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FAIR VALUE DISCLOSURES (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below.
Fair Value Measurements as of June 30, 2023

Level 1
Level 2
Level 3
Total
 
(in millions)
Assets:
Investments
Fixed maturities, AFS:
Corporate (1)
$— $42,006 $2,037 $44,043 
U.S. Treasury, government and agency— 5,895 — 5,895 
States and political subdivisions— 526 27 553 
Foreign governments— 768 — 768 
Residential mortgage-backed (2)
— 1,290 — 1,290 
Asset-backed (3)
— 9,469 — 9,469 
Commercial mortgage-backed— 3,255 34 3,289 
Redeemable preferred stock— 44 — 44 
Total fixed maturities, AFS— 63,253 2,098 65,351 
Fixed maturities, at fair value using the fair value option — 1,357 217 1,574 
Other equity investments (4)239 471 53 763 
Trading securities308 509 56 873 
Other invested assets:
Short-term investments— 776 — 776 
Assets of consolidated VIEs/VOEs70 253 52 375 
Swaps— (370)— (370)
Credit default swaps
— 3 — 3 
Futures1 — — 1 
Options— 8,454 — 8,454 
Total other invested assets71 9,116 52 9,239 
Cash equivalents4,388 1,637 — 6,025 
Segregated securities— 879 — 879 
Purchased market risk benefits — — 9,931 9,931 
Assets for market risk benefits— — 777 777 
Separate Accounts assets (5)
120,781 2,542 1 123,324 
Total Assets$125,787 $79,764 $13,185 $218,736 
Liabilities:
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)
$— $1,461 $— $1,461 
SCS, SIO, MSO and IUL indexed features’ liability— 8,895 — 8,895 
Liabilities of consolidated VIEs and VOEs1 2 — 3 
Liabilities for market risk benefits— — 13,642 13,642 
Contingent payment arrangements— — 250 250 
Total Liabilities$1 $10,358 $13,892 $24,251 
______________
(1)Corporate fixed maturities includes both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages, credit risk transfer securities and other asset types.
(4)Includes short position equity securities of $14 million that are reported in other liabilities.
(5)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate. As of June 30, 2023, the fair value of such investments was $402 million.
(6)Accrued interest payable of $23 million is reported in Notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.
Fair Value Measurements as of December 31, 2022
Level 1
Level 2
Level 3
Total
 
(in millions)
Assets:
Investments
Fixed maturities, AFS:
Corporate (1)
$— $41,450 $2,121 $43,571 
U.S. Treasury, government and agency— 5,837 — 5,837 
States and political subdivisions— 499 28 527 
Foreign governments— 836 — 836 
Residential mortgage-backed (2)
— 788 34 822 
Asset-backed (3)
— 8,490 — 8,490 
Commercial mortgage-backed (2)
— 3,203 32 3,235 
Redeemable preferred stock— 43 — 43 
Total fixed maturities, AFS— 61,146 2,215 63,361 
Fixed maturities, at fair value using the fair value option— 1,284 224 1,508 
Other equity investments (4)
214 497 12 723 
Trading securities290 332 55 677 
Other invested assets:

Short-term investments— 943 — 943 
Assets of consolidated VIEs/VOEs131 393 5 529 
Swaps— (425)— (425)
Credit default swaps
— 9 — 9 
Futures2 — — 2 
Options— 4,171 — 4,171 
Total other invested assets133 5,091 5 5,229 
Cash equivalents2,386 501 — 2,887 
Segregated securities— 1,522 — 1,522 
Purchased market risk benefits— — 10,423 10,423 
Assets for market risk benefits— — 490 490 
Separate Accounts assets (5)
111,744 2,436 1 114,181 
Total Assets$114,767 $72,809 $13,425 $201,001 
Liabilities:
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)
$— $1,374 $— $1,374 
SCS, SIO, MSO and IUL indexed features’ liability— 4,164 — 4,164 
Liabilities of consolidated VIEs and VOEs15 7 — 22 
Liabilities for market risk benefits
— — 15,766 15,766 
Contingent payment arrangements— — 247 247 
Total Liabilities$15 $5,545 $16,013 $21,573 
______________
(1)Corporate fixed maturities includes both public and private issues.
(2)Includes publicly traded agency pass-through securities and collateralized obligations.
(3)Includes credit-tranched securities collateralized by sub-prime mortgages and other asset types and credit tenant loans.
(4)Includes short position equity securities of $12 million that are reported in other liabilities.
(5)Separate Accounts assets included in the fair value hierarchy exclude investments in entities that calculate NAV per share (or its equivalent) as a practical expedient. Such investments excluded from the fair value hierarchy include investments in real estate and commercial mortgages. As of December 31, 2022, the fair value of such investments was $456 million.
(6)Includes CLO short-term debt of $239 million, which is inclusive as fair valued within Notes issued by consolidated VIE’s, at fair value using the fair value option accrued interest payable of $15 million is reported in notes issued by consolidated VIE’s, at fair value using the fair value option in the consolidated balance sheets, which is not required to be measured at fair value on a recurring basis.
Schedule of Reconciliation of Assets and Liabilities at Level 3
The tables below present reconciliations for all Level 3 assets and liabilities and changes in unrealized gains (losses) for the three and six months ended June 30, 2023 and 2022, respectively. Not included below are the changes in balances related to market risk benefits and purchased market risk benefits level 3 assets and liabilities, which are included in Note 9 of the Notes to these Consolidated Financial Statements.
Three Months Ended June 30, 2023
CorporateState and Political SubdivisionsAsset-backedCMBSRMBSTrading Securities, at Fair ValueFixed maturities, at FVO
(in millions)
Balance, beginning of period$1,950 $28 $12 $34 $— $55 $196 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)1 — — — — — (4)
Investment gains (losses), net(8)— — — — — (2)
Subtotal(7)— — — — — (6)
Other comprehensive income (loss)(8)— — — — — — 
Purchases205 — (12)— — 1 62 
Sales(71)(1)— — — — (35)
Activity related to consolidated VIEs/VOEs— — — — — — — 
Transfers into Level 3 (1)11 — — — — — 51 
Transfers out of Level 3 (1)(43)— — — — — (51)
Balance, end of period$2,037 $27 $— $34 $— $56 $217 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— $— $(4)
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$(8)$— $— $— $— $— $— 
Three Months Ended June 30, 2022
CorporateState and Political SubdivisionsAsset-backedCMBSRMBSTrading Securities, at Fair ValueFixed maturities, at FVO
(in millions)
Balance, beginning of period$1,683 $32 $332 $238 $— $52 $342 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)1 — — — — — 4 
Investment gains (losses), net(1)— — — — — — 
Subtotal— — — — — — 4 
Other comprehensive income (loss)(50)(2)(1)(1)— — — 
Purchases327 — (313)(212)— — 64 
Sales(74)— — — — — (24)
Activity related to consolidated VIEs/VOEs— — — — — — — 
Transfers into Level 3 (1)(5)— — — — — (3)
Transfers out of Level 3 (1)(114)— — — — — 40 
Balance, end of period$1,767 $30 $18 $25 $— $52 $423 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— $— $4 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$(50)$(2)$— $— $— $— $— 
______
(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(2)For instruments held as of June 30, 2023 and June 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
Other Equity Investments (3)Separate Accounts AssetsContingent Payment ArrangementOther Equity Investments (3)Separate Accounts AssetsContingent Payment Arrangement
(in millions)
Balance, beginning of period$15 $1 $(248)$11 $— $(37)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income— — — — — — 
Net derivative gains (losses)— — — — — — 
Total realized and unrealized gains (losses)— — — — — — 
Other comprehensive income (loss)— — — — — — 
Purchases44 — — 57 — (3)
Sales— — — — 1 — 
Settlements— — — — — — 
Other— — (2)— — — 
Activity related to consolidated VIEs/VOEs47 — — (1)— (2)
Transfers into Level 3 (1)(1)— — — — — 
Transfers out of Level 3 (1)— — — — — — 
Balance, end of period$105 $1 $(250)$67 $1 $(42)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$— $— $— $— $— $— 
______
(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(2)For instruments held as of June 30, 2023 and June 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.
(3)Other Equity Investments include other invested assets.
Six Months Ended June 30, 2023
CorporateState and Political SubdivisionsAsset-backedCMBSRMBSTrading Securities, at Fair ValueFixed maturities, at FVO
(in millions)
Balance, beginning of period$2,121 $28 $— $32 $34 $55 $224 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)3 — — — — — (1)
Investment gains (losses), net(11)— — — — — (2)
Subtotal(8)— — — — — (3)
Other comprehensive income (loss)10 — — — — — — 
Purchases376 — — 2 — 1 74 
Sales(162)(1)— — — — (35)
Activity related to consolidated VIEs/VOEs— — — — — — — 
Transfers into Level 3 (1)11 — — — — — 107 
Transfers out of Level 3 (1)(311)— — — (34)— (150)
Balance, end of period$2,037 $27 $— $34 $— $56 $217 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$9 $— $— $— $— $— $(2)
Six Months Ended June 30, 2022
CorporateState and Political SubdivisionsAsset-backedCMBSRMBSTrading Securities, at Fair ValueFixed maturities, at FVO
(in millions)
Balance, beginning of period$1,504 $35 $8 $20 $— $65 $201 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)2 — — — — — — 
Investment gains (losses), net— — — — — (13)— 
Subtotal2 — — — — (13)— 
Other comprehensive income (loss)(81)(4)(1)(2)— — — 
Purchases559 — 12 7 — — 153 
Sales(161)(1)(1)— — — (53)
Activity related to consolidated VIEs/VOEs— — — — — — — 
Transfers into Level 3 (1)65 — — — — — 185 
Transfers out of Level 3 (1)(121)— — — — — (63)
Balance, end of period$1,767 $30 $18 $25 $— $52 $423 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— $(13)$— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$(79)$(4)$(1)$(2)$— $— $— 
______
(1)Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(2)For instruments held as of June 30, 2023 and June 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.
Six Months Ended June 30, 2023Six Months Ended June 30, 2022
Other Equity Investments (3)Separate Accounts AssetsContingent Payment Arrangement Other Equity Investments (3)Separate Accounts AssetsContingent Payment Arrangement
(in millions)
Balance, beginning of period$17 $1 $(247)$16 $1 $(38)
Realized and unrealized gains (losses), included in Net income (loss) as:
Investment gains (losses), reported in net investment income(3)— — — — — 
Net derivative gains (losses) — — — — — — 
Total realized and unrealized gains (losses)(3)— — — — — 
Other comprehensive income (loss)— — — — — — 
Purchases 44 — 57 — (2)
Sales — — — — — — 
Settlements — — 1 — — — 
Other — — (4)— — — 
Activity related to consolidated VIEs/VOEs47 — — (3)— (2)
Transfers into Level 3 (1)— — — — — — 
Transfers out of Level 3 (1)— — — (3)— — 
Balance, end of period$105 $1 $(250)$67 $1 $(42)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$(3)$— $— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$— $— $— $— $— $— 
Transfers into/out of the Level 3 classification are reflected at beginning-of-period fair values.
(2)For instruments held as of June 30, 2023 and June 30, 2022, amounts are included in net investment income or net derivative gains (losses) in the consolidated statements of income (loss) or unrealized gains (losses) on investments in the consolidated statements of comprehensive income.
(3)Other Equity Investments include other invested assets.
Schedule of Quantitative Information About Level 3 Fair Value Measurement The following tables disclose quantitative information about Level 3 fair value measurements by category for assets and liabilities as of June 30, 2023 and December 31, 2022, respectively.
Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2023

Fair
Value
Valuation
Technique
Significant
Unobservable Input
Range
Weighted Average (2)
 (Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$366 Matrix pricing model
Spread over Benchmark
20 bps - 320 bps
154 bps
1,074 Market comparable 
companies
EBITDA multiples
Discount rate
Cash flow multiples
Loan to value
5.3x - 33.7x
8.9% - 22.7%
0.7x - 14.5x
0.0% - 64.0%
14.1x
10.9%
6.6x
14.3%
Trading securities, at fair value
55 Discounted cash flow
Earnings multiple
Discount factor
Discount years
8.3x
10.0%
7
Other equity investments2 Discounted cash flow
Earnings Multiple
6.8x - 14.7x
8.0x
Purchased MRB asset (1) (2) (4)9,931 Discounted cash flow
Lapse rates
Withdrawal rates
GMIB Utilization rates
Non-performance risk
Volatility rates - Equity
Mortality: Ages 0-40
Ages 41-60
Ages 61-115

0.26%-26.23%
0.06%-10.93%
0.04%-66.66%
56 bps - 141 bps
11%-27%
0.01%-0.17%
0.06%-0.52%
0.32%-40.00%
1.64%
0.45%
7.10%
60 bps
23%
2.91%
(same for all ages)
(same for all ages)
Liabilities:
AB Contingent consideration payable$250 Discounted cash flow
Expected revenue growth rates
Discount rate
2.0% - 83.9%
1.9% - 10.4%
10.3%
4.6%
Direct MRB (1) (2) (3) (4)12,865 Discounted cash flow
Non-performance risk
Lapse rates
Withdrawal rates
Annuitization rates
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
192 bps
0.26%-35.42%
0.00%-10.93%
0.04%-100.00%
0.01%-0.17%
0.06%-0.52%
0.32%-40.00%
192 bps
3.27%
0.68%
4.93%
2.39%
(same for all ages)
(same for all ages)
______________
(1)Mortality rates vary by age and demographic characteristic such as gender. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.
(2)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. Utilization rates were developed as a function of the benefit base.
(3)MRB liabilities are shown net of MRB assets. Net amount is made up of $13.6 billion of MRB liabilities and $777 million of MRB assets.
(4)Includes Legacy and Core products.
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2022
Fair
Value
Valuation
Technique
Significant
Unobservable Input
Range
Weighted Average (2)
 (Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$417 Matrix pricing model
Spread over benchmark
20 bps - 797 bps
205 bps
1,029 Market comparable companies
EBITDA multiples
 Discount rate
 Cash flow multiples
Loan to value
5.3x - 35.8x
9.0% - 45.7%
0.0x-10.3x
0.0%-40.4%
13.6x
11.9%
6.1x
12.0%
Trading securities, at fair value55 Discounted cash flow
Earnings multiple
Discounts factor
Discount years
8.3x
10.00%
7
Other equity investments4 Market comparable companies
Revenue multiple
0.5x - 10.8x
2.4x
Purchased MRB asset (1) (2) (4)10,423 Discounted cash flow
Lapse rates
Withdrawal rates
GMIB Utilization rates
Non-performance risk
Volatility rates - Equity
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
0.26% - 26.23%
0.06% - 10.93%
0.04% - 66.66%
54 bps - 124 bps
14% - 32%
0.01% - 0.17%
0.06% - 0.52%
0.32% - 40.00%
1.58%
0.69%
7.39%
69 bps
24%
2.87%
(same for all ages)
(same for all ages)
Liabilities:
AB Contingent consideration payable$247 Discounted cash flow
Expected revenue growth rates
Discount rate
2.0% - 83.9%
1.9% - 10.4%
11.5%
4.5%
Direct MRB (1) (2) (3) (4)15,276 Discounted cash flow
Non-performance risk
Lapse rates
Withdrawal rates
Annuitization rates
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
157 bps
0.26% - 35.42%
0.00% - 10.93%
0.04% - 100.00%
0.01% - 0.17%
0.06% - 0.52%
0.32% - 40.00%
157 bps
3.01%
0.68%
5.53%
2.43%
(same for all ages)
(same for all ages)
______________
(1)Mortality rates vary by age and demographic characteristic such as gender and benefits elected with the policy. Mortality rate assumptions are based on a combination of company and industry experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuating the embedded derivatives.
(2)Lapses and pro-rata withdrawal rates were developed as a function of the policy account value. Dollar for dollar withdrawal rates were developed as a function of the dollar for dollar threshold, the dollar for dollar limit. Utilization rates were developed as a function of the benefit base.
(3)MRB liabilities are shown net of MRB assets. Net amount is made up of $15.8 billion of MRB liabilities and $490 million of MRB assets.
(4)Includes Legacy and Core products.
Schedule of Fair Value Disclosure Financial Instruments Not Carried At Fair Value
The carrying values and fair values as of June 30, 2023 and December 31, 2022 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements are presented in the table below.
Carrying Values and Fair Values for Financial Instruments Not Otherwise Disclosed

 
Carrying
Value
Fair Value
 
Level 1
Level 2
Level 3
Total
(in millions)
June 30, 2023:
Mortgage loans on real estate $17,364 $— $— $15,472 $15,472 
Policy loans$4,061 $— $— $4,379 $4,379 
Policyholders’ liabilities: Investment contracts$1,783 $— $— $1,632 $1,632 
FHLB funding agreements $8,878 $— $8,784 $— $8,784 
FABN funding agreements$6,747 $— $6,163 $— $6,163 
Funding agreement-backed commercial paper (FABCP)$580 $— $590 $— $590 
Short-term debt (1)$— $— $— $— $— 
Long-term debt$3,819 $— $3,562 $— $3,562 
Separate Accounts liabilities$10,813 $— $— $10,813 $10,813 
December 31, 2022:
Mortgage loans on real estate$16,481 $— $— $14,690 $14,690 
Policy loans$4,033 $— $— $4,349 $4,349 
Policyholders’ liabilities: Investment contracts$1,916 $— $— $1,750 $1,750 
FHLB funding agreements $8,505 $— $8,390 $— $8,390 
FABN funding agreements$7,095 $— $6,384 $— $6,384 
Short-term debt (1)$520 $— $518 $— $518 
Long-term debt $3,322 $— $3,130 $— $3,130 
Separate Accounts liabilities$10,236 $— $— $10,236 $10,236 
_____________
(1)As of June 30, 2023 and December 31, 2022, excludes CLO short-term debt of $0 million and $239 million, which is inclusive as fair valued within notes issued by consolidated VIE’s, at fair value using the fair value option.