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Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Carrying Amount and Estimated Fair Value of Assets and Liabilities on Recurring Basis
The 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:
March 31, 2024
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents $3,517 $— $— $— $3,517 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 7,379 7,736 — 15,115 
Commercial mortgage-backed securities— 4,806 12 — 4,818 
Corporates25 16,762 2,184 — 18,971 
Hybrids99 534 — — 633 
Municipals— 1,529 18 — 1,547 
Residential mortgage-backed securities— 2,460 4 — 2,464 
U.S. Government682 16 — — 698 
Foreign Governments— 315 5 — 320 
Short term investments637 — 9 — 646 
Preferred securities192 342 8 — 542 
Equity securities720 — 14 59 793 
Derivative investments— 1,015 9 — 1,024 
Investment in unconsolidated affiliates— — 343 — 343 
Reinsurance related embedded derivative, included in other assets— 134 — — 134 
Market risk benefits asset— — 95 — 95 
Other long-term investments— — 39 — 39 
Total financial assets at fair value$5,872 $35,292 $10,476 $59 $51,699 
Liabilities
Derivatives:
Indexed annuities/IUL embedded derivatives, included in contractholder funds— — 4,679 — 4,679 
Interest rate swaps— — 19 — 19 
Call options 3 — — — 3 
Contingent consideration obligation— — 57 — 57 
Market risk benefits liability— — 425 — 425 
Total financial liabilities at fair value$3 $— $5,180 $— $5,183 
December 31, 2023
Level 1Level 2Level 3NAVFair 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 
Corporates25 15,892 1,979 — 17,896 
Hybrids95 523 — — 618 
Municipals— 1,562 49 — 1,611 
Residential mortgage-backed securities— 2,426 3 — 2,429 
U.S. Government662 16 — — 678 
Foreign Governments— 308 16 — 324 
Short term investments2,111 8 — — 2,119 
Preferred securities214 399 8 — 621 
Equity securities692 — 15 59 766 
Derivative investments— 740 57 — 797 
Investment in unconsolidated affiliates— — 285 — 285 
Reinsurance related embedded derivative, included in other assets— 152 — — 152 
Market risk benefits asset— — 88 — 88 
Other long-term investments— — 37 — 37 
Total financial assets at fair value$6,566 $33,703 $9,677 $59 $50,005 
Liabilities
Derivatives:
Indexed annuities/ IUL embedded derivatives, included in contractholder funds— — 4,258 — 4,258 
Market risk benefits liability— — 403 — 403 
Derivative instruments - futures contracts1 — — 1 
Total financial liabilities at fair value$1 $— $4,661 $— $4,662 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the unaudited Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
March 31, 2024
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
FHLB common stock$— $138 $— $— $138 $138 
Commercial mortgage loans— — 2,229 — 2,229 2,550 
Residential mortgage loans— — 2,590 — 2,590 2,890 
Investments in unconsolidated affiliates— — 6 3,018 3,024 3,024 
Policy loans— — 78 — 78 78 
Other invested assets23 — — 42 65 65 
Company-owned life insurance— — 415 — 415 415 
Trade and notes receivables, net of allowance — — 409 — 409 409 
Total$23 $138 $5,727 $3,060 $8,948 $9,569 
Liabilities
Investment contracts, included in contractholder funds$— $— $41,488 $— $41,488 $46,194 
Debt— 3,561 — — 3,561 3,884 
Total$— $3,561 $41,488 $— $45,049 $50,078 

December 31, 2023
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets(In millions)
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 assets17 — — 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 
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, 2024 and December 31, 2023, 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 follow:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
March 31, 2024
(In millions)March 31, 2024
Assets
Asset-backed securities$89 Third-Party ValuationDiscount Rate
5.27% - 6.54% (6.03%)
Commercial mortgage-backed securities1  Third-Party Valuation Discount Rate
6.90% - 7.84%
(7.22%)
Corporates 4 Discounted Cash FlowDiscount Rate
43.75% - 100.00% (57.07%)
Corporates760  Third-Party Valuation Discount Rate
4.16% - 12.87% (7.06%)
Residential mortgage-backed securities3  Third-Party Valuation Discount Rate
5.64% - 5.64% (5.64%)
Foreign Governments5  Third-Party Valuation Discount Rate
6.77% - 6.77% (6.77%)
Investment in unconsolidated affiliates343 Market Comparable Company AnalysisEBITDA Multiple14.1x - 20.2x (16x)
Adjusted Transaction ValueN/AN/A
Preferred securities1 Discounted Cash FlowDiscount rate
100.00% - 100.00% (100.00%)
Equity securities7 Discounted Cash Flow Discount rate
10.90% - 10.90% (10.90%)
Market Comparable Company Analysis EBITDA multiple
6x - 6x (6x)
Other long-term investments:
Available-for-sale embedded derivative30 Black Scholes ModelMarket Value of AnchorPath Fund
100.00%
Market risk benefits asset95 Discounted Cash FlowMortality
100.00% - 100.00% (100.00%)
Surrender Rates
0.25% - 10.00%
(5.13%)
Partial Withdrawal Rates
2.00% - 20.41%
(2.50%)
Non-Performance Spread
0.35% - 1.02%
(0.87%)
GMWB Utilization
50.00% - 60.00%
(50.81%)
Total financial assets at fair value (a)$1,338 
Liabilities
Derivative investments:
Indexed annuity/ IUL embedded derivatives, included in contractholder funds$4,679 Discounted Cash FlowMarket Value of Option
0.00% - 24.11% (3.52%)
Mortality Multiplier
100.00% - 100.00% (100.00%)
Surrender Rates
0.25% - 70.00% (6.80%)
Partial Withdrawals
2.00% - 35.71% (2.74%)
Non-Performance Spread
0.35% - 1.02% (0.87%)
Option Cost
0.07% - 5.70% (2.47%)
Contingent consideration57 Discounted Cash FlowRisk-Adjusted Discount Rate
13.50% - 13.50% (13.50%)
EBITDA Volatility
35.00% - 35.00%
(35.00%)
Counterparty-Discount Rate
7.00% - 7.00%
(7.00%)
Market risk benefits liability 425 Discounted Cash FlowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(5.13%)
Partial Withdrawal Rates
2.00% - 20.41%
(2.50%)
Non-Performance Spread
0.35% - 1.02%
(0.87%)
GMWB Utilization
50.00% - 60.00%
(50.81%)
Total financial liabilities at fair value (a)$5,161 
(a) Assets of $9,138 million and liabilities of $19 million 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 excluded from the respective totals in the table above.
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2023
(In millions)December 31, 2023
Assets
Asset-backed securities$57 Third-Party ValuationDiscount Rate
5.09% - 6.95%
(6.00%)
Corporates787 Third-Party ValuationDiscount Rate
0.00% - 12.87%
(6.91%)
Corporates8Discounted Cash FlowDiscount Rate
44.00% - 100.00%
 (75.20%)
Municipals32Third-Party ValuationDiscount Rate
6.25% - 6.25% (6.25%)
Residential mortgage-backed securities3 Third-Party ValuationDiscount Rate
5.46% - 5.46% (5.46%)
Foreign Governments16 Third-Party ValuationDiscount Rate
6.94% - 7.68% (7.45%)
Investment in unconsolidated affiliates285 Market Comparable Company AnalysisEBITDA Multiple
4.4x - 31.8x (23.2x)
Preferred securities1 Discounted Cash FlowDiscount rate
100.00%
Equity securities7 Discounted Cash FlowDiscount rate
11.50% - 11.50% (11.50%)
Other long-term investments:
Available-for-sale embedded derivative28 Black Scholes ModelMarket Value of Fund
100.00%
Market risk benefits asset88 Discounted Cash FlowMortality
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
Indexed annuity/ IUL embedded derivatives, included in contractholder funds4,258 Discounted Cash FlowMarket 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 liability403Discounted Cash FlowMortality
100.00%- 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(5.22%)
Partial Withdrawal Rates
0.00% - 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) Assets of $8,365 million 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 excluded from the table above.
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, 2024 and 2023. 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, 2024
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$7,122 $(12)$104 $762 $(19)$(202)$(19)$7,736 $104 
Commercial mortgage-backed securities18 — — 1 — — (7)12 — 
Corporates1,979 — 13 217 (3)(22)— 2,184 13 
Municipals49 — 1 — (32)— — 18 1 
Residential mortgage-backed securities3 — — 1 — — — 4 — 
Foreign Governments16 — — — — (11)— 5 — 
Preferred securities8 — — — — — — 8 — 
Equity securities15 (1)— — — — — 14 — 
Interest Rate Swaps57 (48)— — — — — 9 — 
Investment in unconsolidated affiliates285 58 — — — — — 343 — 
Short term investments— — — 9 — — — 9 — 
Other long-term investments:
Available-for-sale embedded derivative27 — 3 — — — — 30 3 
Credit linked note10 — — — — (1)— 9 — 
Subtotal Level 3 assets at fair value$9,589 $(3)$121 $990 $(54)$(236)$(26)$10,381 $121 
Market risk benefits asset (b)88 95 
Total Level 3 assets at fair value$9,677 $10,476 
Liabilities
Indexed annuity/ IUL embedded derivatives, included in contractholder funds4,258 200 — 288 — (67)— 4,679 — 
Interest rate swaps— 19 — — — — — 19 — 
Contingent consideration (c)— 9 — 48 — — — 57 — 
Subtotal Level 3 liabilities at fair value$4,258 $228 $— $336 $— $(67)$— $4,755 $— 
Market risk benefits liability (b)403 425 
Total Level 3 liabilities at fair value$4,661 $5,180 
(a) The net transfers out of Level 3 during the three months ended March 31, 2024 were exclusively to Level 2.
(b) Refer to Note O- Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
(c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note N - Acquisitions for more information.
Three months ended March 31, 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 $(8)$18 $416 $(83)$(235)$(71)$6,300 $18 
Commercial mortgage-backed securities37 — 1 12 — — (21)29 1 
Corporates1,440 (1)(23)133 — (5)— 1,544 (23)
Municipals29 — 3 — — — — 32 3 
Residential mortgage-backed securities302 1 8 8 — (8)(299)12 8 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 — — 84 — — — 107 — 
Short term investments— — — 23 — — — 23 — 
Preferred securities1 — — — — — — 1 — 
Equity securities10 — — 1 — — — 11 — 
Other long-term investments:
Available-for-sale embedded derivative23 — 2 — — — — 25 2 
Credit linked note15 — — — — (2)— 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,169 $(8)$9 $677 $(83)$(250)$(391)$8,123 $9 
Market risk benefits asset (b)117 106 
Total Level 3 assets at fair value$8,286 $8,229 
Liabilities
Indexed annuity/IUL embedded derivatives, included in contractholder funds3,115 385 — 96 — (27)— 3,569 — 
Subtotal Level 3 liabilities at fair value$3,115 $385 $— $96 $— $(27)$— $3,569 $— 
Market risk benefits liability (b)282 324 
Total Level 3 liabilities at fair value$3,397 $3,893 
(a)The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2.
(b)Refer to Note O - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
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, 2024 and 2023. 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, 2024
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$7,122 $(12)$104 $762 $(19)$(202)$(19)$7,736 $104 
Commercial mortgage-backed securities18 — — 1 — — (7)12 — 
Corporates1,979 — 13 217 (3)(22)— 2,184 13 
Municipals49 — 1 — (32)— — 18 1 
Residential mortgage-backed securities3 — — 1 — — — 4 — 
Foreign Governments16 — — — — (11)— 5 — 
Preferred securities8 — — — — — — 8 — 
Equity securities15 (1)— — — — — 14 — 
Interest Rate Swaps57 (48)— — — — — 9 — 
Investment in unconsolidated affiliates285 58 — — — — — 343 — 
Short term investments— — — 9 — — — 9 — 
Other long-term investments:
Available-for-sale embedded derivative27 — 3 — — — — 30 3 
Credit linked note10 — — — — (1)— 9 — 
Subtotal Level 3 assets at fair value$9,589 $(3)$121 $990 $(54)$(236)$(26)$10,381 $121 
Market risk benefits asset (b)88 95 
Total Level 3 assets at fair value$9,677 $10,476 
Liabilities
Indexed annuity/ IUL embedded derivatives, included in contractholder funds4,258 200 — 288 — (67)— 4,679 — 
Interest rate swaps— 19 — — — — — 19 — 
Contingent consideration (c)— 9 — 48 — — — 57 — 
Subtotal Level 3 liabilities at fair value$4,258 $228 $— $336 $— $(67)$— $4,755 $— 
Market risk benefits liability (b)403 425 
Total Level 3 liabilities at fair value$4,661 $5,180 
(a) The net transfers out of Level 3 during the three months ended March 31, 2024 were exclusively to Level 2.
(b) Refer to Note O- Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
(c) The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note N - Acquisitions for more information.
Three months ended March 31, 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 $(8)$18 $416 $(83)$(235)$(71)$6,300 $18 
Commercial mortgage-backed securities37 — 1 12 — — (21)29 1 
Corporates1,440 (1)(23)133 — (5)— 1,544 (23)
Municipals29 — 3 — — — — 32 3 
Residential mortgage-backed securities302 1 8 8 — (8)(299)12 8 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 — — 84 — — — 107 — 
Short term investments— — — 23 — — — 23 — 
Preferred securities1 — — — — — — 1 — 
Equity securities10 — — 1 — — — 11 — 
Other long-term investments:
Available-for-sale embedded derivative23 — 2 — — — — 25 2 
Credit linked note15 — — — — (2)— 13 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal Level 3 assets at fair value$8,169 $(8)$9 $677 $(83)$(250)$(391)$8,123 $9 
Market risk benefits asset (b)117 106 
Total Level 3 assets at fair value$8,286 $8,229 
Liabilities
Indexed annuity/IUL embedded derivatives, included in contractholder funds3,115 385 — 96 — (27)— 3,569 — 
Subtotal Level 3 liabilities at fair value$3,115 $385 $— $96 $— $(27)$— $3,569 $— 
Market risk benefits liability (b)282 324 
Total Level 3 liabilities at fair value$3,397 $3,893 
(a)The net transfers out of Level 3 during the three months ended March 31, 2023 were to Level 2.
(b)Refer to Note O - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.