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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

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.


	June 30, 2024
(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		$	17,520		$	761		$	0		$	18,281
Municipalities		0			2,083			0			2,083
Mortgage- and asset-backed securities		0			2,490			1,213			3,703
Public utilities		0			6,461			365			6,826
Sovereign and supranational		0			435			25			460
Banks/financial institutions		0			8,630			69			8,699
Other corporate		0			25,823			384			26,207
Total fixed maturity securities		17,520			46,683			2,056			66,259
Equity securities		571			0			157			728
Other investments		3,380			0			0			3,380
Cash and cash equivalents		6,060			0			0			6,060
Other assets:
Foreign currency swaps		0			74			0			74
Foreign currency forwards		0			235			0			235
Foreign currency options		0			7			0			7




Total other assets		0			316			0			316
Total assets		$	27,531		$	46,999		$	2,213		$	76,743
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	700		$	0		$	700

Foreign currency options		0			173			0			173
Interest rate swaps		0			451			0			451



Total liabilities		$	0		$	1,324		$	0		$	1,324


	December 31, 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		$	21,700		$	900		$	0		$	22,600
Municipalities		0			2,298			0			2,298
Mortgage- and asset-backed securities		0			2,314			772			3,086
Public utilities		0			7,339			253			7,592
Sovereign and supranational		0			507			30			537
Banks/financial institutions		0			8,757			78			8,835
Other corporate		0			27,694			648			28,342
Total fixed maturity securities		21,700			49,809			1,781			73,290
Equity securities		840			0			248			1,088
Other investments		1,304			0			0			1,304
Cash and cash equivalents		4,306			0			0			4,306
Other assets:
Foreign currency swaps		0			86			0			86
Foreign currency forwards		0			238			0			238
Foreign currency options		0			2			0			2
Interest rate swaps		0			11			0			11
Total other assets		0			337			0			337
Total assets		$	28,150		$	50,146		$	2,029		$	80,325
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	507		$	0		$	507
Foreign currency forwards		0			504			0			504
Interest rate swaps		0			419			0			419


Total liabilities		$	0		$	1,430		$	0		$	1,430

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.


	June 30, 2024
(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		$	15,038		$	15,727		$	140		$	0		$	15,867
Municipalities		232			0			256			0			256

Public utilities		31			0			32			0			32
Sovereign and supranational		368			0			398			0			398

Other corporate		16			0			17			0			17
Commercial mortgage and other loans		11,795			0			0			11,457			11,457
Other investments (1)		47			0			47			0			47
Total assets		$	27,527		$	15,727		$	890		$	11,457		$	28,074
Liabilities:
Other policyholders’ funds		$	5,439		$	0		$	0		$	5,364		$	5,364
Notes payable (excluding leases)		7,322			0			6,275			663			6,938
Total liabilities		$	12,761		$	0		$	6,275		$	6,027		$	12,302

(1) Excludes policy loans of $195, equity method investments of $2,983, and REO of $497, at carrying value.


	December 31, 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		$	17,083		$	18,662		$	167		$	0		$	18,829
Municipalities		266			0			307			0			307

Public utilities		34			0			38			0			38
Sovereign and supranational		418			0			462			0			462

Other corporate		18			0			21			0			21
Commercial mortgage and other loans		12,527			0			0			12,217			12,217
Other investments (1)		35			0			35			0			35
Total assets		$	30,381		$	18,662		$	1,030		$	12,217		$	31,909
Liabilities:
Other policyholders’ funds		$	6,169		$	0		$	0		$	6,080		$	6,080
Notes payable (excluding leases)		7,240			0			6,178			752			6,930
Total liabilities		$	13,409		$	0		$	6,178		$	6,832		$	13,010

(1) Excludes policy loans of $214, equity method investments of $2,750, and REO of $227, at carrying value.

Fair Value, Assets 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.


	June 30, 2024
(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		$	17,520		$	450		$	0		$	17,970
Internal		0			311			0			311

Total government and agencies		17,520			761			0			18,281
Municipalities:
Third-party pricing vendor		0			1,836			0			1,836
Internal		0			247			0			247

Total municipalities		0			2,083			0			2,083
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,446			40			2,486
Internal		0			44			39			83
Broker/other		0			0			1,134			1,134
Total mortgage- and asset-backed securities		0			2,490			1,213			3,703
Public utilities:
Third-party pricing vendor		0			3,576			0			3,576
Internal		0			2,885			0			2,885
Broker/other		0			0			365			365
Total public utilities		0			6,461			365			6,826
Sovereign and supranational:
Third-party pricing vendor		0			124			0			124
Internal		0			311			0			311
Broker/other		0			0			25			25
Total sovereign and supranational		0			435			25			460
Banks/financial institutions:
Third-party pricing vendor		0			4,765			0			4,765
Internal		0			3,865			60			3,925
Broker/other		0			0			9			9
Total banks/financial institutions		0			8,630			69			8,699
Other corporate:
Third-party pricing vendor		0			20,738			0			20,738
Internal		0			5,024			127			5,151
Broker/other		0			61			257			318
Total other corporate		0			25,823			384			26,207
Total securities available-for-sale		$	17,520		$	46,683		$	2,056		$	66,259
Equity securities, carried at fair value:
Third-party pricing vendor		$	571		$	0		$	0		$	571

Broker/other		0			0			157			157
Total equity securities		$	571		$	0		$	157		$	728


	December 31, 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		$	21,692		$	808		$	0		$	22,500
Internal		0			60			0			60
Broker/other		8			32			0			40
Total government and agencies		21,700			900			0			22,600
Municipalities:
Third-party pricing vendor		0			1,426			0			1,426
Internal		0			256			0			256
Broker/other		0			616			0			616
Total municipalities		0			2,298			0			2,298
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,277			0			2,277
Internal		0			27			105			132
Broker/other		0			10			667			677
Total mortgage- and asset-backed securities		0			2,314			772			3,086
Public utilities:
Third-party pricing vendor		0			4,570			0			4,570
Internal		0			2,677			0			2,677
Broker/other		0			92			253			345
Total public utilities		0			7,339			253			7,592
Sovereign and supranational:
Third-party pricing vendor		0			118			0			118
Internal		0			330			0			330
Broker/other		0			59			30			89
Total sovereign and supranational		0			507			30			537
Banks/financial institutions:
Third-party pricing vendor		0			5,085			0			5,085
Internal		0			3,008			69			3,077
Broker/other		0			664			9			673
Total banks/financial institutions		0			8,757			78			8,835
Other corporate:
Third-party pricing vendor		0			18,088			4			18,092
Internal		0			4,210			230			4,440
Broker/other		0			5,396			414			5,810
Total other corporate		0			27,694			648			28,342
Total securities available-for-sale		$	21,700		$	49,809		$	1,781		$	73,290
Equity securities, carried at fair value:
Third-party pricing vendor		$	800		$	0		$	0		$	800
Internal		0			0			216			216
Broker/other		40			0			32			72
Total equity securities		$	840		$	0		$	248		$	1,088

Fair Value, Assets Carried At Amortized Cost, Primary Pricing Sources


	June 30, 2024
(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		$	15,727		$	140		$	0		$	15,867

Total government and agencies		15,727			140			0			15,867
Municipalities:
Third-party pricing vendor		0			256			0			256

Total municipalities		0			256			0			256




Public utilities:
Third-party pricing vendor		0			32			0			32


Total public utilities		0			32			0			32
Sovereign and supranational:
Third-party pricing vendor		0			196			0			196
Internal		0			202			0			202

Total sovereign and supranational		0			398			0			398




Other corporate:
Third-party pricing vendor		0			17			0			17


Total other corporate		0			17			0			17
Total securities held-to-maturity		$	15,727		$	843		$	0		$	16,570


	December 31, 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		$	18,662		$	167		$	0		$	18,829
Total government and agencies		18,662			167			0			18,829
Municipalities:
Third-party pricing vendor		0			307			0			307
Total municipalities		0			307			0			307




Public utilities:
Third-party pricing vendor		0			38			0			38
Total public utilities		0			38			0			38
Sovereign and supranational:
Third-party pricing vendor		0			226			0			226
Internal		0			236			0			236
Total sovereign and supranational		0			462			0			462



Other corporate:
Third-party pricing vendor		0			21			0			21

Total other corporate		0			21			0			21
Total securities held-to-maturity		$	18,662		$	995		$	0		$	19,657

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 June 30, 2024
	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	$	859	$	507	$	28	$	74	$	450	$	159	$	2,077
Net investment gains (losses) included in earnings	1		0		0		0		0		(2)		(1)
Unrealized gains (losses) included in other comprehensive income (loss)	(5)		(1)		(1)		(5)		(5)		0		(17)
Purchases, issuances, sales and settlements:
Purchases	189		39		0		0		58		0		286
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(21)		(3)		(2)		0		0		0		(26)
Transfers into Level 3	190		56		0		0		0		0		246
Transfers out of Level 3	0		(233)		0		0		(119)		0		(352)
Balance, end of period	$	1,213	$	365	$	25	$	69	$	384	$	157	$	2,213
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	1	$	0	$	0	$	0	$	0	$	(3)	$	(2)


Three Months Ended June 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	$	418	$	350	$	37	$	161	$	753	$	221	$	1,940
Net investment gains (losses) included in earnings	0		0		0		0		0		(8)		(8)
Unrealized gains (losses) included in other comprehensive income (loss)	(13)		(16)		(3)		2		(22)		0		(52)
Purchases, issuances, sales and settlements:
Purchases	136		0		0		0		37		0		173
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(13)		(2)		(2)		(7)		(1)		0		(25)
Transfers into Level 3	124		0		0		0		0		0		124
Transfers out of Level 3	0		(30)		0		(87)		(195)		0		(312)
Balance, end of period	$	652	$	302	$	32	$	69	$	572	$	213	$	1,840
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	$	(8)	$	(8)


Six Months Ended June 30, 2024
	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	$	772	$	253	$	30	$	78	$	648	$	248	$	2,029
Net investment gains (losses) included in earnings	2		0		0		0		0		(7)		(5)
Unrealized gains (losses) included in other comprehensive income (loss)	(9)		(11)		(3)		(9)		(4)		0		(36)
Purchases, issuances, sales and settlements:
Purchases	307		99		0		5		95		0		506
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(49)		(25)		(2)		(5)		(3)		(84)		(168)
Transfers into Level 3	190		282		0		0		0		0		472
Transfers out of Level 3	0		(233)		0		0		(352)		0		(585)
Balance, end of period	$	1,213	$	365	$	25	$	69	$	384	$	157	$	2,213
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	2	$	0	$	0	$	0	$	0	$	(6)	$	(4)


Six Months Ended June 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		(6)		(6)
Unrealized gains (losses) included in other comprehensive income (loss)	(10)		(6)		(3)		4		8		0		(7)
Purchases, issuances, sales and settlements:
Purchases	328		0		0		0		112		10		450
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(133)		(9)		(2)		(7)		(3)		0		(154)
Transfers into Level 3	124		18		0		0		0		0		142
Transfers out of Level 3	0		(198)		0		(87)		(287)		0		(572)
Balance, end of period	$	652	$	302	$	32	$	69	$	572	$	213	$	1,840
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	$	(5)	$	(5)

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.

June 30, 2024

(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

1,213

Consensus pricing

Offered quotes

85.46

104.49

(a)

98.74

Public utilities

365

Discounted cash flow

Credit spreads

175 bps

225 bps

(c)

209 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(b)

N/A

Other corporate

384

Discounted cash flow

Credit spreads

89 bps

363 bps

(c)

224 bps

Equity securities

157

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,213

(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) Category represents a single security; range not applicable.

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

December 31, 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

772

Consensus pricing

Offered quotes

84.81

105.89

(a)

99.39

Public utilities

253

Consensus pricing

Offered quotes

94.34

102.99

(a)

96.46

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(b)

N/A

Other corporate

648

Discounted cash flow

Credit spreads

69 bps

423 bps

(c)

206 bps

Equity securities

248

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,029

(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) Category represents a single security; range not applicable.

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

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details