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FAIR VALUE DISCLOSURES (Tables)
 6 Months Ended
Jun. 30, 2024
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, 2024

Level 1
Level 2
Level 3
Total
 
(in millions)
Assets:
Investments
Fixed maturities, AFS:
Corporate (1)
$— $43,912 $2,518 $46,430 
U.S. Treasury, government and agency— 4,411 — 4,411 
States and political subdivisions— 437 — 437 
Foreign governments— 580 — 580 
Residential mortgage-backed (2)
— 3,379 — 3,379 
Asset-backed (3)
— 12,800 57 12,857 
Commercial mortgage-backed— 3,420 7 3,427 
Redeemable preferred stock— 58 — 58 
Total fixed maturities, AFS— 68,997 2,582 71,579 
Fixed maturities, at fair value using the fair value option — 1,479 224 1,703 
Other equity investments (4)226 410 56 692 
Trading securities401 1,559 57 2,017 
Other invested assets:
Short-term investments— 252 — 252 
Assets of consolidated VIEs/VOEs31 223 3 257 
Swaps— (297)— (297)
Credit default swaps
— 5 — 5 
Futures(1)— — (1)
Options— 13,974 — 13,974 
Total other invested assets30 14,157 3 14,190 
Cash equivalents7,834 310 — 8,144 
Segregated securities— 592 — 592 
Purchased market risk benefits — — 7,993 7,993 
Assets for market risk benefits— — 803 803 
Separate Accounts assets (5)
129,504 2,606 — 132,110 
Total Assets$137,995 $90,110 $11,718 $239,823 
Liabilities:
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)
$— $1,552 $176 $1,728 
SCS, SIO, MSO and IUL indexed features’ liability— 14,959 — 14,959 
Liabilities of consolidated VIEs and VOEs— — — — 
Liabilities for market risk benefits— — 12,593 12,593 
Contingent payment arrangements— — 255 255 
Total Liabilities$— $16,511 $13,024 $29,535 
______________
(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 $16 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, 2024, the fair value of such investments was $338 million.
(6)Accrued interest payable of $12 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, 2023
Level 1
Level 2
Level 3
Total
 
(in millions)
Assets:
Investments
Fixed maturities, AFS:
Corporate (1)
$— $42,584 $2,158 $44,742 
U.S. Treasury, government and agency— 4,631 — 4,631 
States and political subdivisions— 522 27 549 
Foreign governments— 611 — 611 
Residential mortgage-backed (2)
— 2,355 — 2,355 
Asset-backed (3)
— 10,954 47 11,001 
Commercial mortgage-backed (2)
— 3,075 7 3,082 
Redeemable preferred stock— 59 — 59 
Total fixed maturities, AFS— 64,791 2,239 67,030 
Fixed maturities, at fair value using the fair value option— 1,473 181 1,654 
Other equity investments (4)
217 464 54 735 
Trading securities321 675 61 1,057 
Other invested assets:

Short-term investments— 429 — 429 
Assets of consolidated VIEs/VOEs61 350 3 414 
Swaps— (190)— (190)
Credit default swaps
— 3 — 3 
Futures(4)— — (4)
Options— 10,084 — 10,084 
Total other invested assets57 10,676 3 10,736 
Cash equivalents5,901 694 — 6,595 
Segregated securities— 868 — 868 
Purchased market risk benefits— — 9,427 9,427 
Assets for market risk benefits— — 591 591 
Separate Accounts assets (5)
124,099 2,624 — 126,723 
Total Assets$130,595 $82,265 $12,556 $225,416 
Liabilities:
Notes issued by consolidated VIE’s, at fair value using the fair value option (6)
$— $1,539 $— $1,539 
SCS, SIO, MSO and IUL indexed features’ liability— 10,745 — 10,745 
Liabilities of consolidated VIEs and VOEs1 2 — 3 
Liabilities for market risk benefits
— — 14,612 14,612 
Contingent payment arrangements— — 253 253 
Total Liabilities$1 $12,286 $14,865 $27,152 
______________
(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 $4 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 December 31, 2023, the fair value of such investments was $371 million.
(6)Accrued interest payable of $20 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). Not included below are the changes in balances related to MRBs and purchased MRBs level 3 assets and liabilities, which are included in Note 9 of the Notes to these Consolidated Financial Statements.
Three Months Ended June 30, 2024
CorporateState and Political SubdivisionsAsset-backedCMBS
(in millions)
Balance, beginning of period$2,338 $— $71 $7 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)2 — — — 
Investment gains (losses), net(1)— — — 
Subtotal1 — — — 
Other comprehensive income (loss)1 — — — 
Purchases542 — (2)— 
Sales(365)— (12)— 
Settlements— — — — 
Other
— — — — 
Activity related to consolidated VIEs/VOEs— — — — 
Transfers into Level 3 (1)— — — — 
Transfers out of Level 3 (1)1 — — — 
Balance, end of period$2,518 $— $57 $7 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— 
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 $— $— $— 
______________
(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, 2024, 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, 2024
Fixed maturities, at FVO Other Equity Investments (3)Trading Securities, at Fair ValueSeparate Accounts AssetsContingent Payment Arrangement
(in millions)
Balance, beginning of period$244 $58 $61 $1 $(254)
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)(12)— — — — 
Investment gains (losses), net— — (4)— — 
Subtotal(12)— (4)— — 
Other comprehensive income (loss)— — — — — 
Purchases(33)(38)— (1)— 
Sales(18)39 — — — 
Settlements— — — — 2 
Other— — — — (3)
Activity related to consolidated VIEs/VOEs— — — — — 
Transfers into Level 3 (1)16 — — — — 
Transfers out of Level 3 (1)27 — — — — 
Balance, end of period$224 $59 $57 $— $(255)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$(12)$— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$— $— $— $— $— 
______________
(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, 2024, 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.
Three Months Ended June 30, 2023
CorporateState and Political SubdivisionsAsset-backedCMBS
(in millions)
Balance, beginning of period$1,950 $28 $12 $34 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)1 — — — 
Investment gains (losses), net(8)— — — 
Subtotal(7)— — — 
Other comprehensive income (loss)(8)— — — 
Purchases205 — (12)— 
Sales(71)(1)— — 
Settlements— — — — 
Other— — — — 
Activity related to consolidated VIEs/VOEs— — — — 
Transfers into Level 3 (1)11 — — — 
Transfers out of Level 3 (1)(43)— — — 
Balance, end of period$2,037 $27 $— $34 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$(8)$— $— $— 
______________
(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, 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, 2023
Fixed maturities, at FVOOther Equity Investments (3)Trading Securities, at Fair ValueSeparate Accounts AssetsContingent Payment Arrangement
(in millions)
Balance, beginning of period$196 $15 $55 $1 $(248)
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)(4)— — — — 
Investment gains (losses), net(2)— — — — 
Subtotal(6)— — — — 
Other comprehensive income (loss)— — — — — 
Purchases62 44 1 — — 
Sales(35)— — — — 
Settlements— — — — — 
Other— — — — (2)
Activity related to consolidated VIEs/VOEs— 47 — — — 
Transfers into Level 3 (1)51 (1)— — — 
Transfers out of Level 3 (1)(51)— — — — 
Balance, end of period$217 $105 $56 $1 $(250)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$(4)$— $— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$— $— $— $— $— 
______________
(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, 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, 2024
CorporateState and Political SubdivisionsAsset-backedCMBS
(in millions)
Balance, beginning of period$2,158 $27 $47 $7 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)4 — — — 
Investment gains (losses), net(2)— — — 
Subtotal2 — — — 
Other comprehensive income (loss)11 — — — 
Purchases757 — 46 — 
Sales(421)— (22)— 
Settlements— — — — 
Other— — — — 
Activity related to consolidated VIEs/VOEs— — — — 
Transfers into Level 3 (1)57 — — — 
Transfers out of Level 3 (1)(46)(27)(14)— 
Balance, end of period$2,518 $— $57 $7 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— 
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)$11 $— $— $— 
______________
(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, 2024, 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, 2024
Fixed maturities, at FVO
Other Equity Investments (3)
Trading Securities, at Fair ValueContingent Payment Arrangement
(in millions)
Balance, beginning of period$181 $57 $61 $(253)
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)4 1 — — 
Investment gains (losses), net— — (4)— 
Subtotal4 1 (4)— 
Other comprehensive income (loss)— — — — 
Purchases 47 4 — — 
Sales (33)(3)— — 
Settlements — — — 3 
Other — — — (5)
Activity related to consolidated VIEs/VOEs— — — — 
Transfers into Level 3 (1)79 — — — 
Transfers out of Level 3 (1)(54)— — — 
Balance, end of period$224 $59 $57 $(255)
Six Months Ended June 30, 2024
Fixed maturities, at FVO
Other Equity Investments (3)
Trading Securities, at Fair ValueContingent Payment Arrangement
(in millions)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $1 $(4)$— 
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)$31 $— $— $— 
______________
(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, 2024, 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-backedRMBSCMBS
(in millions)
Balance, beginning of period$2,121 $28 $— $34 $32 
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)3 — — — — 
Investment gains (losses), net(11)— — — — 
Subtotal(8)— — — — 
Other comprehensive income (loss)10 — — — — 
Purchases376 — — — 2 
Sales(162)(1)— — — 
Settlements— — — — — 
Other— — — — — 
Activity related to consolidated VIEs/VOEs— — — — — 
Transfers into Level 3 (1)11 — — — — 
Transfers out of Level 3 (1)(311)— — (34)— 
Balance, end of period$2,037 $27 $— $— $34 
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $— $— $— $— 
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 $— $— $— $— 
______________
(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, 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, 2023
Fixed maturities, at FVO
Other
Equity Investments (3)
Trading Securities, at Fair ValueSeparate Accounts AssetsContingent Payment Arrangement
(in millions)
Balance, beginning of period$224 $17 $55 $1 $(247)
Total gains and (losses), realized and unrealized, included in:
Net income (loss) as:
Net investment income (loss)(1)(3)— — — 
Investment gains (losses), net(2)— — — — 
Subtotal(3)(3)— — — 
Other comprehensive income (loss)— — — — — 
Purchases 74 44 — — — 
Sales (35)— 1 — — 
Settlements — — — — 1 
Other — — — — (4)
Activity related to consolidated VIEs/VOEs— 47 — — — 
Transfers into Level 3 (1)107 — — — — 
Transfers out of Level 3 (1)(150)— — — — 
Balance, end of period$217 $105 $56 $1 $(250)
Change in unrealized gains or losses for the period included in earnings for instruments held at the end of the reporting period (2)$— $(3)$— $— $— 
Change in unrealized gains or losses for the period included in other comprehensive income for instruments held at the end of the reporting period (2)$(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, 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:
Quantitative Information about Level 3 Fair Value Measurements as of June 30, 2024

Fair
Value
Valuation
Technique
Significant
Unobservable Input
Range
Weighted Average (2)
 (Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$362 Matrix pricing model
Spread over Benchmark
45 bps - 220 bps
135 bps
1,063 Market comparable 
companies
EBITDA multiples
Discount rate
Cash flow multiples
Loan to value
4.0x - 33.0x
0.0% - 28.9%
0.0x - 9.0x
9.6% - 12.8%
13.4x
3.7%
6.0x
3.6%
Trading securities, at fair value
61 Discounted cash flow
Earnings multiple
Discount factor
Discount years
9.1x
10.0%
7
Other equity investments— Discounted cash flow
Earnings Multiple
6.9x - 0.0x
0.0x
Purchased MRB asset (1) (2) (4)7,993 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

0.21%-12.38%
0.07%-14.97%
0.04%-66.21%
40 bps - 101 bps
11%-31%
0.01%-0.18%
0.07%-0.53%
0.33%-42.00%
2.00%
0.57%
6.81%
43 bps
24%
3.16%
(same for all ages)
(same for all ages)
Liabilities:
AB Contingent consideration payable$255 Discounted cash flow
Expected revenue growth rates
Discount rate
2.0% - 29.3%
1.9% - 10.4%
7.9%
4.6%
Direct MRB (1) (2) (3) (4)11,790 Discounted cash flow
Non-performance risk
Lapse rates
Withdrawal rates
Annuitization rates
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
109 bps
0.21%-29.37%
0.00%-14.97%
0.04%-100.00%
0.01%-0.18%
0.07%-0.53%
0.33%-42.00%
109 bps
3.22%
0.73%
5.18%
2.76%
(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 $12.6 billion of MRB liabilities and $803 million of MRB assets.
(4)Includes Legacy and Core products.
Quantitative Information about Level 3 Fair Value Measurements as of December 31, 2023
Fair
Value
Valuation
Technique
Significant
Unobservable Input
Range
Weighted Average (2)
 (Dollars in millions)
Assets:
Investments:
Fixed maturities, AFS:
Corporate$373 Matrix pricing model
Spread over benchmark
20 bps - 747 bps
181 bps
979 Market comparable companies
EBITDA multiples
 Discount rate
 Cash flow multiples
Loan to value
3.3x - 29.0x
0.0% - 22.8%
0.8x-10.0x
3.4%-61.0%
13.6x
3.9%
6.3x
13.8%
Trading securities, at fair value61 Discounted cash flow
Earnings multiple
Discounts factor
Discount years
9.1x
10.00%
7
Other equity investments2 Discounted cash flow    
Earnings Multiple
3.9x - 8.4x
6.5x
Purchased MRB asset (1) (2) (4)9,427 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
0.21% - 12.38%
0.07% - 14.97%
0.04% - 66.21%
35 bps - 97 bps
11% - 28%
0.01% - 0.18%
0.07% - 0.53%
0.33% - 42.00%
1.79%
0.46%
7.44%
45 bps
23%
3.07%
(same for all ages)
(same for all ages)
Liabilities:
AB Contingent consideration payable$253 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)14,021 Discounted cash flow
Non-performance risk
Lapse rates
Withdrawal rates
Annuitization rates
Mortality: Ages 0-40
Ages 41-60
Ages 61-115
118 bps
0.21% - 29.37%
0.00% - 14.97%
0.04% - 100.00%
0.01% - 0.18%
0.07% - 0.53%
0.33% - 42.00%
118 bps
3.07%
0.64%
5.38%
2.50%
(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 $14.6 billion of MRB liabilities and $591 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 for financial instruments not otherwise disclosed in Note 3 and Note 4 of the Notes to these Consolidated Financial Statements were as follows:
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, 2024:
Mortgage loans on real estate $18,802 $— $— $17,112 $17,112 
Policy loans$4,247 $— $— $4,496 $4,496 
Policyholders’ liabilities: Investment contracts$2,085 $— $— $2,033 $2,033 
FHLB funding agreements $7,167 $— $7,090 $— $7,090 
FABN funding agreements$6,251 $— $5,870 $— $5,870 
Funding agreement-backed commercial paper (FABCP)$242 $— $250 $— $250 
Long-term debt$3,830 $— $3,722 $— $3,722 
Separate Accounts liabilities$11,323 $— $— $11,323 $11,323 
December 31, 2023:
Mortgage loans on real estate$18,171 $— $— $16,471 $16,471 
Policy loans$4,158 $— $— $4,485 $4,485 
Policyholders’ liabilities: Investment contracts$1,663 $— $— $1,634 $1,634 
FHLB funding agreements $7,618 $— $7,567 $— $7,567 
FABN funding agreements$6,267 $— $5,840 $— $5,840 
Funding agreement-backed commercial paper (FABCP)$939 $— $948 $— $948 
Long-term debt $3,820 $— $3,742 $— $3,742 
Separate Accounts liabilities$10,715 $— $— $10,715 $10,715