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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 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):
September 30, 2021
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $5,148 $— $— $5,148 $5,148 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 4,947 3,244 8,191 8,191 
Commercial mortgage-backed securities— 2,988 36 3,024 3,024 
Corporates37 14,027 1,113 15,177 15,177 
Hybrids132 791 — 923 923 
Municipals— 1,325 43 1,368 1,368 
Residential mortgage-backed securities— 347 394 741 741 
U.S. Government805 — — 805 805 
Foreign Governments— 188 18 206 206 
Equity securities1,349 — 9 1,358 1,358 
Preferred securities448 751 3 1,202 1,202 
Derivative investments— 581 — 581 581 
Short term investments333 2 192 527 527 
Other long-term investments— — 51 51 51 
Total financial assets at fair value$8,252 $25,947 $5,103 $39,302 $39,302 
Liabilities
Derivatives:
FIA embedded derivatives, included in contractholder funds— — 3,439 3,439 3,439 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 84 — 84 84 
Total financial liabilities at fair value$— $84 $3,439 $3,523 $3,523 
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 $3,510 
(1) Included within equity securities in the accompanying Condensed Consolidated Balance Sheets as of December 31, 2020.
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
September 30, 2021
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $72 $— $72 $72 
Commercial mortgage loans— — 2,011 2,011 1,984 
Residential mortgage loans— — 1,473 1,473 1,500 
Policy loans— — 37 37 37 
Other invested assets— — 5 5 5 
Company-owned life insurance— — 327 327 327 
Trade and notes receivables, net of allowance — — 523 523 523 
Total$— $72 $4,376 $4,448 $4,448 
Liabilities
Investment contracts, included in contractholder funds$— $— $26,953 $26,953 $30,425 
Debt— 3,247 — 3,247 3,097 
Total$— $3,247 $26,953 $30,200 $33,522 
December 31, 2020
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $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 September 30, 2021 and December 31, 2020 are as follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
September 30, 2021
(in millions)September 30, 2021
Assets
Asset-backed securities$3,105 Broker-quotedOffered quotes
53.66% - 145.43% (97.03%)
Asset-backed securities139 Third-Party ValuationOffered quotes
95.55% - 107.08% (103.58%)
Commercial mortgage-backed securities36 Broker-quotedOffered quotes
101.04% - 127.33% (117.40%)
Corporates344 Broker-quotedOffered quotes
93.33% - 113.92% (103.68%)
Corporates 13 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (78.00%)
Corporates756 Third-Party ValuationOffered quotes
86.58% - 121.41% (108.34%)
Municipals43 Third-Party ValuationOffered quotes
134.75% - 134.75% (134.75%)
Residential mortgage-backed securities394 Broker-quotedOffered quotes
0.00% - 115.44% (115.44%)
Foreign governments18 Third-Party ValuationOffered quotes
108.78% - 116.83% (111.29%)
Short-term192 Broker-quotedOffered quotes
100.00% - 100.00%
(100.00%)
Preferred securities3 Income-ApproachYield
2.49%
Equity securities2 Black Scholes model Risk Free Rate
0.50% - 0.50% (0.50%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
150.00% - 150.00% (150.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities3 Broker Quoted Offered quotes
44.00% - 100.00% (78.00%)
Equity securities4 Discounted Cash Flow Discount rate
13.37% - 13.37% (13.37%)
Market Comparable Company Analysis EBITDA multiple
6.6x - 6.6x (6.6x)
Other long-term assets:
Available-for-sale embedded derivative31 Third-Party ValuationMarket value of fund
100.00%
Credit Linked Note20 Broker-quotedOffered quotes
100.00%
Total financial assets at fair value$5,103 
Liabilities
Derivatives:
FIA embedded derivatives, included in contractholder funds$3,439 Discounted cash flowMarket value of option
0.00% - 28.41% (2.48%)
Swap rates
0.01% - 2.41% (1.21%)
Mortality multiplier
100.00% - 100.00% (100.00%)
Surrender rates
0.25% - 70.00% (6.19%)
Partial withdrawals
2.00% - 21.74% (2.72%)
Non-performance spread
0.30% - 0.93% (0.62%)
Option cost
0.00% - 4.97% (1.81%)
Total financial liabilities at fair value$3,439 
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 nine months ended September 30, 2021 and 2020. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“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 September 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$2,309 $(1)$14 $1,188 $(97)$(125)$(44)$3,244 $11 
Commercial mortgage-backed securities25 — (1)12 — — — 36 — 
Corporates1,201 (1)(3)19 (14)(89)— 1,113 (2)
Municipals43 — — — — — — 43 — 
Residential mortgage-backed securities443 — (3)4 — (50)— 394 1 
Foreign Governments17 — 1 — — — — 18 — 
Short-Term303 — 1 192 — (304)— 192 1 
Equity and preferred securities10 (1)1 2 — — — 12 — 
Other long-term assets:
Available-for-sale embedded derivative30 1 — — — — — 31 — 
Credit linked note19 — 1 — — — — 20 — 
Total assets at Level 3 fair value$4,400 $(2)$11 $1,417 $(111)$(568)$(44)$5,103 $11 
Liabilities
FIA embedded derivatives, included in contractholder funds3,759 (320)— — — — — 3,439 — 
Total liabilities at Level 3 fair value$3,759 $(320)$— $— $— $— $— $3,439 $— 
(a) The net transfers out of Level 3 during the three months ended September 30, 2021 were exclusively to Level 2.
Three months ended September 30, 2020
(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$1,016 $(1)$11 $118 $(1)$(109)$(90)$944 $12 
Commercial mortgage-backed securities26 — — — — — — 26 1 
Corporates1,264 (1)21 3 — (20)— 1,267 19 
Hybrids4 — — — — — — 4 — 
Municipals40 — 2 — — — — 42 2 
Residential mortgage-backed securities509 — 12 5 — (25)— 501 14 
Foreign Governments16 — — — — — — 16 — 
 Equity securities1 1 — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative21 2 — — — — — 23 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$2,920 $1 $46 $128 $(1)$(154)$(90)$2,850 $48 
Liabilities
Future policy benefits$5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds2,952 209 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$2,957 $209 $— $— $— $— $— $3,166 $— 
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 nine months ended September 30, 2021 and 2020. This summary excludes any impact of amortization of value of business acquired (“VOBA”), deferred acquisition cost (“DAC”), and deferred sales inducements (“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 September 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$2,309 $(1)$14 $1,188 $(97)$(125)$(44)$3,244 $11 
Commercial mortgage-backed securities25 — (1)12 — — — 36 — 
Corporates1,201 (1)(3)19 (14)(89)— 1,113 (2)
Municipals43 — — — — — — 43 — 
Residential mortgage-backed securities443 — (3)4 — (50)— 394 1 
Foreign Governments17 — 1 — — — — 18 — 
Short-Term303 — 1 192 — (304)— 192 1 
Equity and preferred securities10 (1)1 2 — — — 12 — 
Other long-term assets:
Available-for-sale embedded derivative30 1 — — — — — 31 — 
Credit linked note19 — 1 — — — — 20 — 
Total assets at Level 3 fair value$4,400 $(2)$11 $1,417 $(111)$(568)$(44)$5,103 $11 
Liabilities
FIA embedded derivatives, included in contractholder funds3,759 (320)— — — — — 3,439 — 
Total liabilities at Level 3 fair value$3,759 $(320)$— $— $— $— $— $3,439 $— 
(a) The net transfers out of Level 3 during the three months ended September 30, 2021 were exclusively to Level 2.
Three months ended September 30, 2020
(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$1,016 $(1)$11 $118 $(1)$(109)$(90)$944 $12 
Commercial mortgage-backed securities26 — — — — — — 26 1 
Corporates1,264 (1)21 3 — (20)— 1,267 19 
Hybrids4 — — — — — — 4 — 
Municipals40 — 2 — — — — 42 2 
Residential mortgage-backed securities509 — 12 5 — (25)— 501 14 
Foreign Governments16 — — — — — — 16 — 
 Equity securities1 1 — 2 — — — 4 — 
Other long-term assets:
Available-for-sale embedded derivative21 2 — — — — — 23 — 
Credit linked note23 — — — — — — 23 — 
Total assets at Level 3 fair value$2,920 $1 $46 $128 $(1)$(154)$(90)$2,850 $48 
Liabilities
Future policy benefits$5 $— $— $— $— $— $— $5 $— 
FIA embedded derivatives, included in contractholder funds2,952 209 — — — — — 3,161 — 
Total liabilities at Level 3 fair value$2,957 $209 $— $— $— $— $— $3,166 $— 
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)
September 30, 2021December 31, 2020
Investments in unconsolidated affiliates (equity method of accounting)$138 $146 
Equity securities (NAV)35 — 
Investments in unconsolidated affiliates (NAV)2,022 1,148