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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Fair Value and Carrying Value of Financial Instruments

The following table summarizes the fair value and carrying value of the Company’s financial instruments (in millions, recast for the adoption of LDTI):


		December 31, 2022				December 31, 2021
		Carrying Value		Fair Value		Carrying Value		Fair Value
Assets
	Debt securities (1)	$	44,762	$	44,762	$	53,375	$	53,375
	Equity securities	393		393		279		279
	Mortgage loans (1)	11,549		10,841		11,482		11,910
	Limited partnerships	3,212		3,212		2,831		2,831
	Policy loans (1)	4,377		4,377		4,475		4,475
	Freestanding derivative instruments	1,270		1,270		1,417		1,417
	Federal Home Loan Bank of Indianapolis ("FHLBI") capital stock	146		146		125		125
	Cash and cash equivalents	4,298		4,298		2,623		2,623
	Reinsurance recoverable on market risk benefits	221		221		383		383
	Market risk benefit assets	4,865		4,865		1,664		1,664
	Separate account assets	195,906		195,906		248,949		248,949

Liabilities
	Annuity reserves (2)	37,357		32,377		37,763		46,085
	Market risk benefit liabilities	5,662		5,662		8,033		8,033
	Reserves for guaranteed investment contracts (3)	1,128		1,099		894		923
	Trust instruments supported by funding agreements (3)	5,887		5,760		5,986		6,175
	FHLB funding agreements (3)	2,004		2,104		1,950		1,938
	Funds withheld payable under reinsurance treaties (1)	22,957		22,957		29,007		29,007
	Long-term debt	2,635		2,344		2,649		2,745
	Securities lending payable	36		36		17		17
	Freestanding derivative instruments	2,065		2,065		41		41
	Notes issued by consolidated VIEs	1,732		1,732		1,404		1,404
	Repurchase agreements	1,012		1,012		1,572		1,572

	Separate account liabilities	195,906		195,906		248,949		248,949

(1) Includes items carried at fair value under the fair value option and trading securities. (2) Annuity reserves represent only the components of other contract holder funds and reserves for future policy benefits and claims payable that are considered to be financial instruments. The fair value amounts shown in the table for 2021 have been revised for an immaterial error related to the historical disclosure for annuity reserves not reported at fair value within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets. (3) Included as a component of other contract holder funds on the Consolidated Balance Sheets.

Schedule of Fair Value Option, Disclosures

The fair value and aggregate contractual principal for mortgage loans where the fair value option was elected after December 31, 2021, were as follows (in millions):


	December 31,
	2022
Fair value	$	582
Aggregate contractual principal	591

Schedule of Assets and Liabilities Carried at Fair Value by Hierarchy Levels

The following tables summarize the Company’s assets and liabilities that are carried at fair value by hierarchy levels (in millions, recast for the adoption of LDTI):


		December 31, 2022
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	5,185	$	5,184	$	1	$	—
	Other government securities	1,467		—		1,467		—
	Public utilities	5,225		—		5,225		—
	Corporate securities	25,146		—		25,090		56
	Residential mortgage-backed	464		—		464		—
	Commercial mortgage-backed	1,638		—		1,638		—
	Other asset-backed securities	5,637		—		5,637		—
	Equity securities	393		165		106		122
	Mortgage loans	582		—		—		582
	Limited partnerships (1)	440		—		—		440
	Policy loans	3,419		—		—		3,419
	Freestanding derivative instruments	1,270		—		1,270		—
	Cash and cash equivalents	4,298		4,298		—		—
	Reinsurance recoverable on market risk benefits	221		—		—		221
	Market risk benefit assets	4,865		—		—		4,865
	Separate account assets	195,906		—		195,906		—
	Total	$	256,156	$	9,647	$	236,804	$	9,705

Liabilities
	Embedded derivative liabilities (2)	$	1,135	$	—	$	1,135	$	—
	Funds withheld payable under reinsurance treaties (3)	424		—		—		424
	Freestanding derivative instruments	2,065		—		2,065		—
	Notes issued by consolidated VIEs	1,732		—		1,732		—
	Market risk benefit liabilities	5,662		—		—		5,662
	Total	$	11,018	$	—	$	4,932	$	6,086

(1) Excludes $2,772 million of limited partnership investments measured at NAV.
(2) Includes net embedded derivative liabilities of $205 million related to RILA and $931 million of fixed index annuities, both included in other contract holder funds on the Consolidated Balance Sheets.
(3) Includes the Athene Embedded Derivative asset of $3,158 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.


		December 31, 2021
		Total		Level 1		Level 2		Level 3
Assets
	Debt securities
	U.S. government securities	$	4,321	$	4,321	$	—	$	—
	Other government securities	1,619		—		1,619		—
	Public utilities	6,715		—		6,715		—
	Corporate securities	31,146		—		31,137		9
	Residential mortgage-backed	569		—		569		—
	Commercial mortgage-backed	2,038		—		2,038		—
	Other asset-backed securities	6,967		—		6,967		—
	Equity securities	279		111		56		112
	Limited partnerships (1)	413		—		17		396
	Policy loans	3,467		—		—		3,467
	Freestanding derivative instruments	1,417		—		1,417		—
	Cash and cash equivalents	2,623		2,623		—		—
	Reinsurance recoverable on market risk benefits	383		—		—		383
	Market risk benefit assets	1,664		—		—		1,664
	Separate account assets	248,949		—		248,949		—
	Total	$	312,570	$	7,055	$	299,484	$	6,031

Liabilities
	Embedded derivative liabilities (2)	$	1,445	$	—	$	1,445	$	—
	Funds withheld payable under reinsurance treaties (3)	3,759		—		—		3,759
	Freestanding derivative instruments	41		—		41		—
	Notes issued by consolidated VIEs	1,404		—		1,404		—
	Market risk benefit liabilities	8,033		—		—		8,033
	Total	$	14,682	$	—	$	2,890	$	11,792

(1) Excludes $2,418 million of limited partnership investments measured at NAV. The fair value amounts shown in the table and the amount disclosed as measured at NAV have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.
(2) Includes net embedded derivative liabilities of $6 million related to RILA and $1,439 million of fixed index annuities, both included in other contract holder funds on the Consolidated Balance Sheets.
(3) Includes the Athene Embedded Derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Schedule of Balances of Level 3 Assets and Liabilities Measured at Fair Value with Corresponding Pricing Sources

The table below presents the balances of Level 3 assets and liabilities measured at fair value with their corresponding pricing sources (in millions, recast for the adoption of LDTI):


	December 31, 2022
Assets	Total		Internal		External
Debt securities:
Corporate	$	56	$	—	$	56

Equity securities	122		1		121
Mortgage loans	582		—		582
Limited partnerships	440		8		432
Policy loans	3,419		3,419		—
Reinsurance recoverable on market risk benefits	221		221		—
Market risk benefit assets	4,865		4,865		—
Total	$	9,705	$	8,514	$	1,191

Liabilities

Funds withheld payable under reinsurance treaties (1)	424		424		—
Market risk benefit liabilities	5,662		5,662		—
Total	$	6,086	$	6,086	$	—


(1) Includes the Athene Embedded Derivative asset of $3,158 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

	December 31, 2021
Assets	Total		Internal		External
Debt securities:
Corporate	$	9	$	—	$	9

Equity securities	112		1		111
Limited partnerships (1)	396		1		395
Policy loans	3,467		3,467		—
Reinsurance recoverable on market risk benefits	383		383		—
Market risk benefit assets	1,664		1,664		—
Total	$	6,031	$	5,516	$	515

Liabilities

Funds withheld payable under reinsurance treaties (2)	3,759		3,759		—
Market risk benefit liabilities	8,033		8,033		—
Total	$	11,792	$	11,792	$	—


(1) The fair value amounts shown in the table have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.
(2) Includes the Athene Embedded Derivative liability of $120 million and funds withheld payable under reinsurance treaties at fair value under the fair value option.

Schedule of Quantitative Information on Significant Internally-Priced Level 3 Assets and Liabilities

The table below presents quantitative information on internally priced Level 3 assets and liabilities that use significant unobservable inputs (in millions, recast for the adoption of LDTI):

As of December 31, 2022

Fair
Value

Valuation Technique(s)

Significant Unobservable Input(s)

Assumption or Input Range

Impact of Increase in Input on Fair Value

Assets

Reinsurance recoverable on market risk benefits

221

Discounted cash flow

Mortality(1)

0.01% - 23.33%

Decrease

Lapse(2)

2.97% - 8.10%

Decrease

Utilization(3)

0.00% - 20.00%

Increase

Withdrawal(4)

47.50% - 52.50%

Increase

Non-performance risk adjustment(5)

0.64% - 2.27%

Decrease

Long-term Equity Volatility(6)

18.50% - 23.68%

Increase

Market risk benefit assets

4,865

Discounted cash flow

Mortality(1)

0.01% - 23.33%

Decrease

Lapse(2)

0.05% - 41.28%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

11.25% - 100.00%

Increase

Non-performance risk adjustment(5)

0.64% - 2.27%

Decrease

Long-term Equity Volatility(6)

18.50% - 23.68%

Increase

Liabilities

Market risk benefit liabilities

5,662

Discounted cash flow

Mortality(1)

0.01% - 23.33%

Decrease

Lapse(2)

0.05% - 41.28%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

11.25% - 100.00%

Increase

Non-performance risk adjustment(5)

0.64% - 2.27%

Decrease

Long-term Equity Volatility(6)

18.50% - 23.68%

Increase

(1) Mortality rates vary by attained age, tax qualification status, guaranteed benefit election, and duration. The range displayed reflects ages from the minimum issue age for the benefit through age 95, which corresponds to the typical maturity age. A mortality improvement assumption is also applied.

(2) Base lapse rates vary by contract-level factors, such as product type, surrender charge schedule and optional benefits election. Lapse rates are further adjusted based on the degree to which a guaranteed benefit is in-the-money, with lower lapse applying when benefits are more in-the-money. Lapse rates are also adjusted to reflect lower lapse expectations when guaranteed benefits are utilized.

(3) The utilization rate represents the expected percentage of contracts that will utilize the benefit through annuitization (GMIB) or commencement of withdrawals (GMWB). Utilization may vary by benefit type, attained age, duration, tax qualification status, benefit provision, and degree to which the guaranteed benefit is in-the-money.

(4) The withdrawal rate represents the percentage of annual withdrawal assumed relative to the maximum allowable withdrawal amount under the free partial withdrawal provision or the GMWB, as applicable. Free partial withdrawal rates vary based on the product type and duration. Withdrawal rates on contracts with a GMWB vary based on attained age, tax qualification status, GMWB type and GMWB benefit provisions.

(5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year.

(6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

As of December 31, 2021

Fair
Value

Valuation Technique(s)

Significant Unobservable Input(s)

Assumption or Input Range

Impact of Increase in Input on Fair Value

Assets

Reinsurance recoverable on market risk benefits

383

Discounted cash flow

Mortality(1)

0.01% - 23.42%

Decrease

Lapse(2)

3.33% - 9.04%

Decrease

Utilization(3)

0.00% - 20.00%

Increase

Withdrawal(4)

37.50% - 45.00%

Increase

Non-performance risk adjustment(5)

0.11% - 1.50%

Decrease

Long-term Equity Volatility(6)

18.50% - 22.06%

Increase

Market risk benefit assets

1,664

Discounted cash flow

Mortality(1)

0.01% - 23.42%

Decrease

Lapse(2)

0.07% - 30.88%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

11.25% - 100.00%

Increase

Non-performance risk adjustment(5)

0.11% - 1.50%

Decrease

Long-term Equity Volatility(6)

18.50% - 22.06%

Increase

Liabilities

Market risk benefit liabilities

8,033

Discounted cash flow

Mortality(1)

0.01% - 23.42%

Decrease

Lapse(2)

0.07% - 30.88%

Decrease

Utilization(3)

0.00% - 100.00%

Increase

Withdrawal(4)

11.25% - 100.00%

Increase

Non-performance risk adjustment(5)

0.11% - 1.50%

Decrease

Long-term Equity Volatility (6)

18.50% - 22.06%

Increase

(5) Non-performance risk adjustment is applied as a spread over the risk-free rate to determine the rate used to discount the related cash flows and varies by projection year.

(6) Long-term equity volatility represents the equity volatility beyond the period for which observable equity volatilities are available.

Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Assets

The tables below, recast for the adoption of LDTI, provide roll-forwards for the years ended December 31, 2022 and 2021 of the financial instruments for which significant unobservable inputs (Level 3) are used in the fair value measurement. Gains and losses in the tables below include changes in fair value due partly to observable and unobservable factors. The Company utilizes derivative instruments to manage the risk associated with certain assets and liabilities. However, the derivative instruments hedging the related risks may not be classified within the same fair value hierarchy level as the associated assets and liabilities. Therefore, the impact of the derivative instruments reported in Level 3 may vary significantly from the total income effect of the hedged instruments.


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		December 31,
December 31, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(13)	$	12	$	48	$	56

	Equity securities	112		7		—		3		—		122
	Mortgage loans	—		(7)		—		589		—		582
	Limited partnerships	396		8		—		27		9		440
	Reinsurance recoverable on market risk benefits	383		(162)		—		—		—		221
	Market risk benefit assets	1,664		3,201		—		—		—		4,865
	Policy loans	3,467		29		—		(77)		—		3,419

Liabilities

	Funds withheld payable under reinsurance treaties	(3,759)		3,249		—		86		—		(424)
	Market risk benefit liabilities	(8,033)		497		1,874		—		—		(5,662)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		December 31,
December 31, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	10	$	(32)	$	9

	Equity securities	104		14		—		(6)		—		112
	Limited partnerships (1)	313		74		—		9		—		396
	Reinsurance recoverable on market risk benefits	472		(89)		—		—		—		383
	Market risk benefit assets	690		974		—		—		—		1,664
	Policy loans	3,454		(2)		—		15		—		3,467

Liabilities

	Funds withheld payable under reinsurance treaties	(4,453)		708		—		(14)		—		(3,759)
	Market risk benefit liabilities	(10,690)		3,081		(424)		—		—		(8,033)

(1) The fair value amounts shown in the table have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.

Schedule of Rollforwards of Financial Instruments for Which Significant Unobservable Inputs (Level 3) are Used - Liabilities


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		December 31,
December 31, 2022		2022		Income		Income		Settlements		Level 3		2022
Assets
	Debt securities
	Corporate securities	$	9	$	—	$	(13)	$	12	$	48	$	56

	Equity securities	112		7		—		3		—		122
	Mortgage loans	—		(7)		—		589		—		582
	Limited partnerships	396		8		—		27		9		440
	Reinsurance recoverable on market risk benefits	383		(162)		—		—		—		221
	Market risk benefit assets	1,664		3,201		—		—		—		4,865
	Policy loans	3,467		29		—		(77)		—		3,419

Liabilities

	Funds withheld payable under reinsurance treaties	(3,759)		3,249		—		86		—		(424)
	Market risk benefit liabilities	(8,033)		497		1,874		—		—		(5,662)


				Total Realized/Unrealized Gains (Losses) Included in
								Purchases,
		Fair Value						Sales,		Transfers		Fair Value
		as of				Other		Issuances		in and/or		as of
		January 1,		Net		Comprehensive		and		(out of)		December 31,
December 31, 2021		2021		Income		Income		Settlements		Level 3		2021
Assets
	Debt securities
	Corporate securities	$	29	$	2	$	—	$	10	$	(32)	$	9

	Equity securities	104		14		—		(6)		—		112
	Limited partnerships (1)	313		74		—		9		—		396
	Reinsurance recoverable on market risk benefits	472		(89)		—		—		—		383
	Market risk benefit assets	690		974		—		—		—		1,664
	Policy loans	3,454		(2)		—		15		—		3,467

Liabilities

	Funds withheld payable under reinsurance treaties	(4,453)		708		—		(14)		—		(3,759)
	Market risk benefit liabilities	(10,690)		3,081		(424)		—		—		(8,033)

(1) The fair value amounts shown in the table have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.

Schedule of Components of Amounts Included in Purchases, Sales, Issuances and Settlements

The components of the amounts included in purchases, sales, issuances and settlements for the years ended December 31, 2022 and 2021 shown above are as follows (in millions):


December 31, 2022		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	15	$	(3)	$	—	$	—	$	12
	Equity securities	7		(4)		—		—		3
	Mortgage loans	632		(43)		—		—		589
	Limited partnerships	45		(18)		—		—		27
	Policy loans	—		—		215		(292)		(77)
	Total	$	699	$	(68)	$	215	$	(292)	$	554

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(222)	$	308	$	86

December 31, 2021		Purchases		Sales		Issuances		Settlements		Total
Assets
	Debt securities
	Corporate securities	$	11	$	(1)	$	—	$	—	$	10
	Equity securities	2		(8)		—		—		(6)
	Limited partnerships(1)	55		(46)		—		—		9
	Policy loans	—		—		261		(246)		15
	Total	$	68	$	(55)	$	261	$	(246)	$	28

Liabilities
	Funds withheld payable under reinsurance treaties	$	—	$	—	$	(468)	$	454	$	(14)

(1) The fair value amounts shown in the table have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.

Schedule of Portion of Gains (Losses) Included in Net Income or Other Comprehensive Income

The portion of gains (losses) included in net income (loss) or other comprehensive income (loss) ("OCI") attributable to the change in unrealized gains and losses on Level 3 financial instruments still held was as follows (in millions, recast for the adoption of LDTI):


	Year Ended December 31,
	2022				2021
	Included in Net Income		Included in OCI		Included in Net Income		Included in OCI
Assets
Debt securities
Corporate securities	$	—	$	(13)	$	2	$	—

Equity securities	21		—		14		—
Mortgage loans	(7)		—		—		—
Limited partnerships (1)	8		—		74		—
Reinsurance recoverable on market risk benefits	(162)		—		(89)		—
Market risk benefit assets	3,201		—		974		—
Policy loans	29		—		(2)		—

Liabilities

Funds withheld payable under reinsurance treaties	3,249		—		708		—
Market risk benefit liabilities	497		1,874		3,081		(424)

(1) The fair value amounts shown in the table for 2021 have been revised for an immaterial error related to the historical disclosure of certain limited partnerships which are measured using a Level 3 fair value measurement as being measured using NAV as a practical expedient within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the consolidated balance sheets.

Schedule of Carrying Amount and Fair Value by Hierarchy of Certain Financial Instruments Not Reported at Fair Value

The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value (in millions):


	December 31, 2022
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	10,967	$	10,259	$	—	$	—	$	10,259
Policy loans	958		958		—		—		958
FHLBI capital stock	146		146		146		—		—

Liabilities
Annuity reserves (1)	$	36,222	$	31,242	$	—	$	—	$	31,242
Reserves for guaranteed investment contracts (2)	1,128		1,099		—		—		1,099
Trust instruments supported by funding agreements (2)	5,887		5,760		—		—		5,760
FHLB funding agreements (2)	2,004		2,104		—		—		2,104
Funds withheld payable under reinsurance treaties	22,533		22,533		—		—		22,533
Debt	2,635		2,344		—		2,344		—
Securities lending payable	36		36		—		36		—

Repurchase agreements	1,012		1,012		—		1,012		—
Separate account liabilities (4)	195,906		195,906		—		195,906		—

	December 31, 2021
			Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	11,482	$	11,910	$	—	$	—	$	11,910
Policy loans	1,008		1,008		—		—		1,008
FHLBI capital stock	125		125		125		—		—

Liabilities
Annuity reserves (1)	$	36,318	$	44,640	$	—	$	—	$	44,640
Reserves for guaranteed investment contracts (2)	894		923		—		—		923
Trust instruments supported by funding agreements (2)	5,986		6,175		—		—		6,175
FHLB funding agreements (2)	1,950		1,938		—		—		1,938
Funds withheld payable under reinsurance treaties (3)	24,533		24,533		537		19,127		4,869
Debt	2,649		2,745		—		2,745		—
Securities lending payable	17		17		—		17		—

Repurchase agreements	1,572		1,572		—		1,572		—
Separate account liabilities (4)	248,949		248,949		—		248,949		—

(1) Annuity reserves represent only the components of other contract holder funds that are considered to be financial instruments. The fair value amounts shown in the table for 2021 have been revised for an immaterial error related to the historical disclosure for annuity reserves not reported at fair value within the Fair Value Measurement note to the Consolidated Financial Statements. The prior period error did not impact the Consolidated Balance Sheets.
(2) Included as a component of other contract holder funds on the Consolidated Balance Sheets.
(3) Excludes $715 million of limited partnership investments measured at NAV at December 31, 2021.
(4) The values of separate account liabilities are set equal to the values of separate account assets.