XML 57 R32.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Financial Assets and Liabilities Recorded at Fair Value

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


	March 31, 2024
(In millions)	Level 1		Level 2		Level 3			NAV		Total
Assets
Asset Management
Cash and cash equivalents	$	2,473	$	—	$	—		$	—	$	2,473
Restricted cash and cash equivalents	2		—		—			—		2
Cash and cash equivalents of VIEs	323		—		—			—		323

Investments, at fair value	199		22		1,182		1	66		1,469
Investments of VIEs	—		27		2,110			134		2,271
Due from related parties2	—		—		33			—		33
Derivative assets3	—		5		9			—		14
Total Assets – Asset Management	2,997		54		3,334			200		6,585


Retirement Services
AFS Securities
U.S. government and agencies	5,796		7		—			—		5,803
U.S. state, municipal and political subdivisions	—		1,031		—			—		1,031
Foreign governments	809		935		40			—		1,784
Corporate	11		80,035		3,378			—		83,424
CLO	—		22,398		—			—		22,398
ABS	—		6,705		7,165			—		13,870
CMBS	—		6,915		21			—		6,936
RMBS	—		7,362		265			—		7,627
Total AFS securities	6,616		125,388		10,869			—		142,873
Trading securities	23		1,622		40			—		1,685
Equity securities	212		1,054		27			—		1,293
Mortgage loans	—		—		48,207			—		48,207

Funds withheld at interest – embedded derivative	—		—		(3,362)			—		(3,362)


Derivative assets	127		7,031		1			—		7,159
Short-term investments	70		169		101			—		340
Other investments	—		362		751			—		1,113
Cash and cash equivalents	15,250		—		—			—		15,250
Restricted cash and cash equivalents	1,575		—		—			—		1,575
Investments in related parties
AFS securities
Corporate	—		180		1,175			—		1,355
CLO	—		3,926		520			—		4,446
ABS	—		534		10,043			—		10,577

Total AFS securities – related parties	—		4,640		11,738			—		16,378
Trading securities	—		—		781			—		781
Equity securities	66		—		249			—		315
Mortgage loans	—		—		1,263			—		1,263
Investment funds	—		—		1,067			—		1,067
Funds withheld at interest – embedded derivative	—		—		(723)			—		(723)

Other investments	—		—		336			—		336
Reinsurance recoverable	—		—		1,468			—		1,468
Other assets5	—		—		383			—		383

(Continued)


	March 31, 2024
(In millions)	Level 1		Level 2		Level 3		NAV		Total
Assets of consolidated VIEs
Trading securities	—		264		1,770		—		2,034

Mortgage loans	—		—		2,147		—		2,147
Investment funds	—		—		951		15,756		16,707
Other investments	4		2		115		—		121
Cash and cash equivalents	93		—		—		—		93
Total Assets – Retirement Services	24,036		140,532		78,179		15,756		258,503
Total Assets	$	27,033	$	140,586	$	81,513	$	15,956	$	265,088


Liabilities
Asset Management

Other liabilities of VIEs, at fair value	$	—	$	11	$	—	$	—	$	11
Contingent consideration obligations4	—		—		127		—		127


Total Liabilities – Asset Management	—		11		127		—		138
Retirement Services
Interest sensitive contract liabilities
Embedded derivative	—		—		10,908		—		10,908
Universal life benefits	—		—		788		—		788
Future policy benefits
AmerUs Closed Block	—		—		1,151		—		1,151
ILICO Closed Block and life benefits	—		—		553		—		553
Market risk benefits5	—		—		3,723		—		3,723
Derivative liabilities	17		2,411		1		—		2,429
Other liabilities	—		—		229		—		229
Total Liabilities – Retirement Services	17		2,411		17,353		—		19,781
Total Liabilities	$	17	$	2,422	$	17,480	$	—	$	19,919

(Concluded)


	December 31, 2023
(In millions)	Level 1		Level 2		Level 3			NAV		Total
Assets
Asset Management
Cash and cash equivalents	$	2,748	$	—	$	—		$	—	$	2,748
Restricted cash and cash equivalents	2		—		—			—		2
Cash and cash equivalents of VIEs	62		—		—			—		62

Investments, at fair value	202		38		1,188		1	61		1,489
Investments of VIEs	—		16		1,492			127		1,635
Due from related parties2	—		—		37			—		37
Derivative assets3	—		—		13			—		13
Total Assets – Asset Management	3,014		54		2,730			188		5,986

Retirement Services
AFS Securities
U.S. government and agencies	5,392		7		—			—		5,399
U.S. state, municipal and political subdivisions	—		1,046		—			—		1,046
Foreign governments	895		964		40			—		1,899
Corporate	10		75,711		2,525			—		78,246
CLO	—		20,207		—			—		20,207
ABS	—		6,440		6,943			—		13,383
CMBS	—		6,570		21			—		6,591
RMBS	—		7,302		265			—		7,567
Total AFS securities	6,297		118,247		9,794			—		134,338
Trading securities	24		1,654		28			—		1,706
Equity securities	210		699		26			—		935
Mortgage loans	—		—		44,115			—		44,115

Funds withheld at interest – embedded derivative	—		—		(3,379)			—		(3,379)
Derivative assets	108		5,190		—			—		5,298
Short-term investments	—		236		105			—		341
Other investments	—		313		630			—		943
Cash and cash equivalents	13,020		—		—			—		13,020
Restricted cash and cash equivalents	1,761		—		—			—		1,761
Investments in related parties
AFS securities
Corporate	—		181		1,171			—		1,352
CLO	—		3,762		506			—		4,268
ABS	—		563		7,826			—		8,389
Total AFS securities – related parties	—		4,506		9,503			—		14,009
Trading securities	—		—		838			—		838
Equity securities	63		—		255			—		318
Mortgage loans	—		—		1,281			—		1,281
Investment funds	—		—		1,082			—		1,082
Funds withheld at interest – embedded derivative	—		—		(721)			—		(721)

Other investments	—		—		343			—		343
Reinsurance recoverable	—		—		1,367			—		1,367
Other assets5	—		—		378			—		378
Assets of consolidated VIEs
Trading securities	—		284		1,852			—		2,136

Mortgage loans	—		—		2,173			—		2,173
Investment funds	—		—		977			14,843		15,820

(Continued)


	December 31, 2023
(In millions)	Level 1		Level 2		Level 3		NAV		Total
Other investments	—		2		101		—		103
Cash and cash equivalents	98		—		—		—		98
Total Assets – Retirement Services	21,581		131,131		70,748		14,843		238,303
Total Assets	$	24,595	$	131,185	$	73,478	$	15,031	$	244,289
Liabilities
Asset Management

Other liabilities of VIEs, at fair value	$	—	$	3	$	—	$	—	$	3
Contingent consideration obligations4	—		—		93		—		93
Derivative liabilities3	—		42		—		—		42

Total Liabilities – Asset Management	—		45		93		—		138


Retirement Services
Interest sensitive contract liabilities
Embedded derivative	—		—		9,059		—		9,059
Universal life benefits	—		—		834		—		834
Future policy benefits
AmerUs Closed Block	—		—		1,178		—		1,178
ILICO Closed Block and life benefits	—		—		522		—		522
Market risk benefits5	—		—		3,751		—		3,751
Derivative liabilities	17		1,977		1		—		1,995
Other liabilities	—		(64)		330		—		266
Total Liabilities – Retirement Services	17		1,913		15,675		—		17,605
Total Liabilities	$	17	$	1,958	$	15,768	$	—	$	17,743

(Concluded)


1 Investments as of March 31, 2024 and December 31, 2023 excludes $207 million and $218 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.
2 Due from related parties represents a receivable from a fund.
3 Derivative assets and derivative liabilities are presented as a component of Other assets and Other liabilities, respectively, in the condensed consolidated statements of financial condition.
4 As of March 31, 2024 and December 31, 2023, Other liabilities includes $74 million and $26 million, respectively, of contingent obligations related to the Griffin Capital acquisition, classified as Level 3 and also includes profit sharing payable of $53 million and $67 million, respectively, related to other contingent obligations classified as Level 3.

5 Other assets consist of market risk benefits assets. See note 8 for additional information on market risk benefits assets and liabilities valuation methodology and additional fair value disclosures.

Schedule 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:

March 31, 2024

Fair Value

(In millions)

Valuation Technique

Unobservable Inputs

Ranges

Weighted Average

Financial Assets

Asset Management

Investments

855

Discounted cash flow

Discount rate

10.3% – 52.8%

17.3%

120

Direct capitalization

Capitalization rate

6.9%

207

Adjusted transaction value

N/A

Due from related parties

Discounted cash flow

Discount rate

14.0%

Derivative assets

Option model

Volatility rate

55.0%

Investments of consolidated VIEs

Bank loans

272

Discounted cash flow

Discount rate

7.9% – 15.2%

8.4%

1,137

Adjusted transaction value

N/A

Equity securities

492

Dividend discount model

Discount rate

13.5%

166

Adjusted transaction value

N/A

Bonds

Discounted cash flow

Discount rate

5.7% – 12.3%

9.0%

Retirement Services

AFS, trading and equity securities

16,547

Discounted cash flow

Discount rate

1.7% – 18.2%

7.0%

Mortgage loans2

51,617

Discounted cash flow

Discount rate

1.8% – 26.0%

7.0%

Investment funds2

1,545

Discounted cash flow

Discount rate

6.3% – 13.5%

11.3%

471

Net tangible asset values

Implied multiple

1.24x

Financial Liabilities

Asset Management

Contingent consideration obligations

127

Discounted cash flow

Discount rate

20.0% – 25.0%

22.5%

Option model

Volatility rate

29.2% – 30.1%

29.7%

Retirement Services

Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives

10,908

Discounted cash flow

Nonperformance risk

0.4% – 1.2%

0.8%

Option budget

0.5% – 6.0%

2.5%

Surrender rate

5.9% – 14.0%

8.7%

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 cash flows attributable to the embedded derivative.

4 The option budget and surrender rate weighted averages are calculated based on projected account values.

December 31, 2023

Fair Value

(In millions)

Valuation Techniques

Unobservable Inputs

Ranges

Weighted Average

Financial Assets

Asset Management

Investments

857

Discounted cash flow

Discount rate

10.5% – 52.8%

17.2%

112

Direct capitalization

Capitalization rate

6.9%

219

Adjusted transaction value

N/A

Due from related parties

Discounted cash flow

Discount rate

14.0%

Derivative assets

Option model

Volatility rate

62.5%

Investments of consolidated VIEs

Bank loans

605

Discounted cash flow

Discount rate

7.7% – 11.0%

9.4%

Adjusted transaction value

N/A

Equity securities

494

Dividend discount model

Discount rate

13.5%

131

Adjusted transaction value

N/A

Bonds

Discounted cash flow

Discount rate

6.1% – 13.0%

10.7%

163

Adjusted transaction value

N/A

Retirement Services

AFS, trading and equity securities

14,247

Discounted cash flow

Discount rate

2.3% – 18.1%

7.0%

Mortgage loans2

47,569

Discounted cash flow

Discount rate

2.5% – 20.6%

6.8%

Investment funds2

1,574

Discounted cash flow

Discount rate

6.3% – 13.5%

11.2%

483

Net tangible asset values

Implied multiple

1.14x

Financial Liabilities

Contingent consideration obligations

Discounted cash flow

Discount rate

20.0% – 25.0%

23.3%

Option model

Volatility rate

31.4% – 33.4%

32.4%

Retirement Services

Interest sensitive contract liabilities – fixed indexed annuities embedded derivatives

9,059

Discounted cash flow

Nonperformance risk

0.4% – 1.4%

0.9%

Option budget

0.5% – 6.0%

2.3%

Surrender rate

6.0% – 13.4%

8.7%

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 cash flows attributable to the embedded derivative.

4 The option budget and surrender rate weighted averages are calculated based on projected account values.

The following summarizes the unobservable inputs for market risk benefits:


	March 31, 2024
(In millions, except percentages)	Fair Value		Valuation Technique	Unobservable Inputs	Minimum		Maximum		Weighted Average			Impact of an Increase in the Input on Fair Value
Market risk benefits, net	$	3,340	Discounted cash flow	Nonperformance risk	0.4	%	1.2	%	1.1	%	1	Decrease
				Option budget	0.5	%	6.0	%	2.0	%	2	Decrease
				Surrender rate	3.1	%	6.6	%	4.4	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	84.1	%	3	Increase

	March 31, 2023
(In millions, except percentages)	Fair Value		Valuation Technique	Unobservable Inputs	Minimum		Maximum		Weighted Average			Impact of an Increase in the Input on Fair Value
Market risk benefits, net	$	2,763	Discounted cash flow	Nonperformance risk	0.3	%	1.7	%	1.6	%	1	Decrease
				Option budget	0.5	%	5.6	%	1.7	%	2	Decrease
				Surrender rate	3.3	%	6.9	%	4.5	%	2	Decrease
				Utilization rate	28.6	%	95.0	%	82.7	%	3	Increase
1 The nonperformance risk weighted average is based on the cash flows underlying the market risk benefit reserve.
2 The option budget and surrender rate weighted averages are calculated based on projected account values.
3 The utilization of GLWB withdrawals represents the estimated percentage of policyholders that are expected to use their income rider over the duration of the contract, with the weighted average based on current account values.

Schedule of Level 3 Assets Measured at Fair Value on a Recurring Basis

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


	Three months ended March 31, 2024
			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	$	1,201	$	(7)	$	—	$	(3)	$	—	$	1,191	$	18	$	—
Investments of Consolidated VIEs	1,492		—		—		618		—		2,110		(1)		—
Total Level 3 assets – Asset Management	$	2,693	$	(7)	$	—	$	615	$	—	$	3,301	$	17	$	—

Assets – Retirement Services
AFS securities

Foreign governments	$	40	$	—	$	—	$	—	$	—	$	40	$	—	$	—
Corporate	2,525		(2)		2		844		9		3,378		(1)		1

ABS	6,943		2		13		125		82		7,165		(2)		11
CMBS	21		—		—		—		—		21		—		1
RMBS	265		1		—		(1)		—		265		—		—
Trading securities	28		—		—		(2)		14		40		—		—
Equity securities	26		—		—		1		—		27		1		—
Mortgage loans	44,115		(341)		—		4,433		—		48,207		(341)		—

Funds withheld at interest – embedded derivative	(3,379)		17		—		—		—		(3,362)		—		—
Derivative assets	—		—		—		—		1		1		—		—
Short-term investments	105		—		—		(4)		—		101		—		—
Other investments	630		(3)		—		124		—		751		(3)		—
Investments in related parties
AFS securities
Corporate	1,171		1		(1)		4		—		1,175		—		(1)
CLO	506		—		14		—		—		520		—		14
ABS	7,826		1		(14)		2,230		—		10,043		(4)		(17)
Trading securities	838		—		—		(57)		—		781		—		—
Equity securities	255		(6)		—		—		—		249		(6)		—
Mortgage loans	1,281		(17)		—		(1)		—		1,263		(17)		—
Investment funds	1,082		(15)		—		—		—		1,067		(15)		—

Funds withheld at interest – embedded derivative	(721)		(2)		—		—		—		(723)		—		—
Other investments	343		(7)		—		—		—		336		(7)		—
Reinsurance recoverable	1,367		(8)		—		109		—		1,468		—		—



Assets of consolidated VIEs
Trading securities	1,852		(33)		—		(55)		6		1,770		(33)		—

Mortgage loans	2,173		(42)		—		16		—		2,147		(42)		—
Investment funds	977		(27)		—		1		—		951		(27)		—
Other investments	101		(2)		—		16		—		115		(2)		—
Total Level 3 assets – Retirement Services	$	70,370	$	(483)	$	14	$	7,783	$	112	$	77,796	$	(499)	$	9

Liabilities – Asset Management
Contingent consideration obligations	$	93	$	48	$	—	$	(14)	$	—	$	127	$	—	$	—

Total Level 3 liabilities – Asset Management	$	93	$	48	$	—	$	(14)	$	—	$	127	$	—	$	—

(Continued)


	Three months ended March 31, 2024
			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
Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(9,059)	$	(1,177)	$	—	$	(672)	$	—	$	(10,908)	$	—	$	—
Universal life benefits	(834)		46		—		—		—		(788)		—		—
Future policy benefits
AmerUs Closed Block	(1,178)		27		—		—		—		(1,151)		—		—
ILICO Closed Block and life benefits	(522)		(31)		—		—		—		(553)		—		—
Derivative liabilities	(1)		—		—		—		—		(1)		—		—
Other liabilities	(330)		(10)		—		47		64		(229)		—		—
Total Level 3 liabilities – Retirement Services	$	(11,924)	$	(1,145)	$	—	$	(625)	$	64	$	(13,630)	$	—	$	—

(Concluded)
1 Related to instruments held at end of period.


	Three months ended March 31, 2023
			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	$	1,098	$	26	$	—	$	7	$	—	$	1,131	$	26	$	—
Investments of Consolidated VIEs	727		34		—		523		(2)		1,282		9		—
Total Level 3 assets – Asset Management	$	1,825	$	60	$	—	$	530	$	(2)	$	2,413	$	35	$	—
Assets – Retirement Services
AFS securities

Foreign governments	$	1	$	—	$	—	$	—	$	—	$	1	$	—	$	—
Corporate	1,665		(1)		12		126		(180)		1,622		—		6

ABS	4,867		—		(19)		155		(61)		4,942		—		(16)

RMBS	232		3		3		—		—		238		—		3
Trading securities	53		2		—		(4)		(9)		42		1		—
Equity securities	92		(8)		—		—		(13)		71		(8)		—
Mortgage loans	27,454		251		—		2,244		—		29,949		252		—

Funds withheld at interest – embedded derivative	(4,847)		556		—		—		—		(4,291)		—		—
Short-term investments	36		—		(2)		(30)		26		30		—		—
Other investments	441		1		—		(156)		—		286		2		—
Investments in related parties
AFS securities
Corporate	812		1		(7)		153		—		959		—		(7)
CLO	303		—		10		185		—		498		—		10
ABS	5,542		4		44		1,415		—		7,005		2		42
Trading securities	878		6		—		1		—		885		6		—
Equity securities	279		4		—		(32)		—		251		3		—
Mortgage loans	1,302		26		—		(4)		—		1,324		26		—
Investment funds	959		43		—		32		—		1,034		43		—

(Continued)


	Three months ended March 31, 2023
			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
Funds withheld at interest – embedded derivative	(1,425)		159		—		—		—		(1,266)		—		—

Other investments	303		(7)		—		42		—		338		(7)		—
Reinsurance recoverable	1,388		82		—		—		—		1,470		—		—
Assets of consolidated VIEs
Trading securities	622		12		—		(2)		16		648		12		—

Mortgage loans	2,055		19		—		45		—		2,119		19		—
Investment funds	2,471		18		—		(8)		100		2,581		18		—
Other investments	99		—		—		(2)		—		97		—		—
Total Level 3 assets – Retirement Services	$	45,582	$	1,171	$	41	$	4,160	$	(121)	$	50,833	$	369	$	38

Liabilities – Asset Management
Contingent consideration obligations	$	86	$	(8)	$	—	$	—	$	—	$	78	$	—	$	—

Total Level 3 liabilities – Asset Management	$	86	$	(8)	$	—	$	—	$	—	$	78	$	—	$	—

Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(5,841)	$	(473)	$	—	$	(433)	$	—	$	(6,747)	$	—	$	—
Universal life benefits	(829)		(50)		—		—		—		(879)		—		—
Future policy benefits
AmerUs Closed Block	(1,164)		(26)		—		—		—		(1,190)		—		—
ILICO Closed Block and life benefits	(548)		(31)		—		—		—		(579)		—		—

Derivative liabilities	(1)		—		—		—		—		(1)		—		—
Other liabilities	(142)		(47)		—		—		—		(189)		—		—
Total Level 3 liabilities – Retirement Services	$	(8,525)	$	(627)	$	—	$	(433)	$	—	$	(9,585)	$	—	$	—

(Concluded)
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:


	Three months ended March 31, 2024
(In millions)	Purchases		Issuances		Sales		Settlements		Net Purchases, Issuances, Sales and Settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	12	$	—	$	(15)	$	—	$	(3)	$	—	$	—	$	—
Investments of consolidated VIEs	1,301		—		(683)		—		618		—		—		—
Total Level 3 assets – Asset Management	$	1,313	$	—	$	(698)	$	—	$	615	$	—	$	—	$	—

Assets – Retirement Services
AFS securities


Corporate	$	922	$	—	$	(2)	$	(76)	$	844	$	9	$	—	$	9

ABS	313		—		—		(188)		125		341		(259)		82

RMBS	—		—		—		(1)		(1)		—		—		—
Trading securities	—		—		—		(2)		(2)		14		—		14
Equity securities	2		—		(1)		—		1		—		—		—
Mortgage loans	5,686		—		(26)		(1,227)		4,433		—		—		—

Derivative assets	—		—		—		—		—		1		—		1
Short-term investments	2		—		(6)		—		(4)		—		—		—

Other investments	124		—		—		—		124		—		—		—
Investments in related parties
AFS securities
Corporate	6		—		—		(2)		4		—		—		—

ABS	2,693		—		(200)		(263)		2,230		—		—		—
Trading securities	2		—		—		(59)		(57)		—		—		—

Mortgage loans	—		—		—		(1)		(1)		—		—		—




Reinsurance recoverable	—		109		—		—		109		—		—		—
Assets of consolidated VIEs
Trading securities	—		—		(55)		—		(55)		6		—		6

Mortgage loans	32		—		—		(16)		16		—		—		—
Investment funds	1		—		—		—		1		—		—		—
Other investments	19		—		(3)		—		16		—		—		—
Total Level 3 assets – Retirement Services	$	9,802	$	109	$	(293)	$	(1,835)	$	7,783	$	371	$	(259)	$	112

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	—	$	—	$	(14)	$	(14)	$	—	$	—	$	—

Total Level 3 liabilities – Asset Management	$	—	$	—	$	—	$	(14)	$	(14)	$	—	$	—	$	—

Liabilities – Retirement Services

Interest sensitive contract liabilities - Embedded derivative	$	—	$	(898)	$	—	$	226	$	(672)	$	—	$	—	$	—





Other liabilities	—		—		—		47		47		64		—		64
Total Level 3 liabilities – Retirement Services	$	—	$	(898)	$	—	$	273	$	(625)	$	64	$	—	$	64


	Three months ended March 31, 2023
(In millions)	Purchases		Issuances		Sales		Settlements		Net Purchases, Issuances, Sales and Settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	8	$	—	$	(1)	$	—	$	7	$	—	$	—	$	—
Investments of consolidated VIEs	871		—		(348)		—		523		—		(2)		(2)
Total Level 3 assets – Asset Management	$	879	$	—	$	(349)	$	—	$	530	$	—	$	(2)	$	(2)

Assets – Retirement Services
AFS securities


Corporate	$	208	$	—	$	—	$	(82)	$	126	$	29	$	(209)	$	(180)

ABS	298		—		—		(143)		155		215		(276)		(61)

RMBS	1		—		—		(1)		—		—		—		—
Trading securities	—		—		—		(4)		(4)		5		(14)		(9)
Equity securities	—		—		—		—		—		—		(13)		(13)
Mortgage loans	2,882		—		(32)		(606)		2,244		—		—		—


Short-term investments	—		—		—		(30)		(30)		26		—		26
Other investments	2		—		—		(158)		(156)		—		—		—
Investments in related parties
AFS securities
Corporate	156		—		—		(3)		153		—		—		—
CLO	185		—		—		—		185		—		—		—
ABS	1,634		—		—		(219)		1,415		—		—		—
Trading securities	2		—		—		(1)		1		—		—		—
Equity securities	—		—		—		(32)		(32)		—		—		—
Mortgage loans	—		—		—		(4)		(4)		—		—		—
Investment funds	32		—		—		—		32		—		—		—

Other investments	42		—		—		—		42		—		—		—

Assets of consolidated VIEs
Trading securities	10		—		(12)		—		(2)		19		(3)		16

Mortgage loans	46		—		—		(1)		45		—		—		—
Investment funds	—		—		(8)		—		(8)		148		(48)		100
Other investments	5		—		(7)		—		(2)		—		—		—

Total Level 3 assets – Retirement Services	$	5,503	$	—	$	(59)	$	(1,284)	$	4,160	$	442	$	(563)	$	(121)






Liabilities – Retirement Services
Interest sensitive contract liabilities - Embedded derivative	$	—	$	(577)	$	—	$	144	$	(433)	$	—	$	—	$	—







Total Level 3 liabilities – Retirement Services	$	—	$	(577)	$	—	$	144	$	(433)	$	—	$	—	$	—

Schedule of Level 3 Liabilities Measured at Fair Value on a Recurring Basis


	Three months ended March 31, 2024
			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	$	1,201	$	(7)	$	—	$	(3)	$	—	$	1,191	$	18	$	—
Investments of Consolidated VIEs	1,492		—		—		618		—		2,110		(1)		—
Total Level 3 assets – Asset Management	$	2,693	$	(7)	$	—	$	615	$	—	$	3,301	$	17	$	—

Assets – Retirement Services
AFS securities

Foreign governments	$	40	$	—	$	—	$	—	$	—	$	40	$	—	$	—
Corporate	2,525		(2)		2		844		9		3,378		(1)		1

ABS	6,943		2		13		125		82		7,165		(2)		11
CMBS	21		—		—		—		—		21		—		1
RMBS	265		1		—		(1)		—		265		—		—
Trading securities	28		—		—		(2)		14		40		—		—
Equity securities	26		—		—		1		—		27		1		—
Mortgage loans	44,115		(341)		—		4,433		—		48,207		(341)		—

Funds withheld at interest – embedded derivative	(3,379)		17		—		—		—		(3,362)		—		—
Derivative assets	—		—		—		—		1		1		—		—
Short-term investments	105		—		—		(4)		—		101		—		—
Other investments	630		(3)		—		124		—		751		(3)		—
Investments in related parties
AFS securities
Corporate	1,171		1		(1)		4		—		1,175		—		(1)
CLO	506		—		14		—		—		520		—		14
ABS	7,826		1		(14)		2,230		—		10,043		(4)		(17)
Trading securities	838		—		—		(57)		—		781		—		—
Equity securities	255		(6)		—		—		—		249		(6)		—
Mortgage loans	1,281		(17)		—		(1)		—		1,263		(17)		—
Investment funds	1,082		(15)		—		—		—		1,067		(15)		—

Funds withheld at interest – embedded derivative	(721)		(2)		—		—		—		(723)		—		—
Other investments	343		(7)		—		—		—		336		(7)		—
Reinsurance recoverable	1,367		(8)		—		109		—		1,468		—		—



Assets of consolidated VIEs
Trading securities	1,852		(33)		—		(55)		6		1,770		(33)		—

Mortgage loans	2,173		(42)		—		16		—		2,147		(42)		—
Investment funds	977		(27)		—		1		—		951		(27)		—
Other investments	101		(2)		—		16		—		115		(2)		—
Total Level 3 assets – Retirement Services	$	70,370	$	(483)	$	14	$	7,783	$	112	$	77,796	$	(499)	$	9

Liabilities – Asset Management
Contingent consideration obligations	$	93	$	48	$	—	$	(14)	$	—	$	127	$	—	$	—

Total Level 3 liabilities – Asset Management	$	93	$	48	$	—	$	(14)	$	—	$	127	$	—	$	—

(Continued)


	Three months ended March 31, 2024
			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
Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(9,059)	$	(1,177)	$	—	$	(672)	$	—	$	(10,908)	$	—	$	—
Universal life benefits	(834)		46		—		—		—		(788)		—		—
Future policy benefits
AmerUs Closed Block	(1,178)		27		—		—		—		(1,151)		—		—
ILICO Closed Block and life benefits	(522)		(31)		—		—		—		(553)		—		—
Derivative liabilities	(1)		—		—		—		—		(1)		—		—
Other liabilities	(330)		(10)		—		47		64		(229)		—		—
Total Level 3 liabilities – Retirement Services	$	(11,924)	$	(1,145)	$	—	$	(625)	$	64	$	(13,630)	$	—	$	—

(Concluded)
1 Related to instruments held at end of period.


	Three months ended March 31, 2023
			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	$	1,098	$	26	$	—	$	7	$	—	$	1,131	$	26	$	—
Investments of Consolidated VIEs	727		34		—		523		(2)		1,282		9		—
Total Level 3 assets – Asset Management	$	1,825	$	60	$	—	$	530	$	(2)	$	2,413	$	35	$	—
Assets – Retirement Services
AFS securities

Foreign governments	$	1	$	—	$	—	$	—	$	—	$	1	$	—	$	—
Corporate	1,665		(1)		12		126		(180)		1,622		—		6

ABS	4,867		—		(19)		155		(61)		4,942		—		(16)

RMBS	232		3		3		—		—		238		—		3
Trading securities	53		2		—		(4)		(9)		42		1		—
Equity securities	92		(8)		—		—		(13)		71		(8)		—
Mortgage loans	27,454		251		—		2,244		—		29,949		252		—

Funds withheld at interest – embedded derivative	(4,847)		556		—		—		—		(4,291)		—		—
Short-term investments	36		—		(2)		(30)		26		30		—		—
Other investments	441		1		—		(156)		—		286		2		—
Investments in related parties
AFS securities
Corporate	812		1		(7)		153		—		959		—		(7)
CLO	303		—		10		185		—		498		—		10
ABS	5,542		4		44		1,415		—		7,005		2		42
Trading securities	878		6		—		1		—		885		6		—
Equity securities	279		4		—		(32)		—		251		3		—
Mortgage loans	1,302		26		—		(4)		—		1,324		26		—
Investment funds	959		43		—		32		—		1,034		43		—

(Continued)


	Three months ended March 31, 2023
			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
Funds withheld at interest – embedded derivative	(1,425)		159		—		—		—		(1,266)		—		—

Other investments	303		(7)		—		42		—		338		(7)		—
Reinsurance recoverable	1,388		82		—		—		—		1,470		—		—
Assets of consolidated VIEs
Trading securities	622		12		—		(2)		16		648		12		—

Mortgage loans	2,055		19		—		45		—		2,119		19		—
Investment funds	2,471		18		—		(8)		100		2,581		18		—
Other investments	99		—		—		(2)		—		97		—		—
Total Level 3 assets – Retirement Services	$	45,582	$	1,171	$	41	$	4,160	$	(121)	$	50,833	$	369	$	38

Liabilities – Asset Management
Contingent consideration obligations	$	86	$	(8)	$	—	$	—	$	—	$	78	$	—	$	—

Total Level 3 liabilities – Asset Management	$	86	$	(8)	$	—	$	—	$	—	$	78	$	—	$	—

Liabilities – Retirement Services
Interest sensitive contract liabilities
Embedded derivative	$	(5,841)	$	(473)	$	—	$	(433)	$	—	$	(6,747)	$	—	$	—
Universal life benefits	(829)		(50)		—		—		—		(879)		—		—
Future policy benefits
AmerUs Closed Block	(1,164)		(26)		—		—		—		(1,190)		—		—
ILICO Closed Block and life benefits	(548)		(31)		—		—		—		(579)		—		—

Derivative liabilities	(1)		—		—		—		—		(1)		—		—
Other liabilities	(142)		(47)		—		—		—		(189)		—		—
Total Level 3 liabilities – Retirement Services	$	(8,525)	$	(627)	$	—	$	(433)	$	—	$	(9,585)	$	—	$	—

(Concluded)
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:


	Three months ended March 31, 2024
(In millions)	Purchases		Issuances		Sales		Settlements		Net Purchases, Issuances, Sales and Settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	12	$	—	$	(15)	$	—	$	(3)	$	—	$	—	$	—
Investments of consolidated VIEs	1,301		—		(683)		—		618		—		—		—
Total Level 3 assets – Asset Management	$	1,313	$	—	$	(698)	$	—	$	615	$	—	$	—	$	—

Assets – Retirement Services
AFS securities


Corporate	$	922	$	—	$	(2)	$	(76)	$	844	$	9	$	—	$	9

ABS	313		—		—		(188)		125		341		(259)		82

RMBS	—		—		—		(1)		(1)		—		—		—
Trading securities	—		—		—		(2)		(2)		14		—		14
Equity securities	2		—		(1)		—		1		—		—		—
Mortgage loans	5,686		—		(26)		(1,227)		4,433		—		—		—

Derivative assets	—		—		—		—		—		1		—		1
Short-term investments	2		—		(6)		—		(4)		—		—		—

Other investments	124		—		—		—		124		—		—		—
Investments in related parties
AFS securities
Corporate	6		—		—		(2)		4		—		—		—

ABS	2,693		—		(200)		(263)		2,230		—		—		—
Trading securities	2		—		—		(59)		(57)		—		—		—

Mortgage loans	—		—		—		(1)		(1)		—		—		—




Reinsurance recoverable	—		109		—		—		109		—		—		—
Assets of consolidated VIEs
Trading securities	—		—		(55)		—		(55)		6		—		6

Mortgage loans	32		—		—		(16)		16		—		—		—
Investment funds	1		—		—		—		1		—		—		—
Other investments	19		—		(3)		—		16		—		—		—
Total Level 3 assets – Retirement Services	$	9,802	$	109	$	(293)	$	(1,835)	$	7,783	$	371	$	(259)	$	112

Liabilities - Asset Management
Contingent consideration obligations	$	—	$	—	$	—	$	(14)	$	(14)	$	—	$	—	$	—

Total Level 3 liabilities – Asset Management	$	—	$	—	$	—	$	(14)	$	(14)	$	—	$	—	$	—

Liabilities – Retirement Services

Interest sensitive contract liabilities - Embedded derivative	$	—	$	(898)	$	—	$	226	$	(672)	$	—	$	—	$	—





Other liabilities	—		—		—		47		47		64		—		64
Total Level 3 liabilities – Retirement Services	$	—	$	(898)	$	—	$	273	$	(625)	$	64	$	—	$	64


	Three months ended March 31, 2023
(In millions)	Purchases		Issuances		Sales		Settlements		Net Purchases, Issuances, Sales and Settlements		Transfers In		Transfers Out		Net Transfers In (Out)
Assets – Asset Management
Investments and derivative assets	$	8	$	—	$	(1)	$	—	$	7	$	—	$	—	$	—
Investments of consolidated VIEs	871		—		(348)		—		523		—		(2)		(2)
Total Level 3 assets – Asset Management	$	879	$	—	$	(349)	$	—	$	530	$	—	$	(2)	$	(2)

Assets – Retirement Services
AFS securities


Corporate	$	208	$	—	$	—	$	(82)	$	126	$	29	$	(209)	$	(180)

ABS	298		—		—		(143)		155		215		(276)		(61)

RMBS	1		—		—		(1)		—		—		—		—
Trading securities	—		—		—		(4)		(4)		5		(14)		(9)
Equity securities	—		—		—		—		—		—		(13)		(13)
Mortgage loans	2,882		—		(32)		(606)		2,244		—		—		—


Short-term investments	—		—		—		(30)		(30)		26		—		26
Other investments	2		—		—		(158)		(156)		—		—		—
Investments in related parties
AFS securities
Corporate	156		—		—		(3)		153		—		—		—
CLO	185		—		—		—		185		—		—		—
ABS	1,634		—		—		(219)		1,415		—		—		—
Trading securities	2		—		—		(1)		1		—		—		—
Equity securities	—		—		—		(32)		(32)		—		—		—
Mortgage loans	—		—		—		(4)		(4)		—		—		—
Investment funds	32		—		—		—		32		—		—		—

Other investments	42		—		—		—		42		—		—		—

Assets of consolidated VIEs
Trading securities	10		—		(12)		—		(2)		19		(3)		16

Mortgage loans	46		—		—		(1)		45		—		—		—
Investment funds	—		—		(8)		—		(8)		148		(48)		100
Other investments	5		—		(7)		—		(2)		—		—		—

Total Level 3 assets – Retirement Services	$	5,503	$	—	$	(59)	$	(1,284)	$	4,160	$	442	$	(563)	$	(121)






Liabilities – Retirement Services
Interest sensitive contract liabilities - Embedded derivative	$	—	$	(577)	$	—	$	144	$	(433)	$	—	$	—	$	—







Total Level 3 liabilities – Retirement Services	$	—	$	(577)	$	—	$	144	$	(433)	$	—	$	—	$	—

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)	March 31, 2024		December 31, 2023
Commercial mortgage loans	$	30,512	$	27,630
Commercial mortgage loans under development	1,187		1,228
Total commercial mortgage loans	31,699		28,858
Mark to fair value	(3,165)		(2,246)
Commercial mortgage loans	28,534		26,612
Residential mortgage loans	24,058		21,894
Mark to fair value	(975)		(937)
Residential mortgage loans	23,083		20,957
Mortgage loans	$	51,617	$	47,569

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


	Three months ended March 31,
(In millions)		2024		2023
Trading securities		$	(60)	$	64
Mortgage loans		(400)		296
Investment funds		(28)		62
Future policy benefits		27		(26)
Other		15		(47)
Total gains (losses)		$	(446)	$	349

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


(In millions)	March 31, 2024		December 31, 2023
Unpaid principal balance	$	55,757	$	50,752
Mark to fair value	(4,140)		(3,183)
Fair value	$	51,617	$	47,569

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


(In millions)	March 31, 2024		December 31, 2023
Unpaid principal balance of commercial mortgage loans 90 days or more past due and/or in non-accrual status	$	571	$	221
Mark to fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status	(211)		(74)
Fair value of commercial mortgage loans 90 days or more past due and/or in non-accrual status	$	360	$	147

Fair value of commercial mortgage loans 90 days or more past due	$	183	$	64
Fair value of commercial mortgage loans in non-accrual status	360		147

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


(In millions)	March 31, 2024		December 31, 2023
Unpaid principal balance of residential mortgage loans 90 days or more past due and/or in non-accrual status	$	606	$	528
Mark to fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status	(39)		(49)
Fair value of residential mortgage loans 90 days or more past due and/or in non-accrual status	$	567	$	479

Fair value of residential mortgage loans 90 days or more past due1	$	567	$	479
Fair value of residential mortgage loans in non-accrual status	460		355

1 As of March 31, 2024 and December 31, 2023, includes $107 million and $124 million, respectively, 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:


	Three months ended March 31,
(In millions)		2024		2023
Mortgage loans		$	(33)	$	(3)

Schedule of Financial Instruments not Measured at Fair Value

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


	March 31, 2024
(In millions)	Carrying Value		Fair Value		NAV		Level 1		Level 2		Level 3
Financial assets

Investment funds	$	110	$	110	$	110	$	—	$	—	$	—
Policy loans	330		330		—		—		330		—
Funds withheld at interest	26,592		26,592		—		—		—		26,592

Other investments	35		42		—		—		—		42
Investments in related parties

Investment funds	559		559		559		—		—		—
Funds withheld at interest	6,751		6,751		—		—		—		6,751
Short-term investments	556		556		—		—		556		—





Total financial assets not carried at fair value	$	34,933	$	34,940	$	669	$	—	$	886	$	33,385

Financial liabilities
Interest sensitive contract liabilities	$	167,360	$	158,042	$	—	$	—	$	—	$	158,042
Debt	5,740		5,249		—		587		4,662		—
Securities to repurchase	2,666		2,666		—		—		2,666		—
Funds withheld liability	1,365		1,365		—		—		—		1,365
Total financial liabilities not carried at fair value	$	177,131	$	167,322	$	—	$	587	$	7,328	$	159,407


	December 31, 2023
(In millions)	Carrying Value		Fair Value		NAV		Level 1		Level 2		Level 3
Financial assets

Investment funds	$	109	$	109	$	109	$	—	$	—	$	—
Policy loans	334		334		—		—		334		—
Funds withheld at interest	27,738		27,738		—		—		—		27,738

Other investments	46		52		—		—		—		52
Investments in related parties

Investment funds	550		550		550		—		—		—
Funds withheld at interest	7,195		7,195		—		—		—		7,195
Short-term investments	947		947		—		—		947		—





Total financial assets not carried at fair value	$	36,919	$	36,925	$	659	$	—	$	1,281	$	34,985

Financial liabilities
Interest sensitive contract liabilities	$	154,095	$	146,038	$	—	$	—	$	—	$	146,038
Debt	4,209		3,660		—		—		3,660		—
Securities to repurchase	3,853		3,853		—		—		3,853		—
Funds withheld liability	350		350		—		—		350		—
Total financial liabilities not carried at fair value	$	162,507	$	153,901	$	—	$	—	$	7,863	$	146,038