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Variable Interest Entities and Equity Method Investments | 6 Months Ended
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Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Variable Interest Entities and Equity Method Investments | 8. Variable Interest Entities and Equity Method Investments The Company regularly invests in real estate partnerships and investment funds and frequently participates in the design with the sponsor, but in most cases, its involvement is limited to financing. Some of these investments have been determined to be variable interest entities (“VIEs”). In certain instances, in addition to an economic interest in the entity, the Company holds the power to direct the most significant activities of the entity and is deemed the primary beneficiary. The Company consolidates all VIEs in which it is the primary beneficiary. The assets of consolidated VIEs are restricted and must first be used to settle their liabilities. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these consolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2024 and December 31, 2023. Consolidated Variable Interest Entities The assets and liabilities relating to the consolidated VIEs included in the financial statements are as follows:
|  | June 30, 2024 |  | December 31, 2023
|  | (Dollars in millions)
Fixed maturity securities, available for sale |  | $ | 44 |  |  | $ | 63 |
Equity securities, at fair value |  | 115 |  |  | 15 |
Private loans |  | 196 |  |  | 188 |
Real estate |  | 1,628 |  |  | 172 |
Real estate partnerships |  | 1,055 |  |  | — |
Investment funds |  | 487 |  |  | 4 |
Short-term investments |  | — |  |  | 4 |
Other invested assets |  | 150 |  |  | — |
Cash and cash equivalents |  | 132 |  |  | 26 |
Other assets |  | 158 |  |  | 61 |
Total assets of consolidated VIEs |  | $ | 3,965 |  |  | $ | 533 |
Notes payable |  | $ | 175 |  |  | $ | 174 |
Other liabilities |  | 94 |  |  | 14 |
Total liabilities of consolidated VIEs |  | $ | 269 |  |  | $ | 188 |
Unconsolidated Variable Interest Entities For unconsolidated VIEs, the Company is not the primary beneficiary as major decisions impacting the economic activities of the VIE require consent from one or more other partners. These unconsolidated VIEs are accounted for using the equity method of accounting or at amortized cost. In addition, certain equity securities and available-for-sale fixed maturity securities at fair value are the Company’s interests in limited partnerships that are unconsolidated VIEs. Creditors or beneficial interest holders of these VIEs have no recourse to the general credit of the Company, as the Company’s obligation is limited to the amount of its committed investment. The Company has not provided financial or other support to these unconsolidated VIEs in the form of liquidity arrangements, guarantees or other commitments to third-parties that may affect the fair value or risk of its variable interest in these VIEs as of June 30, 2024 and December 31, 2023. The carrying amount and maximum exposure to loss relating to these unconsolidated VIEs are as follows:
|  | June 30, 2024 |  | December 31, 2023
|  | Carrying Amount |  | Maximum Exposure to Loss |  | Carrying Amount |  | Maximum Exposure to Loss
|  | (Dollars in millions)
Fixed maturity securities, available for sale |  | $ | 2,100 |  |  | $ | 2,100 |  |  | $ | — |  |  | $ | — |
Mortgage loans on real estate |  | 673 |  |  | 746 |  |  | 632 |  |  | 632 |
Real estate partnerships |  | 889 |  |  | 892 |  |  | 301 |  |  | 301 |
Short-term investments |  | 57 |  |  | 57 |  |  | — |  |  | — |
Other invested assets |  | 157 |  |  | 157 |  |  | — |  |  | — |
Total |  | $ | 3,876 |  |  | $ | 3,952 |  |  | $ | 933 |  |  | $ | 933 |
Equity Method Investments The Company’s investments in investment funds, real estate partnerships, and other partnerships of which substantially all are limited liability companies (“LLCs”) or limited partnerships are accounted for using the equity method of accounting. As of June 30, 2024 and December 31, 2023, the Company’s equity accounted investments totaled $4.3 billion and $4.4 billion, respectively. As described in Note 2 - Summary of Significant Accounting Policies, the Company generally recognizes its share of earnings in its equity method investments within “Net investment income” using a three-month lag in instances where the investee’s financial information is not sufficiently timely or when the investee’s reporting period differs from the Company’s reporting period. The following aggregated summarized financial data reflects the latest available financial information and does not represent the Company’s pro rata share of the assets, liabilities or earnings of such entities. Aggregated total assets of these entities totaled $37.8 billion and $4.4 billion as of June 30, 2024 and December 31, 2023, respectively. Aggregate net income of these entities totaled $65 million and $103 million for the three and six months ended June 30, 2024 and $30 million and $66 million for the three and six months ended June 30, 2023, respectively. Aggregate net income from the underlying entities in which the Company invests primarily comprise investment income, including recurring investment income (loss) and realized and unrealized investment gains (losses), from investment funds, real estate properties and real estate funds.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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