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Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis The carrying amounts and estimated fair values of our financial instruments for which the disclosure of fair values is required, including financial assets and liabilities measured and carried at fair value on a recurring basis, was summarized according to the hierarchy previously described, as follows (in millions):

September 30, 2023
Level 1Level 2Level 3NAVFair ValueCarrying Amount
Assets
Cash and cash equivalents$1,742 $— $— $— $1,742 $1,742 
Fixed maturity securities available-for-sale:
Asset-backed securities— 6,615 6,757 — 13,372 13,372 
Commercial mortgage-backed securities— 4,082 27 — 4,109 4,109 
Corporates— 13,095 1,735 — 14,830 14,830 
Hybrids93 508 — — 601 601 
Municipals— 1,438 47 — 1,485 1,485 
Residential mortgage-backed securities— 2,166 3 — 2,169 2,169 
U.S. Government99 — — — 99 99 
Foreign Governments— 190 16 — 206 206 
Preferred securities163 435 7 — 605 605 
Equity securities77 — — 39 116 116 
Derivative investments— 420 — — 420 420 
Investment in unconsolidated affiliates— — 272 — 272 272 
Short term investments91 8 69 — 168 168 
Reinsurance related embedded derivative, included in other assets— 313 — — 313 313 
Other long-term investments— — 45 45 45 
Market risk benefits asset— — 118 — 118 118 
Total financial assets at fair value$2,265 $29,270 $9,096 $39 $40,670 $40,670 
Liabilities
Derivatives:
FIA/IUL embedded derivatives, included in contractholder funds— — 3,556 — 3,556 3,556 
Interest rate swaps— — 16 — 16 16 
Market risk benefits liability— — 278 — 278 278 
Total financial liabilities at fair value$— $— $3,850 $— $3,850 $3,850 
December 31, 2022
Level 1Level 2Level 3NAVFair ValueCarrying Amount
Assets
Cash and cash equivalents$960 $— $— $— $960 $960 
Fixed maturity securities available-for-sale:
Asset-backed securities— 5,204 6,263 — 11,467 11,467 
Commercial mortgage-backed securities— 2,999 37 — 3,036 3,036 
Corporates— 11,472 1,427 — 12,899 12,899 
Hybrids93 612 — — 705 705 
Municipals— 1,381 29 — 1,410 1,410 
Residential mortgage-backed securities— 1,219 302 — 1,521 1,521 
U.S. Government32 — — — 32 32 
Foreign Governments— 132 16 — 148 148 
Preferred securities248 474 — — 722 722 
Equity securities54 — — 47 101 101 
Derivative investments— 244 — — 244 244 
Investment in unconsolidated affiliates— — 23 — 23 23 
Short term investments1,556 — — — 1,556 1,556 
Reinsurance related embedded derivative, included in other assets— 279 — — 279 279 
Other long-term investments— — 48 — 48 48 
Market risk benefits asset— — 117 — 117 117 
Total financial assets at fair value$2,943 $24,016 $8,262 $47 $35,268 $35,268 
Liabilities
Derivatives:
FIA/IUL embedded derivatives, included in contractholder funds— — 3,115 — 3,115 3,115 
Market risk benefits liability— — 282 — 282 282 
Total financial liabilities at fair value$— $— $3,397 $— $3,397 $3,397 
The following tables provide the carrying value and estimated fair value of our financial instruments that are carried on the Condensed Consolidated Balance Sheets at amounts other than fair value, summarized according to the fair value hierarchy previously described (in millions).
September 30, 2023
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $130 $— $— $130 $130 
Commercial mortgage loans— — 2,148 — 2,148 2,519 
Residential mortgage loans— — 2,326 — 2,326 2,655 
Investments in unconsolidated affiliates— — 8 2,640 2,648 2,648 
Policy loans— — 64 — 64 64 
Company-owned life insurance— — 356 — 356 356 
Total
$— $130 $4,902 $2,640 $7,672 $8,372 
Liabilities
Investment contracts, included in contractholder funds— — 38,737 — 38,737 42,455 
Debt1,548 — — 1,548 1,569 
Total
$— $1,548 $38,737 $— $40,285 $44,024 
December 31, 2022
Level 1Level 2Level 3NAVTotal Estimated Fair ValueCarrying Amount
Assets
FHLB common stock$— $99 $— $— $99 $99 
Commercial mortgage loans— — 2,083 — 2,083 2,406 
Residential mortgage loans— — 1,892 — 1,892 2,148 
Investments in unconsolidated affiliates— — 5 2,427 2,432 2,432 
Policy loans— — 52 — 52 52 
Other invested assets— — 10 — 10 10 
Company-owned life insurance— — 328 — 328 328 
Total
$— $99 $4,370 $2,427 $6,896 $7,475 
Liabilities
Investment contracts, included in contractholder funds— — 34,464 — 34,464 38,412 
Debt— 1,092 — — 1,092 1,114 
Total
$— $1,092 $34,464 $— $35,556 $39,526 
Fair Value Measurement Inputs and Valuation Techniques
Quantitative information regarding significant unobservable inputs used for recurring Level 3 fair value measurements of financial instruments carried at fair value as of September 30, 2023 and December 31, 2022 are as follows (in millions):
Valuation TechniqueUnobservable Input(s)Range (Weighted average)
Fair Value at
AssetsSeptember 30, 2023September 30, 2023
Asset-backed securities$6,534 Broker-QuotedOffered Quotes
54.30% - 155.54%
(94.88%)
Asset-backed securities223 Third-Party ValuationOffered Quotes
0.01% - 101.30%
(41.17%)
Commercial mortgage-backed securities10 Broker-QuotedOffered Quotes
100.08% - 100.53%
(100.31%)
Commercial mortgage-backed securities17  Third-Party Valuation Offered Quotes
76.95% - 90.27%%
(84.73%)
Corporates936  Broker-Quoted Offered Quotes
39.46% - 104.74%
(95.65%)
Corporates799  Third-Party Valuation Offered Quotes
0.00% - 100.88%
(88.18%)
Municipals30 Third-Party ValuationOffered Quotes
97.54% - 97.54%
(97.54%)
Municipals17 Broker-QuotedOffered Quotes
97.50% - 97.50%
(97.50%)
Residential mortgage-backed securities3  Third-Party Valuation Offered Quotes
91.05% - 91.05%
(91.05%)
Foreign governments16  Third-Party Valuation Offered Quotes
97.50% - 99.32%
(98.75%)
Investment in unconsolidated affiliates272 Market Comparable Company AnalysisEBITDA Multiple
5x - 23.7x
 (17.4x)
Short term investments69  Broker-Quoted Offered Quotes
100.07% - 100.07%
(100.07%)
Preferred securities7 Broker-QuotedOffered Quotes
$22.75-$22.75
($22.75)
Other long-term investments:
Available-for-sale embedded derivative23 Black Scholes ModelMarket Value of Fund
100.00%
Secured borrowing receivable10 Broker-QuotedOffered Quotes
100.00% - 100.00%
(100.00%)
Credit linked note12 Broker-Quoted Offered Quotes
97.57%
Market risk benefits asset118Discounted Cash FlowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(5.27%)
Partial Withdrawal Rates
2.00% - 14.71%%
(2.50%)
Non-Performance Spread
0.64% - 1.34%%
(1.21%)
GMWB Utilization
50.00% - 60.00%
(50.81%)
Total financial assets at fair value$9,096 
Liabilities
Derivatives:
FIA/IUL embedded derivatives, included in contractholder funds$3,556 Discounted Cash FlowMarket Value of Option
0.00% - 22.09%
(1.54%)
Swap Rates
4.59% - 5.53%
(5.06%)
Mortality Multiplier
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 70.00%
(6.83%)
Partial Withdrawals
2.00% - 34.48%
(2.74%)
Non-Performance Spread
0.64% - 1.34%
(1.21%)
Option cost
0.07% - 5.48%
(2.30%)
Interest rate swaps16 Broker-QuotedOffered Quotes
100.00% - 101.87%
(100.39%)
Market risk benefits liability278 Discounted Cash FlowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(5.27%)
Partial Withdrawal Rates
2.00% - 14.71%
(2.50%)
Non-Performance Spread
0.64% - 1.34%
(1.21%)
GMWB Utilization
50.00% - 60.00%
(50.81%)
Total financial liabilities at fair value$3,850 
Valuation TechniqueUnobservable Input(s)Range (Weighted average)
Fair Value at
December 31, 2022December 31, 2022
Assets
Asset-backed securities$5,916 Broker-QuotedOffered Quotes
52.85% - 117.17%
(94.18%)
Asset-backed securities347 Third-Party ValuationOffered Quotes
41.43% - 210.50%
(67.99%)
Commercial mortgage-backed securities20 Broker-QuotedOffered Quotes
109.02% - 109.02%
(109.02%)
Commercial mortgage-backed securities17 Third-Party ValuationOffered Quotes
74.66% - 88.48%
(82.74%)
Corporates602 Broker-QuotedOffered Quotes
79.16% - 102.53%
(94.16%)
Corporates825 Third-Party ValuationOffered Quotes
0.00% - 104.96%
(89.69%)
Municipals29 Third-Party ValuationOffered Quotes
93.95% - 93.95%
(93.95%)
Residential mortgage-backed securities302 Broker-QuotedOffered Quotes
0.00% - 91.04%
(86.38%)
Foreign governments16 Third-Party ValuationOffered Quotes
99.78% - 102.29%%
(100.56%)
Investment in unconsolidated affiliates23 Market Comparable Company AnalysisEBITDA Multiple
5x - 5.5x
Other long-term investments:
Available-for-sale embedded derivative23 Black Scholes ModelMarket Value of Fund
100.00%
Secured borrowing receivable10 Broker-QuotedOffered Quotes
100.00% - 100.00%
(100.00%)
Credit linked note15 Broker-QuotedOffered Quotes
96.23%
Market risk benefits asset117 Discounted Cash flowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(4.69%)
Partial Withdrawal Rates
2.00% - 21.74%
(2.49%)
Non-Performance Spread
0.48% - 1.44%
(1.30%)
GMWB Utilization
50.00% - 60.00%
(50.94%)
Total financial assets at fair value$8,262 
Liabilities
Derivatives:
FIA/ IUL embedded derivatives, included in contractholder funds$3,115 Discounted Cash FlowMarket Value of Option
0.00% - 23.90%
(0.87%)
Swap Rates
3.88% - 4.73%
(4.31%)
Mortality Multiplier
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 70.00%
(6.57%)
Partial Withdrawals
2.00% - 29.41%
(2.73%)
Non-Performance Spread
0.48% - 1.44%
(1.30%)
Option Cost
0.07% - 4.97%
(1.89%)
Valuation TechniqueUnobservable Input(s)Range (Weighted average)
Fair Value at
December 31, 2022December 31, 2022
Market risk benefits liability282 Discounted Cash FlowMortality
100.00% - 100.00%
(100.00%)
Surrender Rates
0.25% - 10.00%
(4.69%)
Partial Withdrawal Rates
2.00% - 21.74%
(2.49%)
Non-Performance Spread
0.48% - 1.44%
(1.30%)
GMWB Utilization
50.00% - 60.00%
(50.94%)
Total financial liabilities at fair value$3,397 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2023 and September 30, 2022 (in millions). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended September 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$6,510 $(45)$75 $536 $(27)$(171)$(121)$6,757 $75 
Commercial mortgage-backed securities17 — — 10 — — — 27 — 
Corporates1,618 — (21)162 — (24)— 1,735 (21)
Municipals49 — (2)— — — — 47 (2)
Residential mortgage-backed securities28 — (1)— — (1)(23)3 (1)
Foreign governments16 — — — — — — 16 
Investment in unconsolidated affiliates197 — — 75 — — — 272 — 
Short-term126 — — 65 (19)(103)— 69 — 
Preferred securities6 — 1 — — — — 7 1 
Other long-term investments:
Available-for-sale embedded derivative26 — (3)— — — — 23 (3)
Credit linked note13 — — — — (1)— 12 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal assets at Level 3 fair value$8,616 $(45)$49 $848 $(46)$(300)$(144)$8,978 $49 
Market risk benefits asset (b)118 118 
Total assets at Level 3 fair value$8,734 $9,096 
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,821 (796)— 576 — (45)— 3,556 — 
Interest rate swaps— 16 — — — — — 16 — 
Subtotal liabilities at Level 3 fair value$3,821 $(780)$— $576 $— $(45)$— $3,572 $— 
Market risk benefits liability (b)313 278 
Total liabilities at Level 3 fair value
$4,134 $3,850 
(a) The net transfers out of Level 3 during the three months ended September 30, 2023 were exclusively to Level 2.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Three months ended September 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of
Level 3 (a)
Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$4,677 $— $(71)$1,530 $— $(123)$(61)$5,952 $(80)
Commercial mortgage-backed securities37 — — — — — — 37 — 
Corporates1,356 — (53)135 — (147)(4)1,287 (57)
Hybrids— — — — — — — — — 
Municipals33 — (3)— — — — 30 (4)
Residential mortgage-backed securities9 — — 5 — — (9)5 — 
Foreign governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates21 — — — — — — 21 — 
Available-for-sale embedded derivative24 (2)— — — — — 22 — 
Loan participations
Credit linked note17 (1)— — (2)— — 14 — 
Secured borrowing receivable10 — — — — — — 10 — 
Other long-term investment
Subtotal assets at Level 3 fair value$6,200 $(3)$(127)$1,670 $(2)$(270)$(74)$7,394 $(141)
Market risk benefits asset (b)86 121 
Total assets at Level 3 fair value$6,286 $7,515 
Liabilities
Future policy benefits
FIA/IUL embedded derivatives, included in contractholder funds2,941 (283)— 138 — (21)— 2,775 — 
Subtotal liabilities at Level 3 fair value$2,941 $(283)$— $138 $— $(21)$— $2,775 $— 
Market risk benefits liability (b)292 242 
Total liabilities at Level 3 fair value
$3,233 $3,017 

(a)The net transfers out of Level 3 during the three months ended September 30, 2022 were to Level 2.
(b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Nine months ended September 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of
Level 3 (a)
Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$6,263 $(56)$108 $1,331 $(125)$(557)$(207)$6,757 $107 
Commercial mortgage-backed securities37 — 1 22 — — (33)27 1 
Corporates1,427 (1)(77)421 (43)8 1,735 (77)
Municipals29 — 18 — — — — 47 18 
Residential mortgage-backed securities302 1 7 32 (9)(330)3 7 
Foreign governments16 — — — — — — 16 — 
Short-term— — — 191 (19)(103)— 69 — 
Preferred securities— — 1 — — — 6 7 1 
Other long-term investments:
Available-for-sale embedded derivative23 — — — — — — 23 — 
Investment in affiliate23 — 249 — — — 272 — 
Credit linked note15 — — — — (3)— 12 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal assets at Level 3 fair value
$8,145 $(56)$58 $2,246 $(144)$(715)$(556)$8,978 $57 
Market risk benefits asset (b)117 118 
Total assets at Level 3 fair value$8,262 $9,096 
Liabilities
Future policy benefits$— $— $— $— $— $— $— $— $— 
FIA/IUL embedded derivatives, included in contractholder funds3,115 (214)— 765 — (110)— 3,556 — 
Interest rate swaps— 16 — — — — — 16 — 
Subtotal liabilities at Level 3 fair value
$3,115 $(198)$— $765 $— $(110)$— $3,572 $— 
Market risk benefits liability (b)282 278 
Total liabilities at Level 3 fair value
$3,397 $3,850 
(a)The net transfers out of Level 3 during the nine months ended September 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1.
(b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Nine months ended September 30, 2022
Balance at Beginning of PeriodTotal Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of Level 3 (a)
Balance at End of PeriodChange in Unrealized Included in OCI
Included in EarningsIncluded in AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities3,959 1 (343)2,757 (39)(401)18 5,952 $(371)
Commercial mortgage-backed securities35 — (5)— — — 7 37 (4)
Corporates1,121 — (190)517 — (178)17 1,287 (191)
Municipals43 — (13)— — — — 30 (13)
Residential mortgage-backed securities— — — 14 — — (9)5 — 
Foreign Governments18 — (2)— — — — 16 (1)
Short-term321 — (1)20 — — (340)— (1)
Preferred securities1 — (1)— — — — — (1)
Other long-term investments:
Available-for-sale embedded derivative34 (12)— — — — — 22 — 
Credit linked note23 (1)(3)— (2)(3)— 14 — 
Secured borrowing receivable— — — — — — 10 10 — 
Investment in affiliate21 — — — — — — 21 — 
Subtotal assets at Level 3 fair value
$5,576 $(12)$(558)$3,308 $(41)$(582)$(297)$7,394 $(582)
Market risk benefits asset (b)41 121 
Total assets at Level 3 fair value$5,617 $7,515 
Liabilities
FIA/IUL embedded derivatives, included in contractholder funds3,883 (1,442)— 410 — (76)— 2,775 — 
Subtotal liabilities at Level 3 fair value
$3,883 $(1,442)$— $410 $— $(76)$— $2,775 $— 
Market risk benefits liability (b)469 242 
Total liabilities at Level 3 fair value
$4,352 $3,017 
(a) The net transfers out of Level 3 during the nine months ended September 30, 2022 were to Level 2.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2023 and September 30, 2022 (in millions). The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology.
Three months ended September 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlementsNet transfer In (Out) of
Level 3 (a)		Balance at End of
Period		Change in Unrealized Gains (Losses) Incl in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$6,510 $(45)$75 $536 $(27)$(171)$(121)$6,757 $75 
Commercial mortgage-backed securities17 — — 10 — — — 27 — 
Corporates1,618 — (21)162 — (24)— 1,735 (21)
Municipals49 — (2)— — — — 47 (2)
Residential mortgage-backed securities28 — (1)— — (1)(23)3 (1)
Foreign governments16 — — — — — — 16 
Investment in unconsolidated affiliates197 — — 75 — — — 272 — 
Short-term126 — — 65 (19)(103)— 69 — 
Preferred securities6 — 1 — — — — 7 1 
Other long-term investments:
Available-for-sale embedded derivative26 — (3)— — — — 23 (3)
Credit linked note13 — — — — (1)— 12 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal assets at Level 3 fair value$8,616 $(45)$49 $848 $(46)$(300)$(144)$8,978 $49 
Market risk benefits asset (b)118 118 
Total assets at Level 3 fair value$8,734 $9,096 
Liabilities
FIA/ IUL embedded derivatives, included in contractholder funds3,821 (796)— 576 — (45)— 3,556 — 
Interest rate swaps— 16 — — — — — 16 — 
Subtotal liabilities at Level 3 fair value$3,821 $(780)$— $576 $— $(45)$— $3,572 $— 
Market risk benefits liability (b)313 278 
Total liabilities at Level 3 fair value
$4,134 $3,850 
(a) The net transfers out of Level 3 during the three months ended September 30, 2023 were exclusively to Level 2.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Three months ended September 30, 2022
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of
Level 3 (a)
Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$4,677 $— $(71)$1,530 $— $(123)$(61)$5,952 $(80)
Commercial mortgage-backed securities37 — — — — — — 37 — 
Corporates1,356 — (53)135 — (147)(4)1,287 (57)
Hybrids— — — — — — — — — 
Municipals33 — (3)— — — — 30 (4)
Residential mortgage-backed securities9 — — 5 — — (9)5 — 
Foreign governments16 — — — — — — 16 — 
Investment in unconsolidated affiliates21 — — — — — — 21 — 
Available-for-sale embedded derivative24 (2)— — — — — 22 — 
Loan participations
Credit linked note17 (1)— — (2)— — 14 — 
Secured borrowing receivable10 — — — — — — 10 — 
Other long-term investment
Subtotal assets at Level 3 fair value$6,200 $(3)$(127)$1,670 $(2)$(270)$(74)$7,394 $(141)
Market risk benefits asset (b)86 121 
Total assets at Level 3 fair value$6,286 $7,515 
Liabilities
Future policy benefits
FIA/IUL embedded derivatives, included in contractholder funds2,941 (283)— 138 — (21)— 2,775 — 
Subtotal liabilities at Level 3 fair value$2,941 $(283)$— $138 $— $(21)$— $2,775 $— 
Market risk benefits liability (b)292 242 
Total liabilities at Level 3 fair value
$3,233 $3,017 

(a)The net transfers out of Level 3 during the three months ended September 30, 2022 were to Level 2.
(b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Nine months ended September 30, 2023
Balance at Beginning
of Period		Total Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of
Level 3 (a)
Balance at End of
Period		Change in Unrealized Included in OCI
Included in
Earnings		Included in
AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities$6,263 $(56)$108 $1,331 $(125)$(557)$(207)$6,757 $107 
Commercial mortgage-backed securities37 — 1 22 — — (33)27 1 
Corporates1,427 (1)(77)421 (43)8 1,735 (77)
Municipals29 — 18 — — — — 47 18 
Residential mortgage-backed securities302 1 7 32 (9)(330)3 7 
Foreign governments16 — — — — — — 16 — 
Short-term— — — 191 (19)(103)— 69 — 
Preferred securities— — 1 — — — 6 7 1 
Other long-term investments:
Available-for-sale embedded derivative23 — — — — — — 23 — 
Investment in affiliate23 — 249 — — — 272 — 
Credit linked note15 — — — — (3)— 12 — 
Secured borrowing receivable10 — — — — — — 10 — 
Subtotal assets at Level 3 fair value
$8,145 $(56)$58 $2,246 $(144)$(715)$(556)$8,978 $57 
Market risk benefits asset (b)117 118 
Total assets at Level 3 fair value$8,262 $9,096 
Liabilities
Future policy benefits$— $— $— $— $— $— $— $— $— 
FIA/IUL embedded derivatives, included in contractholder funds3,115 (214)— 765 — (110)— 3,556 — 
Interest rate swaps— 16 — — — — — 16 — 
Subtotal liabilities at Level 3 fair value
$3,115 $(198)$— $765 $— $(110)$— $3,572 $— 
Market risk benefits liability (b)282 278 
Total liabilities at Level 3 fair value
$3,397 $3,850 
(a)The net transfers out of Level 3 during the nine months ended September 30, 2023 were to Level 2, except for the net transfers out related to our other long-term investment, which was to Level 1.
(b)Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.
Nine months ended September 30, 2022
Balance at Beginning of PeriodTotal Gains (Losses)PurchasesSalesSettlements
Net transfer In (Out) of Level 3 (a)
Balance at End of PeriodChange in Unrealized Included in OCI
Included in EarningsIncluded in AOCI
Assets
Fixed maturity securities available-for-sale:
Asset-backed securities3,959 1 (343)2,757 (39)(401)18 5,952 $(371)
Commercial mortgage-backed securities35 — (5)— — — 7 37 (4)
Corporates1,121 — (190)517 — (178)17 1,287 (191)
Municipals43 — (13)— — — — 30 (13)
Residential mortgage-backed securities— — — 14 — — (9)5 — 
Foreign Governments18 — (2)— — — — 16 (1)
Short-term321 — (1)20 — — (340)— (1)
Preferred securities1 — (1)— — — — — (1)
Other long-term investments:
Available-for-sale embedded derivative34 (12)— — — — — 22 — 
Credit linked note23 (1)(3)— (2)(3)— 14 — 
Secured borrowing receivable— — — — — — 10 10 — 
Investment in affiliate21 — — — — — — 21 — 
Subtotal assets at Level 3 fair value
$5,576 $(12)$(558)$3,308 $(41)$(582)$(297)$7,394 $(582)
Market risk benefits asset (b)41 121 
Total assets at Level 3 fair value$5,617 $7,515 
Liabilities
FIA/IUL embedded derivatives, included in contractholder funds3,883 (1,442)— 410 — (76)— 2,775 — 
Subtotal liabilities at Level 3 fair value
$3,883 $(1,442)$— $410 $— $(76)$— $2,775 $— 
Market risk benefits liability (b)469 242 
Total liabilities at Level 3 fair value
$4,352 $3,017 
(a) The net transfers out of Level 3 during the nine months ended September 30, 2022 were to Level 2.
(b) Refer to Note G - Market Risk Benefits for roll forward activity of the net Market Risk Benefits Asset and Liability.