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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the balances of assets and liabilities reported at fair value on a recurring basis, as of the dates indicated.


	June 30, 2024
	Level 1		Level 2		Level 3		Netting (1)		Total
	(in millions)
Total Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	504	$	—	$	—	$	504
Obligations of U.S. states and their political subdivisions	—		116		—		—		116
Foreign government bonds	—		1		—		—		1
U.S. corporate public securities	—		2,779		—		—		2,779
U.S. corporate private securities	—		145		269		—		414
Foreign corporate public securities	—		256		—		—		256
Foreign corporate private securities	—		30		56		—		86
Asset-backed securities (2)	—		787		275		—		1,062
Commercial mortgage-backed securities	—		12		—		—		12
Residential mortgage-backed securities	—		137		5		—		142
Total fixed maturity securities	—		4,767		605		—		5,372
Mortgage loans (3)	—		—		382		—		382
Short-term investments	—		22		—		—		22
Cash and cash equivalents	379		—		—		—		379
Other invested assets - derivatives	1		826		—		(545)		282
Deposit asset	—		—		404		—		404
Reinsurance recoverables	—		—		151		—		151

Subtotal excluding separate account assets	380		5,615		1,542		(545)		6,992
Separate account assets	—		23,675		—		—		23,675
Total assets	$	380	$	29,290	$	1,542	$	(545)	$	30,667
Liabilities
Insurance liabilities	$	—	$	—	$	4,386	$	—	$	4,386
Other liabilities - derivatives	8		1,051		—		(911)		148
Net modified coinsurance payable	—		—		128		—		128
Separate account liabilities	—		23,675		—		—		23,675
Total liabilities	$	8	$	24,726	$	4,514	$	(911)	$	28,337

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of June 30, 2024, the aggregate fair value of mortgage loans was lower than the aggregate unpaid principal by $2 million.

Excluded from the above chart are private equity funds, which are classified as other invested assets on the Consolidated Statements of Financial Position, and certain fixed maturity securities, for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At June 30, 2024 the fair values of these private equity funds and fixed maturity securities were $29 million and $10 million, respectively.


	June 30, 2024
	Level 1		Level 2		Level 3		Netting (1)		Total
	(in millions)
Retained Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	429	$	—	$	—	$	429
Obligations of U.S. states and their political subdivisions	—		116		—		—		116

U.S. corporate public securities	—		1,992		—		—		1,992
U.S. corporate private securities	—		—		267		—		267
Foreign corporate public securities	—		121		—		—		121
Foreign corporate private securities	—		—		56		—		56
Asset-backed securities (2)	—		733		259		—		992
Commercial mortgage-backed securities	—		12		—		—		12
Residential mortgage-backed securities	—		19		5		—		24
Total fixed maturity securities	—		3,422		587		—		4,009
Mortgage loans (3)	—		—		382		—		382
Short-term investments	—		2		—		—		2
Cash and cash equivalents	294		—		—		—		294
Other invested assets - derivatives	1		532		—		(507)		26
Subtotal excluding separate account assets	295		3,956		969		(507)		4,713
Separate account assets	—		21,598		—		—		21,598
Total assets	$	295	$	25,554	$	969	$	(507)	$	26,311
Liabilities
Insurance liabilities	$	—			$	2,233	$	—	$	2,233
Other liabilities - derivatives	8		1,008		—		(873)		143
Separate account liabilities	—		21,598		—		—		21,598
Total liabilities	$	8	$	22,606	$	2,233	$	(873)	$	23,974

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of June 30, 2024, the aggregate fair value of mortgage loans was lower than the aggregate unpaid principal by $2 million.


	June 30, 2024
	Level 1		Level 2		Level 3		Netting (1)		Total
	(in millions)
Ceded Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	75	$	—	$	—	$	75

Foreign government bonds	—		1		—		—		1
U.S. corporate public securities	—		787		—		—		787
U.S. corporate private securities	—		145		2		—		147
Foreign corporate public securities	—		135		—		—		135
Foreign corporate private securities	—		30		—		—		30
Asset-backed securities(2)	—		54		16		—		70

Residential mortgage-backed securities	—		118		—		—		118
Total fixed maturity securities	—		1,345		18		—		1,363

Short-term investments	—		20		—		—		20
Cash and cash equivalents	85		—		—		—		85
Other invested assets - derivatives	—		294		—		(38)		256
Deposit asset	—		—		404		—		404
Reinsurance recoverables	—		—		151		—		151

Subtotal excluding separate account assets	85		1,659		573		(38)		2,279
Separate account assets	—		2,077		—		—		2,077
Total assets	$	85	$	3,736	$	573	$	(38)	$	4,356
Liabilities
Insurance liabilities	$	—	$	—	$	2,153	$	—	$	2,153
Other liabilities - derivatives	—		43		—		(38)		5
Net modified coinsurance payable	—		—		128		—		128
Separate account liabilities	—		2,077		—		—		2,077
Total liabilities	$	—	$	2,120	$	2,281	$	(38)	$	4,363

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.


	December 31, 2023
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Total Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	581	$	—	$	—	$	581
Obligations of U.S. states and their political subdivisions	—		129		—		—		129
Foreign government bonds	—		1		—		—		1
U.S. corporate public securities	—		2,762		—		—		2,762
U.S. corporate private securities	—		146		245		—		391
Foreign corporate public securities	—		150		—		—		150
Foreign corporate private securities	—		31		57		—		88
Asset-backed securities(2)	—		706		246		—		952
Commercial mortgage-backed securities	—		12		—		—		12
Residential mortgage-backed securities	—		131		5		—		136
Total fixed maturity securities	—		4,649		553		—		5,202

Mortgage loans (3)	—		—		437		—		437
Short-term investments	—		17		4		—		21
Cash and cash equivalents	940		—		—		—		940
Other invested assets - derivatives	—		811		—		(694)		117
Deposit asset	—		—		438		—		438
Reinsurance recoverables	—		—		206		—		206
Subtotal excluding separate account assets	940		5,477		1,638		(694)		7,361
Separate account assets	—		23,870		—		—		23,870
Total assets	$	940	$	29,347	$	1,638	$	(694)	$	31,231
Liabilities

Insurance liabilities	—		—		5,003		—		5,003
Other liabilities - derivatives	71		1,230		—		(1,207)		94
Net modified coinsurance payable	—		—		78		—		78
Separate account liabilities	—		23,870		—		—		23,870
Total liabilities	$	71	$	25,100	$	5,081	$	(1,207)	$	29,045

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of December 31, 2023, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage loans was de minimis.

Excluded from the above chart are private equity funds, which are classified as other invested assets on the Consolidated Statements of Financial Position, and certain fixed maturity securities, for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2023 the fair values of these private equity funds and fixed maturity securities were $24 million and $8 million, respectively.


	December 31, 2023
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Retained Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	506	$	—	$	—	$	506
Obligations of U.S. states and their political subdivisions	—		129		—		—		129

U.S. corporate public securities	—		2,099		—		—		2,099
U.S. corporate private securities	—		—		244		—		244
Foreign corporate public securities	—		124		—		—		124
Foreign corporate private securities	—		—		56		—		56
Asset-backed securities(2)	—		706		246		—		952
Commercial mortgage-backed securities	—		12		—		—		12
Residential mortgage-backed securities	—		23		5		—		28
Total fixed maturity securities	$	—	$	3,599	$	551	$	—	$	4,150
Mortgage loans (3)	—		—		437		—		437
Cash and cash equivalents	534		—		—		—		534
Other invested assets	—		638		—		(638)		—
Subtotal excluding separate account assets	534		4,237		988		(638)		5,121
Separate account assets	—		21,800		—		—		21,800
Total assets	$	534	$	26,037	$	988	$	(638)	$	26,921
Liabilities
Insurance liabilities	—		—		2,835		—		2,835
Other liabilities - derivatives	71		1,174		—		(1,151)		94
Separate account liabilities	—		21,800		—		—		21,800
Total liabilities	$	71	$	22,974	$	2,835	$	(1,151)	$	24,729

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

(2)Includes credit-tranched securities collateralized by syndicated bank loans, sub-prime mortgages, auto loans, credit cards, education loans and other asset types.

(3)As of December 31, 2023, the difference between the aggregate fair value and the aggregate unpaid principal of mortgage loans was de minimis.

Excluded from the above chart are private equity funds, which are classified as other invested assets on the Consolidated Statements of Financial Position, and certain fixed maturity securities, for which fair value is measured at net asset value (“NAV”) per share (or its equivalent) as a practical expedient. At December 31, 2023 the fair values of these private equity funds and fixed maturity securities were $24 million and $8 million, respectively.


	December 31, 2023
	Level 1		Level 2		Level 3		Netting(1)		Total
	(in millions)
Ceded Business
Assets
Fixed maturity securities
U.S Treasury securities and obligations of U.S. government authorities and agencies	$	—	$	75	$	—	$	—	$	75
Foreign government bonds	—		1		—		—		1
U.S. corporate public securities	—		663		—		—		663
U.S. corporate private securities	—		146		1		—		147
Foreign corporate public securities	—		26		—		—		26
Foreign corporate private securities	—		31		1		—		32
Residential mortgage-backed securities	—		108		—		—		108
Total fixed maturity securities	$	—	$	1,050	$	2	$	—	$	1,052
Short-term investments	—		17		4		—		21
Cash and cash equivalents	406		—		—		—		406
Other invested assets - derivatives	—		173		—		(56)		117
Deposit asset	—		—		438		—		438
Reinsurance recoverables	—		—		206		—		206
Subtotal excluding separate account assets	406		1,240		650		(56)		2,240
Separate account assets	—		2,070		—		—		2,070
Total assets	$	406	$	3,310	$	650	$	(56)	$	4,310
Liabilities
Insurance liabilities	—		—		2,168		—		2,168
Other liabilities - derivatives	—		56		—		(56)		—
Net modified coinsurance payable	—		—		78		—		78
Separate account liabilities	—		2,070		—				2,070
Total liabilities	$	—	$	2,126	$	2,246	$	(56)	$	4,316

(1)“Netting” amounts represent offsetting considerations as disclosed in Note 6.

Policyholder benefits and changes in fair value of insurance liabilities includes the following changes in fair value of the assets and liabilities for which we have elected the fair value option:


	June 30, 2024						December 31, 2023
	Retained Business		Ceded Business		Total		Retained Business		Ceded Business		Total
	(in millions)
Assets:
Reinsurance recoverables	$	—	$	(55)	$	(55)	$	—	$	(29)	$	(29)
Modified coinsurance receivable	—		73		73		—		(238)		(238)
Deposit asset	—		(34)		(34)		—		(169)		(169)
Liabilities:
Insurance liabilities	$	(602)	$	(15)	$	(617)	$	(106)	$	(437)	$	(543)

Changes in insurance liabilities attributable to the Company's own-credit risk are recorded in other comprehensive income (loss). Changes in the modified coinsurance payable are reported in Policyholder benefits and changes in fair value of insurance liabilities, however, they are not included in the above chart as they relate to the investment portfolio within the modified coinsurance agreement.

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement


	June 30, 2024
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)
	(in millions)
Assets:
Retained business
Fixed maturity securities
U.S. corporate private securities	$	226	Discounted cash flow	Discount rate	5.09	%	10.36	%	7.15	%	Decrease

Foreign corporate private securities	35		Discounted cash flow	Discount rate	4.82	%	6.85	%	5.83	%	Decrease

Asset-backed securities	102		Discounted cash flow	Discount rate	6.66	%	12.70	%	8.22	%	Decrease
	132		Trade price	Trade price	N/A		N/A		N/A		Increase
Total asset-backed securities	234

Mortgage loans
Residential mortgage loans	305		Level yield	Market yield	5.39	%	10.22	%	7.35	%	Decrease
Commercial mortgage loans	77		Discounted cash flow	Discount rate	6.43	%	7.66	%	7.30	%	Decrease
Total Mortgage loans	382

Ceded business
Deposit asset	404		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	151		Fair values are determined using the same unobservable inputs as insurance liabilities.


Liabilities:
Insurance liabilities
Retained business	$	2,233	Discounted cash flow	Equity volatility curve (2)	15	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	2.06	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

Ceded business	2,153		Discounted cash flow	Equity volatility curve (2)	15	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	1.83	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

Net modified coinsurance payable	128		Fair values are determined using the same unobservable inputs as insurance liabilities.


	December 31, 2023
	Fair Value		Valuation Techniques	Unobservable Inputs	Minimum		Maximum		Weighted Average		Impact of Increase in Input on Fair Value(1)
	(in millions)
Assets:
Retained business
Fixed maturity securities
U.S. corporate private securities	$	203	Discounted cash flow	Discount rate	5.19	%	9.36	%	6.93	%	Decrease
Foreign corporate private securities	36		Discounted cash flow	Discount rate	4.65	%	6.78	%	5.72	%	Decrease
Asset-backed securities	107		Discounted cash flow	Discount rate	6.37	%	12.17	%	7.96	%	Decrease
	113		Trade price	Trade price	N/A		N/A		N/A		Increase
	220
Mortgage loans
Residential mortgage loans	361		Level yield	Market yield	6.43	%	11.61	%	7.94	%	Decrease
Commercial mortgage loans	76		Discounted cash flow	Discount rate	5.87	%	7.15	%	6.72	%	Decrease
Total Mortgage loans	437
Ceded business
Deposit asset	438		Fair values are determined using the same unobservable inputs as insurance liabilities.
Reinsurance recoverables	206		Fair values are determined using the same unobservable inputs as insurance liabilities.

Liabilities:
Retained business
Insurance liabilities	$	2,835	Discounted cash flow	Equity volatility curve (2)	15	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	1.94	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease
Ceded business
Insurance liabilities	$	2,168	Discounted cash flow	Equity volatility curve (2)	15	%	25	%			Increase
				Lapse rate(3)	0.65	%	13	%			Decrease
				Spread over risk free (4)	0.00	%	1.73	%			Decrease
				Utilization rate(5)	87.5	%	100	%			Increase
				Withdrawal rate (6)	See table footnote (6) below.
				Mortality rate(7)	0	%	16	%			Decrease

Net modified coinsurance payable	78		Fair values are determined using the same unobservable inputs as insurance liabilities.

(1)Conversely, the impact of a decrease in input would have the opposite impact on fair value as that presented in the table.

(2) The equity volatility curve assumption is based on 1 year and 2 year index-specific at-the-money implied volatilities grading to 10 year total variance. Increased volatility increases the fair value of the liability.

(3) Lapse rates for contracts with living benefit guarantees are adjusted at the contract level based on the in-the-moneyness of the living benefit and reflect other factors, such as the applicability of any surrender charges. Lapse rates are reduced when contracts are more in-the-money. Lapse rates for contracts with index-linked crediting guarantees may be adjusted at the contract level based on the applicability of any surrender charges, product type, and market related factors such as interest rates. Lapse rates are also generally assumed to be lower for the period where surrender charges apply.

(4) The spread over the risk-free rate swap curve represents the premium added to the proxy for the risk-free rate to reflect the Company's estimates of rates that a market participant would use to value the living benefits in both the accumulation and payout phases and index-linked interest crediting guarantees. This spread includes an estimate of own-credit risk (OCR), which is the risk that the obligation will not be fulfilled by the Company. OCR is primarily estimated by utilizing the credit spreads associated with issuing funding agreements, adjusted for any illiquidity risk premium. In order to reflect the financial strength ratings of the Company, credit spreads associated with funding agreements, as opposed to credit spread associated with debt, are utilized in developing this estimate because funding agreements, living benefit guarantees, and index-linked interest crediting guarantees are insurance liabilities and are therefore senior to debt.

(5) The utilization rate assumption estimates the percentage of contracts that will utilize the benefit during the contract duration and begin lifetime withdrawals at various time intervals from contract inception. Utilization assumptions may vary by product type, tax status and age. The impact of changes in these assumptions is highly dependent on the product type, the age of the contractholder at the time of the sale, and the timing of the first lifetime income withdrawal.

(6) The withdrawal rate assumption estimates the magnitude of annual contractholder withdrawals relative to the maximum allowable amount under the contract. These assumptions vary based on the age of the contractholder, the tax status of the contract and the duration since the contractholder began lifetime withdrawals. As of June 30, 2024 and December 31, 2023, the minimum withdrawal rate assumption is 88% and the maximum withdrawal rate assumption may be greater than 100%. The fair value of the liability will generally increase the closer the withdrawal rate is to 100% and decrease as the withdrawal rate moves further away from 100%.

(7) The range reflects the mortality rates for the vast majority of business with living benefits, with policyholders ranging from 45 to 90 years old. While the majority of living benefits have a minimum age requirement, certain other contracts do not have an age restriction. This results in contractholders with mortality rates approaching 0% for certain benefits.

Interrelationships Between Unobservable Inputs – In addition to the sensitivities of fair value measurements to changes in each unobservable input in isolation, as reflected in the table above, interrelationships between these inputs may also exist, such that a change in one unobservable input may give rise to a change in another, or multiple, inputs. Examples of such interrelationships for significant internally-priced Level 3 assets and liabilities are as follows:

Corporate Securities – The rate used to discount future cash flows reflects current risk-free rates plus credit and liquidity spread requirements that market participants would use to value an asset. The discount rate may be influenced by many factors, including market cycles, expectations of default, collateral, term and asset complexity. Each of these factors can influence discount rates, either in isolation, or in response to other factors. During weaker economic cycles, as the expectations of default increases, credit spreads widen, which results in a decrease in fair value.

Insurance Liabilities, at fair value – The Company expects efficient benefit utilization and withdrawal rates to generally be correlated with lapse rates. However, behavior is highly dependent on the facts and circumstances surrounding the individual contractholder, such as their liquidity needs or tax situation, which could drive lapse behavior independent of other contractholder behavior assumptions. To the extent that more efficient contractholder behavior results in greater in-the-moneyness at the contract level, lapse rates may decline for those contracts. Similarly, to the extent that increases in equity volatility are correlated with overall declines in the capital markets, lapse rates may decline as contracts become more in-the-money.

Changes in Level 3 Assets and Liabilities – The following tables describe changes in fair values of Level 3 assets and liabilities, by business segment, and in the aggregate. In addition, the following tables include the portion of gains or losses included in income attributable to unrealized gains or losses related to those assets and liabilities still held at the end of their respective periods. When a determination is made to classify assets and liabilities within Level 3, the determination is based on significance of the unobservable inputs in the overall fair value measurement. All transfers are based on changes in the observability of the valuation inputs, including the availability of pricing service information that the Company can validate. Transfers into Level 3 are generally the result of unobservable inputs utilized within valuation methodologies and the use of indicative broker quotes for assets that were previously valued using observable inputs. Transfers out of Level 3 are generally due to the use of observable inputs in valuation methodologies as well as the availability of pricing service information for certain assets that the Company can validate.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation


	Three Months Ended June 30, 2024
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Change in unrealized gains (losses) for assets still held(1)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	271	$	(4)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	267	$	(2)
Foreign corporate private securities	57		(1)		—		—		—		—		—		—		—		56		(1)
Residential mortgage-backed securities	5		—		—		—		—		—		—		—		—		5		—
Asset-backed securities	258		—		4		—		—		(3)		—		—		—		259		—
Mortgage loans
Residential mortgage loans	348		(2)		3		—		—		(44)		—		—		—		305		(4)
Commercial mortgage loans	77		—		—		—		—		—		—		—		—		77		(1)
Ceded Business
U.S. corporate private securities	1		—		1		—		—		—		—		—		—		2		—
Asset-backed securities	28		—		—		—		—		(2)		—		—		(10)		16		—


Deposit asset	426		(21)		—		—		—		—		(1)		—		—		404		—
Reinsurance recoverables	155		(4)		—		—		—		—		—		—		—		151		—
Net modified coinsurance receivable (payable)	(72)		(56)		—		—		—		—		—		—		—		(128)		—


	Six Months Ended June 30, 2024
	Fair Value, beginning of year		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Change in unrealized gains (losses) for assets still held(1)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	244	$	(1)	$	24	$	—	$	—	$	—	$	—	$	—	$	—	$	267	$	—
Foreign corporate private securities	56		—		—		—		—		—		—		—		—		56		—
Residential mortgage-backed securities	5		—		—		—		—		—		—		—		—		5		—
Asset-backed securities	246		(1)		18		—		—		(4)		—		—		—		259		(2)
Mortgage loans
Residential mortgage loans	361		3		7		—		—		(66)		—		—		—		305		1
Commercial mortgage loans	76		1		—		—		—		—		—		—		—		77		—
Ceded Business
U.S. corporate private securities	1		—		1		—		—		—		—		—		—		2		—
Asset-backed securities	—		—		28		—		—		(2)		—		—		(10)		16		—
Foreign corporate private securities	1		—		—		—		—		(1)		—		—		—		—		—
Short-term investments	4		—		3		—		—		(7)		—		—		—		—		—
Deposit asset	438		(31)		—		—		—		—		(3)		—		—		404		—
Reinsurance recoverables	206		(55)		—		—		—		—		—		—		—		151		—
Net modified coinsurance receivable (payable)	(78)		(50)		—		—		—		—		—		—		—		(128)		—


	Three Months Ended June 30, 2023
	Fair Value, beginning of period		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Change in unrealized gains (losses) for assets still held(1)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	182	$	1	$	27	$	—	$	—	$	—	$	—	$	18	$	(18)	$	210	$	2
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(3)
Asset-backed securities	191		—		18		—		—		(1)		—		—		—		208		1
Mortgage loans
Residential mortgage loans	158		—		31		—		—		(38)		—		—		—		151		—
Commercial mortgage loans	48		—		30		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	608		(10)		—		—		—		—		(122)		—		—		476		—
Reinsurance recoverables	247		(47)		—		—		—		—		—		—		—		200		—
Net modified coinsurance payable	(45)		(36)		—		—		—		—		—		—		—		(81)		—


	Six Months Ended June 30, 2023
	Fair Value, beginning of year		Total realized and unrealized gains (losses)		Purchases		Sales		Issuances		Settlements		Other		Transfers into Level 3		Transfers out of Level 3		Fair Value, end of period		Change in unrealized gains (losses) for assets still held(1)
	(in millions)
Retained Business
Fixed maturity securities
U.S. corporate private securities	$	146	$	1	$	46	$	—	$	—	$	(1)	$	—	$	18	$	—	$	210	$	1
Foreign corporate private securities	36		(2)		—		—		—		—		—		—		—		34		(2)
Asset-backed securities	155		(2)		56		—		—		(1)		—		—		—		208		(1)
Mortgage loans
Residential mortgage loans	161		—		44		—				(54)		—		—		—		151		—
Commercial mortgage loans	35		—		43		—		—		—		—		—		—		78		—
Ceded Business
Foreign corporate private securities	—		—		5		—		—		(2)		—		—		—		3		—
Deposit asset	607		(8)		—		—		—		—		(123)		—		—		476		—
Reinsurance recoverables	235		(35)		—		—		—		—		—		—		—		200		—
Net modified coinsurance receivable (payable)	18		(99)		—		—		—		—		—		—		—		(81)		—

(1)Changes in unrealized gains or losses related to assets still held at the end of the period do not include amortization or accretion of premiums and discounts.


	Three Months Ended June 30, 2024
			Incurred losses
	Fair Value, beginning of period		Reduction in estimates of ultimate losses		Increase in estimates of ultimate losses		Change in fair value (discount rate)		Fee income and paid losses		Other		Fair Value, end of period
	(in millions)
Insurance Liabilities
Retained Business	$	2,342	$	(121)	$	105	$	(137)	$	44	$	—	$	2,233
Ceded Business	2,203		(96)		59		(14)		1		—		2,153


	Six Months Ended June 30, 2024
			Incurred losses
	Fair Value, beginning of year		Reduction in estimates of ultimate losses		Increase in estimates of ultimate losses		Change in fair value (discount rate)		Fee income and paid losses		Other		Fair Value, end of period
	(in millions)
Insurance Liabilities
Retained Business	$	2,835	$	(506)	$	213	$	(382)	$	73	$	—	$	2,233
Ceded Business	2,168		(192)		218		(45)		4		—		2,153


	Three Months Ended June 30, 2023
			Incurred losses
	Fair Value, beginning of period		Reduction in estimates of ultimate losses		Increase in estimates of ultimate losses		Change in fair value (discount rate)		Fee income and paid losses		Other		Fair Value, end of period
	(in millions)
Insurance Liabilities
Retained Business	$	3,056	$	(354)	$	103	$	(189)	$	96	$	(1)	$	2,711
Ceded Business	2,695		(559)		143		(20)		14		—		2,273


	Six Months Ended June 30, 2023
			Incurred losses
	Fair Value, beginning of year		Reduction in estimates of ultimate losses		Increase in estimates of ultimate losses		Change in fair value (discount rate)		Fee income and paid losses		Other		Fair Value, end of period
	(in millions)
Insurance Liabilities
Retained Business	$	2,941	$	(702)	$	235	$	46	$	196	$	(5)	$	2,711
Ceded Business	2,605		(625)		210		56		27		—		2,273

"Total realized and unrealized gains (losses)" related to our level 3 assets are included in earnings in Investment gains (losses). Activity related to our level 3 liabilities is primarily recognized in earnings within change in Policyholder benefits and changes in fair value of insurance liabilities with the exception of changes related to the Company's own-credit risk, which are included in "Change in fair value (discount rate)" above and recorded in other comprehensive income (loss).

Fair Value, by Balance Sheet Grouping

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value. The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position. In some cases the carrying amount equals or approximates fair value.


	June 30, 2024
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	65	$	—	$	65	$	65
Other invested assets - Other	81		—		11		92		92
Liabilities:
Liabilities associated with secured borrowing arrangements
Repurchase agreements	$	—	$	1,000	$	—	$	1,000	$	1,121
Securities lending transactions	—		2		—		2		2


	December 31, 2023
	Fair Value								Carrying Amount
	Level 1		Level 2		Level 3		Total		Total
	(in millions)
Assets:
Accrued investment income	$	—	$	60	$	—	$	60	$	60
Other invested assets - Other	50		—		11		61		61
Liabilities:
Liabilities associated with secured borrowing arrangements
Repurchase agreements	$	—	$	825	$	—	$	825	$	967