Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value of Financial Instruments [Abstract]

Carrying And Estimated Fair Values Of Financial Instruments

	As of June 30, 2022						As of December 31, 2021
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	103,365		$	103,365		$	118,746		$	118,746
Trading securities		3,822			3,822			4,482			4,482
Equity securities		344			344			318			318
Mortgage loans on real estate		17,922			16,988			17,991			18,700
Derivative investments (1)		3,370			3,370			5,437			5,437
Other investments		4,044			4,044			4,284			4,284
Cash and invested cash		1,567			1,567			2,612			2,612
Other assets:
GLB direct embedded derivatives		1,400			1,400			1,963			1,963
GLB ceded embedded derivatives		41			41			56			56
Reinsurance-related embedded derivatives		305			305			-			-
Indexed annuity ceded embedded derivatives		440			440			528			528
Separate account assets		145,791			145,791			182,583			182,583
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(3,366	)		(3,366	)		(6,131	)		(6,131	)
Other contract holder funds:
Remaining guaranteed interest and similar contracts		(1,801	)		(1,801	)		(1,788	)		(1,788	)
Account values of certain investment contracts		(41,989	)		(36,996	)		(41,194	)		(47,862	)
Short-term debt		-			-			(300	)		(302	)
Long-term debt		(6,498	)		(5,761	)		(6,325	)		(6,707	)
Reinsurance-related embedded derivatives		-			-			(206	)		(206	)
Other liabilities:
Derivative liabilities (1)		(254	)		(254	)		(677	)		(677	)
GLB ceded embedded derivatives		(136	)		(136	)		(182	)		(182	)

⁽¹⁾We have master netting agreements with each of our derivative counterparties, which allow for the netting of our derivative asset and liability positions by counterparty.

Schedule of Mortgage Loans With Election Of Fair Value Option

	As of		As of
	June 30,		December 31,
	2022		2021
Fair value	$	528	$	739
Aggregate contractual principal		547		742

Fair Value Of Assets And Liabilities On A Recurring Basis

		As of June 30, 2022
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	77,682			$	5,476		$	83,158
U.S. government bonds			394			21				-			415
State and municipal bonds			-			5,523				-			5,523
Foreign government bonds			-			311				37			348
RMBS			-			2,181				1			2,182
CMBS			-			1,557				-			1,557
ABS			-			8,557				1,153			9,710
Hybrid and redeemable preferred securities			44			324				104			472
Trading securities			-			3,202				620			3,822
Equity securities			12			187				145			344
Mortgage loans on real estate			-			-				528			528
Derivative investments (1)			-			5,387				449			5,836
Other investments – short-term investments			-			177				-			177
Cash and invested cash			-			1,567				-			1,567
Other assets:
GLB direct embedded derivatives			-			-				1,400			1,400
GLB ceded embedded derivatives			-			-				41			41
Reinsurance-related embedded derivatives			-			305				-			305
Indexed annuity ceded embedded derivatives			-			-				440			440
Separate account assets			392			145,399				-			145,791
Total assets		$	842		$	252,380			$	10,394		$	263,616
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(3,366	)	$	(3,366	)
Other liabilities:
Derivative liabilities (1)			-			(2,274	)			(446	)		(2,720	)
GLB ceded embedded derivatives			-			-				(136	)		(136	)
Total liabilities		$	-		$	(2,274	)		$	(3,948	)	$	(6,222	)

‎

		As of December 31, 2021
		Quoted
		Prices
		in Active
	Markets for			Significant				Significant
		Identical		Observable				Unobservable				Total
		Assets			Inputs				Inputs			Fair
		(Level 1)			(Level 2)				(Level 3)			Value
Assets
Investments:
Fixed maturity AFS securities:
Corporate bonds		$	-		$	92,400			$	5,720		$	98,120
U.S. government bonds			428			5				-			433
State and municipal bonds			-			6,621				-			6,621
Foreign government bonds			-			391				41			432
RMBS			-			2,521				4			2,525
CMBS			-			1,599				-			1,599
ABS			-			7,642				870			8,512
Hybrid and redeemable preferred securities			54			357				93			504
Trading securities			32			3,622				828			4,482
Equity securities			7			216				95			318
Mortgage loans on real estate			-			-				739			739
Derivative investments (1)			-			7,597				149			7,746
Other investments – short-term investments			-			154				-			154
Cash and invested cash			-			2,612				-			2,612
Other assets:
GLB direct embedded derivatives			-			-				1,963			1,963
GLB ceded embedded derivatives			-			-				56			56
Indexed annuity ceded embedded derivatives			-			-				528			528
Separate account assets			646			181,929				-			182,575
Total assets		$	1,167		$	307,666			$	11,086		$	319,919
Liabilities
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(6,131	)	$	(6,131	)
Reinsurance-related embedded derivatives			-			(206	)			-			(206	)
Other liabilities:
Derivative liabilities (1)			-			(2,858	)			(128	)		(2,986	)
GLB ceded embedded derivatives			-			-				(182	)		(182	)
Total liabilities		$	-		$	(3,064	)		$	(6,441	)	$	(9,505	)

⁽¹⁾Derivative investment assets and liabilities are presented within the fair value hierarchy on a gross basis by derivative type and not on a master netting basis by counterparty.

‎

Fair Value Measured On A Recurring Basis Reconciliation

	For the Three Months Ended June 30, 2022
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	5,860		$	-		$	(657	)	$	293		$	(20	)	$	5,476
Foreign government bonds		40			-			(3	)		-			-			37
RMBS		13			-			-			-			(12	)		1
CMBS		17			-			-			-			(17	)		-
ABS		988			-			(33	)		266			(68	)		1,153
Hybrid and redeemable preferred
securities		98			-			6			-			-			104
Trading securities		797			(29	)		-			(148	)		-			620
Equity securities		104			15			-			26			-			145
Mortgage loans on real estate		537			(12	)		(5	)		8			-			528
Derivative investments		3			-			-			-			-			3
Other assets: (3)
GLB direct embedded derivatives		1,880			(480	)		-			-			-			1,400
GLB ceded embedded derivatives		42			(1	)		-			-			-			41
Indexed annuity ceded embedded derivatives		493			(113	)		-			60			-			440
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(5,574	)		2,290			-			(82	)		-			(3,366	)
Other liabilities – GLB ceded embedded
derivatives (3)		(174	)		38			-			-			-			(136	)
Total, net	$	5,124		$	1,708		$	(692	)	$	423		$	(117	)	$	6,446

‎

	For the Three Months Ended June 30, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)			Sales,			Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	5,145		$	1		$	69		$	215		$	(1	)	$	5,429
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		66			-			-			14			(37	)		43
RMBS		2			(1	)		-			-			-			1
CMBS		1			-			-			8			-			9
ABS		688			1			4			99			(162	)		630
Hybrid and redeemable preferred
securities		85			-			11			6			-			102
Trading securities		715			2			-			(64	)		(23	)		630
Equity securities		61			20			-			1			-			82
Mortgage loans on real estate		874			5			-			(61	)		-			818
Derivative investments		2,661			(2	)		-			-			(2,658	)		1
Other assets: (3)
GLB direct embedded derivatives		1,831			(64	)		-			-			-			1,767
GLB ceded embedded derivatives		42			11			-			-			-			53
Indexed annuity ceded embedded derivatives		527			-			-			-			(527	)		-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(4,170	)		-			-			-			4,170			-
Other liabilities – GLB ceded embedded
derivatives (3)		(152	)		-			-			-			-			(152	)
Total, net	$	8,381		$	(27	)	$	84		$	213		$	762		$	9,413

‎

	For the Six Months Ended June 30, 2022
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	5,720		$	1		$	(1,010	)	$	651		$	114		$	5,476
Foreign government bonds		41			-			(4	)		-			-			37
RMBS		4			-			-			12			(15	)		1
CMBS		-			-			-			17			(17	)		-
ABS		870			-			(60	)		453			(110	)		1,153
Hybrid and redeemable preferred
securities		93			-			11			-			-			104
Trading securities		828			(58	)		-			(146	)		(4	)		620
Equity securities		95			32			-			18			-			145
Mortgage loans on real estate		739			(15	)		(6	)		(190	)		-			528
Derivative investments		21			3			(6	)		-			(15	)		3
Other assets: (3)
GLB direct embedded derivatives		1,963			(563	)		-			-			-			1,400
GLB ceded embedded derivatives		56			(15	)		-			-			-			41
Indexed annuity ceded embedded derivatives		528			(166	)		-			78			-			440
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(6,131	)		2,849			-			(84	)		-			(3,366	)
Other liabilities – GLB ceded embedded
derivatives (3)		(182	)		46			-			-			-			(136	)
Total, net	$	4,645		$	2,114		$	(1,075	)	$	809		$	(47	)	$	6,446

‎

	For the Six Months Ended June 30, 2021
							Gains		Issuances,				Transfers
				Items			(Losses)		Sales,				Into or
				Included			in		Maturities,				Out
	Beginning			in			OCI		Settlements,				of			Ending
	Fair			Net			and			Calls,			Level 3,			Fair
	Value			Income			Other (1)			Net			Net			Value
Investments: (2)
Fixed maturity AFS securities:
Corporate bonds	$	5,121		$	3		$	(51	)	$	385		$	(29	)	$	5,429
U.S. government bonds		5			-			-			(5	)		-			-
Foreign government bonds		74			-			(8	)		14			(37	)		43
RMBS		2			(1	)		-			-			-			1
CMBS		-			1			-			8			-			9
ABS		570			1			(3	)		282			(220	)		630
Hybrid and redeemable preferred
securities		104			-			12			(14	)		-			102
Trading securities		644			(1	)		-			2			(15	)		630
Equity securities		59			26			-			(3	)		-			82
Mortgage loans on real estate		832			7			3			(24	)		-			818
Derivative investments		1,542			1,249			-			(132	)		(2,658	)		1
Other assets: (3)
GLB direct embedded derivatives		450			1,317			-			-			-			1,767
GLB ceded embedded derivatives		82			(29	)		-			-			-			53
Indexed annuity ceded embedded derivatives		550			32			-			(55	)		(527	)		-
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives (3)		(3,594	)		(626	)		-			50			4,170			-
Other liabilities – GLB ceded embedded
derivatives (3)		-			(152	)		-			-			-			(152	)
Total, net	$	6,441		$	1,827		$	(47	)	$	508		$	684		$	9,413

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 5).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on our Consolidated Statements of Comprehensive Income (Loss). Gains (losses) from sales, maturities, settlements and calls and credit loss expense are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

⁽³⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

‎

Schedule Of Investment Holdings Movements

	For the Three Months Ended June 30, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	426		$	-		$	(4	)	$	(86	)	$	(43	)	$	293
RMBS		-			-			-			-			-			-
CMBS		-			-			-			-			-			-
ABS		305			-			-			(39	)		-			266
Trading securities		92			(88	)		-			(152	)		-			(148	)
Equity securities		26			-			-			-			-			26
Mortgage loans on real estate		9			-			-			(1	)		-			8
Other assets – indexed annuity ceded
embedded derivatives		20			-			-			40			-			60
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(100	)		-			-			18			-			(82	)
Total, net	$	778		$	(88	)	$	(4	)	$	(220	)	$	(43	)	$	423

	For the Three Months Ended June 30, 2021
	Issuances		Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	410	$	(13	)	$	(6	)	$	(176	)	$	-	$	215
U.S. government bonds		-		-			(5	)		-			-		(5	)
Foreign government bonds		14		-			-			-			-		14
CMBS		8		-			-			-			-		8
ABS		168		-			-			(69	)		-		99
Hybrid and redeemable preferred
securities		6		-			-			-			-		6
Trading securities		36		(5	)		-			(95	)		-		(64	)
Equity securities		2		(1	)		-			-			-		1
Mortgage loans on real estate		9		(66	)		(4	)		-			-		(61	)
Total, net	$	653	$	(85	)	$	(15	)	$	(340	)	$	-	$	213

‎

	For the Six Months Ended June 30, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	853		$	-		$	(25	)	$	(129	)	$	(48	)	$	651
RMBS		12			-			-			-			-			12
CMBS		17			-			-			-			-			17
ABS		555			-			-			(95	)		(7	)		453
Trading securities		271			(220	)		-			(197	)		-			(146	)
Equity securities		26			(8	)		-			-			-			18
Mortgage loans on real estate		12			-			-			(202	)		-			(190	)
Other assets – indexed annuity ceded
embedded derivatives		38			-			-			40			-			78
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(228	)		-			-			144			-			(84	)
Total, net	$	1,556		$	(228	)	$	(25	)	$	(439	)	$	(55	)	$	809

	For the Six Months Ended June 30, 2021
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	707		$	(17	)	$	(21	)	$	(267	)	$	(17	)	$	385
U.S. government bonds		-			-			(5	)		-			-			(5	)
Foreign government bonds		14			-			-			-			-			14
CMBS		8			-			-			-			-			8
ABS		368			-			-			(86	)		-			282
Hybrid and redeemable preferred
securities		6			(20	)		-			-			-			(14	)
Trading securities		124			(8	)		-			(114	)		-			2
Equity securities		6			(9	)		-			-			-			(3	)
Mortgage loans on real estate		81			(101	)		(4	)		-			-			(24	)
Derivative investments		174			(124	)		(182	)		-			-			(132	)
Other assets – indexed annuity ceded
embedded derivatives		3			-			-			(58	)		-			(55	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		(108	)		-			-			158			-			50
Total, net	$	1,383		$	(279	)	$	(212	)	$	(367	)	$	(17	)	$	508

Changes In Unrealized Gains (Losses) Within Level 3 Financial Instruments Carried At Fair Value And Still Held

	For the Three					For the Six
	Months Ended					Months Ended
	June 30,					June 30,
	2022			2021		2022			2021
Trading securities	$	(28	)	$	3	$	(58	)	$	-
Equity securities		16			23		34			30
Mortgage loans on real estate		(12	)		4		(15	)		8
Derivative investments		1			-		3			-
GLB embedded derivatives		(281	)		143		(161	)		1,713
Embedded derivatives – indexed annuity
and IUL contracts		(26	)		-		58			-
Total, net (1)	$	(330	)	$	173	$	(139	)	$	1,751

⁽¹⁾Included in realized gain (loss) on our Consolidated Statements of Comprehensive Income (Loss).

Changes in Unrealized Gains (Losses) Included in OCI

	For the Three					For the Six
	Months Ended					Months Ended
	June 30,					June 30,
	2022			2021		2022			2021
Fixed maturity AFS securities:
Corporate bonds	$	(658	)	$	65	$	(1,012	)	$	(57	)
Foreign government bonds		(3	)		-		(5	)		(8	)
ABS		(34	)		3		(62	)		(4	)
Hybrid and redeemable preferred
securities		6			12		11			13
Mortgage loans on real estate		(5	)		-		(6	)		3
Total, net	$	(694	)	$	80	$	(1,074	)	$	(53	)

Components Of The Transfers In And Out Of Level 3

	For the Three								For the Three
	Months Ended								Months Ended
	June 30, 2022								June 30, 2021
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	32	$	(52	)	$	(20	)	$	-	$	(1	)	$	(1	)
Foreign government bonds		-		-			-			-		(37	)		(37	)
RMBS		-		(12	)		(12	)		-		-			-
CMBS		-		(17	)		(17	)		-		-			-
ABS		1		(69	)		(68	)		-		(162	)		(162	)
Trading securities		-		-			-			-		(23	)		(23	)
Derivative investments		-		-			-			-		(2,658	)		(2,658	)
Other assets – indexed annuity ceded
embedded derivatives		-		-			-			-		(527	)		(527	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		-		-			-			-		4,170			4,170
Total, net	$	33	$	(150	)	$	(117	)	$	-	$	762		$	762

	For the Six								For the Six
	Months Ended								Months Ended
	June 30, 2022								June 30, 2021
	Transfers		Transfers						Transfers		Transfers
	Into		Out of						Into		Out of
	Level 3		Level 3			Total			Level 3		Level 3			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	228	$	(114	)	$	114		$	10	$	(39	)	$	(29	)
Foreign government bonds		-		-			-			-		(37	)		(37	)
RMBS		-		(15	)		(15	)		-		-			-
CMBS		-		(17	)		(17	)		-		-			-
ABS		1		(111	)		(110	)		-		(220	)		(220	)
Trading securities		-		(4	)		(4	)		14		(29	)		(15	)
Derivative investments		-		(15	)		(15	)		-		(2,658	)		(2,658	)
Other assets – indexed annuity ceded
embedded derivatives		-		-			-			-		(527	)		(527	)
Future contract benefits – indexed annuity
and IUL contracts embedded derivatives		-		-			-			-		4,170			4,170
Total, net	$	229	$	(276	)	$	(47	)	$	24	$	660		$	684

Fair Value Inputs Quantitative Information

											Weighted
											Average
	Fair			Valuation	Significant	Assumption or					Input
	Value			Technique	Unobservable Inputs	Input Ranges					Range (1)
Assets
Investments:
Fixed maturity AFS and
trading securities:
Corporate bonds	$	3,279		Discounted cash flow	Liquidity/duration adjustment (2)	0.8	%	-	5.5	%	2.0	%
Foreign government
bonds		37		Discounted cash flow	Liquidity/duration adjustment (2)	1.3	%	-	6.5	%	5.4	%
ABS		16		Discounted cash flow	Liquidity/duration adjustment (2)	2.0	%	-	2.0	%	2.0	%
Hybrid and redeemable
preferred securities		7		Discounted cash flow	Liquidity/duration adjustment (2)	1.7	%	-	1.7	%	1.7	%
Equity securities		20		Discounted cash flow	Liquidity/duration adjustment (2)	4.1	%	-	4.5	%	4.2	%
Other assets:
GLB direct and ceded		1,441		Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
embedded derivatives					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.25	%	-	2.11	%	1.53	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.08	%
Indexed annuity ceded
embedded derivatives		440		Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
Liabilities
Future contract benefits –
indexed annuity contracts
embedded derivatives	$	(3,476	)	Discounted cash flow	Lapse rate (3)	0	%	-	9	%	(10)
					Mortality rate (7)				(9)		(10)
Other liabilities –
GLB ceded embedded
derivatives		(136	)	Discounted cash flow	Long-term lapse rate (3)	1	%	-	30	%	(10)
					Utilization of guaranteed withdrawals (4)	85	%	-	100	%	94	%
					Claims utilization factor (5)	60	%	-	100	%	(10)
					Premiums utilization factor (5)	80	%	-	115	%	(10)
					NPR (6)	0.25	%	-	2.11	%	1.53	%
					Mortality rate (7)				(9)		(10)
					Volatility (8)	1	%	-	28	%	14.08	%

⁽¹⁾Unobservable inputs were weighted by the relative fair value of the instruments, unless otherwise noted.

⁽²⁾The liquidity/duration adjustment input represents an estimated market participant composite of adjustments attributable to liquidity premiums, expected durations, structures and credit quality that would be applied to the market observable information of an investment.

⁽³⁾The lapse rate input represents the estimated probability of a contract surrendering during a year, and thereby forgoing any future benefits. The range for indexed annuity contracts represents the lapse rates during the surrender charge period.

⁽⁴⁾The utilization of guaranteed withdrawals input represents the estimated percentage of contract holders that utilize the guaranteed withdrawal feature.

⁽⁵⁾The utilization factors are applied to the present value of claims or premiums, as appropriate, in the GLB reserve calculation to estimate the impact of inefficient withdrawal behavior, including taking less than or more than the maximum guaranteed withdrawal.

⁽⁶⁾The NPR input represents the estimated additional credit spread that market participants would apply to the market observable discount rate when pricing a contract. The NPR input was weighted by the absolute value of the sensitivity of the reserve to the NPR assumption.

⁽⁷⁾The mortality rate input represents the estimated probability of when an individual belonging to a particular group, categorized according to age or some other factor such as gender, will die.

⁽⁸⁾The volatility input represents overall volatilities assumed for the underlying variable annuity funds, which include a mixture of equity and fixed-income assets. Fair value of the variable annuity GLB embedded derivatives would increase if higher volatilities were used for valuation. Volatility assumptions vary by fund due to the benchmarking of different indices. The volatility input was weighted by the relative account value assigned to each index.

⁽⁹⁾The mortality rate is based on a combination of company and industry experience, adjusted for improvement factors.

⁽¹⁰⁾A weighted average input range is not a meaningful measurement for lapse rate, utilization factors or mortality rate.