The carrying values and estimated fair values of our financial instruments (in millions) were as follows:



	As of September 30, 2023						As of December 31, 2022
	Carrying			Fair			Carrying			Fair
	Value			Value			Value			Value
Assets
Fixed maturity AFS securities	$	97,804		$	97,804		$	99,736		$	99,736
Trading securities		2,788			2,788			3,498			3,498
Equity securities		383			383			427			427
Mortgage loans on real estate		18,751			16,626			18,301			16,553
Derivative investments		5,789			5,789			3,594			3,594
Other investments		4,550			4,550			3,739			3,739
Cash and invested cash		2,529			2,529			3,343			3,343
MRB assets		4,108			4,108			2,807			2,807
Other assets:
Ceded MRBs		2			2			12			12
Reinsurance-related embedded derivatives		393			393			416			416
Indexed annuity ceded embedded derivatives		586			586			525			525
Separate account assets		145,810			145,810			143,536			143,536

Liabilities
Policyholder account balances:
Account balances of certain investment contracts		(43,094	)		(30,890	)		(43,578	)		(34,274	)
Indexed annuity and IUL contracts embedded derivatives		(7,174	)		(7,174	)		(4,783	)		(4,783	)
MRB liabilities		(1,385	)		(1,385	)		(2,078	)		(2,078	)
Short-term debt		-			-			(500	)		(496	)
Long-term debt		(5,905	)		(4,829	)		(5,955	)		(5,005	)
Other liabilities:
Ceded MRBs		(305	)		(305	)		(205	)		(205	)
Derivative liabilities		(644	)		(644	)		(210	)		(210	)
Remaining guaranteed interest and similar contracts		(433	)		(433	)		(574	)		(574	)

Valuation Methodologies and Associated Inputs for Financial Instruments Not Carried at Fair Value

The following discussion outlines the methodologies and assumptions used to determine the fair value of our financial instruments not carried at fair value on the Consolidated Balance Sheets. Considerable judgment is required to develop these assumptions used to measure fair value. Accordingly, the estimates shown are not necessarily indicative of the amounts that would be realized in a one-time, current market exchange of all of our financial instruments.

The fair value of mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, is established using a discounted cash flow method based on credit rating, maturity and future income. The ratings for mortgages in good standing are based on property type, location, market conditions, occupancy, debt-service coverage, loan-to-value, quality of tenancy, borrower and payment record. The fair value for impaired mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s market price or the fair value of the collateral if the loan is collateral dependent. The inputs used to measure the fair value of our mortgage loans on real estate, excluding mortgage loans accounted for using the fair value option, are classified as Level 2 within the fair value hierarchy.

The carrying value of our assets classified as other investments, excluding short-term investments, approximates fair value. Other investments includes primarily LPs and other privately held investments that are accounted for using the equity method of accounting and the carrying value is based on our proportional share of the net assets of the LPs. Other investments also includes FHLB stock carried at cost and periodically evaluated for impairment based on ultimate recovery of par value. The inputs used to measure the fair value of our LPs, other privately held investments and FHLB stock are classified as Level 3 within the fair value hierarchy. The remaining assets in other investments include cash collateral receivables and securities that are not LPs or other privately held investments. The inputs used to measure the fair value of these assets are classified as Level 2 within the fair value hierarchy.

The following summarizes our financial instruments carried at fair value (in millions) on a recurring basis by the fair value hierarchy levels:



		As of September 30, 2023
		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		$	-		$	73,591			$	2,410		$	76,001
U.S. government bonds			333			40				-			373
State and municipal bonds			-			4,737				33			4,770
Foreign government bonds			-			273				-			273
RMBS			-			1,916				12			1,928
CMBS			-			1,701				-			1,701
ABS			-			11,056				1,337			12,393
Hybrid and redeemable preferred securities			46			271				48			365
Trading securities			-			2,438				350			2,788
Equity securities			1			245				137			383
Mortgage loans on real estate			-			-				315			315
Derivative investments ⁽¹⁾			-			9,238				877			10,115
Other investments – short-term investments			-			170				-			170
Cash and invested cash			-			2,529				-			2,529
MRB assets			-			-				4,108			4,108
Other assets:
Ceded MRBs			-			-				2			2
Reinsurance-related embedded derivatives			-			393				-			393
Indexed annuity ceded embedded derivatives			-			-				586			586
Separate account assets			430			145,380				-			145,810
Total assets		$	810		$	253,978			$	10,215		$	265,003

Liabilities
Policyholder account balances – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(7,174	)	$	(7,174	)
MRB liabilities			-			-				(1,385	)		(1,385	)
Other liabilities:
Ceded MRBs			-			-				(305	)		(305	)
Derivative liabilities⁽¹⁾			-			(4,106	)			(864	)		(4,970	)
Total liabilities		$	-		$	(4,106	)		$	(9,728	)	$	(13,834	)

‎



		As of December 31, 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		$	-		$	76,728			$	2,295		$	79,023
U.S. government bonds			359			20				-			379
State and municipal bonds			-			5,035				35			5,070
Foreign government bonds			-			318				-			318
RMBS			-			2,008				1			2,009
CMBS			-			1,674				-			1,674
ABS			-			9,787				1,117			10,904
Hybrid and redeemable preferred securities			41			269				49			359
Trading securities			-			2,917				581			3,498
Equity securities			-			274				153			427
Mortgage loans on real estate			-			-				487			487
Derivative investments ⁽¹⁾			-			6,048				605			6,653
Other investments – short-term investments			-			75				-			75
Cash and invested cash			-			3,343				-			3,343
MRB assets			-			-				2,807			2,807
Other assets:
Ceded MRBs			-			-				12			12
Reinsurance-related embedded derivatives			-			416				-			416
Indexed annuity ceded embedded derivatives			-			-				525			525
Separate account assets			412			143,124				-			143,536
Total assets		$	812		$	252,036			$	8,667		$	261,515

Liabilities
Policyholder account balances – indexed annuity
and IUL contracts embedded derivatives		$	-		$	-			$	(4,783	)	$	(4,783	)
MRB liabilities			-			-				(2,078	)		(2,078	)
Other liabilities:
Ceded MRBs			-			-				(205	)		(205	)
Derivative liabilities⁽¹⁾			-			(2,666	)			(603	)		(3,269	)
Total liabilities		$	-		$	(2,666	)		$	(7,669	)	$	(10,335	)

⁽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.

‎

The following summarizes changes to our financial instruments carried at fair value (in millions) and classified within Level 3 of the fair value hierarchy. The gains and losses below may include changes in fair value due in part to observable inputs that are a component of the valuation methodology. The summary schedule excludes changes to MRB assets and MRB liabilities as these balances are rolled forward in Note 10.



	For the Three Months Ended September 30, 2023
							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	$	2,366		$	(4	)	$	(14	)	$	105		$	(43	)	$	2,410
State and municipal bonds		36			(4	)		1			-			-			33
RMBS		6			-			(1	)		-			7			12
ABS		1,208			-			(5	)		247			(113	)		1,337
Hybrid and redeemable preferred
securities		60			-			1			-			(13	)		48
Trading securities		351			(3	)		-			(4	)		6			350
Equity securities		125			12			-			-			-			137
Mortgage loans on real estate		404			2			(3	)		(88	)		-			315
Derivative investments		31			(26	)		-			8			-			13
Other assets:
Ceded MRBs ⁽³⁾		2			-			-			-			-			2
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		603			(49	)		-			32			-			586
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(7,600	)		621			-			(195	)		-			(7,174	)
Other liabilities – ceded MRBs ⁽³⁾		(293	)		(12	)		-			-			-			(305	)
Total, net	$	(2,701	)	$	537		$	(21	)	$	105		$	(156	)	$	(2,236	)

‎



	For the Three Months Ended September 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	$	5,476		$	1		$	(513	)	$	65		$	(16	)	$	5,013
Foreign government bonds		37			-			(3	)		-			-			34
RMBS		1			-			-			9			-			10
ABS		1,153			-			(38	)		123			(147	)		1,091
Hybrid and redeemable preferred
securities		104			(2	)		(37	)		(6	)		-			59
Trading securities		620			(24	)		-			3			3			602
Equity securities		145			24			-			(1	)		-			168
Mortgage loans on real estate		528			(1	)		(4	)		(28	)		-			495
Derivative investments		3			3			-			-			(1	)		5
Other assets:
Ceded MRBs ⁽³⁾		23			(3	)		-			-			-			20
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		440			(47	)		-			63			-			456
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(3,366	)		394			-			(222	)		-			(3,194	)
Other liabilities – ceded MRBs ⁽³⁾		(115	)		(54	)		-			-			-			(169	)
Total, net	$	5,049		$	291		$	(595	)	$	6		$	(161	)	$	4,590

‎


	For the Nine Months Ended September 30, 2023
							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	$	2,295		$	1		$	(13	)	$	130		$	(3	)	$	2,410
State and municipal bonds		35			(4	)		3			(1	)		-			33
RMBS		1			-			(1	)		5			7			12
CMBS		-			-			-			(4	)		4			-
ABS		1,117			-			(3	)		567			(344	)		1,337
Hybrid and redeemable preferred
securities		49			-			(2	)		(2	)		3			48
Trading securities		581			(1	)		-			(236	)		6			350
Equity securities		153			(17	)		-			1			-			137
Mortgage loans on real estate		487			-			2			(174	)		-			315
Derivative investments		2			(28	)		-			8			31			13
Other assets:
Ceded MRBs ⁽³⁾		12			(10	)		-			-			-			2
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		525			(37	)		-			98			-			586
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(4,783	)		(1,669	)		-			(722	)		-			(7,174	)
Other liabilities – ceded MRBs ⁽³⁾		(205	)		(100	)		-			-			-			(305	)
Total, net	$	269		$	(1,865	)	$	(14	)	$	(330	)	$	(296	)	$	(2,236	)

‎


	For the Nine Months Ended September 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		$	2		$	(1,523	)	$	716		$	98		$	5,013
Foreign government bonds		41			-			(7	)		-			-			34
RMBS		4			-			-			21			(15	)		10
CMBS		-			-			-			17			(17	)		-
ABS		870			-			(98	)		576			(257	)		1,091
Hybrid and redeemable preferred
securities		93			(2	)		(26	)		(6	)		-			59
Trading securities		828			(82	)		-			(143	)		(1	)		602
Equity securities		95			56			-			17			-			168
Mortgage loans on real estate		739			(16	)		(10	)		(218	)		-			495
Derivative investments		21			5			(6	)		-			(15	)		5
Other assets:
Ceded MRBs ⁽³⁾		95			(75	)		-			-			-			20
Indexed annuity ceded embedded
derivatives ⁽⁴⁾		528			(214	)		-			142			-			456
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives ⁽⁴⁾		(6,131	)		3,244			-			(307	)		-			(3,194	)
Other liabilities – ceded MRBs ⁽³⁾		(17	)		(152	)		-			-			-			(169	)
Total, net	$	2,886		$	2,766		$	(1,670	)	$	815		$	(207	)	$	4,590

⁽¹⁾The changes in fair value of the interest rate swaps are offset by an adjustment to derivative investments (see Note 6).

⁽²⁾Amortization and accretion of premiums and discounts are included in net investment income on the 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 the Consolidated Statements of Comprehensive Income (Loss).

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

⁽⁴⁾Gains (losses) from the changes in fair value are included in realized gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

‎

The following provides the components of the items included in issuances, sales, maturities, settlements and calls, net, (in millions) as reported above:



	For the Three Months Ended September 30, 2023
	Issuances			Sales			Maturities		Settlements				Calls		Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	178		$	(28	)	$	-		$	(45	)	$	-	$	105
ABS		279			-			-			(32	)		-		247
Trading securities		-			-			-			(4	)		-		(4	)
Mortgage loans on real estate		1			-			-			(89	)		-		(88	)
Derivative investments		9			-			(1	)		-			-		8
Other assets – indexed annuity ceded
embedded derivatives		28			-			-			4			-		32
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(231	)		-			-			36			-		(195	)
Total, net	$	264		$	(28	)	$	(1	)	$	(130	)	$	-	$	105



	For the Three Months Ended September 30, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	173		$	(4	)	$	(50	)	$	(52	)	$	(2	)	$	65
RMBS		9			-			-			-			-			9
ABS		213			-			-			(90	)		-			123
Hybrid and redeemable preferred
securities		-			-			-			-			(6	)		(6	)
Trading securities		11			-			-			(8	)		-			3
Equity securities		-			(1	)		-			-			-			(1	)
Mortgage loans on real estate		2			-			-			(30	)		-			(28	)
Other assets – indexed annuity ceded
embedded derivatives		37			-			-			26			-			63
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(181	)		-			-			(41	)		-			(222	)
Total, net	$	264		$	(5	)	$	(50	)	$	(195	)	$	(8	)	$	6

‎



	For the Nine Months Ended September 30, 2023
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	587		$	(65	)	$	(34	)	$	(347	)	$	(11	)	$	130
State and municipal bonds		-			(1	)		-			-			-			(1	)
RMBS		5			-			-			-			-			5
CMBS		-			-			-			(4	)		-			(4	)
ABS		736			(2	)		-			(167	)		-			567
Hybrid and redeemable preferred
securities		-			-			-			-			(2	)		(2	)
Trading securities		-			(155	)		-			(81	)		-			(236	)
Equity securities		1			-			-			-			-			1
Mortgage loans on real estate		5			-			-			(179	)		-			(174	)
Derivative investments		9			-			(1	)		-			-			8
Other assets – indexed annuity ceded
embedded derivatives		112			-			-			(14	)		-			98
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(846	)		-			-			124			-			(722	)
Total, net	$	609		$	(223	)	$	(35	)	$	(668	)	$	(13	)	$	(330	)


	For the Nine Months Ended September 30, 2022
	Issuances			Sales			Maturities		Settlements				Calls			Total
Investments:
Fixed maturity AFS securities:
Corporate bonds	$	1,026		$	(4	)	$	(75	)	$	(181	)	$	(50	)	$	716
RMBS		21			-			-			-			-			21
CMBS		17			-			-			-			-			17
ABS		768			-			-			(185	)		(7	)		576
Hybrid and redeemable preferred
securities		-			-			-			-			(6	)		(6	)
Trading securities		282			(220	)		-			(205	)		-			(143	)
Equity securities		26			(9	)		-			-			-			17
Mortgage loans on real estate		14			-			-			(232	)		-			(218	)
Other assets – indexed annuity ceded
embedded derivatives		76			-			-			66			-			142
Policyholder account balances – indexed
annuity and IUL contracts embedded
derivatives		(410	)		-			-			103			-			(307	)
Total, net	$	1,820		$	(233	)	$	(75	)	$	(634	)	$	(63	)	$	815

‎

The following summarizes changes in unrealized gains (losses) included in net income related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Trading securities ⁽¹⁾	$	(3	)	$	(23	)	$	(2	)	$	(81	)
Equity securities ⁽¹⁾		12			23			(17	)		57
Mortgage loans on real estate ⁽¹⁾		2			(1	)		(1	)		(16	)
Derivative investments⁽¹⁾		(25	)		2			(27	)		5
MRBs ⁽²⁾		1,415			780			2,783			1,639
Embedded derivatives – indexed annuity
and IUL contracts ⁽¹⁾		(4	)		(55	)		(223	)		4
Total, net	$	1,397		$	726		$	2,513		$	1,608

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

⁽²⁾Included in market risk benefit gain (loss) on the Consolidated Statements of Comprehensive Income (Loss).

The following summarizes changes in unrealized gains (losses) included in OCI, net of tax, related to financial instruments carried at fair value classified within Level 3 that we still held (in millions):



	For the Three						For the Nine
	Months Ended						Months Ended
	September 30,						September 30,
	2023			2022			2023			2022
Fixed maturity AFS securities:
Corporate bonds	$	(19	)	$	(519	)	$	(21	)	$	(1,532	)
State and municipal bonds		2			-			3			-
Foreign government bonds		-			(2	)		-			(7	)
RMBS		(1	)		-			(1	)		-
ABS		(5	)		(39	)		(4	)		(101	)
Hybrid and redeemable preferred
securities		-			(38	)		(2	)		(26	)
Mortgage loans on real estate		(3	)		(4	)		1			(10	)
Total, net	$	(26	)	$	(602	)	$	(24	)	$	(1,676	)

‎

The following provides the components of the transfers into and out of Level 3 (in millions) as reported above:



	For the Three								For the Three
	Months Ended								Months Ended
	September 30, 2023								September 30, 2022
	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	$	36	$	(79	)	$	(43	)	$	37	$	(53	)	$	(16	)
RMBS		12		(5	)		7			-		-			-
ABS		-		(113	)		(113	)		15		(162	)		(147	)
Hybrid and redeemable preferred
securities		-		(13	)		(13	)		-		-			-
Trading securities		6		-			6			4		(1	)		3
Derivative investments		-		-			-			-		(1	)		(1	)
Total, net	$	54	$	(210	)	$	(156	)	$	56	$	(217	)	$	(161	)



	For the Nine								For the Nine
	Months Ended								Months Ended
	September 30, 2023								September 30, 2022
	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	$	195	$	(198	)	$	(3	)	$	265	$	(167	)	$	98
RMBS		12		(5	)		7			-		(15	)		(15	)
CMBS		4		-			4			-		(17	)		(17	)
ABS		2		(346	)		(344	)		16		(273	)		(257	)
Hybrid and redeemable preferred
securities		16		(13	)		3			-		-			-
Trading securities		6		-			6			4		(5	)		(1	)
Derivative investments		31		-			31			-		(15	)		(15	)
Total, net	$	266	$	(562	)	$	(296	)	$	285	$	(492	)	$	(207	)

Transfers into and out of Level 3 are generally the result of observable market information on financial instruments no longer being available or becoming available to our pricing vendors. For the three and nine months ended September 30, 2023 and 2022, transfers in and out of Level 3 were attributable primarily to the financial instruments’ observable market information no longer being available or becoming available.
‎

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of September 30, 2023:



											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	$	189		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	(0.1)	%	-	3.7	%	2.0	%
State and municipal
bonds		33		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	0.8	%	-	1.9	%	1.8	%
ABS		13		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.7	%	-	1.7	%	1.7	%
Hybrid and redeemable
preferred securities		7		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.3	%	-	1.5	%	1.4	%
Equity securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	4.5	%	-	4.5	%	4.5	%

MRB assets		4,108
Other assets – ceded MRBs		2		Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.74	%	-	2.56	%	2.15	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	29	%	13.65	%
Other assets – indexed
annuity ceded embedded
derivatives		586		Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(7,163	)	Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾

MRB liabilities		(1,385	)
Other liabilities – ceded
MRBs		(305	)	Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.74	%	-	2.56	%	2.15	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	29	%	13.65	%

The following summarizes the fair value (in millions), valuation techniques and significant unobservable inputs of the Level 3 fair value measurements as of December 31, 2022:



											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	$	204		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	(0.2)	%	-	4.2	%	2.1	%
State and municipal
bonds		35		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.2	%	-	2.4	%	2.3	%
ABS		15		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.4	%	-	1.4	%	1.4	%
Hybrid and redeemable
preferred securities		3		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	1.5	%	-	1.5	%	1.5	%
Equity securities		4		Discounted cash flow	Liquidity/duration adjustment ⁽²⁾	4.5	%	-	4.5	%	4.5	%

MRB assets		2,807
Other assets – ceded MRBs		12		Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals ⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.35	%	-	2.41	%	1.73	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.47	%

Other assets – indexed
annuity ceded embedded
derivatives		525		Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
Liabilities
Policyholder account
balances – indexed annuity
contracts embedded
derivatives	$	(4,845	)	Discounted cash flow	Lapse ⁽³⁾	0	%	-	9	%	⁽¹⁰⁾
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾

MRB liabilities		(2,078	)
Other liabilities – ceded
MRBs		(205	)	Discounted cash flow	Lapse ⁽³⁾	1	%	-	30	%	⁽¹⁰⁾
					Utilization of GLB withdrawals ⁽⁴⁾	85	%	-	100	%	94	%
					Claims utilization factor ⁽⁵⁾	60	%	-	100	%	⁽¹⁰⁾
					Premiums utilization factor ⁽⁵⁾	80	%	-	115	%	⁽¹⁰⁾
					Non-performance risk ⁽⁶⁾	0.35	%	-	2.41	%	1.73	%
					Mortality ⁽⁷⁾				⁽⁹⁾		⁽¹⁰⁾
					Volatility ⁽⁸⁾	1	%	-	28	%	14.47	%

⁽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 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 lapses during the surrender charge period.

⁽⁴⁾The utilization of GLB withdrawals input represents the estimated percentage of policyholders that utilize the GLB withdrawal riders.

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

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

⁽⁷⁾The mortality 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. 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 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, utilization factors or mortality.

From the table above, we have excluded Level 3 fair value measurements obtained from independent, third-party pricing sources. We do not develop the significant inputs used to measure the fair value of these assets and liabilities, and the information regarding the significant inputs is not readily available to us. Independent broker-quoted fair values are non-binding quotes developed by market makers or broker-dealers obtained from third-party sources recognized as market participants. The fair value of a broker-quoted asset or liability is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant as we do not adjust broker quotes when used as the fair value measurement for an asset or liability. Significant increases or decreases in any of the quotes received from a third-party broker-dealer may result in a significantly higher or lower fair value measurement.

Changes in any of the significant inputs presented in the table above would have resulted in a significant change in the fair value measurement of the asset or liability as follows:

Investments – An increase in the liquidity/duration adjustment input would have resulted in a decrease in the fair value measurement.

Indexed annuity contracts embedded derivatives – For direct embedded derivatives, an increase in the lapse or mortality inputs would have resulted in a decrease in the fair value measurement.

MRBs – Assuming our MRBs are in a liability position: an increase in our lapse, non-performance risk or mortality inputs would have resulted in a decrease in the fair value measurement except for policies with GDB riders only, an increase in mortality inputs would have resulted in an increase in the fair value measurement.