XML 60 R37.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following summarize the Company’s financial assets and liabilities recorded at fair value hierarchy level:


	December 31, 2022
(In millions)	Level 1		Level 2		Level 3			NAV		Total
Assets
Asset Management
Cash and cash equivalents1	$	1,201	$	—	$	—		$	—	$	1,201
Restricted cash and cash equivalents2	1,048		—		—			—		1,048
Cash and cash equivalents of VIEs	110		—		—			—		110
U.S. Treasury securities3	709		—		—			—		709
Investments, at fair value	190		39		1,083		4	8		1,320
Investments of VIEs	—		1,537		727			105		2,369
Due from related parties5	—		—		43			—		43
Derivative assets6	—		—		15			—		15
Total Assets – Asset Management	3,258		1,576		1,868			113		6,815
Retirement Services
AFS Securities
U.S. government and agencies	2,570		7		—			—		2,577
U.S. state, municipal and political subdivisions	—		927		—			—		927
Foreign governments	—		906		1			—		907
Corporate	—		59,236		1,665			—		60,901
CLO	—		16,493		—			—		16,493
ABS	—		5,660		4,867			—		10,527
CMBS	—		4,158		—			—		4,158
RMBS	—		5,682		232			—		5,914
Total AFS securities	2,570		93,069		6,765			—		102,404
Trading securities	23		1,519		53			—		1,595
Equity securities	150		845		92			—		1,087
Mortgage loans	—		—		27,454			—		27,454

Funds withheld at interest – embedded derivative	—		—		(4,847)			—		(4,847)
Derivative assets	42		3,267		—			—		3,309
Short-term investments	29		455		36			—		520
Other investments	—		170		441			—		611
Cash and cash equivalents	7,779		—		—			—		7,779
Restricted cash and cash equivalents	628		—		—			—		628
Investments in related parties
AFS securities
Corporate	—		170		812			—		982
CLO	—		2,776		303			—		3,079
ABS	—		218		5,542			—		5,760
Total AFS securities – related parties	—		3,164		6,657			—		9,821
Trading securities	—		—		878			—		878
Equity securities	—		—		279			—		279
Mortgage loans	—		—		1,302			—		1,302
Investment funds	—		—		959			—		959
Funds withheld at interest – embedded derivative	—		—		(1,425)			—		(1,425)

Other investments	—		—		303			—		303
Reinsurance recoverable	—		—		1,388			—		1,388


	December 31, 2022
(In millions)	Level 1		Level 2		Level 3		NAV		Total
Assets of consolidated VIEs
Trading securities	5		436		622		—		1,063

Mortgage loans	—		—		2,055		—		2,055
Investment funds	—		—		2,471		10,009		12,480
Other investments	—		2		99		—		101
Cash and cash equivalents	362		—		—		—		362
Total Assets – Retirement Services	11,588		102,927		45,582		10,009		170,106
Total Assets	$	14,846	$	104,503	$	47,450	$	10,122	$	176,921


Liabilities
Asset Management


Contingent consideration obligations7	$	—	$	—	$	86	$	—	$	86
Other liabilities8	2		—		—		—		2
Derivative liabilities6	—		57		—		—		57
Total Liabilities – Asset Management	2		57		86		—		145
Retirement Services
Interest sensitive contract liabilities
Embedded derivative	—		—		5,841		—		5,841
Universal life benefits	—		—		829		—		829
Future policy benefits
AmerUs closed block	—		—		1,164		—		1,164
ILICO closed block and life benefits	—		—		548		—		548
Derivative liabilities	38		1,607		1		—		1,646
Other liabilities	—		(77)		142		—		65
Total Liabilities – Retirement Services	38		1,530		8,525		—		10,093
Total Liabilities	$	40	$	1,587	$	8,611	$	—	$	10,238

(Concluded)


	December 31, 2021
(In millions)	Level 1		Level 2		Level 3			NAV		Total
Assets – Asset Management
Cash and cash equivalents1	$	917	$	—	$	—		$	—	$	917
Restricted cash and cash equivalents2	708		—		—			—		708
Cash and cash equivalents of VIEs	463		—		—			—		463
U.S. Treasury securities3	1,687		—		—			—		1,687
Investment in Athene Holding	4,548		—		—			—		4,548
Other investments	49		46		946		4	—		1,041
Investments of VIEs	6		1,055		13,188			488		14,737
Due from related parties5	—		—		48			—		48
Derivative assets6	—		8		—			—		8
Total Assets	$	8,378	$	1,109	$	14,182		$	488	$	24,157

Liabilities – Asset Management
Debt of VIEs, at fair value	$	—	$	446	$	7,497		$	—	$	7,943
Other liabilities of VIEs, at fair value	—		3		31			1		35

Contingent consideration obligations7	—		—		126			—		126
Other liabilities8	48		—		—			—		48
Derivative liabilities6	—		2		—			—		2
Total Liabilities	$	48	$	451	$	7,654		$	1	$	8,154

1 Cash and cash equivalents as of December 31, 2021 includes $2 million of cash and cash equivalents held by consolidated SPACs. Refer to note 17 for further information.
2 Restricted cash and cash equivalents as of December 31, 2022 and December 31, 2021 includes $1.0 billion and $690 million, respectively, of restricted cash and cash equivalents held by consolidated SPACs. Refer to note 17 for further information.
3 U.S. Treasury securities as of December 31, 2021 includes $1.2 billion of U.S. Treasury securities held by consolidated SPACs. Refer to note 17 for further information.
4 Investments as of December 31, 2022 and December 31, 2021 excludes $198 million and $176 million, respectively, of performance allocations classified as Level 3 related to certain investments for which the Company elected the fair value option. The Company’s policy is to account for performance allocations as investments.
5 Due from related parties represents a receivable from a fund.
6 Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the consolidated statements of financial condition.
7 As of December 31, 2022, other liabilities includes $31 million of contingent obligations, related to the Griffin Capital acquisition, classified as Level 3. As of December 31, 2022 and December 31, 2021, profit sharing payable includes $55 million and $126 million, respectively, related to contingent obligations classified as Level 3.
8 Other liabilities as of December 31, 2022 includes the publicly traded warrants of APSG II. Other liabilities as of December 31, 2021 includes the publicly traded warrants of APSG I and APSG II.

Summary of Valuation Techniques and Quantitative Inputs and Assumptions used for Financial Assets and Liabilities

The following tables summarize the valuation techniques and quantitative inputs and assumptions used for financial assets and liabilities categorized as Level 3:

December 31, 2022

Fair Value

(In millions)

Valuation Technique

Unobservable Inputs

Ranges

Weighted Average

Financial Assets

Asset Management

Investments

526

Embedded value

N/A

128

Discounted cash flow

Discount rate

8.9% – 52.8%

28.7%

429

Adjusted transaction value

N/A

Due from related parties

Discounted cash flow

Discount rate

15.0%

Derivative assets

Option model

Volatility rate

60.0%

Investments of consolidated VIEs

Equity securities

458

Dividend discount model

Discount rate

12.1%

Bank loans

244

Discounted cash flow

Discount rate

6.4% – 32.7%

8.0%

Adjusted transaction value

N/A

Bonds

Discounted cash flow

Discount rate

7.9%

Retirement Services

AFS, trading and equity securities

10,671

Discounted cash flow

Discount rate

2.2% – 18.8%

6.8%

Mortgage loans2

30,811

Discounted cash flow

Discount rate

1.5% – 22.1%

6.3%

Investment funds2

506

Discounted cash flow

Discount rate

6.4%

873

Discounted cash flow /
Guideline public equity

Discount rate /
P/E

16.5% / 9x

529

Net tangible asset values

Implied multiple

1.26x

563

Reported net asset value

N/A

959

Embedded value

N/A

Financial Liabilities

Asset Management

Contingent consideration obligation

Discounted cash flow

Discount rate

20.0% – 25.0%

22.7%

Option model

Volatility rate

29.8% – 39.6%

34.7%

Retirement Services

Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives

5,841

Discounted cash flow

Nonperformance risk

0.1% – 1.7%

1.0%

Option budget

0.5% – 5.3%

1.9%

Surrender rate

5.1% – 11.5%

8.1%

1 Unobservable inputs were weighted based on the fair value of the investments included in the range.

2 Includes those of consolidated VIEs.

3 The nonperformance risk weighted average is based on the projected excess benefits of reserves used in the calculation of the embedded derivative.

4 The option budget weighted average is calculated based on the indexed account values.

5 The surrender rate weighted average is calculated based on projected account values.

December 31, 2021

Fair Value

(In millions)

Valuation Techniques

Unobservable Inputs

Ranges

Weighted Average1

Financial Assets

Other investments

516

Embedded value

N/A

170

Discounted cash flow

Discount rate

14.0% - 52.8%

26.4%

260

Adjusted transaction value

N/A

Due from related parties

Discounted cash flow

Discount rate

16.0%

Investments of consolidated VIEs:

Equity securities

4,145

Discounted cash flow

Discount rate

3.0% - 19.0%

10.4%

Dividend discount model

Discount rate

13.7%

Market comparable companies

NTAV multiple

1.25x

Adjusted transaction value

Purchase multiple

1.25x

Adjusted transaction value

N/A

Bank loans

4,570

Discounted cash flow

Discount rate

1.8% - 15.6%

4.3%

Adjusted transaction value

N/A

Profit participating notes

2,849

Discounted cash flow

Discount rate

8.7% - 12.5%

12.4%

Adjusted transaction value

N/A

Real estate

512

Discounted cash flow

Capitalization rate

4.0% - 5.8%

5.3%

Discounted cash flow

Discount rate

5.0% - 12.5%

7.3%

Discounted cash flow

Terminal capitalization rate

8.3%

Direct capitalization

Capitalization rate

5.5% - 8.5%

6.2%

Direct capitalization

Terminal capitalization rate

6.0% - 12.0%

6.9%

Bonds

Discounted cash flow

Discount rate

4.0% - 7.0%

6.1%

Third party pricing

N/A

Other equity investments

1,061

Discounted cash flow

Discount rate

11.8% -12.5%

12.1%

Adjusted transaction value

N/A

Financial Liabilities

Liabilities of Consolidated VIEs:

Secured loans

4,312

Discounted cash flow

Discount rate

1.4% - 10.0%

2.8%

Subordinated notes

3,164

Discounted cash flow

Discount rate

4.5% - 11.9%

5.8%

Participating equity

Discounted cash flow

Discount rate

15.0%

Other liabilities

Discounted cash flow

Discount rate

3.7% - 9.3%

6.3%

Contingent consideration obligation

126

Discounted cash flow

Discount rate

18.5%

1 Unobservable inputs were weighted based on the fair value of the investments included in the range.

Schedule of Gross Components of Purchases, Issuances, Sales and Settlements, Net and Net Transfers In (Out)

The following are reconciliations for Level 3 assets and liabilities measured at fair value on a recurring basis:


	Year ended December 31, 2022
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
Assets – Asset Management
Investments and derivative assets	$	946	$	20	$	—	$	109	$	23	$	1,098	$	56	$	—
Investments of Consolidated VIEs	13,188		252		—		(13)		(12,700)		727		17		—
Total Level 3 assets – Asset Management	$	14,134	$	272	$	—	$	96	$	(12,677)	$	1,825	$	73	$	—
Assets – Retirement Services
AFS securities

Foreign governments	$	2	$	(1)	$	—	$	—	$	—	$	1	$	—	$	—
Corporate	1,339		(16)		(123)		364		101		1,665		—		(119)
CLO	14		(2)		—		(9)		(3)		—		—		—
ABS	3,619		1		(183)		788		642		4,867		—		(216)
CMBS	43		—		(17)		—		(26)		—		—		—


	Year ended December 31, 2022
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
RMBS	—		—		3		295		(66)		232		—		4
Trading securities	69		(9)		—		(10)		3		53		(5)		—
Equity securities	429		26		—		(4)		(359)		92		22		—
Mortgage loans	21,154		(2,761)		—		9,061		—		27,454		(2,747)		—
Investment funds	18		1		—		—		(19)		—		—		—
Funds withheld at interest – embedded derivative	—		(4,847)		—		—		—		(4,847)		—		—
Short-term investments	29		—		—		7		—		36		—		—
Other investments	—		(91)		—		36		496		441		(91)		—
Investments in related parties
AFS securities
Corporate	670		(3)		(16)		202		(41)		812		—		(16)
CLO	202		—		(29)		130		—		303		—		(29)
ABS	6,445		16		(256)		(715)		52		5,542		(11)		(259)
Trading securities	1,771		3		—		(1,084)		188		878		1		—
Equity securities	284		(2)		—		(15)		12		279		—		—
Mortgage loans	1,369		(225)		—		158		—		1,302		(225)		—
Investment funds	2,855		78		—		57		(2,031)		959		119		—
Short-term investments	—		—		—		53		(53)		—		—		—
Funds withheld at interest – embedded derivative	—		(1,425)		—		—		—		(1,425)		—		—
Other investments	—		14		—		15		274		303		14		—
Reinsurance recoverable	1,991		(603)		—		—		—		1,388		—		—
Assets of consolidated VIEs
Trading securities	—		49		—		530		43		622		11		—

Mortgage loans	2,152		(227)		—		(31)		161		2,055		(226)		—
Investment funds	1,297		72		—		1,862		(760)		2,471		58		—
Other investments	—		(17)		—		31		85		99		(24)		—
Total Level 3 assets – Retirement Services	$	45,752	$	(9,969)	$	(621)	$	11,721	$	(1,301)	$	45,582	$	(3,104)	$	(635)

Liabilities – Asset Management
Contingent consideration obligations	$	126	$	(63)	$	—	$	23	$	—	$	86	$	—	$	—
Debt and other liabilities of consolidated VIEs	7,528		(28)		—		(442)		(7,058)		—		—		—
Total Level 3 liabilities – Asset Management	$	7,654	$	(91)	$	—	$	(419)	$	(7,058)	$	86	$	—	$	—
Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(7,559)	$	2,934	$	—	$	(1,216)	$	—	$	(5,841)	$	—	$	—
Universal life benefits	(1,235)		406		—		—		—		(829)		—		—
Future policy benefits											—
AmerUs Closed Block	(1,520)		356		—		—		—		(1,164)		—		—
ILICO Closed Block and life benefits	(742)		194		—		—		—		(548)		—		—
Derivative liabilities	(3)		2		—		—		—		(1)		—		—
Other liabilities	—		(37)		—		(105)		—		(142)		—		—
Total Level 3 liabilities – Retirement Services	$	(11,059)	$	3,855	$	—	$	(1,321)	$	—	$	(8,525)	$	—	$	—

1 Related to instruments held at end of period.


	Year ended December 31, 2021
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
Assets – Asset Management
Investments of Consolidated VIEs	$	10,963	$	448	$	—	$	2,235	$	(458)	$	13,188	$	308	$	—
Other Investments	370		88		—		489		(1)		946		82		—
Total Level 3 assets – Asset Management	$	11,333	$	536	$	—	$	2,724	$	(459)	$	14,134	$	390	$	—






























Liabilities – Asset Management
Contingent consideration obligations	$	120	$	27	$	—	$	(21)	$	—	$	126	$	—	$	—
Debt and other liabilities of consolidated VIEs	7,100		42		—		386		—		7,528		45		—
Total Level 3 liabilities – Asset Management	$	7,220	$	69	$	—	$	365	$	—	$	7,654	$	45	$	—










1 Related to instruments held at end of period.

The following represents the gross components of purchases, issuances, sales and settlements, net, and net transfers in (out) shown above:


	Year ended December 31, 2022
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In1		Transfers Out1		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	230	$	—	$	(121)	$	—	$	109	$	23	$	—	$	23
Investments of consolidated VIEs	3,349		—		(3,362)		—		(13)		2,072		(14,772)		(12,700)
Total Level 3 assets – Asset Management	$	3,579	$	—	$	(3,483)	$	—	$	96	$	2,095	$	(14,772)	$	(12,677)

Assets – Retirement Services
AFS securities


Corporate	$	685	$	—	$	(177)	$	(144)	$	364	$	393	$	(292)	$	101
CLO	3		—		—		(12)		(9)		—		(3)		(3)
ABS	3,306		—		(1,791)		(727)		788		1,089		(447)		642
CMBS	—		—		—		—		—		—		(26)		(26)
RMBS	296		—		—		(1)		295		—		(66)		(66)
Trading securities	8		—		(9)		(9)		(10)		56		(53)		3
Equity securities	—		—		(4)		—		(4)		41		(400)		(359)
Mortgage loans	12,367		—		(198)		(3,108)		9,061		—		—		—
Investment funds	—		—		—		—		—		—		(19)		(19)
Short-term investments	59		—		—		(52)		7		—		—		—

Other investments	48		—		(12)		—		36		496		—		496
Investments in related parties
AFS securities
Corporate	483		—		(263)		(18)		202		53		(94)		(41)
CLO	130		—		—		—		130		—		—		—
ABS	2,889		—		(94)		(3,510)		(715)		1,916		(1,864)		52
Trading securities	43		—		(1,081)		(46)		(1,084)		1,448		(1,260)		188
Equity securities	195		—		(119)		(91)		(15)		125		(113)		12
Mortgage loans	182		—		—		(24)		158		—		—		—
Investment funds	91		—		(34)		—		57		—		(2,031)		(2,031)
Short-term investments	53		—		—		—		53		—		(53)		(53)

Other investments	31		—		(16)		—		15		274		—		274


	Year ended December 31, 2022
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In1		Transfers Out1		Net Transfers In (Out)
Assets of consolidated VIEs
Trading securities	531		—		(1)		—		530		430		(387)		43
Equity securities	—		—		—		—		—		15		(15)		—
Mortgage loans	176		—		—		(207)		(31)		384		(223)		161
Investment funds	2,014		—		(152)		—		1,862		11,550		(12,310)		(760)
Other investments	33		—		(2)		—		31		2,018		(1,933)		85
Total Level 3 assets – Retirement Services	$	23,623	$	—	$	(3,953)	$	(7,949)	$	11,721	$	20,288	$	(21,589)	$	(1,301)

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	36	$	—	$	(13)	$	23	$	—	$	—	$	—
Debt and other liabilities of consolidated VIEs	—		—		—		(442)		(442)		1,568		(8,626)		(7,058)
Total Level 3 liabilities – Asset Management	$	—	$	36	$	—	$	(455)	$	(419)	$	1,568	$	(8,626)	$	(7,058)

Liabilities – Retirement Services
Interest sensitive contract liabilities
Interest sensitive contract liabilities - Embedded derivative	$	—	$	(1,722)	$	—	$	506	$	(1,216)	$	—	$	—	$	—





Other liabilities	—		—		—		(105)		(105)		—		—		—
Total Level 3 liabilities – Retirement Services	$	—	$	(1,722)	$	—	$	401	$	(1,321)	$	—	$	—	$	—

1 Transfers in and out are primarily assets of VIEs with changes in consolidation at Athene in 2022.


	Year ended December 31, 2021
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments	$	492	$	—	$	(3)	$	—	$	489	$	1	$	(2)	$	(1)
Investments of consolidated VIEs	3,680		—		(1,445)		—		2,235		45		(503)		(458)
Total Level 3 assets – Asset Management	$	4,172	$	—	$	(1,448)	$	—	$	2,724	$	46	$	(505)	$	(459)

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	—	$	—	$	(21)	$	(21)	$	—	$	—	$	—
Debt and other liabilities of consolidated VIEs	—		706		—		(320)		386		—		—		—
Total Level 3 liabilities – Asset Management	$	—	$	706	$	—	$	(341)	$	365	$	—	$	—	$	—

Schedule of Gross Components of Purchases, Issuances, Sales and Settlements, Net and Net Transfers In (Out)


	Year ended December 31, 2022
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
Assets – Asset Management
Investments and derivative assets	$	946	$	20	$	—	$	109	$	23	$	1,098	$	56	$	—
Investments of Consolidated VIEs	13,188		252		—		(13)		(12,700)		727		17		—
Total Level 3 assets – Asset Management	$	14,134	$	272	$	—	$	96	$	(12,677)	$	1,825	$	73	$	—
Assets – Retirement Services
AFS securities

Foreign governments	$	2	$	(1)	$	—	$	—	$	—	$	1	$	—	$	—
Corporate	1,339		(16)		(123)		364		101		1,665		—		(119)
CLO	14		(2)		—		(9)		(3)		—		—		—
ABS	3,619		1		(183)		788		642		4,867		—		(216)
CMBS	43		—		(17)		—		(26)		—		—		—


	Year ended December 31, 2022
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
RMBS	—		—		3		295		(66)		232		—		4
Trading securities	69		(9)		—		(10)		3		53		(5)		—
Equity securities	429		26		—		(4)		(359)		92		22		—
Mortgage loans	21,154		(2,761)		—		9,061		—		27,454		(2,747)		—
Investment funds	18		1		—		—		(19)		—		—		—
Funds withheld at interest – embedded derivative	—		(4,847)		—		—		—		(4,847)		—		—
Short-term investments	29		—		—		7		—		36		—		—
Other investments	—		(91)		—		36		496		441		(91)		—
Investments in related parties
AFS securities
Corporate	670		(3)		(16)		202		(41)		812		—		(16)
CLO	202		—		(29)		130		—		303		—		(29)
ABS	6,445		16		(256)		(715)		52		5,542		(11)		(259)
Trading securities	1,771		3		—		(1,084)		188		878		1		—
Equity securities	284		(2)		—		(15)		12		279		—		—
Mortgage loans	1,369		(225)		—		158		—		1,302		(225)		—
Investment funds	2,855		78		—		57		(2,031)		959		119		—
Short-term investments	—		—		—		53		(53)		—		—		—
Funds withheld at interest – embedded derivative	—		(1,425)		—		—		—		(1,425)		—		—
Other investments	—		14		—		15		274		303		14		—
Reinsurance recoverable	1,991		(603)		—		—		—		1,388		—		—
Assets of consolidated VIEs
Trading securities	—		49		—		530		43		622		11		—

Mortgage loans	2,152		(227)		—		(31)		161		2,055		(226)		—
Investment funds	1,297		72		—		1,862		(760)		2,471		58		—
Other investments	—		(17)		—		31		85		99		(24)		—
Total Level 3 assets – Retirement Services	$	45,752	$	(9,969)	$	(621)	$	11,721	$	(1,301)	$	45,582	$	(3,104)	$	(635)

Liabilities – Asset Management
Contingent consideration obligations	$	126	$	(63)	$	—	$	23	$	—	$	86	$	—	$	—
Debt and other liabilities of consolidated VIEs	7,528		(28)		—		(442)		(7,058)		—		—		—
Total Level 3 liabilities – Asset Management	$	7,654	$	(91)	$	—	$	(419)	$	(7,058)	$	86	$	—	$	—
Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(7,559)	$	2,934	$	—	$	(1,216)	$	—	$	(5,841)	$	—	$	—
Universal life benefits	(1,235)		406		—		—		—		(829)		—		—
Future policy benefits											—
AmerUs Closed Block	(1,520)		356		—		—		—		(1,164)		—		—
ILICO Closed Block and life benefits	(742)		194		—		—		—		(548)		—		—
Derivative liabilities	(3)		2		—		—		—		(1)		—		—
Other liabilities	—		(37)		—		(105)		—		(142)		—		—
Total Level 3 liabilities – Retirement Services	$	(11,059)	$	3,855	$	—	$	(1,321)	$	—	$	(8,525)	$	—	$	—

1 Related to instruments held at end of period.


	Year ended December 31, 2021
			Total realized and unrealized gains (losses)
(In millions)	Beginning balance		Included in income		Included in OCI		Net purchases, issuances, sales and settlements		Net transfers in (out)		Ending balance		Total gains (losses) included in earnings1		Total gains (losses) included in OCI1
Assets – Asset Management
Investments of Consolidated VIEs	$	10,963	$	448	$	—	$	2,235	$	(458)	$	13,188	$	308	$	—
Other Investments	370		88		—		489		(1)		946		82		—
Total Level 3 assets – Asset Management	$	11,333	$	536	$	—	$	2,724	$	(459)	$	14,134	$	390	$	—






























Liabilities – Asset Management
Contingent consideration obligations	$	120	$	27	$	—	$	(21)	$	—	$	126	$	—	$	—
Debt and other liabilities of consolidated VIEs	7,100		42		—		386		—		7,528		45		—
Total Level 3 liabilities – Asset Management	$	7,220	$	69	$	—	$	365	$	—	$	7,654	$	45	$	—










1 Related to instruments held at end of period.

The following represents the gross components of purchases, issuances, sales and settlements, net, and net transfers in (out) shown above:


	Year ended December 31, 2022
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In1		Transfers Out1		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	230	$	—	$	(121)	$	—	$	109	$	23	$	—	$	23
Investments of consolidated VIEs	3,349		—		(3,362)		—		(13)		2,072		(14,772)		(12,700)
Total Level 3 assets – Asset Management	$	3,579	$	—	$	(3,483)	$	—	$	96	$	2,095	$	(14,772)	$	(12,677)

Assets – Retirement Services
AFS securities


Corporate	$	685	$	—	$	(177)	$	(144)	$	364	$	393	$	(292)	$	101
CLO	3		—		—		(12)		(9)		—		(3)		(3)
ABS	3,306		—		(1,791)		(727)		788		1,089		(447)		642
CMBS	—		—		—		—		—		—		(26)		(26)
RMBS	296		—		—		(1)		295		—		(66)		(66)
Trading securities	8		—		(9)		(9)		(10)		56		(53)		3
Equity securities	—		—		(4)		—		(4)		41		(400)		(359)
Mortgage loans	12,367		—		(198)		(3,108)		9,061		—		—		—
Investment funds	—		—		—		—		—		—		(19)		(19)
Short-term investments	59		—		—		(52)		7		—		—		—

Other investments	48		—		(12)		—		36		496		—		496
Investments in related parties
AFS securities
Corporate	483		—		(263)		(18)		202		53		(94)		(41)
CLO	130		—		—		—		130		—		—		—
ABS	2,889		—		(94)		(3,510)		(715)		1,916		(1,864)		52
Trading securities	43		—		(1,081)		(46)		(1,084)		1,448		(1,260)		188
Equity securities	195		—		(119)		(91)		(15)		125		(113)		12
Mortgage loans	182		—		—		(24)		158		—		—		—
Investment funds	91		—		(34)		—		57		—		(2,031)		(2,031)
Short-term investments	53		—		—		—		53		—		(53)		(53)

Other investments	31		—		(16)		—		15		274		—		274


	Year ended December 31, 2022
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In1		Transfers Out1		Net Transfers In (Out)
Assets of consolidated VIEs
Trading securities	531		—		(1)		—		530		430		(387)		43
Equity securities	—		—		—		—		—		15		(15)		—
Mortgage loans	176		—		—		(207)		(31)		384		(223)		161
Investment funds	2,014		—		(152)		—		1,862		11,550		(12,310)		(760)
Other investments	33		—		(2)		—		31		2,018		(1,933)		85
Total Level 3 assets – Retirement Services	$	23,623	$	—	$	(3,953)	$	(7,949)	$	11,721	$	20,288	$	(21,589)	$	(1,301)

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	36	$	—	$	(13)	$	23	$	—	$	—	$	—
Debt and other liabilities of consolidated VIEs	—		—		—		(442)		(442)		1,568		(8,626)		(7,058)
Total Level 3 liabilities – Asset Management	$	—	$	36	$	—	$	(455)	$	(419)	$	1,568	$	(8,626)	$	(7,058)

Liabilities – Retirement Services
Interest sensitive contract liabilities
Interest sensitive contract liabilities - Embedded derivative	$	—	$	(1,722)	$	—	$	506	$	(1,216)	$	—	$	—	$	—





Other liabilities	—		—		—		(105)		(105)		—		—		—
Total Level 3 liabilities – Retirement Services	$	—	$	(1,722)	$	—	$	401	$	(1,321)	$	—	$	—	$	—

1 Transfers in and out are primarily assets of VIEs with changes in consolidation at Athene in 2022.


	Year ended December 31, 2021
(In millions)	Purchases		Issuances		Sales		Settlements		Net purchases, issuances, sales and settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments	$	492	$	—	$	(3)	$	—	$	489	$	1	$	(2)	$	(1)
Investments of consolidated VIEs	3,680		—		(1,445)		—		2,235		45		(503)		(458)
Total Level 3 assets – Asset Management	$	4,172	$	—	$	(1,448)	$	—	$	2,724	$	46	$	(505)	$	(459)

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	—	$	—	$	(21)	$	(21)	$	—	$	—	$	—
Debt and other liabilities of consolidated VIEs	—		706		—		(320)		386		—		—		—
Total Level 3 liabilities – Asset Management	$	—	$	706	$	—	$	(341)	$	365	$	—	$	—	$	—

Schedule of Gain (Losses) Recorded for Financial Instruments Elected the Fair Value Option

The following represents the mortgage loan portfolio, with fair value option loans presented at unpaid principal balance:


(In millions)	December 31, 2022
Commercial mortgage loans	$	21,061
Commercial mortgage loans under development	790
Total commercial mortgage loans	21,851
Mark to fair value	(1,743)

Commercial mortgage loans	20,108
Residential mortgage loans	11,802
Mark to fair value	(1,099)

Residential mortgage loans	10,703
Mortgage loans	$	30,811

The following represents the gains (losses) recorded for instruments for which Athene has elected the fair value option, including related parties and VIEs:


(In millions)	Year ended December 31, 2022
Trading securities	$	(424)
Mortgage loans	(3,213)
Investment funds	114
Future policy benefits	356
Other liabilities	(37)
Total gains (losses)	$	(3,204)

The following summarizes information for fair value option mortgage loans, including related parties and VIEs:


(In millions)	December 31, 2022
Unpaid principal balance	$	33,653
Mark to fair value	(2,842)
Fair value	$	30,811

The following represents the commercial mortgage loan portfolio 90 days or more past due and/or in non-accrual status:


(In millions)	December 31, 2022
Unpaid principal balance of commercial mortgage loans 90 days or more past due and/or in non-accrual status	$	74
Mark to fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status	(55)
Fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status	$	19

Fair value of commercial mortgage loans 90 days or more past due	$	2
Fair value of commercial mortgage loans in non-accrual status	19

The following represents the residential loan portfolio 90 days or more past due and/or in non-accrual status:


(In millions)	December 31, 2022
Unpaid principal balance of residential mortgage loans 90 days or more past due and/or in non-accrual status	$	522
Mark to fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status	(50)
Fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status	$	472

Fair value of residential mortgage loans 90 days or more past due1	$	472
Fair value of residential mortgage loans in non-accrual status	360

1 Includes $221 million of residential mortgage loans that are guaranteed by U.S. government-sponsored agencies.

The following is the estimated amount of gains (losses) included in earnings during the period attributable to changes in instrument-specific credit risk on our mortgage loan portfolio:


(In millions)	Year ended December 31, 2022
Mortgage loans	$	(41)

Schedule of Financial Instruments Not Measured at Fair Value

The following represents Athene’s financial instruments not carried at fair value on the consolidated statements of financial condition:


	December 31, 2022
(In millions)	Carrying Value		Fair Value		NAV		Level 1		Level 2		Level 3
Financial assets

Investment funds	$	79	$	79	$	79	$	—	$	—	$	—
Policy loans	347		347		—		—		347		—
Funds withheld at interest	37,727		37,727		—		—		—		37,727
Short-term investments	1,640		1,640		—		—		1,614		26
Other investments	162		162		—		—		—		162
Investments in related parties

Investment funds	610		610		610		—		—		—
Funds withheld at interest	11,233		11,233		—		—		—		11,233





Total financial assets not carried at fair value	$	51,798	$	51,798	$	689	$	—	$	1,961	$	49,148

Financial liabilities
Interest sensitive contract liabilities	$	125,101	$	111,608	$	—	$	—	$	—	$	111,608
Debt	3,658		2,893		—		—		2,893		—
Securities to repurchase	4,743		4,743		—		—		4,743		—
Funds withheld liability	360		360		—		—		360		—
Total financial liabilities not carried at fair value	$	133,862	$	119,604	$	—	$	—	$	7,996	$	111,608