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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022
(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		$	24,960		$	999		$	0		$	25,959
Municipalities		0			2,468			0			2,468
Mortgage- and asset-backed securities		0			1,641			311			1,952
Public utilities		0			7,420			537			7,957
Sovereign and supranational		0			877			36			913
Banks/financial institutions		0			9,534			91			9,625
Other corporate		0			29,925			632			30,557
Total fixed maturity securities		24,960			52,864			1,607			79,431
Equity securities		888			71			190			1,149
Other investments		1,695			0			0			1,695
Cash and cash equivalents		5,173			0			0			5,173
Other assets:
Foreign currency swaps		0			221			0			221
Foreign currency forwards		0			1,330			0			1,330
Foreign currency options		0			7			0			7



Total other assets		0			1,558			0			1,558
Total assets		$	32,716		$	54,493		$	1,797		$	89,006
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	457		$	0		$	457
Foreign currency forwards		0			1,331			0			1,331

Interest rate swaps		0			342			0			342


Total liabilities		$	0		$	2,130		$	0		$	2,130


	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

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, 2022
(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		$	17,740		$	20,422		$	184		$	0		$	20,606
Municipalities		280			0			346			0			346

Public utilities		37			0			43			0			43
Sovereign and supranational		432			0			514			0			514

Other corporate		18			0			23			0			23
Commercial mortgage and other loans		13,053			0			0			12,905			12,905
Other investments (1)		30			0			30			0			30
Total assets		$	31,590		$	20,422		$	1,140		$	12,905		$	34,467
Liabilities:
Other policyholders’ funds		$	5,984		$	0		$	0		$	5,885		$	5,885
Notes payable (excluding leases)		7,279			0			6,868			218			7,086
Total liabilities		$	13,263		$	0		$	6,868		$	6,103		$	12,971

(1) Excludes policy loans of $204 and equity method investments of $2,173, at carrying value


	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

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, 2022
(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		$	24,960		$	621		$	0		$	25,581
Internal		0			378			0			378

Total government and agencies		24,960			999			0			25,959
Municipalities:
Third party pricing vendor		0			2,140			0			2,140
Internal		0			328			0			328

Total municipalities		0			2,468			0			2,468
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,636			0			1,636
Internal		0			3			0			3
Broker/other		0			2			311			313
Total mortgage- and asset-backed securities		0			1,641			311			1,952
Public utilities:
Third party pricing vendor		0			4,022			0			4,022
Internal		0			3,398			0			3,398
Broker/other		0			0			537			537
Total public utilities		0			7,420			537			7,957
Sovereign and supranational:
Third party pricing vendor		0			306			0			306
Internal		0			571			0			571
Broker/other		0			0			36			36
Total sovereign and supranational		0			877			36			913
Banks/financial institutions:
Third party pricing vendor		0			4,975			0			4,975
Internal		0			4,559			16			4,575
Broker/other		0			0			75			75
Total banks/financial institutions		0			9,534			91			9,625
Other corporate:
Third party pricing vendor		0			24,306			0			24,306
Internal		0			5,546			133			5,679
Broker/other		0			73			499			572
Total other corporate		0			29,925			632			30,557
Total securities available for sale		$	24,960		$	52,864		$	1,607		$	79,431
Equity securities, carried at fair value:
Third party pricing vendor		$	888		$	71		$	0		$	959

Broker/other		0			0			190			190
Total equity securities		$	888		$	71		$	190		$	1,149


	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

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


	June 30, 2022
(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		$	20,422		$	184		$	0		$	20,606

Total government and agencies		20,422			184			0			20,606
Municipalities:
Third party pricing vendor		0			346			0			346

Total municipalities		0			346			0			346




Public utilities:
Third party pricing vendor		0			43			0			43


Total public utilities		0			43			0			43
Sovereign and supranational:
Third party pricing vendor		0			248			0			248

Broker/other		0			266			0			266
Total sovereign and supranational		0			514			0			514




Other corporate:
Third party pricing vendor		0			23			0			23


Total other corporate		0			23			0			23
Total securities held to maturity		$	20,422		$	1,110		$	0		$	21,532


	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 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

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, 2022
	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	$	318	$	585	$	41	$	60	$	290	$	166	$	0	$	1,460
Net investment gains (losses) included in earnings	0		1		0		0		0		(6)		0		(5)
Unrealized gains (losses) included in other comprehensive income (loss)	(54)		(44)		(5)		(2)		(37)		0		0		(142)
Purchases, issuances, sales and settlements:
Purchases	90		19		0		33		122		33		0		297
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0		0
Settlements	(36)		(24)		0		0		(1)		0		0		(61)
Transfers into Level 3	0		0		0		0		258		0		0		258
Transfers out of Level 3	(7)		0		0		0		0		(3)		0		(10)
Balance, end of period	$	311	$	537	$	36	$	91	$	632	$	190	$	0	$	1,797
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	$	(6)	$	0	$	(6)


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)


Six Months Ended June 30, 2022
	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	$	291	$	493	$	43	$	45	$	426	$	173	$	0	$	1,471
Net investment gains (losses) included in earnings	0		1		0		0		0		1		0		2
Unrealized gains (losses) included in other comprehensive income (loss)	(69)		(81)		(7)		(2)		(55)		0		0		(214)
Purchases, issuances, sales and settlements:
Purchases	166		28		0		33		122		43		0		392
Issuances	0		0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0		0
Settlements	(38)		(32)		0		(3)		(2)		(7)		0		(82)
Transfers into Level 3	0		128		0		18		282		0		0		428
Transfers out of Level 3	(39)		0		0		0		(141)		(20)		0		(200)
Balance, end of period	$	311	$	537	$	36	$	91	$	632	$	190	$	0	$	1,797
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	0	$	1	$	0	$	0	$	0	$	(2)	$	0	$	(1)


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)

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 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, 2022

(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

311

Consensus pricing

Offered quotes

N/A

(a)

Public utilities

537

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

632

Discounted cash flow

Credit spreads

N/A

(a)

Equity securities

190

Net asset value

Offered quotes

N/A

(a)

Total assets

1,797

(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.

December 31, 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.