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Fair Value of Assets and Liabilities
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Disclosures FAIR VALUE OF ASSETS AND LIABILITIES
Fair Value Measurement
General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a three-level fair value hierarchy that requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value:
Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined through various characteristics for the measured asset/liability, such as having many transactions and narrow bid/ask spreads.
Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions that use significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities and include those whose value is determined using market standard valuation techniques described above. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques that require management’s judgment or estimation in developing inputs that are consistent with those other market participants would use when pricing similar assets and liabilities.
For a discussion of the Company’s valuation methodologies for assets and liabilities measured at fair value and the fair value hierarchy, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the Company’s 2024 Annual Report.
See Note 7 – “Market Risk Benefits” for information about fair value measurement of market risk benefits.
Assets and Liabilities by Hierarchy Level
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 are summarized below (dollars in millions):
June 30, 2025: Fair Value Measurements Using:
 TotalLevel 1Level 2Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate$57,326 $— $48,414 $8,912 
Canadian government5,134 — 5,134 — 
Japanese government5,738 — 5,738 — 
ABS6,016 — 3,779 2,237 
CMBS2,076 — 2,052 24 
RMBS1,522 — 1,522 — 
U.S. government1,370 1,295 71 4 
State and political subdivisions699 — 699 — 
Other foreign government6,162 — 6,130 32 
Total fixed maturity securities available-for-sale86,043 1,295 73,539 11,209 
Equity securities155 64 — 91 
Funds withheld at interest – embedded derivatives(250)— — (250)
Funds withheld at interest60 — — 60 
Cash equivalents3,547 3,494 53 — 
Short-term investments463 393 61 9 
Other invested assets:
Derivatives119 — 119 — 
Other18 — 18 — 
Total other invested assets137 — 137 — 
Other assets – derivatives2 — — 2 
Total$90,157 $5,246 $73,790 $11,121 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$354 $— $— $354 
Other liabilities:
Funds withheld at interest – embedded derivatives(187)— — (187)
Derivatives478 — 476 2 
Total$645 $— $476 $169 
(1)Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of June 30, 2025, the fair value of such investments was $954 million.
December 31, 2024: Fair Value Measurements Using:
 TotalLevel 1Level 2Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate$50,991 $— $44,137 $6,854 
Canadian government5,016 — 5,016 — 
Japanese government4,445 — 4,445 — 
ABS5,040 — 3,254 1,786 
CMBS2,267 — 2,254 13 
RMBS1,317 — 1,317 — 
U.S. government2,464 2,379 80 5 
State and political subdivisions693 — 693 — 
Other foreign government5,384 — 5,354 30 
Total fixed maturity securities available-for-sale77,617 2,379 66,550 8,688 
Equity securities155 67 — 88 
Funds withheld at interest – embedded derivatives(215)— — (215)
Funds withheld at interest56 — — 56 
Cash equivalents2,055 2,053 2 — 
Short-term investments313 175 127 11 
Other invested assets:
Derivatives121 — 121 — 
Other17 — 17 — 
Total other invested assets 138 — 138 — 
Other assets – derivatives2 — — 2 
Total$80,121 $4,674 $66,817 $8,630 
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives$435 $— $— $435 
Other liabilities:
Funds withheld at interest – embedded derivatives(160)— — (160)
Derivatives486 — 484 2 
Total$761 $— $484 $277 
(1)Excludes limited partnerships that are measured at estimated fair value using the NAV per share (or its equivalent) as a practical expedient. As of December 31, 2024, the fair value of such investments was $966 million.
Quantitative Information Regarding Internally Priced Assets and Liabilities
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, 2025 and December 31, 2024 (dollars in millions):
Estimated Fair Value      Valuation TechniqueUnobservable InputRange (Weighted Average) 
June 30, 2025December 31, 2024June 30, 2025December 31, 2024
Assets:
Corporate$487 $99 Market comparable securitiesLiquidity premium
2-4% (3%)
2%
EBITDA Multiple
6.2x-14.1x (10.4x)
6.7x-11.0x (9.7x)
ABS672 564 Market comparable securitiesLiquidity premium
0-20% (4%)
0-10%% (3%%)
U.S. government4 — Market comparable securitiesLiquidity premium1%— 
Equity securities33 33 Market comparable securitiesLiquidity premium
4%
4%
EBITDA Multiple
7.4x-11.8x (10.5x)
7.4x-12.8x (10.9x)
Funds withheld at interest – embedded derivatives(2)22 Total return swapMortality
0-100%  (4%)
0-100%  (3%)
Lapse
0-35%  (20%)
0-35%  (18%)
Withdrawal
0-10%  (5%)
0-10%  (4%)
CVA
0-5%  (0%)
0-5%  (0%)
Crediting rate
1-4%  (2%)
1-4%  (2%)
Other assets – derivatives2 2 Credit default swapCredit spread
0-1% (0%)
0-1% (0%)
Probability of default
0-6% (0%)
0-8% (0%)
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives – indexed products354 435 Discounted cash flowMortality
0-100%  (3%)
0-100% (3%)
Lapse
0-35%  (19%)
0-35% (17%)
Withdrawal
0-10%  (4%)
0-10% (4%)
Option budget projection
1-4%  (2%)
1-4% (2%)
Other liabilities – derivatives2 2 Credit default swapCredit spread
0-1% (0%)
0-1% (0%)
Probability of default
0-6% (0%)
0-8% (0%)
    
Changes in Level 3 Assets and Liabilities
Assets and liabilities transferred into Level 3 are due to a lack of observable market transactions and price information. Transfers out of Level 3 are primarily the result of the Company obtaining observable pricing information or a third-party pricing quotation that appropriately reflects the fair value of those assets and liabilities. The Company had Level 3 other swap assets and liabilities that on a gross and net basis were not material for the three and six months ended June 30, 2025.
For further information on the Company’s valuation processes, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the Company’s 2024 Annual Report.
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, 2025:
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$8,222 $30 $1,908 $4 $87 $3 $(66)$57 $(383)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income3 — — — — — — — — 
Investment related gains (losses), net(24)— (1)— 4 — 3 — — 
Interest credited— — — — — — — — 8 
Included in other comprehensive income (loss)60 2 29 — — — — 4 — 
Purchases (2)
889 — 384 — — 7 — 1 4 
Sales (2)
(47)— (10)— — — — — — 
Settlements (2)
(182)— (51)— — (1)— (2)17 
Transfers into Level 3— — 10 — — — — — — 
Transfers out of Level 3(9)— (8)— — — — — — 
Fair value, end of period$8,912 $32 $2,261 $4 $91 $9 $(63)$60 $(354)
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$3 $— $— $— $— $— $— $(1)$— 
Investment related gains (losses), net(24)— — — 4 — 3 — — 
Interest credited— — — — — — — — (8)
Included in other comprehensive income (loss)61 2 29 — — — — 3 — 
(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, 2025:
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$6,854 $30 $1,799 $5 $88 $11 $(55)$56 $(435)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income7 — 2 — — — — (1)— 
Investment related gains (losses), net(31)— — — 4 — (8)— — 
Interest credited— — — — — — — — 32 
Included in other comprehensive income (loss)99 2 49 — — — — 6 — 
Purchases (2)
2,403 — 580 — — 7 — 1 11 
Sales (2)
(91)— (10)— (1)— — — — 
Settlements (2)
(322)— (165)(1)— (7)— (2)38 
Transfers into Level 32 — 20 — — — — — — 
Transfers out of Level 3(9)— (14)— — (2)— — — 
Fair value, end of period$8,912 $32 $2,261 $4 $91 $9 $(63)$60 $(354)
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$6 $— $1 $— $— $— $— $(2)$— 
Investment related gains (losses), net(32)— — — 5 — (8)— — 
Interest credited— — — — — — — — (5)
Included in other comprehensive income (loss)101 2 50 — — — — 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 three months ended June 30, 2024:
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$5,079 $33 $1,398 $27 $69 $10 $(94)$55 $(398)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income4 — 2 — — — — — — 
Investment related gains (losses), net(24)— 1 — (4)— 26 — — 
Interest credited— — — — — — — — 8 
Included in other comprehensive income (loss)(28)(2)2 — — — — — — 
Purchases (2)
764 — 142 — 9 7 — — (23)
Sales (2)
(63)— — — — (1)— — — 
Settlements (2)
(232)— (99)— — — — — 27 
Transfers into Level 31 — 51 — — — — — — 
Transfers out of Level 3— — — — — (1)— — — 
Fair value, end of period$5,501 $31 $1,497 $27 $74 $15 $(68)$55 $(386)
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 $— $1 $— $— $— $— $— $— 
Investment related gains (losses), net(18)— — — (4)— 26 — — 
Interest credited— — — — — — — — 18 
Included in other comprehensive income (loss)(27)(2)4 — — — — — — 
(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, 2024:
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$4,933 $35 $1,425 $26 $70 $2 $(171)$54 $(415)
Total gains/losses (realized/unrealized)
Included in earnings, net:
Net investment income6 — 3 — — — — 2 — 
Investment related gains (losses), net(48)— (1)— (7)— 103 — — 
Interest credited— — — — — — — — (12)
Included in other comprehensive income (loss)(17)(4)4 — — — — (1)— 
Purchases (2)
1,192 — 188 — 11 15 — 1 (11)
Sales (2)
(182)— (23)— — (1)— — — 
Settlements (2)
(350)— (159)(1)— — — (1)52 
Transfers into Level 31 — 81 2 — — — — — 
Transfers out of Level 3(34)— (21)— — (1)— — — 
Fair value, end of period$5,501 $31 $1,497 $27 $74 $15 $(68)$55 $(386)
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$3 $— $2 $— $— $— $— $2 $— 
Investment related gains (losses), net(45)— (3)— (7)— 103 — — 
Interest credited— — — — — — — — 64 
Included in other comprehensive income (loss)(15)(4)6 — — — — (1)— 
(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.
Nonrecurring Fair Value Measurements
The Company has certain assets subject to measurement at fair value on a nonrecurring basis in periods subsequent to their initial recognition if they are determined to be impaired. For the six months ended June 30, 2025 and 2024, the Company did not have any material assets that were measured at fair value due to impairment.
Fair Value of Financial Instruments Carried at Other Than Fair Value
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, 2025 and December 31, 2024 (dollars in millions). For additional information regarding the methods and significant assumptions used by the Company to estimate these fair values, see Note 13 – “Fair Value of Assets and Liabilities” in the Notes to Consolidated Financial Statements included in the Company’s 2024 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 amounts approximate carrying value as they equal the amount of cash collateral received/paid.
June 30, 2025:
Carrying 
Value (1)
Estimated 
Fair Value		Fair Value Measurement Using:
Level 1Level 2Level 3
Assets:
Mortgage loans$10,057 $9,523 $— $— $9,523 
Policy loans1,294 1,294 — 1,294 — 
Funds withheld at interest7,306 6,971 — — 6,971 
Limited partnerships – cost method69 99 — — 99 
Cash and cash equivalents1,869 1,869 1,869 — — 
Short-term investments39 39 39 — — 
Other invested assets1,220 1,023 — 71 952 
Accrued investment income1,089 1,089 — 1,089 — 
Liabilities:
Interest-sensitive contract liabilities (2)
$27,787 $27,766 $— $— $27,766 
Funds withheld at interest5,003 4,765 — — 4,765 
Long-term debt5,734 5,586 — — 5,586 
December 31, 2024:
Assets:
Mortgage loans$8,839 $8,422 $— $— $8,422 
Policy loans1,321 1,321 — 1,321 — 
Funds withheld at interest5,596 5,296 — — 5,296 
Limited partnerships – cost method64 88 — — 88 
Cash and cash equivalents1,271 1,271 1,271 — — 
Short-term investments50 50 50 — — 
Other invested assets1,064 862 3 71 788 
Accrued investment income986 986 — 986 — 
Liabilities:
Interest-sensitive contract liabilities (2)
$25,817 $25,540 $— $— $25,540 
Funds withheld at interest5,177 4,960 — — 4,960 
Long-term debt5,042 4,836 — — 4,836 
(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.
(2)Carrying values and estimated fair values presented herein include a reinsurance recoverable of $2.0 billion as of June 30, 2025 and December 31, 2024, respectively.