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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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.


	September 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		$	20,089		$	852		$	0		$	20,941
Municipalities		0			2,230			0			2,230
Mortgage- and asset-backed securities		0			2,521			1,209			3,730
Public utilities		0			6,904			570			7,474
Sovereign and supranational		0			466			28			494
Banks/financial institutions		0			9,750			10			9,760
Other corporate		0			27,289			374			27,663
Total fixed maturity securities		20,089			50,012			2,191			72,292
Equity securities		647			0			161			808
Other investments		3,533			0			0			3,533
Cash and cash equivalents		5,612			0			0			5,612
Other assets:
Foreign currency swaps		0			60			0			60
Foreign currency forwards		0			63			0			63
Foreign currency options		0			57			0			57
Interest rate swaps		0			19			0			19



Total other assets		0			199			0			199
Total assets		$	29,881		$	50,211		$	2,352		$	82,444
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	623		$	0		$	623
Foreign currency forwards		0			35			0			35
Foreign currency options		0			24			0			24
Interest rate swaps		0			239			0			239



Total liabilities		$	0		$	921		$	0		$	921


	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.


	September 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		$	16,968		$	18,007		$	161		$	0		$	18,168
Municipalities		262			0			293			0			293

Public utilities		35			0			37			0			37
Sovereign and supranational		415			0			457			0			457

Other corporate		18			0			20			0			20
Commercial mortgage and other loans		11,544			0			0			11,315			11,315
Other investments (1)		42			0			42			0			42
Total assets		$	29,284		$	18,007		$	1,010		$	11,315		$	30,332
Liabilities:
Other policyholders’ funds		$	6,095		$	0		$	0		$	6,015		$	6,015
Notes payable (excluding leases)		7,868			0			6,895			748			7,643
Total liabilities		$	13,963		$	0		$	6,895		$	6,763		$	13,658

(1) Excludes policy loans of $221, equity method investments of $3,206, and REO of $645, 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.


	September 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		$	20,089		$	505		$	0		$	20,594
Internal		0			347			0			347

Total government and agencies		20,089			852			0			20,941
Municipalities:
Third-party pricing vendor		0			1,962			0			1,962
Internal		0			268			0			268

Total municipalities		0			2,230			0			2,230
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,487			0			2,487
Internal		0			34			38			72
Broker/other		0			0			1,171			1,171
Total mortgage- and asset-backed securities		0			2,521			1,209			3,730
Public utilities:
Third-party pricing vendor		0			3,858			0			3,858
Internal		0			3,046			0			3,046
Broker/other		0			0			570			570
Total public utilities		0			6,904			570			7,474
Sovereign and supranational:
Third-party pricing vendor		0			111			0			111
Internal		0			355			0			355
Broker/other		0			0			28			28
Total sovereign and supranational		0			466			28			494
Banks/financial institutions:
Third-party pricing vendor		0			5,330			0			5,330
Internal		0			4,420			0			4,420
Broker/other		0			0			10			10
Total banks/financial institutions		0			9,750			10			9,760
Other corporate:
Third-party pricing vendor		0			21,666			0			21,666
Internal		0			5,623			169			5,792
Broker/other		0			0			205			205
Total other corporate		0			27,289			374			27,663
Total securities available-for-sale		$	20,089		$	50,012		$	2,191		$	72,292
Equity securities, carried at fair value:
Third-party pricing vendor		$	647		$	0		$	0		$	647

Broker/other		0			0			161			161
Total equity securities		$	647		$	0		$	161		$	808


	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


	September 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		$	18,007		$	161		$	0		$	18,168

Total government and agencies		18,007			161			0			18,168
Municipalities:
Third-party pricing vendor		0			293			0			293

Total municipalities		0			293			0			293




Public utilities:
Third-party pricing vendor		0			37			0			37


Total public utilities		0			37			0			37
Sovereign and supranational:
Third-party pricing vendor		0			224			0			224
Internal		0			233			0			233

Total sovereign and supranational		0			457			0			457




Other corporate:
Third-party pricing vendor		0			20			0			20


Total other corporate		0			20			0			20
Total securities held-to-maturity		$	18,007		$	968		$	0		$	18,975


	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 September 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	$	1,213	$	365	$	25	$	69	$	384	$	157	$	2,213
Net investment gains (losses) included in earnings	1		0		0		0		0		2		3
Unrealized gains (losses) included in other comprehensive income (loss)	57		19		3		0		20		0		99
Purchases, issuances, sales and settlements:
Purchases	31		48		0		4		98		3		184
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		(1)		(1)
Settlements	(18)		(1)		0		(4)		(1)		0		(24)
Transfers into Level 3	15		139		0		0		5		0		159
Transfers out of Level 3	(90)		0		0		(59)		(132)		0		(281)
Balance, end of period	$	1,209	$	570	$	28	$	10	$	374	$	161	$	2,352
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	$	6	$	7


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)


Nine Months Ended September 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	3		0		0		0		0		(5)		(2)
Unrealized gains (losses) included in other comprehensive income (loss)	48		8		0		(9)		16		0		63
Purchases, issuances, sales and settlements:
Purchases	338		147		0		9		193		3		690
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		(1)		(1)
Settlements	(67)		(26)		(2)		(9)		(4)		(84)		(192)
Transfers into Level 3	205		421		0		0		5		0		631
Transfers out of Level 3	(90)		(233)		0		(59)		(484)		0		(866)
Balance, end of period	$	1,209	$	570	$	28	$	10	$	374	$	161	$	2,352
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	3	$	0	$	0	$	0	$	0	$	0	$	3


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)

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, 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

1,209

Consensus pricing

Offered quotes

85.75

109.00

(a)

100.74

Public utilities

570

Discounted cash flow

Credit spreads

175 bps

375 bps

(c)

216 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Adjusted cost

Private financials

N/A

(d)

N/A

Other corporate

374

Discounted cash flow

Credit spreads

90 bps

294 bps

(c)

211 bps

Equity securities

161

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,352

(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