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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of June 30, 2021						As of December 31, 2020
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	122,215		$	122,215		$	123,044		$	123,044
Trading securities		4,232			4,232			4,501			4,501
Equity securities		174			174			129			129
Mortgage loans on real estate		17,586			18,639			16,763			18,219
Derivative investments ⁽¹⁾		4,548			4,548			3,109			3,109
Other investments		3,940			3,940			3,974			3,974
Cash and invested cash		2,389			2,389			1,708			1,708
Other assets:
GLB direct embedded derivatives		1,767			1,767			450			450
GLB ceded embedded derivatives		53			53			82			82
Indexed annuity ceded embedded derivatives		515			515			550			550
Separate account assets		178,795			178,795			167,965			167,965

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(4,937	)		(4,937	)		(3,594	)		(3,594	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,835	)		(1,835	)		(1,854	)		(1,854	)
Account values of certain investment contracts		(40,570	)		(45,292	)		(40,947	)		(49,745	)
Short-term debt		(300	)		(308	)		-			-
Long-term debt		(6,334	)		(6,709	)		(6,682	)		(7,067	)
Reinsurance related embedded derivatives		(328	)		(328	)		(392	)		(392	)
Other liabilities:
Derivative liabilities⁽¹⁾		(637	)		(637	)		(906	)		(906	)
GLB ceded embedded derivatives		(152	)		(152	)		-			-

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Schedule of Mortgage Loans With Election Of Fair Value Option


	As of		As of
	June 30,		December 31,
	2021		2020
Fair value	$	818	$	832
Aggregate contractual principal		824		839

Fair Value Of Assets And Liabilities On A Recurring Basis



		As of June 30, 2021
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	95,574			$	5,429		$	101,003
U.S. government bonds			438			6				-			444
State and municipal bonds			-			6,919				-			6,919
Foreign government bonds			-			421				43			464
RMBS			-			3,026				1			3,027
CMBS			-			1,569				9			1,578
ABS			-			7,547				630			8,177
Hybrid and redeemable preferred securities			55			446				102			603
Trading securities			-			3,602				630			4,232
Equity securities			14			78				82			174
Mortgage loans on real estate			-			-				818			818
Derivative investments ⁽¹⁾			-			6,340				151			6,491
Cash and invested cash			-			2,389				-			2,389
Other assets:
GLB direct embedded derivatives			-			-				1,767			1,767
GLB ceded embedded derivatives			-			-				53			53
Indexed annuity ceded embedded derivatives			-			515				-			515
Separate account assets			596			178,191				-			178,787
Total assets		$	1,103		$	306,623			$	9,715		$	317,441

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	(4,937	)		$	-		$	(4,937	)
Reinsurance related embedded derivatives			-			(328	)			-			(328	)
Other liabilities:
Derivative liabilities⁽¹⁾			-			(2,430	)			(150	)		(2,580	)
GLB ceded embedded derivatives			-			-				(152	)		(152	)
Total liabilities		$	-		$	(7,695	)		$	(302	)	$	(7,997	)

‎



		As of December 31, 2020
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	97,668			$	5,121		$	102,789
U.S. government bonds			473			6				5			484
State and municipal bonds			-			6,921				-			6,921
Foreign government bonds			-			396				74			470
RMBS			-			3,074				2			3,076
CMBS			-			1,505				-			1,505
ABS			-			6,614				570			7,184
Hybrid and redeemable preferred securities			54			457				104			615
Trading securities			5			3,852				644			4,501
Equity securities			22			48				59			129
Mortgage loans on real estate			-			-				832			832
Derivative investments ⁽¹⁾			-			1,733				3,575			5,308
Cash and invested cash			-			1,708				-			1,708
Other assets:
GLB direct embedded derivatives			-			-				450			450
GLB ceded embedded derivatives			-			-				82			82
Indexed annuity ceded embedded derivatives			-			-				550			550
Separate account assets			606			167,351				-			167,957
Total assets		$	1,160		$	291,333			$	12,068		$	304,561

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(3,594	)	$	(3,594	)
Reinsurance related embedded derivatives			-			(392	)			-			(392	)
Other liabilities – derivative liabilities ⁽¹⁾			-			(1,072	)			(2,033	)		(3,105	)
Total liabilities		$	-		$	(1,464	)		$	(5,627	)	$	(7,091	)

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

‎

Fair Value Measured On A Recurring Basis Reconciliation



	For the Three Months Ended June 30, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	5,145		$	1		$	69		$	215		$	(1	)	$	5,429
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		66			-			-			14			(37	)		43
RMBS		2			(1	)		-			-			-			1
CMBS		1			-			-			8			-			9
ABS		688			1			4			99			(162	)		630
Hybrid and redeemable preferred
securities		85			-			11			6			-			102
Trading securities		715			2			-			(64	)		(23	)		630
Equity securities		61			20			-			1			-			82
Mortgage loans on real estate		874			5			-			(61	)		-			818
Derivative investments		2,661			(2	)		-			-			(2,658	)		1
Other assets: ⁽³⁾
GLB direct embedded derivatives		1,831			(64	)		-			-			-			1,767
GLB ceded embedded derivatives		42			11			-			-			-			53
Indexed annuity ceded embedded derivatives		527			-			-			-			(527	)		-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽³⁾		(4,170	)		-			-			-			4,170			-
Other liabilities – GLB ceded embedded
derivatives ⁽³⁾		(152	)		-			-			-			-			(152	)
Total, net	$	8,381		$	(27	)	$	84		$	213		$	762		$	9,413

‎



	For the Three Months Ended June 30, 2020
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	4,103		$	-		$	205		$	(14	)	$	50		$	4,344
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		87			-			(1	)		-			-			86
RMBS		1			-			-			-			1			2
CMBS		1			-			-			-			-			1
ABS		196			-			5			236			(13	)		424
Hybrid and redeemable preferred
securities		72			-			4			(4	)		18			90
Trading securities		651			28			-			(14	)		8			673
Equity securities		30			(1	)		-			-			-			29
Derivative investments		2,027			(1,402	)		(12	)		(18	)		-			595
Other assets: ⁽³⁾
GLB ceded embedded derivatives		728			(157	)		-			-			-			571
Indexed annuity ceded embedded derivatives		799			304			-			(439	)		-			664
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽³⁾		(1,380	)		(831	)		-			(61	)		-			(2,272	)
Other liabilities – GLB direct embedded
derivatives ⁽³⁾		(4,596	)		1,510			-			-			-			(3,086	)
Total, net	$	2,724		$	(549	)	$	201		$	(314	)	$	64		$	2,126

‎


	For the Six Months Ended June 30, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	5,121		$	3		$	(51	)	$	385		$	(29	)	$	5,429
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		74			-			(8	)		14			(37	)		43
RMBS		2			(1	)		-			-			-			1
CMBS		-			1			-			8			-			9
ABS		570			1			(3	)		282			(220	)		630
Hybrid and redeemable preferred
securities		104			-			12			(14	)		-			102
Trading securities		644			(1	)		-			2			(15	)		630
Equity securities		59			26			-			(3	)		-			82
Mortgage loans on real estate		832			7			3			(24	)		-			818
Derivative investments		1,542			1,249			-			(132	)		(2,658	)		1
Other assets: ⁽³⁾
GLB direct embedded derivatives		450			1,317			-			-			-			1,767
GLB ceded embedded derivatives		82			(29	)		-			-			-			53
Indexed annuity ceded embedded derivatives		550			32			-			(55	)		(527	)		-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽³⁾		(3,594	)		(626	)		-			50			4,170			-
Other liabilities – GLB ceded embedded
derivatives ⁽³⁾		-			(152	)		-			-			-			(152	)
Total, net	$	6,441		$	1,827		$	(47	)	$	508		$	684		$	9,413

‎


	For the Six Months Ended June 30, 2020
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other ⁽¹⁾			Net			Net			Value
Investments: ⁽²⁾
Fixed maturity AFS securities:
Corporate bonds	$	4,281		$	-		$	(180	)	$	151		$	92		$	4,344
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		90			-			(4	)		-			-			86
RMBS		11			-			-			-			(9	)		2
CMBS		1			-			-			-			-			1
ABS		268			-			1			258			(103	)		424
Hybrid and redeemable preferred
securities		78			-			(2	)		(4	)		18			90
Trading securities		666			(4	)		-			(20	)		31			673
Equity securities		30			(1	)		-			-			-			29
Derivative investments		868			(405	)		267			(135	)		-			595
Other assets: ⁽³⁾
GLB direct embedded derivatives		450			(450	)		-			-			-			-
GLB ceded embedded derivatives		60			511			-			-			-			571
Indexed annuity ceded embedded derivatives		927			189			-			(452	)		-			664
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽³⁾		(2,585	)		312			-			1			-			(2,272	)
Other liabilities: ⁽³⁾
GLB direct embedded derivatives		-			(3,086	)		-			-			-			(3,086	)
GLB ceded embedded derivatives		(9	)		9			-			-			-			-
Total, net	$	5,141		$	(2,925	)	$	82		$	(201	)	$	29		$	2,126

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

‎

Schedule Of Investment Holdings Movements



	For the Three Months Ended June 30, 2021
	Issuances		Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	410	$	(13	)	$	(6	)	$	(176	)	$	-	$	215
U.S. government bonds		-		-			(5	)		-			-		(5	)
Foreign government bonds		14		-			-			-			-		14
CMBS		8		-			-			-			-		8
ABS		168		-			-			(69	)		-		99
Hybrid and redeemable preferred
securities		6		-			-			-			-		6
Trading securities		36		(5	)		-			(95	)		-		(64	)
Equity securities		2		(1	)		-			-			-		1
Mortgage loans on real estate		9		(66	)		(4	)		-			-		(61	)
Total, net	$	653	$	(85	)	$	(15	)	$	(340	)	$	-	$	213



	For the Three Months Ended June 30, 2020
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	193		$	(99	)	$	(36	)	$	(43	)	$	(29	)	$	(14	)
ABS		242			-			-			(6	)		-			236
Hybrid and redeemable preferred
securities		-			(4	)		-			-			-			(4	)
Trading securities		1			-			-			(15	)		-			(14	)
Equity securities		1			(1	)		-			-			-			-
Derivative investments		131			(94	)		(55	)		-			-			(18	)
Other assets – indexed annuity ceded
embedded derivatives		8			-			-			(447	)		-			(439	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(92	)		-			-			31			-			(61	)
Total, net	$	484		$	(198	)	$	(91	)	$	(480	)	$	(29	)	$	(314	)



	For the Six Months Ended June 30, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	707		$	(17	)	$	(21	)	$	(267	)	$	(17	)	$	385
U.S. government bonds		-			-			(5	)		-			-			(5	)
Foreign government bonds		14			-			-			-			-			14
CMBS		8			-			-			-			-			8
ABS		368			-			-			(86	)		-			282
Hybrid and redeemable preferred
securities		6			(20	)		-			-			-			(14	)
Trading securities		124			(8	)		-			(114	)		-			2
Equity securities		6			(9	)		-			-			-			(3	)
Mortgage loans on real estate		81			(101	)		(4	)		-			-			(24	)
Derivative investments		174			(124	)		(182	)		-			-			(132	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			(58	)		-			(55	)
Future contract benefits – indexed annuity								-
and IUL contracts embedded derivatives		(108	)		-			-			158			-			50
Total, net	$	1,383		$	(279	)	$	(212	)	$	(367	)	$	(17	)	$	508


	For the Six Months Ended June 30, 2020
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	529		$	(172	)	$	(34	)	$	(94	)	$	(78	)	$	151
ABS		279			-			-			(21	)		-			258
Hybrid and redeemable preferred
securities		-			(4	)		-			-			-			(4	)
Trading securities		38			(25	)		-			(33	)		-			(20	)
Equity securities		1			(1	)		-			-			-			-
Derivative investments		249			(218	)		(166	)		-			-			(135	)
Other assets – indexed annuity ceded
embedded derivatives		17			-			-			(469	)		-			(452	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(81	)		-			-			82			-			1
Total, net	$	1,032		$	(420	)	$	(200	)	$	(535	)	$	(78	)	$	(201	)

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held



	For the Three					For the Six
	Months Ended					Months Ended
	June 30,					June 30,
	2021		2020			2021		2020
Trading securities	$	3	$	-		$	-	$	-
Equity securities		23		-			30		-
Mortgage loans on real estate		4		-			8		-
GLB		143		1,662			1,713		(3,205	)
Derivative investments		-		(1,361	)		-		(466	)
Embedded derivatives – indexed annuity
and IUL contracts		-		230			-		308
Total, net⁽¹⁾	$	173	$	531		$	1,751	$	(3,363	)

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI



	For the Three					For the Six
	Months Ended					Months Ended
	June 30,					June 30,
	2021		2020			2021			2020
Fixed maturity AFS securities:
Corporate bonds	$	65	$	174		$	(57	)	$	(194	)
Foreign government bonds		-		(1	)		(8	)		(4	)
ABS		3		6			(4	)		2
Hybrid and redeemable preferred
securities		12		4			13			(2	)
Mortgage loans on real estate		-		-			3			-
Total, net	$	80	$	183		$	(53	)	$	(198	)

Components Of The Transfers In And Out Of Level 3



	For the Three								For the Three
	Months Ended								Months Ended
	June 30, 2021								June 30, 2020
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	-	$	(1	)	$	(1	)	$	135	$	(85	)	$	50
Foreign government bonds		-		(37	)		(37	)		-		-			-
RMBS		-		-			-			1		-			1
ABS		-		(162	)		(162	)		15		(28	)		(13	)
Hybrid and redeemable preferred
securities		-		-			-			18		-			18
Trading securities		-		(23	)		(23	)		10		(2	)		8
Derivative investments		-		(2,658	)		(2,658	)		-		-			-
Other assets – indexed annuity ceded
embedded derivatives		-		(527	)		(527	)		-		-			-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		-		4,170			4,170			-		-			-
Total, net	$	-	$	762		$	762		$	179	$	(115	)	$	64



	For the Six								For the Six
	Months Ended								Months Ended
	June 30, 2021								June 30, 2020
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	10	$	(39	)	$	(29	)	$	254	$	(162	)	$	92
Foreign government bonds		-		(37	)		(37	)		-		-			-
RMBS		-		-			-			1		(10	)		(9	)
ABS		-		(220	)		(220	)		20		(123	)		(103	)
Hybrid and redeemable preferred
securities		-		-			-			18		-			18
Trading securities		14		(29	)		(15	)		33		(2	)		31
Derivative investments		-		(2,658	)		(2,658	)		-		-			-
Other assets – indexed annuity ceded
embedded derivatives		-		(527	)		(527	)		-		-			-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		-		4,170			4,170			-		-			-
Total, net	$	24	$	660		$	684		$	326	$	(297	)	$	29

Fair Value Inputs Quantitative Information



											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range ⁽¹⁾
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	3,678		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	0.4	%	-	7.6	%	1.5	%
Foreign government
bonds		43		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.0	%	-	4.6	%	3.5	%
ABS		19		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	2.5	%	-	2.5	%	2.5	%
Hybrid and redeemable
preferred securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.8	%	-	1.8	%	1.8	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	4.5	%	-	6.1	%	5.7	%
Other assets –
GLB direct and ceded		1,820		Discounted cash flow	Long-term lapse rate ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
embedded derivatives					Utilization of guaranteed withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					NPR ⁽⁶⁾	0.06	%	-	1.37	%	0.90	%
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.52	%

Liabilities
Other liabilities –
GLB ceded embedded
derivatives		(152	)	Discounted cash flow	Long-term lapse rate ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of guaranteed withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					NPR ⁽⁶⁾	0.06	%	-	1.37	%	0.90	%
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.52	%

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽³⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits.

⁽⁴⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁶⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption.

⁽⁷⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate.