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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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.


	June 30, 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		$	23,022		$	931		$	0		$	23,953
Municipalities		0			2,323			0			2,323
Mortgage- and asset-backed securities		0			2,203			652			2,855
Public utilities		0			7,267			302			7,569
Sovereign and supranational		0			642			32			674
Banks/financial institutions		0			8,780			69			8,849
Other corporate		0			27,710			572			28,282
Total fixed maturity securities		23,022			49,856			1,627			74,505
Equity securities		752			0			213			965
Other investments		2,706			0			0			2,706
Cash and cash equivalents		4,720			0			0			4,720
Other assets:
Foreign currency swaps		0			107			0			107
Foreign currency forwards		0			552			0			552
Foreign currency options		0			0			0			0
Interest rate swaps		0			9			0			9


Total other assets		0			668			0			668
Total assets		$	31,200		$	50,524		$	1,840		$	83,564
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	450		$	0		$	450
Foreign currency forwards		0			440			0			440

Interest rate swaps		0			591			0			591


Total liabilities		$	0		$	1,481		$	0		$	1,481


	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.


	June 30, 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		$	16,715		$	18,932		$	170		$	0		$	19,102
Municipalities		261			0			314			0			314

Public utilities		35			0			39			0			39
Sovereign and supranational		408			0			462			0			462

Other corporate		17			0			21			0			21
Commercial mortgage and other loans		13,346			0			0			13,014			13,014
Other investments (1)		32			0			32			0			32
Total assets		$	30,814		$	18,932		$	1,038		$	13,014		$	32,984
Liabilities:
Other policyholders’ funds		$	6,115		$	0		$	0		$	6,020		$	6,020
Notes payable (excluding leases)		6,941			0			5,887			735			6,622
Total liabilities		$	13,056		$	0		$	5,887		$	6,755		$	12,642

(1) Excludes policy loans of $202 and equity method investments of $2,551, 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.


	June 30, 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		$	23,022		$	572		$	0		$	23,594
Internal		0			359			0			359

Total government and agencies		23,022			931			0			23,953
Municipalities:
Third party pricing vendor		0			2,030			0			2,030
Internal		0			293			0			293

Total municipalities		0			2,323			0			2,323
Mortgage- and asset-backed securities:
Third party pricing vendor		0			2,193			0			2,193
Internal		0			10			82			92
Broker/other		0			0			570			570
Total mortgage- and asset-backed securities		0			2,203			652			2,855
Public utilities:
Third party pricing vendor		0			3,778			0			3,778
Internal		0			3,460			0			3,460
Broker/other		0			29			302			331
Total public utilities		0			7,267			302			7,569
Sovereign and supranational:
Third party pricing vendor		0			215			0			215
Internal		0			427			0			427
Broker/other		0			0			32			32
Total sovereign and supranational		0			642			32			674
Banks/financial institutions:
Third party pricing vendor		0			4,502			0			4,502
Internal		0			4,278			63			4,341
Broker/other		0			0			6			6
Total banks/financial institutions		0			8,780			69			8,849
Other corporate:
Third party pricing vendor		0			22,151			0			22,151
Internal		0			5,460			204			5,664
Broker/other		0			99			368			467
Total other corporate		0			27,710			572			28,282
Total securities available for sale		$	23,022		$	49,856		$	1,627		$	74,505
Equity securities, carried at fair value:
Third party pricing vendor		$	752		$	0		$	0		$	752

Broker/other		0			0			213			213
Total equity securities		$	752		$	0		$	213		$	965


	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


	June 30, 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		$	18,932		$	170		$	0		$	19,102

Total government and agencies		18,932			170			0			19,102
Municipalities:
Third party pricing vendor		0			314			0			314

Total municipalities		0			314			0			314




Public utilities:
Third party pricing vendor		0			39			0			39


Total public utilities		0			39			0			39
Sovereign and supranational:
Third party pricing vendor		0			229			0			229
Internal		0			233			0			233

Total sovereign and supranational		0			462			0			462




Other corporate:
Third party pricing vendor		0			21			0			21


Total other corporate		0			21			0			21
Total securities held to maturity		$	18,932		$	1,006		$	0		$	19,938


	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 June 30, 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	$	418	$	350	$	37	$	161	$	753	$	221	$	1,940
Net investment gains (losses) included in earnings	0		0		0		0		0		(8)		(8)
Unrealized gains (losses) included in other comprehensive income (loss)	(13)		(16)		(3)		2		(22)		0		(52)
Purchases, issuances, sales and settlements:
Purchases	136		0		0		0		37		0		173
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(13)		(2)		(2)		(7)		(1)		0		(25)
Transfers into Level 3	124		0		0		0		0		0		124
Transfers out of Level 3	0		(30)		0		(87)		(195)		0		(312)
Balance, end of period	$	652	$	302	$	32	$	69	$	572	$	213	$	1,840
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	$	(8)	$	(8)


Three Months Ended June 30, 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	$	318	$	585	$	41	$	60	$	290	$	166	$	1,460
Net investment gains (losses) included in earnings	0		1		0		0		0		(6)		(5)
Unrealized gains (losses) included in other comprehensive income (loss)	(54)		(44)		(5)		(2)		(37)		0		(142)
Purchases, issuances, sales and settlements:
Purchases	90		19		0		33		122		33		297
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(36)		(24)		0		0		(1)		0		(61)
Transfers into Level 3	0		0		0		0		258		0		258
Transfers out of Level 3	(7)		0		0		0		0		(3)		(10)
Balance, end of period	$	311	$	537	$	36	$	91	$	632	$	190	$	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)	$	(6)


Six Months Ended June 30, 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		(6)		(6)
Unrealized gains (losses) included in other comprehensive income (loss)	(10)		(6)		(3)		4		8		0		(7)
Purchases, issuances, sales and settlements:
Purchases	328		0		0		0		112		10		450
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(133)		(9)		(2)		(7)		(3)		0		(154)
Transfers into Level 3	124		18		0		0		0		0		142
Transfers out of Level 3	0		(198)		0		(87)		(287)		0		(572)
Balance, end of period	$	652	$	302	$	32	$	69	$	572	$	213	$	1,840
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	$	(5)	$	(5)


Six Months Ended June 30, 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		1		0		0		0		1		2
Unrealized gains (losses) included in other comprehensive income (loss)	(69)		(81)		(7)		(2)		(55)		0		(214)
Purchases, issuances, sales and settlements:
Purchases	166		28		0		33		122		43		392
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(38)		(32)		0		(3)		(2)		(7)		(82)
Transfers into Level 3	0		128		0		18		282		0		428
Transfers out of Level 3	(39)		0		0		0		(141)		(20)		(200)
Balance, end of period	$	311	$	537	$	36	$	91	$	632	$	190	$	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)	$	(1)

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, 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

652

Consensus pricing

Offered quotes

81.82

107.45

(a)

98.37

Public utilities

302

Discounted cash flow

Credit spreads

160 bps

298 bps

(b)

213 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(c)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(c)

N/A

Other corporate

572

Discounted cash flow

Credit spreads

67 bps

294 bps

(b)

196 bps

Equity securities

213

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

1,840

(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