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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Hierarchy, Assets and Liabilities Measured on Recurring Basis

The following tables present the fair value hierarchy levels of the Company's assets and liabilities that are measured and carried at fair value on a recurring basis.


	June 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	34,344		$	1,338		$	0		$	35,682
Municipalities		0			2,965			0			2,965
Mortgage- and asset-backed securities		0			1,026			258			1,284
Public utilities		0			9,913			480			10,393
Sovereign and supranational		0			1,213			45			1,258
Banks/financial institutions		0			11,866			38			11,904
Other corporate		0			38,482			316			38,798
Total fixed maturity securities		34,344			66,803			1,137			102,284
Equity securities		1,231			86			158			1,475
Other investments		1,667			0			0			1,667
Cash and cash equivalents		5,469			0			0			5,469
Other assets:
Foreign currency swaps		0			59			110			169
Foreign currency forwards		0			567			0			567
Foreign currency options		0			1			0			1
Interest rate swaps		0			1			0			1
Forward bond purchase commitment		0			1			0			1

Total other assets		0			629			110			739
Total assets		$	42,711		$	67,518		$	1,405		$	111,634
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	22		$	310		$	332
Foreign currency forwards		0			762			0			762
Foreign currency options		0			1			0			1
Interest rate swaps		0			1			0			1


Total liabilities		$	0		$	786		$	310		$	1,096


	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies		$	36,032		$	1,318		$	0		$	37,350
Municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities		0			814			224			1,038
Public utilities		0			10,395			422			10,817
Sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions		0			12,036			24			12,060
Other corporate		0			39,918			299			40,217
Total fixed maturity securities		36,032			68,833			1,017			105,882
Equity securities		1,095			86			102			1,283
Other investments		1,139			0			0			1,139
Cash and cash equivalents		5,141			0			0			5,141
Other assets:
Foreign currency swaps		0			47			133			180
Foreign currency forwards		0			402			0			402
Foreign currency options		0			1			0			1

Total other assets		0			450			133			583
Total assets		$	43,407		$	69,369		$	1,252		$	114,028
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	81		$	231		$	312
Foreign currency forwards		0			385			0			385


Total liabilities		$	0		$	466		$	231		$	697

Fair Value Hierarchy Levels of Assets and Liabilities Carried at Cost or Amortized Cost

The following tables present the carrying amount and fair value categorized by fair value hierarchy level for the Company's financial instruments that are not carried at fair value.


	June 30, 2021
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	21,938		$	26,683		$	241		$	0		$	26,924
Municipalities		351			0			461			0			461

Public utilities		45			0			58			0			58
Sovereign and supranational		534			0			681			0			681

Other corporate		23			0			30			0			30
Commercial mortgage and other loans		11,332			0			0			11,468			11,468
Other investments (1)		19			0			19			0			19
Total assets		$	34,242		$	26,683		$	1,490		$	11,468		$	39,641
Liabilities:
Other policyholders’ funds		$	7,368		$	0		$	0		$	7,257		$	7,257
Notes payable (excluding leases)		7,979			0			8,462			270			8,732
Total liabilities		$	15,347		$	0		$	8,462		$	7,527		$	15,989

(1) Excludes policy loans of $243 and equity method investments of $1,329, at carrying value


	December 31, 2020
(In millions)	Carrying Value			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Assets:
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies		$	23,445		$	28,810		$	260		$	0		$	29,070
Municipalities		377			0			499			0			499

Public utilities		47			0			61			0			61
Sovereign and supranational		571			0			736			0			736

Other corporate		24			0			33			0			33
Commercial mortgage and other loans		10,554			0			0			10,655			10,655
Other investments (1)		26			0			26			0			26
Total assets		$	35,044		$	28,810		$	1,615		$	10,655		$	41,080
Liabilities:
Other policyholders’ funds		$	7,824		$	0		$	0		$	7,709		$	7,709
Notes payable (excluding leases)		7,745			0			8,396			288			8,684
Total liabilities		$	15,569		$	0		$	8,396		$	7,997		$	16,393

(1) Excludes policy loans of $260 and equity method investments of $1,004, at carrying value

Fair Value Assets Securities Carried At Fair Value Primary Pricing Sources

The following tables present the pricing sources for the fair values of the Company's fixed maturity and equity securities.


	June 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	34,344		$	837		$	0		$	35,181
Broker/other (1)		0			501			0			501
Total government and agencies		34,344			1,338			0			35,682
Municipalities:
Third party pricing vendor		0			2,117			0			2,117
Broker/other (1)		0			848			0			848
Total municipalities		0			2,965			0			2,965
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,023			0			1,023
Broker/other (1)		0			3			258			261
Total mortgage- and asset-backed securities		0			1,026			258			1,284
Public utilities:
Third party pricing vendor		0			4,644			0			4,644
Broker/other (1)		0			5,269			480			5,749
Total public utilities		0			9,913			480			10,393
Sovereign and supranational:
Third party pricing vendor		0			286			0			286
Broker/other (1)		0			927			45			972
Total sovereign and supranational		0			1,213			45			1,258
Banks/financial institutions:
Third party pricing vendor		0			5,243			0			5,243
Broker/other (1)		0			6,623			38			6,661
Total banks/financial institutions		0			11,866			38			11,904
Other corporate:
Third party pricing vendor		0			30,184			0			30,184
Broker/other (1)		0			8,298			316			8,614
Total other corporate		0			38,482			316			38,798
Total securities available for sale		$	34,344		$	66,803		$	1,137		$	102,284
Equity securities, carried at fair value:
Third party pricing vendor		$	1,231		$	86		$	0		$	1,317
Broker/other (1)		0			0			158			158
Total equity securities		$	1,231		$	86		$	158		$	1,475

(1) Other includes in-house valuations generated by DCF models which utilize observable market data inputs.


	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities available for sale, carried at fair value:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	36,032		$	1,318		$	0		$	37,350
Total government and agencies		36,032			1,318			0			37,350
Municipalities:
Third party pricing vendor		0			3,018			0			3,018
Total municipalities		0			3,018			0			3,018
Mortgage- and asset-backed securities:
Third party pricing vendor		0			364			0			364
Broker/other		0			450			224			674
Total mortgage- and asset-backed securities		0			814			224			1,038
Public utilities:
Third party pricing vendor		0			10,395			0			10,395
Broker/other		0			0			422			422
Total public utilities		0			10,395			422			10,817
Sovereign and supranational:
Third party pricing vendor		0			1,334			0			1,334
Broker/other		0			0			48			48
Total sovereign and supranational		0			1,334			48			1,382
Banks/financial institutions:
Third party pricing vendor		0			12,036			0			12,036
Broker/other		0			0			24			24
Total banks/financial institutions		0			12,036			24			12,060
Other corporate:
Third party pricing vendor		0			39,886			0			39,886
Broker/other		0			32			299			331
Total other corporate		0			39,918			299			40,217
Total securities available for sale		$	36,032		$	68,833		$	1,017		$	105,882
Equity securities, carried at fair value:
Third party pricing vendor		$	1,095		$	86		$	0		$	1,181
Broker/other		0			0			102			102
Total equity securities		$	1,095		$	86		$	102		$	1,283

Fair Value Assets Held-To-Maturity Securities Primary Pricing Sources


	June 30, 2021
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	26,683		$	241		$	0		$	26,924
Total government and agencies		26,683			241			0			26,924
Municipalities:
Third party pricing vendor		0			461			0			461
Total municipalities		0			461			0			461




Public utilities:
Third party pricing vendor		0			58			0			58

Total public utilities		0			58			0			58
Sovereign and supranational:
Third party pricing vendor		0			325			0			325
Broker/other (1)		0			356			0			356
Total sovereign and supranational		0			681			0			681




Other corporate:
Third party pricing vendor		0			30			0			30

Total other corporate		0			30			0			30
Total securities held to maturity		$	26,683		$	1,471		$	0		$	28,154


	December 31, 2020
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Securities held to maturity, carried at amortized cost:
Fixed maturity securities:
Government and agencies:
Third party pricing vendor		$	28,810		$	260		$	0		$	29,070
Total government and agencies		28,810			260			0			29,070
Municipalities:
Third party pricing vendor		0			499			0			499
Total municipalities		0			499			0			499




Public utilities:
Third party pricing vendor		0			61			0			61
Total public utilities		0			61			0			61
Sovereign and supranational:
Third party pricing vendor		0			736			0			736
Total sovereign and supranational		0			736			0			736



Other corporate:
Third party pricing vendor		0			33			0			33

Total other corporate		0			33			0			33
Total securities held to maturity		$	28,810		$	1,589		$	0		$	30,399

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables present the changes in fair value of the Company's investments and derivatives carried at fair value classified as Level 3. Derivative assets and liabilities are presented as a net value.


Three Months Ended June 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	204	$	479	$	68	$	28	$	319	$	122	$	(80)	$	1,140
Net investment gains (losses) included in earnings	0		0		0		0		0		13		(120)		(107)
Unrealized gains (losses) included in other comprehensive income (loss)	0		8		0		0		14		0		0		22
Purchases, issuances, sales and settlements:
Purchases	54		0		0		10		0		6		0		70
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		0		0		(23)
Settlements	0		(7)		0		0		(17)		0		0		(24)
Transfers into Level 3	0		0		0		0		0		0		0		0
Transfers out of Level 3	0		0		0		0		0		0		0		0
Balance, end of period	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	0	$	(120)	$	(120)


Three Months Ended June 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate					Foreign Currency Swaps		Total
Balance, beginning of period	$	188	$	298	$	23	$	245	$	82		$	(146)	$	690
Net investment gains (losses) included in earnings	0		0		0		0		0			(20)		(20)
Unrealized gains (losses) included in other comprehensive income (loss)	1		0		0		1		0			(2)		0
Purchases, issuances, sales and settlements:
Purchases	0		13		1		12		5			0		31
Issuances	0		0		0		0		0			0		0
Sales	0		0		0		0		(1)			0		(1)
Settlements	(1)		(4)		0		0		0			0		(5)
Transfers into Level 3	0		15		0		0		0			0		15
Transfers out of Level 3	0		0		0		(15)		0			0		(15)
Balance, end of period	$	188	$	322	$	24	$	243	$	86		$	(168)	$	695
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0		$	(20)	$	(20)


Six Months Ended June 30, 2021
	Fixed Maturity Securities										Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
Net investment gains (losses) included in earnings	0		0		0		0		0		22		(101)		(79)
Unrealized gains (losses) included in other comprehensive income (loss)	(15)		(10)		(3)		(1)		2		0		(1)		(28)
Purchases, issuances, sales and settlements:
Purchases	64		78		0		15		0		17		0		174
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		0		0		(23)
Settlements	0		(10)		0		0		(17)		0		0		(27)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(15)		0		0		0		0		0		0		(15)
Balance, end of period	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	0	$	(101)	$	(101)


Six Months Ended June 30, 2020
	Fixed Maturity Securities								Equity Securities		Derivatives
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Banks/ Financial Institutions		Other Corporate				Foreign Currency Swaps		Total
Balance, beginning of period	$	178	$	224	$	23	$	262	$	80	$	43	$	810
Net investment gains (losses) included in earnings	0		0		0		0		0		(205)		(205)
Unrealized gains (losses) included in other comprehensive income (loss)	2		(9)		0		(16)		0		(6)		(29)
Purchases, issuances, sales and settlements:
Purchases	0		96		1		12		7		0		116
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		(1)		0		(1)
Settlements	(1)		(4)		0		0		0		0		(5)
Transfers into Level 3	9		15		0		0		0		0		24
Transfers out of Level 3	0		0		0		(15)		0		0		(15)
Balance, end of period	$	188	$	322	$	24	$	243	$	86	$	(168)	$	695
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	0	$	0	$	0	$	0	$	(205)	$	(205)

Fair Value Measurement Inputs and Valuation Techniques

Level 3 Significant Unobservable Input Sensitivity

The following tables summarize the significant unobservable inputs used in the valuation of the Company's Level 3 investments and derivatives carried at fair value. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

June 30, 2021

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

258

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

480

Discounted cash flow

Credit spreads

N/A

(a)

Sovereign and supranational

Discounted cash flow

Historical volatility

N/A

(a)

Banks/financial institutions

Consensus pricing

Offered quotes

N/A

(a)

Other corporate

316

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

158

Net asset value

Offered quotes

N/A

(a)

Other assets:

Foreign currency swaps

Discounted cash flow

Interest rates (USD)

1.44%

1.77%

(b)

Interest rates (JPY)

.09%

.50%

(c)

CDS spreads

21 bps

118 bps

Discounted cash flow

Interest rates (USD)

1.44%

1.77%

(b)

Interest rates (JPY)

.09%

.50%

(c)

Total assets

1,405

Liabilities:

Other liabilities:

Foreign currency swaps

170

Discounted cash flow

Interest rates (USD)

1.44%

1.77%

(b)

Interest rates (JPY)

.09%

.50%

(c)

CDS spreads

15 bps

174 bps

140

Discounted cash flow

Interest rates (USD)

1.44%

1.77%

(b)

Interest rates (JPY)

.09%

.50%

(c)

Total liabilities

310

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps

December 31, 2020

(In millions)

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Assets:

Securities available for sale, carried at fair value:

Fixed maturity securities:

Mortgage- and asset-backed securities

224

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

422

Discounted cash flow

Credit spreads

N/A

(a)

Sovereign and supranational

Discounted cash flow

Historical volatility

N/A

(a)

Banks/financial institutions

Consensus pricing

Offered quotes

N/A

(a)

Other corporate

299

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

102

Net asset value

Offered quotes

N/A

(a)

Other assets:

Foreign currency swaps

Discounted cash flow

Interest rates (USD)

.93%

1.40%

(b)

Interest rates (JPY)

.05%

.43%

(c)

CDS spreads

22 bps

128 bps

Discounted cash flow

Interest rates (USD)

.93%

1.40%

(b)

Interest rates (JPY)

.05%

.43%

(c)

Total assets

1,252

Liabilities:

Other liabilities:

Foreign currency swaps

160

Discounted cash flow

Interest rates (USD)

.93%

1.12%

(b)

Interest rates (JPY)

.05%

.35%

(c)

CDS spreads

41 bps

140 bps

Discounted cash flow

Interest rates (USD)

.93%

1.12%

(b)

Interest rates (JPY)

.05%

.35%

(c)

Total liabilities

231

(a) N/A represents securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques or unobservable inputs.

(b) Inputs derived from U.S. long-term rates to accommodate long maturity nature of the Company's swaps