Fair Value (Tables)

3 Months Ended

Mar. 31, 2025

The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented in the tables below. Investments that do not have a readily determinable fair value and are measured at net asset value (or equivalent) as a practical expedient to estimated fair value are excluded from the fair value hierarchy.


	March 31, 2025
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,544	$	568	$	37,112
Foreign corporate	—		11,464		98		11,562
RMBS	—		7,500		33		7,533
U.S. government and agency	2,557		4,057		—		6,614
ABS	—		5,820		302		6,122
CMBS	—		6,347		5		6,352
State and political subdivision	—		3,469		—		3,469
Foreign government	—		943		22		965
Total fixed maturity securities	2,557		76,144		1,028		79,729
Trading securities	66		299		—		365
Equity securities	11		6		14		31
Short-term investments	705		184		2		891
Derivative assets: (1)
Interest rate	—		260		—		260
Foreign currency exchange rate	—		517		7		524
Credit	—		14		2		16
Equity market	1		3,345		—		3,346
Total derivative assets	1		4,136		9		4,146
Embedded derivatives on index-linked annuities (2)	—		—		38		38
Market risk benefit assets	—		—		914		914
Separate account assets	3		76,254		—		76,257
Total assets	$	3,343	$	157,023	$	2,005	$	162,371
Liabilities
Market risk benefit liabilities	$	—	$	—	$	9,182	$	9,182
Derivative liabilities: (1)
Interest rate	—		2,069		—		2,069
Foreign currency exchange rate	—		28		—		28

Equity market	—		3,189		—		3,189
Total derivative liabilities	—		5,286		—		5,286
Embedded derivatives on index-linked annuities (2)	—		—		9,963		9,963

Total liabilities	$	—	$	5,286	$	19,145	$	24,431


	December 31, 2024
	Fair Value Hierarchy						Total Estimated Fair Value
	Level 1		Level 2		Level 3
	(In millions)
Assets
Fixed maturity securities:
U.S. corporate	$	—	$	36,041	$	696	$	36,737
Foreign corporate	—		11,366		396		11,762
RMBS	—		7,213		17		7,230
U.S. government and agency	2,514		3,946		—		6,460
ABS	—		5,984		322		6,306
CMBS	—		6,266		26		6,292
State and political subdivision	—		3,382		—		3,382
Foreign government	—		939		21		960
Total fixed maturity securities	2,514		75,137		1,478		79,129
Trading securities	—		—		—		—
Equity securities	11		6		15		32
Short-term investments	916		239		2		1,157
Derivative assets: (1)
Interest rate	—		287		—		287
Foreign currency exchange rate	—		540		7		547
Credit	—		17		2		19
Equity market	—		3,265		—		3,265
Total derivative assets	—		4,109		9		4,118
Embedded derivatives on index-linked annuities (2)	—		—		47		47
Market risk benefit assets	—		—		1,092		1,092
Separate account assets	3		79,003		—		79,006
Total assets	$	3,444	$	158,494	$	2,643	$	164,581
Liabilities
Market risk benefit liabilities	$	—	$	—	$	8,346	$	8,346
Derivative liabilities: (1)
Interest rate	—		2,735		—		2,735
Foreign currency exchange rate	—		25		—		25

Equity market	1		2,487		—		2,488
Total derivative liabilities	1		5,247		—		5,248
Embedded derivatives on index-linked annuities (2)	—		—		11,540		11,540
Total liabilities	$	1	$	5,247	$	19,886	$	25,134

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(1)Derivative assets are reported in other invested assets and derivative liabilities are reported in other liabilities. The amounts are presented gross in the tables above to reflect the presentation on the consolidated balance sheets.

(2)Embedded derivative assets on index-linked annuities are reported in premiums and other receivables. Embedded derivative liabilities on index-linked annuities are reported in policyholder account balances.

Fair Value Measurement Inputs and Valuation Techniques

Certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were as follows at:


					March 31, 2025			December 31, 2024			Impact of Increase in Input on Estimated Fair Value
	Valuation Techniques		Significant Unobservable Inputs		Range			Range
Market Risk Benefits
Variable annuity guaranteed minimum benefits	•	Discounted cash flows	•	Mortality rates	0.04%	-	12.90%	0.04%	-	12.90%	Decrease (1)
			•	Lapse rates	1.00%	-	20.20%	1.00%	-	20.20%	Decrease (2)
			•	Utilization rates	0.00%	-	25.00%	0.00%	-	25.00%	Increase (3)
			•	Withdrawal rates	0.00%	-	10.00%	0.00%	-	10.00%	(4)
			•	Long-term equity volatilities	12.25%	-	22.89%	12.22%	-	37.04%	Increase (5)
			•	Nonperformance risk spread	0.45%	-	1.48%	0.20%	-	1.19%	Decrease (6)
Embedded Derivatives
Registered index-linked annuity crediting rates	•	Option pricing techniques	•	Mortality rates	0.03%	-	7.86%	0.03%	-	7.86%	Decrease (1)
			•	Lapse rates	1.00%	-	62.30%	1.00%	-	62.30%	Decrease (2)

			•	Withdrawal rates	0.50%	-	13.00%	0.50%	-	13.00%	(4)

			•	Nonperformance risk spread	0.21%	-	1.75%	0.30%	-	1.63%	Decrease (6)

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(1)Mortality rates vary by age and by demographic characteristics such as gender. The range shown reflects the mortality rate for policyholders between 35 and 90 years old. Mortality rate assumptions are set based on company experience and include an assumption for mortality improvement.

(2)The lapse rate range reflects base lapse rates for major product categories for duration 1-20. Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. For variable annuity guarantees, a dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in-the-money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies.

(3)The utilization rate assumption for variable annuity guarantees estimates the percentage of contract holders with a guaranteed minimum income benefit (“GMIB”) or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible in a given year. The range shown represents the floor and cap of the GMIB dynamic election rates across varying levels of in-the-money. For lifetime withdrawal guarantee riders, the assumption is that everyone will begin withdrawals once account value reaches zero which is equivalent to a 100% utilization rate. Utilization rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder.

(4)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For variable annuity guaranteed minimum withdrawal benefits, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For variable annuity guaranteed minimum accumulation benefits and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.

(5)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing MRBs.

(6)Nonperformance risk spread varies by duration. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the MRB or embedded derivative.

Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation

The changes in assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (excluding MRBs disclosed in Note 4) were summarized as follows:


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Fixed Maturity Securities
	Corporate (1)		Structured Securities		Foreign Government		Equity Securities		Short-term Investments		Net Derivatives (2)		Embedded Derivatives on Index-Linked Annuities
	(In millions)
Three Months Ended March 31, 2025
Balance, beginning of period	$	1,092	$	365	$	21	$	15	$	2	$	9	$	(11,493)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(8)		—		—		(1)		—		—		1,177
Total realized/unrealized gains (losses) included in AOCI	8		(1)		1		—		—		—		—
Purchases (5)	43		69		—		—		—		—		—
Sales (5)	(27)		(32)		—		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		391
Transfers into Level 3 (6)	4		—		—		—		—		—		—
Transfers out of Level 3 (6)	(446)		(61)		—		—		—		—		—
Balance, end of period	$	666	$	340	$	22	$	14	$	2	$	9	$	(9,925)
Three Months Ended March 31, 2024
Balance, beginning of period	$	1,320	$	380	$	36	$	25	$	—	$	18	$	(8,186)
Total realized/unrealized gains (losses) included in net income (loss) (3) (4)	(5)		—		—		—		—		(3)		(1,886)
Total realized/unrealized gains (losses) included in AOCI	(8)		—		—		—		—		—		—
Purchases (5)	37		147		—		—		—		2		—
Sales (5)	(28)		(5)		—		—		—		—		—
Issuances (5)	—		—		—		—		—		—		—
Settlements (5)	—		—		—		—		—		—		131
Transfers into Level 3 (6)	15		—		—		—		—		—		—
Transfers out of Level 3 (6)	(64)		(40)		(15)		—		—		(6)		—
Balance, end of period	$	1,267	$	482	$	21	$	25	$	—	$	11	$	(9,941)
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2025 (7)	$	24	$	—	$	—	$	(1)	$	—	$	—	$	950
Changes in unrealized gains (losses) included in OCI for the instruments still held as of March 31, 2025 (7)	$	(19)	$	(2)	$	1	$	—	$	—	$	—	$	—
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at March 31, 2024 (7)	$	(3)	$	—	$	—	$	—	$	—	$	(3)	$	(2,040)
Changes in unrealized gains (losses) included in OCI for the instruments still held as of March 31, 2024 (7)	$	(19)	$	(2)	$	—	$	—	$	—	$	—	$	—

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(1)Comprised of U.S. and foreign corporate securities.

(2)Freestanding derivative assets and liabilities are reported net for purposes of the rollforward.

(3)Amortization of premium/accretion of discount is included in net investment income. Changes in the allowance for credit losses and direct write-offs are charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

(4)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.

(5)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.

(6)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out of Level 3 in the same period are excluded from the rollforward.

(7)Changes in unrealized gains (losses) included in net income (loss) for fixed maturities are reported in either net investment income or net investment gains (losses). Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).

Fair Value of Financial Instruments Carried at Other Than Fair Value

The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:


	March 31, 2025
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	23,021	$	—	$	—	$	21,524	$	21,524
Policy loans	$	1,038	$	—	$	525	$	539	$	1,064
Other invested assets	$	238	$	—	$	223	$	15	$	238
Premiums, reinsurance and other receivables	$	8,561	$	—	$	172	$	9,244	$	9,416
Liabilities
Policyholder account balances	$	30,754	$	—	$	—	$	30,457	$	30,457
Long-term debt	$	833	$	—	$	22	$	752	$	774
Other liabilities	$	1,431	$	—	$	729	$	702	$	1,431
Separate account liabilities	$	1,147	$	—	$	1,147	$	—	$	1,147


	December 31, 2024
			Fair Value Hierarchy
	Carrying Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
	(In millions)
Assets
Mortgage loans	$	23,254	$	—	$	—	$	21,343	$	21,343
Policy loans	$	1,626	$	—	$	1,123	$	523	$	1,646
Other invested assets	$	237	$	—	$	222	$	15	$	237
Premiums, reinsurance and other receivables	$	8,394	$	—	$	43	$	9,102	$	9,145
Liabilities
Policyholder account balances	$	31,830	$	—	$	—	$	31,467	$	31,467
Long-term debt	$	833	$	—	$	23	$	762	$	785
Other liabilities	$	1,360	$	—	$	648	$	712	$	1,360
Separate account liabilities	$	1,244	$	—	$	1,244	$	—	$	1,244

- 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.

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