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Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019 are summarized below (dollars in millions):


December 31, 2020:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate	$	36,208	$	—	$	33,179	$	3,029
Canadian government	5,140		—		5,140		—
RMBS	1,817		—		1,814		3
ABS	3,092		—		2,896		196
CMBS	1,868		—		1,813		55
U.S. government	1,437		1,312		111		14
State and political subdivisions	1,390		—		1,381		9
Other foreign government	5,783		—		5,766		17
Total fixed maturity securities – available-for-sale	56,735		1,312		52,100		3,323
Equity securities	132		79		—		53
Funds withheld at interest – embedded derivatives & other	114		—		—		114
Cash equivalents	1,478		1,478		—		—
Short-term investments	197		32		150		15
Other invested assets:
Derivatives	140		—		140		—
FVO contractholder-directed unit-linked investments	289		224		65		—


Total other invested assets	429		224		205		—
Total	$	59,085	$	3,125	$	52,455	$	3,505
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives	$	907	$	—	$	—	$	907
Other liabilities:
Derivatives	49		—		49		—
Total	$	956	$	—	$	49	$	907


December 31, 2019:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate	$	31,393	$	—	$	29,207	$	2,186
Canadian government	4,612		—		3,908		704
RMBS	2,398		—		2,349		49
ABS	2,978		—		2,865		113
CMBS	1,899		—		1,853		46
U.S. government	2,152		2,030		106		16
State and political subdivisions	1,164		—		1,155		9
Other foreign government	4,525		—		4,509		16
Total fixed maturity securities – available-for-sale	51,121		2,030		45,952		3,139
Equity securities	320		243		—		77
Funds withheld at interest – embedded derivatives	121		—		—		121
Cash equivalents	274		274		—		—
Short-term investments	32		4		26		2
Other invested assets:
Derivatives	117		—		117		—
FVO contractholder-directed unit-linked investments	260		207		53		—


Total other invested assets	377		207		170		—
Total	$	52,245	$	2,758	$	46,148	$	3,339
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives	$	930	$	—	$	—	$	930
Other liabilities:
Derivatives	53		—		53		—
Total	$	983	$	—	$	53	$	930

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

The following table presents quantitative information about significant unobservable inputs used in Level 3 fair value measurements that are developed internally by the Company as of December 31, 2020 and 2019 (dollars in millions):


	Estimated Fair Value				Valuation	Unobservable	Range (Weighted Average)
Assets:	2020		2019		Technique	Input	2020	2019
Corporate	$	37	$	1,070	Market comparable securities	Liquidity premium	0-1% (1%)	0-2% (1%)
						EBITDA Multiple	5.2x-11.2x (7.1x)	5.2x-7.1x (6.7x)
ABS	87		101		Market comparable securities	Liquidity premium	1-18% (1%)	0-4% (1%)
U.S. government	14		16		Market comparable securities	Liquidity premium	0-1% (1%)	0-1% (1%)

Other foreign government	—		16		Market comparable securities	Liquidity premium	0%	0-1% (1%)
Equity securities	10		32		Market comparable securities	Liquidity premium	0%	4%
						EBITDA Multiple	6.9x-10.6x (7.9x)	6.9x-9.3x (7.8x)
Funds withheld at interest – embedded derivatives	58		121		Total return swap	Mortality	0-100% (3%)	0-100% (2%)
						Lapse	0-35% (13%)	0-35% (13%)
						Withdrawal	0-5% (3%)	0-5% (3%)
						CVA	0-5% (1%)	0-5% (1%)
						Crediting rate	2-4% (2%)	2-4% (2%)


Liabilities:
Interest-sensitive contract liabilities – embedded derivatives – indexed annuities	752		768		Discounted cash flow	Mortality	0-100% (3%)	0-100% (2%)
						Lapse	0-35% (13%)	0-35% (13%)
						Withdrawal	0-5% (3%)	0-5% (3%)
						Option budget projection	2-4% (2%)	2-4% (2%)
Interest-sensitive contract liabilities – embedded derivatives – variable annuities	155		163		Discounted cash flow	Mortality	0-100% (2%)	0-100%(1%)
						Lapse	0-25% (4%)	0-25% (5%)
						Withdrawal	0-7% (5%)	0-7% (5%)
						CVA	0-5% (1%)	0-5% (1%)
						Long-term volatility	0-27% (13%)	0-27% (12%)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]


For the year ended December 31, 2020:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives & other		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	2,186	$	720	$	208	$	25	$	77	$	2	$	121	$	—	$	(930)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	2		—		—		—		—		—		(4)		—		—
Investment related gains (losses), net	(22)		—		—		—		(13)		—		(63)		—		8

Interest credited	—		—		—		—		—		—		—		—		(30)

Included in other comprehensive income	28		1		(7)		1		—		—		—		—		—
Other revenues	—		—		—		—		—		—		—		—		—
Purchases(1)	1,193		—		149		—		3		17		60		—		(32)
Sales(1)	(182)		—		(5)		—		—		—		—		—		—
Settlements(1)	(229)		—		(59)		(3)		—		(3)		—		—		77
Transfers into Level 3	57		—		38		—		—		—		—		—		—
Transfers out of Level 3	(4)		(704)		(70)		—		(14)		(1)		—		—		—
Fair value, end of period	$	3,029	$	17	$	254	$	23	$	53	$	15	$	114	$	—	$	(907)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	—	$	—	$	—	$	—	$	—	$	—	$	(4)	$	—	$	—
Investment related gains (losses), net	(23)		—		—		—		(13)		—		(63)		—		(2)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(107)
Included in other comprehensive income	(34)		1		(8)		1		—		—		—		—		—


For the year ended December 31, 2019:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	1,331	$	533	$	103	$	28	$	33	$	2	$	110	$	48	$	(945)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	1		15		—		—		—		—		—		—		—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		5

Interest credited	—		—		—		—		—		—		—		—		(57)

Included in other comprehensive income	48		162		4		1		—		(1)		—		(2)		—
Other revenues	—		—		—		—		—		—		—		12		—
Purchases(1)	1,050		10		85		—		33		30		—		—		(17)
Sales(1)	(81)		—		(1)		—		(1)		(1)		—		—		—
Settlements(1)	(194)		—		(63)		(4)		—		(1)		—		(58)		84
Transfers into Level 3	43		—		86		—		—		—		—		—		—
Transfers out of Level 3	(1)		—		(6)		—		—		(27)		—		—		—
Fair value, end of period	$	2,186	$	720	$	208	$	25	$	77	$	2	$	121	$	—	$	(930)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	2	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		(3)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(140)


For the year ended December 31, 2018:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	1,337	$	599	$	235	$	64	$	—	$	3	$	122	$	39	$	(1,014)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(1)		14		—		—		—		—		—		—		—
Investment related gains (losses), net	(5)		—		2		—		(13)		—		(12)		—		(15)

Interest credited	—		—		—		—		—		—		—		—		27

Included in other comprehensive income	(33)		(80)		(3)		—		—		—		—		(2)		—
Other revenues	—		—		—		—		—		—		—		9		—
Purchases(1)	509		—		94		—		14		3		—		—		(19)
Sales(1)	(106)		—		(7)		—		(7)		—		—		—		—
Settlements(1)	(273)		—		(62)		(5)		—		(1)		—		2		76
Transfers into Level 3	10		—		78		10		39		—		—		—		—
Transfers out of Level 3	(107)		—		(234)		(41)		—		(3)		—		—		—
Fair value, end of period	$	1,331	$	533	$	103	$	28	$	33	$	2	$	110	$	48	$	(945)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	(1)	$	14	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(6)		—		—		—		(16)		—		(12)		—		(22)
Other revenues	—		—		—		—		—		—		—		9		—

Interest credited	—		—		—		—		—		—		—		—		(49)

(1)The amount reported within purchases, sales and settlements is the purchase price (for purchases) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased or sold/settled. Items purchased and sold/settled in the same period are excluded from the rollforward. The Company had no issuances during the period.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]


For the year ended December 31, 2020:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives & other		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	2,186	$	720	$	208	$	25	$	77	$	2	$	121	$	—	$	(930)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	2		—		—		—		—		—		(4)		—		—
Investment related gains (losses), net	(22)		—		—		—		(13)		—		(63)		—		8

Interest credited	—		—		—		—		—		—		—		—		(30)

Included in other comprehensive income	28		1		(7)		1		—		—		—		—		—
Other revenues	—		—		—		—		—		—		—		—		—
Purchases(1)	1,193		—		149		—		3		17		60		—		(32)
Sales(1)	(182)		—		(5)		—		—		—		—		—		—
Settlements(1)	(229)		—		(59)		(3)		—		(3)		—		—		77
Transfers into Level 3	57		—		38		—		—		—		—		—		—
Transfers out of Level 3	(4)		(704)		(70)		—		(14)		(1)		—		—		—
Fair value, end of period	$	3,029	$	17	$	254	$	23	$	53	$	15	$	114	$	—	$	(907)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	—	$	—	$	—	$	—	$	—	$	—	$	(4)	$	—	$	—
Investment related gains (losses), net	(23)		—		—		—		(13)		—		(63)		—		(2)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(107)
Included in other comprehensive income	(34)		1		(8)		1		—		—		—		—		—


For the year ended December 31, 2019:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	1,331	$	533	$	103	$	28	$	33	$	2	$	110	$	48	$	(945)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	1		15		—		—		—		—		—		—		—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		5

Interest credited	—		—		—		—		—		—		—		—		(57)

Included in other comprehensive income	48		162		4		1		—		(1)		—		(2)		—
Other revenues	—		—		—		—		—		—		—		12		—
Purchases(1)	1,050		10		85		—		33		30		—		—		(17)
Sales(1)	(81)		—		(1)		—		(1)		(1)		—		—		—
Settlements(1)	(194)		—		(63)		(4)		—		(1)		—		(58)		84
Transfers into Level 3	43		—		86		—		—		—		—		—		—
Transfers out of Level 3	(1)		—		(6)		—		—		(27)		—		—		—
Fair value, end of period	$	2,186	$	720	$	208	$	25	$	77	$	2	$	121	$	—	$	(930)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	2	$	15	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(11)		—		—		—		12		—		11		—		(3)
Other revenues	—		—		—		—		—		—		—		—		—

Interest credited	—		—		—		—		—		—		—		—		(140)


For the year ended December 31, 2018:	Fixed maturity securities – available-for-sale												Funds withheld at interest –embedded derivatives		Other assets – longevity and mortality swaps		Interest –sensitive contract liabilities embedded derivatives
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-term investments
Fair value, beginning of period	$	1,337	$	599	$	235	$	64	$	—	$	3	$	122	$	39	$	(1,014)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Investment income, net of related expenses	(1)		14		—		—		—		—		—		—		—
Investment related gains (losses), net	(5)		—		2		—		(13)		—		(12)		—		(15)

Interest credited	—		—		—		—		—		—		—		—		27

Included in other comprehensive income	(33)		(80)		(3)		—		—		—		—		(2)		—
Other revenues	—		—		—		—		—		—		—		9		—
Purchases(1)	509		—		94		—		14		3		—		—		(19)
Sales(1)	(106)		—		(7)		—		(7)		—		—		—		—
Settlements(1)	(273)		—		(62)		(5)		—		(1)		—		2		76
Transfers into Level 3	10		—		78		10		39		—		—		—		—
Transfers out of Level 3	(107)		—		(234)		(41)		—		(3)		—		—		—
Fair value, end of period	$	1,331	$	533	$	103	$	28	$	33	$	2	$	110	$	48	$	(945)
Total gains/losses (realized/unrealized) recorded for the period relating to those Level 3 assets and liabilities that were still held at the end of the period
Included in earnings, net:
Investment income, net of related expenses	$	(1)	$	14	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Investment related gains (losses), net	(6)		—		—		—		(16)		—		(12)		—		(22)
Other revenues	—		—		—		—		—		—		—		9		—

Interest credited	—		—		—		—		—		—		—		—		(49)

Fair Value Assets Measured On Nonrecurring Basis [Text Block]

Nonrecurring Fair Value Measurements

The following table presents information for assets measured at an estimated fair value on a nonrecurring basis during the periods presented and still held at the reporting date (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).


	Carrying Value After Measurement				Net Investment Gains (Losses)
	At December 31,				Years ended December 31,
(dollars in millions)	2020		2019		2020		2019

Limited partnership interests and real estate joint ventures(1)	$	20	$	18	$	(17)	$	(11)

(1)Impairments on these investments were recognized at estimated fair value determined using the net asset values of the Company’s ownership interest as provided in the financial statements of the investees. Real estate joint ventures were recognized at estimated fair value determined using historical and forecasted information for specific properties, including net operating income, occupancy, and sales levels. The market for these investments has limited activity and price transparency.

Financial Instruments Carrying Amounts And Estimated Fair Value [Table Text Block]

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis, as of December 31, 2020 and 2019 (dollars in millions). This table excludes any payables or receivables for collateral under repurchase agreements and other transactions. The estimated fair value of the excluded amount approximates carrying value as they equal the amount of cash collateral received/paid.


			Estimated Fair		Fair Value Measurement Using:
December 31, 2020:	Carrying Value (1)		Value		Level 1		Level 2		Level 3		NAV
Assets:
Mortgage loans on real estate	$	5,787	$	6,167	$	—	$	—	$	6,167	$	—
Policy loans	1,258		1,258		—		1,258		—		—
Funds withheld at interest	5,292		5,676		—		—		5,676		—
Cash and cash equivalents	1,930		1,930		1,930		—		—		—
Short-term investments	30		30		30		—		—		—
Other invested assets	1,482		1,601		5		89		1,018		489
Accrued investment income	511		511		—		511		—		—
Liabilities:
Interest-sensitive contract liabilities	$	18,106	$	19,683	$	—	$	—	$	19,683	$	—
Long-term debt	3,573		3,901		—		—		3,901		—
Collateral finance and securitization notes	388		351		—		—		351		—

December 31, 2019:
Assets:
Mortgage loans on real estate	$	5,706	$	5,935	$	—	$	—	$	5,935	$	—
Policy loans	1,319		1,319		—		1,319		—		—
Funds withheld at interest	5,526		5,870		—		—		5,870		—
Cash and cash equivalents	1,175		1,175		1,175		—		—		—
Short-term investments	32		32		32		—		—		—
Other invested assets	1,259		1,278		5		68		803		402
Accrued investment income	493		493		—		493		—		—
Liabilities:
Interest-sensitive contract liabilities	$	19,163	$	21,542	$	—	$	—	$	21,542	$	—
Long-term debt	2,981		3,179		—		—		3,179		—
Collateral finance and securitization notes	598		551		—		—		551		—

(1)Carrying values presented herein may differ from those in the Company’s consolidated balance sheets because certain items within the respective financial statement captions may be measured at fair value on a recurring basis.