XML 45 R34.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
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:
June 30, 2023
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents $3,136 $— $— $— $3,136 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 6,330 6,510 — 12,840 
Commercial mortgage-backed securities— 3,972 17 — 3,989 
Corporates26 14,475 1,628 — 16,129 
Hybrids95 609 — — 704 
Municipals— 1,554 49 — 1,603 
Residential mortgage-backed securities— 1,988 28 — 2,016 
U.S. Government468 16 — — 484 
Foreign Governments— 248 16 — 264 
Short term investments801 45 126 — 972 
Preferred securities266 531 7 — 804 
Equity securities645 — 14 41 700 
Derivative investments— 649 — — 649 
Investment in unconsolidated affiliates— — 197 — 197 
Reinsurance related embedded derivative, included in other assets— 277 — — 277 
Market risk benefits asset— — 118 — 118 
Other long-term investments— — 49 — 49 
Total financial assets at fair value$5,437 $30,694 $8,759 $41 $44,931 
Liabilities
Derivatives:
FIA/ IUL embedded derivatives, included in contractholder funds— — 3,821 — 3,821 
Market risk benefits liability$— $— $313 $— $313 
Total financial liabilities at fair value$— $— $4,134 $— $4,134 
December 31, 2022
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents $2,286 $— $— $— $2,286 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 5,204 6,263 — 11,467 
Commercial mortgage-backed securities— 3,026 37 — 3,063 
Corporates40 12,857 1,440 — 14,337 
Hybrids93 638 — — 731 
Municipals— 1,431 29 — 1,460 
Residential mortgage-backed securities— 1,225 302 — 1,527 
U.S. Government260 11 — — 271 
Foreign Governments— 223 16 — 239 
Short term investments2,590 — — — 2,590 
Preferred securities320 582 1 — 903 
Equity securities621 — 10 47 678 
Derivative investments— 244 — — 244 
Investment in unconsolidated affiliates— — 23 — 23 
Reinsurance related embedded derivative, included in other assets— 279 — — 279 
Market risk benefits asset— — 117 — 117 
Other long-term investments— — 48 — 48 
Total financial assets at fair value$6,210 $25,720 $8,286 $47 $40,263 
Liabilities
Derivatives:
FIA/ IUL embedded derivatives, included in contractholder funds— — 3,115 — 3,115 
Market risk benefits liability— — 282 — 282 
Total financial liabilities at fair value$— $— $3,397 $— $3,397 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
June 30, 2023
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
FHLB common stock$— $106 $— $— $106 $106 
Commercial mortgage loans— — 2,144 — 2,144 2,457 
Residential mortgage loans— — 2,377 — 2,377 2,619 
Investments in unconsolidated affiliates— — 8 2,598 2,606 2,606 
Policy loans— — 59 — 59 59 
Other invested assets59 — 1 — 60 60 
Company-owned life insurance35 — 352 — 387 387 
Trade and notes receivables, net of allowance — — 465 — 465 465 
Total$94 $106 $5,406 $2,598 $8,204 $8,759 
Liabilities
Investment contracts, included in contractholder funds$— $— $37,228 $— $37,228 $41,249 
Debt— 3,252 — — 3,252 3,696 
Total$— $3,252 $37,228 $— $40,480 $44,945 

December 31, 2022
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
FHLB common stock$— $99 $— $— $99 $99 
Commercial mortgage loans— — 2,083 — 2,083 2,406 
Residential mortgage loans— — 1,892 — 1,892 2,148 
Investments in unconsolidated affiliates— — 5 2,427 2,432 2,432 
Policy loans— — 52 — 52 52 
Other invested assets93 — 16 — 109 109 
Company-owned life insurance— — 363 — 363 363 
Trade and notes receivables, net of allowance— — 467 — 467 467 
Total$93 $99 $4,878 $2,427 $7,497 $8,076 
Liabilities
Investment contracts, included in contractholder funds$— $— $34,464 $— $34,464 $38,412 
Debt— 2,776 — — 2,776 3,238 
Total$— $2,776 $34,464 $— $37,240 $41,650 
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 June 30, 2023 and December 31, 2022 are as follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
June 30, 2023
(In millions)June 30, 2023
Assets
Asset-backed securities$6,233  Broker-Quoted Offered Quotes
54.7% - 171.90% (94.28%)
Asset-backed securities277  Third-Party Valuation Offered Quotes
39.65% - 101.77% (62.08%)
Commercial mortgage-backed securities17  Third-Party Valuation Offered Quotes
79.35% - 88.61%
(84.76%)
Corporates789  Broker-Quoted Offered Quotes
46.39% - 104.74% (95.87%)
Corporates 10 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (74.80%)
Corporates829  Third-Party Valuation Offered Quotes
0.00% - 103.12% (89.85%)
Municipals31 Third-Party ValuationOffered Quotes
102.11% - 102.11%
(102.11%)
Municipals18 Broker-QuotedOffered Quotes
101.20% - 101.20% (101.20%)
Residential mortgage-backed securities25  Broker-Quoted Offered Quotes
0.00% - 90.45% (90.00%)
Residential mortgage-backed securities3  Third-Party Valuation Offered Quotes
93.11%
Foreign Governments16  Third-Party Valuation Offered Quotes
99.04% - 99.68% (99.24%)
Investment in unconsolidated affiliates197 Market Comparable Company AnalysisEBITDA Multiple
5x-14x
(12.1x)
Short term investments126  Broker-Quoted Offered Quotes
100.00% - 100.02%
(100.01%)
Preferred securities6 Broker-QuotedOffered Quotes
$21.25 - $21.25 ($21.25)
Preferred securities1 Discounted Cash FlowDiscount rate
100.00% - 100.00% (100.00%)
Equity securities7 Broker Quoted Offered quotes
$66.00 - $66.00 ($66.00)
Equity securities7 Discounted Cash Flow Discount rate
12.60% - 12.60% (12.60%)
Market Comparable Company Analysis EBITDA multiple
5.3x - 5.3x (5.3x)
Other long-term investments:
Available-for-sale embedded derivative26 Black Scholes ModelMarket Value of Fund
100.00%
Secured borrowing receivable10 Broker-QuotedOffered Quotes
100.00% - 100.00%
(100.00%)
Credit Linked Note13 Broker-Quoted Offered Quotes
96.99%
Market risk benefits asset118 Discounted Cash FlowMortality
100.00% - 100.00% (100.00%)
Surrender Rates
0.25% - 10.00%
(5.03%)
Partial Withdrawal Rates
2.00% - 21.74%
(2.49%)
Non-Performance Spread
0.55% - 1.37%
(1.17%)
GMWB Utilization
50.00% - 60.00%
(50.85%)
Total financial assets at fair value$8,759 
Liabilities
Derivative investments:
FIA/ IUL embedded derivatives, included in contractholder funds$3,821 Discounted Cash FlowMarket Value of Option
0.00% - 30.03% (2.36%)
Swap rates
3.81% - 5.47% (4.64%)
Mortality Multiplier
100.00% - 100.00% (100.00%)
Surrender Rates
0.25% - 70.00% (6.61%)
Partial Withdrawals
2.00% - 34.48% (2.74%)
Non-Performance Spread
0.55% - 1.37% (1.17%)
Option cost
0.07% - 5.67% (2.22%)
Market risk benefits liability 313 Discounted Cash FlowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(5.03%)
Partial Withdrawal Rates
2.00% - 21.74%
(2.49%)
Non-Performance Spread
0.55% - 1.37%
(1.17%)
GMWB Utilization
50.00% - 60.00%
(50.89%)
Total financial liabilities at fair value$4,134 
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2022
(In millions)December 31, 2022
Assets
Asset-backed securities$5,916 Broker-quotedOffered quotes
52.85% - 117.17%
(94.18%)
Asset-backed securities347 Third-Party ValuationOffered quotes
41.43% - 210.50%
(67.99%)
Commercial mortgage-backed securities20 Broker-quotedOffered quotes
109.02% - 109.02%
(109.02%)
Commercial mortgage-backed securities17 Third-Party ValuationOffered quotes
74.66% - 88.48%
(82.74%)
Corporates602 Broker-quotedOffered quotes
79.16% - 102.53%
(94.16%)
Corporates826 Third-Party Evaluation Offered quotes
0.00% - 104.96%
(89.69%)
Corporates12 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (77.02%)
Municipals29 Third-Party EvaluationOffered quotes
93.95% - 93.95%
(93.95%)
Foreign governments16Third-Party EvaluationOffered quotes
99.78% - 102.29%
(100.56%)
Investment in unconsolidated affiliates23 Market Comparable Company AnalysisEBITDA multiple
5x-5.50x
Residential mortgage-backed securities302Broker-quotedOffered quotes
0.00% - 91.04%
(86.38%)
Preferred Securities1Discounted Cash FlowDiscount rate
100.00%
Equity securities6Broker-quotedOffered Quotes
$64.25 - $64.25 ($64.25)
Equity securities4 Discounted Cash FlowDiscount Rate
11.10% - 11.10%
(11.10%)
Market Comparable Company AnalysisEBITDA multiple
5.6x - 5.6x (5.6x)
Other long-term investments:
Available-for-sale embedded derivative 23 Black Scholes modelMarket value of fund
100.00%
Secured borrowing receivable10 Broker-quotedOffered quotes
100.00% - 100.00% (100.00%)
Credit Linked Note15 Broker-quotedOffered quotes
96.23%
Market risk benefits asset117 Discounted Cash FlowMortality
100.00% - 100.00% (100.00%)
Surrender Rates
0.25% - 10.00% (4.69%)
Partial Withdrawal Rates
2.00% - 21.74% (2.49%)
Non-Performance Spread
0.48% - 1.44% (1.30%)
GMWB Utilization
50.00% - 60.00% (50.94%)
Total financial assets at fair value$8,286 
Liabilities
Derivative investments:
FIA/ IUL embedded derivatives, included in contractholder funds3,115 Discounted cash flowMarket value of option
0.00% - 23.90%
(87.00%)
Swap rates
3.88% - 4.73%
(4.31%)
Mortality multiplier
100.00% - 100.00%
(100.00%)
Surrender rates
0.25% - 70.00%
(6.57%)
Partial withdrawals
2.00% - 29.41%
(2.73%)
Non-performance spread
0.48% - 1.44% (1.30%)
Option cost
0.07% - 4.97%
(1.89%)
Market risk benefits liability282 Discounted Cash FlowMortality
100.00% - 100.00% (100.00%)
Surrender rates
0.25% - 10.00% (4.69%)
Partial withdrawal rates
2.00% - 21.74% (2.49%)
Non-performance spread
0.48% - 1.44% (1.30%)
GMWB utilization
50.00% - 60.00% (50.94%)
Total financial liabilities at fair value$3,397 
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, 2023 and 2022. 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, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$6,300 $(3)$15 $379 $(15)$(151)$(15)$6,510 $14 
Commercial mortgage-backed securities29 — — — — — (12)17 — 
Corporates1,544 — (33)127 — (14)4 1,628 (33)
Municipals32 — 17 — — — — 49 17 
Residential mortgage-backed securities12 — — 24 — — (8)28 — 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates107 — — 90 — — — 197 — 
Short term investments23 — — 103 — — — 126 — 
Preferred securities1 — — — — — 6 7 — 
Equity securities11 (1)— — — — 4 14 — 
Other long-term investments:
Available-for-sale embedded derivative25 — 1 — — — — 26 1 
Credit linked note13 — — — — — — 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,123 $(4)$— $723 $(15)$(165)$(21)$8,641 $(1)
Market risk benefits asset106 118 
Total Level 3 assets at fair value$8,229 $8,759 
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,569 197 — 93 — (38)— 3,821 — 
Subtotal Level 3 liabilities at fair value$3,569 $197 $— $93 $— $(38)$— $3,821 $— 
Market risk benefits liability324 313 
Total Level 3 liabilities at fair value$3,893 $4,134 
(a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2.
Three months ended June 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$4,161 $1 $(142)$827 $(39)$(126)$(5)$4,677 $(153)
Commercial mortgage-backed securities40 — (3)— — — — 37 (2)
Corporates1,141 — (64)307 — (6)(4)1,374 (61)
Municipals37 — (4)— — — — 33 (4)
Residential mortgage-backed securities— — — 9 — — — 9 — 
Foreign Governments17 — (1)— — — — 16 (1)
Investment in unconsolidated affiliates21 — — — — — — 21 — 
Short term investments19 — — — — — (19)— — 
Preferred securities1 — — — — — — 1 — 
Equity securities10 — — 1 (1)— — 10 — 
Other long-term investments:
Available-for-sale embedded derivative30 (6)— — — — — 24 — 
Credit linked note19 — — — — (2)— 17 — 
Secured borrowing receivable— — — — — — 10 10 — 
Subtotal Level 3 assets at fair value$5,496 $(5)$(214)$1,144 $(40)$(134)$(18)$6,229 $(221)
Market risk benefits asset29 86 
Total Level 3 assets at fair value$5,525 $6,315 
Liabilities
FIA embedded derivatives, included in contractholder funds3,395 (575)— 146 — (25)— 2,941 — 
Subtotal Level 3 liabilities at fair value$3,395 $(575)$— $146 $— $(25)$— $2,941 $— 
Market risk benefits liability486 292 
Total Level 3 liabilities at fair value$3,881 $3,233 
(a) The net transfers out of Level 3 during the three months ended June 30, 2022 were exclusively to Level 2.
Six months ended June 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$6,263 $(11)$33 $795 $(98)$(386)$(86)$6,510 $32 
Commercial mortgage-backed securities37 — 1 12 — — (33)17 1 
Corporates1,440 (1)(56)261 (1)(19)4 1,628 (56)
Municipals29 — 20 — — — — 49 20 
Residential mortgage-backed securities302 1 8 32 — (8)(307)28 8 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 — — 174 — — — 197 — 
Short-Term— — — 126 — — — 126 — 
Preferred securities1 — — — — — 6 7 — 
Equity securities10 — — 1 (1)— 4 14 — 
Other long-term investments:
Available-for-sale embedded derivative23 — 3 — — — — 26 3 
Credit linked note15 — — — — (2)— 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,169 $(11)$9 $1,401 $(100)$(415)$(412)$8,641 $8 
Market risk benefits asset117118
Total Level 3 assets at fair value$8,286 $8,759 
Liabilities
FIA embedded derivatives, included in contractholder funds3,115 582 — 189 — (65)— 3,821 — 
Subtotal Level 3 liabilities at fair value$3,115 $582 $— $189 $— $(65)$— $3,821 $— 
Market risk benefits liability $282 $313 
Total Level 3 liabilities at fair value$3,397 $4,134 
(a) The net transfers out of Level 3 during the six months ended June 30, 2023 were exclusively to Level 2.
Six months ended June 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$3,959 $1 $(272)$1,227 $(39)$(278)$79 $4,677 $(291)
Commercial mortgage-backed securities35 — (5)— — — 7 37 (4)
Corporates1,135 — (137)386 — (32)22 1,374 (134)
Municipals43 — (10)— — — — 33 (9)
Residential mortgage-backed securities— — — 9 — — — 9 — 
Foreign Governments18 — (2)— — — — 16 (1)
Investment in unconsolidated affiliates21 — — — — — — 21 
Short-Term321 — (1)20 — — (340)— (1)
Preferred securities2 — (1)— — — — 1 (1)
Equity securities9 — — 1 — — — 10 — 
Other long-term investments:
Available-for-sale embedded derivative34 (10)— — — — — 24 — 
Secured borrowing receivable — — — — — — 10 10 — 
Credit linked note23 — (3)— — (3)— 17 — 
Subtotal Level 3 assets at fair value$5,600 $(9)$(431)$1,643 $(39)$(313)$(222)$6,229 $(441)
Market risk benefits asset4186
Total Level 3 assets at fair value$5,641 $6,315 
Liabilities
FIA embedded derivatives, included in contractholder funds3,883 (1,159)— 272 — (55)— 2,941 — 
Subtotal Level 3 liabilities at fair value$3,883 $(1,159)$— $272 $— $(55)$— $2,941 $— 
Market risk benefits liability $469 $292 
Total Level 3 liabilities at fair value$4,352 $3,233 
(a) The net transfers out of Level 3 during the six months ended June 30, 2022 were exclusively to Level 2.
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, 2023 and 2022. 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, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$6,300 $(3)$15 $379 $(15)$(151)$(15)$6,510 $14 
Commercial mortgage-backed securities29 — — — — — (12)17 — 
Corporates1,544 — (33)127 — (14)4 1,628 (33)
Municipals32 — 17 — — — — 49 17 
Residential mortgage-backed securities12 — — 24 — — (8)28 — 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates107 — — 90 — — — 197 — 
Short term investments23 — — 103 — — — 126 — 
Preferred securities1 — — — — — 6 7 — 
Equity securities11 (1)— — — — 4 14 — 
Other long-term investments:
Available-for-sale embedded derivative25 — 1 — — — — 26 1 
Credit linked note13 — — — — — — 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,123 $(4)$— $723 $(15)$(165)$(21)$8,641 $(1)
Market risk benefits asset106 118 
Total Level 3 assets at fair value$8,229 $8,759 
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,569 197 — 93 — (38)— 3,821 — 
Subtotal Level 3 liabilities at fair value$3,569 $197 $— $93 $— $(38)$— $3,821 $— 
Market risk benefits liability324 313 
Total Level 3 liabilities at fair value$3,893 $4,134 
(a) The net transfers out of Level 3 during the three months ended June 30, 2023 were exclusively to Level 2.
Three months ended June 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$4,161 $1 $(142)$827 $(39)$(126)$(5)$4,677 $(153)
Commercial mortgage-backed securities40 — (3)— — — — 37 (2)
Corporates1,141 — (64)307 — (6)(4)1,374 (61)
Municipals37 — (4)— — — — 33 (4)
Residential mortgage-backed securities— — — 9 — — — 9 — 
Foreign Governments17 — (1)— — — — 16 (1)
Investment in unconsolidated affiliates21 — — — — — — 21 — 
Short term investments19 — — — — — (19)— — 
Preferred securities1 — — — — — — 1 — 
Equity securities10 — — 1 (1)— — 10 — 
Other long-term investments:
Available-for-sale embedded derivative30 (6)— — — — — 24 — 
Credit linked note19 — — — — (2)— 17 — 
Secured borrowing receivable— — — — — — 10 10 — 
Subtotal Level 3 assets at fair value$5,496 $(5)$(214)$1,144 $(40)$(134)$(18)$6,229 $(221)
Market risk benefits asset29 86 
Total Level 3 assets at fair value$5,525 $6,315 
Liabilities
FIA embedded derivatives, included in contractholder funds3,395 (575)— 146 — (25)— 2,941 — 
Subtotal Level 3 liabilities at fair value$3,395 $(575)$— $146 $— $(25)$— $2,941 $— 
Market risk benefits liability486 292 
Total Level 3 liabilities at fair value$3,881 $3,233 
(a) The net transfers out of Level 3 during the three months ended June 30, 2022 were exclusively to Level 2.
Six months ended June 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$6,263 $(11)$33 $795 $(98)$(386)$(86)$6,510 $32 
Commercial mortgage-backed securities37 — 1 12 — — (33)17 1 
Corporates1,440 (1)(56)261 (1)(19)4 1,628 (56)
Municipals29 — 20 — — — — 49 20 
Residential mortgage-backed securities302 1 8 32 — (8)(307)28 8 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 — — 174 — — — 197 — 
Short-Term— — — 126 — — — 126 — 
Preferred securities1 — — — — — 6 7 — 
Equity securities10 — — 1 (1)— 4 14 — 
Other long-term investments:
Available-for-sale embedded derivative23 — 3 — — — — 26 3 
Credit linked note15 — — — — (2)— 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,169 $(11)$9 $1,401 $(100)$(415)$(412)$8,641 $8 
Market risk benefits asset117118
Total Level 3 assets at fair value$8,286 $8,759 
Liabilities
FIA embedded derivatives, included in contractholder funds3,115 582 — 189 — (65)— 3,821 — 
Subtotal Level 3 liabilities at fair value$3,115 $582 $— $189 $— $(65)$— $3,821 $— 
Market risk benefits liability $282 $313 
Total Level 3 liabilities at fair value$3,397 $4,134 
(a) The net transfers out of Level 3 during the six months ended June 30, 2023 were exclusively to Level 2.
Six months ended June 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets(In millions)
Fixed maturity securities available-for-sale:
Asset-backed securities$3,959 $1 $(272)$1,227 $(39)$(278)$79 $4,677 $(291)
Commercial mortgage-backed securities35 — (5)— — — 7 37 (4)
Corporates1,135 — (137)386 — (32)22 1,374 (134)
Municipals43 — (10)— — — — 33 (9)
Residential mortgage-backed securities— — — 9 — — — 9 — 
Foreign Governments18 — (2)— — — — 16 (1)
Investment in unconsolidated affiliates21 — — — — — — 21 
Short-Term321 — (1)20 — — (340)— (1)
Preferred securities2 — (1)— — — — 1 (1)
Equity securities9 — — 1 — — — 10 — 
Other long-term investments:
Available-for-sale embedded derivative34 (10)— — — — — 24 — 
Secured borrowing receivable — — — — — — 10 10 — 
Credit linked note23 — (3)— — (3)— 17 — 
Subtotal Level 3 assets at fair value$5,600 $(9)$(431)$1,643 $(39)$(313)$(222)$6,229 $(441)
Market risk benefits asset4186
Total Level 3 assets at fair value$5,641 $6,315 
Liabilities
FIA embedded derivatives, included in contractholder funds3,883 (1,159)— 272 — (55)— 2,941 — 
Subtotal Level 3 liabilities at fair value$3,883 $(1,159)$— $272 $— $(55)$— $2,941 $— 
Market risk benefits liability $469 $292 
Total Level 3 liabilities at fair value$4,352 $3,233 
(a) The net transfers out of Level 3 during the six months ended June 30, 2022 were exclusively to Level 2.