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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

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.


	March 31, 2023
(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		$	24,903		$	990		$	0		$	25,893
Municipalities		0			2,416			0			2,416
Mortgage- and asset-backed securities		0			2,149			418			2,567
Public utilities		0			7,583			350			7,933
Sovereign and supranational		0			691			37			728
Banks/financial institutions		0			9,259			161			9,420
Other corporate		0			28,389			753			29,142
Total fixed maturity securities		24,903			51,477			1,719			78,099
Equity securities		806			60			221			1,087
Other investments		2,561			0			0			2,561
Cash and cash equivalents		3,809			0			0			3,809
Other assets:
Foreign currency swaps		0			118			0			118
Foreign currency forwards		0			359			0			359
Foreign currency options		0			46			0			46
Interest rate swaps		0			26			0			26


Total other assets		0			549			0			549
Total assets		$	32,079		$	52,086		$	1,940		$	86,105
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	399		$	0		$	399
Foreign currency forwards		0			176			0			176

Interest rate swaps		0			483			0			483


Total liabilities		$	0		$	1,058		$	0		$	1,058


	December 31, 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		$	24,158		$	956		$	0		$	25,114
Municipalities		0			2,320			0			2,320
Mortgage- and asset-backed securities		0			1,803			343			2,146
Public utilities		0			7,169			497			7,666
Sovereign and supranational		0			797			37			834
Banks/financial institutions		0			9,140			159			9,299
Other corporate		0			27,620			742			28,362
Total fixed maturity securities		24,158			49,805			1,778			75,741
Equity securities		822			60			209			1,091
Other investments		1,532			0			0			1,532
Cash and cash equivalents		3,943			0			0			3,943
Other assets:
Foreign currency swaps		0			128			0			128
Foreign currency forwards		0			400			0			400
Foreign currency options		0			82			0			82
Interest rate swaps		0			7			0			7
Total other assets		0			617			0			617
Total assets		$	30,455		$	50,482		$	1,987		$	82,924
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	390		$	0		$	390
Foreign currency forwards		0			725			0			725
Interest rate swaps		0			583			0			583


Total liabilities		$	0		$	1,698		$	0		$	1,698

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.


	March 31, 2023
(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		$	18,152		$	20,517		$	183		$	0		$	20,700
Municipalities		285			0			341			0			341

Public utilities		37			0			42			0			42
Sovereign and supranational		443			0			510			0			510

Other corporate		19			0			23			0			23
Commercial mortgage and other loans		13,328			0			0			13,052			13,052
Other investments (1)		34			0			34			0			34
Total assets		$	32,298		$	20,517		$	1,133		$	13,052		$	34,702
Liabilities:
Other policyholders’ funds		$	6,668		$	0		$	0		$	6,569		$	6,569
Notes payable (excluding leases)		7,270			0			6,175			797			6,972
Total liabilities		$	13,938		$	0		$	6,175		$	7,366		$	13,541

(1) Excludes policy loans of $214 and equity method investments of $2,432, at carrying value


	December 31, 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		$	18,267		$	20,132		$	180		$	0		$	20,312
Municipalities		287			0			335			0			335

Public utilities		37			0			41			0			41
Sovereign and supranational		446			0			500			0			500

Other corporate		19			0			22			0			22
Commercial mortgage and other loans		13,496			0			0			13,212			13,212
Other investments (1)		34			0			34			0			34
Total assets		$	32,586		$	20,132		$	1,112		$	13,212		$	34,456
Liabilities:
Other policyholders’ funds		$	6,643		$	0		$	0		$	6,543		$	6,543
Notes payable (excluding leases)		7,295			0			6,024			802			6,826
Total liabilities		$	13,938		$	0		$	6,024		$	7,345		$	13,369

(1) Excludes policy loans of $214 and equity method investments of $2,290, at carrying value

Prior-year amounts have been adjusted for the adoption of accounting guidance on January 1, 2023 related to accounting for long-duration insurance contracts.

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.


	March 31, 2023
(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		$	24,903		$	610		$	0		$	25,513
Internal		0			380			0			380

Total government and agencies		24,903			990			0			25,893
Municipalities:
Third party pricing vendor		0			2,108			0			2,108
Internal		0			308			0			308
Broker/other		0			0			0			0
Total municipalities		0			2,416			0			2,416
Mortgage- and asset-backed securities:
Third party pricing vendor		0			2,038			0			2,038
Internal		0			53			0			53
Broker/other		0			58			418			476
Total mortgage- and asset-backed securities		0			2,149			418			2,567
Public utilities:
Third party pricing vendor		0			3,898			0			3,898
Internal		0			3,685			0			3,685
Broker/other		0			0			350			350
Total public utilities		0			7,583			350			7,933
Sovereign and supranational:
Third party pricing vendor		0			232			0			232
Internal		0			459			0			459
Broker/other		0			0			37			37
Total sovereign and supranational		0			691			37			728
Banks/financial institutions:
Third party pricing vendor		0			4,690			0			4,690
Internal		0			4,569			108			4,677
Broker/other		0			0			53			53
Total banks/financial institutions		0			9,259			161			9,420
Other corporate:
Third party pricing vendor		0			22,726			0			22,726
Internal		0			5,663			289			5,952
Broker/other		0			0			464			464
Total other corporate		0			28,389			753			29,142
Total securities available for sale		$	24,903		$	51,477		$	1,719		$	78,099
Equity securities, carried at fair value:
Third party pricing vendor		$	806		$	60		$	0		$	866

Broker/other		0			0			221			221
Total equity securities		$	806		$	60		$	221		$	1,087


	December 31, 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		$	24,158		$	582		$	0		$	24,740
Internal		0			374			0			374
Total government and agencies		24,158			956			0			25,114
Municipalities:
Third party pricing vendor		0			2,021			0			2,021
Internal		0			299			0			299
Total municipalities		0			2,320			0			2,320
Mortgage- and asset-backed securities:
Third party pricing vendor		0			1,798			0			1,798
Internal		0			3			0			3
Broker/other		0			2			343			345
Total mortgage- and asset-backed securities		0			1,803			343			2,146
Public utilities:
Third party pricing vendor		0			3,786			0			3,786
Internal		0			3,383			0			3,383
Broker/other		0			0			497			497
Total public utilities		0			7,169			497			7,666
Sovereign and supranational:
Third party pricing vendor		0			232			0			232
Internal		0			565			0			565
Broker/other		0			0			37			37
Total sovereign and supranational		0			797			37			834
Banks/financial institutions:
Third party pricing vendor		0			4,622			0			4,622
Internal		0			4,518			105			4,623
Broker/other		0			0			54			54
Total banks/financial institutions		0			9,140			159			9,299
Other corporate:
Third party pricing vendor		0			22,268			0			22,268
Internal		0			5,352			200			5,552
Broker/other		0			0			542			542
Total other corporate		0			27,620			742			28,362
Total securities available for sale		$	24,158		$	49,805		$	1,778		$	75,741
Equity securities, carried at fair value:
Third party pricing vendor		$	822		$	60		$	0		$	882
Broker/other		0			0			209			209
Total equity securities		$	822		$	60		$	209		$	1,091

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


	March 31, 2023
(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		$	20,517		$	183		$	0		$	20,700

Total government and agencies		20,517			183			0			20,700
Municipalities:
Third party pricing vendor		0			341			0			341

Total municipalities		0			341			0			341




Public utilities:
Third party pricing vendor		0			42			0			42


Total public utilities		0			42			0			42
Sovereign and supranational:
Third party pricing vendor		0			246			0			246

Broker/other		0			264			0			264
Total sovereign and supranational		0			510			0			510




Other corporate:
Third party pricing vendor		0			23			0			23


Total other corporate		0			23			0			23
Total securities held to maturity		$	20,517		$	1,099		$	0		$	21,616


	December 31, 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		$	20,132		$	180		$	0		$	20,312
Total government and agencies		20,132			180			0			20,312
Municipalities:
Third party pricing vendor		0			335			0			335
Total municipalities		0			335			0			335




Public utilities:
Third party pricing vendor		0			41			0			41
Total public utilities		0			41			0			41
Sovereign and supranational:
Third party pricing vendor		0			242			0			242
Broker/other		0			258			0			258
Total sovereign and supranational		0			500			0			500



Other corporate:
Third party pricing vendor		0			22			0			22

Total other corporate		0			22			0			22
Total securities held to maturity		$	20,132		$	1,078		$	0		$	21,210

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

The following tables present the changes in fair value of the Company's investments carried at fair value classified as Level 3.


Three Months Ended March 31, 2023
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	343	$	497	$	37	$	159	$	742	$	209	$	1,987
Net investment gains (losses) included in earnings	0		0		0		0		0		2		2
Unrealized gains (losses) included in other comprehensive income (loss)	3		10		0		2		30		0		45
Purchases, issuances, sales and settlements:
Purchases	192		0		0		0		75		10		277
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(120)		(7)		0		0		(2)		0		(129)
Transfers into Level 3	0		18		0		0		0		0		18
Transfers out of Level 3	0		(168)		0		0		(92)		0		(260)
Balance, end of period	$	418	$	350	$	37	$	161	$	753	$	221	$	1,940
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	$	3	$	3


Three Months Ended March 31, 2022
	Fixed Maturity Securities										Equity Securities
(In millions)	Mortgage- and Asset- Backed Securities		Public Utilities		Sovereign and Supranational		Banks/ Financial Institutions		Other Corporate				Total
Balance, beginning of period	$	291	$	493	$	43	$	45	$	426	$	173	$	1,471
Net investment gains (losses) included in earnings	0		0		0		0		0		7		7
Unrealized gains (losses) included in other comprehensive income (loss)	(15)		(37)		(2)		0		(18)		0		(72)
Purchases, issuances, sales and settlements:
Purchases	76		9		0		0		0		10		95
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(2)		(8)		0		(3)		(1)		(7)		(21)
Transfers into Level 3	0		128		0		18		24		0		170
Transfers out of Level 3	(32)		0		0		0		(141)		(17)		(190)
Balance, end of period	$	318	$	585	$	41	$	60	$	290	$	166	$	1,460
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	$	4	$	4

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.

March 31, 2023

(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

418

Consensus pricing

Offered quotes

82.69

107.62

(a)

100.39

Public utilities

350

Discounted cash flow

Credit spreads

170 bps

268 bps

(b)

206 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(c)

N/A

Banks/financial institutions

161

Discounted cash flow

Credit spreads

67 bps

188 bps

(b)

111 bps

Other corporate

753

Discounted cash flow

Credit spreads

66 bps

295 bps

(b)

187 bps

Equity securities

221

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

1,940

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques.

(b) Actual or equivalent credit spreads in basis points.

(d) Prices do not utilize credit spreads; therefore, range is not applicable.

December 31, 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

343

Consensus pricing

Offered quotes

97.38

106.71

(a)

102.98

Public utilities

497

Discounted cash flow

Credit spreads

128 bps

286 bps

(b)

192 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(c)

N/A

Banks/financial institutions

159

Discounted cash flow

Credit spreads

67 bps

188 bps

(b)

113 bps

Other corporate

742

Discounted cash flow

Credit spreads

66 bps

647 bps

(b)

191 bps

Equity securities

209

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

1,987

(a) Represents prices for securities where the Company receives unadjusted broker quotes and for which there is no transparency into the providers' valuation techniques.

(b) Actual or equivalent credit spreads in basis points.

(d) Prices do not utilize credit spreads; therefore, range is not applicable