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Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2025

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, 2025 and December 31, 2024 are summarized below (dollars in millions):


June 30, 2025:			Fair Value Measurements Using:
	Total		Level 1		Level 2		Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate	$	57,326	$	—	$	48,414	$	8,912
Canadian government	5,134		—		5,134		—
Japanese government	5,738		—		5,738		—
ABS	6,016		—		3,779		2,237
CMBS	2,076		—		2,052		24
RMBS	1,522		—		1,522		—
U.S. government	1,370		1,295		71		4
State and political subdivisions	699		—		699		—
Other foreign government	6,162		—		6,130		32
Total fixed maturity securities available-for-sale	86,043		1,295		73,539		11,209
Equity securities	155		64		—		91
Funds withheld at interest – embedded derivatives	(250)		—		—		(250)
Funds withheld at interest	60		—		—		60
Cash equivalents	3,547		3,494		53		—
Short-term investments	463		393		61		9
Other invested assets:
Derivatives	119		—		119		—

Other	18		—		18		—
Total other invested assets	137		—		137		—
Other assets – derivatives	2		—		—		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)
Derivatives	478		—		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:
	Total		Level 1		Level 2		Level 3
Assets: (1)
Fixed maturity securities available-for-sale:
Corporate	$	50,991	$	—	$	44,137	$	6,854
Canadian government	5,016		—		5,016		—
Japanese government	4,445		—		4,445		—
ABS	5,040		—		3,254		1,786
CMBS	2,267		—		2,254		13
RMBS	1,317		—		1,317		—
U.S. government	2,464		2,379		80		5
State and political subdivisions	693		—		693		—
Other foreign government	5,384		—		5,354		30
Total fixed maturity securities available-for-sale	77,617		2,379		66,550		8,688
Equity securities	155		67		—		88
Funds withheld at interest – embedded derivatives	(215)		—		—		(215)
Funds withheld at interest	56		—		—		56
Cash equivalents	2,055		2,053		2		—
Short-term investments	313		175		127		11
Other invested assets:
Derivatives	121		—		121		—
Other	17		—		17		—


Total other invested assets	138		—		138		—
Other assets – derivatives	2		—		—		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)
Derivatives	486		—		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.

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 June 30, 2025 and December 31, 2024 (dollars in millions):


	Estimated Fair Value				Valuation Technique	Unobservable Input	Range (Weighted Average)
	June 30, 2025		December 31, 2024				June 30, 2025	December 31, 2024
Assets:
Corporate	$	487	$	99	Market comparable securities	Liquidity premium	2-4% (3%)	2%
						EBITDA Multiple	6.2x-14.1x (10.4x)	6.7x-11.0x (9.7x)
ABS	672		564		Market comparable securities	Liquidity premium	0-20% (4%)	0-10%% (3%%)
U.S. government	4		—		Market comparable securities	Liquidity premium	1%	—


Equity securities	33		33		Market comparable securities	Liquidity 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 swap	Mortality	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 – derivatives	2		2		Credit default swap	Credit spread	0-1% (0%)	0-1% (0%)
						Probability of default	0-6% (0%)	0-8% (0%)
Liabilities:
Interest-sensitive contract liabilities – embedded derivatives – indexed products	354		435		Discounted cash flow	Mortality	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 – derivatives	2		2		Credit default swap	Credit spread	0-1% (0%)	0-1% (0%)
						Probability of default	0-6% (0%)	0-8% (0%)

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


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
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-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 income	3		—		—		—		—		—		—		—		—
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
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-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 income	7		—		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 3	2		—		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.


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
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-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 income	4		—		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 3	1		—		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.


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
	Corporate		Foreign govt		Structured securities		U.S. and local govt		Equity securities		Short-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 income	6		—		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 3	1		—		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.

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, 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 1		Level 2		Level 3
Assets:
Mortgage loans	$	10,057	$	9,523	$	—	$	—	$	9,523
Policy loans	1,294		1,294		—		1,294		—
Funds withheld at interest	7,306		6,971		—		—		6,971
Limited partnerships – cost method	69		99		—		—		99
Cash and cash equivalents	1,869		1,869		1,869		—		—
Short-term investments	39		39		39		—		—
Other invested assets	1,220		1,023		—		71		952
Accrued investment income	1,089		1,089		—		1,089		—
Liabilities:
Interest-sensitive contract liabilities (2)	$	27,787	$	27,766	$	—	$	—	$	27,766
Funds withheld at interest	5,003		4,765		—		—		4,765
Long-term debt	5,734		5,586		—		—		5,586


December 31, 2024:
Assets:
Mortgage loans	$	8,839	$	8,422	$	—	$	—	$	8,422
Policy loans	1,321		1,321		—		1,321		—
Funds withheld at interest	5,596		5,296		—		—		5,296
Limited partnerships – cost method	64		88		—		—		88
Cash and cash equivalents	1,271		1,271		1,271		—		—
Short-term investments	50		50		50		—		—
Other invested assets	1,064		862		3		71		788
Accrued investment income	986		986		—		986		—
Liabilities:
Interest-sensitive contract liabilities (2)	$	25,817	$	25,540	$	—	$	—	$	25,540
Funds withheld at interest	5,177		4,960		—		—		4,960
Long-term debt	5,042		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.

- 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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