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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2025

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.


	March 31, 2025
(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		$	16,972		$	845		$	0		$	17,817
Municipalities		0			2,055			0			2,055
Mortgage- and asset-backed securities		0			2,445			1,603			4,048
Public utilities		0			6,465			756			7,221
Sovereign and supranational		0			402			24			426
Banks/financial institutions		0			9,351			10			9,361
Other corporate		0			26,079			137			26,216
Total fixed maturity securities		16,972			47,642			2,530			67,144
Equity securities		604			0			160			764
Other investments		2,259			0			0			2,259
Cash and cash equivalents		5,231			0			0			5,231
Other assets:
Foreign currency swaps		0			49			0			49
Foreign currency forwards		0			92			0			92
Foreign currency options		0			2			0			2
Interest rate swaps		0			5			0			5


Total other assets		0			148			0			148
Total assets		$	25,066		$	47,790		$	2,690		$	75,546
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	642		$	0		$	642
Foreign currency forwards		0			39			0			39

Interest rate swaps		0			304			0			304


Total liabilities		$	0		$	985		$	0		$	985


	December 31, 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		$	17,088		$	758		$	0		$	17,846
Municipalities		0			2,034			0			2,034
Mortgage- and asset-backed securities		0			2,407			1,156			3,563
Public utilities		0			6,398			647			7,045
Sovereign and supranational		0			393			23			416
Banks/financial institutions		0			8,946			10			8,956
Other corporate		0			25,178			231			25,409
Total fixed maturity securities		17,088			46,114			2,067			65,269
Equity securities		639			0			157			796
Other investments		1,599			0			0			1,599
Cash and cash equivalents		6,229			0			0			6,229
Other assets:
Foreign currency swaps		0			55			0			55
Foreign currency forwards		0			185			0			185


Total other assets		0			240			0			240
Total assets		$	25,555		$	46,354		$	2,224		$	74,133
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	604		$	0		$	604

Interest rate swaps		0			329			0			329


Total liabilities		$	0		$	933		$	0		$	933

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.


	March 31, 2025
(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		$	16,193		$	16,262		$	144		$	0		$	16,406
Municipalities		249			0			260			0			260

Public utilities		33			0			33			0			33
Sovereign and supranational		396			0			418			0			418

Other corporate		17			0			18			0			18
Commercial mortgage and other loans		10,656			0			0			10,451			10,451
Other investments (1)		37			0			37			0			37
Total assets		$	27,581		$	16,262		$	910		$	10,451		$	27,623
Liabilities:
Other policyholders’ funds		$	5,863		$	0		$	0		$	5,789		$	5,789
Notes payable (excluding leases)		7,653			0			6,533			714			7,247
Total liabilities		$	13,516		$	0		$	6,533		$	6,503		$	13,036

(1) Excludes policy loans of $211, equity method investments of $3,482, and REO of $774, at carrying value


	December 31, 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		$	15,309		$	15,916		$	143		$	0		$	16,059
Municipalities		235			0			257			0			257

Public utilities		32			0			33			0			33
Sovereign and supranational		374			0			405			0			405

Other corporate		16			0			18			0			18
Commercial mortgage and other loans		10,869			0			0			10,653			10,653
Other investments (1)		39			0			39			0			39
Total assets		$	26,874		$	15,916		$	895		$	10,653		$	27,464
Liabilities:
Other policyholders’ funds		$	5,460		$	0		$	0		$	5,389		$	5,389
Notes payable (excluding leases)		7,402			0			6,352			675			7,027
Total liabilities		$	12,862		$	0		$	6,352		$	6,064		$	12,416

(1) Excludes policy loans of $203, equity method investments of $3,435, and REO of $682, 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.


	March 31, 2025
(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		$	16,972		$	524		$	0		$	17,496
Internal		0			321			0			321

Total government and agencies		16,972			845			0			17,817
Municipalities:
Third-party pricing vendor		0			1,812			0			1,812
Internal		0			243			0			243

Total municipalities		0			2,055			0			2,055
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,258			0			2,258
Internal		0			187			37			224
Broker/other		0			0			1,566			1,566
Total mortgage- and asset-backed securities		0			2,445			1,603			4,048
Public utilities:
Third-party pricing vendor		0			3,644			0			3,644
Internal		0			2,821			0			2,821
Broker/other		0			0			756			756
Total public utilities		0			6,465			756			7,221
Sovereign and supranational:
Third-party pricing vendor		0			78			0			78
Internal		0			324			0			324
Broker/other		0			0			24			24
Total sovereign and supranational		0			402			24			426
Banks/financial institutions:
Third-party pricing vendor		0			5,416			0			5,416
Internal		0			3,935			6			3,941
Broker/other		0			0			4			4
Total banks/financial institutions		0			9,351			10			9,361
Other corporate:
Third-party pricing vendor		0			20,762			0			20,762
Internal		0			5,317			21			5,338
Broker/other		0			0			116			116
Total other corporate		0			26,079			137			26,216
Total securities available-for-sale		$	16,972		$	47,642		$	2,530		$	67,144
Equity securities, carried at fair value:
Third-party pricing vendor		$	604		$	0		$	0		$	604
Internal		0			0			26			26
Broker/other		0			0			134			134
Total equity securities		$	604		$	0		$	160		$	764


	December 31, 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		$	17,088		$	446		$	0		$	17,534
Internal		0			312			0			312
Total government and agencies		17,088			758			0			17,846
Municipalities:
Third-party pricing vendor		0			1,791			0			1,791
Internal		0			243			0			243
Total municipalities		0			2,034			0			2,034
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,352			0			2,352
Internal		0			55			37			92
Broker/other		0			0			1,119			1,119
Total mortgage- and asset-backed securities		0			2,407			1,156			3,563
Public utilities:
Third-party pricing vendor		0			3,628			0			3,628
Internal		0			2,770			0			2,770
Broker/other		0			0			647			647
Total public utilities		0			6,398			647			7,045
Sovereign and supranational:
Third-party pricing vendor		0			78			0			78
Internal		0			315			0			315
Broker/other		0			0			23			23
Total sovereign and supranational		0			393			23			416
Banks/financial institutions:
Third-party pricing vendor		0			4,975			0			4,975
Internal		0			3,971			5			3,976
Broker/other		0			0			5			5
Total banks/financial institutions		0			8,946			10			8,956
Other corporate:
Third-party pricing vendor		0			20,051			0			20,051
Internal		0			5,127			116			5,243
Broker/other		0			0			115			115
Total other corporate		0			25,178			231			25,409
Total securities available-for-sale		$	17,088		$	46,114		$	2,067		$	65,269
Equity securities, carried at fair value:
Third-party pricing vendor		$	639		$	0		$	0		$	639
Internal		0			0			26			26
Broker/other		0			0			131			131
Total equity securities		$	639		$	0		$	157		$	796

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


	March 31, 2025
(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		$	16,262		$	144		$	0		$	16,406

Total government and agencies		16,262			144			0			16,406
Municipalities:
Third-party pricing vendor		0			260			0			260

Total municipalities		0			260			0			260




Public utilities:
Third-party pricing vendor		0			33			0			33


Total public utilities		0			33			0			33
Sovereign and supranational:
Third-party pricing vendor		0			205			0			205
Internal		0			213			0			213

Total sovereign and supranational		0			418			0			418




Other corporate:
Third-party pricing vendor		0			18			0			18


Total other corporate		0			18			0			18
Total securities held-to-maturity		$	16,262		$	873		$	0		$	17,135


	December 31, 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		$	15,916		$	143		$	0		$	16,059
Total government and agencies		15,916			143			0			16,059
Municipalities:
Third-party pricing vendor		0			257			0			257
Total municipalities		0			257			0			257




Public utilities:
Third-party pricing vendor		0			33			0			33
Total public utilities		0			33			0			33
Sovereign and supranational:
Third-party pricing vendor		0			198			0			198
Internal		0			207			0			207

Total sovereign and supranational		0			405			0			405



Other corporate:
Third-party pricing vendor		0			18			0			18

Total other corporate		0			18			0			18
Total securities held-to-maturity		$	15,916		$	856		$	0		$	16,772

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 March 31, 2025
	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	$	1,156	$	647	$	23	$	10	$	231	$	157	$	2,224
Net investment gains (losses) included in earnings	0		0		0		0		0		1		1
Unrealized gains (losses) included in other comprehensive income (loss)	10		6		1		0		2		0		19
Purchases, issuances, sales and settlements:
Purchases	434		110		0		0		0		3		547
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		(1)		(1)
Settlements	(12)		(7)		0		0		(1)		0		(20)
Transfers into Level 3	15		0		0		0		0		0		15
Transfers out of Level 3	0		0		0		0		(95)		0		(95)
Balance, end of period	$	1,603	$	756	$	24	$	10	$	137	$	160	$	2,690
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	$	1	$	1


Three Months Ended March 31, 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	1		0		0		0		0		(5)		(4)
Unrealized gains (losses) included in other comprehensive income (loss)	(4)		(10)		(2)		(4)		1		0		(19)
Purchases, issuances, sales and settlements:
Purchases	118		60		0		5		37		0		220
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(28)		(22)		0		(5)		(3)		(84)		(142)
Transfers into Level 3	0		226		0		0		0		0		226
Transfers out of Level 3	0		0		0		0		(233)		0		(233)
Balance, end of period	$	859	$	507	$	28	$	74	$	450	$	159	$	2,077
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)

Fair Value Measurement Inputs and Valuation Techniques

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.

March 31, 2025

(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

1,603

Consensus pricing

Offered quotes

86.24

106.46

(a)

99.62

Public utilities

756

Discounted cash flow

Credit spreads

100 bps

407 bps

(c)

164 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

137

Discounted cash flow

Credit spreads

100 bps

294 bps

(c)

198 bps

Equity securities

160

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,690

(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, 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

1,156

Consensus pricing

Offered quotes

84.08

104.60

(a)

99.07

Public utilities

647

Discounted cash flow

Credit spreads

100 bps

375 bps

(c)

162 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

231

Discounted cash flow

Credit spreads

91 bps

294 bps

(c)

173 bps

Equity securities

157

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,224

(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