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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The carrying values and estimated fair values of our financial instruments (in millions) were as follows:

As of March 31, 2024As of December 31, 2023
Carrying
Value		Fair
Value		Carrying
Value		Fair
Value
Assets
Fixed maturity AFS securities$87,764 $87,764 $88,738 $88,738 
Trading securities2,227 2,227 2,359 2,359 
Equity securities319 319 306 306 
Mortgage loans on real estate19,266 17,658 18,963 17,407 
Derivative investments8,394 8,394 6,474 6,474 
Other investments5,256 5,256 5,015 5,015 
Cash and invested cash4,122 4,122 3,365 3,365 
MRB assets4,878 4,878 3,894 3,894 
Other assets:
Ceded MRBs2 2 2 2 
Indexed annuity ceded embedded derivatives973 973 940 940 
Separate account assets166,225 166,225 158,257 158,257 
Liabilities
Policyholder account balances:
Account balances of certain investment contracts(44,386)(33,752)(44,640)(34,041)
RILA, fixed annuity and IUL contracts(10,896)(10,896)(9,077)(9,077)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives(355)(355)(552)(552)
MRB liabilities(1,266)(1,266)(1,716)(1,716)
Short-term debt(503)(493)(250)(249)
Long-term debt(5,726)(5,058)(5,699)(5,182)
Other liabilities:
Ceded MRBs(360)(360)(239)(239)
Derivative liabilities(186)(186)(356)(356)
Remaining guaranteed interest and similar contracts(397)(397)(411)(411)
Fair Value Option, Disclosures
The fair value and aggregate contractual principal for mortgage loans on real estate where the fair value option was elected (in millions) were as follows:

As of
March 31,		As of
December 31,
20242023
Fair value$289 $288 
Aggregate contractual principal326 326 
Fair Value of Assets and Liabilities on a Recurring Basis
The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:

As of March 31, 2024
Quoted
Prices
in Active
Markets forSignificantSignificant
IdenticalObservableUnobservableTotal
AssetsInputsInputsFair
(Level 1)(Level 2)(Level 3)Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds$– $66,044 $2,489 $68,533 
U.S. government bonds371 20 – 391 
State and municipal bonds– 2,743 – 2,743 
Foreign government bonds– 263 – 263 
RMBS– 1,747 12 1,759 
CMBS– 1,476 8 1,484 
ABS– 10,657 1,692 12,349 
Hybrid and redeemable preferred securities48 143 51 242 
Trading securities– 1,956 271 2,227 
Equity securities12 268 39 319 
Mortgage loans on real estate– – 289 289 
Derivative investments (1)
– 14,584 727 15,311 
Other investments – short-term investments– 217 – 217 
Cash and invested cash– 4,122 – 4,122 
MRB assets– – 4,878 4,878 
Other assets:
Ceded MRBs– – 2 2 
Indexed annuity ceded embedded derivatives– – 973 973 
Separate account assets406 165,819 – 166,225 
Total assets$837 $270,059 $11,431 $282,327 
Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts$– $– $(10,896)$(10,896)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives– 228 (583)(355)
MRB liabilities– – (1,266)(1,266)
Other liabilities:
Ceded MRBs– – (360)(360)
Derivative liabilities (1)
– (6,377)(726)(7,103)
Total liabilities$– $(6,149)$(13,831)$(19,980)
As of December 31, 2023
Quoted
Prices
in Active
Markets forSignificantSignificant
IdenticalObservableUnobservableTotal
AssetsInputsInputsFair
(Level 1)(Level 2)(Level 3)Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds$– $67,160 $2,497 $69,657 
U.S. government bonds374 19 – 393 
State and municipal bonds– 2,785 5 2,790 
Foreign government bonds– 283 – 283 
RMBS– 1,760 13 1,773 
CMBS– 1,416 8 1,424 
ABS– 10,687 1,484 12,171 
Hybrid and redeemable preferred securities46 153 48 247 
Trading securities– 2,075 284 2,359 
Equity securities1 263 42 306 
Mortgage loans on real estate– – 288 288 
Derivative investments (1)
– 10,874 622 11,496 
Other investments – short-term investments– 233 – 233 
Cash and invested cash– 3,365 – 3,365 
MRB assets– – 3,894 3,894 
Other assets:
Ceded MRBs– – 2 2 
Indexed annuity ceded embedded derivatives– – 940 940 
Separate account assets402 157,855 – 158,257 
Total assets$823 $258,928 $10,127 $269,878 
Liabilities
Policyholder account balances – RILA, fixed annuity
and IUL contracts $– $– $(9,077)$(9,077)
Funds withheld reinsurance liabilities – reinsurance-related
embedded derivatives– 237 (789)(552)
MRB liabilities– – (1,716)(1,716)
Other liabilities:
Ceded MRBs– – (239)(239)
Derivative liabilities (1)
– (4,792)(586)(5,378)
Total liabilities$– $(4,555)$(12,407)$(16,962)
(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 following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. 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, 2024
GainsIssuances,Transfers
Items(Losses)Sales,Into or
IncludedinMaturities,Out
BeginninginOCISettlements,ofEnding
FairNet andCalls,Level 3,Fair
ValueIncome
Other (1)
NetNetValue
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds$2,497 $2 $(10)$22$(22)$2,489
State and municipal bonds5 – – –(5)–
RMBS13 – (1)–– 12
CMBS8 – – –– 8
ABS1,484 – (1)2018 1,692
Hybrid and redeemable preferred
securities48 – 3 –– 51
Trading securities284 – – (13)– 271
Equity securities42 (3)– –– 39
Mortgage loans on real estate288 – 1 –– 289
Derivative investments36 12 – 4(51)1
Other assets:
Ceded MRBs (3)
2 – – –– 2
Indexed annuity ceded embedded
derivatives (4)
940 33 – –– 973
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)
(9,077)(1,677)– (142)– (10,896)
Funds withheld reinsurance
liabilities – reinsurance-related
embedded derivatives (4)
(789)206 – –– (583)
Other liabilities – ceded MRBs (3)
(239)(121)– –– (360)
Total, net$(4,458)$(1,548)$(8)$72$(70)$(6,012)
For the Three Months Ended March 31, 2023
GainsIssuances,Transfers
Items(Losses)Sales,Into or
IncludedinMaturities,Out
BeginninginOCISettlements,ofEnding
FairNetandCalls,Level 3,Fair
ValueIncome
Other (1)
NetNetValue
Assets
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds$2,295 $1 $13 $30 $16 $2,355 
State and municipal bonds35 – 1 – – 36 
RMBS1 – – – – 1 
ABS1,117 – 8 168 (193)1,100 
Hybrid and redeemable preferred
securities49 – – (2)12 59 
Trading securities581 4 – (127)– 458 
Equity securities153 (16)– – – 137 
Mortgage loans on real estate487 2 3 (2)– 490 
Derivative investments2 (1)– – – 1 
Other assets:
Ceded MRBs (3)
12 (6)– – – 6 
Indexed annuity ceded embedded
derivatives (4)
525 6 – (226)– 305 
Liabilities
Policyholder account balances –
RILA, fixed annuity and
IUL contracts (4)
(4,783)(719)– (294)– (5,796)
Other liabilities – ceded MRBs (3)
(205)(47)– – – (252)
Total, net$269 $(776)$25 $(453)$(165)$(1,100)

(1) The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).
(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
The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:

For the Three Months Ended March 31, 2024
IssuancesSalesMaturitiesSettlementsCallsTotal
Investments:
Fixed maturity AFS securities:
Corporate bonds$277 $(141)$(2)$(111)$(1)$22 
ABS264 – – (63)– 201 
Trading securities– (2)– (11)– (13)
Mortgage loans on real estate1 (1)– – – – 
Derivative investments7 – (3)– – 4 
Other assets – indexed annuity ceded
embedded derivatives26 – – (26)– – 
Policyholder account balances –
RILA, fixed annuity and
IUL contracts(249)– – 107 – (142)
Total, net$326 $(144)$(5)$(104)$(1)$72 

For the Three Months Ended March 31, 2023
IssuancesSalesMaturitiesSettlementsCallsTotal
Investments:
Fixed maturity AFS securities:
Corporate bonds$141 $(35)$(8)$(68)$– $30 
ABS241 (2)– (71)– 168 
Hybrid and redeemable preferred
securities– – – – (2)(2)
Trading securities– (53)– (74)– (127)
Mortgage loans on real estate1 – – (3)– (2)
Other assets – indexed annuity ceded
embedded derivatives50 – – (276)– (226)
Policyholder account balances –
RILA, fixed annuity and
IUL contracts(300)– – 6 – (294)
Total, net$133 $(90)$(8)$(486)$(2)$(453)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings
The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):

For the Three
Months Ended
March 31,
20242023
Trading securities (1)
$– $6 
Equity securities (1)
(3)(16)
Mortgage loans on real estate (1)
– 2 
Derivative investments (1)
16 (2)
MRBs (2)
1,896 (638)
Funds withheld reinsurance liabilities –
reinsurance-related embedded derivatives 206 – 
Embedded derivatives – indexed annuity
and IUL contracts (1)
241 (153)
Total, net (1)
$2,356 $(801)

(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
The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):
For the Three
Months Ended
March 31,
20242023
Fixed maturity AFS securities:
Corporate bonds$(11)$13 
State and municipal bonds– 1 
ABS(1)8 
Hybrid and redeemable preferred
securities2 – 
Mortgage loans on real estate1 2 
Total, net $(9)$24 
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 Three
Months Ended
March 31, 2024		For the Three
Months Ended
March 31, 2023
TransfersTransfersTransfersTransfers
IntoOut ofIntoOut of
Level 3Level 3TotalLevel 3Level 3Total
Investments:
Fixed maturity AFS securities:
Corporate bonds$22 $(44)$(22)$59 $(43)$16 
State and municipal bonds– (5)(5)– – – 
ABS31 (23)8 – (193)(193)
Hybrid and redeemable preferred
securities– – – 12 – 12 
Derivative investments– (51)(51)– – – 
Total, net $53 $(123)$(70)$71 $(236)$(165)
Fair Value Inputs Quantitative Information
The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of March 31, 2024:

Weighted
FairValuationSignificantAssumption orAverage Input
ValueTechniqueUnobservable InputsInput Ranges
Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds$202 Discounted cash flow
Liquidity/duration adjustment (2)
(0.1)%– 3.8 %2.0 %
ABS11 Discounted cash flow
Liquidity/duration adjustment (2)
1.6 %– 1.6 %1.6 %
CMBS8 Discounted cash flow
Liquidity/duration adjustment (2)
2.0 %— 2.0 %2.0 %
Hybrid and redeemable
preferred securities7 Discounted cash flow
Liquidity/duration adjustment (2)
1.3 %– 1.5 %1.4 %
Equity securities5 Discounted cash flow
Liquidity/duration adjustment (2)
4.5 %– 4.5 %4.5 %
MRB assets 4,878 
Other assets – ceded MRBs2 Discounted cash flow
Lapse (3)
1 %– 30 %
(10)
Utilization of GLB withdrawals (4)
85 %– 100 %94 %
Claims utilization factor (5)
60 %– 100 %
(10)
Premiums utilization factor (5)
80 %– 115 %
(10)
Non-performance risk (6)
0.31 %– 2.03 %1.62 %
Mortality (7)
(9)
(10)
Volatility (8)
1 %– 29 %14.14 %
Other assets – indexed
annuity ceded embedded
derivatives973 Discounted cash flow
Lapse (3)
0%– 9 %
(10)
Mortality (7)
(9)
(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives$(10,803)Discounted cash flow
Lapse (3)
0%– 9 %
(10)
Mortality (7)
(9)
(10)
MRB liabilities(1,266)
Other liabilities – ceded
MRBs(360)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)
0.31 %– 2.03 %1.62 %
Mortality (7)
(9)
(10)
Volatility (8)
1 %– 29 %14.14 %
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, 2023:


Weighted
FairValuationSignificantAssumption orAverage Input
ValueTechniqueUnobservable InputsInput Ranges
Range (1)
Assets
Investments:
Fixed maturity AFS
securities:
Corporate bonds$186 Discounted cash flow
Liquidity/duration adjustment (2)
(0.2)%– 3.7 %2.1 %
State and municipal
bonds5 Discounted cash flow
Liquidity/duration adjustment (2)
0.9 %– 2.2 %2.1 %
CMBS8 Discounted cash flow
Liquidity/duration adjustment (2)
2.3 %– 2.3 %2.3 %
ABS12 Discounted cash flow
Liquidity/duration adjustment (2)
1.8 %– 1.8 %1.8 %
Hybrid and redeemable
preferred securities7 Discounted cash flow
Liquidity/duration adjustment (2)
1.4 %– 1.5 %1.5 %
Equity securities5 Discounted cash flow
Liquidity/duration adjustment (2)
4.5 %– 4.5 %4.5 %
MRB assets 3,894 
Other assets – ceded MRBs2 Discounted cash flow
Lapse (3)
1 %– 30 %
(10)
Utilization of GLB withdrawals (4)
85 %– 100 %94 %
Claims utilization factor (5)
60 %– 100 %
(10)
Premiums utilization factor (5)
80 %– 115 %
(10)
Non-performance risk (6)
0.51 %– 2.13 %1.78 %
Mortality (7)
(9)
(10)
Volatility (8)
1 %– 29 %13.92 %
Other assets – indexed
annuity ceded embedded
derivatives940 Discounted cash flow
Lapse (3)
0 %– 9 %
(10)
Mortality (7)
(9)
(10)
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives$(9,013)Discounted cash flow
Lapse (3)
0 %– 9 %
(10)
Mortality (7)
(9)
(10)
MRB liabilities(1,716)
Other liabilities – ceded
MRBs(239)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)
0.51 %– 2.13 %1.78 %
Mortality (7)
(9)
(10)
Volatility (8)
1 %– 29 %13.92 %

(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 balance 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.