XML 87 R48.htm IDEA: XBRL DOCUMENT v3.25.0.1
Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Carrying Amounts of Assets and Liabilities and Estimated at Fair Value on Recurring Basis
Our assets and liabilities measured and carried at fair value on a recurring basis, summarized according to the hierarchy previously described, are as follows:
December 31, 2024
Level 1Level 2Level 3NAVFair Value
Assets(In millions)
Cash and cash equivalents$3,479 $— $— $— $3,479 
Fixed maturity securities, available-for-sale:
Asset-backed securities— 7,513 8,143 — 15,656 
Commercial mortgage-backed securities— 5,182 — — 5,182 
Corporates41 18,698 2,957 — 21,696 
Hybrids35 546 — — 581 
Municipals— 1,386 — — 1,386 
Residential mortgage-backed securities— 2,793 3 — 2,796 
U.S. Government631 6 — — 637 
Foreign Governments— 280 4 — 284 
Short term investments2,995 18 37 — 3,050 
Preferred securities189 246 8 — 443 
Equity securities575 — 10 57 642 
Derivative investments— 791 3 — 794 
Investment in unconsolidated affiliates— — 272 — 272 
Loan receivable, included in Prepaid expenses and other assets— — 11 — 11 
Reinsurance related embedded derivative, included in other assets— 109 — — 109 
Market risk benefits asset— — 189 — 189 
Other assets— — 65 — 65 
Other long-term investments— — 32 — 32 
Total financial assets at fair value$7,945 $37,568 $11,734 $57 $57,304 
Liabilities
Derivatives:
Indexed annuities/indexed universal life insurance ("IUL") embedded derivatives, included in Contractholder funds$— $— $5,220 $— $5,220 
Interest rate swaps— 10 — — 10 
Equity options1 — — — 1 
Contingent consideration obligation— — 74 — 74 
Market risk benefits liability— — 549 — 549 
Total financial liabilities at fair value$1 $10 $5,843 $— $5,854 
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 
Preferred securities214 399 8 — 621 
Equity securities692 — 15 59 766 
Derivative investments— 740 57 — 797 
Investment in unconsolidated affiliates — — 285 — 285 
Short-term investments2,111 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 $50,005 
Liabilities
Derivatives:
Indexed annuities/IUL embedded derivatives, included in Contractholder funds$— $— $4,258 $— $4,258 
Market risk benefits liability — — 403 — 403 
Equity options1 — — — 1 
Total financial liabilities at fair value$1 $— $4,661 $— $4,662 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the accompanying Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described.
December 31, 2024
(in millions)
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $153 $— $— $153 $153 
Commercial mortgage loans— — 2,404 — 2,404 2,705 
Residential mortgage loans— — 2,916 — 2,916 3,221 
Investments in unconsolidated affiliates— — 5 3,288 3,293 3,293 
Policy loans— — 104 — 104 104 
Other invested assets42 — — 48 90 90 
Company-owned life insurance— — 431 — 431 431 
Trade and notes receivables, net of allowance— — 471 — 471 471 
Total$42 $153 $6,331 $3,336 $9,862 $10,468 
Liabilities
Investment contracts, included in contractholder funds$— $— $46,339 $— $46,339 $51,184 
Debt— 3,781 — — 3,781 4,321 
Total$— $3,781 $46,339 $— $50,120 $55,505 
December 31, 2023
(in millions)
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $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 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 
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, 2024 and 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 follows:
Fair Value atValuation TechniqueUnobservable Input(s)Range (Weighted average)
December 31, 2024
(in millions)December 31, 2024
Assets
Asset-backed securities$95 Third-Party ValuationDiscount Rate
4.83% - 7.15% (6.33%)
Corporates 7 Discounted Cash FlowDiscount Rate
13.33% - 100.00% (96.45%)
Corporates750 Third-Party Valuation Discount Rate
2.00% - 22.53% (6.76%)
Residential mortgage-backed securities3 Third-Party Valuation Discount Rate
5.89%-5.89% (5.89%)
Foreign Governments4 Third-Party Valuation Discount Rate
12.14% - 12.14% (12.14%)
Investment in unconsolidated affiliates272 Market Comparable Company AnalysisEBITDA Multiple
8.7x - 23.6x (14.6x)
Preferred securities1 Discounted Cash FlowDiscount rate
100.00% - 100.00% (100.00%)
Equity securities4 Discounted Cash FlowDiscount rate
4.80% - 14.10% (9.40%)
Market Comparable Company AnalysisEBITDA multiple
5.8x - 7.5x (7.0x)
Other assets 65 Discounted Cash Flow Discount Rate
10.60% - 12.00% (11.30%)
Conditional Prepayment Rate
6.24% -11.99% (9.12%)
Other long-term investments:
Available-for-sale embedded derivative32 Black Scholes ModelMarket Value of AnchorPath Fund
100.00%
Prepaid expenses and other assets:
Loan receivable 11 Discounted Cash FlowRisk-Adjusted Discount Rate
7.22% - 7.22% (7.22%)
Collateral Volatility
35.00% - 35.00% (35.00%)
Market risk benefits asset189 Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.05%)
Partial Withdrawal Rates
2.00% - 24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% - 75.00% (61.77%)
Total financial assets at fair value (a)$1,433 
Liabilities
Derivatives:
Indexed annuity/ IUL embedded derivatives, included in contractholder funds$5,220 Discounted Cash FlowMarket Value of Option
0.00% - 20.81% (2.92%)
Mortality Multiplier
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 50.00% (6.94%)
Partial Withdrawals
2.00% - 35.71% (2.72%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
Option Cost
0.07% - 5.70% (2.68%)
Contingent consideration74 Discounted Cash FlowRisk-Adjusted Discount Rate
13.50% - 13.50% (13.50%)
EBITDA Volatility
35% - 35% (35%)
Counterparty Discount Rate
6.50% - 6.50% (6.50%)
Market risk benefits liability549 Discounted Cash FlowMortality
80.00% - 115.00% (100.00%)
Surrender Rates
0.25% - 30.00% (5.05%)
Partial Withdrawal Rates
2.00% - 24.39% (2.48%)
Non-Performance Spread
0.48% - 0.95% (0.75%)
GMWB Utilization
50.00% - 75.00% (61.77%)
Total financial liabilities at fair value$5,843 
(a) Excludes $10,301 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%)
Corporates8 Discounted Cash FlowDiscount Rate
44.00% - 100.00% (75.20%)
Municipals32 Third-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 Fund100%
Market risk benefits asset88 Discounted 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 assets at fair value (a)$1,312 
Liabilities
Derivatives:
Indexed annuities/ IUL embedded derivatives, included in Contractholder funds$4,258 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 liability403 Discounted 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 respective totals in 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 years ended December 31, 2024 and 2023, 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, 2024
(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 Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$7,122 $19 $128 $5,104 $(2,825)$(1,210)$(195)$8,143 $130 
Commercial mortgage-backed securities18 — — 58 — — (76)— — 
Corporates1,979 (3)81 1,148 (100)(139)(9)2,957 80 
Municipals49 — 1 — (50)— — — 1 
Residential mortgage-backed securities3 — — 1 — — (1)3 — 
Foreign Governments16 — (1)— — (11)— 4 (1)
Preferred securities8 — — — — — — 8 — 
Equity securities15 (5)— — — — — 10 — 
Interest rate swaps57 (50)3 — — — (7)3 1 
Investment in unconsolidated affiliates (b)285 79 — — — — (92)272 — 
Other assets— — — 65 — — — 65 — 
Short-term investments— — — 236 (190)(9)— 37 — 
Other long-term assets:
Available-for-sale embedded derivative27 — 5 — — — — 32 5 
Credit linked note10 1 — — — (11)— — — 
Prepaid expenses and other assets:
Loan receivable (c)— — — 11 — — — 11 — 
Subtotal Level 3 assets at fair value$9,589 $41 $217 $6,623 $(3,165)$(1,380)$(380)$11,545 $216 
Market risk benefits asset (d))88 189 
Total Level 3 assets at fair value$9,677 $11,734 
Liabilities
Indexed annuity/ IUL embedded derivatives, included in contractholder funds$4,258 $45 $— $1,351 $— $(434)$— $5,220 $— 
Interest rate swaps— 28 — — — — (28)— — 
Contingent consideration (e)— 26 — 48 — — — 74 — 
Subtotal Level 3 liabilities at fair value$4,258 $99 $— $1,399 $— $(434)$(28)$5,294 $— 
Market Risk benefits liability (d)403 549 
Total Level 3 liabilities at fair value $4,661 $5,843 
(a)The net transfers out of Level 3 during the year ended December 31, 2024 were exclusively to Level 2 with the exception of (b) below.
(b)The transfer out of investments in unconsolidated affiliates reflects F&G’s majority acquisition of PALH on July 18, 2024. Refer to Note B Acquisitions for details of the PALH majority acquisition.
(c)Purchases represent advances on the loan commitment to Roar. Refer to Note H - Commitments and Contingencies for further details.
(d)Refer to Note X Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
(e)The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note B Acquisitions for more information.
Year ended December 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 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 securities37 — 2 22 — — (43)18 2 
Corporates1,440 (2)(21)654 (1)(94)3 1,979 (20)
Municipals29 — 20 — — — — 49 20 
Residential mortgage-backed securities302 1 7 32 — (9)(330)3 7 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 13 — 249 — — — 285 — 
Short-term investments— — — 204 (19)(185)— — — 
Derivative Instruments — 57 — — — — — 57 — 
Preferred securities1 — — — — — 7 8 1 
Equity securities10 1 1 — — — 3 15 — 
Other long-term assets:
Available-for-sale embedded derivative23 — 4 — — — — 27 4 
Credit linked note15 — — — — (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 (b)117 88 
Total Level 3 assets at fair value $8,286 $9,677 
Liabilities
Indexed annuities embedded derivatives, included in contractholder funds$3,115 $257 $— $1,049 $— $(163)$— $4,258 $— 
Subtotal Total liabilities at Level 3 fair value$3,115 $257 $— $1,049 $— $(163)$— $4,258 $— 
Market risk benefits liability (b)282 403 
Total Level 3 liabilities at fair value $3,397 $4,661 
(a) The net transfers out of Level 3 during the year ended December 31, 2023, were to Level 2.
(b) Refer to Note X 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 years ended December 31, 2024 and 2023, 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, 2024
(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 Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$7,122 $19 $128 $5,104 $(2,825)$(1,210)$(195)$8,143 $130 
Commercial mortgage-backed securities18 — — 58 — — (76)— — 
Corporates1,979 (3)81 1,148 (100)(139)(9)2,957 80 
Municipals49 — 1 — (50)— — — 1 
Residential mortgage-backed securities3 — — 1 — — (1)3 — 
Foreign Governments16 — (1)— — (11)— 4 (1)
Preferred securities8 — — — — — — 8 — 
Equity securities15 (5)— — — — — 10 — 
Interest rate swaps57 (50)3 — — — (7)3 1 
Investment in unconsolidated affiliates (b)285 79 — — — — (92)272 — 
Other assets— — — 65 — — — 65 — 
Short-term investments— — — 236 (190)(9)— 37 — 
Other long-term assets:
Available-for-sale embedded derivative27 — 5 — — — — 32 5 
Credit linked note10 1 — — — (11)— — — 
Prepaid expenses and other assets:
Loan receivable (c)— — — 11 — — — 11 — 
Subtotal Level 3 assets at fair value$9,589 $41 $217 $6,623 $(3,165)$(1,380)$(380)$11,545 $216 
Market risk benefits asset (d))88 189 
Total Level 3 assets at fair value$9,677 $11,734 
Liabilities
Indexed annuity/ IUL embedded derivatives, included in contractholder funds$4,258 $45 $— $1,351 $— $(434)$— $5,220 $— 
Interest rate swaps— 28 — — — — (28)— — 
Contingent consideration (e)— 26 — 48 — — — 74 — 
Subtotal Level 3 liabilities at fair value$4,258 $99 $— $1,399 $— $(434)$(28)$5,294 $— 
Market Risk benefits liability (d)403 549 
Total Level 3 liabilities at fair value $4,661 $5,843 
(a)The net transfers out of Level 3 during the year ended December 31, 2024 were exclusively to Level 2 with the exception of (b) below.
(b)The transfer out of investments in unconsolidated affiliates reflects F&G’s majority acquisition of PALH on July 18, 2024. Refer to Note B Acquisitions for details of the PALH majority acquisition.
(c)Purchases represent advances on the loan commitment to Roar. Refer to Note H - Commitments and Contingencies for further details.
(d)Refer to Note X Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
(e)The initial contingent consideration recorded in the Roar transaction is included in purchases in the table above. Refer to Note B Acquisitions for more information.
Year ended December 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 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 securities37 — 2 22 — — (43)18 2 
Corporates1,440 (2)(21)654 (1)(94)3 1,979 (20)
Municipals29 — 20 — — — — 49 20 
Residential mortgage-backed securities302 1 7 32 — (9)(330)3 7 
Foreign Governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates23 13 — 249 — — — 285 — 
Short-term investments— — — 204 (19)(185)— — — 
Derivative Instruments — 57 — — — — — 57 — 
Preferred securities1 — — — — — 7 8 1 
Equity securities10 1 1 — — — 3 15 — 
Other long-term assets:
Available-for-sale embedded derivative23 — 4 — — — — 27 4 
Credit linked note15 — — — — (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 (b)117 88 
Total Level 3 assets at fair value $8,286 $9,677 
Liabilities
Indexed annuities embedded derivatives, included in contractholder funds$3,115 $257 $— $1,049 $— $(163)$— $4,258 $— 
Subtotal Total liabilities at Level 3 fair value$3,115 $257 $— $1,049 $— $(163)$— $4,258 $— 
Market risk benefits liability (b)282 403 
Total Level 3 liabilities at fair value $3,397 $4,661 
(a) The net transfers out of Level 3 during the year ended December 31, 2023, were to Level 2.
(b) Refer to Note X Market Risk Benefits for roll forward activity of the net Market risk benefits asset and liability.