Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as of December 31, 2021:


	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	510		$	181		$	—		$	691
U.S. Government agencies and authorities	—			20			—			20
State, municipalities and political subdivisions	—			803			—			803
U.S. corporate public securities	—			8,264			5			8,269
U.S. corporate private securities	—			2,560			1,379			3,939
Foreign corporate public securities and foreign governments(1)	—			2,591			—			2,591
Foreign corporate private securities (1)	—			2,431			272			2,703
Residential mortgage-backed securities	—			3,130			34			3,164
Commercial mortgage-backed securities	—			2,881			—			2,881
Other asset-backed securities	—			1,318			33			1,351
Total fixed maturities, including securities pledged	510			24,179			1,723			26,412

Equity securities	27			—			114			141
Derivatives:
Interest rate contracts	—			135			—			135
Foreign exchange contracts	—			14			—			14
Equity contracts	—			—			—			—
Credit contracts	—			—			—			—

Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,244			—			—			1,244
Assets held in separate accounts	91,474			5,174			316			96,964
Total assets	$	93,255		$	29,502		$	2,153		$	124,910
Percentage of Level to total	74		%	24		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	9		$	9
Stabilizer and MCGs	—			—			20			20
Other derivatives:
Interest rate contracts	—			129			—			129
Foreign exchange contracts	—			15			—			15
Equity contracts	—			—			—			—
Credit contracts	—			—			—			—

Total liabilities	$	—		$	144		$	29		$	173

(1) Primarily U.S. dollar denominated.

The following table presents the Company's hierarchy for its assets and liabilities measured at fair value on a recurring basis as

of December 31, 2020:


	Level 1			Level 2			Level 3			Total
Assets:
Fixed maturities, including securities pledged:
U.S. Treasuries	$	548		$	173		$	—		$	721
U.S. Government agencies and authorities	—			19			—			19
State, municipalities and political subdivisions	—			814			—			814
U.S. corporate public securities	—			9,099			57			9,156
U.S. corporate private securities	—			3,093			1,286			4,379
Foreign corporate public securities and foreign governments(1)	—			2,951			—			2,951
Foreign corporate private securities (1)	—			3,008			295			3,303
Residential mortgage-backed securities	—			4,204			33			4,237
Commercial mortgage-backed securities	—			2,893			—			2,893
Other asset-backed securities	—			1,483			37			1,520
Total fixed maturities, including securities pledged	548			27,737			1,708			29,993
Equity securities	17			—			99			116
Derivatives:
Interest rate contracts	7			130			—			137
Foreign exchange contracts	—			3			—			3
Equity contracts	—			5			—			5


Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	610			16			—			626
Assets held in separate accounts	81,096			6,001			222			87,319
Total assets	$	82,278		$	33,892		$	2,029		$	118,199
Percentage of Level to total	69		%	29		%	2		%	100		%
Liabilities:
Derivatives:
Guaranteed benefit derivatives:
FIA	$	—		$	—		$	10		$	10
Stabilizer and MCGs	—			—			53			53
Other derivatives:
Interest rate contracts	—			171			—			171
Foreign exchange contracts	—			39			—			39
Equity contracts	—			5			—			5
Credit contracts	—			1			—			1

Total liabilities	$	—		$	216		$	63		$	279

(1) Primarily U.S. dollar denominated.

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

The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated:


	Year Ended December 31, 2021
	Fair Value as of January 1		Total Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of December 31		Change in Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:

U.S. Corporate public securities	$	57	$	—	$	—	$	5	$	—	$	—	$	(3)	$	—	$	(54)	$	5	$	—	$	—
U.S. Corporate private securities	1,286		13		(46)		201		—		(103)		(161)		283		(94)		1,379		—		(33)


Foreign corporate private securities(1)	295		(31)		22		38		—		(22)		(30)		—		—		272		3		19
Residential mortgage-backed securities	33		(12)		—		21		—		(7)		—		1		(2)		34		(12)		—

Other asset-backed securities	37		—		(2)		14		—		—		(34)		18		—		33		—		(1)
Total fixed maturities, including securities pledged	1,708		(30)		(26)		279		—		(132)		(228)		302		(150)		1,723		(9)		(15)
Fixed maturities, trading, at fair value	—		—		—		33		—		(33)		—		—		—		—		—		—
Equity securities, at fair value	99		7		—		75		—		(30)		(37)		—		—		114		—		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(53)		33		—		—		(1)		—		1		—		—		(20)		—		—
FIA(2)	(10)		2		—		—		(2)		—		1		—		—		(9)		—		—

Assets held in separate accounts(4)	222		1		—		225		—		(13)		—		—		(119)		316		—		—
(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Consolidated Statements of Operations.

(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net gains (losses) in the Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Condensed Consolidated Statements of Comprehensive Income
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

The following table summarizes the change in fair value of the Company's Level 3 assets and liabilities and transfers in and out of Level 3 for the period indicated:


	Year Ended December 31, 2020
	Fair Value as of January 1		Total Realized/Unrealized Gains (Losses) Included in:				Purchases		Issuances		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3		Fair Value as of December 31		Change in Unrealized Gains (Losses) Included in Earnings(3)		Change in Unrealized Gains (Losses) Included in OCI(3)
			Net Income		OCI
Fixed maturities, including securities pledged:


U.S. Corporate public securities	$	47	$	—	$	4	$	—	$	—	$	(10)	$	(11)	$	27	$	—	$	57	$	—	$	4
U.S. Corporate private securities	1,002		—		33		255		—		(9)		(89)		294		(200)		1,286		—		33

Foreign corporate private securities(1)	190		(9)		(21)		190		—		(11)		(4)		4		(44)		295		2		(21)
Residential mortgage-backed securities	16		(7)		—		32		—		—		—		—		(8)		33		(7)		—

Other asset-backed securities	48		—		—		4		—		—		(15)		—		—		37		—		—
Total fixed maturities, including securities pledged	1,303		(16)		16		481		—		(30)		(119)		325		(252)		1,708		(5)		16
Equity securities, at fair value	63		2		—		35		—		—		(1)		—		—		99		2		—
Derivatives:
Guaranteed benefit derivatives:
Stabilizer and MCGs(2)	(22)		(29)		—		—		(2)		—		—		—		—		(53)		—		—
FIA(2)	(11)		2		—		—		(2)		—		1		—		—		(10)		—		—

Assets held in separate accounts(4)	115		—		—		161		—		(2)		—		3		(55)		222		—		—

(1) Primarily U.S. dollar denominated.
(2) All gains and losses on Level 3 liabilities are classified as realized gains (losses) for the purpose of this disclosure because it is impracticable to track realized and unrealized gains (losses) separately on a contract-by-contract basis. These amounts are included in Other net gains (losses) in the Consolidated Statements of Operations.

(3) For financial instruments still held as of December 31, amounts are included in Net investment income and Total net gains (losses) in the Consolidated Statements of Operations or Unrealized gains (losses) on securities in the Consolidated Statements of Comprehensive Income.
(4) The investment income and realized gains (losses) and change in unrealized gains (losses) included in net income (loss) for separate account assets are offset by an equal amount for separate account liabilities, which results in a net zero impact on Net income (loss) for the Company.

Fair Value, by Balance Sheet Grouping

The carrying values and estimated fair values of the Company's financial instruments as of the dates indicated:


	December 31, 2021				December 31, 2020
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturities, including securities pledged	$	26,412	$	26,412	$	29,993	$	29,993
Equity securities	141		141		116		116
Mortgage loans on real estate	4,233		4,495		4,694		5,013

Policy loans	171		171		187		187

Cash and cash equivalents, short-term investments and short-term investments under securities loan agreements	1,244		1,244		626		626
Deposit assets(2)	1,407		1,425		—		—
Derivatives	149		149		145		145

Short-term loan to affiliate	130		130		653		653
Other investments	143		143		43		43
Assets held in separate accounts	96,964		96,964		87,319		87,319
Liabilities:
Investment contract liabilities:
Funding agreements without fixed maturities and deferred annuities(1)	28,128		35,256		28,169		36,741
Funding agreements with fixed maturities	925		925		795		796
Supplementary contracts, immediate annuities and other	257		267		288		345

Derivatives:
Guaranteed benefit derivatives:
FIA	9		9		10		10
Stabilizer and MCGs	20		20		53		53
Other derivatives	144		144		216		216
Short-term debt(3)	19		19		8		8
Long-term debt(3)	2		2		3		3

(1) Certain amounts included in Funding agreements without fixed maturities and deferred annuities are also reflected within the Guaranteed benefit derivatives section of the table above.

(2) Included in Other Assets on the Consolidated Balance Sheets.

(3) Included in Other Liabilities on the Consolidated Balance Sheets.