0			29			0			29
Total securities held to maturity		$	25,469		$	1,400		$	0		$	26,869

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

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value.


Three Months Ended September 30, 2022
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	311	$	537	$	36	$	91	$	632	$	190	$	0	$	1,797
Net investment gains (losses) included in earnings	0		1		0		1		0		(3)		0		(1)
Unrealized gains (losses) included in other comprehensive income (loss)	(12)		(30)		(2)		(12)		(41)		0		0		(97)
Purchases, issuances, sales and settlements:
Purchases	56		7		0		88		145		10		0		306
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0		0
Settlements	(21)		(8)		0		(20)		(183)		0		0		(232)
Transfers into Level 3	0		0		0		0		68		0		0		68
Transfers out of Level 3	(24)		0		0		0		0		0		0		(24)
Balance, end of period	$	310	$	507	$	34	$	148	$	621	$	197	$	0	$	1,817
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	1	$	0	$	0	$	0	$	(2)	$	0	$	(1)


Three Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps		Total
Balance, beginning of period	$	258	$	480	$	45	$	38	$	316	$	158		$	(200)	$	1,095
Net investment gains (losses) included in earnings	0		0		0		0		2		(1)			(57)		(56)
Unrealized gains (losses) included in other comprehensive income (loss)	(4)		(3)		0		0		(7)		0			0		(14)
Purchases, issuances, sales and settlements:
Purchases	35		54		0		8		0		12			0		109
Issuances	0		0		0		0		0		0			0		0
Sales	0		0		0		0		0		(8)			0		(8)
Settlements	0		(8)		0		0		0		0			0		(8)
Transfers into Level 3	0		0		0		0		0		0			0		0
Transfers out of Level 3	(39)		0		0		0		(5)		0			0		(44)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161		$	(257)	$	1,074
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	(4)	$	(3)	$	0	$	0	$	(7)	$	(1)		$	(57)	$	(72)


Nine Months Ended September 30, 2022
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	291	$	493	$	43	$	45	$	426	$	173	$	0	$	1,471
Net investment gains (losses) included in earnings	0		2		0		1		0		(2)		0		1
Unrealized gains (losses) included in other comprehensive income (loss)	(81)		(111)		(9)		(14)		(96)		0		0		(311)
Purchases, issuances, sales and settlements:
Purchases	222		35		0		121		267		53		0		698
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0		0
Settlements	(59)		(40)		0		(23)		(185)		(7)		0		(314)
Transfers into Level 3	0		128		0		18		350		0		0		496
Transfers out of Level 3	(63)		0		0		0		(141)		(20)		0		(224)
Balance, end of period	$	310	$	507	$	34	$	148	$	621	$	197	$	0	$	1,817
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	1	$	0	$	0	$	0	$	(4)	$	0	$	(3)


Nine Months Ended September 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
Net investment gains (losses) included in earnings	0		0		0		0		2		21		(158)		(135)
Unrealized gains (losses) included in other comprehensive income (loss)	(19)		(13)		(3)		(1)		(5)		0		(1)		(42)
Purchases, issuances, sales and settlements:
Purchases	99		132		0		23		0		29		0		283
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		(8)		0		(31)
Settlements	0		(18)		0		0		(17)		0		0		(35)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(54)		0		0		0		(5)		0		0		(59)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	(19)	$	(13)	$	(3)	$	(1)	$	(5)	$	21	$	(158)	$	(178)

Fair Value Measurement Inputs and Valuation Techniques

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

September 30, 2022

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

310

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

507

Discounted cash flow

Credit spreads

N/A

(a)

Sovereign and supranational

Discounted cash flow

Historical volatility

N/A

(a)

Banks/financial institutions

148

Consensus pricing

Offered quotes

N/A

(a)

Other corporate

621

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

197

Net asset value

Offered quotes

N/A

(a)

Total assets

1,817

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

December 31, 2021

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

291

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

493

Discounted cash flow

Credit spreads

N/A

(a)

Sovereign and supranational

Discounted cash flow

Historical volatility

N/A

(a)

Banks/financial institutions

Consensus pricing

Offered quotes

N/A

(a)

Other corporate

426

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

173

Net asset value

Offered quotes

N/A

(a)

Total assets

1,471

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.