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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2023
Fair Value Disclosures [Abstract] |
Carrying Amounts of Assets and Liabilities and Estimated 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:
| December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Fair Value
Assets | (In millions)
Cash and cash equivalents | $ | 2,767 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,767 |
Fixed maturity securities, available-for-sale: |  |  |  |  |  |  |  |  |
Asset-backed securities | — |  |  | 7,220 |  |  | 7,122 |  |  | — |  |  | 14,342 |
Commercial mortgage-backed securities | — |  |  | 4,457 |  |  | 18 |  |  | — |  |  | 4,475 |
Corporates | 25 |  |  | 15,892 |  |  | 1,979 |  |  | — |  |  | 17,896 |
Hybrids | 95 |  |  | 523 |  |  | — |  |  | — |  |  | 618 |
Municipals | — |  |  | 1,562 |  |  | 49 |  |  | — |  |  | 1,611 |
Residential mortgage-backed securities | — |  |  | 2,426 |  |  | 3 |  |  | — |  |  | 2,429 |
U.S. Government | 662 |  |  | 16 |  |  | — |  |  | — |  |  | 678 |
Foreign Governments | — |  |  | 308 |  |  | 16 |  |  | — |  |  | 324 |
Equity securities | 692 |  |  | — |  |  | 15 |  |  | 59 |  |  | 766 |
Preferred securities | 214 |  |  | 399 |  |  | 8 |  |  | — |  |  | 621 |
Derivative investments | — |  |  | 740 |  |  | 57 |  |  | — |  |  | 797 |
Investments in unconsolidated affiliates | — |  |  | — |  |  | 285 |  |  | — |  |  | 285 |
Short term investments | 2,111 |  |  | 8 |  |  | — |  |  | — |  |  | 2,119 |
Reinsurance related embedded derivative, included in other assets | — |  |  | 152 |  |  | — |  |  | — |  |  | 152 |
Other long-term investments | — |  |  | — |  |  | 37 |  |  | — |  |  | 37 |
Market risk benefits asset | — |  |  | — |  |  | 88 |  |  | — |  |  | 88 |
Total financial assets at fair value | $ | 6,566 |  |  | $ | 33,703 |  |  | $ | 9,677 |  |  | $ | 59 |  |  | $ | 50,005 |
Liabilities |  |  |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |  |  |
FIA/ IUL embedded derivatives, included in contractholder funds | — |  |  | — |  |  | 4,258 |  |  | — |  |  | 4,258 |
Market risk benefits liability | — |  |  | — |  |  | 403 |  |  | — |  |  | 403 |
Derivative instruments - futures contracts | 1 |  |  | — |  |  | — |  |  |  |  | 1 |
Total financial liabilities at fair value | $ | 1 |  |  | $ | — |  |  | $ | 4,661 |  |  | $ | — |  |  | $ | 4,662 |
| December 31, 2022
| Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Fair 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 |
Corporates | 40 |  |  | 12,857 |  |  | 1,440 |  |  | — |  |  | 14,337 |
Hybrids | 93 |  |  | 638 |  |  | — |  |  | — |  |  | 731 |
Municipals | — |  |  | 1,431 |  |  | 29 |  |  | — |  |  | 1,460 |
Residential mortgage-backed securities | — |  |  | 1,225 |  |  | 302 |  |  | — |  |  | 1,527 |
U.S. Government | 260 |  |  | 11 |  |  | — |  |  | — |  |  | 271 |
Foreign Governments | — |  |  | 223 |  |  | 16 |  |  | — |  |  | 239 |
Equity securities | 621 |  |  | — |  |  | 10 |  |  | 47 |  |  | 678 |
Preferred securities | 320 |  |  | 582 |  |  | 1 |  |  | — |  |  | 903 |
Derivative investments | — |  |  | 244 |  |  | — |  |  | — |  |  | 244 |
Investment in unconsolidated affiliates | — |  |  | — |  |  | 23 |  |  | — |  |  | 23 |
Reinsurance related embedded derivative, included in other assets | — |  |  | 279 |  |  | — |  |  | — |  |  | 279 |
Short term investments | 2,590 |  |  | — |  |  | — |  |  | — |  |  | 2,590 |
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 accompanying Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
| December 31, 2023
| (in millions)
| Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total Estimated Fair Value |  | Carrying Amount
Assets |  |  |  |  |  |  |  |  |  |  |
FHLB common stock | $ | — |  |  | $ | 138 |  |  | $ | — |  |  | $ | — |  |  | $ | 138 |  |  | $ | 138 |
Commercial mortgage loans | — |  |  | — |  |  | 2,253 |  |  | — |  |  | 2,253 |  |  | 2,538 |
Residential mortgage loans | — |  |  | — |  |  | 2,545 |  |  | — |  |  | 2,545 |  |  | 2,798 |
Investments in unconsolidated affiliates | — |  |  | — |  |  | 7 |  |  | 2,779 |  |  | 2,786 |  |  | 2,786 |
Policy loans | — |  |  | — |  |  | 71 |  |  | — |  |  | 71 |  |  | 71 |
Other invested assets | 17 |  |  | — |  |  | — |  |  | 42 |  |  | 59 |  |  | 59 |
Company-owned life insurance | — |  |  | — |  |  | 397 |  |  | — |  |  | 397 |  |  | 397 |
Trade and notes receivables, net of allowance | — |  |  | — |  |  | 442 |  |  | — |  |  | 442 |  |  | 442 |
Total | $ | 17 |  |  | $ | 138 |  |  | $ | 5,715 |  |  | $ | 2,821 |  |  | $ | 8,691 |  |  | $ | 9,229 |
Liabilities |  |  |  |  |  |  |  |  |  |  |
Investment contracts, included in contractholder funds | $ | — |  |  | $ | — |  |  | $ | 40,229 |  |  | $ | — |  |  | $ | 40,229 |  |  | $ | 44,540 |
Debt | — |  |  | 3,568 |  |  | — |  |  | — |  |  | 3,568 |  |  | 3,887 |
Total | $ | — |  |  | $ | 3,568 |  |  | $ | 40,229 |  |  | $ | — |  |  | $ | 43,797 |  |  | $ | 48,427 |
| December 31, 2022
| (in millions)
| Level 1 |  | Level 2 |  | Level 3 |  | NAV |  | Total Estimated Fair Value |  | Carrying Amount
Assets |  |  |  |  |  |  |  |  |  |  |
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 assets | 93 |  |  | — |  |  | 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 |
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 December 31, 2023 and December 31, 2022, excluding assets and liabilities for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services) are as follows:
| Fair Value at |  | Valuation Technique |  | Unobservable Input(s) |  | Range (Weighted average)
| December 31, 2023 |  |  |
| (in millions) |  |  |  | December 31, 2023
Assets |  |  |  |  |  |  |
Asset-backed securities | $ | 57 |  |  | Third-Party Valuation |  | Discount Rate |  | 5.09% - 6.95% (6.00%)
Corporates | 787 |  |  | Third-Party Valuation |  | Discount Rate |  | 0.00% - 12.87% (6.91%)
Corporates | 8 |  |  | Discounted Cash Flow |  | Discount Rate |  | 44.00% - 100.00% (75.20%)
Municipals | 32 |  |  | Third-Party Valuation |  | Discount Rate |  | 6.25% - 6.25% (6.25%)
Residential mortgage-backed securities | 3 |  |  | Third-Party Valuation |  | Discount Rate |  | 5.46%-5.46% (5.46%)
Foreign Governments | 16 |  |  | Third-Party Valuation |  | Discount Rate |  | 6.94% - 7.68% (7.45%)
Investment in unconsolidated affiliates | 285 |  |  | Market Comparable Company Analysis |  | EBITDA Multiple |  | 4.4x - 31.8x (23.2x)
Preferred securities | 1 |  |  | Discounted Cash Flow |  | Discount rate |  | 100.00%
Equity securities | 7 |  |  | Discounted Cash Flow |  | Discount rate |  | 11.50% - 11.50% (11.50%)
Other long-term investments: |  |  |  |  |  |  |
Available-for-sale embedded derivative | 28 |  |  | Black Scholes Model |  | Market Value of Fund |  | 100.00%
Market risk benefits asset | 88 |  |  | Discounted Cash Flow |  | Mortality |  | 100.00% - 100.00% (100.00%)
|  |  |  |  | Surrender Rates |  | 0.25% - 10.00% (5.22%)
|  |  |  |  | Partial Withdrawal Rates |  | —% - 23.26% (2.50%)
|  |  |  |  | Non-Performance Spread |  | 0.38% - 1.10% (0.96%)
|  |  |  |  | GMWB Utilization |  | 50.00% - 60.00% (50.81%)
Total financial assets at fair value (a) | $ | 1,312 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |
FIA/ IUL embedded derivatives, included in contractholder funds | $ | 4,258 |  |  | Discounted Cash Flow |  | Market Value of Option |  | 0.00% - 18.93% (2.63%)
|  |  |  |  | Swap rates |  | 3.84% - 5.26% (4.55%)
|  |  |  |  | Mortality Multiplier |  | 100.00% - 100.00% (100.00%)
|  |  |  |  | Surrender Rates |  | 0.25% - 70.00% (6.83%)
|  |  |  |  | Partial Withdrawals |  | 2.00% - 34.48% (2.74%)
|  |  |  |  | Non-Performance Spread |  | 0.38% - 1.10% (0.96%)
|  |  |  |  | Option cost |  | 0.07% - 5.48% (2.38%)
Market risk benefits liability | 403 |  |  | Discounted Cash Flow |  | Mortality |  | 100.00% - 100.00% (100.00%)
|  |  |  |  | Surrender Rates |  | 0.25% - 10.00% (5.22%)
|  |  |  |  | Partial Withdrawal Rates |  | —% - 23.26% (2.50%)
|  |  |  |  | Non-Performance Spread |  | 0.38% - 1.10% (0.96%)
|  |  |  |  | GMWB Utilization |  | 50.00% - 60.00% (50.81%)
Total financial liabilities at fair value | $ | 4,661 |  |  |  |  |  |  |
(a) Excludes $$8,365 million of assets for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services)
| Fair Value at |  | Valuation Technique |  | Unobservable Input(s) |  | Range (Weighted average)
| December 31, 2022 |  |  |
| (In millions) |  |  |  | December 31, 2022
Assets |  |  |  |  |  |  |
Asset-backed securities | $ | 91 |  |  | Third-Party Valuation |  | Discount Rate |  | 5.23% - 8.98% (6.07%)
Corporates | 796 |  |  | Third-Party Valuation |  | Discount Rate |  | 4.75% - 12.45% (7.22%)
Corporates | 12 |  |  | Discounted Cash Flow |  | Discount Rate |  | 44.00% - 100.00% (77.02%)
Municipals | 29 |  |  | Third-Party Evaluation |  | Discount Rate |  | 7.62% - 7.62% (7.62%)
Foreign governments | 16 |  |  | Third-Party Evaluation |  | Discount Rate |  | 5.99% - 6.28% (6.19%)
Investment in unconsolidated affiliates | 23 |  |  | Market Comparable Company Analysis |  | EBITDA multiple |  | 5x-5.50x
Preferred Securities | 1 |  |  | Discounted Cash Flow |  | Discount rate |  | 100.00%
Equity securities | 4 |  |  | Discounted Cash Flow |  | Discount Rate |  | 11.10% - 11.10% (11.10%)
Other long-term investments: |  |  |  |  |  |  |
Available-for-sale embedded derivative | 23 |  |  | Black Scholes model |  | Market value of fund |  | 100.00%
Market risk benefits asset | 117 |  |  | Discounted Cash Flow |  | Mortality |  | 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 (a) | $ | 1,112 |  |  |  |  |  |  |
Liabilities |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |
FIA/ IUL embedded derivatives, included in contractholder funds | $ | 3,115 |  |  | Discounted cash flow |  | Market value of option |  | 0.00% - 23.90% (0.87%)
|  |  |  |  | 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 liability | 282 |  |  | Discounted Cash Flow |  | Mortality |  | 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 |  |  |  |  |  |  |
(a) Excludes $7,174 million of assets for which significant quantitative unobservable inputs are not developed internally and not readily available to the Company (primarily those valued using broker quotes and certain third-party pricing services)
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 years ended December 31, 2023 and December 31, 2022, respectively. 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.
| Year ended December 31, 2023 |  |
| (in millions) |  |
| Balance at Beginning of Period |  |  |  | Total Gains (Losses) |  | Purchases |  | Sales |  | Settlements |  | Net transfer In (Out) of Level 3 (a) |  | Balance at End of Period |  | Change in Unrealized Incl in OCI
|  |  | Included in Earnings |  | Included in AOCI |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | 6,263 |  |  |  |  | $ | (53) |  |  | $ | 186 |  |  | $ | 1,830 |  |  | $ | (125) |  |  | $ | (738) |  |  | $ | (241) |  |  | $ | 7,122 |  |  | $ | 185 |
Commercial mortgage-backed securities | 37 |  |  |  |  | — |  |  | 2 |  |  | 22 |  |  | — |  |  | — |  |  | (43) |  |  | 18 |  |  | 2 |
Corporates | 1,440 |  |  |  |  | (2) |  |  | (21) |  |  | 654 |  |  | (1) |  |  | (94) |  |  | 3 |  |  | 1,979 |  |  | (20) |
Hybrids | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipals | 29 |  |  |  |  | — |  |  | 20 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 49 |  |  | 20 |
Residential mortgage-backed securities | 302 |  |  |  |  | 1 |  |  | 7 |  |  | 32 |  |  | — |  |  | (9) |  |  | (330) |  |  | 3 |  |  | 7 |
Foreign Governments | 16 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | — |
Investment in unconsolidated affiliates | 23 |  |  |  |  | 13 |  |  | — |  |  | 249 |  |  | — |  |  | — |  |  | — |  |  | 285 |  |  | — |
Short-term | — |  |  |  |  | — |  |  | — |  |  | 204 |  |  | (19) |  |  | (185) |  |  | — |  |  | — |  |  | — |
Derivative instruments | — |  |  |  |  | 57 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 57 |  |  | — |
Preferred securities | 1 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 8 |  |  | 1 |
Equity securities | 10 |  |  |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 15 |  |  | — |
Other long-term assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale embedded derivative | 23 |  |  |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 4 |
Credit linked note | 15 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | 10 |  |  | — |
Secured borrowing receivable | 10 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (10) |  |  | — |  |  | — |  |  | — |
Subtotal Level 3 assets at fair value | $ | 8,169 |  |  |  |  | $ | 17 |  |  | $ | 199 |  |  | $ | 2,991 |  |  | $ | (145) |  |  | $ | (1,041) |  |  | $ | (601) |  |  | $ | 9,589 |  |  | $ | 199 |
Market risk benefits asset | $ | 117 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 88 |  |  |
Total Level 3 assets at fair value | $ | 8,286 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 9,677 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FIA/ IUL embedded derivatives, included in contractholder funds | 3,115 |  |  |  |  | 257 |  |  | — |  |  | 1,049 |  |  | — |  |  | (163) |  |  | — |  |  | 4,258 |  |  | — |
Subtotal Level 3 liabilities at fair value | $ | 3,115 |  |  |  |  | $ | 257 |  |  | $ | — |  |  | $ | 1,049 |  |  | $ | — |  |  | $ | (163) |  |  | $ | — |  |  | $ | 4,258 |  |  | $ | — |
Market Risk benefits liability | $ | 282 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 403 |  |  |
Total Level 3 liabilities at fair value | $ | 3,397 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,661 |  |  |
| Year ended December 31, 2022 |  |
| Balance at Beginning of Period |  | Total Gains (Losses) |  | Purchases |  | Sales |  | Settlements |  | Net transfer In (Out) of Level 3 (a) |  | Balance at End of Period |  | Change in Unrealized Incl in OCI
|  | Included in Earnings |  | Included in AOCI |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | 3,959 |  |  | $ | (6) |  |  | $ | (393) |  |  | $ | 3,269 |  |  | $ | (39) |  |  | $ | (541) |  |  | $ | 14 |  |  | $ | 6,263 |  |  | $ | (426) |
Commercial mortgage-backed securities | 35 |  |  | — |  |  | (5) |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 37 |  |  | (4) |
Corporates | 1,135 |  |  | 1 |  |  | (187) |  |  | 714 |  |  | (20) |  |  | (215) |  |  | 12 |  |  | 1,440 |  |  | (188) |
Hybrids | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipals | 43 |  |  | — |  |  | (14) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 29 |  |  | (13) |
Residential mortgage-backed securities | — |  |  | — |  |  | — |  |  | 316 |  |  | — |  |  | — |  |  | (14) |  |  | 302 |  |  | — |
Foreign Governments | 18 |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | (1) |
Investment in unconsolidated affiliates | 21 |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | 2 |
Short-term | 321 |  |  | — |  |  | (1) |  |  | 20 |  |  | — |  |  | — |  |  | (340) |  |  | — |  |  | (1) |
Preferred securities | 2 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Equity securities | 9 |  |  | — |  |  | — |  |  | 2 |  |  | (1) |  |  | — |  |  | — |  |  | 10 |  |  | — |
Other long-term assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale embedded derivative | 34 |  |  | (11) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | — |
Secured borrowing receivable | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 10 |  |  | — |
Credit linked note | 23 |  |  | (1) |  |  | (1) |  |  | — |  |  | (2) |  |  | (4) |  |  | — |  |  | 15 |  |  | — |
Subtotal Level 3 assets at fair value | $ | 5,600 |  |  | $ | (17) |  |  | $ | (602) |  |  | $ | 4,321 |  |  | $ | (62) |  |  | $ | (760) |  |  | $ | (311) |  |  | $ | 8,169 |  |  | $ | (632) |
Market risk benefits asset | $ | 41 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 117 |  |  |
Total Level 3 assets at fair value | $ | 5,641 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,286 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FIA embedded derivatives, included in contractholder funds | 3,883 |  |  | (1,382) |  |  | — |  |  | 768 |  |  | — |  |  | (154) |  |  | — |  |  | 3,115 |  |  | — |
Subtotal Total liabilities at Level 3 fair value | $ | 3,883 |  |  | $ | (1,382) |  |  | $ | — |  |  | $ | 768 |  |  | $ | — |  |  | $ | (154) |  |  | $ | — |  |  | $ | 3,115 |  |  | $ | — |
Market risk benefits liability | $ | 469 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 282 |  |  |
Total Level 3 liabilities at fair value | $ | 4,352 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,397 |  |  |
(a) The net transfers out of Level 3 during the year ended December 31, 2022, were 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 years ended December 31, 2023 and December 31, 2022, respectively. 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.
| Year ended December 31, 2023 |  |
| (in millions) |  |
| Balance at Beginning of Period |  |  |  | Total Gains (Losses) |  | Purchases |  | Sales |  | Settlements |  | Net transfer In (Out) of Level 3 (a) |  | Balance at End of Period |  | Change in Unrealized Incl in OCI
|  |  | Included in Earnings |  | Included in AOCI |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | 6,263 |  |  |  |  | $ | (53) |  |  | $ | 186 |  |  | $ | 1,830 |  |  | $ | (125) |  |  | $ | (738) |  |  | $ | (241) |  |  | $ | 7,122 |  |  | $ | 185 |
Commercial mortgage-backed securities | 37 |  |  |  |  | — |  |  | 2 |  |  | 22 |  |  | — |  |  | — |  |  | (43) |  |  | 18 |  |  | 2 |
Corporates | 1,440 |  |  |  |  | (2) |  |  | (21) |  |  | 654 |  |  | (1) |  |  | (94) |  |  | 3 |  |  | 1,979 |  |  | (20) |
Hybrids | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipals | 29 |  |  |  |  | — |  |  | 20 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 49 |  |  | 20 |
Residential mortgage-backed securities | 302 |  |  |  |  | 1 |  |  | 7 |  |  | 32 |  |  | — |  |  | (9) |  |  | (330) |  |  | 3 |  |  | 7 |
Foreign Governments | 16 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | — |
Investment in unconsolidated affiliates | 23 |  |  |  |  | 13 |  |  | — |  |  | 249 |  |  | — |  |  | — |  |  | — |  |  | 285 |  |  | — |
Short-term | — |  |  |  |  | — |  |  | — |  |  | 204 |  |  | (19) |  |  | (185) |  |  | — |  |  | — |  |  | — |
Derivative instruments | — |  |  |  |  | 57 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 57 |  |  | — |
Preferred securities | 1 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 8 |  |  | 1 |
Equity securities | 10 |  |  |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 15 |  |  | — |
Other long-term assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale embedded derivative | 23 |  |  |  |  | — |  |  | 4 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 4 |
Credit linked note | 15 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | 10 |  |  | — |
Secured borrowing receivable | 10 |  |  |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (10) |  |  | — |  |  | — |  |  | — |
Subtotal Level 3 assets at fair value | $ | 8,169 |  |  |  |  | $ | 17 |  |  | $ | 199 |  |  | $ | 2,991 |  |  | $ | (145) |  |  | $ | (1,041) |  |  | $ | (601) |  |  | $ | 9,589 |  |  | $ | 199 |
Market risk benefits asset | $ | 117 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 88 |  |  |
Total Level 3 assets at fair value | $ | 8,286 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 9,677 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FIA/ IUL embedded derivatives, included in contractholder funds | 3,115 |  |  |  |  | 257 |  |  | — |  |  | 1,049 |  |  | — |  |  | (163) |  |  | — |  |  | 4,258 |  |  | — |
Subtotal Level 3 liabilities at fair value | $ | 3,115 |  |  |  |  | $ | 257 |  |  | $ | — |  |  | $ | 1,049 |  |  | $ | — |  |  | $ | (163) |  |  | $ | — |  |  | $ | 4,258 |  |  | $ | — |
Market Risk benefits liability | $ | 282 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 403 |  |  |
Total Level 3 liabilities at fair value | $ | 3,397 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 4,661 |  |  |
| Year ended December 31, 2022 |  |
| Balance at Beginning of Period |  | Total Gains (Losses) |  | Purchases |  | Sales |  | Settlements |  | Net transfer In (Out) of Level 3 (a) |  | Balance at End of Period |  | Change in Unrealized Incl in OCI
|  | Included in Earnings |  | Included in AOCI |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset-backed securities | $ | 3,959 |  |  | $ | (6) |  |  | $ | (393) |  |  | $ | 3,269 |  |  | $ | (39) |  |  | $ | (541) |  |  | $ | 14 |  |  | $ | 6,263 |  |  | $ | (426) |
Commercial mortgage-backed securities | 35 |  |  | — |  |  | (5) |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 37 |  |  | (4) |
Corporates | 1,135 |  |  | 1 |  |  | (187) |  |  | 714 |  |  | (20) |  |  | (215) |  |  | 12 |  |  | 1,440 |  |  | (188) |
Hybrids | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Municipals | 43 |  |  | — |  |  | (14) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 29 |  |  | (13) |
Residential mortgage-backed securities | — |  |  | — |  |  | — |  |  | 316 |  |  | — |  |  | — |  |  | (14) |  |  | 302 |  |  | — |
Foreign Governments | 18 |  |  | — |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 16 |  |  | (1) |
Investment in unconsolidated affiliates | 21 |  |  | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | 2 |
Short-term | 321 |  |  | — |  |  | (1) |  |  | 20 |  |  | — |  |  | — |  |  | (340) |  |  | — |  |  | (1) |
Preferred securities | 2 |  |  | — |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | (1) |
Equity securities | 9 |  |  | — |  |  | — |  |  | 2 |  |  | (1) |  |  | — |  |  | — |  |  | 10 |  |  | — |
Other long-term assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale embedded derivative | 34 |  |  | (11) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 23 |  |  | — |
Secured borrowing receivable | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 10 |  |  | 10 |  |  | — |
Credit linked note | 23 |  |  | (1) |  |  | (1) |  |  | — |  |  | (2) |  |  | (4) |  |  | — |  |  | 15 |  |  | — |
Subtotal Level 3 assets at fair value | $ | 5,600 |  |  | $ | (17) |  |  | $ | (602) |  |  | $ | 4,321 |  |  | $ | (62) |  |  | $ | (760) |  |  | $ | (311) |  |  | $ | 8,169 |  |  | $ | (632) |
Market risk benefits asset | $ | 41 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 117 |  |  |
Total Level 3 assets at fair value | $ | 5,641 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 8,286 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FIA embedded derivatives, included in contractholder funds | 3,883 |  |  | (1,382) |  |  | — |  |  | 768 |  |  | — |  |  | (154) |  |  | — |  |  | 3,115 |  |  | — |
Subtotal Total liabilities at Level 3 fair value | $ | 3,883 |  |  | $ | (1,382) |  |  | $ | — |  |  | $ | 768 |  |  | $ | — |  |  | $ | (154) |  |  | $ | — |  |  | $ | 3,115 |  |  | $ | — |
Market risk benefits liability | $ | 469 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 282 |  |  |
Total Level 3 liabilities at fair value | $ | 4,352 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 3,397 |  |  |
(a) The net transfers out of Level 3 during the year ended December 31, 2022, were to Level 2.

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