Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of March 31, 2023						As of December 31, 2022
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	101,936		$	101,936		$	99,736		$	99,736
Trading securities		3,266			3,266			3,498			3,498
Equity securities		414			414			427			427
Mortgage loans on real estate		18,327			16,967			18,301			16,553
Derivative investments		4,005			4,005			3,594			3,594
Other investments		3,892			3,892			3,739			3,739
Cash and invested cash		3,766			3,766			3,343			3,343
MRB assets		3,445			3,445			2,807			2,807
Other assets:
Ceded MRBs		6			6			12			12
Reinsurance-related embedded derivatives		367			367			416			416
Indexed annuity ceded embedded derivatives		305			305			525			525
Separate account assets		148,421			148,421			143,536			143,536

Liabilities
Policyholder account balances:
Account balances of certain investment contracts		(44,184	)		(32,790	)		(43,578	)		(34,274	)
Indexed annuity and IUL contracts embedded derivatives		(5,796	)		(5,796	)		(4,783	)		(4,783	)
MRB liabilities		(1,976	)		(1,976	)		(2,078	)		(2,078	)
Short-term debt		(500	)		(498	)		(500	)		(496	)
Long-term debt		(5,974	)		(4,880	)		(5,955	)		(5,005	)
Other liabilities:
Ceded MRBs		(252	)		(252	)		(205	)		(205	)
Derivative liabilities		(112	)		(112	)		(210	)		(210	)
Remaining guaranteed interest and similar contracts		(532	)		(532	)		(574	)		(574	)

Schedule of Mortgage Loans With Election Of Fair Value Option


	As of		As of
	March 31,		December 31,
	2023		2022
Fair value	$	490	$	487
Aggregate contractual principal		515		514

Fair Value Of Assets And Liabilities On A Recurring Basis



		As of March 31, 2023
		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		$	-		$	78,093			$	2,355		$	80,448
U.S. government bonds			360			23				-			383
State and municipal bonds			-			5,221				36			5,257
Foreign government bonds			-			309				-			309
RMBS			-			2,049				1			2,050
CMBS			-			1,671				-			1,671
ABS			-			10,358				1,100			11,458
Hybrid and redeemable preferred securities			45			256				59			360
Trading securities			-			2,808				458			3,266
Equity securities			-			277				137			414
Mortgage loans on real estate			-			-				490			490
Derivative investments ⁽¹⁾			-			7,246				480			7,726
Other investments – short-term investments			-			78				-			78
Cash and invested cash			-			3,766				-			3,766
MRB assets			-			-				3,445			3,445
Other assets:
Ceded MRBs			-			-				6			6
Reinsurance-related embedded derivatives			-			367				-			367
Indexed annuity ceded embedded derivatives			-			-				305			305
Separate account assets			407			148,014				-			148,421
Total assets		$	812		$	260,536			$	8,872		$	270,220

Liabilities
Policyholder account balances – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(5,796	)	$	(5,796	)
MRB liabilities			-			-				(1,976	)		(1,976	)
Other liabilities:
Ceded MRBs			-			-				(252	)		(252	)
Derivative liabilities⁽¹⁾			-			(3,354	)			(479	)		(3,833	)
Total liabilities		$	-		$	(3,354	)		$	(8,503	)	$	(11,857	)

‎



		As of December 31, 2022
		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		$	-		$	76,728			$	2,295		$	79,023
U.S. government bonds			359			20				-			379
State and municipal bonds			-			5,035				35			5,070
Foreign government bonds			-			318				-			318
RMBS			-			2,008				1			2,009
CMBS			-			1,674				-			1,674
ABS			-			9,787				1,117			10,904
Hybrid and redeemable preferred securities			41			269				49			359
Trading securities			-			2,917				581			3,498
Equity securities			-			274				153			427
Mortgage loans on real estate			-			-				487			487
Derivative investments ⁽¹⁾			-			6,048				605			6,653
Other investments – short-term investments			-			75				-			75
Cash and invested cash			-			3,343				-			3,343
MRB assets			-			-				2,807			2,807
Other assets:
Ceded MRBs			-			-				12			12
Reinsurance-related embedded derivatives			-			416				-			416
Indexed annuity ceded embedded derivatives			-			-				525			525
Separate account assets			412			143,124				-			143,536
Total assets		$	812		$	252,036			$	8,667		$	261,515

Liabilities
Policyholder account balances – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(4,783	)	$	(4,783	)
MRB liabilities			-			-				(2,078	)		(2,078	)
Other liabilities:
Ceded MRBs			-			-				(205	)		(205	)
Derivative liabilities⁽¹⁾			-			(2,666	)			(603	)		(3,269	)
Total liabilities		$	-		$	(2,666	)		$	(7,669	)	$	(10,335	)

⁽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

The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 8.



	For the Three Months Ended March 31, 2023
							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			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	2,295		$	1		$	13		$	30		$	16		$	2,355
State and municipal bonds		35			-			1			-			-			36
RMBS		1			-			-			-			-			1
ABS		1,117			-			8			168			(193	)		1,100
Hybrid and redeemable preferred
securities		49			-			-			(2	)		12			59
Trading securities		581			4			-			(127	)		-			458
Equity securities		153			(16	)		-			-			-			137
Mortgage loans on real estate		487			2			3			(2	)		-			490
Derivative investments		2			(1	)		-			-			-			1
Other assets:
Ceded MRBs ⁽³⁾		12			(6	)		-			-			-			6
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		525			6			-			(226	)		-			305
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(4,783	)		(719	)		-			(294	)		-			(5,796	)
Other liabilities – ceded MRBs ⁽³⁾		(205	)		(47	)		-			-			-			(252	)
Total, net	$	269		$	(776	)	$	25		$	(453	)	$	(165	)	$	(1,100	)

‎



	For the Three Months Ended March 31, 2022
							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			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	5,720		$	1		$	(353	)	$	358		$	134		$	5,860
Foreign government bonds		41			-			(1	)		-			-			40
RMBS		4			-			-			12			(3	)		13
CMBS		-			-			-			17			-			17
ABS		870			-			(27	)		187			(42	)		988
Hybrid and redeemable preferred
securities		93			-			5			-			-			98
Trading securities		828			(29	)		-			2			(4	)		797
Equity securities		95			17			-			(8	)		-			104
Mortgage loans on real estate		739			(3	)		(1	)		(198	)		-			537
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets:
Ceded MRBs ⁽³⁾		95			(74	)		-			-			-			21
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		528			(53	)		-			18			-			493
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(6,131	)		559			-			(2	)		-			(5,574	)
Other liabilities – ceded MRBs ⁽³⁾		(17	)		(34	)		-			-			-			(51	)
Total, net	$	2,886		$	387		$	(383	)	$	386		$	70		$	3,346

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

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on the Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

⁽⁴⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

‎

Schedule Of Investment Holdings Movements



	For the Three Months Ended March 31, 2023
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	141		$	(35	)	$	(8	)	$	(68	)	$	-		$	30
ABS		241			(2	)		-			(71	)		-			168
Hybrid and redeemable preferred
securities		-			-			-			-			(2	)		(2	)
Trading securities		-			(53	)		-			(74	)		-			(127	)
Mortgage loans on real estate		1			-			-			(3	)		-			(2	)
Other assets – indexed annuity ceded
embedded derivatives		50			-			-			(276	)		-			(226	)
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(300	)		-			-			6			-			(294	)
Total, net	$	133		$	(90	)	$	(8	)	$	(486	)	$	(2	)	$	(453	)



	For the Three Months Ended March 31, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	427		$	-		$	(21	)	$	(43	)	$	(5	)	$	358
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		250			-			-			(56	)		(7	)		187
Trading securities		179			(132	)		-			(45	)		-			2
Equity securities		-			(8	)		-			-			-			(8	)
Mortgage loans on real estate		3			-			-			(201	)		-			(198	)
Other assets – indexed annuity ceded
embedded derivatives		16			-			-			2			-			18
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(128	)		-			-			126			-			(2	)
Total, net	$	776		$	(140	)	$	(21	)	$	(217	)	$	(12	)	$	386

‎

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



	For the Three
	Months Ended
	March 31,
	2023			2022
Trading securities ⁽¹⁾	$	6		$	(30	)
Equity securities ⁽¹⁾		(16	)		18
Mortgage loans on real estate ⁽¹⁾		2			(3	)
Derivative investments⁽¹⁾		(2	)		2
MRBs ⁽²⁾		(638	)		1,351
Embedded derivatives – indexed annuity
and IUL contracts ⁽¹⁾		(153	)		84
Total, net	$	(801	)	$	1,422

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

⁽²⁾Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI



	For the Three
	Months Ended
	March 31,
	2023		2022
Fixed maturity AFS securities:
Corporate bonds	$	13	$	(356	)
State and municipal bonds		1		-
Foreign government bonds		-		(2	)
ABS		8		(27	)
Hybrid and redeemable preferred
securities		-		5
Mortgage loans on real estate		2		-
Total, net	$	24	$	(380	)

Components Of The Transfers In And Out Of Level 3



	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2023								March 31, 2022
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	59	$	(43	)	$	16		$	196	$	(62	)	$	134
RMBS		-		-			-			-		(3	)		(3	)
ABS		-		(193	)		(193	)		-		(42	)		(42	)
Hybrid and redeemable preferred
securities		12		-			12			-		-			-
Trading securities		-		-			-			-		(4	)		(4	)
Derivative investments		-		-			-			-		(15	)		(15	)
Total, net	$	71	$	(236	)	$	(165	)	$	196	$	(126	)	$	70

Fair Value Inputs Quantitative Information



											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range ⁽¹⁾
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	228		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	(0.2)	%	-	4.5	%	2.4	%
State and municipal
bonds		36		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.5	%	-	2.5	%	2.5	%
ABS		13		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	2.5	%	-	2.5	%	2.5	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.2	%	-	1.2	%	1.2	%
Equity securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	4.5	%	-	4.5	%	4.5	%

MRB assets		3,445
Other assets – ceded MRBs		6		Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.79	%	-	3.27	%	2.59	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.82	%
Other assets – indexed
annuity ceded embedded
derivatives		305		Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(5,788	)	Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾

MRB liabilities		(1,976	)
Other liabilities – ceded
MRBs		(252	)	Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.79	%	-	3.27	%	2.59	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.82	%

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2022:



											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range ⁽¹⁾
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	204		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	(0.2)	%	-	4.2	%	2.1	%
State and municipal
bonds		35		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.2	%	-	2.4	%	2.3	%
ABS		15		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.5	%	-	1.5	%	1.5	%
Equity securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	4.5	%	-	4.5	%	4.5	%

MRB assets		2,807
Other assets – ceded MRBs		12		Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals ⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.35	%	-	2.41	%	1.73	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.47	%

Other assets – indexed
annuity ceded embedded
derivatives		525		Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(4,845	)	Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾

MRB liabilities		(2,078	)
Other liabilities – ceded
MRBs		(205	)	Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals ⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.35	%	-	2.41	%	1.73	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.47	%

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾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.

⁽³⁾The lapse input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapses during the surrender charge period.

⁽⁴⁾The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the MRB calculation to estimate the impact of inefficient GLB withdrawal behavior, including taking less than or more than the maximum GLB withdrawal.

⁽⁶⁾The non-performance risk input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The non-performance risk input was weighted by the absolute value of the sensitivity of the reserve to the non-performance risk assumption.

⁽⁷⁾The mortality 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.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse, utilization factors or mortality.