XML 40 R30.htm IDEA: XBRL DOCUMENT v3.22.2
Fair Value of Assets and Liabilities Fair Value of Assets and Liabilities (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
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 June 30, 2022 and December 31, 2021 are summarized below (dollars in millions):
June 30, 2022: Fair Value Measurements Using:
 Total    Level 1        Level 2    Level 3    
Assets:
Fixed maturity securities – available-for-sale:
Corporate$34,374 $— $30,136 $4,238 
Canadian government3,809 — 3,809 — 
RMBS950 — 944 6 
ABS3,782 — 2,624 1,158 
CMBS1,735 — 1,652 83 
U.S. government962 862 90 10 
State and political subdivisions1,116 — 1,083 33 
Other foreign government6,566 — 6,530 36 
Total fixed maturity securities – available-for-sale53,294 862 46,868 5,564 
Equity securities127 80 — 47 
Funds withheld at interest – embedded derivatives(174)— — (174)
Funds withheld at interest62 — — 62 
Cash equivalents1,156 1,156 — — 
Short-term investments234 171 42 21 
Other invested assets:
Derivatives115 — 115 — 
Other33 — 33 — 
Total other invested assets (1)
148 — 148 — 
Total$54,847 $2,269 $47,058 $5,520 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$744 $— $— $744 
Other liabilities:
Funds withheld at interest – embedded derivatives(250)— — (250)
Derivatives266 — 266 — 
Total$760 $— $266 $494 
(1)Other invested assets included in the fair value hierarchy exclude limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) as a practical expedient. As of June 30, 2022, the fair value of such investments was $620 million.
December 31, 2021: Fair Value Measurements Using:
 TotalLevel 1Level 2Level 3
Assets:
Fixed maturity securities – available-for-sale:
Corporate$38,103 $— $34,215 $3,888 
Canadian government4,944 — 4,944 — 
RMBS1,050 — 1,049 1 
ABS4,005 — 2,908 1,097 
CMBS1,849 — 1,768 81 
U.S. government2,105 1,993 100 12 
State and political subdivisions1,323 — 1,290 33 
Other foreign government7,370 — 7,337 33 
Total fixed maturity securities – available-for-sale60,749 1,993 53,611 5,145 
Equity securities151 101 — 50 
Funds withheld at interest – embedded derivatives104 — — 104 
Funds withheld at interest83 — — 83 
Cash equivalents1,138 1,138 — — 
Short-term investments64 — 36 28 
Other invested assets:
Derivatives175 — 175 — 
Other52 — 52 — 
Total other invested assets (1)
227 — 227 — 
Total$62,516 $3,232 $53,874 $5,410 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$855 $— $— $855 
Other liabilities:
Funds withheld at interest – embedded derivatives(61)— — (61)
Derivatives39 — 39 — 
Total$833 $— $39 $794 
(1)Other invested assets included in the fair value hierarchy exclude limited partnership interests that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of December 31, 2021, the fair value of such investments was $581 million.
Fair Value Inputs, Liabilities, Quantitative Information [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 June 30, 2022 and December 31, 2021 (dollars in millions):
Estimated Fair Value      Valuation TechniqueUnobservable InputsRange (Weighted Average) 
June 30, 2022December 31, 2021June 30, 2022December 31, 2021
Assets:
Corporate$35 $49 Market comparable securitiesLiquidity premium
1%
0-1% (1%)
EBITDA Multiple
5.0x-7.0x (6.5x)
5.2x-7.0x (6.4x)
ABS233 205 Market comparable securitiesLiquidity premium
0-18% (3%)
2-18% (4%)
U.S. government10 12 Market comparable securitiesLiquidity premium
0-1% (1%)
0-1% (1%)
Equity securities6 5 Market comparable securitiesEBITDA Multiple
6.9x-11.2x (8.5x)
6.9x-10.6x (8.0x)
Funds withheld at interest – embedded derivatives61 182 Total return swapMortality
0-100% (3%)
0-100%  (3%)
Lapse
0-35% (12%)
0-35%  (18%)
Withdrawal
0-5% (4%)
0-5%  (4%)
CVA
0-5% (0%)
0-5%  (0%)
Crediting rate
1-4% (2%)
1-4%  (2%)
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives – indexed annuities584 693 Discounted cash flowMortality
0-100% (3%)
0-100% (2%)
Lapse
0-35% (11%)
0-35% (16%)
Withdrawal
0-5% (3%)
0-5% (3%)
Option budget projection
1-4% (2%)
1-4% (2%)
Interest-sensitive contract liabilities – embedded derivatives – variable annuities160 162 Discounted cash flowMortality
0-100% (2%)
0-100% (2%)
Lapse
0-25% (4%)
0-25% (4%)
Withdrawal
0-7% (6%)
0-7% (5%)
CVA
0-5% (1%)
0-5% (1%)
Long-term volatility
0-27% (14%)
0-27% (14%)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The reconciliations for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) are as follows (dollars in millions):
For the three months ended June 30, 2022:Fixed maturity securities – available-for-sale
Funds 
withheld at interest –embedded derivatives, net(1)
Funds 
withheld at interest		Interest-sensitive contract 
liabilities – embedded derivatives
 CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$4,046 $29 $1,121 $44 $48 $48 $132 $75 $(793)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income2 — — — — — — (5)— 
Investment related gains (losses), net(6)— — — (5)1 (56)— (12)
Interest credited— — — — — — — — 44 
Included in other comprehensive income (loss)(157)(6)(73)(3)— (1)— (5)— 
Purchases(2)
571 — 207 — 4 1 — 2 — 
Sales(2)
(108)— — (1)— — — — — 
Settlements(2)
(153)— (21)(1)— (28)— (5)17 
Transfers into Level 357 13 32 4 — — — — — 
Transfers out of Level 3(14)— (19)— — — — — — 
Fair value, end of period$4,238 $36 $1,247 $43 $47 $21 $76 $62 $(744)
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:
Net investment income$1 $— $— $— $— $— $— $(5)$— 
Investment related gains (losses), net(8)— — — (5)— (56)— (13)
Interest credited— — — — — — — — 27 
Included in other comprehensive income (loss)(157)(6)(73)(3)— — — (5)— 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)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.
For the six months ended June 30, 2022:Fixed maturity securities – available-for-sale
Funds 
withheld at interest –embedded derivatives, net(1)
Funds 
withheld at interest		Interest-sensitive contract 
liabilities – embedded derivatives
 CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$3,888 $33 $1,179 $45 $50 $28 $165 $83 $(855)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income3 — — — — — — (10)— 
Investment related gains (losses), net(6)— (5)— (6)1 (89)— 2 
Interest credited— — — — — — — — 80 
Included in other comprehensive income (loss)(301)(10)(145)(4)— (1)— (7)— 
Purchases(2)
936 — 302 — 4 21 — 3 (5)
Sales(2)
(124)— (51)(1)(1)— — — — 
Settlements(2)
(179)— (59)(3)— (28)— (7)34 
Transfers into Level 357 13 45 10 — — — — — 
Transfers out of Level 3(36)— (19)(4)— — — — — 
Fair value, end of period$4,238 $36 $1,247 $43 $47 $21 $76 $62 $(744)
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:
Net investment income$2 $— $— $— $— $— $— $(10)$— 
Investment related gains (losses), net(8)— (5)— (6)— (89)(1)
Interest credited— — — — — — — — 45 
Included in other comprehensive income (loss)(301)(10)(144)(4)— — — (7)— 
(1)Funds withheld at interest – embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(2)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.
For the three months ended June 30, 2021:Fixed maturity securities – available-for-saleFunds 
withheld at interest – embedded derivatives		Funds 
withheld at interest		Interest-sensitive contract 
liabilities – embedded derivatives
 CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$3,101 $16 $388 $22 $54 $11 $109 $67 $(857)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income2 — — — — — — (1)— 
Investment related gains (losses), net2 — — — 10 — 16 — (17)
Interest credited— — — — — — — — (13)
Included in other comprehensive income (loss)49 — 5 — — — — — — 
Purchases(1)
317 25 262 — — — — 16 (13)
Sales(1)
(19)— (2)— (1)— — — — 
Settlements(1)
(269)— (24)(1)— (10)— (1)20 
Transfers into Level 325 — 24 — — — — — — 
Transfers out of Level 3— — — — — (1)— — — 
Fair value, end of period$3,208 $41 $653 $21 $63 $— $125 $81 $(880)
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:
Net investment income$1 $— $— $— $— $— $— $(1)$— 
Investment related gains (losses), net— — — — 9 — 16 — (19)
Interest credited— — — — — — — — (33)
Included in other comprehensive income (loss)51 — 5 — — — — — — 
(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.
For the six months ended June 30, 2021:Fixed maturity securities – available-for-saleFunds 
withheld at interest – embedded derivatives		Funds 
withheld at interest		Interest-sensitive contract 
liabilities – embedded derivatives
 CorporateForeign govtStructured securitiesU.S. and local govtEquity securitiesShort-term investments
Fair value, beginning of period$3,029 $17 $254 $23 $53 $15 $58 $56 $(907)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income3 — — — — — — (6)— 
Investment related gains (losses), net1 — — — 11 — 66 — 1 
Interest credited— — — — — — — — 1 
Included in other comprehensive income (loss)(33)(1)4 — — — 1 — — 
Purchases(1)
540 25 428 — — — — 32 (17)
Sales(1)
(20)— (2)— (1)— — — — 
Settlements(1)
(341)— (85)(2)— (10)— (1)42 
Transfers into Level 329 — 54 — — — — — — 
Transfers out of Level 3— — — — — (5)— — — 
Fair value, end of period$3,208 $41 $653 $21 $63 $— $125 $81 $(880)
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:
Net investment income$2 $— $— $— $— $— $— $(6)$— 
Investment related gains (losses), net(1)— — — 10 — 66 — (3)
Interest credited— — — — — — — — (41)
Included in other comprehensive income (loss)(31)(1)4 — — — 1 — — 
(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.
Financial Instruments Carrying Amounts And Estimated Fair Value [Table Text Block]
The following table presents the carrying values and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis, as of June 30, 2022 and December 31, 2021 (dollars in millions). For additional information regarding the methods and significant assumptions used by the Company to estimate these fair values, see Note 6 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the Company’s 2021 Annual Report. This table excludes any payables or receivables for collateral under repurchase/reverse 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.
June 30, 2022:
Carrying Value (1)
Estimated 
Fair Value		Fair Value Measurement Using:
Level 1Level 2Level 3
Assets:
Mortgage loans$6,544 $6,051 $— $— $6,051 
Policy loans1,218 1,218 — 1,218 — 
Funds withheld at interest6,519 6,335 — — 6,335 
Cash and cash equivalents1,400 1,400 1,400 — — 
Short-term investments38 38 38 — — 
Other invested assets924 805 5 60 740 
Accrued investment income572 572 — 572 — 
Liabilities:
Interest-sensitive contract liabilities$21,836 $21,399 $— $— $21,399 
Other liabilities – funds withheld at interest1,610 1,417 1,417 
Long-term debt3,667 3,463 — — 3,463 
Collateral finance and securitization notes152 129 — — 129 
December 31, 2021:
Carrying Value (1)
Estimated
Fair Value		Fair Value Measurement Using:
Level 1Level 2Level 3
Assets:
Mortgage loans$6,283 $6,580 $— $— $6,580 
Policy loans1,234 1,234 — 1,234 — 
Funds withheld at interest6,747 7,075 — — 7,075 
Cash and cash equivalents1,810 1,810 1,810 — — 
Short-term investments23 23 23 — — 
Other invested assets910 907 6 70 831 
Accrued investment income533 533 — 533 — 
Liabilities:
Interest-sensitive contract liabilities$18,625 $19,540 $— $— $19,540 
Other liabilities – funds withheld at interest1,658 1,657 — — 1,657 
Long-term debt3,667 3,886 — — 3,886 
Collateral finance and securitization notes180 153 — — 153 
(1)Carrying values presented herein may differ from those in the Company’s condensed consolidated balance sheets because certain items within the respective financial statement captions may be measured at fair value on a recurring basis.