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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 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 as of December 31.


	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		$	32,532		$	1,288		$	0		$	33,820
Municipalities		0			3,036			0			3,036
Mortgage- and asset-backed securities		0			955			291			1,246
Public utilities		0			9,558			493			10,051
Sovereign and supranational		0			1,072			43			1,115
Banks/financial institutions		0			11,546			45			11,591
Other corporate		0			37,411			426			37,837
Total fixed maturity securities		32,532			64,866			1,298			98,696
Equity securities		1,340			90			173			1,603
Other investments		1,726			0			0			1,726
Cash and cash equivalents		5,051			0			0			5,051
Other assets:
Foreign currency swaps		0			137			0			137
Foreign currency forwards		0			791			0			791
Foreign currency options		0			8			0			8



Total other assets		0			936			0			936
Total assets		$	40,649		$	65,892		$	1,471		$	108,012
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	427		$	0		$	427
Foreign currency forwards		0			1,138			0			1,138


Interest rate swaps		0			54			0			54

Total liabilities		$	0		$	1,619		$	0		$	1,619


	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 as of December 31.


	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		$	21,086		$	25,469		$	230		$	0		$	25,699
Municipalities		335			0			436			0			436

Public utilities		43			0			55			0			55
Sovereign and supranational		514			0			650			0			650

Other corporate		22			0			29			0			29
Commercial mortgage and other loans		11,786			0			0			11,996			11,996
Other investments (1)		22			0			22			0			22
Total assets		$	33,808		$	25,469		$	1,422		$	11,996		$	38,887
Liabilities:
Other policyholders’ funds		$	7,072		$	0		$	0		$	6,957		$	6,957
Notes payable (excluding leases)		7,839			0			8,280			259			8,539
Total liabilities		$	14,911		$	0		$	8,280		$	7,216		$	15,496

(1) Excludes policy loans of $236 and equity method investments of $1,858, at carrying value


				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 as of December 31.


	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		$	32,532		$	808		$	0		$	33,340
Internal		0			480			0			480
Total government and agencies		32,532			1,288			0			33,820
Municipalities:
Third party pricing vendor		0			2,222			0			2,222
Internal		0			814			0			814
Total municipalities		0			3,036			0			3,036
Mortgage- and asset-backed securities:
Third party pricing vendor		0			955			0			955
Broker/other		0			0			291			291
Total mortgage- and asset-backed securities		0			955			291			1,246
Public utilities:
Third party pricing vendor		0			4,527			0			4,527
Internal		0			5,031			0			5,031
Broker/other		0			0			493			493
Total public utilities		0			9,558			493			10,051
Sovereign and supranational:
Third party pricing vendor		0			273			0			273
Internal		0			799			0			799
Broker/other		0			0			43			43
Total sovereign and supranational		0			1,072			43			1,115
Banks/financial institutions:
Third party pricing vendor		0			5,237			0			5,237
Internal		0			6,309			0			6,309
Broker/other		0			0			45			45
Total banks/financial institutions		0			11,546			45			11,591
Other corporate:
Third party pricing vendor		0			29,495			0			29,495
Internal		0			7,916			0			7,916
Broker/other		0			0			426			426
Total other corporate		0			37,411			426			37,837
Total securities available for sale		$	32,532		$	64,866		$	1,298		$	98,696
Equity securities, carried at fair value:
Third party pricing vendor		$	1,340		$	90		$	0		$	1,430
Broker/other		0			0			173			173
Total equity securities		$	1,340		$	90		$	173		$	1,603


	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


	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		$	25,469		$	230		$	0		$	25,699
Total government and agencies		25,469			230			0			25,699
Municipalities:
Third party pricing vendor		0			436			0			436
Total municipalities		0			436			0			436




Public utilities:
Third party pricing vendor		0			55			0			55
Total public utilities		0			55			0			55
Sovereign and supranational:
Third party pricing vendor		0			313			0			313
Broker/other		0			337			0			337
Total sovereign and supranational		0			650			0			650



Other corporate:
Third party pricing vendor		0			29			0			29
Total other corporate		0			29			0			29
Total securities held to maturity		$	25,469		$	1,400		$	0		$	26,869


	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 as of December 31. Derivative assets and liabilities are presented as a net value.


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)	(25)		(21)		(5)		(2)		(11)		0		(1)		(65)
Purchases, issuances, sales and settlements:
Purchases	169		167		0		23		90		41		0		490
Issuances	0		0		0		0		0		17		0		17
Sales	0		(2)		(23)		0		0		(8)		0		(33)
Settlements	0		(21)		0		0		(17)		0		0		(38)
Transfers into Level 3	0		0		23		0		84		0		0		107
Transfers out of Level 3	(77)		(52)		0		0		(21)		0		257		107
Balance, end of period	$	291	$	493	$	43	$	45	$	426	$	173	$	0	$	1,471
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	(24)	$	(23)	$	(4)	$	(2)	$	(27)	$	21	$	(158)	$	(217)


2020
	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	$	178	$	224	$	0	$	23	$	262	$	80	$	43	$	810
Net investment gains (losses) included in earnings	0		(1)		0		0		0		16		(139)		(124)
Unrealized gains (losses) included in other comprehensive income (loss)	9		19		0		0		12		0		(2)		38
Purchases, issuances, sales and settlements:
Purchases	30		174		48		1		39		14		0		306
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		(6)		0		(6)
Settlements	(2)		(9)		0		0		(1)		0		0		(12)
Transfers into Level 3	9		15		0		0		2		0		0		26
Transfers out of Level 3	0		0		0		0		(15)		(2)		0		(17)
Balance, end of period	$	224	$	422	$	48	$	24	$	299	$	102	$	(98)	$	1,021
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	$	(139)	$	(139)

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 as of December 31. Included in the tables are the inputs or range of possible inputs that have an effect on the overall valuation of the financial instruments.

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

291

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

493

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

426

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

173

Net asset value

Offered quotes

N/A

(a)

Total assets

1,471

(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.

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

^[1]

[1]	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.