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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Carrying Amount and Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are shown below:

			December 31,
			2024												2023
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(Dollars in millions)
Financial assets:
Available-for-sale fixed maturity securities			$	47,292					$	47,292					$	12,877					$	12,877
Equity securities (1)			1,142						1,142						1,404						1,404
Mortgage loans on real estate, net of allowance			12,117						11,928						5,658						5,405
Private loans, net of allowance			5,732						5,790						194						194
Real estate partnerships (2)			932						932						—						—
Investment funds (3)			124						124						—						—
Policy loans			274						274						390						390
Short-term investments (4)			4,177						4,177						2,397						2,397
Other invested assets:
Derivative assets			1,341						1,341						227						227
Collaterals received on derivatives (excluding excess collateral)			(1,298)						(1,298)						(226)						(226)
Separately managed accounts			71						71						105						105
Other (5)			941						943						14						14
Cash and cash equivalents			11,330						11,330						3,192						3,192
Other assets - market risk benefits			857						857						34						34
Separate account assets (6)			1,343						1,343						1,189						1,189
Total financial assets			$	86,375					$	86,245					$	27,455					$	27,202
Financial liabilities:
Policyholders’ account balances – embedded derivative			$	1,123					$	1,123					$	872					$	872
Market risk benefits			3,655						3,655						34						34
Other liabilities:
Funds withheld for reinsurance liabilities			37						37						—						—
Notes payable			189						189						174						174
Long term borrowings			2,957						2,977						1,493						1,493
Separate account liabilities (6)			1,343						1,343						1,189						1,189
Total financial liabilities			$	9,304					$	9,324					$	3,762					$	3,762

(1)Balance as of December 31, 2024 and December 31, 2023 includes $0 million and $424 million, respectively, of private equity measured at cost less impairment, if any, as their fair values were not readily determinable and were therefore not subject to fair value hierarchy.

(2)Balances represent real estate partnerships in which the company has elected fair value option under ASC 825. Real estate partnerships accounted for as equity method investments are $1.8 billion and directly held real estate is $2.2 billion as of December 31, 2024. Real estate partnerships accounted for as equity method investments and directly held real estate was $3.6 billion as of December 31, 2023.

(3)Balances represent financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC 946. Investment funds accounted for as equity method investments are $2.5 billion and investment funds measured using NAV as a practical expedient are $353 million as of December 31, 2024. Investment funds accounted for as equity method investments and measured using NAV as a practical expedient was $1.6 billion as of December 31, 2023.

(4)Balance as of December 31, 2024 includes $400 million of amounts loaned under reverse repurchase agreements. The fair value of the collateral received under these agreements were $783 million as of December 31, 2024. We had no outstanding reverse repurchase agreements as of December 31, 2023.

(5)Other invested assets accounted for as equity method investments, and therefore excluded from the table, are $959 million and $0 million as of December 31, 2024 and December 31, 2023.

(6)Balance includes $31 million and $26 million of assets, and corresponding liabilities, that are not subject to fair value hierarchy as of December 31, 2024 and December 31, 2023, respectively.

Schedule of Fair Value Hierarchy Measurements of Financial Instruments

The fair value hierarchy measurements for assets and liabilities measured at fair value on a recurring basis are shown below:

			Assets and Liabilities Carried at Fair Value by Hierarchy Level
			Total Fair Value						Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2024
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government			$	86					$	76					$	10					$	—
U.S. states and political subdivisions			3,207						—						3,151						56
Foreign governments			1,541						—						1,541						—
Corporate debt securities			32,848						—						30,192						2,656
Residential mortgage-backed securities			1,106						—						1,087						19
Commercial mortgage-backed securities			2,796						—						2,721						75
Collateralized debt securities			5,708						—						3,077						2,631
Total fixed maturity, available-for-sale			47,292						76						41,779						5,437
Equity securities:
Common stock			747						606						25						116
Preferred stock			391						22						12						357
Private equity and other			4						—						—						4
Total equity securities			1,142						628						37						477
Real estate at fair value (1)			1,283						—						—						1,283
Real estate partnerships at fair value (1)			932						—						—						932
Investment funds (1)(2)			124						—						—						124
Short-term investments			4,177						3,003						821						353
Other invested assets:
Derivative assets			1,341						—						1,118						223
Collaterals received on derivatives (excluding excess collateral)			(1,298)						(1,298)						—						—
Separately managed accounts			71						—						—						71
Other			315						—						11						304
Cash and cash equivalents			11,330						11,330						—						—
Other assets – market risk benefit assets			857						—						—						857
Separate account assets (3)			1,312						258						1,054						—
Total financial assets			$	68,878					$	13,997					$	44,820					$	10,061
Financial liabilities
Policyholders’ account balances – embedded derivative			$	1,123					$	—					$	—					$	1,123
Market risk benefits			3,655						—						—						3,655
Funds withheld for reinsurance liabilities – embedded derivatives			37						—						—						37
Separate account liabilities (3)			1,312						258						1,054						—
Total financial liabilities			$	6,127					$	258					$	1,054					$	4,815

(1)Balances include financial assets that are fair valued in accordance with ASC 825 as well as financial assets that are fair valued as a result of consolidation of investment company VIE in accordance with ASC Topic 946.

(2)Balance excludes $353 million of investments measured at estimated fair value using NAV as a practical expedient.

(3)Balance excludes $31 million of assets, and corresponding liabilities, that are not subject to fair value hierarchy.

			Assets and Liabilities Carried at Fair Value by Hierarchy Level
			Total Fair Value						Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2023
Financial assets
Available-for-sale fixed maturity securities:
U.S. treasury and government			$	62					$	62					$	—					$	—
U.S. states and political subdivisions			578						—						578						—
Foreign governments			9						—						9						—
Corporate debt securities			10,784						—						8,570						2,214
Residential mortgage-backed securities			127						—						127						—
Collateralized debt securities			1,317						—						416						901
Total fixed maturity, available-for-sale			12,877						62						9,700						3,115
Equity securities:
Common stock			1,307						314						—						993
Preferred stock			97						22						—						75
Total equity securities			1,404						336						—						1,068
Short-term investments			2,397						1,100						—						1,297
Other invested assets:
Derivative assets			227						—						—						227
Collaterals received on derivatives (excluding excess collateral)			(226)						—						—						(226)
Separately managed accounts			105						—						—						105
Cash and cash equivalents			3,192						3,192						—						—
Other assets – market risk benefit assets			34						—						—						34
Separate account assets (1)			1,163						406						757						—
Total financial assets			$	21,173					$	5,096					$	10,457					$	5,620
Financial liabilities
Policyholders’ account balances – embedded derivative			$	872					$	—					$	—					$	872
Market risk benefits			34						—						—						34
Separate account liabilities (1)			1,163						406						757						—
Total financial liabilities			$	2,069					$	406					$	757					$	906

(1)Balance includes $26 million of assets, and corresponding liabilities, that are not subject to fair value hierarchy.

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Recorded at Fair Value on a Recurring Basis

The carrying value and estimated fair value of financial instruments not recorded at fair value on a recurring basis are shown below:

			Carrying Amount						Fair Value						Fair Value Hierarchy Level
															Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2024
Financial assets
Mortgage loans on real estate, net of allowance			$	12,117					$	11,928					$	—					$	—					$	11,928
Private loans, net of allowance			5,732						5,790						—						145						5,645
Policy loans			274						274						—						—						274
Other invested assets			626						628						—						406						222
Total financial assets			$	18,749					$	18,619
Financial liabilities
Policyholders' account balances – investment contracts, excluding embedded derivative			$	79,384					$	79,384					$	—					$	—					$	79,384
Long term borrowings			2,957						2,977						—						—						2,977
Notes payable			189						189						—						—						189
Total financial liabilities			$	82,530					$	82,551
			Carrying Amount						Fair Value						Fair Value Hierarchy Level
															Level 1						Level 2						Level 3
			(Dollars in millions)
December 31, 2023
Financial assets
Mortgage loans on real estate, net of allowance			$	5,658					$	5,405					$	—					$	—					$	5,405
Private loans, net of allowance			194						194						—						—						194
Policy loans			390						390						—						—						390
Other invested assets			14						14						—						—						14
Total financial assets			$	6,256					$	6,003
Financial liabilities
Policyholders' account balances – investment contracts, excluding embedded derivative			$	14,097					$	14,097					$	—					$	—					$	14,097
Long term borrowings			1,493						1,493						—						—						1,493
Notes payable			174						174						—						—						174
Total financial liabilities			$	15,764					$	15,764

Schedule of Fair Value Assets Measured on Recurring Basis

For financial assets and financial liabilities measured at fair value on a recurring basis using Level 3 inputs during the periods, reconciliations of the beginning and ending balances are shown below:

			Assets															Liabilities
			Invested Assets (1)						Derivative Assets																		Policyholders’ Account Balances – Embedded Derivative												Funds Withheld for Reinsurance Liabilities - Embedded Derivative
			(Dollars in millions)
Balance at December 31, 2022			$	3,167					$	121																	$	726											$	—
Fair value changes in net income			97						19																		147												—
Fair value changes in other comprehensive income			149						89																		—												—
Purchases			7,301						133																		—												—
Sales			(4,935)						—																		—												—
Settlements or maturities			—						(135)																		—												—
Premiums less benefits			—						—																		(1)												—
Transfers out of Level 3			(194)						—																		—												—
Balance at December 31, 2023			5,585						227																		872												—
Acquisitions from business combination			4,288						—																		—												—
Fair value changes in net income			20						124																		229												37
Fair value changes in other comprehensive income			75						—																		—												—
Purchases			2,011						148																		—												—
Sales			(913)						(67)																		—												—
Settlements or maturities			(926)						(209)																		(32)												—
Premiums less benefits			—						—																		54												—
Transfers into Level 3			379						—																		—												—
Transfers out of Level 3			(1,538)						—																		—												—
Balance at December 31, 2024			$	8,981					$	223																	$	1,123											$	37

(1)Balance includes separately managed accounts and certain consolidated variable interest entities.

Summary of Valuation Techniques and Unobservable Inputs of Level 3 Fair Value Measurements

The following summarizes the valuation techniques and significant unobservable inputs used for recurring fair value measurements categorized within Level 3, excluding investments where third party valuation inputs were not reasonably available.

Type of Asset			Valuation Techniques			Significant Unobservable Inputs			Range
Available-for-sale fixed maturity securities			Discounted cash flows			Discount rate			•1% -10%
Real estate and real estate partnerships			Broker price opinions
Short-term investments			Discounted cash flows			Discount rate			•6% -24%
Derivative assets			Vendor sourced prices			Equity index volatility
						Forward price / dividend
Separately managed accounts			Current value method			NCY EBITDA (1)

(1)NCY EBITDA uses forecasted EBITDA expected to be achieved over the next calendar year.

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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