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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Carrying Amount and Estimated Fair Value of Assets and Liabilities 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):
March 31, 2022
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $2,793 $— $— $2,793 $2,793 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 4,897 4,161 9,058 9,058 
Commercial mortgage-backed securities— 3,012 40 3,052 3,052 
Corporates35 14,365 1,141 15,541 15,541 
Hybrids126 723 — 849 849 
Municipals— 1,335 37 1,372 1,372 
Residential mortgage-backed securities— 761 — 761 761 
U.S. Government587 — — 587 587 
Foreign Governments— 241 17 258 258 
Short term investments1,403 324 19 1,746 1,746 
Preferred securities449 833 1 1,283 1,283 
Equity securities1,004 — 10 1,014 1,014 
Derivative investments— 487 — 487 487 
Reinsurance related embedded derivative, included in other assets— 50 — 50 50 
Other long-term investments— — 70 70 70 
Total financial assets at fair value$6,397 $27,028 $5,496 $38,921 $38,921 
Liabilities
Derivatives:
FIA/ IUL embedded derivatives, included in contractholder funds— — 3,395 3,395 3,395 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 1 — 1 1 
Total financial liabilities at fair value$— $1 $3,395 $3,396 $3,396 
December 31, 2021
Level 1Level 2Level 3Fair ValueCarrying Amount
Assets
Cash and cash equivalents $4,360 $— $— $4,360 $4,360 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 4,736 3,959 8,695 8,695 
Commercial mortgage-backed securities— 2,944 35 2,979 2,979 
Corporates37 15,322 1,135 16,494 16,494 
Hybrids132 780 — 912 912 
Municipals— 1,458 43 1,501 1,501 
Residential mortgage-backed securities— 731 — 731 731 
U.S. Government394 — — 394 394 
Foreign Governments— 266 18 284 284 
Short term investments168 2 321 491 491 
Preferred securities506 893 2 1,401 1,401 
Equity securities1,206 — 9 1,215 1,215 
Derivative investments— 816 — 816 816 
Other long-term investments— — 78 78 78 
Total financial assets at fair value$6,803 $27,948 $5,600 $40,351 $40,351 
Liabilities
Derivatives:
FIA/ IUL embedded derivatives, included in contractholder funds— — 3,883 3,883 3,883 
Reinsurance related embedded derivatives, included in accounts payable and accrued liabilities— 73 — 73 73 
Total financial liabilities at fair value$— $73 $3,883 $3,956 $3,956 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
March 31, 2022
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $79 $— $79 $79 
Commercial mortgage loans— — 2,147 2,147 2,231 
Residential mortgage loans— — 1,904 1,904 1,986 
Policy loans— — 40 40 40 
Other invested assets— — 67 67 67 
Company-owned life insurance— — 350 350 350 
Trade and notes receivables, net of allowance — — 529 529 529 
Total$— $79 $5,037 $5,116 $5,282 
Liabilities
Investment contracts, included in contractholder funds$— $— $29,031 $29,031 $32,903 
Debt— 2,929 — 2,929 3,095 
Total$— $2,929 $29,031 $31,960 $35,998 
December 31, 2021
(in millions)
Level 1Level 2Level 3Total Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $72 $— $72 $72 
Commercial mortgage loans— — 2,265 2,265 2,168 
Residential mortgage loans— — 1,549 1,549 1,581 
Policy loans— — 39 39 39 
Other invested assets— — 57 57 57 
Company-owned life insurance— — 333 333 333 
Trade and notes receivables, net of allowance— — 557 557 557 
Total$— $72 $4,800 $4,872 $4,807 
Liabilities
Investment contracts, included in contractholder funds$— $— $27,448 $27,448 $31,529 
Debt— 3,218 — 3,218 3,096 
Total$— $3,218 $27,448 $30,666 $34,625 
Quantitative Information Regarding Significant Unobservable Inputs Used for Recurring Level Three Fair Value Measurements of Financial Instruments Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of March 31, 2022 and December 31, 2021 are as follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
March 31, 2022
(in millions)March 31, 2022
Assets
Asset-backed securities$4,064 Broker-quotedOffered quotes
44.79% - 728.00% (94.48%)
Asset-backed securities97 Third-Party ValuationOffered quotes
86.52% - 103.47% (101.78%)
Commercial mortgage-backed securities23 Broker-quotedOffered quotes
120.24% - 120.24% (120.24%)
Commercial mortgage-backed securities17 Third Party ValuationOffered quotes
77.78% - 92.37%
(86.30%)
Corporates456 Broker-quotedOffered quotes
0.00% - 124.44% (94.94%)
Corporates 14 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (77.00%)
Corporates671 Third-Party ValuationOffered quotes
81.09% - 113.62% (99.17%)
Municipals37 Third-Party ValuationOffered quotes
118.69% - 118.69% (118.69%)
Foreign Governments17 Third-Party ValuationOffered quotes
104.86% - 113.31% (107.50%)
Short term investments19 Third-Party ValuationOffered quotes
94.33% - 95.49%
(94.91%)
Preferred securities1 Income-ApproachYield
2.43%
Equity securities2 Black Scholes model Risk Free Rate
1.00% - 1.00% (1.00%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
81.00% - 81.00% (81.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities4 Broker Quoted Offered quotes
$50.00 - $55.00 ($52.50)
Equity securities4 Discounted Cash Flow Discount rate
11.10% - 11.10% (11.10%)
Market Comparable Company Analysis EBITDA multiple
4.8x - 4.8x (4.8x)
Other long-term investments:
Available-for-sale embedded derivative30 Black Scholes modelMarket value of fund
100.00%
Credit Linked Note19 Broker-quotedOffered quotes
100.00%
Investment in affiliate21 Market Comparable Company AnalysisEBITDA multiple
8x-8x
Total financial assets at fair value$5,496 
Liabilities
Derivative investments:
FIA/ IUL embedded derivatives, included in contractholder funds$3,395 Discounted cash flowMarket value of option
0.00% - 26.75% (1.74%)
Swap rates
0.17% - 2.59% (1.38%)
Mortality multiplier
100.00% - 100.00% (100.00%)
Surrender rates
0.25% - 70.00% (6.24%)
Partial withdrawals
2.00% - 23.26% (2.73%)
Non-performance spread
0.49% - 1.23% (1.01%)
Option cost
0.00% - 4.97% (1.82%)
Total financial liabilities at fair value$3,395 
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2021
(in millions)December 31, 2021
Assets
Asset-backed securities$3,844 Broker-quotedOffered quotes
52.56% - 260.70%
(97.06%)
Asset-backed securities115 Third-Party ValuationOffered quotes
93.02% - 108.45%
(104.95%)
Commercial mortgage-backed securities24 Broker-quotedOffered quotes
126.70% - 126.70%
(126.70%)
Commercial mortgage-backed securities11 Third Party ValuationOffered quotes
97.91% - 97.91%
(97.91%)
Corporates380 Broker-quotedOffered quotes
0.00% - 109.69%
(100.91%)
Corporates741 Third-Party ValuationOffered quotes
85.71% - 119.57%
(107.72%)
Corporates 14 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (62.00%)
Municipals43 Third-Party ValuationOffered quotes
135.09% - 135.09%
(135.09%)
Foreign Governments18Third-Party ValuationOffered quotes
107.23% - 116.44%
(110.11%)
Short term investments321Broker-quotedOffered quotes
100.00% - 100.00%
(100.00%)
Preferred securities2Income-ApproachYield
2.43%
Equity securities3Broker Quoted Offered quotes
$6.23 - $6.23 ($6.23)
Equity securities2Black Scholes model Risk Free Rate
1.00% -1.00% (1.00%)
 Strike Price
$1.50 - $1.50 ($1.50)
 Volatility
81.00% - 81.00%
(81.00%)
 Dividend Yield
0.00% - 0.00% (0.00%)
Equity securities4 Discounted Cash Flow Discount rate
12.70% - 12.70%
(12.70%)
Market Comparable Company AnalysisEBITDA multiple
5.9x - 5.9x (5.9x)
Other long-term investments:
Available-for-sale embedded derivative34 Black Scholes modelMarket value of fund
100.00%
Credit Linked Note23 Broker-quotedOffered quotes
100.00%
Investment in affiliate21 Market Comparable Company AnalysisEBITDA multiple
8x-8x
Total financial assets at fair value$5,600 
Liabilities
Future policy benefits — Discounted cash flowNon-performance spread
0.50%
Derivative investments:
FIA/ IUL embedded derivatives, included in contractholder funds3,883 Discounted cash flowMarket value of option
0.00% - 38.72%
(3.16%)
Swap rates
0.05% - 1.94%
(1.00%)
Mortality multiplier
100.00% - 100.00%
(100.00%)
Surrender rates
0.25% - 70.00%
(6.26%)
Partial withdrawals
2.00% - 23.26%
(2.72%)
Non-performance spread
0.43% - 1.01% (0.68%)
Option cost
0.07% - 4.97%
(1.83%)
Total financial liabilities at fair value$3,883 
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 months ended March 31, 2022 and 2021. 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 March 31, 2022
(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$3,959 $— $(130)$400 $— $(152)$84 $4,161 $(138)
Commercial mortgage-backed securities35 — (2)— — — 7 40 (2)
Corporates1,135 — (74)80 — (26)26 1,141 (73)
Municipals43 — (6)— — — — 37 (5)
Residential mortgage-backed securities— — — — — — — — — 
Foreign Governments18 — (1)— — — — 17 (1)
Short term investments321 — (1)20 — — (321)19 (1)
Preferred securities2 — (1)— — — — 1 (1)
Equity securities9 — — 1 — — — 10 — 
Other long-term investments:
Available-for-sale embedded derivative34 (4)— — — — — 30 — 
Investment in affiliate21 — — — — — — 21 — 
Credit linked note23 — (3)— — (1)— 19 — 
Total Level 3 assets at fair value$5,600 $(4)$(218)$501 $— $(179)$(204)$5,496 $(221)
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,883 (488)— — — — — 3,395 — 
Total Level 3 liabilities at fair value$3,883 $(488)$— $— $— $— $— $3,395 $— 
(a) The net transfers out of Level 3 during the three months ended March 31, 2022 were exclusively to Level 2.
Three months ended March 31, 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$1,350 $— $(23)$358 $— $(92)$— $1,593 $(4)
Commercial mortgage-backed securities26 — (1)— — — — 25 1 
Corporates1,289 6 (39)40 (5)(31)(14)1,246 19 
Hybrids4 — — — — (4)— — — 
Municipals43 — (2)— — — — 41 4 
Residential mortgage-backed securities483 — 12 5 — (13)— 487 27 
Foreign Governments17 — — — — — — 17 2 
 Equity securities5 1 — 3 — — — 9 — 
Other long-term investments:
Available-for-sale embedded derivative27 2 — — — — — 29 — 
Credit linked note23 — (4)— — — — 19 — 
Total Level 3 assets at fair value$3,267 $9 $(57)$406 $(5)$(140)$(14)$3,466 $49 
Liabilities
Future policy benefits$5 $— $— $— $— $(1)$— $4 $— 
FIA/IUL embedded derivatives, included in contractholder funds3,404 (111)— — — — — 3,293 — 
Total Level 3 liabilities at fair value$3,409 $(111)$— $— $— $(1)$— $3,297 $— 
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 months ended March 31, 2022 and 2021. 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 March 31, 2022
(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$3,959 $— $(130)$400 $— $(152)$84 $4,161 $(138)
Commercial mortgage-backed securities35 — (2)— — — 7 40 (2)
Corporates1,135 — (74)80 — (26)26 1,141 (73)
Municipals43 — (6)— — — — 37 (5)
Residential mortgage-backed securities— — — — — — — — — 
Foreign Governments18 — (1)— — — — 17 (1)
Short term investments321 — (1)20 — — (321)19 (1)
Preferred securities2 — (1)— — — — 1 (1)
Equity securities9 — — 1 — — — 10 — 
Other long-term investments:
Available-for-sale embedded derivative34 (4)— — — — — 30 — 
Investment in affiliate21 — — — — — — 21 — 
Credit linked note23 — (3)— — (1)— 19 — 
Total Level 3 assets at fair value$5,600 $(4)$(218)$501 $— $(179)$(204)$5,496 $(221)
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,883 (488)— — — — — 3,395 — 
Total Level 3 liabilities at fair value$3,883 $(488)$— $— $— $— $— $3,395 $— 
(a) The net transfers out of Level 3 during the three months ended March 31, 2022 were exclusively to Level 2.
Three months ended March 31, 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$1,350 $— $(23)$358 $— $(92)$— $1,593 $(4)
Commercial mortgage-backed securities26 — (1)— — — — 25 1 
Corporates1,289 6 (39)40 (5)(31)(14)1,246 19 
Hybrids4 — — — — (4)— — — 
Municipals43 — (2)— — — — 41 4 
Residential mortgage-backed securities483 — 12 5 — (13)— 487 27 
Foreign Governments17 — — — — — — 17 2 
 Equity securities5 1 — 3 — — — 9 — 
Other long-term investments:
Available-for-sale embedded derivative27 2 — — — — — 29 — 
Credit linked note23 — (4)— — — — 19 — 
Total Level 3 assets at fair value$3,267 $9 $(57)$406 $(5)$(140)$(14)$3,466 $49 
Liabilities
Future policy benefits$5 $— $— $— $— $(1)$— $4 $— 
FIA/IUL embedded derivatives, included in contractholder funds3,404 (111)— — — — — 3,293 — 
Total Level 3 liabilities at fair value$3,409 $(111)$— $— $— $(1)$— $3,297 $— 
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 net asset value ("NAV") is used as a practical expedient in determining fair value:
Carrying Amount
 (in millions)
March 31, 2022December 31, 2021
Investments in unconsolidated affiliates $153 $136 
Equity securities (NAV)47 48 
Investments in unconsolidated affiliates (a)2,696 2,350 
$2,896 $2,534 
(a) The fair value of these investments using the NAV practical expedient and their carrying amount are generally equal.