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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024
(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		$	19,976		$	838		$	0		$	20,814
Municipalities		0			2,210			0			2,210
Mortgage- and asset-backed securities		0			2,526			859			3,385
Public utilities		0			6,806			507			7,313
Sovereign and supranational		0			462			28			490
Banks/financial institutions		0			8,825			74			8,899
Other corporate		0			26,569			450			27,019
Total fixed maturity securities		19,976			48,236			1,918			70,130
Equity securities		603			0			159			762
Other investments		3,341			0			0			3,341
Cash and cash equivalents		5,098			0			0			5,098
Other assets:
Foreign currency swaps		0			81			0			81
Foreign currency forwards		0			202			0			202
Foreign currency options		0			38			0			38




Total other assets		0			321			0			321
Total assets		$	29,018		$	48,557		$	2,077		$	79,652
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	583		$	0		$	583

Foreign currency options		0			69			0			69
Interest rate swaps		0			483			0			483



Total liabilities		$	0		$	1,135		$	0		$	1,135


	December 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		$	21,700		$	900		$	0		$	22,600
Municipalities		0			2,298			0			2,298
Mortgage- and asset-backed securities		0			2,314			772			3,086
Public utilities		0			7,339			253			7,592
Sovereign and supranational		0			507			30			537
Banks/financial institutions		0			8,757			78			8,835
Other corporate		0			27,694			648			28,342
Total fixed maturity securities		21,700			49,809			1,781			73,290
Equity securities		840			0			248			1,088
Other investments		1,304			0			0			1,304
Cash and cash equivalents		4,306			0			0			4,306
Other assets:
Foreign currency swaps		0			86			0			86
Foreign currency forwards		0			238			0			238
Foreign currency options		0			2			0			2
Interest rate swaps		0			11			0			11
Total other assets		0			337			0			337
Total assets		$	28,150		$	50,146		$	2,029		$	80,325
Liabilities:
Other liabilities:
Foreign currency swaps		$	0		$	507		$	0		$	507
Foreign currency forwards		0			504			0			504
Interest rate swaps		0			419			0			419


Total liabilities		$	0		$	1,430		$	0		$	1,430

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, 2024
(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		$	16,000		$	17,319		$	155		$	0		$	17,474
Municipalities		248			0			285			0			285

Public utilities		33			0			36			0			36
Sovereign and supranational		391			0			431			0			431

Other corporate		17			0			19			0			19
Commercial mortgage and other loans		12,360			0			0			12,017			12,017
Other investments (1)		42			0			42			0			42
Total assets		$	29,091		$	17,319		$	968		$	12,017		$	30,304
Liabilities:
Other policyholders’ funds		$	5,831		$	0		$	0		$	5,750		$	5,750
Notes payable (excluding leases)		7,799			0			6,762			704			7,466
Total liabilities		$	13,630		$	0		$	6,762		$	6,454		$	13,216

(1) Excludes policy loans of $203, equity method investments of $2,838, and REO of $253, at carrying value.


	December 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		$	17,083		$	18,662		$	167		$	0		$	18,829
Municipalities		266			0			307			0			307

Public utilities		34			0			38			0			38
Sovereign and supranational		418			0			462			0			462

Other corporate		18			0			21			0			21
Commercial mortgage and other loans		12,527			0			0			12,217			12,217
Other investments (1)		35			0			35			0			35
Total assets		$	30,381		$	18,662		$	1,030		$	12,217		$	31,909
Liabilities:
Other policyholders’ funds		$	6,169		$	0		$	0		$	6,080		$	6,080
Notes payable (excluding leases)		7,240			0			6,178			752			6,930
Total liabilities		$	13,409		$	0		$	6,178		$	6,832		$	13,010

(1) Excludes policy loans of $214, equity method investments of $2,750, and REO of $227, at carrying value.

Fair Value Assets Available-For-Sale Securities Carried 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, 2024
(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		$	19,976		$	505		$	0		$	20,481
Internal		0			333			0			333

Total government and agencies		19,976			838			0			20,814
Municipalities:
Third-party pricing vendor		0			1,943			0			1,943
Internal		0			267			0			267

Total municipalities		0			2,210			0			2,210
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,420			0			2,420
Internal		0			27			40			67
Broker/other		0			79			819			898
Total mortgage- and asset-backed securities		0			2,526			859			3,385
Public utilities:
Third-party pricing vendor		0			3,680			0			3,680
Internal		0			3,126			0			3,126
Broker/other		0			0			507			507
Total public utilities		0			6,806			507			7,313
Sovereign and supranational:
Third-party pricing vendor		0			125			0			125
Internal		0			337			0			337
Broker/other		0			0			28			28
Total sovereign and supranational		0			462			28			490
Banks/financial institutions:
Third-party pricing vendor		0			4,703			0			4,703
Internal		0			4,122			65			4,187
Broker/other		0			0			9			9
Total banks/financial institutions		0			8,825			74			8,899
Other corporate:
Third-party pricing vendor		0			21,282			0			21,282
Internal		0			5,277			249			5,526
Broker/other		0			10			201			211
Total other corporate		0			26,569			450			27,019
Total securities available-for-sale		$	19,976		$	48,236		$	1,918		$	70,130
Equity securities, carried at fair value:
Third-party pricing vendor		$	603		$	0		$	0		$	603

Broker/other		0			0			159			159
Total equity securities		$	603		$	0		$	159		$	762


	December 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		$	21,692		$	808		$	0		$	22,500
Internal		0			60			0			60
Broker/other		8			32			0			40
Total government and agencies		21,700			900			0			22,600
Municipalities:
Third-party pricing vendor		0			1,426			0			1,426
Internal		0			256			0			256
Broker/other		0			616			0			616
Total municipalities		0			2,298			0			2,298
Mortgage- and asset-backed securities:
Third-party pricing vendor		0			2,277			0			2,277
Internal		0			27			105			132
Broker/other		0			10			667			677
Total mortgage- and asset-backed securities		0			2,314			772			3,086
Public utilities:
Third-party pricing vendor		0			4,570			0			4,570
Internal		0			2,677			0			2,677
Broker/other		0			92			253			345
Total public utilities		0			7,339			253			7,592
Sovereign and supranational:
Third-party pricing vendor		0			118			0			118
Internal		0			330			0			330
Broker/other		0			59			30			89
Total sovereign and supranational		0			507			30			537
Banks/financial institutions:
Third-party pricing vendor		0			5,085			0			5,085
Internal		0			3,008			69			3,077
Broker/other		0			664			9			673
Total banks/financial institutions		0			8,757			78			8,835
Other corporate:
Third-party pricing vendor		0			18,088			4			18,092
Internal		0			4,210			230			4,440
Broker/other		0			5,396			414			5,810
Total other corporate		0			27,694			648			28,342
Total securities available-for-sale		$	21,700		$	49,809		$	1,781		$	73,290
Equity securities, carried at fair value:
Third-party pricing vendor		$	800		$	0		$	0		$	800
Internal		0			0			216			216
Broker/other		40			0			32			72
Total equity securities		$	840		$	0		$	248		$	1,088

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


	March 31, 2024
(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		$	17,319		$	155		$	0		$	17,474

Total government and agencies		17,319			155			0			17,474
Municipalities:
Third-party pricing vendor		0			285			0			285

Total municipalities		0			285			0			285




Public utilities:
Third-party pricing vendor		0			36			0			36


Total public utilities		0			36			0			36
Sovereign and supranational:
Third-party pricing vendor		0			213			0			213
Internal		0			218			0			218

Total sovereign and supranational		0			431			0			431




Other corporate:
Third-party pricing vendor		0			19			0			19


Total other corporate		0			19			0			19
Total securities held-to-maturity		$	17,319		$	926		$	0		$	18,245


	December 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		$	18,662		$	167		$	0		$	18,829
Total government and agencies		18,662			167			0			18,829
Municipalities:
Third-party pricing vendor		0			307			0			307
Total municipalities		0			307			0			307




Public utilities:
Third-party pricing vendor		0			38			0			38
Total public utilities		0			38			0			38
Sovereign and supranational:
Third-party pricing vendor		0			226			0			226
Internal		0			236			0			236
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		$	18,662		$	995		$	0		$	19,657

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, 2024
	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	$	772	$	253	$	30	$	78	$	648	$	248	$	2,029
Net investment gains (losses) included in earnings	1		0		0		0		0		(5)		(4)
Unrealized gains (losses) included in other comprehensive income (loss)	(4)		(10)		(2)		(4)		1		0		(19)
Purchases, issuances, sales and settlements:
Purchases	118		60		0		5		37		0		220
Issuances	0		0		0		0		0		0		0
Sales	0		0		0		0		0		0		0
Settlements	(28)		(22)		0		(5)		(3)		(84)		(142)
Transfers into Level 3	0		226		0		0		0		0		226
Transfers out of Level 3	0		0		0		0		(233)		0		(233)
Balance, end of period	$	859	$	507	$	28	$	74	$	450	$	159	$	2,077
Changes in unrealized gains (losses) relating to Level 3 assets and liabilities still held at the end of the period included in earnings	$	1	$	0	$	0	$	0	$	0	$	(3)	$	(2)


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

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, 2024

(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

859

Consensus pricing

Offered quotes

85.28

105.35

(a)

99.24

Public utilities

507

Discounted cash flow

Credit spreads

175 bps

225 bps

(c)

208 bps

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(b)

N/A

Other corporate

450

Discounted cash flow

Credit spreads

69 bps

388 bps

(c)

183 bps

Equity securities

159

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,077

(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) Category represents a single security; range not applicable.

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

December 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

772

Consensus pricing

Offered quotes

84.81

105.89

(a)

99.39

Public utilities

253

Consensus pricing

Offered quotes

94.34

102.99

(a)

96.46

Sovereign and supranational

Consensus pricing

Offered quotes

N/A

(b)

N/A

Banks/financial institutions

Discounted cash flow

Credit spreads

N/A

(b)

N/A

Other corporate

648

Discounted cash flow

Credit spreads

69 bps

423 bps

(c)

206 bps

Equity securities

248

Adjusted cost

Private financials

N/A

(d)

N/A

Total assets

2,029

(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) Category represents a single security; range not applicable.

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