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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of December 31, 2019						As of December 31, 2018
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	105,200		$	105,200		$	94,024		$	94,024
Trading securities		4,673			4,673			1,950			1,950
Equity securities		103			103			99			99
Mortgage loans on real estate		16,339			16,872			13,260			13,092
Derivative investments ⁽¹⁾		1,911			1,911			1,107			1,107
Other investments		2,983			2,983			2,255			2,255
Cash and invested cash		2,563			2,563			2,345			2,345
Other assets:
GLB direct embedded derivatives		450			450			123			123
GLB ceded embedded derivatives		60			60			72			72
Indexed annuity ceded embedded derivatives		927			927			902			902
Separate account assets		153,566			153,566			132,833			132,833

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(2,585	)		(2,585	)		(1,305	)		(1,305	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,900	)		(1,900	)		(542	)		(542	)
Account values of certain investment contracts		(38,639	)		(46,822	)		(34,535	)		(36,358	)
Short-term debt		(300	)		(304	)		-			-
Long-term debt		(6,067	)		(6,217	)		(5,839	)		(5,604	)
Reinsurance related embedded derivatives		(327	)		(327	)		(3	)		(3	)
Other liabilities:
Derivative liabilities⁽¹⁾		(349	)		(349	)		(160	)		(160	)
GLB ceded embedded derivatives		(9	)		(9	)		-			-

Benefit Plans’ Assets ⁽²⁾		1,589			1,589			1,420			1,420

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

⁽²⁾Included in the funded statuses of the benefit plans, which is reported in other liabilities on our Consolidated Balance Sheets. Refer to Note 17 for information regarding our benefit plans.

Fair Value Of Assets And Liabilities On A Recurring Basis



		As of December 31, 2019
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	84,435			$	4,281		$	88,716
U.S. government bonds			424			6				5			435
State and municipal bonds			-			5,884				-			5,884
Foreign government bonds			-			303				90			393
RMBS			-			3,230				11			3,241
CMBS			-			1,082				1			1,083
ABS			-			4,621				268			4,889
Hybrid and redeemable preferred securities			77			404				78			559
Trading securities			50			3,957				666			4,673
Equity securities			25			48				30			103
Derivative investments ⁽¹⁾			-			1,212				1,735			2,947
Cash and invested cash			-			2,563				-			2,563
Other assets:
GLB direct embedded derivatives			-			-				450			450
GLB ceded embedded derivatives			-			-				60			60
Indexed annuity ceded embedded derivatives			-			-				927			927
Separate account assets			639			152,916				-			153,555
Total assets		$	1,215		$	260,661			$	8,602		$	270,478

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(2,585	)	$	(2,585	)
Reinsurance related embedded derivatives			-			(327	)			-			(327	)
Other liabilities:
Derivative liabilities ⁽¹⁾			-			(518	)			(867	)		(1,385	)
GLB ceded embedded derivatives			-			-				(9	)		(9	)
Total liabilities		$	-		$	(845	)		$	(3,461	)	$	(4,306	)

Benefit Plans’ Assets		$	195		$	1,394			$	-		$	1,589

‎


		As of December 31, 2018
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	77,079			$	3,269		$	80,348
U.S. government bonds			399			18				-			417
State and municipal bonds			-			5,345				-			5,345
Foreign government bonds			-			339				109			448
RMBS			-			3,366				7			3,373
CMBS			-			802				2			804
ABS			-			2,562				134			2,696
Hybrid and redeemable preferred securities			67			451				75			593
Trading securities			43			1,840				67			1,950
Equity securities			16			58				25			99
Derivative investments ⁽¹⁾			-			727				705			1,432
Other investments			150			-				-			150
Cash and invested cash			-			2,345				-			2,345
Other assets:
GLB direct embedded derivatives			-			-				123			123
GLB ceded embedded derivatives			-			-				72			72
Indexed annuity ceded embedded derivatives			-			-				902			902
Separate account assets			665			132,135				-			132,800
Total assets		$	1,340		$	227,067			$	5,490		$	233,897

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(1,305	)	$	(1,305	)
Reinsurance related embedded derivatives			-			(3	)			-			(3	)
Other liabilities:
Derivative liabilities ⁽¹⁾			-			(314	)			(171	)		(485	)
Total liabilities		$	-		$	(317	)		$	(1,476	)	$	(1,793	)

Benefit Plans’ Assets		$	158		$	1,262			$	-		$	1,420

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

Fair Value Measured On A Recurring Basis Reconciliation



	For the Year Ended December 31, 2019
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net ⁽³⁾			Value
Investments: ⁽⁵⁾
Fixed maturity AFS securities:
Corporate bonds	$	3,269		$	3		$	180		$	878		$	(49	)	$	4,281
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		109			-			6			(25	)		-			90
RMBS		7			-			-			21			(17	)		11
CMBS		2			1			-			5			(7	)		1
ABS		134			-			1			619			(486	)		268
Hybrid and redeemable
preferred securities		75			-			3			-			-			78
Trading securities		67			17			-			850			(268	)		666
Equity securities		25			(12	)		-			17			-			30
Derivative investments		534			10			163			161			-			868
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		123			327			-			-			-			450
GLB ceded embedded derivatives		72			(12	)		-			-			-			60
Indexed annuity ceded embedded derivatives		902			158			-			(133	)		-			927
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,305	)		(900	)		-			(380	)		-			(2,585	)
Other liabilities – GLB ceded embedded
derivatives ⁽⁶⁾		-			(9	)		-			-			-			(9	)
Total, net	$	4,014		$	(417	)	$	353		$	2,013		$	(822	)	$	5,141

‎


	For the Year Ended December 31, 2018
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net ⁽²⁾			Net ⁽³⁾⁽⁴⁾			Value
Investments: ⁽⁵⁾
Fixed maturity AFS securities:
Corporate bonds	$	3,091		$	10		$	(199	)	$	429		$	(62	)	$	3,269
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		110			-			(1	)		-			-			109
RMBS		12			-			-			7			(12	)		7
CMBS		6			-			-			35			(39	)		2
ABS		118			-			(1	)		223			(206	)		134
Hybrid and redeemable
preferred securities		76			-			(1	)		-			-			75
Equity AFS securities		162			-			-			-			(162	)		-
Trading securities		49			(5	)		-			30			(7	)		67
Equity securities		-			(1	)		-			-			26			25
Derivative investments		30			170			(69	)		403			-			534
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		903			(780	)		-			-			-			123
GLB ceded embedded derivatives		51			21			-			-			-			72
Indexed annuity ceded embedded derivatives		11			(117	)		-			1,008			-			902
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,418	)		198			-			(85	)		-			(1,305	)
Other liabilities – GLB ceded embedded
derivatives ⁽⁶⁾		(67	)		67			-			-			-			-
Total, net	$	3,139		$	(437	)	$	(271	)	$	2,045		$	(462	)	$	4,014

‎


	For the Year Ended December 31, 2017
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net ⁽³⁾			Value
Investments: ⁽⁵⁾
Fixed maturity AFS securities:
Corporate bonds	$	2,405		$	19		$	198		$	99		$	370		$	3,091
U.S. government bonds		-			-			-			-			5			5
Foreign government bonds		111			-			(1	)		-			-			110
RMBS		3			-			-			20			(11	)		12
CMBS		7			-			1			54			(56	)		6
ABS		101			-			(1	)		124			(106	)		118
State and municipal bonds		-			(1	)		-			-			1			-
Hybrid and redeemable
preferred securities		76			-			15			(1	)		(14	)		76
Equity AFS securities		177			1			(2	)		(13	)		(1	)		162
Trading securities		65			3			8			(26	)		(1	)		49
Derivative investments		(93	)		(27	)		129			21			-			30
Other assets: ⁽⁶⁾
GLB direct embedded derivatives		-			903			-			-			-			903
GLB ceded embedded derivatives		203			(152	)		-			-			-			51
Indexed annuity ceded embedded derivatives		-			-			-			11			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽⁶⁾		(1,139	)		(400	)		-			121			-			(1,418	)
Other liabilities: ⁽⁶⁾
GLB direct embedded derivatives		(371	)		371			-			-			-			-
GLB ceded embedded derivatives		-			(67	)		-			-			-			(67	)
Total, net	$	1,545		$	650		$	347		$	410		$	187		$	3,139

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6).

⁽²⁾Issuances, sales, maturities, settlements, calls, net, includes financial instruments acquired in the Liberty Life transaction as follows: corporate bonds of $67 million and ABS of $17 million.

⁽³⁾Transfers into or out of Level 3 for fixed maturity AFS and trading securities are reported at amortized cost as of the beginning-of-year. For fixed maturity AFS and trading securities, the difference between beginning-of-year amortized cost and beginning-of-year fair value was included in OCI and earnings, respectively, in the prior years.

⁽⁴⁾Transfers into or out of Level 3 for FHLB stock between equity securities and other investments are reported at cost on our Consolidated Balance Sheets.

⁽⁵⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and OTTI are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽⁶⁾Gains (losses) from sales, maturities, settlements and calls are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Schedule Of Investment Holdings Movements



	For the Year Ended December 31, 2019
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	1,170		$	(28	)	$	(78	)	$	(156	)	$	(30	)	$	878
Foreign government bonds		-			-			(25	)		-			-			(25	)
RMBS		21			-			-			-			-			21
CMBS		7			-			-			(2	)		-			5
ABS		646			(8	)		-			(19	)		-			619
Trading securities		872			-			-			(22	)		-			850
Equity securities		50			(33	)		-			-			-			17
Derivative investments		555			(63	)		(331	)		-			-			161
Other assets – indexed annuity ceded
embedded derivatives		56			-			-			(189	)		-			(133	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(591	)		-			-			211			-			(380	)
Total, net	$	2,786		$	(132	)	$	(434	)	$	(177	)	$	(30	)	$	2,013



	For the Year Ended December 31, 2018
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	947		$	(161	)	$	(3	)	$	(277	)	$	(77	)	$	429
U.S. government bonds		-			(5	)		-			-			-			(5	)
RMBS		7			-			-			-			-			7
CMBS		39			-			-			(4	)		-			35
ABS		240			(17	)		-			-			-			223
Trading securities		54			(24	)		-			-			-			30
Equity securities		1			(1	)		-			-			-			-
Derivative investments		365			464			(426	)		-			-			403
Other assets – indexed annuity ceded
embedded derivatives		1,030			-			-			(22	)		-			1,008
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(284	)		-			-			199			-			(85	)
Total, net	$	2,399		$	256		$	(429	)	$	(104	)	$	(77	)	$	2,045

‎



	For the Year Ended December 31, 2017
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	747		$	(200	)	$	(98	)	$	(206	)	$	(144	)	$	99
RMBS		20			-			-			-			-			20
CMBS		55			-			-			(1	)		-			54
ABS		124			-			-			-			-			124
Hybrid and redeemable preferred
securities		-			-			-			(1	)		-			(1	)
Equity AFS securities		18			(31	)		-			-			-			(13	)
Trading securities		2			(27	)		-			(1	)		-			(26	)
Derivative investments		197			234			(410	)		-			-			21
Other assets – indexed annuity ceded
embedded derivatives		11			-			-			-			-			11
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(71	)		-			-			192			-			121
Total, net	$	1,103		$	(24	)	$	(508	)	$	(17	)	$	(144	)	$	410

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held



	For the Years Ended December 31,
	2019			2018			2017
GLB	$	1,015		$	(75	)	$	1,904
Derivative investments		168			90			(266	)
Embedded derivatives:
Indexed annuity and IUL contracts		(97	)		(38	)		(14	)
Total, net⁽¹⁾	$	1,086		$	(23	)	$	1,628

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Components Of The Transfers In And Out Of Level 3

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:



	For the Year Ended December 31, 2019
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	173	$	(222	)	$	(49	)
U.S. government bonds		5		-			5
RMBS		-		(17	)		(17	)
CMBS		-		(7	)		(7	)
ABS		9		(495	)		(486	)
Trading securities		5		(273	)		(268	)
Total, net	$	192	$	(1,014	)	$	(822	)

‎



	For the Year Ended December 31, 2018
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	78	$	(140	)	$	(62	)
RMBS		-		(12	)		(12	)
CMBS		1		(40	)		(39	)
ABS		-		(206	)		(206	)
Equity AFS securities		-		(162	)		(162	)
Trading securities		-		(7	)		(7	)
Equity securities		26		-			26
Total, net	$	105	$	(567	)	$	(462	)


	For the Year Ended December 31, 2017
	Transfers		Transfers
	Into		Out of
	Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	458	$	(88	)	$	370
U.S. government bonds		5		-			5
RMBS		-		(11	)		(11	)
CMBS		3		(59	)		(56	)
ABS		46		(152	)		(106	)
State and municipal bonds		2		(1	)		1
Hybrid and redeemable preferred securities		-		(14	)		(14	)
Equity AFS securities		-		(1	)		(1	)
Trading securities		4		(5	)		(1	)
Total, net	$	518	$	(331	)	$	187

Fair Value Inputs Quantitative Information



	Fair			Valuation	Significant	Assumption or
	Value			Technique	Unobservable Inputs	Input Ranges
Assets
Investments:
Fixed maturity AFS and trading
securities:
Corporate bonds	$	3,006		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	0.1	%	-	6.4	%
Foreign government bonds		52		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	2.1	%	-	2.5	%
ABS		23		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	3.0	%	-	3.0	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	1.4	%	-	1.4	%

Equity securities		21		Discounted cash flow	Liquidity/duration adjustment ⁽¹⁾	4.5	%	-	5.2	%
Other assets:
GLB direct and ceded
embedded derivatives		510		Discounted cash flow	Long-term lapse rate ⁽²⁾	1	%	-	30	%
					Utilization of guaranteed withdrawals ⁽³⁾	85	%	-	100	%
					Claims utilization factor ⁽⁴⁾	60	%	-	100	%
					Premiums utilization factor ⁽⁴⁾	80	%	-	115	%
					NPR ⁽⁵⁾	0.01	%	-	0.27	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
					Volatility ⁽⁷⁾	1	%	-	28	%

Indexed annuity ceded
embedded derivatives		927		Discounted cash flow	Lapse rate ⁽²⁾	1	%	-	9	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
Liabilities
Future contract benefits – indexed
annuity and IUL contracts
embedded derivatives	$	(2,585	)	Discounted cash flow	Lapse rate ⁽²⁾	1	%	-	9	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
Other liabilities – GLB direct
embedded derivatives		(9	)	Discounted cash flow	Long-term lapse rate ⁽²⁾	1	%	-	30	%
					Utilization of guaranteed withdrawals ⁽³⁾	85	%	-	100	%
					Claims utilization factor ⁽⁴⁾	60	%	-	100	%
					Premiums utilization factor ⁽⁴⁾	80	%	-	115	%
					NPR ⁽⁵⁾	0.01	%	-	0.27	%
					Mortality rate ⁽⁶⁾				⁽⁸⁾
					Volatility ⁽⁷⁾	1	%	-	28	%

⁽¹⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽²⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity and IUL contracts represents the lapse rates during the surrender charge period.

⁽³⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁴⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁵⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract.

⁽⁶⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁷⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation.

⁽⁸⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.