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Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Assets and Liabilities Carrying at Fair Value on Recurring Basis
The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, with the exception of investment contracts, portions of other long-term investments and debt which are disclosed later within this footnote, was summarized according to the hierarchy previously described, as follows (in millions):
June 30, 2021
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $3,471 $— $— $3,471 $3,471 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 5,095 2,309 7,404 7,404 
Commercial mortgage-backed securities— 2,921 25 2,946 2,946 
Corporates37 13,453 1,201 14,691 14,691 
Hybrids150 814 — 964 964 
Municipals— 1,403 43 1,446 1,446 
Residential mortgage-backed securities— 358 443 801 801 
U.S. Government1,059 — — 1,059 1,059 
Foreign Governments— 183 17 200 200 
Equity securities1,382 — 8 1,390 1,390 
Preferred securities456 740 2 1,198 1,198 
Derivative investments1 691 — 692 692 
Short term investments115 17 303 435 435 
Other long-term investments— 144 49 193 193 
Total financial assets at fair value$6,671 $25,819 $4,400 $36,890 $36,890 
Liabilities
Derivatives:
FIA embedded derivatives, included in contractholder funds— — 3,759 3,759 3,759 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 107 — 107 107 
Total financial liabilities at fair value$— $107 $3,759 $3,866 $3,866 
December 31, 2020
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $2,719 $— $— $2,719 $2,719 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 4,916 1,350 6,266 6,266 
Commercial mortgage-backed securities— 2,803 26 2,829 2,829 
Corporates25 13,421 1,289 14,735 14,735 
Hybrids175 815 4 994 994 
Municipals— 1,360 43 1,403 1,403 
Residential mortgage-backed securities— 342 483 825 825 
U.S. Government342 — — 342 342 
Foreign Governments— 176 17 193 193 
Equity securities791 — 5 796 796 
Preferred securities490 851 — 1,341 1,341 
Subscription agreements (1)— 199 — 199 199 
Derivative investments— 548 — 548 548 
Short term investments769 — — 769 769 
Other long-term investments— — 50 50 50 
Total financial assets at fair value$5,311 $25,431 $3,267 $34,009 $34,009 
Liabilities
Fair value of future policy benefits— — 5 5 5 
Derivatives:
FIA embedded derivatives, included in contractholder funds— — 3,404 3,404 3,404 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 101 — 101 101 
Total financial liabilities at fair value$— $101 $3,409 $3,510 $3,510 
(1) Included within equity securities in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2020.
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
June 30, 2021
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $73 $— $73 $73 
Commercial mortgage loans— — 1,615 1,615 1,586 
Residential mortgage loans— — 1,180 1,180 1,208 
Policy loans— — 36 36 36 
Company-owned life insurance— — 324 324 324 
Trade and notes receivables, net of allowance — — 500 500 500 
Total$— $73 $3,655 $3,728 $3,727 
Liabilities
Investment contracts, included in contractholder funds$— $— $24,509 $24,509 $28,298 
Debt— 2,853 — 2,853 2,663 
Total$— $2,853 $24,509 $27,362 $30,961 
December 31, 2020
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $66 $— $66 $66 
Commercial mortgage loans— — 926 926 903 
Residential mortgage loans— — 1,123 1,123 1,128 
Policy loans— — 33 33 33 
Other invested assets— — 28 28 28 
Company-owned life insurance— — 305 305 305 
Trade and notes receivables, net of allowance— — 437 437 437 
Total$— $66 $2,852 $2,918 $2,900 
Liabilities
Investment contracts, included in contractholder funds$— $— $21,719 $21,719 $25,199 
Debt— 2,896 — 2,896 2,662 
Total$— $2,896 $21,719 $24,615 $27,861 
Schedule of Unobservable Inputs Used for Level Three Fair Value Measurements of Financial Instruments on Recurring Basis Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of June 30, 2021 and December 31, 2020 are as follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
June 30, 2021
(in millions)June 30, 2021
Assets
Asset-backed securities$2,142 Broker-quotedOffered quotes
51.65% - 139.91% (95.37)%
Asset-backed securities167 Third-Party ValuationOffered quotes
93.75% - 104.70% (102.13)%
Commercial mortgage-backed securities25 Broker-quotedOffered quotes
129.75% - 129.75% (129.75)%
Corporates372 Broker-quotedOffered quotes
92.96% - 111.84% (103.01)%
Corporates 16 Discounted Cash FlowDiscount Rate
44.00% - 100.00% N/A
Corporates813 Third-Party ValuationOffered quotes
86.56% - 122.65% (108.24)%
Municipals43 Third-Party ValuationOffered quotes
136.02% - 136.02% (136.02)%
Residential mortgage-backed securities443 Broker-quotedOffered quotes
0.00% - 114.49% (114.49)%
Foreign governments17 Third-Party ValuationOffered quotes
107.66% - 112.96% (109.32)%
Short-term303 Broker-quotedOffered quotes
98.57% - 100.00%
(99.39)%
Preferred securities2 Income-ApproachYield
2.53%
Equity securities2 Black Scholes model Risk Free Rate
0.50% - 0.50% (0.50%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
120.00% - 120.00% (120.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities2 Broker Quoted Offered quotes
Equity securities4 Discounted Cash Flow Discount rate
12.40% - 12.40% (12.40%)
Market Comparable Company Analysis EBITDA multiple
6.6x - 6.6x (6.6x)
Other long-term assets:
Available-for-sale embedded derivative30 Third-Party ValuationMarket value of fund
100.00%
Credit Linked Note19 Broker-quotedOffered quotes
100.00%
Total financial assets at fair value$4,400 
Liabilities
Derivatives:
FIA embedded derivatives, included in contractholder funds3,759 Discounted cash flowMarket value of option
0.00% - 28.12% (3.00%)
Swap rates
0.05% - 2.06% (1.06%)
Mortality multiplier
100.00% - 100.00% (100.00%)
Surrender rates
0.25% - 55.00% (5.42%)
Partial withdrawals
2.00% - 3.50% (2.63%)
Non-performance spread
0.68% - 0.68% (0.68%)
Option cost
0.00% - 4.81% (1.71%)
Total financial liabilities at fair value$3,759 
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2020
(in millions)December 31, 2020
Assets
Asset-backed securities$1,175 Broker-quotedOffered quotes
85% - 126.15% (103.96%)
Asset-backed securities175 Third-Party ValuationOffered quotes
0.00% - 107.25% (79.87%)
Commercial mortgage-backed securities26 Broker-quotedOffered quotes
131.59% - 131.59% (131.59%)
Corporates388 Broker-quotedOffered quotes
75.20% - 114.68% ( 103.36%)
Corporates901 Third-Party ValuationOffered quotes
88.42% - 125.83% (109.47%)
Hybrids4 Third-Party ValuationOffered quotes
112.06% - 112.06% ( 112.06%)
Municipals43 Third-Party ValuationOffered quotes
133.53% - 133.53% (133.53%)
Residential mortgage-backed securities483 Broker-quotedOffered quotes
112.58% - 112.58% (112.58%)
Foreign governments17 Third-Party ValuationOffered quotes
107.87% - 113.80% (109.72%)
Equity securities1 Income-ApproachYield 2.61%
Equity securities1 Black Scholes model Risk Free Rate
0.29% - 0.29% (0.29%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
1.00% - 1.00% (1.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities3 Discounted Cash Flow Discount rate
10.60% - 10.60% (10.60%)
Market Comparable Company Analysis EBITDA multiple
6.6x - 6.6x (6.6x)
Other long-term assets:
Available-for-sale embedded derivative27 Third-Party ValuationMarket value of fund
100.00%
Credit Linked Note23 Broker-quotedOffered quotes
100.00%
Total financial assets at fair value$3,267 
Liabilities
Future policy benefits 5 Discounted cash flowNon-performance spread
0.00%
Risk margin to reflect uncertainty0.50%
Derivatives:
FIA embedded derivatives, included in contractholder funds3,404 Discounted cash flowMarket value of option
0.00% - 67.65% (2.25%)
Treasury rates
0.08% - 1.65% (0.87%)
Mortality multiplier
100.00% - 100.00% (100.00%)
Surrender rates
0.25% - 55.00% (5.24%)
Partial withdrawals
2.00% - 3.50% (2.58%)
Non-performance spread
0.74% - 0.74% (0.74%)
Option cost
0.05% - 16.61% (2.25%)
Total financial liabilities at fair value$3,409 
Changes in Fair Value of Financial Instruments - Assets
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2021 and 2020. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended June 30, 2021
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$1,593 $— $20 $813 $— $(90)$(27)$2,309 $18 
Commercial mortgage-backed securities25 — — — — — — 25 — 
Corporates1,247 2 16 18 (7)(76)1 1,201 18 
Municipals41 — 2 — — — — 43 3 
Residential mortgage-backed securities487 — (10)5 — (39)— 443 (6)
Foreign Governments17 — — — — — — 17 — 
Short-Term— — 1 302 — — — 303 — 
Equity and preferred securities10 — 1 — (1)— — 10 — 
Other long-term assets:
Available-for-sale embedded derivative28 2 — — — — — 30 — 
Credit linked note19 — — — — — — 19 — 
Total assets at Level 3 fair value$3,467 $4 $30 $1,138 $(8)$(205)$(26)$4,400 $33 
Liabilities
Future policy benefits$4 $— $— $— $(4)$— $— $— $— 
FIA embedded derivatives, included in contractholder funds3,293 466 — — — — — 3,759 — 
Total liabilities at Level 3 fair value$3,297 $466 $— $— $(4)$— $— $3,759 $— 
(a) The net transfers out of Level 3 during the three months ended June 30, 2021 were exclusively to Level 2.
Three months ended June 30, 2020
(in millions)
Balance at Beginning
of Period		F&G AcquisitionTotal Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$— $854 $— $9 $91 $— $(5)$67 $1,016 $9 
Commercial mortgage-backed securities— 26 — — — — — — 26 — 
Corporates14 1,238 — 26 — — (14)— 1,264 26 
Hybrids— 4 — — — — — — 4 — 
Municipals— 38 — 2 — — — — 40 3 
Residential mortgage-backed securities— 534 — (15)1 — (4)(7)509 (13)
Foreign Governments— 16 — — — — — — 16 — 
 Equity securities1 1 (1)— — — — — 1 — 
Other long-term assets:
Available-for-sale embedded derivative— 20 1 — — — — — 21 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$15 $2,754 $— $22 $92 $— $(23)$60 $2,920 $25 
Liabilities
Future policy benefits$— $5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds— 2,852 100 — — — — — 2,952 — 
Total liabilities at Level 3 fair value$— $2,857 $100 $— $— $— $— $— $2,957 $— 
Changes in Fair Value of Financial Instruments - Liabilities
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and six months ended June 30, 2021 and 2020. This summary excludes any impact of amortization of VOBA, DAC and DSI. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended June 30, 2021
(in millions)
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$1,593 $— $20 $813 $— $(90)$(27)$2,309 $18 
Commercial mortgage-backed securities25 — — — — — — 25 — 
Corporates1,247 2 16 18 (7)(76)1 1,201 18 
Municipals41 — 2 — — — — 43 3 
Residential mortgage-backed securities487 — (10)5 — (39)— 443 (6)
Foreign Governments17 — — — — — — 17 — 
Short-Term— — 1 302 — — — 303 — 
Equity and preferred securities10 — 1 — (1)— — 10 — 
Other long-term assets:
Available-for-sale embedded derivative28 2 — — — — — 30 — 
Credit linked note19 — — — — — — 19 — 
Total assets at Level 3 fair value$3,467 $4 $30 $1,138 $(8)$(205)$(26)$4,400 $33 
Liabilities
Future policy benefits$4 $— $— $— $(4)$— $— $— $— 
FIA embedded derivatives, included in contractholder funds3,293 466 — — — — — 3,759 — 
Total liabilities at Level 3 fair value$3,297 $466 $— $— $(4)$— $— $3,759 $— 
(a) The net transfers out of Level 3 during the three months ended June 30, 2021 were exclusively to Level 2.
Three months ended June 30, 2020
(in millions)
Balance at Beginning
of Period		F&G AcquisitionTotal Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$— $854 $— $9 $91 $— $(5)$67 $1,016 $9 
Commercial mortgage-backed securities— 26 — — — — — — 26 — 
Corporates14 1,238 — 26 — — (14)— 1,264 26 
Hybrids— 4 — — — — — — 4 — 
Municipals— 38 — 2 — — — — 40 3 
Residential mortgage-backed securities— 534 — (15)1 — (4)(7)509 (13)
Foreign Governments— 16 — — — — — — 16 — 
 Equity securities1 1 (1)— — — — — 1 — 
Other long-term assets:
Available-for-sale embedded derivative— 20 1 — — — — — 21 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$15 $2,754 $— $22 $92 $— $(23)$60 $2,920 $25 
Liabilities
Future policy benefits$— $5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds— 2,852 100 — — — — — 2,952 — 
Total liabilities at Level 3 fair value$— $2,857 $100 $— $— $— $— $— $2,957 $— 
Schedule of Net Asset Value
The following table includes assets that have not been classified in the fair value hierarchy as the value of these investments are measured using the equity method of accounting or the net asset value ("NAV") per share practical expedient (in millions):
Carrying Value After Measurement
 (in millions)
June 30, 2021December 31, 2020
Investments in unconsolidated affiliates (equity method of accounting)$149 $146 
Equity securities (NAV)$35 — 
Investments in unconsolidated affiliates (NAV)$1,667 1,148