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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements
The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy, including those items for which the Company has elected the FVO, are presented below at:
September 30, 2020
Fair Value Hierarchy
Level 1Level 2Level 3
Total 
Estimated
Fair Value
(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate
$— $53,028 $6,306 $59,334 
U.S. government and agency
14,763 20,174 — 34,937 
Foreign corporate
— 23,033 7,574 30,607 
RMBS
479 22,683 3,116 26,278 
ABS
— 11,604 918 12,522 
Municipals
— 8,971 3 8,974 
CMBS
— 6,490 298 6,788 
Foreign government
— 5,127 7 5,134 
Total fixed maturity securities AFS
15,242 151,110 18,222 184,574 
Short-term investments
2,048 304 — 2,352 
Residential mortgage loans — FVO
— — 176 176 
Other investments
302 314 522 1,138 
Derivative assets: (1)
Interest rate
— 7,468 763 8,231 
Foreign currency exchange rate
— 2,143 3 2,146 
Credit
— 110 17 127 
Equity market
1 640 30 671 
Total derivative assets
1 10,361 813 11,175 
Separate account assets (2)
26,384 97,553 955 124,892 
Total assets (3)
$43,977 $259,642 $20,688 $324,307 
Liabilities
Derivative liabilities: (1)
Interest rate
$— $95 $8 $103 
Foreign currency exchange rate
— 1,308 — 1,308 
Credit
— 5 1 6 
Equity market
13 251 13 277 
Total derivative liabilities
13 1,659 22 1,694 
Embedded derivatives within liability host contracts (4)
— — 2,348 2,348 
Separate account liabilities (2)
18 10 8 36 
Total liabilities
$31 $1,669 $2,378 $4,078 
December 31, 2019
Fair Value Hierarchy
Level 1Level 2Level 3
Total
Estimated
Fair Value
(In millions)
Assets
Fixed maturity securities AFS:
U.S. corporate
$— $53,975 $4,484 $58,459 
Foreign corporate
— 25,403 4,898 30,301 
U.S. government and agency
11,484 17,764 — 29,248 
RMBS
3 20,158 2,612 22,773 
ABS
— 9,459 742 10,201 
Municipals
— 7,849 7 7,856 
CMBS
— 5,679 41 5,720 
Foreign government
— 4,996 10 5,006 
Total fixed maturity securities AFS
11,487 145,283 12,794 169,564 
Short-term investments
1,077 789 17 1,883 
Residential mortgage loans — FVO
— — 188 188 
Other investments
396 56 799 1,251 
Derivative assets: (1)
Interest rate
— 5,690 80 5,770 
Foreign currency exchange rate
— 1,642 — 1,642 
Credit
— 172 32 204 
Equity market
— 439 25 464 
Total derivative assets
— 7,943 137 8,080 
Separate account assets (2)
22,753 94,192 922 117,867 
Total assets (3)
$35,713 $248,263 $14,857 $298,833 
Liabilities
Derivative liabilities: (1)
Interest rate
$— $167 $191 $358 
Foreign currency exchange rate
— 1,225 — 1,225 
Credit
— 11 1 12 
Equity market
5 485 17 507 
Total derivative liabilities
5 1,888 209 2,102 
Embedded derivatives within liability host contracts (4)
— — 1,325 1,325 
Separate account liabilities (2)
1 14 7 22 
Total liabilities
$6 $1,902 $1,541 $3,449 
__________________
(1)Derivative assets are presented within other invested assets on the interim condensed consolidated balance sheets and derivative liabilities are presented within other liabilities on the interim condensed consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation on the interim condensed consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables.
(2)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. Separate account liabilities presented in the tables above represent derivative liabilities.
(3)Total assets included in the fair value hierarchy exclude other limited partnership interests that are measured at estimated fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient. At September 30, 2020 and December 31, 2019, the estimated fair value of such investments was $71 million and $90 million, respectively.
(4)Embedded derivatives within liability host contracts are presented within policyholder account balances and other liabilities on the interim condensed consolidated balance sheets.
Fair Value Inputs, Quantitative Information
The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:
September 30, 2020December 31, 2019Impact of
Increase in Input
on Estimated
Fair Value (2)
Valuation
Techniques
Significant
Unobservable Inputs		RangeWeighted
Average (1)		RangeWeighted
Average (1)
Fixed maturity securities AFS (3)
U.S. corporate and foreign corporate
•
Matrix pricing
•Offered quotes (4)1-1811145-145110Increase
•
Market pricing
•
Quoted prices (4)
2-11710025-131101Increase
RMBS
•
Market pricing
•
Quoted prices (4)
—-14397—-11995Increase (5)
ABS
•
Market pricing
•
Quoted prices (4)
5-106988-10198Increase (5)
Derivatives
Interest rate
•
Present value techniques
•
Swap yield (6)
69-163127190-251Increase (7)
•Repurchase rates (8)(2)-73(6)-6Decrease (7)
Foreign currency exchange rate
•
Present value techniques
•
Swap yield (6)
(34)-(14)(19)(22)-(5)Increase (7)
Credit
•
Present value techniques
•
Credit spreads (9)
97-1009996-100Decrease (7)
•
Consensus pricing
•
Offered quotes (10)
Equity market•
Present value techniques or option pricing models
•
Volatility (11)
27%-31%30%14%-23%Increase (7)
•
Correlation (12)
10%-30%10%10%-30%
Embedded derivatives
Direct and assumed guaranteed minimum benefits
•
Option pricing techniques
•
Mortality rates:
Ages 0 - 400.01%-0.12%0.06%0.01%-0.18%Decrease (13)
Ages 41 - 60
0.05%-0.65%0.30%0.04%-0.57%Decrease (13)
Ages 61 - 115
0.31%-100%1.90%0.26%-100%Decrease (13)
•
Lapse rates:
Durations 1 - 10
0.25%-100%6.86%0.25%-100%Decrease (14)
Durations 11 - 20
4.70%-100%5.18%3%-100%Decrease (14)
Durations 21 - 116
2%-100%5.18%2%-100%Decrease (14)
•
Utilization rates
0%-22%0.17%0%-22%Increase (15)
•
Withdrawal rates
0.25%-10%3.98%0.25%-10%(16)
•
Long-term equity volatilities
16.66%-22.21%18.70%16.24%-21.65%Increase (17)
•
Nonperformance risk spread
0.04%-0.45%0.40%0.03%-0.43%Decrease (18)
__________________
(1)The weighted average for fixed maturity securities AFS and derivatives is determined based on the estimated fair value of the securities. The weighted average for embedded derivatives is determined based on a combination of account values and experience data.
(2)The impact of a decrease in input would have resulted in the opposite impact on estimated fair value. For embedded derivatives, changes to direct and assumed guaranteed minimum benefits are based on liability positions.
(3)Significant increases (decreases) in expected default rates in isolation would have resulted in substantially lower (higher) valuations.
(4)Range and weighted average are presented in accordance with the market convention for fixed maturity securities AFS of dollars per hundred dollars of par.
(5)Changes in the assumptions used for the probability of default would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates.
(6)Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curves are utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
(7)Changes in estimated fair value are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions.
(8)Ranges represent different repurchase rates utilized as components within the valuation methodology and are presented in basis points.
(9)Represents the risk quoted in basis points of a credit default event on the underlying instrument. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps.
(10)At both September 30, 2020 and December 31, 2019, independent non-binding broker quotations were used in the determination of less than 1% of the total net derivative estimated fair value.
(11)Ranges represent the underlying equity volatility quoted in percentage points. Since this valuation methodology uses a range of inputs across multiple volatility surfaces to value the derivative, presenting a range is more representative of the unobservable input used in the valuation.
(12)Ranges represent the different correlation factors utilized as components within the valuation methodology. Presenting a range of correlation factors is more representative of the unobservable input used in the valuation. Increases (decreases) in correlation in isolation will increase (decrease) the significance of the change in valuations.
(13)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
(14)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
(15)The utilization rate assumption estimates the percentage of contractholders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract’s withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
(16)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value.
(17)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative.
(18)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative.
Fair Value, Measured on Recurring Basis, Unobservable Input Reconciliation The following tables summarize the change of all assets (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 Fixed Maturity Securities AFS
 Corporate (6)Structured
Products		Foreign
Government		MunicipalsShort-term
Investments
 (In millions)
Three Months Ended September 30, 2020
Balance, beginning of period
$12,978 $4,546 $15 $— $— 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
(3)23 — — — 
Total realized/unrealized gains (losses) included in AOCI
409 80 — 1 — 
Purchases (3)
705 263 — 2 — 
Sales (3)
(485)(282)— — — 
Issuances (3)
— — — — — 
Settlements (3)
— — — — — 
Transfers into Level 3 (4)
512 26 — — — 
Transfers out of Level 3 (4)
(236)(324)(8)— — 
Balance, end of period
$13,880 $4,332 $7 $3 $— 
Three Months Ended September 30, 2019
Balance, beginning of period
$7,650 $3,242 $10 $7 $113 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
(11)10 — — 1 
Total realized/unrealized gains (losses) included in AOCI
79 — — — — 
Purchases (3)
732 425 — — 251 
Sales (3)
(203)(116)— — (2)
Issuances (3)
— — — — — 
Settlements (3)
— — — — — 
Transfers into Level 3 (4)
527 — — — — 
Transfers out of Level 3 (4)
(58)(104)— — — 
Balance, end of period
$8,716 $3,457 $10 $7 $363 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (5)$(5)$13 $— $— $— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2019 (5)$(4)$10 $— $— $1 
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2020 (5)$401 $80 $— $1 $— 
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 Residential
Mortgage
Loans - FVO
Other
Investments
Net
Derivatives (7)		Net Embedded
Derivatives (8)		Separate
Accounts (9) 
 (In millions)
Three Months Ended September 30, 2020
Balance, beginning of period
$175 $696 $938 $(2,571)$912 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
6 14 5 270 — 
Total realized/unrealized gains (losses) included in AOCI
— — (20)— — 
Purchases (3)
— — — — 72 
Sales (3)
— (60)— — (26)
Issuances (3)
— — — — (2)
Settlements (3)
(5)— (132)(47)— 
Transfers into Level 3 (4)
— — — — — 
Transfers out of Level 3 (4)
— (128)— — (9)
Balance, end of period
$176 $522 $791 $(2,348)$947 
Three Months Ended September 30, 2019
Balance, beginning of period
$262 $620 $73 $(1,219)$925 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
2 5 81 (424)5 
Total realized/unrealized gains (losses) included in AOCI
— — 215 — — 
Purchases (3)
— 51 — — 89 
Sales (3)
(39)(22)— — (88)
Issuances (3)
— — — — — 
Settlements (3)
(7)— (115)(52)(2)
Transfers into Level 3 (4)
— — — — — 
Transfers out of Level 3 (4)
— — — — — 
Balance, end of period
$218 $654 $254 $(1,695)$929 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (5)$6 $13 $1 $266 $— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2019 (5)$(8)$6 $28 $(423)$— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2020 (5)$— $— $(28)$— $— 
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 Fixed Maturity Securities AFS
 Corporate (6)Structured
Products		Foreign
Government		MunicipalsShort-term
Investments
 (In millions)
Nine Months Ended September 30, 2020
Balance, beginning of period
$9,382 $3,395 $10 $7 $17 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
(85)29 — — — 
Total realized/unrealized gains (losses) included in AOCI
157 (18)— 1 — 
Purchases (3)
2,307 1,555 — 2 — 
Sales (3)
(823)(570)(1)— (2)
Issuances (3)
— — — — — 
Settlements (3)
— — — — — 
Transfers into Level 3 (4)
3,339 57 — — — 
Transfers out of Level 3 (4)
(397)(116)(2)(7)(15)
Balance, end of period
$13,880 $4,332 $7 $3 $— 
Nine Months Ended September 30, 2019
Balance, beginning of period
$7,101 $3,541 $10 $— $25 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
(13)34 — — 1 
Total realized/unrealized gains (losses) included in AOCI
439 41 — — (1)
Purchases (3)
1,495 597 — 7 363 
Sales (3)
(483)(408)(1)— (25)
Issuances (3)
— — — — — 
Settlements (3)
— — — — — 
Transfers into Level 3 (4)
484 1 1 — — 
Transfers out of Level 3 (4)
(307)(349)— — — 
Balance, end of period
$8,716 $3,457 $10 $7 $363 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (5)$(48)$34 $— $— $— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2019 (5)$(8)$33 $— $— $1 
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2020 (5)$135 $(18)$— $1 $— 
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 Residential
Mortgage
Loans - FVO
Other
 Investments
Net
Derivatives (7)		Net Embedded
Derivatives (8)
Separate
Accounts (9) 
 (In millions)
Nine Months Ended September 30, 2020
Balance, beginning of period
$188 $799 $(72)$(1,325)$915 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
10 18 236 (889)1 
Total realized/unrealized gains (losses) included in AOCI
— — 993 — — 
Purchases (3)
— 31 — — 119 
Sales (3)
(7)(97)— — (90)
Issuances (3)
— — — — (4)
Settlements (3)
(15)— (366)(134)1 
Transfers into Level 3 (4)
— — — — 10 
Transfers out of Level 3 (4)
— (229)— — (5)
Balance, end of period
$176 $522 $791 $(2,348)$947 
Nine Months Ended September 30, 2019
Balance, beginning of period
$299 $571 $(192)$(704)$937 
Total realized/unrealized gains (losses) included in net income (loss) (1), (2)
8 63 51 (847)10 
Total realized/unrealized gains (losses) included in AOCI
— — 439 — — 
Purchases (3)
— 80 4 — 129 
Sales (3)
(64)(60)— — (146)
Issuances (3)
— — (1)— 2 
Settlements (3)
(25)— (47)(144)(3)
Transfers into Level 3 (4)
— — — — — 
Transfers out of Level 3 (4)
— — — — — 
Balance, end of period
$218 $654 $254 $(1,695)$929 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2020 (5)$6 $20 $52 $(894)$— 
Changes in unrealized gains (losses) included in net income (loss) for the instruments still held at September 30, 2019 (5)$(7)$55 $36 $(843)$— 
Changes in unrealized gains (losses) included in AOCI for the instruments still held at September 30, 2020 (5)$— $— $801 $— $— 
__________________
(1)Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses), while changes in estimated fair value of residential mortgage loans — FVO are included in net investment income. Lapses associated with net embedded derivatives are included in net derivative gains (losses). Substantially all realized/unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).
(2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward.
(3)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements.
(4)Items transferred into and then out of Level 3 in the same period are excluded from the rollforward.
(5)Changes in unrealized gains (losses) included in net income (loss) and included in AOCI relate to assets and liabilities still held at the end of the respective periods. Substantially all changes in unrealized gains (losses) included in net income (loss) for net derivatives and net embedded derivatives are reported in net derivative gains (losses).
(6)Comprised of U.S. and foreign corporate securities.
(7)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward.
(8)Embedded derivative assets and liabilities are presented net for purposes of the rollforward.
(9)Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders within separate account liabilities. Therefore, such changes in estimated fair value are not recorded in net income (loss). For the purpose of this disclosure, these changes are presented within net investment gains (losses). Separate account assets and liabilities are presented net for the purposes of the rollforward.
Fair Value Option The following table presents information for residential mortgage loans, which are accounted for under the FVO and were initially measured at fair value.
September 30, 2020December 31, 2019
(In millions)
Unpaid principal balance$185 $209 
Difference between estimated fair value and unpaid principal balance(9)(21)
Carrying value at estimated fair value$176 $188 
Loans in nonaccrual status$48 $47 
Loans more than 90 days past due$24 $18 
Loans in nonaccrual status or more than 90 days past due, or both — difference between aggregate estimated fair value and unpaid principal balance
$(15)$(19)
Fair Value Measurements, Nonrecurring
The following table presents information for assets measured at estimated fair value on a nonrecurring basis during the periods and still held at the reporting dates (for example, when there is evidence of impairment). The estimated fair values for these assets were determined using significant unobservable inputs (Level 3).
September 30,Three Months Ended September 30,Nine Months Ended
September 30,
202020192020201920202019
Carrying Value After MeasurementGains (Losses)
(In millions)
Mortgage loans, net (1)$265 $13 $(30)$— $(38)$— 
__________________
(1)Estimated fair values for impaired mortgage loans are based on estimated fair value of the underlying collateral.
Fair Value of Financial Instruments Carried at Other Than Fair Value
The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:
September 30, 2020
Fair Value Hierarchy
Carrying
Value		Level 1Level 2Level 3Total
Estimated
Fair Value
(In millions)
Assets
Mortgage loans
$65,926 $— $— $69,275 $69,275 
Policy loans
$6,018 $— $264 $7,163 $7,427 
Other invested assets
$2,806 $— $2,527 $136 $2,663 
Premiums, reinsurance and other receivables
$13,916 $— $288 $14,102 $14,390 
Liabilities
Policyholder account balances
$77,736 $— $— $83,223 $83,223 
Long-term debt
$1,606 $— $1,994 $— $1,994 
Other liabilities
$13,798 $— $1,265 $12,883 $14,148 
Separate account liabilities
$59,230 $— $59,230 $— $59,230 

December 31, 2019
Fair Value Hierarchy
Carrying
Value		Level 1Level 2Level 3Total
Estimated
Fair Value
(In millions)
Assets
Mortgage loans
$65,361 $— $— $67,680 $67,680 
Policy loans
$6,100 $— $263 $6,935 $7,198 
Other invested assets
$2,964 $— $2,708 $158 $2,866 
Premiums, reinsurance and other
receivables
$14,042 $— $367 $14,488 $14,855 
Liabilities
Policyholder account balances
$73,693 $— $— $75,885 $75,885 
Long-term debt
$1,543 $— $1,888 $— $1,888 
Other liabilities
$12,789 $— $113 $12,819 $12,932 
Separate account liabilities
$52,830 $— $52,830 $— $52,830