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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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.


	September 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		$	33,903		$	1,323		$	0		$	35,226
Municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities		0			9,792			523			10,315
Sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions		0			11,696			46			11,742
Other corporate		0			37,762			306			38,068
Total fixed maturity securities		33,903			65,649			1,170			100,722
Equity securities		1,210			90			161			1,461
Other investments		1,833			0			0			1,833
Cash and cash equivalents		6,208			0			0			6,208
Other assets:
Foreign currency swaps		0			52			99			151
Foreign currency forwards		0			593			0			593
Foreign currency options		0			1			0			1



Total other assets		0			646			99			745
Total assets		$	43,154		$	66,385		$	1,430		$	110,969
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	22		$	356		$	378
Foreign currency forwards		0			875			0			875

Interest rate swaps		0			16			0			16
Forward bond purchase commitment		0			1			0			1

Total liabilities		$	0		$	914		$	356		$	1,270


	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.


	September 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		$	21,673		$	26,304		$	237		$	0		$	26,541
Municipalities		346			0			453			0			453

Public utilities		44			0			57			0			57
Sovereign and supranational		528			0			667			0			667

Other corporate		22			0			30			0			30
Commercial mortgage and other loans		11,388			0			0			11,596			11,596
Other investments (1)		19			0			19			0			19
Total assets		$	34,020		$	26,304		$	1,463		$	11,596		$	39,363
Liabilities:
Other policyholders’ funds		$	7,286		$	0		$	0		$	7,175		$	7,175
Notes payable (excluding leases)		7,937			0			8,416			266			8,682
Total liabilities		$	15,223		$	0		$	8,416		$	7,441		$	15,857

(1) Excludes policy loans of $241 and equity method investments of $1,519, 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.


	September 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		$	33,903		$	831		$	0		$	34,734
Internal		0			492			0			492

Total government and agencies		33,903			1,323			0			35,226
Municipalities:
Third party pricing vendor		0			2,114			0			2,114
Internal		0			823			0			823

Total municipalities		0			2,937			0			2,937
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,021			0			1,021

Broker/other		0			21			250			271
Total mortgage- and asset-backed securities		0			1,042			250			1,292
Public utilities:
Third party pricing vendor		0			4,628			0			4,628
Internal		0			5,163			0			5,163
Broker/other		0			1			523			524
Total public utilities		0			9,792			523			10,315
Sovereign and supranational:
Third party pricing vendor		0			279			0			279
Internal		0			818			0			818
Broker/other		0			0			45			45
Total sovereign and supranational		0			1,097			45			1,142
Banks/financial institutions:
Third party pricing vendor		0			5,191			0			5,191
Internal		0			6,505			0			6,505
Broker/other		0			0			46			46
Total banks/financial institutions		0			11,696			46			11,742
Other corporate:
Third party pricing vendor		0			29,601			0			29,601
Internal		0			8,155			0			8,155
Broker/other		0			6			306			312
Total other corporate		0			37,762			306			38,068
Total securities available for sale		$	33,903		$	65,649		$	1,170		$	100,722
Equity securities, carried at fair value:
Third party pricing vendor		$	1,210		$	90		$	0		$	1,300

Broker/other		0			0			161			161
Total equity securities		$	1,210		$	90		$	161		$	1,461


	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


	September 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		$	26,304		$	237		$	0		$	26,541

Total government and agencies		26,304			237			0			26,541
Municipalities:
Third party pricing vendor		0			453			0			453

Total municipalities		0			453			0			453




Public utilities:
Third party pricing vendor		0			57			0			57


Total public utilities		0			57			0			57
Sovereign and supranational:
Third party pricing vendor		0			322			0			322

Broker/other		0			345			0			345
Total sovereign and supranational		0			667			0			667




Other corporate:
Third party pricing vendor		0			30			0			30


Total other corporate		0			30			0			30
Total securities held to maturity		$	26,304		$	1,444		$	0		$	27,748


	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 September 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	$	258	$	480	$	45	$	38	$	316	$	158	$	(200)	$	1,095
Net investment gains (losses) included in earnings	0		0		0		0		2		(1)		(57)		(56)
Unrealized gains (losses) included in other comprehensive income (loss)	(4)		(3)		0		0		(7)		0		0		(14)
Purchases, issuances, sales and settlements:
Purchases	35		54		0		8		0		12		0		109
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		(8)		0		(8)
Settlements	0		(8)		0		0		0		0		0		(8)
Transfers into Level 3	0		0		0		0		0		0		0		0
Transfers out of Level 3	(39)		0		0		0		(5)		0		0		(44)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	(4)	$	(3)	$	0	$	0	$	(7)	$	(1)	$	(57)	$	(72)


Three Months Ended September 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	$	322	$	24	$	243	$	86		$	(168)	$	695
Net investment gains (losses) included in earnings	0		0		0		0		0			23		23
Unrealized gains (losses) included in other comprehensive income (loss)	3		15		0		24		0			2		44
Purchases, issuances, sales and settlements:
Purchases	0		33		0		1		5			0		39
Issuances	0		0		0		0		0			0		0
Sales	0		0		0		0		(5)			0		(5)
Settlements	0		(2)		0		0		0			0		(2)
Transfers into Level 3	0		0		0		0		0			0		0
Transfers out of Level 3	0		0		0		0		0			0		0
Balance, end of period	$	191	$	368	$	24	$	268	$	86		$	(143)	$	794
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		$	23	$	23


Nine Months Ended September 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		2		21		(158)		(135)
Unrealized gains (losses) included in other comprehensive income (loss)	(19)		(13)		(3)		(1)		(5)		0		(1)		(42)
Purchases, issuances, sales and settlements:
Purchases	99		132		0		23		0		29		0		283
Issuances	0		0		0		0		0		17		0		17
Sales	0		0		(23)		0		0		(8)		0		(31)
Settlements	0		(18)		0		0		(17)		0		0		(35)
Transfers into Level 3	0		0		23		0		32		0		0		55
Transfers out of Level 3	(54)		0		0		0		(5)		0		0		(59)
Balance, end of period	$	250	$	523	$	45	$	46	$	306	$	161	$	(257)	$	1,074
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	(19)	$	(13)	$	(3)	$	(1)	$	(5)	$	21	$	(158)	$	(178)


Nine Months Ended September 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		(184)		(184)
Unrealized gains (losses) included in other comprehensive income (loss)	5		6		0		8		0		(2)		17
Purchases, issuances, sales and settlements:
Purchases	0		129		1		13		12		0		155
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		(6)		0		(6)
Settlements	(1)		(6)		0		0		0		0		(7)
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	$	191	$	368	$	24	$	268	$	86	$	(143)	$	794
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	$	(184)	$	(184)

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.

September 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

250

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

523

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

306

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

161

Net asset value

Offered quotes

N/A

(a)

Other assets:

Foreign currency swaps

Discounted cash flow

Interest rates (USD)

1.51%

1.79%

(b)

Interest rates (JPY)

.11%

.53%

(c)

CDS spreads

23 bps

124 bps

Discounted cash flow

Interest rates (USD)

1.51%

1.79%

(b)

Interest rates (JPY)

.11%

.53%

(c)

Total assets

1,430

Liabilities:

Other liabilities:

Foreign currency swaps

167

Discounted cash flow

Interest rates (USD)

1.51%

1.79%

(b)

Interest rates (JPY)

.11%

.53%

(c)

CDS spreads

23 bps

182 bps

189

Discounted cash flow

Interest rates (USD)

1.51%

1.79%

(b)

Interest rates (JPY)

.11%

.53%

(c)

Total liabilities

356

(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