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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023
(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		$	21,095		$	857		$	0		$	21,952
Municipalities		0			2,141			0			2,141
Mortgage- and asset-backed securities		0			2,316			680			2,996
Public utilities		0			6,991			259			7,250
Sovereign and supranational		0			480			31			511
Banks/financial institutions		0			8,271			70			8,341
Other corporate		0			26,046			564			26,610
Total fixed maturity securities		21,095			47,102			1,604			69,801
Equity securities		787			0			203			990
Other investments		2,288			0			0			2,288
Cash and cash equivalents		5,502			0			0			5,502
Other assets:
Foreign currency swaps		0			98			0			98
Foreign currency forwards		0			479			0			479
Foreign currency options		0			1			0			1



Total other assets		0			578			0			578
Total assets		$	29,672		$	47,680		$	1,807		$	79,159
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	442		$	0		$	442
Foreign currency forwards		0			588			0			588

Interest rate swaps		0			636			0			636


Total liabilities		$	0		$	1,666		$	0		$	1,666


	December 31, 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		$	24,158		$	956		$	0		$	25,114
Municipalities		0			2,320			0			2,320
Mortgage- and asset-backed securities		0			1,803			343			2,146
Public utilities		0			7,169			497			7,666
Sovereign and supranational		0			797			37			834
Banks/financial institutions		0			9,140			159			9,299
Other corporate		0			27,620			742			28,362
Total fixed maturity securities		24,158			49,805			1,778			75,741
Equity securities		822			60			209			1,091
Other investments		1,532			0			0			1,532
Cash and cash equivalents		3,943			0			0			3,943
Other assets:
Foreign currency swaps		0			128			0			128
Foreign currency forwards		0			400			0			400
Foreign currency options		0			82			0			82
Interest rate swaps		0			7			0			7
Total other assets		0			617			0			617
Total assets		$	30,455		$	50,482		$	1,987		$	82,924
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	390		$	0		$	390
Foreign currency forwards		0			725			0			725
Interest rate swaps		0			583			0			583


Total liabilities		$	0		$	1,698		$	0		$	1,698

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, 2023
(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		$	16,200		$	17,530		$	157		$	0		$	17,687
Municipalities		253			0			289			0			289

Public utilities		33			0			36			0			36
Sovereign and supranational		396			0			429			0			429

Other corporate		17			0			19			0			19
Commercial mortgage and other loans		12,873			0			0			12,432			12,432
Other investments (1)		34			0			34			0			34
Total assets		$	29,806		$	17,530		$	964		$	12,432		$	30,926
Liabilities:
Other policyholders’ funds		$	5,884		$	0		$	0		$	5,795		$	5,795
Notes payable (excluding leases)		6,824			0			5,555			713			6,268
Total liabilities		$	12,708		$	0		$	5,555		$	6,508		$	12,063

(1) Excludes policy loans of $201, equity method investments of $2,629 and REO of $89, at carrying value


	December 31, 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		$	18,267		$	20,132		$	180		$	0		$	20,312
Municipalities		287			0			335			0			335

Public utilities		37			0			41			0			41
Sovereign and supranational		446			0			500			0			500

Other corporate		19			0			22			0			22
Commercial mortgage and other loans		13,496			0			0			13,212			13,212
Other investments (1)		34			0			34			0			34
Total assets		$	32,586		$	20,132		$	1,112		$	13,212		$	34,456
Liabilities:
Other policyholders’ funds		$	6,643		$	0		$	0		$	6,543		$	6,543
Notes payable (excluding leases)		7,295			0			6,024			802			6,826
Total liabilities		$	13,938		$	0		$	6,024		$	7,345		$	13,369

(1) Excludes policy loans of $214 and equity method investments of $2,290, at carrying value

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

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, 2023
(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		$	21,095		$	522		$	0		$	21,617
Internal		0			335			0			335

Total government and agencies		21,095			857			0			21,952
Municipalities:
Third party pricing vendor		0			1,870			0			1,870
Internal		0			271			0			271

Total municipalities		0			2,141			0			2,141
Mortgage- and asset-backed securities:
Third party pricing vendor		0			2,274			0			2,274
Internal		0			12			101			113
Broker/other		0			30			579			609
Total mortgage- and asset-backed securities		0			2,316			680			2,996
Public utilities:
Third party pricing vendor		0			3,575			0			3,575
Internal		0			3,331			0			3,331
Broker/other		0			85			259			344
Total public utilities		0			6,991			259			7,250
Sovereign and supranational:
Third party pricing vendor		0			143			0			143
Internal		0			337			0			337
Broker/other		0			0			31			31
Total sovereign and supranational		0			480			31			511
Banks/financial institutions:
Third party pricing vendor		0			4,249			0			4,249
Internal		0			4,022			61			4,083
Broker/other		0			0			9			9
Total banks/financial institutions		0			8,271			70			8,341
Other corporate:
Third party pricing vendor		0			20,854			0			20,854
Internal		0			5,105			209			5,314
Broker/other		0			87			355			442
Total other corporate		0			26,046			564			26,610
Total securities available-for-sale		$	21,095		$	47,102		$	1,604		$	69,801
Equity securities, carried at fair value:
Third party pricing vendor		$	787		$	0		$	0		$	787

Broker/other		0			0			203			203
Total equity securities		$	787		$	0		$	203		$	990


	December 31, 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		$	24,158		$	582		$	0		$	24,740
Internal		0			374			0			374
Total government and agencies		24,158			956			0			25,114
Municipalities:
Third party pricing vendor		0			2,021			0			2,021
Internal		0			299			0			299
Total municipalities		0			2,320			0			2,320
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,798			0			1,798
Internal		0			3			0			3
Broker/other		0			2			343			345
Total mortgage- and asset-backed securities		0			1,803			343			2,146
Public utilities:
Third party pricing vendor		0			3,786			0			3,786
Internal		0			3,383			0			3,383
Broker/other		0			0			497			497
Total public utilities		0			7,169			497			7,666
Sovereign and supranational:
Third party pricing vendor		0			232			0			232
Internal		0			565			0			565
Broker/other		0			0			37			37
Total sovereign and supranational		0			797			37			834
Banks/financial institutions:
Third party pricing vendor		0			4,622			0			4,622
Internal		0			4,518			105			4,623
Broker/other		0			0			54			54
Total banks/financial institutions		0			9,140			159			9,299
Other corporate:
Third party pricing vendor		0			22,268			0			22,268
Internal		0			5,352			200			5,552
Broker/other		0			0			542			542
Total other corporate		0			27,620			742			28,362
Total securities available-for-sale		$	24,158		$	49,805		$	1,778		$	75,741
Equity securities, carried at fair value:
Third party pricing vendor		$	822		$	60		$	0		$	882
Broker/other		0			0			209			209
Total equity securities		$	822		$	60		$	209		$	1,091

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


	September 30, 2023
(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		$	17,530		$	157		$	0		$	17,687

Total government and agencies		17,530			157			0			17,687
Municipalities:
Third party pricing vendor		0			289			0			289

Total municipalities		0			289			0			289




Public utilities:
Third party pricing vendor		0			36			0			36


Total public utilities		0			36			0			36
Sovereign and supranational:
Third party pricing vendor		0			213			0			213
Internal		0			216			0			216

Total sovereign and supranational		0			429			0			429




Other corporate:
Third party pricing vendor		0			19			0			19


Total other corporate		0			19			0			19
Total securities held-to-maturity		$	17,530		$	930		$	0		$	18,460


	December 31, 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		$	20,132		$	180		$	0		$	20,312
Total government and agencies		20,132			180			0			20,312
Municipalities:
Third party pricing vendor		0			335			0			335
Total municipalities		0			335			0			335




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			242			0			242
Broker/other		0			258			0			258
Total sovereign and supranational		0			500			0			500



Other corporate:
Third party pricing vendor		0			22			0			22

Total other corporate		0			22			0			22
Total securities held-to-maturity		$	20,132		$	1,078		$	0		$	21,210

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

The following tables present the changes in fair value of the Company's investments carried at fair value classified as Level 3.


Three Months Ended September 30, 2023
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	652	$	302	$	32	$	69	$	572	$	213	$	1,840
Net investment gains (losses) included in earnings	0		0		0		0		0		(7)		(7)
Unrealized gains (losses) included in other comprehensive income (loss)	(13)		(12)		(1)		(2)		(41)		0		(69)
Purchases, issuances, sales and settlements:
Purchases	55		36		0		0		36		0		127
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(11)		(6)		0		0		0		0		(17)
Transfers into Level 3	0		0		0		3		39		0		42
Transfers out of Level 3	(3)		(61)		0		0		(42)		(3)		(109)
Balance, end of period	$	680	$	259	$	31	$	70	$	564	$	203	$	1,807
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	(3)	$	(3)


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


Nine Months Ended September 30, 2023
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	343	$	497	$	37	$	159	$	742	$	209	$	1,987
Net investment gains (losses) included in earnings	0		0		0		0		0		(13)		(13)
Unrealized gains (losses) included in other comprehensive income (loss)	(23)		(18)		(4)		2		(33)		0		(76)
Purchases, issuances, sales and settlements:
Purchases	383		36		0		0		148		10		577
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(144)		(15)		(2)		(7)		(3)		0		(171)
Transfers into Level 3	124		18		0		3		39		0		184
Transfers out of Level 3	(3)		(259)		0		(87)		(329)		(3)		(681)
Balance, end of period	$	680	$	259	$	31	$	70	$	564	$	203	$	1,807
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	1	$	1	$	0	$	0	$	0	$	(9)	$	(7)


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

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, 2023

(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

680

Consensus pricing

Offered quotes

80.10

105.93

(a)

97.03

Public utilities

259

Consensus pricing

Offered quotes

93.16

98.77

(a)

95.08

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(c)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(c)

N/A

Other corporate

564

Discounted cash flow

Credit spreads

68 bps

512 bps

(b)

207 bps

Equity securities

203

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

1,807

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques.

(b) Actual or equivalent credit spreads in basis points.

(d) Prices do not utilize credit spreads; therefore, range is not applicable.

December 31, 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

343

Consensus pricing

Offered quotes

97.38

106.71

(a)

102.98

Public utilities

497

Discounted cash flow

Credit spreads

128 bps

286 bps

(b)

192 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(c)

N/A

Banks/financial institutions

159

Discounted cash flow

Credit spreads

67 bps

188 bps

(b)

113 bps

Other corporate

742

Discounted cash flow

Credit spreads

66 bps

647 bps

(b)

191 bps

Equity securities

209

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

1,987

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques.

(b) Actual or equivalent credit spreads in basis points.

(d) Prices do not utilize credit spreads; therefore, range is not applicable