Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Significant Inputs Used by Third-Party Pricing Services for Certain Fair Value Measurements of Fixed Maturity Securities that Classified as Level 2

The following table presents a summary of the significant inputs used by our pricing services for certain fair value measurements of fixed maturity securities that are classified as Level 2 as of March 31, 2023:

(Amounts in millions)	Fair value		Primary methodologies	Significant inputs
U.S. government, agencies and government-sponsored enterprises	$	3,441	Price quotes from trading desk, broker feeds	Bid side prices, trade prices, Option Adjusted Spread (“OAS”) to swap curve, Bond Market Association OAS, Treasury Curve, Agency Bullet Curve, maturity to issuer spread
State and political subdivisions	$	2,344	Multi-dimensional attribute-based modeling systems, third-party pricing vendors	Trade prices, material event notices, Municipal Market Data benchmark yields, broker quotes
Non-U.S. government	$	630	Matrix pricing, spread priced to benchmark curves, price quotes from market makers	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
U.S. corporate	$	24,240	Multi-dimensional attribute-based modeling systems, broker quotes, price quotes from market makers, OAS-based models	Bid side prices to Treasury Curve, Issuer Curve, which includes sector, quality, duration, OAS percentage and change for spread matrix, trade prices, comparative transactions, Trade Reporting and Compliance Engine (“TRACE”) reports
Non-U.S. corporate	$	6,419	Multi-dimensional attribute-based modeling systems, OAS-based models, price quotes from market makers	Benchmark yields, trade prices, broker quotes, comparative transactions, issuer spreads, bid-offer spread, market research publications, third-party pricing sources
Residential mortgage-backed	$	977	OAS-based models, single factor binomial models, internally priced	Prepayment and default assumptions, aggregation of bonds with similar characteristics, including collateral type, vintage, tranche type, weighted-average life, weighted-average loan age, issuer program and delinquency ratio, pay up and pay down factors, TRACE reports
Commercial mortgage-backed	$	1,819	Multi-dimensional attribute-based modeling systems, pricing matrix, spread matrix priced to swap curves, Trepp commercial mortgage-backed securities analytics model	Credit risk, interest rate risk, prepayment speeds, new issue data, collateral performance, origination year, tranche type, original credit ratings, weighted-average life, cash flows, spreads derived from broker quotes, bid side prices, spreads to daily updated swaps curves, TRACE reports
Other asset-backed	$	2,065	Multi-dimensional attribute-based modeling systems, spread matrix priced to swap curves, price quotes from market makers	Spreads to daily updated swap curves, spreads derived from trade prices and broker quotes, bid side prices, new issue data, collateral performance, analysis of prepayment speeds, cash flows, collateral loss analytics, historical issue analysis, trade data from market makers, TRACE reports

Assets by Class of Instrument that are Measured at Fair Value on Recurring Basis

The following tables set forth our assets by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

	March 31, 2023
(Amounts in millions)	Total		Level 1		Level 2		Level 3		NAV (1)
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,441	$	—	$	3,441	$	—	$	—
State and political subdivisions		2,403		—		2,344		59		—
Non-U.S. government		630		—		630		—		—
U.S. corporate:
Utilities		4,089		—		3,230		859		—
Energy		2,299		—		2,184		115		—
Finance and insurance		7,354		—		6,657		697		—
Consumer—non-cyclical		4,559		—		4,490		69		—
Technology and communications		3,038		—		3,026		12		—
Industrial		1,245		—		1,223		22		—
Capital goods		2,195		—		2,161		34		—
Consumer—cyclical		1,671		—		1,544		127		—
Transportation		1,112		—		1,088		24		—
Other		310		—		154		156		—
Total U.S. corporate		27,872		—		25,757		2,115		—
Non-U.S. corporate:
Utilities		746		—		448		298		—
Energy		990		—		871		119		—
Finance and insurance		1,959		—		1,828		131		—
Consumer—non-cyclical		589		—		516		73		—
Technology and communications		922		—		896		26		—
Industrial		854		—		779		75		—
Capital goods		537		—		485		52		—
Consumer—cyclical		222		—		213		9		—
Transportation		384		—		362		22		—
Other		856		—		834		22		—
Total non-U.S. corporate		8,059		—		7,232		827		—
Residential mortgage-backed		985		—		977		8		—
Commercial mortgage-backed		1,831		—		1,819		12		—
Other asset-backed		2,160		—		2,065		95		—
Total fixed maturity securities		47,381		—		44,265		3,116		—
Equity securities		364		286		45		33		—
Limited partnerships		1,901		—		—		22		1,879
Other invested assets:
Derivative assets:
Interest rate swaps		42		—		42		—		—
Foreign currency swaps		17		—		17		—		—
Equity index options		10		—		—		10		—
Total derivative assets		69		—		59		10		—
Short-term investments		7		—		7		—		—
Total other invested assets		76		—		66		10		—
Separate account assets		4,479		4,479		—		—		—
Total assets	$	54,201	$	4,765	$	44,376	$	3,181	$	1,879

(1)  Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.

	December 31, 2022
(Amounts in millions)	Total		Level 1		Level 2		Level 3		NAV (1)
Assets
Investments:
Fixed maturity securities:
U.S. government, agencies and government-sponsored enterprises	$	3,341	$	—	$	3,341	$	—	$	—
State and political subdivisions		2,399		—		2,344		55		—
Non-U.S. government		645		—		645		—		—
U.S. corporate:
Utilities		3,898		—		3,056		842		—
Energy		2,262		—		2,146		116		—
Finance and insurance		7,193		—		6,506		687		—
Consumer—non-cyclical		4,457		—		4,375		82		—
Technology and communications		2,947		—		2,923		24		—
Industrial		1,197		—		1,175		22		—
Capital goods		2,138		—		2,104		34		—
Consumer—cyclical		1,617		—		1,504		113		—
Transportation		1,100		—		1,057		43		—
Other		310		—		151		159		—
Total U.S. corporate		27,119		—		24,997		2,122		—
Non-U.S. corporate:
Utilities		740		—		445		295		—
Energy		960		—		842		118		—
Finance and insurance		1,946		—		1,821		125		—
Consumer—non-cyclical		566		—		493		73		—
Technology and communications		894		—		868		26		—
Industrial		818		—		770		48		—
Capital goods		546		—		451		95		—
Consumer—cyclical		276		—		212		64		—
Transportation		375		—		355		20		—
Other		889		—		868		21		—
Total non-U.S. corporate		8,010		—		7,125		885		—
Residential mortgage-backed		995		—		973		22		—
Commercial mortgage-backed		1,908		—		1,896		12		—
Other asset-backed		2,166		—		2,072		94		—
Total fixed maturity securities		46,583		—		43,393		3,190		—
Equity securities		319		239		46		34		—
Limited partnerships		1,816		—		—		24		1,792
Other invested assets:
Derivative assets:
Interest rate swaps		24		—		24		—		—
Foreign currency swaps		20		—		20		—		—
Equity index options		6		—		—		6		—
Total derivative assets		50		—		44		6		—
Short-term investments		3		—		3		—		—
Total other invested assets		53		—		47		6		—
Separate account assets		4,417		4,417		—		—		—
Total assets	$	53,188	$	4,656	$	43,486	$	3,254	$	1,792

(1)  Limited partnerships that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.

Assets Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

The following tables present additional information about assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the dates indicated:

	Beginning balance as of January 1, 2023		Total realized and unrealized gains (losses)																				Ending balance as of March 31, 2023		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income			Included in OCI		Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)					Included in net income			Included in OCI
Fixed maturity securities:
State and political subdivisions	$	55	$	1		$	3	$	—	$	—		$	—	$	—		$	—	$	—		$	59	$	1		$	3
U.S. corporate:
Utilities		842		—			11		40		(9	)		—		—			—		(25	)		859		—			10
Energy		116		—			1		—		(1	)		—		(1	)		—		—			115		—			2
Finance and insurance		687		—			3		15		—			—		(5	)		—		(3	)		697		—			4
Consumer—non-cyclical		82		—			1		—		—			—		(14	)		—		—			69		—			1
Technology and communications		24		—			1		—		—			—		—			—		(13	)		12		—			—
Industrial		22		—			—		—		—			—		—			—		—			22		—			—
Capital goods		34		—			—		—		—			—		—			—		—			34		—			1
Consumer—cyclical		113		—			2		—		—			—		(1	)		13		—			127		—			2
Transportation		43		—			1		—		—			—		(20	)		—		—			24		—			—
Other		159		—			—		—		—			—		(3	)		—		—			156		—			—
Total U.S. corporate		2,122		—			20		55		(10	)		—		(44	)		13		(41	)		2,115		—			20
Non-U.S. corporate:
Utilities		295		—			5		3		—			—		(5	)		—		—			298		—			5
Energy		118		—			2		—		—			—		(1	)		—		—			119		—			2
Finance and insurance		125		1			5		—		—			—		—			—		—			131		1			4
Consumer—non-cyclical		73		—			—		—		—			—		—			—		—			73		—			1
Technology and communications		26		—			—		—		—			—		—			—		—			26		—			—
Industrial		48		—			2		25		—			—		—			—		—			75		—			2
Capital goods		95		1			4		—		(12	)		—		(36	)		—		—			52		—			2
Consumer—cyclical		64		—			6		—		(6	)		—		(55	)		—		—			9		—			1
Transportation		20		—			1		1		—			—		—			—		—			22		—			1
Other		21		—			1		—		—			—		—			—		—			22		—			—
Total non-U.S. corporate		885		2			26		29		(18	)		—		(97	)		—		—			827		1			18
Residential mortgage-backed		22		—			1		—		—			—		—			—		(15	)		8		—			—
Commercial mortgage-backed		12		—			—		—		—			—		—			—		—			12		—			—
Other asset-backed		94		—			2		2		—			—		(1	)		—		(2	)		95		—			2
Total fixed maturity securities		3,190		3			52		86		(28	)		—		(142	)		13		(58	)		3,116		2			43
Equity securities		34		—			—		—		(1	)		—		—			—		—			33		—			—
Limited partnerships		24		(2	)		—		—		—			—		—			—		—			22		(2	)		—
Other invested assets:
Derivative assets:
Equity index options		6		1			—		3		—			—		—			—		—			10		1			—
Total derivative assets		6		1			—		3		—			—		—			—		—			10		1			—
Total other invested assets		6		1			—		3		—			—		—			—		—			10		1			—
Total Level 3 assets	$	3,254	$	2		$	52	$	89	$	(29	)	$	—	$	(142	)	$	13	$	(58	)	$	3,181	$	1		$	43

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.

	Beginning balance as of January 1, 2022		Total realized and unrealized gains (losses)																					Ending balance as of March 31, 2022		Total gains (losses) attributable to assets still held
(Amounts in millions)			Included in net income			Included in OCI			Purchases		Sales			Issuances		Settlements			Transfer into Level 3 (1)		Transfer out of Level 3 (1)					Included in net income			Included in OCI
Fixed maturity securities:
State and political subdivisions	$	82	$	1		$	(12	)	$	—	$	—		$	—	$	—		$	—	$	—		$	71	$	1		$	(12	)
Non-U.S. government		2		—			—			—		(1	)		—		—			—		—			1		—			—
U.S. corporate:
Utilities		950		—			(73	)		35		—			—		—			—		—			912		—			(73	)
Energy		76		—			(4	)		—		—			—		—			—		—			72		—			(4	)
Finance and insurance		685		—			(56	)		66		—			—		(2	)		—		(17	)		676		—			(55	)
Consumer—non-cyclical		104		—			(5	)		—		—			—		(7	)		—		—			92		—			(6	)
Technology and communications		29		—			(1	)		—		—			—		—			—		—			28		—			(1	)
Industrial		37		—			(2	)		—		—			—		—			—		—			35		—			(2	)
Capital goods		45		—			(4	)		—		—			—		—			—		—			41		—			(3	)
Consumer—cyclical		137		—			(8	)		—		—			—		(2	)		—		—			127		—			(8	)
Transportation		64		—			(3	)		5		—			—		(2	)		—		—			64		—			(3	)
Other		254		—			(11	)		—		—			—		(4	)		—		(17	)		222		—			(10	)
Total U.S. corporate		2,381		—			(167	)		106		—			—		(17	)		—		(34	)		2,269		—			(165	)
Non-U.S. corporate:
Utilities		345		—			(21	)		10		—			—		—			—		—			334		—			(21	)
Energy		145		—			(7	)		—		—			—		—			—		—			138		—			(7	)
Finance and insurance		160		1			(18	)		—		—			—		—			—		—			143		1			(18	)
Consumer—non-cyclical		63		—			(3	)		—		—			—		—			—		—			60		—			(3	)
Technology and communications		28		—			(1	)		—		—			—		—			—		—			27		—			(1	)
Industrial		93		—			(6	)		—		—			—		—			—		(13	)		74		—			(4	)
Capital goods		173		—			(8	)		—		—			—		(33	)		—		—			132		—			(8	)
Consumer—cyclical		76		—			(7	)		—		—			—		—			17		—			86		—			(7	)
Transportation		53		—			(2	)		—		—			—		(29	)		—		—			22		—			(2	)
Other		26		—			(2	)		—		—			—		—			—		—			24		—			(2	)
Total non-U.S. corporate		1,162		1			(75	)		10		—			—		(62	)		17		(13	)		1,040		1			(73	)
Residential mortgage-backed		27		—			(1	)		9		—			—		(1	)		4		(5	)		33		—			—
Commercial mortgage-backed		16		—			(1	)		—		—			—		—			—		—			15		—			(1	)
Other asset-backed		138		—			(7	)		6		—			—		(3	)		—		(34	)		100		—			(5	)
Total fixed maturity securities		3,808		2			(263	)		131		(1	)		—		(83	)		21		(86	)		3,529		2			(256	)
Equity securities		37		—			—			—		—			—		—			—		(1	)		36		—			—
Limited partnerships		26		—			—			—		—			—		—			—		—			26		—			—
Other invested assets:
Derivative assets:
Equity index options		42		(6	)		—			5		—			—		(11	)		—		—			30		(3	)		—
Total derivative assets		42		(6	)		—			5		—			—		(11	)		—		—			30		(3	)		—
Total other invested assets		42		(6	)		—			5		—			—		(11	)		—		—			30		(3	)		—
Total Level 3 assets	$	3,913	$	(4	)	$	(263	)	$	136	$	(1	)	$	—	$	(94	)	$	21	$	(87	)	$	3,621	$	(1	)	$	(256	)

(1)  The transfers into and out of Level 3 for fixed maturity securities were related to changes in the primary pricing source and changes in the observability of external information used in determining the fair value, such as external ratings or credit spreads, as well as changes in the industry sectors assigned to specific securities.

Gains and Losses Included in Net Income (Loss) from Assets Measured at Fair Value

The following table presents the gains and losses included in net income from assets measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31:

(Amounts in millions)	2023			2022
Total realized and unrealized gains (losses) included in net income:
Net investment income	$	3		$	2
Net investment gains (losses)		(1	)		(6	)
Total	$	2		$	(4	)
Net gains (losses) included in net income attributable to assets still held:
Net investment income	$	2		$	2
Net investment gains (losses)		(1	)		(3	)
Total	$	1		$	(1	)

Summary of Significant Unobservable Inputs Used for Certain Asset Fair Value Measurements

The following table presents a summary of the significant unobservable inputs used for certain asset fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2023:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average (1)
Fixed maturity securities:
U.S. corporate:
Utilities		Internal models	$	830		Credit spreads		71bps - 258bps		180bps
Energy		Internal models		46		Credit spreads		152bps - 291bps		213bps
Finance and insurance		Internal models		685		Credit spreads		108bps - 391bps		248bps
Consumer—non-cyclical		Internal models		69		Credit spreads		115bps - 291bps		181bps
Technology and communications		Internal models		12		Credit spreads		100bps - 141bps		117bps
Industrial		Internal models		22		Credit spreads		151bps - 242bps		176bps
Capital goods		Internal models		34		Credit spreads		100bps - 215bps		170bps
Consumer—cyclical		Internal models		127		Credit spreads		115bps - 226bps		165bps
Transportation		Internal models		24		Credit spreads		59bps - 193bps		134bps
Other		Internal models		108		Credit spreads		123bps - 169bps		130bps
Total U.S. corporate		Internal models	$	1,957		Credit spreads		59bps - 391bps		200bps
Non-U.S. corporate:
Utilities		Internal models	$	298		Credit spreads		97bps - 212bps		157bps
Energy		Internal models		112		Credit spreads		125bps - 242bps		181bps
Finance and insurance		Internal models		130		Credit spreads		152bps - 358bps		176bps
Consumer—non-cyclical		Internal models		71		Credit spreads		84bps - 168bps		128bps
Technology and communications		Internal models		25		Credit spreads		125bps - 160bps		147bps
Industrial		Internal models		74		Credit spreads		100bps - 235bps		178bps
Capital goods		Internal models		52		Credit spreads		84bps - 291bps		154bps
Transportation		Internal models		20		Credit spreads		151bps - 201bps		160bps
Other		Internal models		22		Credit spreads		101bps - 172bps		148bps
Total non-U.S. corporate		Internal models	$	804		Credit spreads		84bps - 358bps		162bps
Derivative assets:
Equity index options		Discounted cash flows	$	10		Equity index volatility		6% - 25%		20%
						Lapse rate		2% - 10%		7%
						Non-performance risk (counterparty credit risk)		43bps - 83bps		69bps
Other assets (2)		Cash flow model	$	154		Equity index volatility		17% - 31%		23%

(1)  Unobservable inputs weighted by the relative fair value of the associated instrument for fixed maturity securities, notional for derivative assets and the policyholder account balances associated with the instrument for the net reinsured portion of our variable annuity MRBs.

(2)  Represents the net reinsured portion of our variable annuity MRBs.

Liabilities by Class of Instrument that are Measured at Fair Value on Recurring Basis

The following tables set forth our liabilities by class of instrument that are measured at fair value on a recurring basis as of the dates indicated:

	March 31, 2023
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed index annuity embedded derivatives	$	184	$	—	$	—	$	184
Indexed universal life embedded derivatives		15		—		—		15
Total policyholder account balances		199		—		—		199
Derivative liabilities:
Interest rate swaps		389		—		389		—
Foreign currency swaps		1		—		1		—
Total derivative liabilities		390		—		390		—
Total liabilities	$	589	$	—	$	390	$	199

	December 31, 2022
(Amounts in millions)	Total		Level 1		Level 2		Level 3
Liabilities
Policyholder account balances:
Fixed index annuity embedded derivatives	$	202	$	—	$	—	$	202
Indexed universal life embedded derivatives		15		—		—		15
Total policyholder account balances		217		—		—		217
Derivative liabilities:
Interest rate swaps		522		—		522		—
Total derivative liabilities		522		—		522		—
Total liabilities	$	739	$	—	$	522	$	217

Liabilities Measured at Fair Value on Recurring Basis and Utilized Significant Unobservable (Level 3) Inputs to Determine Fair Value

The following tables present additional information about liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value as of and for the dates indicated:

 

	Beginning balance as of January 1, 2023		Total realized and unrealized (gains) losses																			Ending balance as of March 31, 2023		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)			Included in OCI		Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3					Included in net (income)			Included in OCI
Policyholder account balances:
Fixed index annuity embedded derivatives	$	202	$	2		$	—	$	—	$	—	$	—	$	(19	)	$	—	$	(1	)	$	184	$	2		$	—
Indexed universal life embedded derivatives		15		(5	)		—		—		—		5		—			—		—			15		(5	)		—
Total policyholder account balances		217		(3	)		—		—		—		5		(19	)		—		(1	)		199		(3	)		—
Total Level 3 liabilities	$	217	$	(3	)	$	—	$	—	$	—	$	5	$	(19	)	$	—	$	(1	)	$	199	$	(3	)	$	—

	Beginning balance as of January 1, 2022		Total realized and unrealized (gains) losses																			Ending balance as of March 31, 2022		Total (gains) losses attributable to liabilities still held
(Amounts in millions)			Included in net (income)			Included in OCI		Purchases		Sales		Issuances		Settlements			Transfer into Level 3		Transfer out of Level 3					Included in net (income)			Included in OCI
Policyholder account balances:
Fixed index annuity embedded derivatives	$	294	$	(12	)	$	—	$	—	$	—	$	—	$	(20	)	$	—	$	(1	)	$	261	$	(12	)	$	—
Indexed universal life embedded derivatives		25		(11	)		—		—		—		7		—			—		—			21		(11	)		—
Total policyholder account balances		319		(23	)		—		—		—		7		(20	)		—		(1	)		282		(23	)		—
Total Level 3 liabilities	$	319	$	(23	)	$	—	$	—	$	—	$	7	$	(20	)	$	—	$	(1	)	$	282	$	(23	)	$	—

Gains and Losses Included in Net (Income) from Liabilities Measured at Fair Value

The following table presents the gains and losses included in net (income) from liabilities measured at fair value on a recurring basis and for which we have utilized significant unobservable (Level 3) inputs to determine fair value and the related income statement line item in which these gains and losses were presented for the three months ended March 31:

(Amounts in millions)	2023			2022
Total realized and unrealized (gains) losses included in net (income):
Net investment income	$	—		$	—
Net investment (gains) losses		(3	)		(23	)
Total	$	(3	)	$	(23	)
Total (gains) losses included in net (income) attributable to liabilities still held:
Net investment income	$	—		$	—
Net investment (gains) losses		(3	)		(23	)
Total	$	(3	)	$	(23	)

Summary of Significant Unobservable Inputs Used for Certain Liability Fair Value Measurements

The following table presents a summary of the significant unobservable inputs used for certain liability fair value measurements that are based on internal models and classified as Level 3 as of March 31, 2023:

(Amounts in millions)	Valuation technique		Fair value		Unobservable input		Range		Weighted- average (1)
Policyholder account balances:
Fixed index annuity embedded derivatives		Option budget method	$	184		Expected future interest credited		—  % - 3%		1%
Indexed universal life embedded derivatives		Option budget method	$	15		Expected future interest credited		2% - 13%		5%
Market risk benefits: (2)
						GMWB withdrawal utilization rate		—  % - 58%		47%
						Non-performance risk (credit spreads)		43bps - 83bps		69bps
Fixed index annuities		Cash flow model	$	60		Expected future interest credited		1% - 3%		1%
						Lapse rate		2% - 11%		5%
						GMWB withdrawal utilization rate		61% - 89%		77%
						Non-performance risk (credit spreads)		43bps - 83bps		69bps
Variable annuities		Cash flow model	$	673		Equity index volatility		17% - 31%		23%

(1)  Unobservable inputs weighted by the policyholder account balances associated with the instrument.

(2)  Refer to note 13 for additional details related to MRBs.

Fair Value Financial Instruments Not Required to be Carried at Fair Value

The following represents our estimated fair value of financial assets and liabilities that are not required to be carried at fair value as of the dates indicated:

	March 31, 2023
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net		(1	)	$	6,891	$	6,332	$	—	$	—	$	6,332
Bank loan investments		(1	)		495		479		—		—		479
Liabilities:
Long-term borrowings		(1	)		1,600		1,351		—		1,351		—
Investment contracts		(1	)		6,383		6,791		—		—		6,791
Other firm commitments:
Commitments to fund bank loan investments	$	186			—		—		—		—		—
Ordinary course of business lending commitments		17			—		—		—		—		—

(1)  These financial instruments do not have notional amounts.

	December 31, 2022
	Notional amount			Carrying amount		Fair value
(Amounts in millions)						Total		Level 1		Level 2		Level 3
Assets:
Commercial mortgage loans, net		(1	)	$	7,010	$	6,345	$	—	$	—	$	6,345
Bank loan investments		(1	)		467		474		—		—		474
Liabilities:
Long-term borrowings		(1	)		1,611		1,346		—		1,346		—
Investment contracts		(1	)		6,794		7,171		—		—		7,171
Other firm commitments:
Commitments to fund bank loan investments	$	70			—		—		—		—		—
Ordinary course of business lending commitments		24			—		—		—		—		—

(1)  These financial instruments do not have notional amounts.

Summary of carrying value of limited partnerships and commitments to fund

The following table presents the carrying value of limited partnerships and commitments to fund as of the dates indicated:

	March 31, 2023				December 31, 2022
(Amounts in millions)	Carrying value		Commitments to fund		Carrying value		Commitments to fund
Limited partnerships accounted for at NAV:
Private equity funds (1)	$	1,726	$	1,056	$	1,647	$	1,107
Real estate funds (2)		86		77		82		79
Infrastructure funds (3)		67		25		63		29
Total limited partnerships accounted for at NAV		1,879		1,158		1,792		1,215
Limited partnerships accounted for at fair value		22		1		24		1
Limited partnerships accounted for under equity method of accounting		555		126		515		149
Total	$	2,456	$	1,285	$	2,331	$	1,365

(1) This class employs various investment strategies such as leveraged buyout, growth equity, venture capital and mezzanine financing, generally investing in debt or equity positions directly in companies or assets of various sizes across diverse industries globally, primarily concentrated in North America.

(2) This class invests in real estate in North America, Europe and Asia via direct property ownership, joint ventures, mortgages and investments in debt and equity instruments.

(3) This class invests in the debt or equity of cash flow generating assets diversified across a variety of industries, including transportation, energy infrastructure, renewable power, social infrastructure, power generation, water, telecommunications and other regulated entities globally.