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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments



	As of March 31, 2022						As of December 31, 2021
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	110,695		$	110,695		$	118,746		$	118,746
Trading securities		4,385			4,385			4,482			4,482
Equity securities		346			346			318			318
Mortgage loans on real estate		17,892			17,633			17,991			18,700
Derivative investments ⁽¹⁾		4,840			4,840			5,437			5,437
Other investments		4,118			4,118			4,284			4,284
Cash and invested cash		1,960			1,960			2,612			2,612
Other assets:
GLB direct embedded derivatives		1,880			1,880			1,963			1,963
GLB ceded embedded derivatives		42			42			56			56
Reinsurance-related embedded derivatives		56			56			-			-
Indexed annuity ceded embedded derivatives		493			493			528			528
Separate account assets		168,879			168,879			182,583			182,583

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(5,574	)		(5,574	)		(6,131	)		(6,131	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,815	)		(1,815	)		(1,788	)		(1,788	)
Account values of certain investment contracts		(41,276	)		(41,752	)		(41,194	)		(47,862	)
Short-term debt		-			-			(300	)		(302	)
Long-term debt		(6,561	)		(6,365	)		(6,325	)		(6,707	)
Reinsurance-related embedded derivatives		-			-			(206	)		(206	)
Other liabilities:
Derivative liabilities⁽¹⁾		(408	)		(408	)		(677	)		(677	)
GLB ceded embedded derivatives		(174	)		(174	)		(182	)		(182	)

⁽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
	March 31,		December 31,
	2022		2021
Fair value	$	537	$	739
Aggregate contractual principal		543		742

Fair Value Of Assets And Liabilities On A Recurring Basis



		As of March 31, 2022
		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		$	-		$	84,701			$	5,860		$	90,561
U.S. government bonds			396			22				-			418
State and municipal bonds			-			6,001				-			6,001
Foreign government bonds			-			343				40			383
RMBS			-			2,325				13			2,338
CMBS			-			1,575				17			1,592
ABS			-			7,941				988			8,929
Hybrid and redeemable preferred securities			51			324				98			473
Trading securities			-			3,588				797			4,385
Equity securities			14			228				104			346
Mortgage loans on real estate			-			-				537			537
Derivative investments ⁽¹⁾			-			6,226				272			6,498
Other investments – short-term investments			-			235				-			235
Cash and invested cash			-			1,960				-			1,960
Other assets:
GLB direct embedded derivatives			-			-				1,880			1,880
GLB ceded embedded derivatives			-			-				42			42
Reinsurance-related embedded derivatives			-			56				-			56
Indexed annuity ceded embedded derivatives			-			-				493			493
Separate account assets			506			168,371				-			168,877
Total assets		$	967		$	283,896			$	11,141		$	296,004

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(5,574	)	$	(5,574	)
Other liabilities:
Derivative liabilities⁽¹⁾			-			(1,797	)			(269	)		(2,066	)
GLB ceded embedded derivatives			-			-				(174	)		(174	)
Total liabilities		$	-		$	(1,797	)		$	(6,017	)	$	(7,814	)

‎



		As of December 31, 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		$	-		$	92,400			$	5,720		$	98,120
U.S. government bonds			428			5				-			433
State and municipal bonds			-			6,621				-			6,621
Foreign government bonds			-			391				41			432
RMBS			-			2,521				4			2,525
CMBS			-			1,599				-			1,599
ABS			-			7,642				870			8,512
Hybrid and redeemable preferred securities			54			357				93			504
Trading securities			32			3,622				828			4,482
Equity securities			7			216				95			318
Mortgage loans on real estate			-			-				739			739
Derivative investments ⁽¹⁾			-			7,597				149			7,746
Other investments – short-term investments			-			154				-			154
Cash and invested cash			-			2,612				-			2,612
Other assets:
GLB direct embedded derivatives			-			-				1,963			1,963
GLB ceded embedded derivatives			-			-				56			56
Indexed annuity ceded embedded derivatives			-			-				528			528
Separate account assets			646			181,929				-			182,575
Total assets		$	1,167		$	307,666			$	11,086		$	319,919

Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(6,131	)	$	(6,131	)
Reinsurance-related embedded derivatives			-			(206	)			-			(206	)
Other liabilities:
Derivative liabilities⁽¹⁾			-			(2,858	)			(128	)		(2,986	)
GLB ceded embedded derivatives			-			-				(182	)		(182	)
Total liabilities		$	-		$	(3,064	)		$	(6,441	)	$	(9,505	)

⁽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 March 31, 2022
							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	$	5,720		$	1		$	(353	)	$	358		$	134		$	5,860
Foreign government bonds		41			-			(1	)		-			-			40
RMBS		4			-			-			12			(3	)		13
CMBS		-			-			-			17			-			17
ABS		870			-			(27	)		187			(42	)		988
Hybrid and redeemable preferred
securities		93			-			5			-			-			98
Trading securities		828			(29	)		-			2			(4	)		797
Equity securities		95			17			-			(8	)		-			104
Mortgage loans on real estate		739			(3	)		(1	)		(198	)		-			537
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets: ⁽³⁾
GLB direct embedded derivatives		1,963			(83	)		-			-			-			1,880
GLB ceded embedded derivatives		56			(14	)		-			-			-			42
Indexed annuity ceded embedded derivatives		528			(53	)		-			18			-			493
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives ⁽³⁾		(6,131	)		559			-			(2	)		-			(5,574	)
Other liabilities – GLB ceded embedded
derivatives ⁽³⁾		(182	)		8			-			-			-			(174	)
Total, net	$	4,645		$	406		$	(383	)	$	386		$	70		$	5,124

‎



	For the Three Months Ended March 31, 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		$	2		$	(120	)	$	170		$	(28	)	$	5,145
U.S. government bonds		5			-			-			-			-			5
Foreign government bonds		74			-			(8	)		-			-			66
RMBS		2			-			-			-			-			2
CMBS		-			1			-			-			-			1
ABS		570			-			(7	)		183			(58	)		688
Hybrid and redeemable preferred
securities		104			-			1			(20	)		-			85
Trading securities		644			(3	)		-			66			8			715
Equity securities		59			6			-			(4	)		-			61
Mortgage loans on real estate		832			2			3			37			-			874
Derivative investments		1,542			1,251			-			(132	)		-			2,661
Other assets: ⁽³⁾
GLB direct embedded derivatives		450			1,381			-			-			-			1,831
GLB ceded embedded derivatives		82			(40	)		-			-			-			42
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		$	1,854		$	(131	)	$	295		$	(78	)	$	8,381

⁽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 March 31, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	427		$	-		$	(21	)	$	(43	)	$	(5	)	$	358
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		250			-			-			(56	)		(7	)		187
Trading securities		179			(132	)		-			(45	)		-			2
Equity securities		-			(8	)		-			-			-			(8	)
Mortgage loans on real estate		3			-			-			(201	)		-			(198	)
Other assets – indexed annuity ceded
embedded derivatives		16			-			-			2			-			18
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(128	)		-			-			126			-			(2	)
Total, net	$	776		$	(140	)	$	(21	)	$	(217	)	$	(12	)	$	386



	For the Three Months Ended March 31, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	297		$	(4	)	$	(15	)	$	(91	)	$	(17	)	$	170
ABS		200			-			-			(17	)		-			183
Hybrid and redeemable preferred
securities		-			(20	)		-			-			-			(20	)
Trading securities		88			(3	)		-			(19	)		-			66
Equity securities		4			(8	)		-			-			-			(4	)
Mortgage loans on real estate		72			(35	)		-			-			-			37
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	$	730		$	(194	)	$	(197	)	$	(27	)	$	(17	)	$	295

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



	For the Three
	Months Ended
	March 31,
	2022			2021
Trading securities	$	(30	)	$	(2	)
Equity securities		18			6
Mortgage loans on real estate		(3	)		4
Derivative investments		2			1,053
GLB embedded derivatives		120			1,570
Embedded derivatives – indexed annuity
and IUL contracts		84			43
Total, net⁽¹⁾	$	191		$	2,674

⁽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
	Months Ended
	March 31,
	2022			2021
Fixed maturity AFS securities:
Corporate bonds	$	(356	)	$	(122	)
Foreign government bonds		(2	)		(8	)
ABS		(27	)		(8	)
Hybrid and redeemable preferred
securities		5			2
Mortgage loans on real estate		-			3
Total, net	$	(380	)	$	(133	)

Components Of The Transfers In And Out Of Level 3



	For the Three								For the Three
	Months Ended								Months Ended
	March 31, 2022								March 31, 2021
	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	$	196	$	(62	)	$	134		$	10	$	(38	)	$	(28	)
RMBS		-		(3	)		(3	)		-		-			-
ABS		-		(42	)		(42	)		-		(58	)		(58	)
Trading securities		-		(4	)		(4	)		13		(5	)		8
Derivative investments		-		(15	)		(15	)		-		-			-
Total, net	$	196	$	(126	)	$	70		$	23	$	(101	)	$	(78	)

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	$	3,772		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	0.4	%	-	4.7	%	1.6	%
Foreign government
bonds		40		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.1	%	-	10.3	%	7.8	%
ABS		17		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.5	%	-	1.5	%	1.5	%
Equity securities		21		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	3.6	%	-	4.5	%	3.8	%
Other assets:
GLB direct and ceded		1,922		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⁾	0.14	%	-	1.59	%	1.14	%
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.53	%

Indexed annuity ceded
embedded derivatives		493		Discounted cash flow	Lapse rate ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Liabilities
Future contract benefits –
indexed annuity contracts
embedded derivatives	$	(5,574	)	Discounted cash flow	Lapse rate ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Other liabilities –
GLB ceded embedded
derivatives		(174	)	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⁾	0.14	%	-	1.59	%	1.14	%
					Mortality rate ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.53	%

⁽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. The range for indexed annuity contracts represents the lapse rates during the surrender charge period.

⁽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.